January 19, 2012

UNEMPLOYMENT CLAIMS AT 352,000, FEWEST SINCE 2008

Today in Manufacturing
Labor Department cautioned that volatility at this time of year is common, but suggested the decline is evidence that the job market is strengthening ... continue

CONSUMER PRICES REMAIN FLAT
Today in Manufacturing
Labor Department says consumer prices were unchanged last month, the latest sign that inflation remains tame ... continue

PIPELINE REJECTION ANGERS MANUFACTURING GROUPS
Quick Manufacturing News
Critics of decision say 20,000 jobs at risk. Click to continue

COST OF JOB-RELATED ILLNESSES EXCEEDS COSTS OF ALL CANCERS, DIABETES AND STROKES
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A new NIOSH-funded study determined that the cost of job-related injuries and illnesses is $250 billion, which is $31 billion more than the cost of all cancers and $76 billion more than the cost of diabetes. The study results beg the question: Is industry and the federal government doing enough to eliminate occupational injuries and illnesses and their associated costs? Click to continue

FED: U.S. MANUFACTURING CLOSED 2011 ON A HIGH NOTE
Quick Manufacturing News
Manufacturing is a bright spot in the Federal Reserve's mostly positive data on U.S. industrial production and capacity utilization for December 2011. However, the outlook for 2012 is muted by the threat of a recession in Europe and a slowdown in China. Click to continue

REPORT: US LOST 28% OF HIGH-TECH MANUFACTURING JOBS
Today in Manufacturing
The National Science Board said that US-based multinational companies created a plethora of R&D jobs in countries like China over the last decade ... continue

NAM CAPITAL BRIEFING 1/19/12
Focus: President Obama Rejects Keystone Pipeline and Thousands of American Jobs
President Obama dealt a major blow to manufacturers, job creation and energy security on Wednesday, January 18, issuing a decision to formally reject the construction of the Keystone XL pipeline.

Before the end of 2011, Congress passed a two-month payroll tax extension that included a provision to force President Obama to make a decision on the Keystone XL pipeline within 60 days. Last week, the NAM and a lengthy list of business groups sent a letter to President Obama urging him to act on the matter.

In a statement, President Obama said his rejection was not based on the pipeline itself but on "the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people."

However, the pipeline has been under review by the federal government since 2008. In fact, the pipeline has been debated, discussed and considered for nearly four years. And regardless of the amount of time needed to consider the pipeline, the jobs argument is clear.

According to TransCanada, which applied for a permit for the pipeline in 2008, the pipeline would create 20,000 jobs immediately—7,000 of which would be specific to manufacturing—and 118,000 jobs indirectly.

These jobs would provide a clear boost to the economy and give more confidence to our nation's employers. "The decision to say no to a project that would create 20,000 manufacturing and construction jobs—with an additional 118,000 indirect jobs—defies logic when the U.S. is suffering from high unemployment and a struggling economy," said NAM President and CEO Jay Timmons. "For America's future, it's always better to choose sound policy over politics. Instead the Administration followed the political winds and rejected a clear way to create jobs."

Timmons also appeared on Fox News following the President's announcement. To watch the video, click here. For more from Timmons, click here.

Manufacturers use one-third of our nation's energy supply, which makes the need for a national energy plan that much more important. Manufacturers need affordable, reliable and secure energy, and the Keystone XL pipeline is the perfect vehicle for that.

TransCanada has also announced that it will reapply for a permit for the pipeline. While the company hoped a new application would be processed in an expedited manner to allow for an in-service date of late 2014, the State Department responded that a new application will trigger a new review process that will not be expedited.

Despite this setback, manufacturers remain committed to advancing the pipeline and will continue to press Congress and the Administration for a green light on this shovel-ready project to create thousands of high-quality American jobs.

OSHA Could Move Forward on Injury and Illness Prevention Programs. Last week, the Occupational Safety and Health Administration (OSHA) released a white paper encouraging businesses to implement Injury and Illness Prevention Programs (I2P2). I2P2 aims to help employers reduce the number and severity of workplace injuries and illnesses. While the white paper does not mandate any program, it does tout the successes of I2P2 programs that have already been implemented in many businesses. There is skepticism, however, that a rule contemplated by OSHA that mandates that every worksite implement an I2P2 program could create a system where any worksite not in perfect compliance would be subject to OSHA citations. OSHA also announced last week that it will convene a Small Business Advocacy Review Panel within the next 60 days to review I2P2. These are strong indications that OSHA is taking steps toward revisiting I2P2 once again, and there will likely be more movement in the coming months. Details: Joe Trauger, (202) 637-3127.

NAM Chair Takes Manufacturing Renaissance to Detroit. In a speech on Thursday, January 12, to the Detroit Economic Club, NAM Chair Mary Andringa praised the strength of the manufacturing industry in bouncing back from the recession and discussed her experiences as president and CEO of Vermeer Corporation, a family-owned business with more than 2,500 employees around the world. "We will not be a healthy country if we don't have good manufacturing jobs," Andringa told the attendees. To achieve that goal, she called for lower corporate taxes and the need for a more highly trained, skilled workforce to serve manufacturing companies. She also highlighted the need to eliminate foreign tariffs and other barriers to sales by U.S. manufacturers abroad. A path to achieving these goals and others is outlined in the NAM's comprehensive blueprint, A Manufacturing Renaissance: Four Goals for Economic Growth. Click here to watch the speech.

NAM President and CEO Thanks Manufacturing Associations for Working Together. On Friday, January 13, NAM President and CEO Jay Timmons delivered a keynote address at the NAM's Council of Manufacturing Associations (CMA) Winter Conference. The CMA comprises more than 240 industry-specific manufacturing trade associations. In his remarks to the association CEOs attending the conference, Timmons stressed the importance of cooperation between manufacturing associations—especially in this critical election year. He also congratulated manufacturing association executives for working together as partners to ensure candidates are promoting manufacturing policy and making a strong manufacturing sector a priority in their plans to strengthen the economy.