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BRIEFLY:
Michigan, Ohio still struggle with manufacturing job losses
Employment has increased over five percent since the end of the last recession in November 2001, but some states are still struggling with job loss — especially in manufacturing. A recent Economic Snapshot from the Economic Policy Institute (EPI) finds that Michigan and Ohio — two of three states with persistent negative job growth — have lost 159,000 and 136,000 manufacturing jobs, respectively, since November 2001. During that same period, Illinois lost 103,000 manufacturing jobs.
The Economic Policy Institute is an independent, non-profit, non-partisan research institute — or "think tank" — based in Washington, D.C.
Building or remodeling? Go green with ideas from the U.S. DOE's "High-performance Buildings Database"
High-performance buildings use energy efficiency measures, renewable energy technology, recycled and sustainable materials, and site-sensitive design to minimize the burden on the environment. This U.S. DOE site offers detailed profiles of homes, commercial interiors, office buildings, retail sites, and campuses from around the world. Search by project name, location, or building type and size to find case studies that will aid architects, designers, and builders in understanding how to green projects. Each case study covers the structure's materials, energy and water systems, indoor environment, and land use. Also find information on project costs and financial resources, as well as news on the latest in high performance building research. Visit http://www.eere.energy.gov/buildings/highperformance/
The Conference Board Consumer Confidence Index climbs to a six-year high
The Conference Board Consumer Confidence Index, which had dipped in June, rebounded in July. The Index now stands at 112.6 (1985=100), up from 105.3 in June. The Present Situation Index increased to 139.2 from 129.9 in June. The Expectations Index rose to 94.8 from 88.8.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is the world's largest custom research company. The cutoff date for July's preliminary results was July 24th.
Says Lynn Franco, Director of The Conference Board Consumer Research Center: "The rebound in consumer confidence has catapulted the Index to its highest reading in nearly six years (August 2001, 114.0). An improvement in business conditions and the job market has lifted consumers' spirits in July. The Present Situation Index is also at a near six-year high (August 2001, 144.5). Looking ahead, consumers are more upbeat about short-term economic prospects. This rebound in confidence suggests economic activity may gather a little momentum in the coming months."
Consumers were considerably more positive about current-day conditions in July than they were in June. Those claiming conditions are "good" increased to 28.1 percent from 27.3 percent. Those saying conditions are "bad" decreased to 14.4 percent from 16.1 percent. Consumers were also more upbeat about the job market. Those saying jobs are "hard to get" declined to 18.4 percent from 20.5 percent. Those claiming jobs are "plentiful" improved to 30.5 percent from 27.6 percent in June.
Consumers were also less pessimistic about the short-term outlook. Those expecting business conditions to worsen in the next six months declined to 8.0 percent from 10.8 percent. However, those anticipating business conditions to improve dipped to 15.4 percent from 16.2 percent.
The outlook for the labor market continued to be mixed. The percent of consumers expecting more jobs in the months ahead was virtually unchanged at 14.1 percent, while those anticipating fewer jobs decreased to 15.1 percent from 17.0 percent. The proportion of consumers expecting their incomes to increase in the months ahead declined to 18.8 percent from 19.4 percent in June.
Major U.S. trading partners cut corporate tax rates while U.S. stands pat with second-highest rate
U.S. one of two countries that have not cut rates in past 12 years
The U.S. has the second-highest corporate tax rate in the Organisation for Economic Co-operation and Development (OECD) and is one of only two countries that have not reduced their rates since 1994, according to a new review of international tax rates by the Tax Foundation.
Five countries cut their corporate income tax rates in 2006, seven more will have cut their rates by the end of this year, and Germany recently announced a planned cut on January 1, 2008.
Despite its high corporate tax rate, the U.S. collects less revenue as a percentage of GDP than most other OECD countries, even those with much lower statutory tax rates," said Chris Atkins, senior tax counsel and co-author of the new study. "The United States is one of only two OECD countries not to cut corporate tax rates in the past 12 years. That has pushed us further and further behind in a highly competitive international marketplace."
U.S. lawmakers should consider enacting a substantially lower federal corporate income tax rate, according to Atkins. Taking into account state-level corporate income tax rates (which don't exist in most other nations) the cut would have to be at least 10 percentage points to get the U.S. rate down to the OECD average.
In the Foundation's Fiscal Fact series, No. 96, "U.S. Still Lagging Behind OECD Corporate Tax Trends," Atkins cites four benefits of doing so:
- A lower effective tax rate on new investment in the U.S. would steer international investment our way.
- U.S. multinationals would feel less pressure to engage in corporate inversions and other forms of profit-shifting.
- U.S. companies would be more likely to reinvest foreign earnings in U.S. companies.
- State governments would feel less pressure to offer special tax preferences and credits in their efforts to attract new international business investment.
The nonpartisan, nonprofit Tax Foundation has monitored tax policy at the federal, state and local levels since 1937. The Tax Foundation is a nonprofit, nonpartisan organization. Visit
http://www.taxfoundation.org/ for more information.
SBRB Study: General economy, taxes, cost of materials greatest concerns of manufacturers
The general state of the economy, taxes and the cost of materials were the three leading concerns of small manufacturing businesses during the second quarter of 2007 according to the latest Small Business Research Board (SBRB) study.
Owners of manufacturing businesses responding to the nationwide poll co-sponsored by International Profit Associates (IPA) said health care costs, which had been the single most significant issue during the first quarter of 2007, fell to sixth. Concern about energy and fuel costs as well as finding quality employees ranked ahead of health care expenses as more problematic issues among manufacturing companies in the recent study.
The quarterly poll of small business owners and managers also measured their interest in expanding their operations over the next 12 to 24 months. Only 29 percent of the respondents said they intend to expand during this period. Of those respondents, 28 percent said they are considering expanding at current locations, while 21 percent said they will add more products and 20 percent indicated they intend to increase customer service. Adding more services ranked fourth with 16 percent. The addition of locations was cited by only seven percent of the respondents.
The small business owners said adding more automation or technology as well as improving existing automation would be their primary means for enhancing productivity during the coming 12 to 24 months. Improved staff training, hiring of additional employees and incentive programs also were cited as important methods for improving productivity.
Even though the SBRB recently reported that its Manufacturing Industry Small Business Confidence Index (SBCI) rose 3.3 points to 40.3 during second quarter, there is great concern about the state of the economy — now and into the future. Only 36 percent believe the economy will improve during the coming 12 months versus 40 percent the first quarter.
More than 130 small business owners participated in the nationwide manufacturing industry poll. The universe of participants is developed from among small businesses across the United States. The SBRB study is a voluntary survey conducted quarterly.
The Small Business Research Board can be found at www.ipasbrb.com.
International Profit Associates, Inc. (IPA) is a privately-held provider of management consulting services to small and medium-size businesses in North America. More information about IPA can be found at
www.ipa-iba.com.
SBRB Manufacturing Industry Q2 2007 Opinions, Forecast
Outlook for the general economy is for the next twelve months
36% Better
28% Worse
36% No Change
Revenue expectations for the next twelve months
30% Increase of 10% or more
22% Increase of less than10%
34% Will be about the same
7% Decrease of less than 10%
7% Decrease of 10% or more
Expectations for hiring new employees during next twelve months
34% Increase hiring
14% Decrease workforce
43% Remain the same
9% Unsure
Plan to expand your business during next 12 to 24 months
29% Yes
71% No
If planning expansion, will
28% Expand at current locations
21% Add new products
20% Enhance customer service
16% Provide more services
7% Add locations
5% Other
3% Acquisition
Can best improve productivity by
- Adding more automation or technology
- Improvements to existing automation
- Improved staff training
- Adding more staff
- Implementing or enhancing employee incentive programs
Source: Small Business Research Board (SBRB)
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
For information on any of the events listed here, please contact Judy Parker, 800-875-4462, ext. 3036, email:
jparker@ima-net.org.
August 15-16, 2007
Spanish OSHA 10-Hour Outreach Program (General Industry)
DePaul University, 150 W. Warrenville Road, Naperville
REGISTRATION DEADLINE: AUGUST 1, 2007
August 16, 2007
Effective Presentation Skills
DePaul University's O'Hare Campus, 3166 River Road, Des Plaines
Learn the skills and tools needed to deliver a winning presentation.
August 21, 2007
Lean Manufacturing: Quick Start
DePaul University, 150 W. Warrenville Road, Naperville
Designed to help participants quickly initiate team oriented on-going lean activities, this workshop includes instruction on lean terms and definitions, waste identification and analysis, team organization and choosing lean tools for waste free processes.
August 23, 2007
Leading and Managing Through Change
DePaul University's O'Hare Campus
3166 River Road, Des Plaines
This interactive workshop combines proven leadership behaviors with practical skills to help leaders respond to the changes they face in today's rapidly changing and highly competitive work environment.
August 27, 2007
Project Management for Non-Project Managers — DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Learn project management skills, tools and techniques to make the transition to a project leadership role and ensure optimum project execution. This one-day workshop provides increased competence to manage a project through all project stages: initiating, planning, delivering, monitoring, and completing.
August 27, 2007
Essential Leadership Skills for Newly Promoted and Frontline Supervisors
DePaul University's O'Hare Campus, 3166 River Road, Des Plaines
This fast-paced, invigorating one-day workshop will provide you with the skills to build better working relationships, develop the perspective of a leader, and establish realistic performance goals for employees.
August 28, 2007
Spanish for Manufacturing
952 E. Eldorado, Suite 102, Decatur
With the rapid increase of Hispanics in the workforce, Spanish has become crucial for those in the manufacturing industry. By learning Spanish, managers, supervisors, and team leaders will become empowered to meet the needs of this fast growing workforce and positively increase organizational safety, productivity, and profitability.
NEW Website offers outstanding training opportunities:
www.ima-net.org/MIT/
Training is no longer a luxury, but a basic ingredient in the development of a business. In today's economy, with companies struggling to prevent lay-offs and closure, it is vital to maintain a competitive high performance workforce.
In response to this growing need, the IMA has launched a new service — the Manufacturers' Institute for Training (MIT). We have expert trainers in the fields of safety, quality, leadership/management, communications, lean manufacturing, project management, IT, and much more. Customized, on-site sessions can also be arranged to address your company's specific needs or issues. Visit
www.ima-net.org/MIT/ on the Web or contact Judy Parker, IMA Director of Training, at 217-522-1240, ext. 3036, or email
jparker@ima-net.org.
Order the IMA's 2007-2008 Benefits Report at www.ima-net.org/ben_report_order.cfm
Order the IMA's 2006 Annual Compensation Report at 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
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