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BRIEFLY:
IMEC's Manufacturing Matters! Conference — May 8-9, 2007 in Peoria
Want to see how your company stacks up against today's leading manufacturing performance metrics? Attendees of IMEC's Manufacturing Matters! Conference receive a FREE customized benchmarking report (a $99 value), compliments of MPI.
(http://www.mpi-group.net/) Compare your facility's data to more than 2,000 facilities from the 2004-2006 U.S. Census of Manufacturers. The report includes new research and data on best practices such as scrap & re-work rate, warranty costs, customer reject rates, cycle times, on-time delivery, operating equipment efficiency, and more. MPI, headed by conference keynoter John Brandt, is one of the world's fastest growing firms focused on manufacturing performance research. Register by Friday, April 13 and receive up to $65 off the conference fee. Send four or more associates from your company and receive an additional 10 percent off.
Profile America: Vitamin C
It was 75 years ago today, Wednesday, April 4th, that Dr. C.C. King of the University of Pittsburgh isolated vitamin C. Let's raise a toast of orange juice to Dr. King. Before then, people knew that eating citrus fruit and fresh greens warded off certain diseases, such as scurvy, but didn't know why. Also known as ascorbic acid, vitamin C is one of the substances required for living. Studies have shown that people with high concentrations of vitamin C in their blood have greatly reduced rates of heart disease. Usually associated with fruit, vitamin C is also found in potatoes — which is good, because on average, Americans consume 23 pounds of fresh citrus fruit a year and 47 pounds of potatoes. Source: U.S. Census Bureau
April is National Child Abuse Prevention Month
Four children die every day in the United States from child abuse; the equivalent of a Boeing 727 filled with kids, crashing each month; or a school bus full of children crashing every 18 days. Learn the signs and symptoms of abuse. Report known or suspected child abuse to the local police department. If you have questions about child abuse, call the Childhelp® National Child Abuse Hotline at 800-4-A-CHILD®.
Join the fight against the proposed GRT — contact your legislator now!
Late Friday, March 30th, Governor Rod Blagojevich proposed revisions to his gross receipts tax proposal. The revisions make the proposal much worse. Instead of socking the Illinois business community with more than $6 billion in new taxes, the revised Blagojevich tax plan would hike taxes by almost $7.5 billion!
"The General Assembly is taking a two-week spring break, April 1-14th, and most lawmakers are back in their home districts during this time. This provides an excellent opportunity for you to contact YOUR state representative and senator and let them know how you feel about the governor's proposed gross receipts tax," said Gregory W. Baise, President and CEO of the Illinois Manufacturers' Association. "It is vitally important that lawmakers hear from area employers so that they fully understand the devastation the governor's massive tax hike would have on Illinois' economy, jobs, and YOUR business in particular."
Visit http://www.ima-net.org/video/alert0403.cfm
to view a special message from the IMA. You may also visit the Illinois Prosperity Project at
http://www.bipac.net/page.asp?content=startpage&g=IMA
if you need contact information for your legislators. In addition, you will find "Fast Facts about the GRT" at
http://www.ima-net.org/grt/. This information covers the major problems associated with the proposed gross receipts tax, and may be helpful in your discussion with your local legislator.
"Finally, I urge you to attend the annual Business Day in Springfield on May 2nd. This event gives us an opportunity to show a united front against draconian tax increases that will harm our communities," Baise continued. Register today at
https://www.ima-net.org/bizday07_reg.cfm.
There has never been a more critical time for business in Illinois' history. The need to fight this crippling tax proposal is urgent. If the governor is successful in passing this GRT, the long-term implications for business in Illinois will be devastating. Join the fight and act today.
U.S. economy will grow more in 2007, but corporate profit growth will erode
Key indicators are signaling a pick-up in the U.S. economy, growth of which will still approach three percent, according to an analysis by The Conference Board, the global research and business membership organization.
"Although the current economic cycle is now entering its sixth year of expansion, there are few signs of what economists might refer to as ‘cyclical aging,'" says Gail D. Fosler, Executive Vice President and Chief Economist of The Conference Board. Her analysis appears in StraightTalk, a newsletter designed exclusively for members of The Conference Board's global business network. "Growth has moderated, but inflation appears under reasonable control. All in all, the U.S. economy seems to have shaken off the burdens of cyclical dynamics."
Corporate profits, which have risen faster in this business cycle than in any other post-war cycle, are one of the most reliable indicators of cyclical health. More specifically, they provide valuable clues about the future of the U.S. economy and the corporate sector. Corporate profitability is also a key long-lead indicator of possible recession risks. Fosler expects corporate profitability to peak this year, and that overall profit gains should remain solid for the foreseeable future.
"But the forces driving corporate profitability will likely become more adverse as we get further into 2007," says Fosler. "Slowing productivity and rising costs do not bode well for the future."
Many of the companies that have enjoyed lower costs during the early years of this decade have recently had to offset higher costs through higher prices — a tactic that is in direct conflict with the Federal Reserve Board's inflation mandate. Additionally, the moderation in growth is likely to set off a period for jockeying for profitability within the value chain.
Productivity is an important tool for keeping costs down because when it slows, costs tend to rise. Unit labor cost restraint was an important source of profitability for manufacturing and the total economy from 2001 to 2004. But it is not the only player. As compensation costs rise and productivity gains wane, job growth picks up. This can put upward pressure on compensation when the unemployment rate is low.
Total compensation, as measured by the National Income accounts, is rising at a six percent annual rate. Although productivity and compensation tracked each other closely in the early years of this decade, compensation has recently started outpacing productivity. Companies have been able to offset the greater cost with higher prices, and margins appear to have stabilized or even peaked for this cycle. The tensions created by trying to cover rising costs with higher prices have put businesses and the Fed on a collision course that suggests higher interest rates and lower profits lie ahead.
Source: StraightTalk, Vol. 18, No. 2, The Conference Board
Albert R. Miller — "Outstanding Leader in Industry"
IMA Board member Albert R. Miller, president of Phoenix Closures, Inc., has been chosen "Outstanding Leader in Industry" for 2007 by the Manufacturing Productivity Center of the Illinois Institute of Technology (IIT) in Chicago.
Phoenix Closures, Inc. designs and produces packaging closures for food and pharmaceutical companies such as Kraft, Nestle, Pfizer, Ralston-Purina and Unilever. Mr. Miller is also the director of Precision Plactics, which manufactures injection-molded automobile parts. He is a member of the World Presidents' Organization and serves on the board of the National Association of Manufacturers. IIT is honoring Mr. Miller as "Outstanding Leader in Industry" due to his industrial success, his demonstrated leadership, and for being an outstanding spokesman for manufacturing.
Mr. Miller will be honored at the 12th annual Industrial Technology & Management Awards Dinner on Friday, May 4, 2007. The dinner will be held at the IIT main campus, Hermann Hall, 3424 South State Street in Chicago. A reception will begin at 6:00 p.m., followed by dinner at 7:00 p.m.
Tickets are $60 per person, or $450 for a table of eight. Reservations should be made by Wednesday, April 25th. Contact Cindy Spoor at 312-567-3652, or email spoor@iit.edu, for reservations or more information.
Utilities: Natural gas storage management — maximize the benefits of your most useful asset
What has been the most beneficial component of a diversified natural gas purchasing program for IMA members since the start of natural gas transportation? The answer — your natural gas storage capacity. Provided it is managed correctly, a customer's storage capacity provides numerous benefits.
For IMA members on the Nicor utility system, there are generally two options available regarding the use of their storage asset. One option is to turn over their storage capacity to a marketer in exchange for a nominal price discount on their spot market supply. This "pay-as-consumed" option is the most prevalent offering from marketers in Illinois, but it is not always the most beneficial for customers. The second option is to have a marketer actively manage your storage asset on your behalf. Under this scenario, gas is traditionally injected during the summer and withdrawn during the winter. Under this "pay as delivered' option all of the actual storage benefits are realized by the customer. For the past seven storage seasons, Constellation NewEnergy Gas Division (CNE Gas) customers who elected to have CNE actively manage their storage have averaged $0.12 per therm per year savings on their storage capacity. To think about it another way in the context of today's market conditions, would you rather purchase and inject gas for use next winter at today's prices of $0.70 per therm, or lock into a future fixed price for next winter which is currently trading at $.90 per therm?
Which option is best for IMA members? CNE Gas regularly consults with customers on the benefits and associated tradeoffs of each option. CNE Gas is unique in that they offer customers two options ("pay as consumed" and "pay as delivered"). Most gas marketers only offer one option. CNE Gas works with customers so they make the best, informed decision for their business.
Cost savings is not the only benefit associated with CNE Gas storage management. For IMA members on People's Gas/North Shore systems, storage is still an asset to be utilized and managed in the same way as described above, only to a lesser degree. Due to limitations of People's/North Shore's storage assets, the cost savings aspect is minimal. The primary benefits for accounts on People's/North Shore's system and a secondary benefit for Nicor customers is the ability to use storage for balancing daily and monthly load variances. The way in which CNE Gas has always actively managed storage minimizes often costly monthly ‘true-ups', ‘cash-outs', or re-pricing. This means monthly invoices are based upon actual gas delivered.
Constellation has numerous natural gas supply programs and pricing options available to IMA members in order to achieve protection from unpredictable price volatility. In general, we advocate a diversified plan consisting of a minimum of three components to help manage risk and protect customers from the extreme volatility of the natural gas market. In addition to storage and the other components of CNE's Managed Portfolio Plan, their customer service is second to none. CNE provides a portfolio of consultative services that help keep customers informed and save them time. Examples include: the assignment of a dedicated Account Manager, on-line reporting, weekly market updates and information, local energy conferences, and more.
Storage injection season traditionally begins April 1. To learn more about how you can maximize your storage benefits as part of a comprehensive long-term natural gas purchasing plan designed for price risk management, contact Jeff Abeln at 312-704-8527, or via email at
eff.abeln@constellation.com.
Constellation NewEnergy, the IMA Energy Partner, is North America's #1 competitive wholesale & retail supplier serving over 350 bcf of natural gas and 17,000 MW of peak load. Visit
http://www.newenergy.com for additional information.
HP: Providing economic opportunity in underserved communities
Hewlett Packard (HP) is now offering grants of HP mobile technology and cash to microenterprise development agencies and programs located in the U.S., including Puerto Rico, through its 2007 HP US Microenterprise Development Program. Up to 40 grants, each valued at $56,000, will be awarded to nonprofit organizations and higher education institutions that provide start-up assistance, business training, access to capital, and advice to entrepreneurs and very small businesses in low-income communities. The deadline for submitting an application for a grant under the 2007 HP U.S. Microenterprise Development Program is Tuesday, June 5, 2007.
If you know of a nonprofit microenterprise development organization in your community that has a vision for integrating technology into their operations to improve client services and help low-income entrepreneurs build and grow their businesses, direct them to http://www.hp.com/go/hpmicroenterprise to access the Request for Proposals (RFP) and learn more about the grant goals, eligibility requirements and application process.
Illinois Manufacturers' Association Business Day 2007
Wednesday - May 2, 2007 - President Abraham Lincoln Hotel - Springfield, Illinois
Thanks to our generous sponsors:
Abbott Labs - Ace Industries - Bison Gear & Engineering - Blistex, Inc.
Bowmark Consulting - Caterpillar, Inc. - Commonwealth Edison
Constellation NewEnergy - Deere & Co. - Exelon Generation - Exxon Mobil
General Motors Corp. - Illinois Manufacturing Extension Center
Oak State Products - State Farm Insurance - Vedder Price, Jim Spizzo
Register today at: http://www.ima-net.org/bizday07.cfm
Luncheon keynote speaker: Neil Newhouse, a partner and co-founder of Public Opinion Strategies, a national political and public affairs survey research firm whose clients include leading political figures, Fortune 500 companies and major associations.
Psychological assessment is a key tool in executive selection
Seventy-five percent of recently surveyed organizations either use or plan to use psychological assessment for the selection and development of executives.
Three-quarters of organizations surveyed by the Institute for Corporate Productivity (i4cp – formerly HRI) said that they use psychological assessments for executive selection and development or are considering adopting an assessment system. Of the 180 organizations responding to the survey, conducted in conjunction with HR.com, 58.3 percent currently use assessments, while another 16.7 percent are considering implementing them.
"Organizations are placing an increased focus on the development and selection of key talent," said Jay Jamrog, Senior Vice President, Research at i4cp. "Accurately identifying high-performing leaders is critically important when it comes to managing through change in an increasingly competitive global environment. The results of this survey clearly show that organizations are recognizing the demands placed on executives and are using the right tools to assess a leader's abilities to withstand the pressures of high-level jobs."
The i4cp survey also revealed that assessments are used most commonly for selection and development (66.4 percent), and roughly half (51.8 percent) of surveyed organizations assess candidates for virtually all management and supervisory positions.
Additionally, more than half of the companies (52.2 percent) utilize psychologists from outside the company to administer assessments, and the vast majority employ a mix of tests and interviews (64.4 percent) or comprehensive "assessment centers" (43.5 percent).
The Institute for Corporate Productivity (i4cp, inc.) improves corporate productivity through a combination of research, community, tools and technology focused on the management of human capital. For more information, visit
http://www.i4cp.com.
EPA to revise definition of solid waste
The U.S. Environmental Protection Agency has proposed to modify the definition of solid waste rule to streamline regulation of hazardous secondary materials. The proposed rule would provide for the recycling of such materials as solvents, metals, and certain other chemicals.
"This proposal recognizes that recycling secondary materials can both help the environment and reduce costs," said Susan Bodine, assistant administrator for EPA's Office of Solid Waste and Emergency Response. "By encouraging legitimate recycling practices that are environmentally protective, this proposal presents a win-win for the environment and for the economy."
EPA estimates that streamlining the management of secondary materials in a cost efficient but safe manner will result in an average cost savings of $107 million a year from both reduced regulatory burden and increased recycling.
The proposed rule provides exclusions for:
- materials that are generated and reclaimed under the control of the generator;
- materials that are generated and transferred to another person or company for reclamation under specific conditions; and
- materials that EPA deems nonwaste through a case-by-case petition process.
The proposal also defines legitimate recycling to ensure that only legitimate recycling activity benefits from the streamlined requirements, not treatment or disposal under the guise of recycling. EPA estimates about 4,600 facilities handling more than half a million tons of hazardous secondary materials annually may be affected by this proposed rule. The industry sectors that could be most affected are chemical manufacturing, coating and engraving, semiconductor and electronics manufacturing, pharmaceutical manufacturing, and the industrial waste management industry.
EPA is accepting comment on this proposal for 60 days following publication in the Federal Register. Docket number: EPA-HQ-RCRA-2002-0031 is available for public viewing. For more information on the proposed regulation, visit
http://www.epa.gov/epaoswer/hazwaste/dsw/abr.htm.
OSHA elevates silica regulatory priority
Silica and global harmonization of chemical labeling were among 19 regulatory priorities in the U.S. Department of Labor regulatory agenda published in the December 11, 2006, Federal Register. Occupational exposure to crystalline silica has been a continuing subject in the agency's regulatory agenda and has now been elevated to a priority. However, a planned peer review has been delayed again and now is slated for completion in April.
A rule that would require employers to pay for employee personal protective equipment has been pushed back again by the agency after numerous delays. In the previous regulatory agenda, OSHA planned final action on the rule by September. Final action on the rule is now slated for May 2007.
By February 2007, the agency planned to complete its review of comments submitted in response to the Occupational Safety and Health Administration's (OSHA) publication of an advance notice of proposed rulemaking (ANPRM) regarding the adoption of the Globally Harmonized System (GHS) of Classification and Labeling of Chemicals. OSHA issued the ANPRM Sept. 12, 2006, and said the GHS provisions would simplify hazard communication requirements for manufacturers and employers that ship chemicals internationally.
Other activities on the regulatory agenda included a revision and update of electrical standards by January 2007, an ANPRM for walking and working surfaces and personal fall protection systems by October 2007, a direct final rule on updating OSHA standards based on national consensus standards by December 2006, a review of comments on a proposed rule that would incorporate updated National Fire Protection Association standards in shipyard protection by December 2006, and a request for information on emergency response and preparedness by May 2007.
Executive eBriefing: Drug Testing in the Workplace — Perspectives of Industry Leaders
For safety & risk management professionals, loss prevention professionals, occupational health & HR professionals, CFOs, CEOs and COOs . . . Drug abuse in the American workplace is as serious a problem as it has ever been. Join us for this online e-briefing and learn from industry leaders who have instituted oral fluid-based drug testing as an important part of their successful drug free workplace programs. — Guest Speakers: Dave Scott, Director of Corporate Wellness, Archer Daniels Midland; Jim McAninch, CEAP, Allegheny Ludlum; and Mark Feeback, Manufacturing Services Manager, Swisher Mower.
Webcast Details: Date: Tuesday, April 17, 2007 - Time: 1:00 to 2:00pm CST
Location: Webcast to your remote location
For further information or to register please contact: Mari Schuller at mschuller@avitarinc.com
ETIP grants reimburse companies for employee training
The Employer Training Investment Program (ETIP) supports Illinois companies' efforts to upgrade workers' skills in order to remain current in new technologies and business practices. The ETIP grant will reimburse Illinois companies for up to 50 percent of the cost of eligible employee training taken between July 1, 2006 and June 30, 2007.
Illinois companies that are retraining/upgrading the skills of their existing workforce may be eligible for ETIP grant money if they meet certain criteria.
Apply for training funds today! For details, contact Judy Parker, IMA Director of Training at 217-522-1240, ext. 3036, or email
jparker@ima-net.org.
NEW Website offers outstanding training opportunities:
http://www.ima-net.org/MIT/
Training is no longer a luxury, but a basic ingredient in the development of a business. In today's economy, with companies struggling to prevent lay-offs and closure, it is vital to maintain a competitive high performance workforce.
In response to this growing need, the IMA has launched a new service — the Manufacturers' Institute for Training (MIT). We have expert trainers in the fields of safety, quality, leadership/management, communications, lean manufacturing, project management, IT, and much more. Customized, on-site sessions can also be arranged to address your company's specific needs or issues. Visit
http://www.ima-net.org/MIT/ on the Web or contact Judy Parker, IMA Director of Training, at 217-522-1240, ext. 3036, or email
jparker@ima-net.org.
April 24, 2007
IMA EVENT—HR Networking Forum
Oak Brook Executive Plaza, 1225 W. 22nd St., Suite 140, 9:30-11:30 AM
Back by popular demand, this free HR Networking Forum is designed for building relationships with other HR professionals in the manufacturing field. Manufacturing Members and Associate Members of the IMA are invited and encouraged to attend. Discuss similarities and differences on current HR issues among peers as well as potential solutions. Participants will also be invited to provide valuable feedback and suggestions for HR related IMA member services. More Information: Visit
https://www.ima-net.org/0407_seminar.cfm
April 24, 2007
IMA EVENT—Current Issues Affecting Managing Your Employees: Investigating on-the-job accidents & Fraud in Workers' Compensation claims AND Workplace Immigration—an intensive update on the HR issue of the decade.
Oak Brook Executive Plaza, 1225 W. 22nd St., Suite 140, 1:00-4:30 PM.
Stay up to date on the latest employment-related issues facing your organization. IMA's employment law expert Jim Spizzo, and his partner, Gabrielle Buckley, both of Vedder Price Kaufman & Kammholz, P.C., will discuss in depth recent trends, cases and new legislation regarding these topics. Bring your personnel/ human resources questions. COST: $125 for IMA members; $100 for each additional attendee from the same company and $200 for non-members.additional attendee from the same company and $200 for non-members. More Information: Visit
https://www.ima-net.org/0407_seminar.cfm
For more information on the programs above, contact: Kimberly McNamara, 800-875-4462, ext. 2109, or email:
kmcnamara@ima-net.org
May 2, 2007
IMA EVENT—
Business Day in Springfield
Join hundreds of manufacturers from all across Illinois for this one-day event in the state capitol. Lobby your elected officials and let them know how you feel about proposed tax increases, employer-paid universal health care and runaway state spending. Watch this space for registration information. Sponsorships are available. Contact: Mark Denzler, 800-875-4462, ext. 3008, or email:
mdenzler@ima-net.org.
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