March 1, 2012

BARNES AEROSPACE-OGDEN RECOGNIZED BY UTAH LEGISLATURE

Tom Bingham, President, Utah Manufacturers Association

A citation honoring Barnes Aerospace Ogden Plant for receiving the 2011 Shingo Prize Silver Medallion was read in each House of the Utah Legislature this afternoon. The language of the citation follows:

AN OFFICIAL CITATION OF THE UTAH STATE LEGISLATURE HONORING BARNES AEROSPACE, OGDEN DIVISION FOR RECEIVING THE SHINGO SILVER MEDALLION AWARD

Be it hereby made known to all by the Utah State Legislature:

WHEREAS, The Shingo Prize award is globally recognized as the world’s top manufacturing recognition for Operational Excellence; and

WHEREAS, to achieve the Shingo Prize, organizations compete against the most rigorous standards in the world.  The award is given only to those businesses that demonstrate exceptional and sustained business improvement through the application of universally accepted principles of operational excellence while empowering people and transforming organizational culture; and

WHEREAS, this “Nobel Prize” of manufacturing is reward for all employees of the Ogden Division who have worked tirelessly over several years to prepare themselves and the division to achieve this globally recognized accomplishment; and

WHEREAS, Ogden Division’s achievement can serve as a model, not only to other Barnes Group divisions, but for local Utah companies as well, to benchmark against - thus increasing the overall operational excellence of Utah manufacturing.

NOW, THEREFORE, LET IT BE KNOWN that the Utah State Legislature recognizes the rigorous standards set forth by the Shingo Prize and honors the Ogden Division of Barnes Aerospace for demonstrating exceptional business standards and receiving the 2011 Shingo Silver Medallion for Operational Excellence Award.

UMA congratulates Steve Moore and his entire staff at Barnes Aerospace for their outstanding performance in earning this prestigious award for their performance in business improvement.

THIS WEEK IN WASHINGTON National Association of Manufacturers Federal Court Hears NAM’s Landmark Greenhouse Gas Case. Manufacturers took to the courts this week as the U.S. Court of Appeals for the D.C. Circuit considered the Environmental Protection Agency’s (EPA) greenhouse gas (GHG) regulations. The NAM and other business groups presented oral arguments over two days—Tuesday, February 28 and Wednesday, February 29—challenging the EPA’s decision to regulate GHG emissions through the Clean Air Act. The rules, issued in late 2009 and 2010, impose the first permit requirements for GHG emissions from stationary sources such as manufacturing plants and electric utilities. The EPA itself has described its approach as leading to “absurd results.” The NAM Coalition offered a recommendation that would avoid such results, save jobs and prevent adverse consequences for manufacturers while enabling the EPA to address emissions from mobile sources.  They urged the Court to reject the EPA’s interpretation of the Clean Air Act that automatically triggers stationary source permitting requirements for GHGs due merely to the regulation of automobiles. The EPA does not have the authority to regulate greenhouse gases from stationary sources under the Clean Air Act’s permitting program without Congress amending the law. The EPA’s construction of the “Prevention of Significant Deterioration” permitting program, which encompasses large stationary sources such as manufacturing facilities, is not permissible under the Clean Air Act. If the EPA is to continue moving forward with these regulations, it will add a costly burden and uncertainty to businesses of all sizes. “The EPA’s decision to move forward with the regulation of GHGs from stationary sources is one of the most costly, complex and far-reaching regulatory issues facing manufacturers and harms their ability to compete globally,” said NAM President and CEO Jay Timmons in a statement. “In an effort to reverse this harmful course and save desperately needed jobs, we presented the Court with a path forward to uphold the EPA’s role based on congressional intent and protect the vast majority of stationary sources from these onerous regulations.” The EPA’s greenhouse gas regulations will eventually require new burdensome permitting requirements for more than 6 million stationary sources, including 200,000 manufacturing facilities, 37,000 farms and millions of other sources such as universities, schools, hospitals and even American homes—impacting every aspect of our economy. Manufacturers use one-third of our nation’s energy supply, and it is imperative they have access to affordable, secure and reliable energy. A ruling in the case is expected next summer. The key cases are summarized here.

NAM Urges Support for Boiler MACT Relief. Sen. Susan Collins’ (R-ME) Boiler MACT amendment (No. 1660) to the transportation bill (S. 1813) would provide a legislative fix to the extremely flawed Boiler MACT suite of rules. Despite some improvements to the rules, the recently proposed reconsideration would still put over 200,000 jobs at risk and place an undue financial burden on manufacturers. Click here to contact your senators in support of the amendment. The NAM, as part of a coalition with the American Forest & Paper Association and the U.S. Chamber of Commerce, also is running a Politico ad highlighting the importance of the Boiler MACT legislation.

House Subcommittee Repeals IPAB. The House Subcommittee on Health considered and passed the Medicare Decisions Accountability Act of 2011 (H.R. 452) by a vote of 17-5 on Wednesday, February 29. H.R. 452 was introduced by Rep. Joe Pitts (R-PA) last January with the express purpose of repealing the sections of the Patient Protection and Affordable Care that created the Independent Payment Advisory Board (IPAB). The IPAB is a 15-person board with the power to cut Medicare payment rates to doctors and hospitals without congressional approval. This system will create greater cost-shifting to the private sector and slow the adoption of innovative therapies. Broad Medicare reform, not simply payment cuts to the current system, will better address the growing cost of Medicare. A floor vote on the bill is expected in March. The NAM has been supportive of the measure and will continue to urge Congress to repeal the IPAB for its unprecedented authority and the general lack of oversight in place.

EPA To Maintain Current Tailoring Rule Permitting Thresholds. On Monday, February 27, the Environmental Protection Agency (EPA) announced the decision to keep in place the current greenhouse gas (GHG) permitting thresholds for the Prevention of Significant Deterioration (PSD) and Title V Operating Permit programs for stationary sources. Manufacturers were concerned that the EPA would lower the threshold for permits from 100,000 tons per year (tpy) to 50,000 tpy. The EPA’s fact sheet indicates that states had yet to develop the infrastructure necessary to handle an increase in permits from smaller sources. At this point, it is unclear whether the EPA will issue a lower threshold at a later date, but the NAM will continue to monitor developments.Construction of the Keystone Pipeline Is Critical to Manufacturers. On Monday, February 27, TransCanada announced the beginning of construction on a portion of the Keystone XL pipeline from Oklahoma to Texas. TransCanada’s construction project will create some jobs in both construction and manufacturing, but the approval of the full Keystone XL pipeline would create 20,000 direct jobs and 118,000 indirect jobs. In Congress, Sen. John Hoeven (R-ND) introduced an amendment to the transportation bill that would authorize TransCanada to construct and operate the pipeline from Canada through the Midwest to the Gulf. The pipeline remains an important component of our nation’s access to affordable energy, and the NAM supports the approval of the project as quickly as possible for our nation’s energy and economic security.

Congress Turns Attention to Ex-Im Bank and Its Importance to Manufacturers. Last week, six members of the Senate Small Business Committee sent a letter to Senate leadership urging them to move forward in reauthorizing the U.S. Export-Import Bank (Ex-Im). Ex-Im Bank is a vital tool to help grow U.S. exports and increase American jobs. As the official export credit agency of the United States, Ex-Im Bank assists in financing U.S. exports from thousands of American companies. In fact, more than 85 percent of Ex-Im Bank’s transactions are with small and medium-sized manufacturers. Ex-Im Bank’s authorization expired at the end of September 2011, and the Bank is currently operating under a short-term extension that ends on May 31. Manufacturers need a long-term reauthorization and a significant increase in Ex-Im’s lending cap. Click here to contact your representative and urge support for the Securing American Jobs Through Exports Act of 2011 (H.R. 2072). More information about Ex-Im Bank reauthorization is available at www.nam.org/exim. International Trade Enforcement Center Will Battle Trade Barriers. On Tuesday, February 28, President Obama established an Interagency Trade Enforcement Center (ITEC) by executive order. The NAM welcomed this move, as manufacturers suffer from significant barriers to U.S. trade and investment abroad that can add significantly to the cost of exports. Manufacturers are adversely affected by a variety of non-tariff barriers, including standards and conformity assessment issues; import licensing; investment limits; onerous customs procedures; requirements to balance imports with exports; forced technology transfer; subsidies; favored companies or “national champions”; export bans; and other measures to restrict the fruits of American innovation around the world. Some of the barriers are illegal under international trade rules; some are not addressed by rules but are barriers nevertheless. The NAM is hopeful that the ITEC will tackle these barriers and work on achieving fair market access for manufacturers. The NAM and other trade associations have provided suggestions to the Administration in recent months on investor-state dispute settlement in the Trans-Pacific Partnership, European trade relations and trade barriers in Argentina. The NAM also provides a liaison with the Commerce Department for members who face trade barriers but do not know where to turn or do not wish to be identified.

Supreme Court Limits Lawsuits in Railroad Industry. On Wednesday, February 29, the Supreme Court ruled 6 to 3 that asbestos claims under state law are pre-empted by the federal Locomotive Inspection Act, which grants the Secretary of Transportation broad authority to regulate the design, construction and material of every part of a locomotive. The lawsuit tried to assert that design defect and failure-to-warn claims were viable in state courts, but the Court disagreed. The NAM had filed an amicus brief last October warning against expanding tort litigation in the states. The favorable result came because manufacturers and operators of railroads are already pervasively regulated by the federal government, and allowing further regulation through litigation under state law would contravene the system set up by Congress. Federal pre-emption of litigation under state law is an important protection for manufacturers in many industries. See Kurns v. Railroad Friction Products Corp. (S. Ct.). MANUFACTURING GROWS AT SLOWER PACE IN FEBRUARY Today in Manufacturing The Institute for Supply management said its manufacturing index fell last month to 52.4 from 54.1 in January, mostly due to fewer orders...   continue POSITIVE MANUFACTURING DATA RAISES HOPES THAT CHINA IS HEADED FOR A SOFT LANDING Quick Manufacturing News China's economic growth has been slowing, as the eurozone crisis and weakness in the United States erode demand for Chinese exports, and property prices fall as a result of tight restrictions on purchases. Click to continue INDIA MANUFACTURING GROWTH EASES IN FEBRUARY Quick Manufacturing News India's manufacturing sector slowed marginally in February, snapping three straight months of gains. But the pace of growth remains robust, a business survey released on Thursday said. Click to continue CONSUMERS MORE CONFIDENT AS ECONOMY IMPROVES Quick Manufacturing News Consumer confidence in February reached levels not seen in 12 months, as the job market and other key economic indicators continue to improve, the Conference Board reported in its latest Consumer Confidence Index. Click to continue

UNEMPLOYMENT APPLICATIONS DIP TO A 4-YEAR LOW
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CONSUMERS SPEND MORE AS INCOMES RISE
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CHINA MANUFACTURING SEES GAINS IN FEBRUARY
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The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index rose to the highest level since June 2011 …   continue

MALT-O-MEAL COMPANY CHANGES CORPORATE NAME

Malt-O-Meal Company announced the introduction of its new MOM Brands corporate name and identity in a move to better showcase its growing house of brands to retailers and consumers, and to better reflect the company that it is today. With the introduction of the MOM Brands corporate name, the company will reinforce its continued success and growth in the cereal category by focusing on low-cost innovation and its dedication to providing high-quality, great tasting products. "Our new corporate identity is a better fit for the wide range of products that we now offer," said Chris Neugent, MOM Brands chairman and CEO. (Malt-O-Meal Plant Manager in Tremonton, Mark Suchan is a member of the UMA Board of Directors and is Second Vice Chairman of the Executive Committee)

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UTAH LABOR COMMISSION OPENS GRANT APPLICATION

Process to Fund Promotion of Workplace Safety

The Utah Labor Commission is requesting applications for grant projects or initiatives demonstrating a commitment to workplace safety. Proposals may include, but are not limited to, development of workshops and training, implementation of specialized safety programs, increasing effort and resources for existing programs, and collaborative workplace safety training between organizations.

The money that supports the Workplace Safety Account is generated from a 0.25% annual assessment on workers’ compensation premiums. The Utah Labor Commission is charged with the task of using these funds to promote workplace safety, which includes awarding a portion of account funds to selected grant applicants. It is anticipated that over $500,000 will be awarded to select grant recipients, and will be distributed among as many qualifying applicants and in monetary amounts the Labor Commission deems appropriate. Entities eligible to apply for a grant include Utah businesses, community-based organizations, Utah non-profits and local associations and educational institutions.

“The Workplace Safety Committee of the Labor Commission has identified key priorities upon which to focus for the upcoming year. The focus is with industries and occupations that have higher incidences of workplace accidents and fatalities such as construction, manufacturing and highway safety, as well as projects that assist Utah employers in breaking down barriers to safer work environments due to language and cultural barriers”, said Utah Labor Commissioner, Sherrie Hayashi. “This is a great opportunity for an employer or other entity to augment its safety program budget and provide additional means to reduce workplace accidents for its employees.”

The Grant Application and all related details outlining the criteria successful applicants must satisfy, as well as the process the Commission shall use to award the funds, is available online at www.laborcommission.utah.gov or by contacting Elena Bensor, Community Relations/Public Information Officer at (801) 530-6918 or elenabensor@utah.gov.

Grant Applications are due Monday, April 9th, 2012 at 5:00 p.m. The grant period will cover up to a 12 month period beginning July 1, 2012 and ending June 30, 2013.

Contact: Elena Bensor

Community Relations/Public Information Officer

801.530.6918 desk

FED: ECONOMY SHOWS GROWTH IN ALL AREAS
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Data from the latest Beige Book shows that manufacturing output rose in all 12 districts, with auto- and steel-makers reporting strong growth ...   continue

INDUSTRIAL SPACE STILL IN DEMAND FOR 2012

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NEW U.S. AGENCY TO ENFORCE TRADE RULES WITH CHINA Quick Manufacturing News

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2012 FINANCE AGENDA: THE LEAN YEARS CONTINUE

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PENT-UP DEMAND FOR CONSUMER DURABLES, INVESTMENT PROVIDE FOR POSITIVE OUTLOOK

Quick Manufacturing News MAPI projects GDP growth of 2.2% in 2012. Click to continue

DURABLE GOODS ORDERS DROP
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Businesses slashed spending on machinery and equipment in January, pushing orders down by the largest amount in three years …  continue