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BRIEFLY:
USCIS reaches H-2B cap for first half of FY2009
U.S. Citizenship and Immigration Services (USCIS) announced on July 30 that it has received a sufficient number of petitions to reach the congressionally mandated H-2B cap for the first half of Fiscal Year 2009 (FY2009). USCIS hereby notifies the public that July 29, 2008 was the "final receipt date" for new H-2B worker petitions requesting employment start dates prior to April 1, 2009. The "final receipt date" is the date on which USCIS determines that it has received enough cap-subject petitions to reach the limit of 33,000 H-2B workers for the first half of FY2009.
USCIS will reject petitions for new H-2B workers seeking employment start dates prior to April 1, 2009 that arrive after July 29, 2008.
USCIS will apply a computer-generated random selection process to all petitions which are subject to the cap and were received on July 29, 2008. USCIS will use this process to select the number of petitions needed to meet the cap. USCIS will reject, and return the fee, for all cap-subject petitions not randomly selected.
Petitions for workers who are currently in H-2B status do not count towards the congressionally mandated bi-annual H-2B cap. USCIS will continue to process petitions filed to:
- Extend the stay of a current H-2B worker in the United States;
- Change the terms of employment for current H-2B workers and extend their stay; or
- Allow current H-2B workers to change or add employers and extend their stay.
- More information about the H-2B work program is available at http://www.uscis.gov
or by calling the National Customer Service Center at 800-375-5283.
Rising raw material and energy costs raising concerns among North American industrial manufacturers
Prime Advantage, a buying consortium for midsized industrial manufacturers, has released the findings of its second Group Outlook Survey, revealing the top economic concerns for the second half (H2) of 2008. Raw material and energy costs continue to top the list of cost pressure concerns, but this time they have become an overwhelming worry among North American manufacturers.
The results of the first survey, released in January, revealed that the group's manufacturing members were apprehensive of rising material (43 percent) and energy (17.5 percent) costs. This latest study reveals that 93 percent agree that material costs will be an economic concern for the rest of 2008, with a 67 percent agreement on energy costs following closely behind.
Survey data was collected from 72 senior-level representatives of industrial manufacturing companies, including business owners, vice presidents of procurement and purchasing directors.
"The Prime Advantage Group Outlook Survey has served as a reliable indicator by identifying key economic factors of influence for mid-sized manufacturers throughout North America," said Louise O'Sullivan, president and founder of Prime Advantage. "The survey has shown that Prime Advantage members' perceived concerns in January were on the mark."
The H2 Group Outlook Survey follows as an update to the first survey conducted in January ‘08 when members were asked to predict their expected cost pressures for 2008.
In addition to seeing an overwhelming 93 percent of respondents agree that raw materials (including stainless steel, nickel, copper and other metals and plastics) were a major concern for H2 2008, two-thirds of all manufacturers (up 49.5 percentage points from the first survey) agree that energy costs will be a major concern for the rest of the year.
"Other indicators, such as the Institute for Supply Management's June 2008 Manufacturing ISM Report On Business® reflect that rising commodity prices, combined with a fluctuating Purchasing Managers Index, are putting great pressure on U.S. manufacturers," said O'Sullivan. "The bottom line is that pricing pressures for raw materials and commodities will likely continue to be an obstacle to success for many North American manufacturers."
Unlike the first Group Outlook Survey, inflation is now the third highest concern, with 39 percent in agreement (up 31 percentage points from January). Logistics and supply chain costs followed closely at 38 percent — 21.6 percentage points higher than the first Group Outlook Survey. Healthcare (18 percent), foreign competition (12 percent), overhead (11 percent), and labor (8 percent) were among the other cost pressure concerns identified by survey respondents.
Other expected cost pressures in H1 ‘08 vs. H2 ‘08: healthcare (18 percent), foreign competition (12 percent), overhead (11 percent), and labor (8 percent) were among the other concerns that received greater attention in the latest survey. In the H1 survey, healthcare was cited by just 1.7 percent of respondents, overhead was cited by just 2.8 percent of respondents, foreign competition was cited by just 3.4 percent of respondents, and labor was cited by four percent of respondents.
In addition, 51 percent of respondents have shifted the top sourcing priority to "Identifying Reliable and Cost Efficient Sources for Raw Materials" rather than "Improving Efficiency Measurements."
Contrary to the first Group Outlook Survey, a higher percentage of respondents now expect capital spending to decrease or stay the same as the first half of 2008. Thirty-nine percent of Prime Advantage members expect capital spending to decrease in the next six months and 42 percent expect capital spending to remain unchanged. Previously, Prime Advantage members predicted no change from 2007 (52 percent) or an increase (36 percent) from 2007 in capital spending.
The Prime Advantage Group Outlook Survey also showed confidence for employment opportunities in the second half of 2008. While only 17 percent expect job cuts within the next six months, another 17 percent expect job growth and 66 percent expect to make no changes and keep their current employee base at the same level.
"These results show that U.S. manufacturers are cautiously optimistic about the rest of the year, in spite of current economic concerns," O'Sullivan said.
Founded in 1997, Prime Advantage is a buying consortium for industrial manufacturers with more than 500 members and more than 110 endorsed suppliers. For more information on Prime Advantage, visit the website at
http://www.primeadvantage.com.
IMA Young Leaders to examine managing multi-generational workplace in Galena, Oct. 3-5
The Illinois Manufacturers' Association Young Leaders Council (YLC) has set the theme for its first ever fall conference. "Managing in a Multi-generational Environment" will be the focus of the three-day affair to be held at Eagle Ridge Resort and Conference Center in Galena on October 3-5.
The YLC was created by the IMA Board of Directors earlier this year to help develop industrial leaders for the manufacturing sector in Illinois. The YLC creates opportunities for young professionals to expand their professional growth in preparation for leading their companies and to assume roles as leaders of the Illinois Manufacturers' Association.
The fall event features seminars, presentations, group discussions and challenges and social activities designed to help those less than 45 years of age develop knowledge and networks to help them and their companies in the future.
Among those scheduled to speak are IMA President & CEO Greg Baise and Mark Denzler, Vice President for Government Affairs and Membership. RSM McGladrey Vice President Tom Murphy will keynote a Saturday luncheon and discuss "The Future of Manufacturing" which will highlight McGladrey's recently completed national manufacturing survey.
Examining the challenges of managing in a multi-generational environment will be Suzanne Lane, president of AVANT Consulting, Inc. Lane, who holds JD and MBA degrees, is a nationally recognized expert in strategic business law and organizational development and brings a unique perspective to improving business results by advancing the people and processes required to achieve those results. She specializes in supporting emerging leaders, leadership teams and owner-managed companies and helping companies through organizational change and ownership succession.
Registration for the event is just $249. A block of 30 rooms has been reserved in the main resort building at Eagle Ridge. Reservations and more information can be obtained by visiting
http://www.ima-net.org/ylc08.cfm
or by calling Kimberly McNamara at 800-875-4462, ext. 2109. The YLC encourages spouses to attend its events.
Proactive online energy management
Today's most successful service providers have the ability to continuously innovate and adapt to the fast pace and changing demands of a savvy consumer. Up-to-date and relevant information available at the click of the mouse is often a provider's primary channel of communication with its customers. Within the energy industry specifically, online capabilities are making measurable differences in the way customers buy and consume electricity.
The evolution of energy markets
As the restructuring of electricity markets continues throughout North America, millions of consumers now have the power to choose an energy supplier that best meets their needs. Even though the complexities of today's energy markets can appear daunting at times, suppliers are making great strides in anticipating consumer needs and helping to determine the best purchasing option. Moreover the nature of competitive markets fosters innovation in products and programs, and suppliers therefore continue to deliver a range of energy management tools which can be customized to make the process of energy cost management less complicated and more transparent.
For example, NewEnergy Online is Constellation NewEnergy's answer to a Web-based energy management solution and is available free of charge to all existing customers. Customers can track their energy consumption, view current and past invoices, monitor energy market prices and industry news, adjust consumption, and forecast energy usage and costs with greater accuracy.
Manufacturers make up some of our Nation's most sophisticated energy consumers, and are often among the first to implement new technology or programs to manage costs. Whereas energy spending generally represents a significant portion of a manufacturers' total operating budget, the framework of our online management tool makes proactive energy monitoring and cost reduction a reality. With online management capabilities, manufacturers can easily navigate a facility's energy usage over the course of a day, week, month or year through a private online account. When comprehensive energy consumption and billing history is available on demand, manufacturers not only assume the ability but also the responsibility to detect patterns, price spikes and monitor their overall energy usage.
These features can be taken a step further by personalizing reports and organizing information to track and highlight specific areas of concern. Daily tracking can closely monitor and shed light on the efficiency of a facility's consumption, and even help identify problems in the manufacturing process by quickly narrowing in on equipment malfunctions or assembly line interruptions.
Some manufacturers have discovered that they can dramatically lower their electricity costs just by starting up their machines and equipment at different times. This helps mitigate a facility's peak demand — the highest amount of electricity consumed in a billing interval — which can change the billing structure of an account. This is critical as some capacity charges are determined by a customer's peak demand. Unnecessarily high charges can be avoided by examining billing patterns to check for peak demand spikes caused by simultaneous equipment start ups.
NewEnergy Online also helps customers aggregate costs by grouping meter accounts to take a more holistic view of their total energy consumption. The ability to group meter locations in unlimited combinations allows for sub-account and/or cross-account analysis, thereby helping to identify the most efficient and inefficient operations.
Benefits to the bottom line
NewEnergy Online provides customers with more than just their facility's consumption data. Customers gain easy access to the latest developments in the energy industry with market price postings, regulatory updates and industry news. This information, coupled with a facility's usage patterns comprises the majority of the factors needed to manage energy strategies and consumption. To better assist customers in their monitoring efforts, NewEnergy Online users have the option to set alerts when energy prices reach a designated threshold, making it possible to adjust usage accordingly. Interactive features such as this deliver more control over consumption charges, and enable customers to better estimate monthly bills based on raw usage data and monthly market prices.
With a deeper understanding of energy consumption needs, customers can take advantage of additional tools to reduce or adjust energy consumption and their bottom line. Progressive customers are taking advantage of all the tools available to them to better understand their own energy consumption and make informed choices about their company's energy strategy. Online energy management tools are not simply an important value added service — they represent a way for manufacturers to better manage energy usage and reduce costs.
Author Bruce McLeish is Senior Vice President of Products and Pricing for Constellation NewEnergy, a leading competitive energy supplier for commercial and industrial customers that serves the Illinois manufacturing industry. He can be reached at
bruce.mcleish@constellation.com.
RSM McGladrey Survey: Companies underutilizing globalization strategies; challenged by economic and inflationary conditions
According to the third annual RSM McGladrey Manufacturing and Wholesale Distribution National Survey (MWD) released in July, companies reporting their business conditions as "thriving and growing" declined by nearly 10 percent in the past year. However, business remains good for more than a third of survey participants within the following industry segments: food and allied products, medical devices, industrial equipment, metal fabrication and electronics.
The survey showed 80 percent of respondents are pessimistic about U.S. economic growth prospects, and the percentage of respondents describing their business as "declining" has tripled in the past two years. Building materials, transportation equipment, plastics, and printing and publishing are the industry segments most impacted by the housing crisis, reduction in consumer discretionary spending and high energy costs.
Inflationary pressures are largely to blame for dampened expectations, with 80 percent of companies expecting cost increases exceeding six percent in energy, raw materials, operating labor, freight and benefits. Healthcare costs once again are projected to increase on an average exceeding 10 percent in 2008 — the third year in a row of double-digit increases in healthcare benefit expenses.
However, many respondents still remain optimistic about their company's growth prospects. With the exception of transportation equipment and building materials, more than 60 percent of respondents across all industry segments are optimistic about their company growth in 2008.
"Confidence about company growth may indicate belief that the economy is bottoming and will begin to rebound later this year," says Tom Murphy, RSM McGladrey's executive vice president of manufacturing and wholesale distribution.
Companies with foreign operations are hiring U.S. workers at nearly twice the rate as their domestic-only counterparts. The RSM McGladrey survey suggests the possibility that offshore operations can make U.S. companies more robust — driving need for more U.S. workers — than domestic activity alone. This trend, which runs counter to the common perception that foreign activity eliminates U.S. jobs, is especially pronounced among middle-market companies.
While demand for skilled labor among survey respondents has decreased over the past year, more than 20 percent report a need for skilled workers.
"One in five companies cannot find the skilled workers they need for today's advanced technology manufacturing and wholesale distribution environments," said Karen Kurek, managing director and business line leader of RSM McGladrey's manufacturing and wholesale distribution practice in the Great Lakes region. "As baby boomers retire, demand for labor will certainly increase — irrespective of economic conditions. The industry is challenged with properly training displaced workers and bringing jobs where workers are located."
The survey also found surprising strategic reactions to declining business conditions. Seventy-five percent of respondents plan to build their market share through new customers. New product line developments were reported by more than half the responding companies, and 46 percent reported innovations in their processes.
These strategies require increased investment instead of the retrenchment more common in declining business climates. Yet, survey respondents continue to overlook key opportunities to improve their financial performance. As in the previous two survey years, fewer than half of the respondents were taking full advantage of a variety of tax planning opportunities widely available to manufacturers and wholesale distributors.
"Tax incentives and strategies are key components to improving cash flow," says Kurek. "This should be extremely important to companies now more than ever with the economic downturn. Tax incentives are available to assist with these critical steps that will enhance cash flow."
While cost advantages of globalization are shrinking — respondents moving production or services offshore since 2007 has declined 20 percent — opportunities to benefit from participating in the global economy remain underutilized. U.S. manufactured goods are in demand globally due to the weak dollar, timely delivery and innovative products. Becoming internationally active in order to serve markets abroad is a sound strategy for companies seeking to increase revenues.
This year's survey asked what manufacturers and distributors are doing in terms of green initiatives. According to the survey:
- 46 percent of businesses have adopted at least one green initiative; and
- Approximately half of these businesses attribute the green initiative as a response to customer requests; it is likely that customers and end users — along with industry early adopters like construction and real estate — will drive demand for more environmentally friendly products and processes
Murphy says that manufacturers' and wholesale distributors' green gains are tied directly to lean manufacturing. "Lean manufacturing is focused on eliminating waste – including wasted energy and commodities. As companies implement lean to control costs, green improvements are inevitable. Not only is it about the environment; it's also a great way to improve the bottom line."
More than 75 percent of survey respondents do not take advantage of any government programs. More respondents are familiar with government programs than in 2007, but companies are still not taking advantage of available programs that could help their business in an economic downturn.
More than 960 industry executives — representing 911 companies — responded to questions on current business conditions, growth strategies, innovation, cost management, technology initiatives, operations and globalization. The complete RSM McGladrey 2008 Manufacturing and Wholesale Distribution National Survey is available at
http://www.rsmmcgladrey.com/2008survey.
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!
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
August 13, 2008
IMA-MIT Event: Essential Internal Training Skills and Techniques, DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
NOTE: Attendance is limited to 16, so register early to ensure your spot! Essential Internal Training Skills and Techniques is a one-day seminar that will introduce the new internal trainer or subject matter expert to the skills necessary for them to be a successful trainer or facilitator. This seminar will cover such core skills as how to create rapport with your learner, how to communicate learning objectives, how to introduce a learning activity, how to ask the right question, and how to engage and re-engage the adult learner.
August 21, 2008
IMA-MIT Event: Time Management and Personal Effectiveness Skills
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn to delegate with confidence, plan and execute productive meetings, prioritize daily activities for ultimate results, develop techniques for planning and achieving goals.
IMA-MIT Event: Mistake Proofing
August 25, 2008 — Decatur Conference Center & Hotel, US Hwy 36, Decatur
August 26, 2008 — DePaul University, 150 W. Warrenville Rd., Naperville
Designed to expedite effective application of Mistake Proofing methodology, this workshop focuses on effective methods of applying Mistake Proofing as a practical method of improving and maintaining process. Learn about standard inspection, Mistake Proofing principles, red flag conditions and review practical examples.
September 4, 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 one-day workshop will provide you with the skills to build better working relationships, develop a leader's perspective, and establish realistic performance goals for employees.
IMA-MIT Event: Lean Manufacturing: Quick Start
September 8, 2008 — Decatur Conference Center & Hotel, US Hwy 36, Decatur
September 9 — DePaul University,
150 W. Warrenville Rd., Naperville
Designed to help participants quickly initiate team oriented on-going Lean activities. Learn Lean terms and definitions, waste identification and analysis, team organization and choosing Lean tools for waste free processes.
For IMA-MIT events, contact Judy Parker, 800-875-4462, Ext. 3036, or email jparker@ima-net.org.
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