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BRIEFLY...
U.S. starts trade talks with South Korea
U.S. officials hope trade talks that began recently with South Korea will produce agreement by year's end. Washington D.C. based business groups, along with the South Korea's ambassador to the U.S., celebrated the launching of negotiations with a Capitol Hill reception. However, American and Korean labor activists, worrying that the deal won't protect worker rights, plan protests. South Korean diplomats, who already fear lower trade barriers will hurt local rice farmers, fret that demonstrations may mar the talks.
Job growth disappoints . . . again
Job growth decelerated again last month. In the June 2, 2006 Jobs Picture, Economic Policy Institute (EPI) senior economist Jared Bernstein's analysis suggests that the slowdown, coupled with a decline in weekly hours and total hours worked, points toward a possible downward shift in job creation in an economy now faced with higher interest rates, less stimulus from the housing sector, and higher energy prices.
Source: Economic Policy Institute
Coming later this month. . .
2006 IMA Compensation Survey
Everyone who submits their survey on-line by June 30, 2006, will be entered in
drawings for giveaways. Register at http://compsurvey.ima-net.org now to receive automatic notification when the survey is available for you to complete.
Origins of Flag Day – June 14
The early history of the U.S. flag and Flag Day is a matter of debate. Both President Wilson, in 1916, and President Coolidge, in 1927, issued proclamations asking for June 14 to be observed as the National Flag Day. But it wasn't until August 3, 1949, that Congress approved the national observance, and President Harry Truman signed it into law.
Celebrate the first day of Summer — Wednesday, June 21st
Manufacturing training grant applications due July 25
The Employment and Training Administration (ETA), U.S. Department of Labor, recently announced the availability of approximately $10 million in grant funds for new and innovative approaches to meeting the workforce challenges of the advanced manufacturing industry under the President's High Growth Job Training Initiative. ETA defines "advanced manufacturing" as the use of technology or other productivity-enhancing business processes in the manufacturing enterprise and/ or value-added supply chain. These advanced manufacturing technologies and processes may be used in a variety of industry sectors.
The President's High Growth Job Training Initiative (HGJTI) is a strategic effort to prepare workers for new and increasing job opportunities in high-growth, high-demand, and economically vital industries and sectors of the American economy. Through the initiative, ETA identifies high-growth, high-demand industries, evaluates their skill needs, and funds local and national partnership-based demonstration projects that: (a) address workforce challenges identified by employers; and (b) prepare workers for good jobs with career pathways in these rapidly expanding or transforming industries. The products, models, and effective approaches that result from HGJTI investments will be broadly disseminated to employers, education and training providers, and the workforce system to build their capacity to respond to employers' workforce needs.
Grant funds awarded under this Solicitation for Grant Applications (SGA) should be used to develop and implement innovative and industry-driven training solutions that address the advanced manufacturing industry's critical workforce challenges. Each solution must take place in the context of a strategic partnership between the workforce investment system, business and industry representatives, and education and training providers such as community colleges. The projects selected for funding under this SGA are intended to complement and enhance existing ETA investments for the advanced manufacturing industry available on ETA's Web site at: http://www.doleta.gov/BRG/Indprof/Manufacturing.cfm.
Applicants may be public, private for-profit, and private non-profit organizations. It is anticipated that individual awards will fall within the range of $750,000 to $1.5 million. ETA's deadline to submit applications is July 25.
Price Hedging – A critical component of a diversified natural gas purchasing plan
A recent poll conducted by the Procurement Strategy Council illustrates the unnerving effect increasingly volatile natural gas prices are having on budget and cost management. According to the research, procurement managers are constantly challenged to correctly anticipate and manage fluctuations in commodity price in order to prevent any revenue losses. "We are by no means trying to be an investment or profit center," says one energy manager, "All we would like to do is smooth out the commodity price curve and remove peaks or troughs that occur throughout the year."
So, how do you know what to do and when to act? Since it is nearly impossible to correctly 'time the market' on a continual basis, a diversified portfolio is the recommended strategy to help mitigate price spikes and flatten the price curve. One key component of a strategic plan that looks forward and takes action based on market conditions and your business requirements, instead of short-term "lowest price" consideration, is price hedging.
There are several methods to developing a fixed price for specific volumes of natural gas for specific future months. This fixed price can be established utilizing a traditional, single point-in-time transaction where customers 'time the market' themselves. This type of method can be spontaneous, or pre-planned as when customers select a price target and then have their supplier watch for the market to hit that target. Of course, the results of these approaches can vary dramatically. A more recommended strategy is to establish a fixed price over time using multiple transactions and a systematic, target-based approach. This type of method saves time, because purchases are made automatically, and eliminates guess work by providing an objective, disciplined, 'take the emotions out of it' approach to locking in a portion of your annual load. Combining this approach with monthly volume (dollar) cost averaging has helped mitigate volatility for more than eleven (11) years and it has outperformed the market by 26 percent during the past five winters.
To learn more about how you can develop a price hedging strategy that best fits your 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. And don't miss the upcoming IMA energy seminar "Managing Your Energy Spend" June 21 in Arlington Heights or the live webinar on June 22 for natural gas and electricity cost market outlooks and management strategies. Register now at http://www.newenergy.com/IMA or call 630-368-5300 x2109.
Constellation NewEnergy, the IMA Energy Partner, is North America's #1 competitive wholesale & retail supplier serving nearly 300 bcf of natural gas and 15,000 MW of peak load. Visit http://www.newenergy.com for additional information.
Tap into Trade Adjustment Assistance Center
Trade Adjustment Assistance for Firms (TAA) is a program sponsored by the U.S. Department of Commerce and designed for manufacturers that have lost sales, employees, and customers due to foreign competition. Assistance comes in the form of cost shared projects to improve the firm's competitive position. The program dates back to the 1974 Trade Act.
This unique, useful source of manufacturing assistance offers a 50/50 cost sharing of projects aimed at enhancing American manufacturers' ability to compete within the global market. Eligible firms can receive up to $150,000 in project assistance with a maximum TAA cost share of $75,000. The amount the program can cost share is dependent upon the demand on program, funding level and company size and sales. Funds are applied toward the cost of consultants, engineers, or other outside professional service providers a firm chooses to implement projects.
Some examples of management consulting engagements cost-shared through the Trade Adjustment Assistance Program are:
- ISO/QS 9000 Preparation & Registration
- Quality Assurance
- Product Development, Design & Testing
- Product Certification (CE Mark, UL, etc.)
- Operations Analysis
- Manufacturing Technology Review
- Productivity Improvement
- Process Engineering
- Production Planning, Scheduling & Control
- Inventory Management
- Statistical Process Control
- Work Methods & Standards
- Facility & Equipment Review, Selection & Layout
- Cellular Manufacturing Design & Implementation
- CAD/CAM Selection & Implementation
- Material Handling Methods
Interested firms should contact their local Trade Adjustment Assistance Center (TAAC) to get started. Applied Strategies International LTD (ASI) is the TAAC for Illinois, Iowa, Minnesota and Wisconsin. ASI has administered the TAA Program in the Midwest Region for over 23 years. For additional program information, visit http://www.taacenters.org.
MAPI analysis: Sector continues strong growth pattern
According to Cliff Waldman, Economist for the Manufacturers Alliance/ MAPI, regarding the April industrial production report:
"Shaking off the impact of escalating oil and commodities prices, the manufacturing sector continued its remarkably strong growth pattern of the past two quarters to log a solid 0.7 percent gain in April."
"Diffusion indices show that industrial growth has become increasingly broad-based during the past 12 months. In April, strong gains were logged in a host of industries, most notably by machinery producers, with the output of computer and electronics products registering a 19 percent year-over-year gain and electrical equipment production showing a 12 percent year-over-year gain. Strong global growth and moderately strong capital spending has allowed for a solid manufacturing expansion in the face of rising input prices. While rising interest rates, a slowing housing market, and the growing price and supply difficulties for a number of raw materials will likely slow factory growth in the latter part of 2006 and 2007, the manufacturing sector looks to be on a steady course for at least the next few years," Waldman concluded.
DATES OF NOTE:
More events may be found at http://www.ima-net.org/calendar.cfm
June 21, 2006
Demystifying SOA: Making Business Sense for Manufacturers
Sutton Place Hotel, 21 E. Bellevue Place, Chicago - 8:30-11:30 am
Free Executive Briefing for manufacturers by EPICOR. Learn how SOA can make your operation agile and flexible so it will thrive in today's demanding environment. Call 800-997-7528. or register at:
solutions.epicor.com/soa.
June 21, 2006
Managing Your Energy Spend in Volatile Markets
Sheraton Chicago Northwest
3400 W. Euclid Ave., Arlington Heights - 7:30-10:00 am
Join other IMA members for this exclusive seminar on developing strategies to control your electricity and natural gas costs. With Illinois transitioning to a fully open and competitive electricity market and NYMEX natural gas futures declining 50 percent over the last five months, many Illinois businesses are taking this opportunity to secure strategic contracts now. Can't make it on June 21? Join us for a live webinar on June 22. Register now at www.newenergy.com/IMA. Or, for more information, contact Kimberly McNamara, telephone: 630-368-5300, ext. 2109, email:
kmcnamara@ima-net.org.
June 27, 2006
FREE PANEL and Q&A: Skill Standards, Education, and Manufacturing: Measuring Up to Global Competition - 8:30-10:00 am
Wright College Theater, 4300 N. Narragansett Ave., Chicago
Companies in Chicago and around the world are using skill standards to compete globally and increase profits. Now, you can find out how you can benefit from this new next big thing. Manufacturers, union officials, workers, policy makers, educators, workforce development professionals and students are especially invited to this presentation by the Chicago Manufacturing Renaissance Council. Doors open at 8 am for coffee and Eli's cheesecake. The moderator is Ray Prendergast with the Jane Addams Resource Corporation. Panelists are Jim Wall, Deputy Director, National Institute of Metal Working Skills, Washington, DC; and Chicagoland's Bill Vogel, President, DeCardy Diecasting; Joan Wrenn, President, Hudson Precision Products; and Jerry Benish, Director of Human Resources, Camcraft. RSVP to Matt Hancock at 773-278-5418, ext. 15 or email
mhancock@clcr.org
July 20, 2006
HR Basics Seminar
Hilton Conference Center
Springfield - 9:00 am–12:00 noon
Presenter: Donna Rogers, SPHR, IMA HR Director.
Are you responsible for employee management related tasks at your company? Learn the do's and don'ts among various HR areas of concentration. You will have the opportunity to put your knowledge to the test in a stimulating, yet non-threatening environment. Most importantly, you will leave more confident and ready to meet any HR challenge that might arise in your workplace.
Register now at https://www.ima-net.org/hrb_seminar.cfm. Or, for more information, contact Kimberly McNamara, telephone: 630-368-5300, ext. 2109, email:
kmcnamara@ima-net.org.
September 28, 2006
A Primer on the National Labor Relations
Act and the Labor Relations Board
Northern Illinois University
Naperville - 8:30 am–12:30 pm
Presenter: Jim Spizzo, Vedder Price Kaufman & Kammholz, P.C., Chicago. Our speaker will discuss the reach of the federal law and its application in your workplace. Practical advice and responses to your workplace problems will be a key focus of this interactive seminar.
October 3, 2006
HR Forum–Springfield
(for Central and Southern Counties)
Springfield IMA Office, Conference Room, 220 East Adams Street - 9:30–11:30 a.m.
The HR Forum is designed for networking with other HR professionals in the manufacturing field. Discuss similarities and differences, as well as solutions, among peers. Finally, provide valuable feedback to the IMA regarding HR related member services.
Contact: Donna Rogers, SPHR, IMA HR Director, 800-875-4462, email: drogers@ima-net.org
November 8, 2006
Sales and Use Tax Seminar
Northern Illinois University
Naperville - 8:30 am–12:30 pm
Presenter: Joe Bigane, Senior Tax Partner in the Tax and Financial Services Division of Wolf & Company. This seminar is specific to manufacturers. For more information, contact Kimberly McNamara, telephone: 630-368-5300, ext. 2109, email:
kmcnamara@ima-net.org
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