Welcome to the IMA Executive News & Views Blog. The blog format reflects our efforts to provide IMA members with timely, relevant and thought provoking information in a form that is accessible for easy reference. IMA’s Executive News & Views Blog will be updated on a regular basis. Weekly news update emails will be sent out to notify subscribers of new information posted on the blog. IMA members are welcome to submit material for the blog, or request specific information. Simply email Editor Stefany Henson at firstname.lastname@example.org with your information or request. Editorial submissions are subject to review.
Join the North Chicago Chamber of Commerce on Wednesday, November 12th, along with Illinois Chamber of Commerce President Todd Maisch, Kalamazoo Promise Executive Director Von Washington and Illinois Manufacturer’s Association VP & COO Mark Denzler. The program will take place on November 12th from 11:30 am–1:30 pm at the Greenbelt Cultural Center, 1215 Greenbay Road, North Chicago. RSVP by November 5th. For more information and to register, visit http://www.northchicagochamber.org/2014/10/08/2014-annual-meeting-luncheon.
U.S. Industrial Manufacturers Forecast Solid Revenue Growth in Year Ahead, According to PwC’s Q3 Manufacturing Barometer
International outlook dims; Global sentiment at lowest in eight quarters — Concerns regarding legislative/regulatory and taxation pressures on the rise
Optimism regarding projected company revenue growth increased among U.S. industrial manufacturers during the third quarter of 2014, according to the Q3 2014 Manufacturing Barometer, released today by PwC US. Survey respondents forecast an average growth rate of 5.6 percent over the next 12 months, up from 5.2 percent in the second quarter and 4.2 percent a year ago. The positive revenue outlook ran counter to a notable softening in sentiment regarding the future direction of the U.S. and global economies overall, coupled with increased concerns about the potential impacts of legislative/regulatory and tax policies.
From IMA member Plante Moran …
The corporate structuring transaction known as an “inversion” has been front and center recently regarding U.S. corporate tax policy. Corporate inversions typically involve the acquisition of a U.S. corporation by a foreign corporation, during which the U.S. corporation’s shareholders acquire a majority interest in the “acquiring” foreign corporation.
The transaction benefits corporate groups that earn a significant amount of their earnings outside the United States. The benefit arises from avoiding U.S. corporate tax on earnings generated abroad. In addition to having the highest corporate income tax rate in the world, the United States is also one of the few countries that taxes earnings that have already been taxed in a foreign jurisdiction. Virtually all developed countries, including the U.K. and Canada, allow for a tax exemption on earnings that have already been subject to tax abroad.
Survey of Manufacturing and Purchasing Executives Reveals Strong Confidence in Economy for Remainder of 2014 among Midsized Industrial U.S. Manufacturers
13th survey of buying group member companies indicates positive outlook as revenues are projected to continue rising and half of all companies are planning new hires
Prime Advantage, the leading buying consortium for midsized manufacturers, announced the findings of its thirteenth edition of the Purchasing and Manufacturing Survey, revealing financial projections and top concerns of more than 700 U.S. industrial manufacturing companies. The results show continued optimism about revenues and employment, despite concerns about rising costs and a lack of qualified workers.
Several recent indicators have shown marked improvements in the U.S. economy and for manufacturing activity, particularly when compared to earlier in the year. These range from the NAM/IndustryWeek Survey of Manufacturers to increased levels of demand and output. Last week, for instance, the Institute for Supply Management (ISM) reported that the pace of production (up from 64.5 to 64.6) was marginally higher in September, with the index exceeding 60 — indicating strong growth — for four consecutive months. Likewise, the new orders index has measured 60 or higher for three straight months, even though it eased somewhat in September (down from 66.7 to 60.0). That was an encouraging sign, and it was consistent with a relatively upbeat outlook as noted by the National Association for Business Economics (NABE).
Thursday, October 30, 2014 — University Club of Chicago
The law relating to concealed carry in Illinois changed on January 1. What are your rights and responsibilities as an individual? An employer? A governmental entity? A property owner? What are the insurance coverage considerations you should take into account to protect yourself? How can attorneys best protect their clients?
Join with the members of the Illinois Association of Defense Trial Counsel, Illinois Insurance Association, Illinois Retail Merchants Association and the Illinois Manufacturers’ Association on October 30, 2014 as we delve into the current issues surrounding concealed carry.
U.S. Manufacturers Won’t Reach Economic Potential Without Public–Private Partnership and Commitment to Infrastructure Investment
A new study commissioned by the National Association of Manufacturers (NAM) and conducted by Inforum at the University of Maryland offers a view into the economic benefits the U.S. economy would reap with a more concerted effort to address the nation’s infrastructure needs. In total, the study finds that a targeted and long-term increase in public infrastructure investments from all public and private sources over the next 15 years will:
• Increase jobs by almost 1.3 million at the onset of an initial boost;
• Grow real GDP 1.3 percent by 2020 and 2.9 percent by 2030;
• Create a progressively more productive economy, which, due to cumulative effects through time, will benefit from a $3 return on investment for every $1 invested in infrastructure by 2030; and
• Provide Americans an increase in take-home pay after taxes—a $1,300 net gain per household by 2020 and $4,400 per household by 2030 (measured in 2009 dollars).
The Conference Board Consumer Confidence Index®, which had increased in August, declined in September. The Index now stands at 86.0 (1985=100), down from 93.4 in August. The Present Situation Index decreased to 89.4 from 93.9, while the Expectations Index dropped to 83.7 from 93.1 in August. The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary results was September 18.
Congress Misses Opportunity to Give U.S. Exporters Certainty
Washington, D.C., September 18, 2014 – Following House and Senate passage of a continuing resolution that temporarily reauthorizes the Export-Import (Ex-Im) Bank, National Association of Manufacturers (NAM) President and CEO Jay Timmons and IMA President and CEO Gregory W. Baise issued the following statements: