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BRIEFLY:
EEOC Seminar for Employers
The U.S. Equal Employment Opportunity Commission will be holding a Technical Assistance Program for employers on May 6 and 7, 2008 at the Lincolnshire Marriott Resort. Participants will get an understanding of the law, plus a real world view of how the EEOC looks at different types of employment situations. Employers will learn and understand how to implement ADA's Reasonable Accommodation requirements, and how to resolve EEO complaints quickly through mediation. Other session highlights include race discrimination, documentation, discipline and discharge, legal updates, preventing sexual harassment and conducting internal EEO investigations. Contact Rita Coffey at 312-353-7254 or email rita.coffey@eeoc.gov for more information.
Networking — careers, opportunities for women in science and technology
Dykema, a leading national law firm, will participate in Chicago's premier annual women's networking event, POWER: Opening Doors for Women™, by hosting a special dinner focused on women's opportunities and challenges in science and technology. The POWER event will be held May 22, 2008 and begins with a networking reception at the Adler Planetarium. Following the reception, POWER participants will travel to separate sites for topic-specific dinners.
The Dykema sponsored dinner will be held at the Woman's Athletic Club, 626 N. Michigan Ave., Chicago. Speakers include senior-level women from academia, business, and research institutions.
For more information, contact Janet A. Stiven at 312-627-2569; email: jstiven@dykema.com.
IMA Business Day 2008 * Wednesday * May 7 * Springfield
Lunch: Noon * Reception: 5:30-8:30 pm
Visit http://www.ima-net.org/bizday08.cfm
or contact Kimberly McNamara, 800-482-0462, ext 2109, email kmcnamara@ima-netorg.
Participate in the IMA's 2008 Benefits Survey . . . now available online
The Illinois Manufacturers' Association, in partnership with RSM McGladrey, invites you to participate in the 2008 Annual IMA Benefits Survey. Your responses to this survey will be helpful to all manufacturers in the state of Illinois. All participants will receive a FREE electronic copy of the survey report. In addition, participants will receive significant discounts on custom reports available only to those who participate in this survey. This comprehensive survey covers a variety of benefits topics.
To ensure the timely analysis and processing of survey results, participants need to submit their data no later than Friday, April 30, 2008. If you cannot meet this deadline but still wish to participate, please contact Janie Stanley of the IMA at
jstanley@ima-net.org or 800-875-4462 x3020.
To participate now, click on the following link: http://www.zoomerang.com/Survey/?p=WEB227LC6TLTY5
To aid in completion of this on-line survey, you can download and print a PDF version of the survey at
http://www.ima-net.org/benefits08/BenefitsSurvey08.pdf
International competitive pressure varies in impact on U.S. manufacturers
Very small manufacturers more affected by global conditions
Currency exchange rate pressures lead to an increase in the exit rates for very small manufacturers (fewer than 20 employees), finds a report released today by the Office of Advocacy of the U.S. Small Business Administration.
"Interestingly, small manufacturers in high-tech industries are more insulated from international competitive pressures than those in other sectors," said Robert Feinberg, professor at American University and author of the paper.
The study, The Impact of International Competition on Small-Firm Exit in U.S. Manufacturing,
(http://www.sba.gov/advo/research/rs320tot.pdf) focused on 1990 to 2004. The author noted little variation in the overall exit rate of small manufacturers over time, but a reasonable amount of variation across firm size and industry. Factors affecting exit across firm sizes included overall economic activity, labor costs, and whether the firm's industry sector produced consumer goods. Changes in an industry's import share produced mixed results across time periods and firm sizes.
For more information and a complete copy of the report, visit the Office of Advocacy website at
http://www.sba.gov/advo.
Business spending on technology infrastructure $250 billion in 2006
U.S. businesses spent $250.7 billion on information and communication technology equipment and computer software in 2006, an increase of 6.3 percent from 2005, according to a recent report from the U.S. Census Bureau.
The report, Information and Communication Technology Survey, presents annual data on noncapitalized and capitalized business spending for information and communication technology equipment and computer software. It serves as a supplement to the broader Annual Capital Expenditures Survey report.
Noncapitalized expenditures are expenses for assets that have a useful life of more than one year and are written off in the same year in which they are made. Capitalized expenditures are expenditures for assets that have a useful life of more than one year and are usually depreciated.
Of the total spending in 2006 on information and communication technology equipment and computer software, sometimes referred to as e-business infrastructure, noncapitalized spending accounted for $90.8 billion (36.2 percent), and capitalized spending accounted for $159.9 billion (63.8 percent). Noncapitalized spending in 2006 was unchanged from 2005, while capitalized spending increased 10.9 percent.
Rapid technological advances in e-business equipment, such as computers, telephones, fax machines and electromedical apparatus, have resulted in these assets being replaced much more quickly than other types of equipment. Many companies write off the full cost of these assets during the year of purchase rather than depreciating the cost over two or more years.
In the three categories of noncapitalized spending on e-business infrastructure, purchases of equipment accounted for $18.6 billion; operating leases and rental payments, $18.2 billion; and computer software expenditures, $54 billion.
- The largest share of noncapitalized equipment purchases, $13 billion, went for computers and computer peripherals, a 6.4 percent increase over 2005.
- The largest share of noncapitalized operating leases and rental payments, $11.8 billion, went for computer and computer peripherals.
- The largest share of noncapitalized computer software expenditures, $30.7 billion, went for purchases and payroll for developing software. The rest, $23.3 billion, went for software licensing and service/maintenance agreements.
Two categories accounted for total capitalized spending on e-business infrastructure in 2006: purchases of equipment, $100.6 billion, an increase of 6.8 percent from 2005; and purchases and payroll for developing software, $59.3 billion, an 18.4 percent increase over 2005.
Other highlights:
- In 2006, about 77 percent of noncapitalized spending and about 75 percent of capitalized spending was concentrated in five business sectors: information; finance and insurance; manufacturing; professional, scientific and technical services; and health care and social assistance.
- The information sector spent $62.7 billion on equipment and computer software in 2006, an increase of 13.7 percent from 2005. That represented 25 percent of all spending in e-business infrastructure in 2006. Of the sector total, 22.3 percent went for noncapitalized expenditures; 77.7 percent went for capitalized expenditures.
- Spending in the finance and insurance sector for equipment and computer software totaled $48.3 billion. Of this amount, $20.8 billion went for noncapitalized spending and $27.5 billion for capitalized spending. The finance and insurance sector accounted for 19.3 percent of total e-business infrastructure spending in 2006.
- The manufacturing sector spent $34.9 billion for equipment and computer software in 2006, an increase of 5.6 percent from 2005. Of this amount, $16.9 billion was for noncapitalized expenditures and $18 billion for capitalized expenditures. Manufacturing accounted for 13.9 percent of total e-business infrastructure spending in 2006.
- Spending for the professional, scientific and technical services sector totaled $25.9 billion in 2006. Of this amount, $12.2 billion went for noncapitalized spending and $13.6 billion for capitalized spending. This sector accounted for 10.3 percent of total e-business infrastructure spending in 2006.
The estimates in this report are based on a stratified random sample of about 46,000 companies with employees. Responding firms account for about 75.8 percent of the total e-business infrastructure spending estimate. The full report is available online at
http://www.census.gov/csd/ict/.
Trial lawyers push for Scaffolding Act
More than a decade after business groups in Illinois convinced lawmakers in Springfield that the "Scaffolding Act," first enacted in the early 1900s, was no longer beneficial to either workers or employers, State Representative John Fritchey (D-Chicago) introduced legislation this week to reinstate the Structural Work Act in Illinois.
Amendment 1 to House Bill 2094 establishes the Construction Safety Act of 2008 and says that all precedents and court decisions related to the act that was repealed in 1995 be considered reinstated through this Act.
A "Scaffolding Act" gives certain injured workers a second award for workplace injuries; once under the Workers' Compensation Act and a second under this Act. It is archaic and puts an unnecessary burden on employers. Enactment would make Illinois one of only two states in the nation with such a provision in its law and would further underscore Illinois' anti-business climate.
Covered in the proposal are all scaffolds, hoists, cranes, stays, ladders, supports or other mechanical contrivances for use in the erection, repair, alteration, removal, or painting of any structure. Violations of the Act constitute a Class A misdemeanor, which could incarcerate an individual in the county jail for up to one year and impose fines of up to $2,500 for each occurrence.
The bill is expected to be heard in a House committee the week of April 7-11.
Illinois State Treasurer offers "Employ Illinois" loans for businesses
Employ Illinois gives business owners access to capital to start or enhance their low-interest rate loans. Available at more than 400 banks and lending institutions statewide, Employ Illinois strengthens the financial health of communities and the State by investing in job creation and other qualifiable benefits. A participating bank or other financial institution must determine if a borrower is credit worthy before an Employ Illinois loan is approved by the Treasurer's Office.
There are four types of Employ Illinois borrowers: large business owners, small business owners, child care providers, and reserve forces. Employ Illinois is one of three types of "linked deposit" programs operated by the Treasurer's Office. Under state law, the Treasurer's Office has the authority to deposit state money at a reduced rate of interest in local financial institutions that issue loans at below-market rates for specific projects and programs.
Employ Illinois loans are used to acquire land, purchase equipment, provide working capital, buy inventory or make capital improvements. These loans are available to the businessmen and women of Illinois. Contact the Treasurer's office for more information about the loan possibilities for your business by e-mailing
employillinois@treasurer.state.il.us
or call 312-814-8953.
Chicago Business Barometer™ eased
After the February seven point drop in the Chicago Business Barometer, the March value of 48.2 was a modest improvement. Apparent improvement from a less negative value was tempered by the dual facts that a) the Barometer remained below neutral (50) and b) did so for the second consecutive month. Moreover, for the second consecutive month, the Prices Paid index documented spreading inflation. The presence of recflation (recession and inflation) provides consumers, business professionals, policymakers, and politicians with a host of challenges and no simple answers.
The Chicago perspective on the national economic scene began 2008 on a subdued note that turned sour as the Chicago Business Barometer reported a contracting economy in both February and March. However, of the seven business activity indexes, five rose between February and March, including an Inventory increase that lessened the extent of contraction. More importantly, the increase in Prices Paid brings little joy as inflation spreads through the economy at a faster rate. The three month moving average smoothes month-to-month variations and reveals a broadly contracting economy . . . contracting at an increasing rate across the board.
The three month trend exposed a weakening economy that dropped just below neutral. New Orders tracked Production, save for recording the tenth month of a gradually declining three month average. The Order Backlogs index declined to the lowest value since November 2001, the last month of the most recent recession. While Inventories declined for the second month, Employment declined for the fourth month, albeit at a slower rate in March. The February sharp fall in the Supplier Deliveries index was reversed in March. While monthly Prices Paid advanced irregularly since November 2006, the three month moving average increased in 13 of 15 months. The March value (83.9) is the highest value since June 2006.
The strength, as well as the limitation, of the CHICAGO Report may come from its sensitive measurement of economic activity. While sometimes called a "manufacturing" report, the Chicago Purchasing Manager Survey encompasses the full range of economic activity, including the service sector. In addition, the survey panelists report business activity of their firm, regardless of future national economic activity as well as characterize current activity. Finally, the CHICAGO Report, like other Purchasing Manager Surveys, provides essentially contemporaneous measures of economic activity. As such, the March Chicago Business Barometer reports increasing clouds and the thunder of an economic recession spreading from the housing and credit sectors while illuminated by the continuing and increasingly frequent flashes of spreading inflation. Source: Kingsbury International Ltd.
USCIS reaches FY 2009 H-1B cap
U.S. Citizenship and Immigration Services (USCIS) announced today that it has received enough H-1B petitions to meet the congressionally mandated cap for fiscal year 2009. USCIS has also received more than 20,000 H-1B petitions filed on behalf of persons exempt from the cap under the "advanced degree" exemption. Before running the random selection process, USCIS will complete initial data entry for all filings received during the filing period ending on April 7, 2008. Due to the high number of petitions, USCIS is not yet able to announce the precise day on which it will conduct the random selection process.
USCIS will carry out the computer-generated random selection process for all petitions received. USCIS will select the number of petitions needed to meet the caps of 65,000 for the general category and 20,000 under the "advanced degree" exemption limit. USCIS will reject, and return filing fees for all petitions not randomly selected, unless found to be a duplicate.
The agency will conduct the selection process for "advanced degree" exemption petitions first. All "advanced degree" petitions not selected will be part of the random selection process for the 65,000 limit.
Leadership lessons from the Presidential campaign
During a Presidential election year when leadership, character and vision are discussed in the media, business executives are naturally inclined to think more about their own management skills, according to global consultants BlessingWhite.
"Executives begin to assess the candidates' leadership styles and think about whom they most identify with," said Stephen Parker, BlessingWhite's Vice President of Consulting. "They look at different speaking styles, use of stories and real-life examples, or get caught up in the drama of campaign rally. But while executives may learn something from the political process, they're just as likely to take away the wrong lessons."
According to Parker, a CEO may therefore be prompted to talk about a vision or plan, give an inspirational speech or hold a town hall meeting. "But they have to be wary of certain traps, for instance, not get sidetracked by style rather than substance, or stuck in a broadcast mode, listening just to those who applaud."
On the positive side, however, political campaigns may cause leaders to think more boldly or broadly, and engender healthy ambition, believes Parker. "Unlike the candidates, CEOs can develop themselves as leaders without the intense media glare of a Presidential campaign, and that reduces their risk. They just need to keep the fundamentals in focus."
Parker offered six leadership lessons that may be drawn from the Presidential race:
1. Go live, but avoid the stadium venue. Encourage more informal communication, such as one-on-one discussions or unscripted, unstaged town hall meetings. Do some business travel alone, without your staff, stopping by locations quietly and unannounced.
2. Embrace change personally, not just talk about it. Recognize that in order to drive organization change you must also be willing to change — both genuinely and visibly.
3. Draw on your emotions, but always check in the mirror. Do not make the mistake of letting your passion deteriorate into vehemence, which may come across as anger and stifle disagreement.
4. Stay on message, but don't just parrot the same speech. Determine what is important for you and to the business and then repeat it until it sticks. Be clear about what you want to be known for as a leader.
5. Be curious and discover things about the staff. Be genuinely curious about other people and their lives. This is the real basis for empathy, and without empathy no trust can emerge.
6. Be yourself, not some scripted version of a leader. Do not try to be authentic, just be yourself. The more that employees feel they actually know you, the more likely they are to trust you.
"Always keep in mind that authenticity can't be manufactured and that no leadership style works for everyone," cautioned Parker. "Employees participate in Presidential campaigns, and now corporate leaders find they're under the same critical lens that people use to judge the candidates. So leaders need to take extra care to ensure their words and actions mesh."
Leaders can learn from the Presidential campaigns by taking time to consider what is relevant and useful for them, advised Parker. "Avoid all the theater and posturing. Don't just blindly emulate a candidate. But be inspired by the candidates to do something original."
BlessingWhite is a global consulting firm dedicated to creating sustainable high-performance organizations. Based in Princeton, NJ, with locations in London, Chicago, San Francisco and Melbourne, the firm has worked with almost three million professionals in thousands of organizations since its founding in 1973.
Report on Manufacturers' Shipments, Inventories and Orders
New orders for manufactured goods in February, down two consecutive months, decreased $5.7 billion or 1.3 percent to $424.4 billion, the U.S. Census Bureau reported recently. This followed a 2.3 percent January decrease. New orders for manufactured nondurable goods decreased $3.2 billion or 1.5 percent to $212.1 billion. Shipments, down two of the last three months, decreased $9.0 billion or 2.1 percent to $423.0 billion. This followed a 1.1 percent January increase. Unfilled orders, up thirty-three of the last thirty-four months, increased $7.5 billion or 0.9 percent to $822.4 billion. This was also at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.8 percent January increase.
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
April 15, 2008
IMA-MIT Event: Problem Solving–8D
DePaul University, 150 W. Warrenville Rd., Naperville
Designed to demonstrate effective problem solving methods, this workshop will focus on root cause analysis, cause and effect diagrams, five "Why" techniques, team oriented problem solving and containment measures.
April 17, 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. 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. Register early to ensure availability.
April 25, 2008
IMA-MIT Event: Consultative Sales Skills for Sales Professionals, DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
The challenging world of sales professionals is constantly changing. Technology is eroding the power of a good old face-to-face conversation. In order to build business success, the sales professional must view the customer as a "potential partner", and, as we know, successful partnerships are built upon ongoing relationships that need to be nurtured, cultivated and developed. This one-day seminar will provide sales professionals with the skill set to maximize consultative sales relationships.
April 28, 2008
IMA-MIT Event: Mistake Proofing
Decatur Conference Center & Hotel, US Highway 36, Decatur
This workshop focuses on effective methods of applying mistake proofing as a practical method of improving and maintaining process. Learn about standard inspection, mistake proofing principles, red flag conditions and review practical examples.
April 29, 2008
IMA-MIT Event: Mistake Proofing
DePaul University, 150 W. Warrenville Rd., Naperville
(See description above.)
IMA'S EXECUTIVE MEMO IS UNDERWRITTEN BY:
Accelper Consulting
Plan for your company's future by learning the only proven process for creating Breakthrough Innovation On Demand!
BRINNOVATIONTM . . . a two-day seminar in Schaumburg April 23-24
Two days: $595 — Registrations due by April 18, 2008 — To register or request information, phone: 847-884-1900 * fax: 847-884-7280
http://www.accelper.com * email: info@accelper.com
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