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BRIEFLY:
Don't count manufacturing out
The nation's manufacturing sector has absorbed hard blows in the past decade, shedding millions of jobs in the face of rapidly rising imports. Yet manufacturing still packs a significant punch in the national economy about 10 percent of total employment and over 12 percent of GDP and even greater shares in the economies of many states. And manufacturing provided one of the few bright spots in the otherwise bleak fourth-quarter GDP report.
In a recent Economic Policy Institute Snapshot, economist Robert Scott shows why, with housing on the ropes for the foreseeable future, reinvesting in manufacturing could be an important strategy for helping keep a faltering economy on its feet. View the Snapshot at
www.epi.org/content.cfm/webfeatures_snapshots.
Source: Economic Policy Institute
Coming in March . . . the IMA's 2008 Benefits and Compensation Survey
Your participation is essential for quality results. The survey will be conducted online. Online, you have the flexibility to return to your unfinished survey if you don't complete it in one log on. Questions? Contact Donna Rogers, SPHR, HR Director at 800-875-4462, ext. 3007, email:
drogers@ima-net.org or Janie Stanley at 800-875-4462, ext. 3020, email:
jstanley@ima-net.org.
IMA members have free access to the Report when they participate.
Global Environmental Management Initiative launches new climate change web tool
The Global Environmental Management Initiative (GEMI) recently launched a new version of its web tool,
http://www.gemi.org/BusinessandClimate. "GEMI is very pleased to announce the release of its new Climate Change web tool, a Website that enhances opportunities for best practice sharing among businesses on one of the most important environmental issues that is being addressed by business," said GEMI's Chair, Bob Accarino, Director of Environmental Affairs, Abbott. "The vision of the GEMI membership combined with significant support from Five Winds International, Trinity Consultants and TrainUp led to the development of this outstanding tool," Accarino continued.
"We have updated and enhanced GEMI's previous work that addressed climate related challenges and opportunities," said GEMI's Business and Climate Work Group Co-Chair, Audrey Bamberger, Engineer, Strategic Environmental Initiatives, Anheuser-Busch Inc. She added, "This new tool has a unique focus of addressing climate change issues with an emphasis on business planning and strategy development. We believe this provides compelling, quantifiable value to companies."
"Our goal was to provide information and guidance for businesses in all stages of the strategic planning lifecycle for climate change," said GEMI's Business and Climate Work Group Co-Chair, Maurice Bechard, Director, Global Environment Health and Safety, JohnsonDiversey, Inc. "The site is organized into four planning stages Assess Risks, Formulate Strategy, Implement Strategy and Review. Advice and resources are provided from businesses that have already completed one or more of the planning stages," he added.
"GEMI's BusinessandClimate web tool is based on company experience in addressing the many facets of the climate change issue," according to Mr. Carl Wirdak, Director, Environmental Affairs, Occidental Petroleum and GEMI's Business and Climate Work Group Co-Chair. "This tool, like all GEMI tools, is available on GEMI's Website free of charge because this is an important part of GEMI's mission of Business Helping Business'," Wirdak concluded.
The Global Environmental Management Initiative (GEMI) is a non-profit organization of 37 leading companies dedicated to fostering global environmental, health and safety excellence and corporate citizenship.
GEMI participants include IMA member companies 3M; Abbott; Anheuser-Busch Companies Inc., Cargill, Inc., Ecolab, Inc., Eli Lilly and Company, Johnson & Johnson, Kraft Foods, Inc., Motorola, Inc. and Pfizer, Inc.
Additional information about GEMI can be found at http://www.gemi.org.
Tax amnesty program for Illinois businesses
An amnesty program began Friday February 1 for 25,000 to 30,000 businesses that have fallen behind on state franchise taxes and licensing fees. The Illinois Secretary of State's office administers the program, which raises about $200 million a year in revenue.
The amnesty is through March 17 for businesses that are delinquent on annual corporate filing fees and franchise taxes. Amnesty includes taxes, fees, interest and penalties, as well as immunity from civil or criminal prosecution by the Secretary of State's office. After March 17, the interest rate on delinquent payments doubles from one to two percent.
While amnesty programs have been offered on state income taxes, this is the first time amnesty has been offered for the corporate filing fees and franchise taxes. Companies incorporated in Illinois must report each year, including name, top officers, a registered agent and address, and capitalization costs, including stock issues.
For more information, contact the Illinois Secretary of State's Office at 800-252-8980.
Illinois trade expands through Q3 2007
The most recent trade information from the U.S. Commerce Department shows Illinois trade with other countries is significantly ahead of trade just one year ago. Through the end of September, Illinois manufacturers had shipped $36 billion in goods to countries around the world, compared with $30.8 billion in 2006. Projecting Q4 based on the average of the first three quarters would mean Illinois will export more than $48 billion in 2007, up from $42 billion in 2006.
According to recent news articles, international trade could be a silver lining for manufacturers as many economists see the U.S. headed for a recession. As demand for products decline and wholesale inventories climb, the ability to expand sales around the world is expected to help the U.S. manufacturing sector blunt the effects of an economic downturn here at home.
Data released by the Commerce Department shows that Illinois' trade increased with all its top ten partners. The largest dollar increase came from trade with the Netherlands whose Q3 trade increased from $937.2 million in 2006 to $1.742 billion. Trade with our largest partner, Canada increased nearly half a billion during the same period, and based on averages, should eclipse last years record $12.3 billion.
The Commerce Department publishes trade information in various forms on its Website. Visit TradeStats Express at:
http://tse.export.gov.
Bipartisan legislation is needed to prevent "arbitrary" taxation
The National Association of Manufacturers expressed support for bipartisan legislation to prevent arbitrary state taxation of interstate commerce the Business Activity Tax Simplification Act introduced recently by Rep. Rick Boucher (D-VA) and Rep. Bob Goodlatte (R-VA).
"With manufacturers facing strong headwinds during the current economic downturn, the last thing companies need is to be hit by random and unfair state taxes," said Monica McGuire, the NAM's senior policy director for taxation.
"By establishing a bright-line physical presence test of when a state can tax an out-of-state company, the legislation prevents arbitrary taxation without jeopardizing the ability of states to legitimately tax businesses with in-state operations," she said.
Business activity taxes include state income, franchise and gross receipts taxes assessed on out-of-state companies engaged in interstate commerce.
"The current climate of uncertainty about the imposition of business activity taxes inhibits business expansion and innovation," McGuire said. "Companies of all sizes will benefit from the certainty of a uniform rule on state taxation."
The Senate companion bill (S. 1726), introduced in 2007 by Sen. Charles Schumer (D-NY) and Sen. Mike Crapo (R-ID), was referred to the Senate Finance Committee.
Federal Trade Commission to sponsor privacy workshop
Most companies keep sensitive personal information in their files names, Social Security numbers, credit card numbers, or other account data that identifies customers or employees. However, if sensitive data falls into the wrong hands, it can lead to fraud or identity theft. Given the cost of a security breach losing your customers' trust and perhaps even defending yourself against a lawsuit safeguarding personal information is just plain good business.
The Federal Trade Commission, the International Association of Privacy Professionals, and Northwestern University School of Law will co-host a public workshop on April 15, 2008 on how businesses can secure the personal information of consumers and employees.
The workshop, "Protecting Personal Information: Best Practices for Business," will feature business people, attorneys, government officials, privacy officers, and other experts who will provide practical guidance for businesses of all sizes on data security, best practices for developing an appropriate data security program, and how to respond to security problems, including data breaches. There is no cost to attend.
The workshop will be held in the Thorne Auditorium of the Arthur Rubloff Building on the Chicago campus of the Northwestern University School of Law, starting at 9 am. Onsite registration begins at 8 am; information about advance registration is on the workshop web page at www.ftc.gov/bcp/workshops/infosecurity.
As part of its business education program, the FTC has information to help businesses forge their own data security plans, including an online tutorial, a booklet, and a series of articles suitable for reprinting in print or electronic newsletters. All are available at
www.ftc.gov/infosecurity.
If you have any questions, please email infosecurity@ftc.gov.
Productivity and costs remain sluggish during fourth quarter 2007
The Bureau of Labor Statistics of the U.S. Department of Labor reported preliminary productivity data as measured by output per hour of all persons for the fourth quarter and for the full year 2007.
In the fourth quarter of 2007, productivity increased 0.6 percent in the business sector, with output increasing 0.2 percent and hours decreasing 0.5 percent. In the nonfarm business sector, productivity rose 1.8 percent as output grew 0.4 percent and hours fell 1.5 percent. When the annual averages for 2007 were compared with annual averages for 2006, productivity rose 1.6 percent in the business and nonfarm business sectors slightly more than the 1.0 percent gain in both sectors from 2005 to 2006.
In the manufacturing sector, increases in productivity were:
|
Fourth
quarter |
Annual averages
2006-2007 |
Manufacturing sector |
2.5 |
2.9 |
Durable goods manufacturing |
4.6 |
4.3 |
Nondurable goods manufacturing |
-0.9 |
1.1 |
Manufacturing productivity grew at a 2.5 percent annual rate in the fourth quarter, as output fell but hours fell faster. On an annual average basis, output per hour in the manufacturing sector posted a 2.9 percent increase in 2007. Output and hours in manufacturing, which includes about 12 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the aggregate business and nonfarm business sectors.
Blagojevich expected to propose Carbon Tax
The 2008 spring session of the Illinois General Assembly begins in earnest this month, and many statehouse observers are bracing for another round of tax proposals by Governor Rod Blagojevich to fund spending for new state programs.
Last year, Governor Blagojevich appointed a special commission to look into the question and effects of climate change. The commission's report is expected to be released this month with recommendations that could include imposing a carbon tax on emissions paid by employers. The tax would be assessed on any employer whose manufacturing process includes burning coal, natural gas, oil or any other substance that produces CO2 emissions. According to experts, a tax of $10 per ton would raise up to $1.5 billion annually.
In addition, the Governor has been rumored to be considering a multi-billion tax on business net assets to replace his ill-fated $7 billion gross receipts tax which he proposed last year to fund his universal health care proposal. Following a long and protracted fight led by the IMA and other business groups, the Governor shelved that proposal late last year. However it appears he will try to advance this new proposal by saying it is more reasonable and would not tax start-up business or those experiencing financial difficulty. However, the Governor continues to have a blind eye to the reality that his actions undermine Illinois' competitiveness and hinder the state's economic growth potential.
Finally, Governor Blagojevich is again proposing to strip business of critical tax incentives that were implemented to encourage job growth and economic development. Among the credits the Governor has targeted for elimination are the Single Sales Factor, the Manufacturers' Purchase Credit and the Research and Development Tax Credit provisions important to the state's manufacturing sector.
The IMA will continue its fight against the Governor's jobs-killing tax proposals and wasteful spending in Springfield, and IMA members can stay up to date with our new podcast service. Join the IMA's Vice President for Government Affairs and Membership, Mark Denzler, as he shares up to date legislative information every week. It's informative and better yet, it's focused on providing the best information for manufacturers. Its news you can use. Visit our Web Site at
http://www.ima-net.org.
AMA survey: Political discussions in the workplace not always welcome
With a tightly-contested and historic presidential election less than a year away, political discussions are expected to heat up at water coolers in offices around the country. But according to a new survey from the American Management Association (AMA) on politics and the workplace, employees are decidedly mixed about sharing political views with their colleagues and bosses.
More than one-third (35 percent) of the business people surveyed said they are uncomfortable discussing their political views with colleagues, while 39 percent said they are comfortable, and 25 percent of respondents said they were neutral about sharing their political opinions. Forty percent, however, are comfortable talking about politics with their supervisors, 38 percent are uncomfortable and 22 percent are neutral.
While political chatter at work is expected during a presidential election year, the AMA survey shows that most employees are not campaigning in the office for their favorites. Ninety-two percent of respondents said that no one from their company either management or labor has recommended voting for a particular candidate because it would benefit the organization. This reveals a slight decrease from AMA's 2004 survey on the same subject, in which 13 percent of respondents confirmed that someone from their company recommended a particular candidate. In the current study, only seven percent actually confirmed someone recommended voting for a particular candidate.
This lack of activism held true in spite of lenient policies about politics in the office. More than half (57 percent) of senior executives surveyed said that no written policy exists prohibiting the distribution or posting of material endorsing a political party or candidate.
Companies as a whole also are staying away from endorsing political favorites or parties. More than three-fourths (79 percent) of senior executives said that their company does not contribute to a particular political party. However, they are not spending a lot of energy communicating this point, as almost two-thirds (65 percent) of employees cannot say whether their company contributes to a particular political party.
Conducted in association with NFI Research, the results are based on responses from 701 senior executives, managers and employees from organizations within a variety of industries. The complete AMA 2008 Political Discussions in the Workplace Survey is available on the American Management Association Website at
http://www.amanet.org/research.
American Management Association is a world leader in professional development, advancing the skills of individuals to drive business success.
Manufacturers' shipments, inventories and orders, December 2007
New orders for manufactured goods in December, up six of the last seven months, increased $10.1 billion or 2.3 percent to $441.6 billion, the U.S. Census Bureau reported on February 4. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 1.7 percent November increase. Shipments, down following three consecutive monthly increases, decreased $1.2 billion or 0.3 percent to $427.5 billion. This followed a 1.3 percent November increase. Unfilled orders, up thirty-one of the last thirty-two months, increased $20.0 billion or 2.5 percent to $808.7 billion. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 1.2 percent November increase. The unfilled orders-to-shipments ratio was 5.43, up from 5.31 in November. Inventories, up ten of the last eleven months, increased $4.0 billion or 0.8 percent to $528.1 billion. The inventories-to-shipments ratio was 1.24, up from 1.22 in November.
ISM Conference, St. Louis, Missouri May 4-7
Award-winning authors, business leaders and industry innovators will inspire and inform
Retired Brigadier General Nick Halley, best-selling author Daniel Pink, strategic purchasing executive Gerd Hofmann and Olympic Gold Medalist Dominique Dawes are the keynote speakers for Institute for Supply Management™'s 93rd Annual International Supply Management Conference and Educational Exhibit. This year's Conference will be held May 4-7, 2008 at the Americas Center in St. Louis.
Visit ISM's Website at http://www.ism.ws for information on the complete Conference experience, including workshops and educational tracks, Exhibit Hall, Economic Outlook, networking opportunities, Pre- and Post-Conference Seminars, Career Center, CPSM Exams and more.
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!̃
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 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.
February 25, 2008
Lean Manufacturing: Quick Start
Decatur Conference Center & Hotel at 4191 U S Highway 36 West, Decatur
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.
February 26, 2008
Lean Manufacturing: Quick Start
DePaul University,
150 W. Warrenville Rd., Naperville
(See course description above)
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
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 twelve.
March 10, 2008
5S and Visual Controls
Decatur Public Library,
130 N. Franklin St., Decatur
This workshop will focus on effective methods of applying 5S and Visual Controls techniques and tools in the manufacturing and office environments. Learn to maximize the benefits of red tag techniques, orderly work environment and visual workplace methodology.
March 11, 2008
5S and Visual Controls
DePaul University,
150 W. Warrenville Rd., Naperville
(See course description above)
For IMA-MIT events, contact Judy Parker, 800-875-4462, Ext. 3036, or email jparker@ima-net.org
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