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BRIEFLY...
Energy prices may see some relief
Crude-oil futures fell last week and appeared ready to log a third straight session of decline after reports of positive comments by Iran's chief nuclear negotiator about the incentive package the West is offering Tehran in an effort to stop it from enriching uranium. The Iranians reportedly will meet today (July 11) with the European Union policy chief in advance of the G-8 summit scheduled for July 15.
"Energy costs are among the greatest overhead considerations for manufacturing," said Gregory W. Baise, president and CEO of the Illinois Manufacturers' Association. "Any
relief from high fuel prices is welcome news indeed."
Crude for August delivery was trading down on the New York Mercantile Exchange after losing steam in the past two trading sessions. The losses come on the heels of skyrocketing advances in crude prices during the past several weeks.
MAPI analysis on ISM Index: Modest pull-back in manufacturing growth
"The modest pull-back in manufacturing growth is in line with the expectation of more moderate growth after a period of above trend performance," said Thomas J. Duesterberg, President and Chief Executive Officer of the Manufacturers Alliance/MAPI. "The Institute for Supply Management (ISM) report provides evidence demand is slowing, as rapid growth in input prices is starting to abate, inventories are being drawn down, and employment growth is stalling after a year of steady expansion. The slightly faster pace of new orders in June is evidence that growth has merely moderated from its previously fast pace."
By the numbers: Manufacturing orders and shipments up in May
The federal Census Bureau released its May report on manufacturing. New orders for manufactured goods increased 0.7 percent, to $399.9 billion. Shipments rose 2.2 percent, to $403.1 billion. Unfilled orders increased 0.6 percent, to $611.3 billion. And inventories declined to $462.3 billion. The inventories-to-shipments ratio was down, at 1.15.
Baise talks immigration with President Bush
IMA's president and CEO Gregory W. Baise was among seven Illinois business leaders to dine with President George W. Bush last week in Chicago. The dinner, hosted by Mayor Richard M. Daley, celebrated the President's 60th birthday. The event was held at the Chicago Firehouse Restaurant in the South Loop.
"I was very pleased that John Rowe from Exelon and Gerald Shaheen from Caterpillar, both IMA member companies, were invited to join this remarkable evening with the president," said Baise. "The president invited us to share our thoughts on a wide range of topics in a very relaxed atmosphere."
Baise discussed pending federal immigration reform legislation and urged the president to help assure that congress passes legislation that is fair to employers and excludes provisions in earlier versions that would mandate an employer to pay undocumented workers prevailing wage for their services.
"We believe any final bill should contain a hold-harmless provision for an employer who erroneously employs an undocumented worker despite the employer's best efforts to comply with the law," Baise said. "To help assure that outcome, employers should be given complete authority to conduct required background checks on workers before an offer of employment is made."
Baise said that as the only statewide business organization to be invited to spend time with the nation's chief executive, it was a distinct privilege for him to engage the president on issues of great importance to Illinois' manufacturing community.
Coalition report: Illinois loses ground in job growth
The Illinois Coalition for Jobs, Growth and Prosperity released its report on the Illinois employment picture for May 2006. For the month, the Coalition issued a negative rating citing the state's reversing economy. For several months, the state had been gaining jobs, but in May lost ground.
After the big job gains in April, Illinois lost 3800 jobs at a negative 0.06 percent rate in May. This is the first monthly job loss since January 2006 when the state lost 17,900 jobs. Through April the state had rebounded adding 43,200 jobs.
Nationally, the U.S. experienced the weakest monthly rate since October 2005. The number of new jobs grew at just 0.06 percent over April. Economists had expected to see 170,000 additional jobs for the month but actual growth topped out at 75,000.
The Coalition noted that employment losses were the standard across the mid-west losing a total of 21,500 jobs over the month. In recent months Midwest job growth had been pegged largely to gains in Illinois. Illinois had accounted for 61 percent of growth during that time.
Looking in detail, none of the ten employment sectors had monthly gains over 1000. Only Education and Health Services, Construction and Government had gains approaching triple digits. Manufacturing continued to follow its five-month loss pattern shrinking another 2900 jobs, leading all other sectors in the number of losses.
President visits Aurora manufacturer
Flanked by U.S. House Speaker Dennis Hastert, President George W. Bush last Friday visited Cabot Microelectronics in Aurora. As the first sitting president to visit Aurora since Teddy Roosevelt in 1903, Bush used the global headquarters of Cabot as the backdrop for praising congress for passing his "American Competitiveness Initiative," a $136 billion, 10-year spending program meant to enhance research and development and math and science education.
The President's Initiative seeks four outcomes:
- Targeted investment of workforce development resources that support private and public sector partnerships to ensure development of workers' skills;
- Increased integration of community and technical college curricula with specific expressed needs of local employers;
- Increased opportunities for employers to use apprenticeship training programs to give on-the-job training to create a steady flow of skilled workers; and
- Provide workers with a clear career path to opportunities in high growth occupations.
The President's Initiative engages business, education and the workforce system to work together to develop solutions to the workforce challenges facing high growth industries. In May, Labor Secretary Elaine Chao announced more than $75 million in grants to address the needs of advanced manufacturing alone.
Cabot is the world leader in the development and supply of high-performance polishing "slurries," which are used in the production of microchips found in cell phones and computers. The company employs 430 skilled workers in Aurora, many of whom are recruited from the nearby Illinois Math and Science Academy.
Options for Ameren customers: Free seminar
To reserve your spot, register online at . . .
http://www.newenergy.com/portal/site/menuitem.4e7a7995c1f78f31c9595410da6176a0?title=imajuly
Attend one of three Ameren PowerSeries Seminars hosted by Constellation NewEnergy 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
Wednesday, July 19: Quincy
Tuesday, July 25: Collinsville
Go to http://www.newenergy.com/ima for more information, or call 217-522-1240, ext. 3020.
Transitional-duty can cut workers' compensation costs
A number of U.S. companies are employing an alternative plan to help cut workers compensation costs. Using a "transitional-duty" program allows injured workers to return to work more quickly for their own physical and mental well-being, and to benefit the company's fiscal health.
Working with doctors, a company will modify the injured workers existing job. However in cases where the injury is so severe that modifying the existing work is simply not feasible, a company can try to match the worker with local nonprofit in need of short-term staff.
Lending out workers to local nonprofits, with the approval of physicians, can reduce lost workdays by as much as 30 percent. In addition, medical costs can drop anywhere from 32 to 35 percent and recovery time can be reduced by more than 25 percent.
Experts say creative transitional-duty assignments reinforce the habit of going to work every day, a trait that can be lost by workers injured on the job. Studies suggest the quicker a worker returns to work, the sooner that worker heals.
Intracorp, the Washington Business Group on Health and the Journal of Workers Compensation recently released a report that says the likelihood that workers will return to the job decreases each day, from 90 percent at four weeks to just two percent after 52 weeks. The same study found that employers could save up to $10 for every $1 spent on a return-to-work program. Employers pay a reduced salary to the worker and save on the difference between a workers compensation benefit payment and the wages paid in the transitional-duty pay.
For more information on transitional-duty ideas, contact Donna Rogers at 217-522-1240, ext. 3007.
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 am–12:00 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
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, 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
email: drogers@ima-net.org
NOTE DATE CHANGE:
August 2, 2006 – IMA's Industrial Waste Management Grant Program
Oak Brook, Executive Conference Room
1225 W. 22nd St., Ste. 104
8:30 am–12:30 pm
Save up to $15,000 on waste disposal costs by attending this one-day
seminar. 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 limited to 30 people)
8:00am–4:30pm. Register at:
https://www.ima-net.org/iwm_seminar.cfm
Contact: Judy Parker
Phone: 217-522-1240, Ext 3036
More Information:
email: jparker@ima-net.org
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