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BRIEFLY:
EIA launches series to explain energy topics
Energy in Brief is a new series from the Energy Information Administration (EIA) that explains important energy topics using plain language.
As the source of official energy statistics from the U.S. Government, EIA provides the most accurate, policy-neutral energy data and analysis available. Each Energy in Brief concisely answers a question of importance to the public. The goal is not to be exhaustive but to clearly cover the main points.
Articles released so far address the following:
- How dependent are we on foreign oil?
- What are greenhouse gases and how much do we emit?
- How much renewable energy do we use?
- What is liquefied natural gas and what is its role as an energy source?
The Energy in Brief series is available on EIA's web site at: http://tonto.eia.doe.gov/energy_in_brief/. Email delivery and RSS feed options are also available to receive the Briefs.
IMTS 2008 — September 8-13, McCormick Place, Chicago
The 2008 International Manufacturing Technology Show (IMTS 2008) is the 27th edition of the premier manufacturing technology show in North America. More than 1,500 exhibiting companies will occupy 1.2 million net square feet of exhibit space and attract more than 91,000 buyers and sellers from 119 countries. Visit
http://www.IMTS.com for more information.
Manufacturers meet with lawmakers
More that 100 manufacturers from every corner of Illinois converged on the state Capitol in Springfield May 7th to attend the IMA's annual Business Day. The event was co-sponsored by the IMA and the Illinois Retail Merchants Association (IRMA).
Business leaders heard from key state policy makers during the luncheon including Senate Minority Leader Frank Watson (R-Greenville) and House Minority Leader Tom Cross (R-Oswego). State Representative John Bradley (D-Marion) addressed the group on behalf of House Speaker Michael Madigan (D-Chicago). All three speakers discussed the ongoing legislative session and the need for leadership to emerge soon to put together a balanced budget for the state fiscal year that begins on July 1. None of the speakers were hopeful that the legislature would adjourn by their self-imposed May 30 deadline.
"We were very grateful that Senator Watson and Representatives Cross and Bradley were willing to take time from their busy schedules to meet with us," said Gregory W. Baise, president & CEO of the Illinois Manufacturers' Association. "The opportunity we have to hear from our elected officials, and more importantly, for them to hear from us is particularly valuable."
IMA members had several hours to visit with their local elected officials in the capitol where an emphasis was made to express opposition to an effort by the state's trial lawyers to re-enact a Structural Work Act in Illinois. Since it was first proposed last month, proponents have not been able to cobble together enough votes to pass the legislation. The IMA has been among those groups voicing strong opposition to enacting the archaic and unnecessary provision. IMA member companies have been instrumental in helping to deliver that message to members of the Illinois House.
The day ended with a legislative reception at the IMA's headquarters where attendees and state lawmakers interacted. The IMA's 115th Anniversary was also celebrated.
2008 National Summit on American Competitiveness — America's top leaders to discuss U.S. position in worldwide marketplace — May 22 — Chicago
U.S. Secretary of Commerce Carlos M. Gutierrez announced in April that the Department of Commerce will convene the second national meeting of premier leaders from business, government, and academia to discuss what steps the public and private sectors can take to secure America's position as the most competitive economy in the 21st century. The 2008 National Summit on American Competitiveness will be held May 22 at the Fairmont Hotel in Chicago, Illinois.
"Increasingly America's prosperity is linked to our highly competitive economy," said Gutierrez. "This summit will explore entrepreneurship and free trade as mechanisms for strengthening America's leadership in the worldwide marketplace. I look forward to working further with leaders from both the public and private sectors in ensuring America's competitive advantage."
Secretary Gutierrez named Chicago Mayor Richard M. Daley and former Helene Curtis CEO Ronald J. Gidwitz to serve as Honorary Co-Chairmen of the 2008 National Summit on American Competitiveness.
"I am pleased to announce these two award-winning national leaders as chairmen who share a common national goal of keeping America competitive," said Gutierrez. "Mayor Daley has earned a national reputation for his innovative, community-based programs to conquer urban challenges. And, Ron Gidwitz is a world-class business leader who devotes his time and vast talent to promoting a pro-job, pro-growth, innovative business climate."
The summit will feature discussion on how to bolster the business climate, link entrepreneurship with economic prosperity, and utilize free trade agreements. The summit also will highlight the accomplishments of top state and local leaders who have successfully driven economic transformations in their regions to bolster competitiveness in global markets.
Confirmed speakers to date include CNBC Anchor Maria Bartiromo, Intel Chairman of the Board Craig Barrett, YouTube Co-Founder and CTO Steve Chen, and Boeing Chairman, President and CEO Jim McNerney.
"This summit offers a high-profile platform for meaningful discussion on the issues facing American businesses and citizens in an era of intense global competition," said Ron Gidwitz. Mr. Gidwitz currently serves as the Chairman of the Illinois Coalition for Jobs, Growth & Prosperity, a coalition of employers representing more than one million workers and is the founder of Students First Illinois, a non-partisan, statewide grassroots coalition of private individuals and community organizations in support of equal, high quality public education for all children.
For more information about the 2008 National Summit on American Competitiveness, or to register for the event, visit
http://www.americancompetitiveness.com
or http://www.commerce.gov.
Energy costs higher for small businesses
The Office of Advocacy released a report in April entitled Characterization and Analysis of Small Business Energy Costs, by Andy Bollman of E.H. Pechan & Associates. The report found that energy costs as a proportion of total input costs are higher for small businesses. According to the study, the median commercial sector industry has a small entity energy-cost-per-sales ratio that is 2.7 times the ratio for large entities.
The study found other indicators of the disparity in energy costs: 26 of the 31 commercial industries studied have higher energy expenditures on a cost-per-dollar-of-sales basis for small firms. In addition, the smallest size establishment category (under 50 employees) pays 35 percent more for electricity than the sector average, while the largest establishment category (1,000 or more employees) pays 17 percent less than the sector average.
The study found that small businesses in the commercial sector faced a 30 percent price differential for electricity and a 20 percent price differential for natural gas, and that small businesses in the manufacturing sector faced a 28 percent price differential for distillate fuel oil and a 27 percent price differential for natural gas. The authors used data from the U.S. Bureau of the Census, the Energy Information Administration, and the U.S. Department of Agriculture. The report is available on Advocacy's website at:
http://www.sba.gov/advo/research/rs322.pdf.
Hong Kong and Zhaoqing joint promotion — Chicago, June 9
Hong Kong and Zhaoqing are a winning combination for US firms looking to expand in China. The Greater Peal River Delta (PRD) has a total population of some 54 million. With its total GDP and exports exceeding USD 472 million and USD 600 million respectively, the Greater PRD is China's most affluent region with rapidly expanding purchasing power.
This seminar is designed to highlight growth opportunities available for your company in Hong Kong and Zhaoqing. Learn how US companies can benefit from establishing their regional headquarters in Hong Kong and making use of this strategic location to oversee their manufacturing facilities and sales operations in the Greater PRD region.
The seminar, Hong Kong – Zhaoqing: Your Winning Formula in China, will be held at The Palmer House Hilton, Chicago on June 9. Lawyers, accountants and other professional specialists will present case studies and provide free advice on a range of China business issues, including tax, setting up a company and protecting intellectual property. This is an excellent opportunity to network with high-level government officials and business executives.
The morning seminar will be followed by a luncheon. For further details visit
http://www.overseaspromotion.com/hkchicago2008
or contact: Ms Edith Wong, Manager, Overseas Promotion, 852-3107-1065 or Ms Erika Magder:, 514-448-7777, ext.225.
RSM McGladrey & IMA collaborate on the IMA's annual 2008 Compensation Survey . . .
The Illinois Manufacturers' Association and RSM McGladrey invite you to participate in the annual 2008 IMA Compensation Survey. All participants will receive a FREE electronic copy of the survey report. In addition, IMA members will receive significant discounts on custom reports available only to those who participate in this survey.
This survey covers 186 positions across 13 job families including jobs at the plant, supervisory, management, and executive levels. Data will be collected on base pay, pay grades, annual bonuses, and target incentive levels. For executive level positions, additional data on long-term incentives and perquisites will be surveyed. The published results will contain compensation information for different geographies (e.g., city of Chicago, Northern Illinois), revenue levels, and number of employees. New this year is the availability of custom reports providing data on select peer groups, and index reports which allow a comparison of your organization's pay to the market median rate.
The questionnaire is available at http://www.ima-net.org/compsurvey08.cfm
as an MS Excel document. A participation guide is also available. The MS Excel questionnaire contains several tabs — be sure to click on each tab and complete the relevant information.
The deadline for completing this survey is Friday, May 30, 2008. All compensation data should be reported based on a May 1, 2008 effective date. Results are scheduled for release in September 2008. Completed questionnaires can be returned via email to
IMASurveys@rsmi.com.
If you have any questions or comments regarding the survey, please feel free to contact Janie Stanley of the IMA at 800-875-4462, ext. 3020 or
jstanley@ima-net.org.
CEOs of companies in emerging markets confident of growth
According to PricewaterhouseCoopers (PwC), CEOs of companies in emerging markets around the world are confident they can maintain high rates of growth funded primarily from internal resources rather than relying on outside investment, continuing the trend toward convergence of developed and emerging economies.
A new report from PwC "Convergence & Differentiation: What is success in a connected world?," launched at the World Economic Forum's on Latin America meeting in Cancun, finds that growth in emerging markets is outstripping that of developed nations, blurring traditional economic distinctions. In addition to the well-established emergence of the BRIC economies (Brazil, Russia, India and China), intra-regional trade and investment is fuelling explosive growth in such countries as Indonesia, South Korea, the Philippines, Singapore and Thailand.
"The economic strength and confidence of the emerging markets could at least partially offset the impact of economic slowdowns in the developed world. The flow of capital, goods and labor among emerging economies is now growing faster than trade between emerging nations and developed countries. The expanding connections of the economies in the developing world could insulate them from the worst impact of a downturn in the US and Western Europe," said Samuel A. DiPiazza Jr., Global CEO of PricewaterhouseCoopers.
The report noted that since 2000, emerging markets have run a current account surplus and have exported capital to the rest of the world. Emerging markets have also driven the number of initial public offerings (IPOs) to record levels worldwide, with 70 percent of all IPOs in 2007 coming from emerging economies. And emerging economies now account for 45 percent of world exports and have amassed 75 percent of all foreign exchange reserves.
CEOs of companies in emerging economies identified a number of risks to continued growth. They noted that a slowdown in the developed world could slow commodity exports, while fallout from the credit squeeze in the United States could impact local financial markets. Longer term, CEOs in emerging markets were sensitive to the potential impact of global climate change. Emerging-market CEOs believe more strongly than their counterparts in developed economics that governments should take a leadership role in determining strategies to combat global warming. They believe the developed world should accept more responsibility for the costs to correct its impact, an opinion shared by CEOs in the developed economies.
Asked how they would fund growth, most CEOs from emerging-market economies said they would rely on internally generated cash flow. The debt market ranked a distant second as a source of capital. The equity markets, divestiture of existing assets, and accessing private equity and venture capital ranked far behind. Of the 14 CEOs interviewed in depth for the report, none said that access to capital was a barrier to growth, citing their company's strong credit ratings and a continued influx of foreign capital.
The PwC report identifies three sets of "strategic drivers" that contribute to the success of companies in emerging markets and enable them to differentiate themselves in an increasingly converging world. These differentiators are asset-driven, including financial strength, brands and people; process-driven, including supply chain and innovation; organization-driven, including governance and structure. Ironically, the report found that often the very factors that make companies in emerging markets unique and successful are viewed by some outsiders as limitations.
For example, because emerging markets once faced difficulties in attracting capital, companies became adept at building internal capital reserves and maintaining healthy credit ratings. They also developed disciplined financial structures that serve them well today as their home markets grow quickly and attract foreign investment.
As emerging market companies become larger and more complex, they need to recruit and retain more qualified employees, a difficulty in many growing markets. Nearly 90 percent of CEOs in emerging markets said the "people agenda" was a top priority for them. However, significantly fewer said their time was best spent on Human Resources issues and a minority thought their companies were capable of making the change needed to compete for talent.
The report also addresses cultural, structural and business networks components of organizations. It finds that in some cases, traditional "command-and control" structures associated with family enterprises, gives them the agility necessary to succeed in the current business environment.
According to the report, most emerging market CEOs perceive government as more of an obstacle than a pathway to private-sector development. Emerging-market CEOs more strongly factor in regulatory concerns when making business decisions than do their counterparts in developed economies. Yet, 30 percent of emerging market CEOs believe that current governments are creating a business-friendly environment, slightly higher than the 24 percent of CEOs from developed economies who think likewise.
"Convergence & Differentiation: What is success in a connected world?"
http://www.pwc.com/emergingmarkets
was developed by PwC to provide a framework from which to view the successes of companies based in emerging markets. The report, the first in a series of reports on the emerging markets, drew on the insights of PwC partners and associates as well as PricewaterhouseCoopers 11th Global CEO Survey, which questioned more than 1,100 CEOs worldwide. The survey was launched in January, 2008 at the world Economic Forum annual meeting in Davos, Switzerland. For more information go to
http://www.pwc.com/ceosurvey.
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders.
The IMA's 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
Lawsuit Climate 2008: Improvements downstate offset by worsening environment in Cook County
Illinois has one of the five worst legal climates in the nation according to Lawsuit Climate 2008: Ranking the States, an annual assessment of state liability systems conducted by Harris Interactive, a nonpartisan national market firm, and released recently by the U.S. Chamber Institute for Legal Reform.
Survey respondents rated Cook County as the second worst legal environment in the country, trailing only Los Angeles. Cook County accounts for nearly two-thirds of all of Illinois' civil litigation. And last November, a Cook County judge struck down a significant legal reform designed to control runaway awards in medical malpractice lawsuits.
According to ILR President Lisa Rickard, trial lawyer allies in the state legislature passed a law last year creating a new amorphous category of damages in wrongful death actions likely to lead to much higher lawsuit awards. They also recently sought to pass several anti-reform proposals, including a bill that would allow trial lawyers to more easily target "deep pocket" defendants, regardless of that defendant's level of fault in a lawsuit.
Rickard also noted the recently introduced legislation to allow injured workers to sue companies other than their own employer that were involved in a workplace accident, even if the incident was the fault of the injured party. The bill would also permit injured workers to seek damages from other parties while collecting workers compensation. If passed, these proposals would further worsen Illinois' reputation as a lawsuit abuse haven, she said.
The Harris survey is the preeminent standard by which companies, policymakers and the media measure the legal environment of states. Illinois has languished near the bottom of the state rankings for all seven years Harris has conducted the study.
A separate survey of Illinois business owners found 89 percent believe frivolous lawsuits are a serious problem, 61 percent think the number of unfair lawsuits against businesses in Illinois will increase over the next five years, and 74 percent want the Illinois Legislature to enact new laws to help protect business from unfair and frivolous suits.
The survey of 250 Illinois business owners, 83 percent of them small businesses with fewer than 20 employees, was conducted by Public Opinion Strategies earlier in April. It has a margin of error of +/-7 percent.
Join the IMA Energy Program . . .
IMA members looking to compare their electric supply options can go to http://www.newenergy.com/ima
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.
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
May 20, 2008
IMA-MIT Event: Essential Leadership Skills for Newly Promoted and Frontline Supervisors
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
This fast-paced, invigorating one-day workshop will provide you with the skills to build better working relationships, develop the perspective of a leader, and establish realistic performance goals for employees.
June 2, 2008
IMA-MIT Event: Lean Manufacturing: Quick Start
Decatur Conference Center & Hotel,
4191 US Highway 36 West, Decatur
Designed to help participants quickly initiate team oriented on-going lean activities, this workshop includes instruction on Lean terms and definitions, waste identification and analysis, team organization and choosing Lean tools for waste free processes.
June 3, 2008
IMA-MIT Event: Lean Manufacturing: Quick Start
DePaul University, 150 W. Warrenville Rd., Naperville
(See course description above)
June 6, 2008
IMA-MIT Event: Project Management for Non-Project Managers, DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn project management skills, tools and techniques to make the transition to a project leadership role and ensure optimum project execution. This one-day workshop provides increased competence to manage a project through all project stages: initiating, planning, delivering, monitoring, and completing.
June 16, 2008
IMA-MIT Event: 5S and Visual Controls
Decatur Conference Center & Hotel, US Highway 36, Decatur
This workshop will focus on effective methods of applying 5 S and Visual Controls techniques and tools in the manufacturing and office environments. Learn to maximize the benefits of red tag techniques, orderly work environment and visual workplace methodology.
June 17, 2008
IMA-MIT Event: 5S and Visual Controls, DePaul University, 150 W. Warrenville Rd., Naperville
(See course description above)
June 20, 2008
IMA-MIT Event: From Conflict to Collaboration: Improving Your Interpersonal Communication Skills, DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn to turn destructive conflict into constructive collaboration while participating in the conflict situation, or as a third party mediator. Learn to be assertive but open to the opinion of others. Understand the difference between healthy and unhealthy resistance.
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