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BRIEFLY:
"It Pays to Go Green" Sustainable Industrial Development Expo
The City of Chicago's Department of Planning and Development and the Local Industrial Retention Initiative (LIRI) are co-sponsoring a Sustainable Industrial Development Expo on June 26 from 7:30 am to 1:00 pm at the Coyne American Institute, 330 N. Green St., Chicago.
The theme of the half-day event: "How environmentally sustainable business practices are not only attainable but have important efficiency and cost advantages for companies that implement them." The expo will feature round table discussions on the following topics:
- Energy efficiency financial incentives
- Cultivating a greener commute
- Making money by going green
- Safety & security
- Building a sustainable workforce
- Sustainable initiatives
- Making business & business districts tech ready
Chicago Mayor Richard Daley has been confirmed as the luncheon speaker.
For information or to RSVP, please contact the Department of Planning and Development at 312-744-0140 or email:
2008_expo_RSVP@cityofchicago.org.
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.
You deserve a break . . . network peers, exercise, relax and enjoy the fresh air
MPAC Golf Outing
Friday, June 27, 2008
Willow Crest Golf Course at Oak Brook Hills Marriott * 3500 Midwest Road, Oak Brook
For details, visit https://www.ima-net.org/mpacgolf08.cfm or contact
Kimberly McNamara at 630-368-5300, ext. 2109, email kmcnamara@ima-net.org
Sponsorship opportunities available.
Manufacturer's Purchase Credit deadline approaching
The Illinois Manufacturer's Purchase Credit (MPC) filing deadline is June 30, 2008. Forms ST-16 [Annual Report of Manufacturer's Purchase Credit Earned] and ST-17 [Annual Report of Manufacturer's Purchase Credit Used] must be filed in order to receive the credit for purchases made in 2007. Detailed record keeping is helpful for quick and easy filing.
How do I earn the credit? The credit is earned by purchasing manufacturing or graphic arts machinery and equipment that qualify for an exemption from sales tax. Additionally, some tangible personal property used in the repair and maintenance of qualifying machinery and equipment may qualify for the credit. The credit is equal to 50 percent of the state sales tax rate of 6.25 percent that would have applied to the purchase of the exempt equipment.
How do I use the credit? The credit can be used on the purchase of production-related tangible personal property to offset the state rate of 6.25 percent. Note: the credit cannot be applied against local sales tax. To use the credit on purchases where the vendor collects sales tax, provide the vendor with Form ST-16C to satisfy the liability. To use the credit on out-of-state purchases, MPC can be reported on line 16a of Form ST-1.
What is production-related tangible personal property? The qualifying tangible personal property is as follows:
- Property used or consumed in R&D activities, even if they do not occur at a manufacturing or graphic arts production facility.
- Property purchased for incorporation into real estate within a manufacturing or graphic arts production facility.
- Fuels, coolants, solvents, oils, lubricants, cleaners, adhesives, and other supplies and consumables used in a manufacturing or graphic arts production facility.
- Hand tools, protective apparel and fire safety equipment used or consumed in a manufacturing or graphic arts production facility.
- Property used or consumed in a manufacturing or graphic arts production facility for purposes of pre-production or post-production material handling, receiving, quality control, inventory control, storage, staging and packing for shipping or transportation.
Do the credits expire? Yes, the credit expires on the last day of the second calendar year following the year in which the purchase occurred. For example, credits earned during 2007 will expire on December 31, 2009.
Are there new changes to the credit? While there are no changes to the credit itself, the governor has signed Senate Bill 783 which allows a temporary sales and use tax exemption for production related tangible personal property. The bill is retroactive to July 1, 2007 and the exemption is in effect through June 30, 2008. The exemption caps off at $10 million for all taxpayers. If claims exceed this amount, the $10 million will be distributed on a prorated basis. The state will offer additional guidance and forms within the next few months. Please note, sales tax must still be paid at the time of purchase, and the applicable refunds will be issued at a later time.
For more information or to further discuss this tax saving opportunity, contact Jenifer Provenzano, 312-634-4390, email:
Jenifer.provenzano@rsmi.com or John Wojcik, 847-413-6227, email:
john.wojcik@rsmi.com in RSM McGladrey's State & Local Tax group.
General Assembly adjourns
Just hours before the clock struck midnight on Saturday, May 31, members of the General Assembly approved a state budget for FY 2009 and adjourned for the summer. The final spending plan for the coming year totals more than $59 billion, an increase of nearly $2.1 billion over the current year's appropriation. Democrat majorities in the House and Senate pushed the budget through over objection from Republicans who contend that the budget is severely imbalanced, a view shared by Governor Rod Blagojevich.
The FY 2009 budget is predicated on new revenues coming largely from natural revenue growth and the sale of the 10th riverboat license. New spending in the budget is allocated primarily toward K-12 education ($515 million), Medicaid ($600 million), and pensions ($700 million) with some additional dollars also going to higher education. Plans to sweep state funds and refinance pension obligation bonds were defeated in the House of Representatives.
Yesterday, less than two days after the General Assembly adjourned, the Governor announced that he believed the budget violated the Constitutional requirement to be balanced. As such, he announced his intention to continue meeting with the four legislative leaders to craft a balanced budget and new capital infrastructure plan. The General Assembly defeated efforts this spring to pass a massive new $34 billion capital bill that would have built new roads, bridges and schools funded by three new riverboats and expanded gaming at horse tracks. Many legislators pointed to the billions of dollars in pork projects and a lack of trust for the Governor as the primary reason for opposing the infrastructure bill.
Several major environmental bills were defeated during the spring session. On the final day, lawmakers in the House defeated a bill (SB 1987) that would have increased electric rates for residents and businesses to pay for a new "clean coal" plant in downstate Illinois. Opponents, including the IMA, noted that the plant would be using untested and experimental technology and instead preferred a feasibility study prior to raising rates on businesses. Another attempt to create a new Global Warming initiative (SB 2220) including creation of an Illinois cap-and-trade program was held in the General Assembly with hearings scheduled over the summer. Finally, a plan for new air emission regulations for automobiles (HB 3424) was stopped because of its negative impact on the cost of new vehicles, loss of auto manufacturing jobs, and reduction of the use of ethanol and other biofuels.
Two new health care mandates covering marriage counseling and eating disorders were passed by the legislature. At the same time, expensive new mandates covering autism, habilitative services, and cochlear ear implants were held up because of an ongoing power struggle between leaders in the House and Senate. According to experts, every new health insurance mandate increases the cost for employers by one to three percent. After IMA president Greg Baise successfully sued the Governor to stop implementation of a massive new health care expansion costing billions of dollars, there was no additional effort by the Governor to tax employers.
The legislature is scheduled to return to Springfield for the fall veto session after the election in November. However, given the unbalanced budget, it is possible that lawmakers will be asked by the Governor to return to the Capitol at some point this summer to address the budget and capital bills.
The World Trade Center Illinois Africa Agribusiness Forum
The World Trade Center Illinois will join the Corporate Council on Africa as a cooperating partner of the 2008 U.S. Africa Agribusiness Forum to be held in Chicago from June 25-27.
Organized by the CCA's Agribusiness Initiatives Program, the 2008 Agribusiness Forum, Investigating Agricultural Links in Africa, is expected to attract over 300 leaders from private and public sectors in the U.S. and Africa.
The involvement of WTIC will help Illinois businesses wanting to invest in agriculture and agribusiness-related industries in Africa.
At the forum, global leaders in the agribusiness industry will meet to discuss the increasing business case for investing in agriculture and food production in Africa.
"Illinois is at the epicenter of U.S. agriculture and agribusiness activity," said CCA President Stephen Hayes. "With World Trade Center Illinois, we can ensure that Illinois businesses will be at the table with business leaders from around the U.S., to see firsthand the latest investment and business opportunities in African agribusiness."
According to the World Bank, up to 80 percent of Africa's labor force is involved in agriculture and agribusiness-related enterprises. This percentage of the labor force has a total value of more than $206.7 billion in 2006 in Sub-Saharan Africa, and in 2007, agriculture generated more than one-third of Africa's GDP growth.
"We're delighted to have the opportunity to partner with The Corporate Council on Africa for this first of its kind conference on agribusiness in Africa," said WTCI Chairman Neil F. Hartigan. "Our team of experts, including the former director of the Illinois Department of Agriculture, are working to ensure that every aspect of Illinois agribusiness will participate in and benefit from this event."
The two-day forum will include networking opportunities, industry-specific workshop sessions and plenary sessions in which industry experts will provide cutting-edge information on various agribusiness issues. Topics of discussion will include cross-cutting issues such as financing, commodity trading markets, infrastructure investment to connect African markets, food security, livestock production and investment, carbon trading, cash crop production and investment, product innovation, market information systems improvement, pharmaceutical growth, bio-fuel industry growth and production technology.
The participation fee for the event is $700. For more information on the 2008 U.S.Africa Agribusiness Forum visit
http://www.africacncl.org/(dfgvrvybrripkqvm42x1u255)/Default.aspx.
Chicago Innovation Awards call for nominations
Businesses and nonprofit organizations throughout the Chicago area are invited to compete in the Chicago Innovation Awards, the region's premier competition honoring innovation in products, services, processes and business models.
The annual Chicago Innovation Awards recognize businesses and organizations that have embraced innovation by introducing products, services, processes or business models that uniquely fill unmet needs, generate a competitive response in the marketplace, exceed market expectations and achieve financial success. Founded by Tom Kuczmarski, founder and CEO of the Chicago-based innovation firm Kuczmarski & Associates, and prominent local journalist Dan Miller, the awards have grown in stature and visibility each year since they were established in 2002.
Winners will be profiled in a special section of BusinessWeek Chicago, featured on podcasts and broadcasts on WBBM NewsRadio 780, and honored at a special reception and awards ceremony to be held October 27 at the Goodman Theatre in Chicago.
In addition, more than 150 nominees will be awarded scholarships for a one-day innovation program taught by the faculty of the Kellogg School of Management at its internationally renowned executive education facility, the Allen Center.
Last year, 249 companies from both the for-profit and not-for-profit sectors were nominated in the competition. Past winners have ranged from big-name corporations and government agencies, such as Abbott Labs, Radio Flyer and the Chicago Department of Transportation, to small, up-and-coming businesses, such as skinnyCorp (owner of Threadless), driFIRE and Experiencia Immersive Learning Center. In the nonprofit sector, winners have included Pets Are Worth Saving (PAWS) and the American Cancer Society. What unites them is an innovative new product or service.
Major sponsors of the Chicago Innovation Awards include IBM, the law firm McGuire Woods, and Wrigley Company.
In order to be eligible, nominees must have launched a new product, service, process or business model between May 1, 2006, and July 31, 2008. The contest is open to any type of organization, public or nonprofit, with national or divisional headquarters in northern Illinois, northwestern Indiana, southeastern Wisconsin or southwestern Michigan. There is no cost to enter one or more nominations. The call for nominations will be open through July 31.
For details on the awards and the nomination process, call Edward Glassman at 312-988-1516 or visit
http://www.chicagoinnovationawards.com.
Supreme Court upholds 401(k) participant's right to sue
As defined benefit plans give way to defined contribution plans, retirement plans like the 401(k) have transformed the way in which employees prepare for their retirement. Most employees are now responsible for determining what their future retirement needs will be and to take the necessary steps to ensure those needs are met. The corollary effect is that employers who sponsor retirement plans are under more scrutiny to fulfill their fiduciary responsibilities and operate their 401(k) plan in the best interest of participants and beneficiaries. Employers who sponsor a qualified retirement plan must comply with a number of fiduciary requirements outlined in the Employee Retirement Income Security Act of 1974 (ERISA), Department of Labor (DOL) and Internal Revenue Service (IRS) guidelines to operate the plan. Compliance with the regulations while managing a retirement plan can be overwhelming for some plan sponsors.
To further complicate the role of the plan sponsor, the Supreme Court earlier this year established the first precedent enabling individual 401(k) participants to sue plan sponsors for breach of fiduciary duties in order to recover personal losses in their accounts in the Larue v. Dewolff, Boberg & Associates, Inc., et al case. Previously the language of the law provided relief for the "plan" rather than for an individual participant.
The retirement plan involved in the ruling was participant directed, as are most 401(k) plans, but the employer actually made the investment changes as opposed to directing participants to a website or customer service center to initiate investment changes in their own accounts. The employer failed to follow the participant's instructions and the participant lost $150,000. While the facts and circumstances surrounding the case are not normally how retirement plans currently operate, many analysts feel the ruling has implications across the retirement plan industry. Expectations are that the ruling will further increase the scrutiny already faced by plan sponsors to operate their retirement plan in the best interest of plan participants and beneficiaries as required by ERISA.
There is no insurance policy, service provider contract, or investment strategy that can entirely protect a retirement plan fiduciary from risk. In light of the court case, plan sponsors should implement a proactive system that establishes committee processes, documents decisions, and measures action steps to ensure compliance with ERISA, DOL and IRS guidelines. Processes will serve to create a defense for plan sponsors against possible litigation from plan participants. We encourage all plan sponsors to make sure there is sufficient oversight in their retirement plans.
Author Diana Jordan, AIFA®, is a Pension Consultant with Sikich Retirement Plan Services LLC. If you have any questions or would like to receive a copy of the Supreme Court Case, Larue v. Dewolff, Boberg & Associates, Inc., et al, contact Diana Jordan, at 877-862-1842.
NAM opposes Lieberman-Warner climate bill
The U.S. Senate is expected to begin debate on SB 3036, America's Climate Security Act of 2007, during the week of June 2nd. SB 3036 aims to reduce total U.S. greenhouse gas emissions with the goal of lowering emissions 63 percent below their 2005 levels by the year 2050. These reductions would be achieved through a system that would call for companies to cap their emissions, and then to have them trade emissions rights with each other. The National Association of Manufacturers (NAM) and the IMA are in strong opposition to this bill due to the harmful economic impact that SB 3036 would have both nationally and at a state level on energy costs, economic growth and employment.
The NAM and the American Council for Capital Formation (ACCF) unveiled a jointly commissioned study that assessed the economic impacts resulting from the proposed climate change legislation included in SB 3036, America's Climate Security Act of 2007. SB 3036 is sponsored by U.S. Senators Joseph Lieberman (I-CT) and John Warner (R-VA). Visit
http://www.accf.org/pdf/NAM/fullstudy031208
to download the complete NAM-ACCF study, or visit http://www.nam.org/hidden/pdf/climatechange/illinois.pdf
to download an Illinois-specific analysis.
IMA member companies understand the importance of protecting the environment and are dedicated to greater environmental sustainability. Unfortunately, manufacturers cannot solve the climate change issues without remaining committed to working with and reaching out to the U.S. Congress to establish reasonable federal climate change policies that allow American manufacturers to remain competitive.
Email monitoring a growing trend
A growing number of U.S. companies have staff who monitor outbound email, according to a recent survey by Forrester Research for email security company Proofpoint Inc. As reported by
CourierPostOnline.com, more than 40 percent of U.S. companies with more than 20,000 employees are screening online activity.
Director of market development for Proofpoint Keith Crosley said companies should make sure their employees are aware that they are being monitored, and employees should make sure they understand company policy regarding this issue.
Any online activity that is not work-related, such as online shopping, planning a party or chatting with friends on social networking sites, can be the basis for disciplinary measures, even termination.
"Making people aware is the best way to enforce security policies," said Crosley.
The most common offense of the emails that were found to have violated company policy included obscene or potentially offensive content, and the next common was leaks of confidential information and personal data, according to the online survey.
Companies are concerned about making sure email is not used to leak confidential internal memos, company trade secrets or other intellectual property.
According to a study by the American Management Association and the ePolicy Institute, the number of employers who monitor the numbers called and time spent on the phone by employees has risen from nine percent in 2001 to 51 percent in 2008.
The Proofpoint survey also reported than more than one in three companies investigated a suspected leak of confidential information through email in the last 12 months, and that more than one in four companies have fired an employee for violating their email policies in the last 12 months.
But the legality of monitoring company emails has been questioned by some. According to Mike Spykerman, CEO of Red Earth Software
(redearthsoftware.com), monitoring is legal if the company has implemented a written email policy in which employees are warned that their emails may be monitored and that they cannot expect privacy. However, some report that only 60 percent of employers who monitor emails have an adequate written policy in place.
Update your IMA membership records . . .
Here at the IMA, we strive to keep our members informed. Are the right people in your company receiving the right publications? Please let us know specifically who in your company should receive the following publications:
- Executive Memo
- Human Resources Memo
- Tax Policy Memo
- Healthcare Memo
- Springfield Highlights
- The Illinois Manufacturer magazine
Send the email addresses of the people and the publication(s) they should be receiving to Katie Carroll at
kcarroll@ima-net.org.
Stay informed and up-to-date!
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
June 24, 2008
Illinois Higher Education Summit
Chicago Cultural Center, 78 E. Washington St.,
5th Floor, Chicago, 9:00 AM3:00 PM
Join top Illinois leaders, including former Illinois Governor Jim Edgar and IMA Chairman Ronald Bullock as they discuss the state of the state . . . major trends and issues facing the state of Illinois and how higher education will be affected. Lunch is included. Sponsored by the University of Illinois. FREE registration required. Visit
http://www.igpa.uillinois.edu/events/registration.asp?t=4
to register
June 27, 2008
MPAC Golf Outing
Willow Crest Golf Course at Oak Brook Hills Marriott, Oak Brook. Call 630-368-5300, ext. 2109 to register.
Failure Mode and Effects Analysis (FMEA)
July 14, 2008 Decatur Conference Center & Hotel, US Hwy 36, Decatur
July 15, 2008 DePaul University, 150 W. Warrenville Rd., Naperville
Maximize the benefits of performing FMEA activities, eliminate or minimize effects of potential failures, gain ideas for other applications and learn about risk evaluation and management.
July 17, 2008
Behavioral Interviewing Skills
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
NOTE: Registration is limited to 16. Participants leave with the interviewing skills to successfully select the best staff based on competencies and ensuring legal compliance.
Kanban/Pull System/Inventory Reduction
July 28, 2008 Decatur Conference Center & Hotel, US Hwy 36, Decatur
July 29, 2008 DePaul University,
150 W. Warrenville Rd., Naperville
A key component of most Lean Manufacturing strategies, this one-day Kanban workshop incorporates basic skills necessary to participate in Kanban implementation. Kanban automates manufactured and purchased parts inventory cycles to reduce unwanted inventory and create waste-free processes.
July 29, 2008
NFPA 70E: Standard for Electrical Safety in the Workplace, Decatur Conference Center & Hotel, US Hwy 36, Decatur
This class is for individuals that work on or near electrical hazards and is a must for maintenance personnel, electricians, engineers, safety professionals, supervisors, contractors, service personnel and vendors entering NFPA 70E compliant facilities.
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