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BRIEFLY:

IMA member Alton Steel, Inc. featured on "Dirty Jobs" — Discovery Channel
First it was ASI's Grand Opening in October, 2003 featuring the Oak Ridge Boys in concert; who indicated that it was the first time they had played at a steel mill. As they enter their fifth full year of operations, ASI is proud to announce that they are being featured on the television show "Dirty Jobs," on the Discovery Channel, starring Mike Rowe and Alton Steel's own Mike Shain.

The show was filmed in ASI's Electric Furnace Melt Shop in Alton, Illinois, and aired on the Discovery Channel on Tuesday, January 15, 2008.

Business.gov unveils state and local features
Business.gov, the official U.S. government business link, has launched new features that make it easier for small business owners to find essential information they need to run their operations, including forms, licenses, permits and regulatory information from federal, state and local governments.

In addition to federal resources, business owners now have access to over 9,000 state, territory, county, and city government websites providing information on starting and managing a business while complying with regulations from all levels of government.
The new feature is called "mashup" — a unique service created by combining content from separate web applications.

To check out the new features, go to http://www.business.gov.

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Illinois' 2008 Legislative Session: Out with the old, in with the old
Paraphrasing a frequently used axiom, the title of this article appropriately describes the likely challenges and issues that manufacturing companies will face this year in the State Capitol. After a year-long battle and with the ink not yet dry on the final issue (mass transit bailout) of the 2007 legislative session, lawmakers are poised to return to Springfield for the new session in February to address many key issues.

State Budget: With a state debt of $1.7 billion and a slowing economy, the Governor and lawmakers will struggle to enact a balanced budget that meets the needs of the state. Despite warnings from the IMA and State Comptroller about the economic crisis and out-of-control state spending, the Governor continues to propose and implement new programs (health care) without legislative approval or any way to pay for them. Members of the legislature face the burden of trying to restrain the Governor's uncontrolled spending.

Year of the Environment: Recommendations from the Governor's Climate Change Task Force will be front-and-center this year, mirroring debate at the national level. Many of the final recommendations, including new CAFÉ standards, air emissions standards, and a cap-and-trade program were passed by the pro-environmental Task Force over the objections of business community representatives.

Health Care: Cook County Judge James Epstein and the court system will play a key role in determining the heath care debate as he considers a lawsuit filed by IMA President Gregory W. Baise and others that seeks to stop the Governor's massive health care expansion from taking effect. The lawsuit, currently pending in court, challenges the Governor's ability to impose new programs and spend taxpayer dollars without legislative approval. If the court rules in favor of Mr. Baise and the plaintiffs, the Governor will be forced into seeking legislative authorization for his program which included the gross receipts tax last year.

Taxes: Some administration officials have indicated that the Governor may seek to impose a new "net assets" tax on employers and eliminate corporate tax incentives to raise revenue for the state budget. Both concepts are strongly opposed by the IMA. Such proposals will lead to additional job loss and harm businesses facing an already struggling economy.

Political Infighting: Despite the fact that Democrats control the Governor's office, General Assembly, and every constitutional office, they remain fractured. Early signs in 2008 indicate that Governor Rod Blagojevich, Speaker Michael J. Madigan, and Senate President Emil Jones will continue their infighting, making it more difficult to get things done at the Capitol.

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Mass transit resolved?
Just when it appeared over - that the train had left the station on the mass transit bailout - Governor Blagojevich slammed on the brakes by amendatorily vetoing the legislation (HB 656) in an attempt to score political points with senior citizens. Under the Governor's veto, all senior citizens in the state – regardless of income or location – will get to ride mass transit at no cost. The Governor further indicated that he plans to expand free service to all disabled individuals in his proposed FY09 state budget.

According to the Governor, this "move" was planned well before Thanksgiving but he chose not to come forward and offer the idea to legislators during debate. As a result, lawmakers must return to Springfield this week to vote either to uphold or override the Governor's veto. If the veto is upheld, the bill becomes law and the "doomsday scenario" on January 20 is avoided. However, if legislators override the veto, or don't have the votes to approve it, then the deal falls apart and the mass transit system faces fare hikes, massive layoffs, and route reductions in less than a week.

The final agreement passed by the General Assembly provides a nearly $400 million revenue stream for mass transit funded by a 0.25 percent hike in the sales tax in Cook and the five collar counties (DuPage, Kane, Lake, McHenry, and Will) in addition to an expanded real estate transfer tax in Chicago ($3 per $1,000 of EAV). Further, the five collar counties will see an additional 0.25 percent sales tax hike to pay for public safety or local public transportation projects.

State lawmakers return to Springfield on January 17 to debate the Governor's proposed change.

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"E-Verify" program in limbo
State won't enforce law prohibiting employers from following federal law.
Last month, lawyers for Illinois Attorney General Lisa Madigan agreed to not enforce a new state law prohibiting employers from following federal law and using the new E-Verify program to determine whether potential workers can legally work in the U.S.

The Homeland Security Department sued Illinois in September after Governor Rod Blagojevich signed legislation that would have penalized employers for following federal law. U.S. Federal Judge Jeanne Scott stayed the law suit until February 15, 2008, with the understanding that Illinois would not enforce its statute.

Employers are expected to follow federal law until the court rules sometime later this year. Meanwhile the IMA will follow and report developments as they occur.

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Congressional outlook 2008: Elections will drive agenda
As the 1110th Congress reassembles for its 2008 session, some Capitol Hill observers believe a strong push on environmental legislation will be made, particularly in the area of emissions reductions. That's the observation of two veteran reporters for The Hill, a leading newspaper covering Congress.

Peter Fenn and Frank Donatelli say the time might be ripe for Congress and the Bush Administration to pass some sort of environmental legislation in the wake of the U.S.'s agreement on global emission reductions with other nations late last year. They say the President is looking to expand his legacy from the 2003 tax cuts and pushing for the environment might just be the ticket.

As always, Congress is expected to spend the bulk of its time grappling with the federal budget for the fiscal year that begins October 1, 2008, a mere month before the presidential elections on November 4th . While major new programs are not expected to be proposed this year, according to Penn and Donatelli, there will still be significant fights as Republicans and Democrats try to craft a budget that will bode well at the polls.

The nation's economy is also expected to receive a good deal of attention as President Bush has said he will propose an economic stimulus package to combat a sluggish economy. According to an article in The Hill, there appears to be wide spread differences among business groups over what shape a stimulus package should take. Some organizations believe cutting capital gains will help, while the National Association of Manufacturers says it will encourage extending and expanding the R&D tax credit as a top priority. However, others say the R&D credit could cost upwards of $100 billion and force tax increases in other areas, which concerns all business groups.

Meanwhile, pending in the House Ways and Means Committee is the whopping $1 trillion tax proposal offered by Rep. Charles Rangel (D-NY) last October. While the proposal does reduce the U.S. corporate tax rate from 35 percent to 30.5 percent, other adjustments, particularly those that will follow the expiration of the Bush tax cuts in 2011, will harm the business community.

Finally, the Washington Post reported on January 15th that the National Surface Transportation Policy and Revenue Study Commission is recommending that federal gasoline taxes be raised by up to 40 cents per gallon over five years to fix aging bridges and roads and reduce traffic deaths. Expenditures for surface transportation projects are expected to exceed $225 billion each year for the next 50 years.

The federal gasoline tax was last raised in 1993 and recent efforts to increase it have been met by opposition from President Bush. The current proposal would become effective in 2009, after President Bush leaves office.

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Raw material and energy costs are biggest threats to private manufacturing businesses
Research from Grant Thornton International shows that the increasing costs of raw materials and energy are contributing to cost pressures for privately held manufacturers. Globally, 61 percent of surveyed businesses reported being most concerned about raw materials costs and 45 percent reported energy costs as a major concern.

Turkish manufacturing businesses are the most concerned about energy costs in the next 12 months with 82 percent of respondents expecting these to have a major impact on cost pressures. Despite being a major oil producing country, 61 percent of manufacturers in Mexico cite energy costs as a concern. Australia and Brazil, also energy producing countries, are least concerned about energy costs, with 20 percent and 23 percent expecting them to have a major impact.

Alex MacBeath, global head of Privately Held Business services says: "The management of energy consumption is key to tackling global warming — reduction in costs is the result. When we asked manufacturers what they were doing, almost two thirds reported taking measures to reduce their energy consumption. They reported installing energy saving lighting, motion detectors and insulation. Over half of responding manufacturing businesses are investing in energy saving machinery."

Malaysia and India head the list having responded forcefully to the need to compete in the international manufacturing market. It is interesting to note that while mainland China has established itself as a highly competitive manufacturing base, a significant proportion of mainland Chinese manufacturers regard globalization as more of a threat.

Robert Quant, partner at Grant Thornton Australia says "Rapid growth in China is proving both a blessing and curse for business in Australian and New Zealand.

Increased demand has lead to higher production in the Australian resources sector, fuelling the mining boom and strong economic growth. However, Australian manufacturers are having difficulties competing with China's ability to produce low-cost goods and are being constrained by shortages in skilled labor and the lowest unemployment levels for decades."

Grant Thornton International is one of the world's leading organizations of independently owned and managed accounting and consulting firms.

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NAM: Manufacturers' risks and rewards accelerate in global supply chain
External partnerships are key to success
With U.S. manufacturing output at an all-time high, U.S. manufacturing production at an all-time high and a more competitive dollar making U.S. products increasingly in demand abroad, a new study by the National Association of Manufacturers (NAM) shows that small and medium manufacturers must now seek new partners at every stage of the global supply chain — from research and development through manufacturing, packaging, shipment, service and support — to capitalize on new growth opportunities.

"Small and medium manufacturers account for 40 percent of U.S. production value, and their successes and failures can have a substantial impact on America's economy," said NAM President and CEO John Engler.

"Manufacturers must collaborate closely with new domestic and overseas partners to survive and thrive in the global supply chain. In today's economy, small and medium manufacturers are more than just suppliers. They are helping to create the new technologies, products, services and business models that are vital for success, both here and abroad. By connecting with outside resources — customers, government, academia — small and medium manufacturers can swiftly expand their core competencies and gain economies of scale," he said.

The report, "Forging New Partnerships: How to Thrive in Today's Global Value Chain," offers practical insights and strategies for small and medium manufacturers to optimize opportunities and minimize risks in today's global value chain in four key areas: harnessing innovation; building a skilled workforce; exporting and overseas growth; and financing. It is cosponsored by the NAM; its research and education arm, The Manufacturing Institute; and RSM McGladrey, Inc.

"Traditional supply chains are morphing under the pressure of a globalizing economy," commented Thomas G. Murphy, Executive Vice President of RSM McGladrey, Inc. "Manufacturers adhering to old supply-chain rules are putting their businesses in jeopardy by not adapting to new rules. Large companies are handing off much of their innovation to small and medium companies that in the past merely built to specifications. The new global manufacturing supply chain is a whole new frontier. This increased responsibility for firms comes with increased risk that is intensified by the unprecedented movement of goods around the world."

"Forward-looking manufacturers are taking advantage of economic changes at home and abroad by becoming more critical players in the global supply chain," added Tony Raimondo, Chairman, Behlen Manufacturing Co. in Columbus, NE. "Forging external partnerships was the key to our success. While most of our business is U.S.-based, my company entered into a joint venture for manufacturing structural steel in China to be closer to our customers there. We put in the technology and management, they put in the cash. Going global made us a stronger company, as we had to address weaknesses." The international effort has pushed this agricultural equipment manufacturer from a $32 million company in 1984 to more than $200 million in sales today, of which up to 10 percent is exported annually to more than 70 countries over the years. Behlen Manufacturing Co. has 1,100 U.S.-based employees.

"This report will help manufacturers position their companies in larger, more expansive value chains and succeed in today's global marketplace," Engler concluded.

The numerous best practices cited in the report are drawn from interviews and a roundtable discussion with NAM members, results of an annual survey by RSM McGladrey and insights from the U.S. Department of Commerce's Manufacturing Extension Partnership (MEP). The report is available at http://www.nam.org/supplychain.

The Manufacturing Institute is the research, education and workforce arm of the NAM. For more information, visit http://www.nam.org/institute.

RSM McGladrey is a leading professional services firm providing accounting, tax and business consulting. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms.

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RSM McGladrey presents a webinar . . .
Forging new partnerships: how to thrive in today's global value chain
February 14, 2008 * 11:00 a.m.
Register at http://registration.intercall.com/view/121-37550
There is no cost to attend and all webcast attendees receive a complimentary copy of the report Forging New Partnerships: How to Thrive in Today's Global Value Chain.

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Small businesses to get energy efficiency help
Small businesses, which make up over 99 percent of businesses domestically and are responsible for half the country's economic output, are poised to take advantage of the same energy efficiency projects that Fortune 500 companies have adopted in recent years.
Under a pilot program included in the energy bill signed into law in December, 2007, the Small Business Administration (SBA) will offer low-cost loans for small to medium enterprises (SMEs) that want to improve their energy and fuel use.

The two-year pilot will lower the fees on 7(a) business loans for efficiency projects and fund grants for Small Business Development Centers that will offer free energy audits and efficiency trainings for small companies. The directive also requires the SBA to encourage SMEs to offer telecommuting as an option to employees, and give priority to small companies researching energy efficiency and renewable energy technologies.

Senators John Kerry (D-MA) and Olympia Snowe(R-ME) recently sent an open letter to EPA chief Stephen L. Johnson urging his agency to increase funding and promotion of its Energy Star for Small Business program. With an increase of $2 million per year, the Senators said, the program could significantly raise awareness about the Energy Star for Small Business program.

According to a recent survey of small businesses, only one-third of SMEs had implemented any energy efficiency programs, and just 60 percent of small business owners had even heard of the Energy Star for Small Business program.
Source: www.GreenBiz.com

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IMA General Counsel and Vedder Price partner Jim Spizzo will start the day with a presentation addressing Workplace Discipline and Discharge with practical ideas and suggestions on how to avoid unwanted litigation. Forum hosts Dave Bumbar and Joanne Perry will then take participants on a tour of the Aurora Metals facility. The event will end with a roundtable discussion of current HR issues and their impact on participants. Attendees will also have the opportunity to provide feedback to facilitator Donna Rogers, IMA's HR Director, regarding HR related IMA member services.

During the seminar, attorney Jim Spizzo will participate in a practical, hands-on discussion of how best to manage your in-plant disciplinary issues in light of laws affecting both union and non-union employers. Be prepared to discuss your real-life or hypothetical problems with Mr. Spizzo.

The IMA HR Networking Forum started in 2005 and is designed to facilitate building relationships with other HR professionals in the manufacturing field. This year's added feature is the plant tour and seminar. IMA manufacturing members and associate members are invited and encouraged to attend this FREE event.

If interested, inquire about hosting an event at your company.

For more information or to register, contact Donna Rogers, 800-875-4462 x3007
or email drogers@ima-net.org. — Visit the IMA Calendar of Events at
http://www.ima-net.org/calendar.cfm

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for additional seminar offerings.

Join the IMA Energy Program . . .
IMA members looking to compare their electric supply options can go to http://www.newenergy.com/control and receive a free, no obligation rate quote.

OfficeMax Advantage can save you 30% or more on your office supplies . . .
IMA members and OfficeMax — a first-class partnership
Go to: http://www.ima-net.org/membership/programs.cfm to download your OfficeMax Retail Connect Card and start saving today!

Annual Holiday Survey Report . . . now ONLINE!
http://www.ima-net.org/08IMAHolidayRpt.pdf
The IMA's Annual Holiday Report highlights employers' plans on select holidays throughout the year. This year's survey was conducted from August 10-31, 2007 for the 2008 calendar year. Four questions were asked ranging from total number of paid days off to a breakdown of full or half day paid holidays, and on which days the member company is actually closed throughout the year. Nearly 450 IMA members responded.
For the results, visit http://www.ima-net.org/08IMAHolidayRpt.pdf.

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The IMA's new strategic partnership with Heritage-Crystal Clean (HCC) caters to your company's environmental needs. Big savings are available to IMA members. To learn more, contact HCC's Jim Skelton at jim.skelton@crystal-clean.com, call 847-783-5110 or visit: www.crystal-clean.com.

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IMA's Recycling Expansion & Modernization (REM) grant ...
The Illinois Department of Commerce and Economic Opportunities wants to help Illinois companies deal with the issue of reducing waste through the Recycling Expansion and Modernization (REM) Grant Program. Through this grant, the Illinois Manufacturers' Association can offer your company a solid-waste assessment at 25 percent of the actual cost; the grant pays the remaining 75 percent. Join the growing number of companies that are on the path to becoming green. Find out how easy it is to participate in the IMA's REM grant program. It's an investment in your future — one that will reap perpetual rewards for your business and your community.

For more information, contact Judy Parker, IMA Director of Training, 217-522-1240, ext. 3036, or email jparker@ima-net.org.

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Order the IMA's 2007-2008 Benefits Report at
https://www.ima-net.org/ben_report_order.cfm

Order the IMA's 2006 Annual Compensation Report at
http://www.ima-net.org/reportorder/login.cfm
For more information, go to one of the links above, or contact Janie Stanley at 800-875-4462, ext. 3020, or email: jstanley@ima-net.org

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DATES OF NOTE:
More information/events may be found at http://www.ima-net.org/calendar.cfm and http://www.ima-net.org/MIT/open.cfm

January 25, 2008
IMA-MIT Event: Change is Inevitable: Success is Optional
DePaul University's O'Hare Campus,
3166 River Rd., Des Plaines
Develop techniques and strategies to lessen the stress of change and facilitate maximum productivity during change events. Participants will complete a Personal Development Plan for successfully transferring key program teachings back to their workplace.

January 29, 2008
IMA-MIT Event: Behavior-based Interviewing
DePaul University, 150 W. Warrenville Rd., Naperville
Learn how effective behavior-based interviewing can be to get the right person on the job! Learn to develop an interview guide that targets the correct skills, knowledge and attitude needed for each position. Learn to take the "we" out of your candidate's response and turn it into an "I" with results that will truly help you assess their fitness for the job. For all Human Resources professionals and anyone involved in HR-related activities. $125 for IMA members; $150 for non-members

February 8, 2008
IMA-MIT Event: Essential Leadership Skills for Newly Promoted & Frontline Supervisors
DePaul University's O'Hare Campus,
3166 River Rd., Des Plaines
This fast-paced, invigorating one-day workshop will provide you with the skills to build better working relationships, develop the perspective of a leader, and establish realistic performance goals for employees.

February 19, 2008
IMA-MIT Event: Conducting Effective Performance Appraisals
DePaul University, 150 W. Warrenville Rd., Naperville
This session will provide tools and information to assist you in successfully managing employees' performance.

February 22, 2008
IMA-MIT Event: World Class
Customer Service Skills
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Did you know that (on average) a dissatisfied customer will tell 10 to 16 people about their bad service experience, and 91 percent of them will not return to do business with the company that displeased them? World Class Customer Service Skills is based upon acquiring proactive customer service skills rather than reactive. Attendees will learn to predict the customer's position, and proactively provide the desired results in advance.

For IMA-MIT events, contact Judy Parker, 800-875-4462, Ext. 3036, or email jparker@ima-net.org

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