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March manufacturing employment drops
March unemployment figures in Illinois reveal more job losses in the state's manufacturing sector according to the Illinois Department of Employment Security.
"Despite a relative stable unemployment picture for March, jobs in manufacturing continue to lag behind in our state's otherwise growing economy," said Gregory W. Baise, president and CEO of the Illinois Manufacturers' Association. "In March, we lost another 4,500 good-paying manufacturing jobs. The total manufacturing jobs lost since March of 2005 now tops 9,400 — a trend we must find a way to stop."
Manufacturing employment has dropped from 726,700 in just over three years to today's 681,100, a decrease of more than 45,600 jobs and the lowest number of workers in the manufacturing sector since the Department began electronically publishing monthly employment information dating from 1990. According to the Illinois Job Index, a publication of the Illinois Coalition for Jobs, Growth and Prosperity, the state's growth in the number of manufacturing jobs since 1990 trails 14.34 percent behind other Midwest states and 20.05 percent behind the national average.
Attend "Managing Your Canadian Subsidiary" seminar May 12 in Chicago
Time is running out to register for "Managing Your Canadian Subsidiary" a half-day seminar presented by Gowling, Lafleur, Henderson LLP. The seminar will be held on May 12 at the historic Drake Hotel in Chicago, beginning at 8:00 a.m. Designed for companies with a Canadian presence or those who are considering establishing a presence, this seminar will cover a wide range of subjects including tax laws, trade agreements, labor laws and differences in operating distributor and dealer networks. There is no charge for this information packed event. Visit www.gowlings.com/chicago-may12 for convenient online registration.
NAM: U.S.-China meetings in April highlight trade problems and progress
High-level meetings during April in Washington and Geneva highlighted key China trade problems as well as some progress on issues important to National Association of Manufacturers (NAM) members. On April 11, U.S. Trade Representative Rob Portman and Commerce Secretary Carlos Gutierrez met with China Deputy Premier Wu Yi in the U.S.-China Joint Commission on Commerce and Trade (JCCT) for an intensive working session on bilateral trade concerns.
Following the meeting, the U.S. delegation reported progress on several issues relating to expanded market access and improvements on intellectual property rights (IPR) enforcement.
On market access, China agreed to eliminate duplicative testing requirements for medical devices, lower capital investment requirements for foreign telecommunications operators and ensure that third generation mobile phone standards would be technology-neutral.
On IPR enforcement, China committed to intensify efforts to shut down markets selling counterfeit goods and develop a broader "Action Plan" to improve enforcement of IP rights, including through new legislation and education efforts. China also committed to help protect IPR of software developers by ensuring that only legal software is used in government agencies and state enterprises.
Another noteworthy commitment is that China said that, to improve transparency, it would start requiring the publication of all laws and regulations in a single official journal, the China Foreign Trade and Economic Cooperation Gazette.
U.S. concerns about IPR protection and currency undervaluation were also highlighted in President Bush's meeting with President Hu Jintao on April 20. In his remarks to a dinner audience of U.S. business executives later that day, President Hu made a point of stressing the importance China attaches to the IP protection as part of its own economic development strategy. Finally, U.S. trade officials used the opportunity of the World Trade Organization's regular review of China's trade policy on April 19 to highlight a range of trade concerns, including inadequate IPR protection, industrial subsidies, auto import restrictions and protectionism against service industries.
Report: Specter wants Bush to stake out immigration position
In an effort to end the impasse over immigration legislation, Senate Judiciary Chairman Arlen Specter (R-PA) says he plans to ask President Bush to initiate a "pre-conference conference" with the House to settle the broad outlines of a final bill now.
Congressional Quarterly reported that Specter, who is among a number of senators scheduled to meet with Bush, said the president could help ease apprehension among Democrats by making clear his vision and establishing a direction for lawmakers to follow.
"The indications are he prefers to keep his powder dry and weigh in for the conference at a later time," Specter said. "That's his call. But as the manager of the bill in the Senate, I think we could use some help right now."
A bill the House passed in December focused on border security and enforcement, with no provisions to address the illegal immigrants already here or create a guest worker program. The Senate's stalled version includes all three elements.
Developing a natural gas purchasing plan designed for price risk management
Managing volatile energy prices has become THE key concern for energy and commodity procurement managers. In a recent poll of its membership, conducted by the Procurement Strategy Council, 82 percent of respondents claimed managing price volatility to be their most urgent energy and commodity procurement issue. Developing a strategic plan can offer you price certainty and budget assurance, key components in today's environment of lean budgets, tight margins and volatile pricing.
So, how do you know what to do and when to act? First, you need to be committed to developing a strategic plan that looks forward and takes action based on market conditions and your business requirements instead of short-term "lowest price" consideration. Changing from a savings-based model to a strategy-based model will offer you a deliberate decision-making process, the ability to mitigate your exposure to market price volatility and give you long-term budget visibility.
There are several steps to shaping a strategic natural gas purchasing plan. The first is to clearly define your goals and objectives. In today's competitive markets, most manufacturers do not have the luxury of passing high energy prices incurred due to volatility directly onto their customers. Price spikes, therefore, are directly impacting many bottom lines. Second, you need to develop a proactive strategy to meet your goals and that remains consistent with your objectives. Use time as your ally. A prudent supply strategy considers a longer-term view of the market as far out as 24 to 36 months. Develop a diversified portfolio. Use physical gas storage capacity to the extent available to establish a fixed, known cost component prior to winter, and as a means to offset daily and monthly load variances. Use price hedging for additional protection for a portion of your load by purchasing small portions of NYMEX contracts on a diversified basis. Leave some spot market exposure to use volatility to your advantage if prices go down. Diversification will help mitigate price spikes by flattening the price curve. Finally, choosing a partner with financial and credit stability, Illinois market supply experience, regulatory expertise, and the human resources necessary to manage through this difficult environment, will provide you with the information you need to make decisions. There is a solution that best meets your needs.
To learn more about how you can develop a comprehensive long-term natural gas purchasing plan designed for price risk management, contact Jeff Abeln at 312-704-8527, or via email at jeff.abeln@constellation.com.
Constellation NewEnergy, the IMA Energy Partner, is North America's #1 competitive wholesale & retail supplier serving nearly 325 bcf of natural gas and 15,000 MW of peak load. Visit www.newenergy.com for additional information.
EPA offers more than $1 million in grants for emission reductions from diesel-powered engines
U.S. Environmental Protection Agency Region 5's Midwest Clean Diesel Initiative (MCDI) has announced the availability of $1,039,320 in grant monies for projects aimed at protecting public health by reducing diesel emissions in the Midwest.
EPA said it is offering funding for school bus projects and other types of diesel emission-reduction projects. Total funding available for the school bus projects is $464,320 and total funding available for the other diesel emission-reduction projects is $575,000. Proposals are due by June 16, 2006. Announcements, application instructions and more information about the MCDI are at www.epa.gov/midwestcleandiesel.
EPA has set stringent standards for new diesel engines and their fuels, including heavy-duty trucks and buses, and non-road equipment such as construction and cargo-handling equipment.
"We created the Midwest Clean Diesel Initiative to help reduce emissions from existing engines that don't meet the new standards. Diesel engines are the workhorses of our economy and can last a long time," said Acting Regional Administrator Bharat Mathur. "We are pleased to announce these grants to help protect public health and the environment."
Q4 personal income growth slow in Illinois
U.S. personal income grew nationally at 2.3 percent in the fourth quarter of 2005, the second fastest pace in the current economic expansion, according to the Bureau of Economic Analysis at the U.S. Commerce Department. However, that news was tempered by Illinois' 1.6 percent growth rate for the same period, ranking the state 37th. Louisiana led all states in fourth quarter growth, reflecting recovery efforts from last fall's hurricane season. Around the midwest, Iowa ranked 20th in growth, while Missouri ranked 23rd, Kentucky 27th, Wisconsin 28th and Indiana 49th.
Statistics for income estimates covering the first quarter of 2006 will be released in June.
Crain's list includes IMA members
Two IMA member companies are included in the top ten on Crain's Chicago Business' list of largest women-owned firms in the Chicago area.
Turtle Wax Inc. of Chicago and United Scrap Metal, Inc. of Cicero rank 7th and 10th respectively on the list of the top 30 companies owned by women. The list was published on Monday, May 1, 2006.
"The expansion of companies owned by women continues," said Gregory W. Baise, president and CEO of the Illinois Manufacturers' Association. "We not only want to applaud Sondra Healy of Turtle Wax and Marsha Serlin of United Scrap Metal, but also Crain's for giving these dynamic women the recognition they deserve."
Turtle Wax will celebrate its 40th anniversary as an IMA member in June 2007. They employ some 1,400 workers and produce automobile waxes and polishes.
Meanwhile, United Scrap Metal is celebrating 20 years of membership in the IMA and employs 100 workers.
The 15 best practices of today's small and medium manufacturers
Excerpt from "The Future Success of Small & Medium Manufacturers: Challenges & Policy Issues"
"The Future Success of Small and Medium Manufacturers: Challenges and Policy Issues," a report sponsored by the National Association of Manufacturers, the Manufacturing Institute and RSM McGladrey, reaffirms the critical role SMMs have in driving America's economy and discusses the challenges facing U.S. manufacturing leadership.
The publication is also intended to increase awareness and understanding among policymakers — federal, state and local — of the extreme competitive and regulatory conditions confronting SMMs. Congress and the White House took immediate notice when the report was released, and arranged to meet with NAM representatives, including NAM board member Tom Murphy, RSM McGladrey's executive vice president of manufacturing and wholesale distribution.
NAM's report is a must-read for every SMM — and every business that works with SMMs — in the Illinois area. Following is the list of the 15 characteristics of small and medium manufacturers who are successful in today's global market:
- Stay in touch with customers, talk to them about their needs, and look to them for new product ideas.
- Differentiate products and services to better define and develop a competitive advantage.
- Devote the necessary time and energy to marketing; develop a distinctive product and marketing strategy; expand and diversify your customer base.
- Go global. Develop export markets.
- Ensure that your activity-based cost system is helping your company contain cost increases, focus on which activities are consuming the most resources and highlight non-value added activities.
- Look for a long-term relationship with a banker who is willing to take the time and effort to understand your company.
- Invest at least 3 percent of your payroll in employee training; get involved with Workforce Investment Boards (WIBs), government-sponsored training programs and local educational institutions such as community colleges that offer training in manufacturing skills.
- Explore how experts from a Manufacturing Extension Partnership (MEP) center can help you with your business.
- Appoint a majority of outsiders with relevant and diversified business experience to your board of directors or board of advisors; look to those outside directors or advisers for opinions and advice; welcome their challenge.
- Develop a plan for management succession. Start estate planning early and continually keep abreast of estate tax laws and regulations.
- Monitor your company's viability and competitiveness on a daily, weekly, and monthly basis with a set of key performance indicators (KPIs) tailored to your company's particular business challenges.
- Weigh both quantitative and qualitative factors in making capital investment decisions. Strike a balance between staying on top of technology and making investments you can't afford; no company has unlimited resources.
- Constantly look for opportunities to delegate, to empower your employees at all levels and to create the corporate culture for a high-performance workplace.
- Speak out to your government representatives at the federal, state and local levels.
- Stay abreast of legislative, regulatory and policy developments through the general media, business publications, and industry, trade and professional organizations such as the NAM (www.nam.org).
You can view or download a pdf of the report at RSM McGladrey's website, www.rsmmcgladrey.com/About_Us/NAM_media_kit/SMM_Report.pdf.
Online course helps prevent smoking-gun e-mails in the workplace
U.S. Supreme Court adopts electronic discovery rules. Course created to help employers prepare for this new litigation danger.
Interactive Employment Training, Inc. (IET) and Litigation Proofing, LLC, have released "Think Before You Send: A Practical Guide to E-mail in the Workplace." The course helps employees avoid the e-mail miscues that may lead to financial losses, bruised reputations and employment terminations.
Under new electronic discovery rules – approved April 12 by the U.S. Supreme Court – millions of e-mails will routinely be analyzed by lawyers seeking ammunition in court battles. The course was authored by three nationally-recognized litigators who believe e-mail risk management is now a necessity.
"We built this course because workplace e-mail servers are now transparent in litigation and inappropriate e-mails will become discovered on a more frequent basis. Good corporate governance now mandates training employees about the appropriate use of e-mail," said Robert D. Lipman, Esq., president of IET and managing partner of Lipman & Plesur, LLP.
The course includes the "Seven Deadly Sins of Workplace E-Mail" identified by former Merrill Lynch litigation manager and president of Litigation Proofing, LLC, Eric M. Rosenberg, Esq. In about 35 minutes, the course teaches the importance of regarding each e-mail as a permanent document and then presents compelling scenarios of common mistakes such as inappropriate personal use of corporate systems and ill-advised attempts at humor over difficult business decisions.
For an online demonstration, visit www.HRTrain.com/emailrisk.
IET creates e-learning solutions that focus on workplace topics.
For more information, visit www.HRTrain.com.
LitigationProofing, LLC provides training and consulting to financial services firms, other corporations, and law firms on crucial litigation issues concerning electronic communications, attorney-client privilege and document retention. For more information, visit www.litigationproofing.com.
New report profiles environmental stewardship in major sectors
Steel recycling has reached a 20-year high, according to a report released May 1st by the U.S. EPA. In addition: the number of buildings meeting green building standards doubled last year; paint and coating manufacturers now reclaim 97 percent of all waste solvents for further use; and the forest products sector now leads all manufacturers in use of co-generation, a highly efficient process that creates heat and electricity from a single source. These are just a few of the environmental performance trends highlighted in the report.
The 2006 Sector Strategies Performance Report is a joint product of EPA's partnerships with some of the nation's most important economic sectors. Collectively, these sectors contribute nearly $2.1 trillion to the gross domestic product and $5 billion in environmental spending each year.
"Environmental responsibility is everyone's responsibility – and today I'm pleased our nation's economic leaders are taking this motto to heart," said EPA Administrator Stephen L. Johnson. "By working with our partners in industry, President Bush and the EPA are promoting the innovative solutions that make sense for our environmental and economic well-being."
Through EPA's Sector Strategies Program, more than 20 national trade associations – representing 12 major sectors of the U.S. economy – are working with the agency to improve their environmental performance while also reducing unnecessary administrative burden. The participating sectors represent more than 780,000 facilities in manufacturing (cement, forest products, steel, metal casting, metal finishing, paint and coatings, shipbuilding, and specialty-batch chemical) and non-manufacturing sectors (colleges and universities, construction, ports, and agribusiness).
Using government and industry data, as well as case study examples, the report provides a 10-year portrait of environmental performance for each sector. It tracks each sector for their record in reducing water discharges, air emissions, waste generation, toxic chemical releases, as well as their accomplishments in recycling and energy and water efficiency.
The data reveal areas where sectors are improving and where more effort is needed to achieve environmental goals. For example, the forest products, iron and steel, and cement sectors are some of the nation's most energy-intensive industries. While all three registered improvements in energy efficiency over the 10-year period, their trade associations (the American Forest and Paper Association, the American Iron and Steel Institute, and the Portland Cement Association) have set industry goals that would net further energy savings and reduce greenhouse gas intensity.
The report also provides a first-time look at how EPA's Toxic Release Inventory (TRI) data can be used to target the greatest hazard reduction opportunities when managing chemicals. EPA is using toxicity-weighted scores to show release trends for higher impact substances. This information can serve as a tool for future strategic planning. The 2006 report also describes how sectors are turning would-be wastes into material and energy inputs, and how trade associations are helping their members improve environmental operations.
For a copy of the 2006 Sector Strategies Performance Report, visit: www.epa.gov/sectors/performance.html.
More information on the Sector Strategies Program can be found at www.epa.gov/sectors.
DATES OF NOTE:
More events may be found at http://www.ima-net.org/calendar.cfm
June 7, 2006
Developing Your Company's Employee Handbook
Northern Illinois University
Naperville
8:30am – 12:30pm
Presenters: Jim Spizzo, Vedder Price Kaufman & Kammholz, PC, Chicago, and Donna Rogers, SPHR, HR Director, Illinois Manufacturers' Association, Springfield. Employee handbooks are essential. Our interactive program will examine the practical and legal do's and don'ts of establishing and maintaining an up-to-date Employee Handbook.
Contact: Kimberly McNamara
Telephone: 630-368-5300
Email: kmcnamara@ima-net.org
Coming in June . . .
Winning UI Hearings
Next month, IMA will present four training seminars designed to help you better prepare and win unemployment insurance benefit hearings. Staff from the Illinois Department of Employment Security will present a half-day seminar in four convenient locations throughout the state. Learn what Hearings Referees look for to determine whether to deny benefits; how to better prepare your presentation; and, get answers to your questions. A mock hearing is included where you will have the opportunity to act as Referee! These seminars will be open to the first 50 registrants per site. Watch for early registration information coming soon.
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