Download this document in .pdf format
BRIEFLY...
Illinois by the numbers
For May 2006, over-the-year unemployment rates fell in all 12 of the metro areas in Illinois, according to data released late last week by the Illinois Department of Employment Security. The largest unemployment rate declines were in Chicago-Naperville-Joliet (-2.0 points to 4.2 percent), Davenport-Moline-Rock Island (-0.7 point to 3.7 percent) and Rockford (-0.6 point to 5.3 percent). The last time Chicago-Naperville-Joliet saw a 2 percent drop in its unemployment rate was in January 1995. Overall, unemployment in Illinois dropped to 4.6 percent, matching the national rate for the first time in over five years.
Death tax compromise to be considered this week
The U.S. House is expected to vote this week on estate tax legislation that falls short of full repeal. Under the House compromise, estates worth as much as $5-$10 million (for couples) would be exempt from taxation indefinitely.
"IMA has long supported repeal of the estate tax," said Gregory W. Baise,
president and CEO of the Illinois Manufacturers' Association. "While this bill doesn't go as far as we had hoped, it does make meaningful inroads for employers who want to pass on their businesses to their children. We urge Congress to act quickly to approve the legislation." The Senate has blocked previous efforts to fully repeal the estate tax and passage is anything but certain. Republicans probably have the votes in the House, but Democrats plan to offer a minimum-wage increase the first since 1997 as their alternative to the estate tax bill.
Survey: Employers not prepared for Avian Flu
American businesses are ill-prepared for the potentially devastating effects of a global avian flu pandemic, according to a new survey by Thompson Publishing Group. The survey found that 76 percent of the 468 respondents have no contingency plan for an avian flu outbreak, even though 47 percent said senior management considers the issue important.
"Moderate estimates by the World Health Organization (WHO) indicate that up to 25 percent of the workforce could be lost in a pandemic," says John Ortman, Thompson's editor in chief. "This should spur companies to protect against an outbreak." However, of the 63 percent of the survey respondents who reported having a business continuity plan, only about one-quarter of them have contingencies for a possible avian flu outbreak.
What are employers worried about? Human resources-related issues (72 percent) and remote work agreements (48 percent) are the areas of greatest concern in developing a plan. Other concerns include IT/data processing (41 percent) and coordination with state and local governments (35 percent). IT issues may be less important, according to Ortman, because IT contingency plans are already in place in most large and medium-sized businesses and in the public sector.
Of the 225 people known to be infected with the virus as of June 6, 2006, 128 have died, according to the WHO. Although the virus has mostly spread to humans through contact with infected birds, the possibility of the virus mutating and transmitting human-to-human has health authorities concerned. The World Bank believes that the economic consequences of a pandemic will be severe, costing the global community an estimated $800 billion a year. The U.S. cost alone could top $625 billion.
"For employers, this means a contingency plan could be essential to their survival," Ortman says. "Developing programs to cross-train employees, creating telecommuting policies and revising sick leave allowances are recommended ways for an employer to prepare."
To view entire survey results, visit http://www.thompson.com/public/extras/results.jsp.
Thompson Publishing Group, a Washington, D.C.-based information services provider, has been a leading source of analysis and guidance for business and government executives since 1972.
Durable goods orders off slightly in May
New orders for manufactured durable goods in May decreased $0.6 billion or 0.3 percent to $208.7 billion, the U.S. Census Bureau announced late last week. This is the second consecutive monthly decrease and follows a 4.7 percent April decrease.
Shipments of manufactured durable goods in May, up three of the last four months, increased $5.4 billion or 2.6 percent to $211.9 billion. This is the highest level since the series was first stated on a North American Industrial Classification System (NAICS) basis in 1992 and followed a 1.2 percent April decrease.
Unfilled orders for manufactured durable goods in May, up twelve of the last thirteen months, again increased $3.7 billion or 0.6 percent to $611.3 billion, the highest level since the series began, and followed a 1.5 percent April increase.
Inventories of manufactured durable goods in May, up four of the last five months, increased $1.0 billion or 0.4 percent to $279.7 billion. This followed a 1.1 percent April increase.
Gallup study says Dilbert is right
A national employee survey confirms that uncomfortable work environments do make for disgruntled employees
The less satisfied employees are with the physical setting of their work environment such as the acoustics, ventilation, or visual surroundings the more likely they are to be dissatisfied with their jobs, as most people would attest. And there are plenty of examples in popular culture that reinforce this idea. From comic strips such as "Dilbert" to movies like Office Space, cramped or unpleasant work environments are often presented in a humorous and satirical light.
The Gallup Management Journal recently surveyed U.S. employees to discover the truth behind the humor. While Gallup's employee engagement research has always shown that managers have the greatest influence on worker engagement, Gallup researchers also wanted to examine aspects of the physical work environment to determine which of them presented the biggest barriers to employee engagement and performance.
The researchers studied employee responses to see which factors differed most strongly among engaged employees (31 percent of respondents) and those who were not engaged (52 percent) or actively disengaged (17 percent). Gallup research indicates that engaged employees are more productive, profitable, safer, create stronger customer relationships, and stay longer with their company than less-engaged employees.
The view matters
In the comic strip "Dilbert," hardly a week goes by without a jab at the downside of working in today's modern office, with its open-space floor plans and much-maligned cubicles. But the GMJ survey data suggest that the problem might not be the type of workspace that employees are given it might be that employees aren't allowed to make that space their own. When Gallup asked employees if they are able to personalize their workspace to make it feel like their own, employees who answered affirmatively to this question were 55 percent more likely to be engaged.
But workers want more than just a personal space; they want to be able to see beyond that space to the outdoors. In one memorable scene in the movie Office Space, the main character, Peter Gibbons, reacts to his company's "cubicle farm" environment by toppling a partition to obtain a better view. When the GMJ asked survey respondents if they can see outdoors from their workspace, 28 percent said they cannot. These employees are 86 percent more likely to be actively disengaged than those who are able to view the outside world from their workspace.
Too noisy? Too hot or too cold?
Not surprisingly, the GMJ found that feeling comfortable at work contributes substantially to worker engagement. When asked the question "Is the temperature in your work environment comfortable to you?" nearly one-quarter of all respondents (23 percent) answered no. Those employees are only half as likely to be engaged as employees who work in environments with comfortable temperatures. There is good news for managers who are trying to lead under these conditions, however. Among those employees who stated that their opinion counts at work, the percentage of employees who answer no to the temperature question drops to 13 percent. So, managers who pay attention to their employees' concerns will have an advantage.
Noise levels also had a significant impact on worker engagement. When asked, one in three employees indicated that noise in their workplace frequently disturbs their work. These employees like those who feel the temperature in their workplace is uncomfortable are about half as likely to be engaged when compared to respondents whose work environment is free of disturbing noises. For managers of employees who must cope with noisy working environments, it might be helpful to listen to what employees have to say. Among workers who said their opinions count, the rate of those who said that noise disturbs their work dropped to one in five.
What about employees who have it good whose workplaces are free from disturbing noises and uncomfortable temperatures? These workers are three times more likely to be engaged than those whose work environments are both noisy and uncomfortable. Clearly, the presence of both of these factors poses a greater threat to employee engagement than does either factor on its own.
The findings of the GMJ U.S. employee engagement survey show a strong relationship between workplace engagement and environmental factors such as noise, temperature, and personalized workspaces. Employees working in a comfortable environment are much more likely to be engaged and to make a positive contribution to the organization's financial success. The characters in "Dilbert" and Office Space clearly have their fair share of kindred spirits.
Results of these surveys are based on nationally representative samples of about 1,000 employed adults aged 18 and older. Interviews were conducted by The Gallup Organization by telephone quarterly from October 2000-October 2002, then semi-annually thereafter.
The Gallup Management Journal is an online journal published monthly by The Gallup Organization. For more information, go to http://gmj.gallup.com.
ATTENTION IMA MEMBERS:
The Lincoln Foundation for Performance Excellence wants your opinion . . .
The Foundation, a non-profit organization backed by both private and public funding, helps Illinois organizations continuously improve their performance by encouraging, developing and highlighting excellence among all five sectors of the economy: industry, service, health care, education, and government.
Please visit: http://www.zoomerang.com/survey.zgi?p=WEB225F4PCC5NB . . . and complete the survey. It takes less than five minutes and will provide the Foundation with valuable information to help them reach their goals.
Complete IMA's annual Compensation Survey now available online!
The IMA's annual Compensation Survey is one of our most popular services for members. It is the only survey that is specific to Illinois manufacturers. The survey collects data on 177 manufacturing-related jobs in 10 job families. The Compensation Report, due out in August, will summarize the data you supply. This is a valuable tool for your company when you review budgets, set salaries and award bonuses.
Participate by visiting http://compsurvey.ima-net.org and complete the survey. Use your IMA member number as the ID.
IMA members who complete the 2006 Compensation Survey will have free online access to the Report. Additionally, member participants will be entitled to purchase the printed Report at a discounted price.
The more participants who complete the Survey, the more accurate and valuable the data will be. Both IMA members and non-members may participate. Everyone who submits their survey online by JULY 15, 2006, will be entered into a drawing for one of the following giveaways:
- 1 free IMA-sponsored Webinar to be used in 2006 or 2007;
- 3 drawings for print copies of the 2006 IMA Compensation Survey Report;
- 5 drawings for print copies of the IMA's Benefits Survey Report; and
- 5 drawings for Saturn World Time Clock/Calculators with IMA logo imprint.
When completed, the report will be available for:
Participating IMA members:
ONLINE FREE
PRINT $65 (same as last year)
BOTH $65 (print cost)
Non-participating IMA members:
ONLINE $125 (same as last year)
PRINT $175 (same as last year)
BOTH $295
Participating non-members:
ONLINE $125
PRINT $200
BOTH $320
Non-participating non-members:
NOT AVAILABLE
Complete the survey at http://compsurvey.ima-net.org
today! Contact Janie Stanley at 217-522-1240, ext. 3020, or email: jstanley@ima-net.org if you have questions or need assistance.
ThomasNet online provides valuable resources and information for industrial suppliers
ThomasNet recently launched an enhanced online library of marketing and additional information to help industrial buyers and sellers compete more effectively. The newly updated pressroom, www.thomasnet.com/pressroom, now provides visitors with free useful information, including easy access to whitepapers, industrial market trends and ThomasNet news. Featured in the pressroom is the whitepaper, "Industrial Marketing Online: Getting Industrial Buyers and Sellers on the Same Page," highlighting the recent ThomasNet-Google study that details the online behavior of industrial buyers. In addition, the whitepaper focuses on the existing buyer-seller disconnect and provides helpful online tips for industrial suppliers.
"We've added a tremendous amount of information to the pressroom that can help industrial suppliers get the most from their Internet marketing dollars," according to Linda Rigano, director of strategic alliances and business development, Thomas Industrial Network.
The enhanced ThomasNet pressroom offerings provide information that includes:
- "Generating Qualified Traffic on the Web" focuses on website traffic and what it takes to direct quality traffic to company websites;
- "Is Your Website Winning Your Business? Be Sure Your Website Has What It Takes to Sell to Industrial Buyers" highlights the do's and don'ts of creating an effective industrial website; and
- "Keeping Track of Your Website Visitors" explains the importance of website tracking and what online metrics can tell a business about online marketing.
ThomasNet's pressroom also features Industrial Market Trends, a comprehensive, daily industrial blog with a bi-weekly newsletter, featuring the latest industrial developments, best practices, market trends and opinions of ThomasNet's editors and readers. Industrial Market Trends is available through a free online subscription.
ThomasNet helps industrial sellers target their marketing investment to reach the most qualified industrial buyers online and convert them into customers. ThomasNet.com is where many buyers and engineers from Fortune 500 companies, the government, the military and more, go to find suppliers. Drawing from the company's experience in the industrial market, ThomasNet has helped thousands of clients create websites that incorporate online catalogs, CAD drawings and e-commerce capabilities to increase sales from new and existing customers.
For industrial buyers, www.ThomasNet.com is where they go to find the exact product, service or supplier they need, when they're ready to buy. ThomasNet.com gives buyers immediate access to the information they need to make a purchasing or specifying decision, including detailed product or service information, catalogs, CAD drawings, and more.
Free seminar: Electricity choice options for Ameren customers
Register online to reserve your spot . . . http://www.newenergy.com/ima
The Illinois electricity market will soon be fully open and competitive. Learn first hand from industry experts how these changes will affect your business.
Attend one of three Ameren PowerSeries Seminars hosted by Constellation New Energy and the Illinois Manufacturers' Association at a time and location convenient to you. Register online at the website address listed above.
- Learn about the upcoming electricity auction and what it means to central and downstate businesses;
- Design a strategic electricity plan for your business to mitigate the effect of volatile energy prices;
- Understand Illinois electricity price drivers.
Featured Speaker: Phil O'Connor, PhD, Vice President, Constellation NewEnergy (former Illinois Commerce Commission Chairman)
Choose from three dates and locations:
Tuesday, July 18: Decatur, Illinois
Wednesday, July 19: Quincy, Illinois
Tuesday, July 25: Collinsville, Illinois
Go to http://www.newenergy.com/ima
for more information, or call 217-522-1240, ext. 3020.
07 Ford and Mercury vehicles certified for new Energy Tax Credit
The IRS has acknowledged the certification by Ford Motor Company that several of its 2007 vehicles qualify for the Alternative Motor Vehicle Credit created by the Energy Policy Act of 2005. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006, and could be as much as $3,400 for those who purchase the most fuel-efficient vehicles.
The hybrid vehicle certifications recently acknowledged by the IRS and their credit amounts are:
Ford Escape Front WD Hybrid
Model Year 2007 $2,600
Ford Escape 4 WD Hybrid
Model Year 2007 $1,950
Mercury Mariner 4 WD Hybrid
Model Year 2007 $1,950
Starting in 2006, this tax credit replaces the tax deduction of $2,000, which was previously allowed for taxpayers who purchased a new hybrid vehicle before December 31, 2005, for the clean-burning fuel deduction. The tax credit requires a different certification. Many currently available hybrid vehicles may qualify for this new tax credit.
Consumers seeking the credit may want to buy early since the full credit is only available for a limited time. Taxpayers may claim the full amount of the allowable credit up to the end of the first calendar quarter after the quarter in which the manufacturer records its sale of the 60,000th vehicle. For the second and third calendar quarters after the quarter in which the 60,000th vehicle is sold, taxpayers may claim 50 percent of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25 percent of the credit. No credit is allowed after the fifth quarter.
Deficit with free trade partners shrinks for fourth year in a row
In a report released June 26th, the National Association of Manufacturers (NAM) said that the growth in the U.S. manufactured goods trade deficit has slowed sharply so far in 2006. "This report shows that the overall deficit grew just 5 percent in the first four months of this year, compared to a 13 percent average growth during the past four years," said Frank Vargo, NAM's vice president of international economic affairs.
"The U.S. deficit with NAFTA and other free trade partners has shrunk by one third from four years ago," he continued. "Over that same period, the deficit with countries without free trade agreements (FTAs) grew by two-thirds. If the deficit with those counties had behaved like the deficit with our FTA partners, our overall manufacturers deficit today would be less than half of what it actually is.
The report, entitled "U.S. Manufactured Goods Trade in 2006: First Report" is available at: http://www.nam.org/2006trade.
DATES OF NOTE:
More events may be found at http://www.ima-net.org/calendar.cfm
July 20, 2006 IMA Event:
HR Basics Seminar
Hilton Conference Center
Springfield 9:00 am12:00 noon
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. Presented by IMA's Director of Human Resources Donna Rogers, SPHR.
Contact: Kimberly McNamara,
telephone: 630-368-5300, ext. 2109
email: kmcnamara@ima-net.org
August 2, 2006
Industrial Waste Management Grant Program
Executive Conference Room
1225 W. 22nd St., Ste. 104
Oak Brook 8:00 am4:30 pm
Save up to $15,000 on waste disposal costs by attending this one-day seminar. Learn how to be part of the Industrial Waste Management Program, jointly sponsored by IMA and the Illinois Department of Commerce and Economic Opportunity. $75 per person . . . registration is limited to 30 individuals. Online registration is available at https://www.ima-net.org/iwm_seminar.cfm.
Contact: Judy Parker
Phone: 217-522-1240, ext 3036
Email: jparker@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 am12:30 pm
Presenter: Jim Spizzo, Vedder Price Kaufman & Kammholz, PC, 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.
Contact Kimberly McNamara
Phone: 630-368-5300, ext. 2109
email: kmcnamara@ima-net.org
October 3, 2006
HR ForumSpringfield (for Central and Southern Counties)
Springfield IMA Office, Conference Room, 220 East Adams Street 9:3011:30 am
Presenter: Donna Rogers, SPHR. The HR Forum is designed for networking with other HR professionals in the manufacturing field. Discuss similarities and differences among peers as well as solutions. Finally, provide valuable feedback to the facilitator regarding HR related member services.
Contact: Donna Rogers
Phone: 800-875-4462, ext. 3007
Email: drogers@ima-net.org
Download this document in .pdf format
Other Executive Memos available online.
Remember, you must have the Adobe Acrobat
Reader software in order to view .pdf documents. Acrobat Reader
can be downloaded
for free from the Adobe Web site.
