Download this document in .pdf format
BRIEFLY:
IMA and the Governor's Climate Control Task Force report podcast
Join IMA Vice President Mark Denzler as he discusses potential "green" legislation with Dave Kolaz, the newest member of the IMA team. Dave is an environmental consultant bringing nearly three decades of experience to the new position. The upcoming release of the Governor's Climate Control Task Force report and what the expected recommendations could mean for manufacturers is the topic. (approximately six minutes) Go to
http://gaagcall.mypodcast.com/index.html.
Dave Kolaz brings environmental expertise to IMA
The Illinois Manufacturers' Association has created a new Manufacturers' Environmental Group (MEG) to address ongoing efforts in the legislative and regulatory arena. To help navigate complex environmental issues at the Capitol and assist members in addressing specific issues, the IMA has retained the services of Dave Kolaz, an environmental expert. He will coordinate efforts to ensure that businesses remain competitive while operating in an environmentally-friendly manner. Through the new Manufacturers' Environmental Group, the IMA will continue to be the leading voice on environmental issues for manufacturers at the State Capitol. If you have inquiries about environmental issues, please feel free to contact IMA Vice President Mark Denzler at 217-522-1240 ext. 3008, email
mdenzler@ima-net.org or contact Dave Kolaz directly at 217-971-3357, email
dkolaz@ima-net.org.
Deadline approaches for manufacturers to take advantage of innovative energy management solutions
By Peter Kelly-Detwiler, Constellation NewEnergy
With the passage of last summer's Illinois Power Agency Act, the stage is set for Illinois to restructure its energy market. A significant component of the Act is the creation of competitive customer classes which will be required to work directly with competitive energy suppliers to meet future electricity needs. This is great news for Illinois manufacturers. No longer anchored to regulated electricity prices, the state's manufacturers can begin taking advantage of the range of products and services that competitive energy suppliers deliver.
A second important component of the new regulations is the requirement that Illinois utilities ComEd and Ameren oversee the design, development and filing of a demand response program with the Illinois Commerce Commission and begin implementing the program in 2009. This too is good news, as a comprehensive demand response program will help reduce stress on the grid and postpone the need to build additional generation.
Demand response creates a "virtual" peaking plant which can be called upon to deliver load to the grid and bring it back into balance during times of peak demand. In this way, the ISO (independent system operator) harnesses the energy conservation efforts of its customer base rather than bringing older gas, oil or coal plants online to meet demand. At the individual facility level, these conservation efforts often reflect dimming lights, raising the set point on thermostats, or changing production schedules. The ISO is willing to compensate customers who help with this balancing act.
For commercial and industrial customers located in the PJM power pool, which includes eastern Illinois and Chicago, one such demand response opportunity is already here. The demand for energy continues to outpace supply in PJM, particularly on the hottest or coldest days of the year when energy use skyrockets, resulting in both a strained grid and a spike in wholesale energy prices. At these times, PJM looks to businesses and organizations to shut down or reduce their energy usage for a specific period of time to bring more energy online quickly and where it is most needed, helping to prevent blackouts in the process.
Those companies which demonstrate an ability to curtail at least 100 kilowatts of electricity can sign up to participate in the PJM-directed demand response program through a competitive energy supplier such as Constellation NewEnergy. For smaller manufacturers or facilities that cannot solely meet the 100 kilowatt minimum requirement, it is possible to aggregate load reductions across multiple locations.
Now is the time to get started. To avoid missing out on this opportunity, please contact Constellation NewEnergy by February 18, 2008. Enrolling is free and getting started requires only that a facility be equipped with an interval meter capable of reading consumption in hourly increments and communicating with the ISO. Once on board, a load response expert can help assess a participant's power needs and design a comprehensive program to help protect critical operations during a curtailment event.
For manufacturers seeking a real-time return on their energy investments, enrolling in this year's PJM program is a smart business decision. The payback can be measured in immediate savings. In exchange for enrolling load into the program, a participating manufacturer begins earning compensation in the form of recurring monthly capacity payments simply for committing capacity to the program. In addition, participants receive an energy payment for curtailing load during an actual event. This payment reflects either the market price or a minimum price per megawatt-hour of the electricity curtailed during the event.
Although one response to the PJM's directive to curtail energy load is to fire up the back-up generators, there are increasingly more sophisticated and environmentally sound ways to limit energy consumption. This is true for companies that have invested, or plan to invest, in automated systems or intelligent building designs which make shedding load with short notice possible. Furthermore, participating in a demand response program represents a significant return on these upfront expenditures. In fact, Illinois manufacturers, in partnership with a competitive energy supplier, may be able to use the demand response paradigm to evaluate and measure electricity usage and load throughout the entire production process. This information can be used to develop a comprehensive energy management program that is responsive to price signals throughout the year; positioning facility managers and energy teams to react to changes in the energy marketplace.
Finally, coupling demand response with other energy efficiency programs has proven to be an effective way to leverage a company's energy investments for the maximum benefits. The payments earned from participating in this year's PJM-directed demand response program can be directed toward investments in additional energy efficiency and conservation efforts. Manufacturers who successfully leverage this new energy paradigm to work in partnership with a competitive energy supplier have the potential to reap meaningful savings. In this respect, the initial commitment to enroll load in the 2008 PJM demand response program represents only the first step to participating more fully in the evolving energy market. The timing couldn't be better to become acquainted with demand response, but time is running out to get started this year.
Peter Kelly-Detwiler is senior vice president of energy technology services for Constellation NewEnergy. He can be reached at
peter.detwiler@constellation.com.
Contact Constellation NewEnergy . . .
To enroll in a demand response program before February 18, 2008, contact Constellation NewEnergy
(http://www.newenergy.com) at 866-237-7693 or via email at loadresponse@constellation.com.
Grants to increase export sales of Illinois food products
Illinois food companies are encouraged to take advantage of the availability of federal matching funds to help promote their products in foreign markets.
The Branded Program effectively doubles international marketing budgets by reimbursing participants for up to half of their promotional expenses, including the cost of foreign trade shows, international travel, advertising, product demonstrations, point-of-sale materials and package and label modifications to meet foreign import requirements.
Participants must fit the U.S. Small Business Administration's definition of a "small company" and be incorporated in the U.S. In addition, at least half of their products must be made with domestic ingredients. Agriculture cooperatives and export agents that work on behalf of U.S. food companies may also be eligible.
Questions about the Branded Program can be directed to IDOA Marketing Representative Kim Hamilton at 217-782-5809. Additional information about the program is available online at
http://www.brandedprogram.org.
Confidence declines among manufacturing workers
Confidence among manufacturing workers declined for the third consecutive month in January, as the sector's Hudson Employment IndexSM dropped 2.2 points to 77.4. Financial concerns helped drive the decline. In contrast, the Index for manufacturing workers was more than 11 points stronger last January, when it registered 88.9. The composite Index, which is based on responses from approximately 9,000 workers across all occupations, held steady at 89.0.
The Hudson Employment Index for manufacturing workers showed that there was a seven-point decrease to 27 percent among employees who said their financial situation was improving.
At the same time, 53 percent of workers said that their finances were getting worse, the most to make this statement since September of 2005. This compares to 48 percent in December.
Sixty-eight percent of the work force was happy with their jobs in January, up from sixty-four percent in December. Fewer workers forecasted layoffs in January (20 percent) than in December (25 percent).
The unadjusted Hudson Employment Index reading for manufacturing workers this month was 78.7.
Visit http://www.hudson-index.com for additional information on the Hudson Employment Index and
http://www.hudson-index.com/manufacturing
for manufacturing-specific information.
Source: Hudson Employment IndexSM
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.
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.
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.
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
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
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 14, 2008 11:00 a.m.
RSM McGladrey presents a webinar . . .
Forging new partnerships: how to thrive in today's global value chain
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.
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
IMA-MIT Event: Lean Manufacturing: Quick Start
February 25, 2008
Decatur Public Library,
130 N. Franklin St., AE Staley Rm., Decatur
or
February 26, 2008
DePaul University,
150 W. Warrenville Rd., Naperville
Designed to help participants quickly initiate team oriented on-going lean activities, this workshop includes instruction on Lean terms and definitions, waste identification and analysis, team organization and choosing Lean tools for waste free processes.
Thursday, February 28, 2008 8:30-11:30 am
IMA'S first "On the Road" forum of 2008 . . .
IMA HR Networking Forum & Seminar — FREE TO IMA MEMBERS
Aurora Metals, LLC, 1995 Greenfield Ave Montgomery
8:30-9:30 am: Seminar 9:30-10:15 am: Tour 10:15-11:30 am: Roundtable
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
for additional seminar offerings.
March 7, 2008
IMA-MIT Event: Effective Presentation Skills
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn to create and articulate a clear and concise message, respond to questions effectively. Let us provide you with the skills and tools needed to deliver a winning presentation. Due to video taping each participant, registration is limited to 12. Register early to ensure availability.
Download this document in .pdf format
Other Executive Memos available online.
Remember, you must have the Adobe Acrobat
Reader software in order to view .pdf documents. Acrobat Reader
can be downloaded
for free from the Adobe Web site.
