March 15, 2012

SOLAR INDUSTRY REPORTS STRONG 2011
Today in Manufacturing

The U.S. installed 1,855 megawatts of solar panels during the year, up from 887 in 2010, even as prices plummeted … continue

U.S. TRADE DEFICIT REACHES $124.1B
Today in Manufacturing

A slight drop in exports and a rise in imports widened the broadest measure of the U.S. trade deficit and pushed the gap to its widest point in three years …  continue

IW 2012 SALARY SURVEY RESULTS

Quick Manufacturing News Pay increases return in 2012. Data also reveals a remedy for the manufacturing talent shortage -- and it's within your own four walls. Click to continue

NOT GETTING ANY BETTER FOR SHIPPERS ANY TIME SOON

Quick Manufacturing News It's not getting any easier out there in the freight markets for shippers, based on the latest Shippers Condition Index report from FTR Associates. The index for January 2012 dropped 0.2 points to a reading of -4.8, reflecting a slow acceleration of freight growth that will continue to drive the index gradually lower over the remainder of the year. Click to continue

EMPLOYERS ARE INVESTING MORE HEAVILY IN WELLNESS

Quick Manufacturing News Employers need to carefully balance their desire to control costs and make smart investments that pay off with the need to provide meaningful incentives for desired behavior. For example, 76% of companies do not know how much of an impact their wellness programs are having on employee health or their healthcare costs, although 57% state that offering incentives leads to higher than expected success rates, according to an annual survey conducted by Fidelity Investments and the National Business Group on Health. Click to continue

LET ME COUNT THE WAYS CHINA IS STEALING OUR SECRETS
Today in Manufacturing

Inventing new technologies is as American as jazz music and westerns, but others are committed to acquiring our technologies any way they can...   continue


Q&A: THE FOOD SAFETY DISCONNECT
Today in Manufacturing

Underwriters Laboratories recently released a study that compares consumer and food manufacturer perceptions on issues such as food safety...  continue

STUDY: YOUNG PEOPLE NOT SO 'GREEN' AFTER ALL
Today in Manufacturing

An analysis of 40 years of surveys has found that so-called 'Millenials' are less interested in conserving resources than their elders were when they were young …  continue


FEWER SEEK UNEMPLOYMENT AID, TYING A 4-YEAR LOW
Today in Manufacturing

Applications for unemployment aid dropped 14,000 to a seasonally adjusted 351,000, which matches a four-year low reached last month …  continue

MANUFACTURERS PREDICT HIGHER SALES, INVESTMENT AND EMPLOYMENT

Quick Manufacturing News NAM/IndustryWeek Q1 Survey show that despite growing optimism, majority concerned about the business environment and rising energy and raw material costs. Click to continue

NATIONAL ASSOCIATION OF MANUFACTURERS Ex-Im Bank Supports Small Business and Jobs. The Export-Import Bank (Ex-Im) is a vital tool to help grow U.S. exports and boost American jobs. 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. On Thursday, March 15, Sens. Maria Cantwell (D-WA), Tim Johnson (D-SD), Lindsey Graham (R-SC), Richard Shelby (R-AL) and others offered an amendment that would reauthorize Ex-Im. The NAM will send a key vote letter in support of the amendment. 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—the engines of our economy—impacting jobs, competiveness and the manufacturing supply chain. On Wednesday, March 14, the Washington Times published an op-ed authored by NAM President and CEO Jay Timmons and BTE Technologies President Chuck Wetherington. Timmons and Wetherington highlighted just how important the Ex-Im Bank is to these small and medium-sized businesses. The bank allows small companies like BTE to level the playing field against competitors overseas and to export to new markets throughout the world.   Today, BTE exports to China, Russia, Japan, Korea, most of the European Union and other countries—almost 40 in total. With the assistance of Ex-Im Bank, BTE is negotiating a deal to export to Saudi Arabia in the near future—a relationship that would contribute upward of 10 percent of the company’s total product revenues,” wrote Timmons and Wetherington. BTE is not alone. Many other small businesses have sought the assistance of Ex-Im and reaped the benefits of expanded market access. In today’s global economy, seeking out opportunities abroad is indispensable. On Tuesday, March 13, NAM Vice President for International Economic Affairs Frank Vargo made the case for reauthorizing Ex-Im before members of the Republican Study Committee (RSC). He outlined the bank’s critical role in manufacturers’ ability to export—which is vital given that 95 percent of the world’s consumers live outside the United States. If we are to continue to create jobs and reach the goal of doubling exports, Ex-Im must play a role to help level the playing field for manufacturers in the United States. More information about Ex-Im Bank reauthorization is available at www.nam.org/exim.

Senate Passes Transportation Bill, House to Take Next Steps. The Senate passed its surface transportation authorization, Moving Ahead Progress for the 21st Century (MAP-21), on Wednesday, March 14, by a 74-22 vote. Unfortunately, senators missed an opportunity to gain ground on key manufacturing issues such as Keystone XL, Boiler MACT and expanded domestic energy production during a series of amendment votes last week. The $109 billion bipartisan MAP-21 (S.1813) finances federal highway and transit programs at fiscal year 2012 levels for the remainder of the year and into the next fiscal year. The legislation makes reforms to eliminate bureaucratic inefficiencies and infuses $1 billion to boost the Department of Transportation’s innovative transportation financing program. While the legislation is fully financed, longer-term solvency issues with the Highway Trust Fund remain to be resolved. Attention now turns to the House, where lawmakers return from recess next week. It is likely that House leadership will bring the American Energy and Infrastructure Jobs Act (H.R. 7) to the floor in the coming weeks. Another surface transportation extension is likely because the current authorization expires on March 31.

Senate Nixes Transportation Amendments That Boost Manufacturers’ Competitiveness. Last week, the Senate voted on a series of amendments to the two-year transportation reauthorization bill (S. 1813), including measures with a critical impact on access to affordable energy and the Environmental Protection Agency’s (EPA) aggressive regulatory agenda. The NAM supported and key voted three amendments of particular importance to manufacturers. They all required 60 votes for passage. Sen. Susan Collins (R-ME) offered a Boiler MACT amendment that would provide the EPA with the time necessary to redraft the Boiler MACT rules and extend the compliance time frame from three years to five years. The amendment was rejected with a final vote of 52-46. Sen. John Hoeven’s (R-ND) amendment to approve the Keystone XL pipeline permit and allow construction of the pipeline over the Canadian/U.S. border lost on a 56-42 vote. Sen. David Vitter’s (R-LA) amendment to expand drilling in the Outer Continental Shelf (OCS) was rejected on a 46-52 vote. Manufacturers are disappointed the Senate did not take a stand for job growth, economic expansion and U.S. access to affordable energy. Manufacturers use one-third of our nation’s energy, so affordable energy is a necessity to maintaining and creating jobs. The NAM also key-voted in opposition to an amendment offered by Sen. Ron Wyden (D-OR) that would have banned the export of any crude oil, or petroleum products derived by crude oil, transported by the Keystone XL pipeline. Manufacturers’ strong opposition to needless government interference in business operations helped strike down the amendment by a vote of 33-65. Manufacturers Support Utility MACT Repeal. On December 16, 2011, the Environmental Protection Agency (EPA) finalized the Utility MACT rule, one of the agency’s most costly regulations for power plants. Utility MACT requires that manufacturers install pollution-control technology in coal-fueled plants to reduce mercury and other hazardous air pollutant (HAP) emissions. It will cost utilities an estimated $10 billion annually by 2016 and will have an unequivocal impact on energy prices in the United States, resulting in higher operating costs for manufacturers across our country. By finalizing this burdensome rule on the utility sector, the EPA is impeding manufacturers’ ability to grow and create much-needed jobs. The House of Representatives already passed H.R. 2401 to delay implementation of the Utility MACT rule, and Sen. James Inhofe (R-OK) has introduced a Congressional Review Act Resolution of Disapproval (S.J. Res. 37), which would repeal the entire rule. The Senate is expected to take up the resolution this summer, and the NAM is strongly urging manufacturers to contact Congress in support of the resolution.

White House to Press WTO on China’s Rare-Earth Minerals Exports. This week, the White House announced that it would press the World Trade Organization (WTO) to open talks with China over its export policies of rare-earth minerals. The NAM applauds this initiative, and particularly the fact that it is being done in conjunction with the European Union and Japan, thus increasing the pressure on China. The U.S. recently won a WTO case against China’s export restrictions on nine other industrial inputs. China is now the world’s largest exporter, and needs to adhere to its global WTO obligations. Manufacturers are facing some supply chain shortages of rare-earth minerals, and they have also experienced significant cost increases over the last 18 months. The NAM will continue to work with the Administration and Congress to ensure an adequate supply of these important raw materials for manufacturers.

Senate Passes Pension Funding Stabilization. The NAM has been working with an informal coalition of business associations to educate Congress about the impact of low interest rates on companies’ pension plan obligations and to obtain adequate funding relief. The Senate-passed surface transportation authorization (S. 1813) includes a pension funding stabilization provision sought by manufacturers. This provision is similar to a proposal originally advanced by the business community during the fall. It provides a mechanism to “smooth” pension funding obligations on companies that sponsor pension plans—which vary annually depending on interest rates. Unlike the original proposal, due to the constraints of the highway bill, the pension stabilization provision included in the Senate-passed bill is limited in duration. The provision raises revenue for the federal government and was included in S. 1813 as a way to help pay for the bill. Attention now turns to the House of Representatives. The NAM will continue to advocate for House support of efforts to provide pension funding stabilization for companies.