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BRIEFLY:
Offshore Group sets dates for Annual Manufacturing in Mexico Summit
The Offshore Group has announced that its 14th Annual Manufacturing in Mexico Summit will take place from October 16-19, 2008 at the Camino Real Hotel in Saltillo, Coahuila, Mexico. The event is the largest gathering of maquiladora industry executives in the Mexican Republic, and, over the years, has served to update industry leaders on issues pertinent to their ongoing operations. Additionally, the Summit is a venue at which manufacturers that are contemplating the establishment of Mexican operations may gain knowledge and valuable insight on the topic from practitioners. Information about the 2008 Manufacturing in Mexico Summit can be accessed at The Offshore Group's Website, http://www.offshoregroup.com/summit.asp.
Is your manufacturing operation going "green?"
The IMA plans to collect and share stories of manufacturers' efforts, actions and experiences in their quest to become "green." If your company is involved in such an effort, and you're willing to share your experience, please contact Stefany Henson at 800-875-4462, ext. 3017 or shenson@ima-net.org. By sharing what works and what doesn't, everyone can get involved in efforts to conserve our environmental resources for the benefit of all.
IMA Business Day 2008 * Wednesday * May 7 * Springfield
Lunch: Noon * Reception: 5:30-8:30 pm
Visit http://www.ima-net.org or contact
Kimberly McNamara, 800-482-0462, ext 2109
email kmcnamara@ima-netorg.
From Crain's Chicago Business Opinion column, March 10, 2008 . . .
Four-year college not the only path to rewarding career
By Ronald D. Bullock, Owner, Bison Gear & Engineering, and Chairman, Illinois Manufacturers' Association
Amid all the speculation about a possible recession, a new report by the Urban Institute, a non-partisan Washington think tank, finds that nearly half of America's job openings during the next seven years will require more than a high school education but less than a bachelor's degree.
These "middle-skill" occupations range from entry-level manufacturing to nursing to electrical work, and they all face a serious shortage of workers to replace retiring baby boomers. In manufacturing alone, nearly seven million employees — half the manufacturing workforce — will retire in the next few years.
Unfortunately, there is a long-standing cultural bias in our country to prepare students for a four-year college education. But not every high school graduate wants to go to college, nor does every rewarding career require a four-year degree. Indeed, two-thirds of college students fail to graduate in four to six years, according to the National Center for Educational Statistics.
Instead, the report indicates that the pathway to 45 percent of America's good jobs in the next few years will be a certificate or associate's degree earned at a technical or community college. This is particularly true in manufacturing, which contributes $70 billion to the Illinois economy each year and employs 689,000 people in the state, according to the National Association of Manufacturers.
My company in St. Charles employs more than 240 people who make electric motors for restaurant, medical and packaging equipment. Because the shortage of skilled talent is hurting our ability to meet demand, we collaborated with local leaders and the College of DuPage to develop a manufacturing certification program in applied math, blueprint reading and other "middle skills." At an average national yearly cost of $2,076, community colleges like DuPage are a relative bargain and provide a great return on investment.
Other Illinois manufacturers are addressing skills shortages by providing on-site training, promoting manufacturing careers in high school classrooms and to returning veterans, and sponsoring apprenticeship programs tied to nationally accredited standards.
Unfortunately, too many policymakers imagine "going to college" as enrolling in a university or four-year college, living on campus and graduating in four years. Much of our post-secondary educational and financial aid policies were designed for baby boomers. Many of today's students need flexible educational arrangements that allow them to work part time or support a family, and labor market demand for employees with associate degrees is outpacing demand for all other educational levels.
With the presidential candidates focused on "change," a good place to start is with better public policies to enhance the workforce development capacity of community colleges and help more individuals achieve the American dream.
Renewable energy solutions for Illinois manufacturers
As competitive energy markets have developed, retail suppliers have responded with a wide array of products and services designed to meet the specific needs of businesses and manufacturers. These range from the long-term price stability of fixed rates to variable rate programs that tailor usage to match the highs and lows of the short-term spot market. Competitive markets have also helped to spur the development of innovative energy solutions that have enabled manufacturers to incorporate renewable energy to diversify energy consumption while still maintaining the bottom line.
How to incorporate renewable energy
One available means to incorporate renewable energy into an energy portfolio is through the purchase of Renewable Energy Certificates (RECs). RECs are designed to recognize the environmental attributes of renewable energy such as solar, wind, hydro and biomass. REC purchases support the operation and financing of renewable energy and lessen our dependence on fossil fuel generation. The most immediate environmental impact is the avoidance of harmful chemicals and greenhouse gases from fossil fuel generated sources.
Manufacturers can also enter into direct energy and REC contracts for specific regional renewable energy facilities. Constructing on-site renewable generation is another viable and potentially profitable means of limiting dependency on fossil fuels and ensuring reliability of power supplies. Through Constellation Energy's Projects and Services Group, manufacturers can install on-site power systems such as rooftop solar panel installations.
On-site power systems may generate enough renewable electricity to meet the energy demands of manufacturers and its operational systems. These systems not only generate enough power to cover a large percentage of a facilities' needs, the systems also drastically reduce emissions and reduce demand on local electric grids, freeing up hundreds of watts of power.
Illinois manufacturers pursuing renewable energy
General Converting, Inc., a premier designer and manufacturer of folding cartons based out of Bolingbrook, recently matched 100 percent of their renewed electricity load with clean renewable energy through the purchase of Green-e certified RECs. In addition to further promoting sustainability efforts, General Converting is finding that the purchase has enhanced both its corporate image and also helped with product branding.
Baxter International, a leading health care manufacturer, has committed to support renewable generation through its purchase of sufficient Green-e certified RECs to match 98 percent of its energy needs at its corporate headquarters campus located in Deerfield, Illinois. This equates to 15.5 million kilowatt hours of electricity used on an annual basis.1
Illinois renewable energy sources and regulations
Even though renewable energy purchases often have a premium, many manufacturers are anticipating the environmental benefits that will come as more diversified power sources positively impact the grid. As well, forward-thinking organizations are looking down the road toward the potential regulation of greenhouse gas and are making the bet that purchasing renewable energy could be a great way to be ahead of the curve if or when regulations are enacted.
To illustrate this further, the Illinois Power Agency Act has set up benchmarks for renewable energy purchases by the utilities. Benchmarks for renewable energy purchases will start with a minimum of two percent by June 1, 2008, and incrementally increase to a minimum of 10 percent by June 1, 2015, with 75 percent of renewable purchases required to come from Illinois wind generation.
Illinois is one of 25 states with such a program. It is also worth noting that many customers are already purchasing renewable energy above and beyond these pending mandates to demonstrate their environmental commitment.
Constellation has already taken steps to secure regional renewable energy sources and currently purchases nearly 100 megawatts of power produced by Horizon Wind Energy's Twin Groves wind farm located outside of Bloomington. This commitment will be increased nearly threefold over the course of 2008, which in addition to underscoring our leadership in sustainable energy solutions; it will give our Illinois customers greater access to wind power produced in the state.
Integrating sustainable solutions into your business
Across these multiple innovative energy products and solutions, Constellation NewEnergy is working with our customers to evaluate existing energy consumption patterns and design and implement effective and affordable strategies. The result is a comprehensive approach to energy procurement that helps our manufacturing customers to achieve their environmental and financial goals.
Author Carrie Cullen Hitt is vice president of product management – renewable products for Constellation NewEnergy, a leading competitive supplier for commercial and industrial customers that serves the Illinois manufacturing industry. For more details on its renewable energy solutions, contact Constellation NewEnergy (http://www.newenergy.com) at 866-237-7693 or via email at
green@constellation.com.
1. Baxter International (April 25, 2007). "Baxter Announces Carbon Neutral Headquarters". Press release at
http://en.wikipedia.org/wiki/News_release/announcement.
RSM McGladrey joins forces with IMA for 2008 benefits and compensation surveys
IMA members look forward to receiving the annual IMA Compensation and Benefits Reports to help them benchmark with other Illinois manufacturing companies throughout the state. In 2008, this valuable member resource will exceed expectations with the input and expertise of RSM McGladrey, one of the nation's top accounting firms. "We are looking forward to partnering with IMA to combine our industry consulting and benchmarking strengths to provide extra value in IMA's Compensation and Benefits reports," says Brian Repsold, Director, RSM McGladrey.
"This partnership between HR and accounting is a great opportunity for manufacturers who participate in this survey," according to Mark Frech, IMA's Executive Vice President & Secretary. "Member participation is essential for quality results."
The IMA HR Advisory Tele-committee was formed in 2007 to determine members' HR needs and how to best meet those needs. The majority of members preferred September to receive the reports and an overwhelming number (71 percent) said they would prefer all reports be available annually. Consequently, all surveys and reports will now be available on-line and in print annually.
The key benefits of IMA's partnership with RSM McGladrey include their expertise in working with thousands of manufacturing industry clients annually, and their ability to create industry visibility by identifying industry trends, opportunities and best practices.
As a thank you for completing the surveys, participants will receive free online access and be able to purchase the printed version at a significantly reduced price.
The survey is being administered through Zoomerang, so your email invitation to participate will be sent via Zoomerang. You will first receive an email from IMA which includes your IMA member number in order to participate. If you are not a member and do not have a member number, contact Janie Stanley at 800-875-4462, ext. 3020, email
jstanley@ima-net.org, and she will assign you a number.
Report: 240,000 manufacturing jobs gone permanently
A new report on Illinois' economic outlook was released recently by the Illinois Commission on Government Forecasting and Accountability. The report was prepared by Moody's for the bipartisan economic forecasting service agency of the General Assembly.
According to the report, the state's manufacturing will continue to occupy a greater than average position in the Illinois economy, but Illinois will have to fight to maintain its manufacturing base. Currently, manufacturing is the single largest contributing sector to the state's economy at roughly 13 percent of state GDP. However, the report notes that since 1998, Illinois has lost more than 240,000, about 26 percent, of the sector's total employment and says the losses are expected to be permanent.
"Moody's report highlights what we've been saying," says Gregory W. Baise, president & CEO of the Illinois Manufacturers' Association. "There has to be a public and private sector resolve to make manufacturing in Illinois a priority. Otherwise it's likely we will continue this unacceptable trend for the foreseeable future."
Illinois' largest manufacturing sub-sectors include food processing, fabricated metals, chemicals, plastics and transportation equipment, and Baise notes that almost 75 percent of the current 11,227 manufacturing companies in the state employ less than 50 workers. Experts say that for every manufacturing job in Illinois, an additional 3.7 jobs are created to support industry.
The report also suggests that exports hold some promise for the long term viability of manufacturing in the state due to growth in developing countries, particularly in Asia. Earlier this year the U.S. Commerce Department reported Illinois ranked sixth among the states for exports in 2007 and sent $48.7 billion in goods to countries around the world.
However, Baise notes that state government has seemingly turned a blind eye to manufacturing, and that may be a risky gamble given global competition. Baise says there is a real danger that unless Illinois' business climate changes, it's likely, and Moody's agrees, that more companies will seek friendlier locations.
"Government leaders have to understand that tax incentives that can help create thousands of new jobs in Illinois is not corporate welfare," Baise said. "We can grow and strengthen our state economic base with jobs that pay $55,000 annually, on average, and provide family health care and retirement benefits. Or, we can turn our backs on these jobs and continue the exodus until we have no industry left.
"We've lost over a quarter of our industrial base in the last ten years. At this rate we stand to lose every manufacturing job before mid-century, and that would be a travesty."
The Illinois Manufacturers' Association has proposed a number of initiatives to reverse the current trend. These initiatives include investing in skilled education programs to develop a manufacturing work force second to none; gaining control over runaway systemic costs associated with unemployment insurance and workers' compensation; and helping businesses cope with escalating energy costs by eliminating the public utility tax on energy used in the manufacturing process.
"Governor Blagojevich and others in his administration need to heed the wake up call contained in the Moody's report," said Baise. "His ongoing demonizing of employers in Illinois serves only to delay job creation and denies Illinois workers the chance at obtaining a good job. We hope the report will help the Governor get the message that job creation by our private sector is the single best course of action for Illinois."
International trade event coming to Chicago . . .
April 16–17, 2008
Complying with U.S. Export Controls
http://www.export.gov/eac/show_detail_trade_events.asp?EventID=27453
This two-day program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods as specified in the Export Administration Regulations. Presenters from the Bureau of Industry and Security will conduct a number of hands-on exercises that will prepare participants to apply the regulations to their own company's export activities. For more information, contact Jeffrey Graber of the USFCS, telephone 312-353-7711; email:
jeffrey.graber@mail.doc.gov.
Export-led growth holds the overall economy above water
The March 11th Commerce Department report that the January manufactured goods trade deficit dropped by $7 billion from the previous year was hailed as validation that "export-led growth and free trade are continuing to hold the economy above water," according to Frank Vargo, the National Association of Manufacturers' vice president for international economic affairs.
"While the overall U.S. trade deficit in January was $4 billion larger than the same period last year, this was due to the continued growth in the petroleum trade deficit," Vargo said.
The January manufactured goods deficit was $37 billion, compared to $44 billion in January 2007. That's a 16 percent improvement over a year, with exports rising by 11 percent and imports growing only one percent.
"The export gain continues a trend that is due to — among other things — the competitive value of the dollar," said Vargo. "The slow import growth can also be attributed to the value of the dollar, though the slowing U.S. economy has cooled demand for consumer and other goods.
"The other real plus is our free trade agreements," he said. "Together, our free trade partners accounted for nearly half of our exports, but only $100 million of our $37 billion January deficit — with notable trade balance improvements in NAFTA and CAFTA.
"Legislators opposing the Colombia and other pending trade agreements have got it entirely wrong," said Vargo. "It's amazing how they hold on to the myth that these agreements are the problem rather than the solution when it comes to the trade balance. Stalling these agreements is hurting our export and job prospects while preventing legislators from offering solutions to the real problems U.S. manufacturers face."
Women less likely to aspire to top corporate positions
Although the ratio of men to women in middle-level management is roughly even, fewer female middle managers aspire to reach the senior-most management positions in their companies, according to a study recently conducted by Hudson, a leading provider of permanent recruitment, contract professionals and talent management services worldwide.
The study found that 77 percent of female middle managers aspire to be promoted to a senior management position, compared to 82 percent of male middle managers. Further, when asked about the highest position they would like to attain, men generally aim higher. Thirty-one percent of men name C-suite positions (e.g., CEO, CFO, COO) or president, while only 22 percent of women name these positions. The most frequent response for women is "director," with 23 percent aiming for that position, compared to 11 percent of men.
"The fact that female managers hesitate to aim as high as their male counterparts should definitely be noted by employers," said Margaretta Noonan, executive vice president, chief administrative officer, Hudson, North America. "One reason might be fear that they cannot maintain work-life balance in higher positions, so companies would do well to stress flexibility in upper-level positions. It could also be that females define top positions differently, and this possibility should also be addressed by companies."
Other findings include:
- Eighty-nine percent of women age 25-34 aspire to top positions in their companies, but these aspirations decline with age—58 percent of women age 45-55 share the same goal.
- More than half of women age 25-34 believe they can achieve their career goals, a figure that drops to 35 percent for women age 45-54.
- When asked what the greatest obstacle in their career is, 18 percent of men say they are torn between work and responsibility towards their family, compared to 26 percent of women.
"The study is a wake up call for employers because it suggests that they need to adapt some of their strategies to better embrace these women's career aspirations," added Noonan. "Employers should remember that these people have a lot of talent and experience to offer, so it's important to provide them with the opportunities they deserve."
Hudson recently published three white papers that present and explore findings from this study. For more information, and to view these white papers, go to http://www.hudson.com.
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.
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
March 28, 2008
IMA-MIT: Time Management and Personal Effectiveness Skills — DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn to delegate with confidence, plan and execute productive meetings, prioritize daily activities for ultimate results, and develop techniques for planning and achieving goals.
March 31, 2008
IMA-MIT: Failure Mode and Effects Analysis (FMEA) — Decatur Conference Center & Hotel, US Highway 36, Decatur
Learn to maximize the benefits of performing FMEA activities, eliminate or minimize effects of potential failures, gain ideas for other applications and learn about risk evaluation and management.
April 1, 2008
IMA-MIT: Failure Mode and Effects Analysis (FMEA) — DePaul University, 150 W. Warrenville Rd., Naperville
(See description above.)
April 10, 2008
IMA-MIT: Effective Performance Management and Goal Setting —
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Although many elements in the employer-employee relationship have changed, one key component has remained the same: effective performance management. These skills are necessary for business success now more than ever. However, due to time constraints, doing more with less, and ever increasing customer demands, performance management is becoming less of an ongoing process and more of a point-in-time event. In order for performance management to be truly effective, it must be ongoing and not just a point-in-time event. Leaders must begin the process by creating clear targets and then follow-up with effective and meaningful coaching and support. By engaging the employee in each step of the performance management cycle, employers are maximizing their investment in their talent pool and increasing the likelihood of business success. The content of this workshop is new, fresh, innovative, and delivered with engaging enthusiasm. What makes this seminar different? We allow you time to present, analyze and develop unique performance management challenges and our team of instructors will provide you on-the-spot feedback regarding your performance management documentation.
For IMA-MIT events, contact Judy Parker, 800-875-4462, Ext. 3036, or email jparker@ima-net.org
More information/events may be found at http://www.ima-net.org/calendar.cfm and http://www.ima-net.org/MIT/open.cfm
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