Download this document in .pdf format
BRIEFLY:
Chicago area business owners invited to breakfast seminar
Chicagoland business owners are invited to a seminar titled "To Build or Not To Build: Innovative Approaches to Corporate Facility Ownership" at 7:30 am, Wednesday, October 3 at the Rosewood Restaurant in Rosemont, Illinois.
The two-hour seminar will feature four real estate experts knowledgeable in the areas of brokerage, finance, construction and tax structuring. Topics to be covered include current market opportunities for existing buildings and land sites, lease or own considerations; options in conventional and non-conventional financing; how to control costs, manage schedules and eliminate risk; and tax advantages of ownership and entity structuring.
Registration and breakfast will begin at 7:30, followed by the program at 8:00 am. Cost is $50 per person. Pre-registration is encouraged by calling 630-320-8223 or e-mailing cgold@hodgeschindler.com.
EPA to hold ozone hearing in Chicago
Last month, the U.S. Environmental Protection Agency (EPA) opened a 90 day comment period for its proposed revision to strengthen the National Ambient Air Quality Standard (NAAQS) for ozone. EPA is conducting five hearings concurrently on August 30 and September 5, offering interested parties a chance to submit oral statements in support or opposition to the proposed change to the ozone standard. The EPA expects to issue a final rule by March 12, 2008.
Although the EPA has included preservation of the existing standard as an option on which to comment, EPA Administrator Steve Johnson has stated publicly that he supports moving to a more stringent standard.
Industry estimates that this will have at least a $100 billion impact on the economy, especially power generators, petroleum refiners, and standard manufacturing operations that must operate with an air permit.
On Wednesday, September 5, 2007, a hearing will be held in Chicago at The Westin Michigan Avenue Chicago, 909 North Michigan Avenue, Telephone: 312-943-7200. If you wish to register to testify, contact the EPA's Tricia Crabtree at 919-541-5688 or crabtree.tricia@epa.gov. Walk-up registrations to testify will be allowed by signing up at the registration table.
Illinois Department of Revenue warns businesses about tax ID website rip-off
In a recent letter to the state's top business associations, Department of Revenue Director Brian Hamer warned businesses about websites that charge money to connect users to services the IDOR offers for free. The Director asked business organizations to pass along information about these websites to their members and to new entrepreneurs.
"Unfortunately, misinformation can run rampant on the Internet, and businesses can be scammed into paying unnecessary fees," said Director Hamer. "We want to make sure that anyone that chooses to do business in Illinois knows that they can find all necessary tax forms at tax.illinois.gov free of charge and can call our toll free lines with any questions they may have."
The website www.Tax-ID-Application.info tells businesses they need to obtain an Illinois Sales Tax Resale Certificate Number and then offers it to them for a $25 fee. Businesses that use the website are frustrated to find that what they get for that $25 is simply an email that contains the web address for the Illinois Department of Revenue's free licensing site.
Similarly the www.corporate.com site offers to send Illinois businesses a "Business License Compliance Package" for $75. Part of the package consists of an overview of tax registrations identified for the business, contact information, and instructions for applications. For tax registration, all of this information can be found free on the Illinois Department of Revenue site.
Finally, http://businessnameusa.com/ connects customers to order Illinois State Tax IDs for $49 dollars. This again is a service the IDOR website offers free of charge.
Rather than unnecessarily spending money, Director Hamer wants businesses to know that IDOR's website http://tax.illinois.gov, is free, user-friendly, and offers answers to a wide variety of questions that new and existing businesses may have. Businesses can use the website's e-filing capabilities to register electronically. In addition, the IDOR website features an automated Q&A system which answers a wide variety of business questions.
Manufacturing jobs up in July, but state job losses mount
Following two months of static activity, Illinois manufacturers put an additional 1,600 workers on the line in July. The increase marks the highest employment level since November 2006.
"After eight months of disappointing jobs numbers, there is finally some good news for Illinois manufacturers," said Gregory W. Baise, president and CEO of the Illinois Manufacturers' Association. "Job growth and increased production numbers are always helpful to our state's economy."
However, Baise also observed that overall, manufacturing employment was down 2,200 over July 2006 and down more than 52,000 since January 2003.
Over the month, unemployment in Illinois reached 5.4 percent in July, the highest jobless rate for the state since February's 5.3 percent. Illinois' rate remains more than half a point above the nation's 4.6 percent rate. For the month, the state lost 11,500 jobs with five sectors losing more than 1,000 jobs each; the largest being the 3,600 lost in trade, transportation and utilities and a seasonal loss of 4,500 in government jobs, most of which are attributable to summer vacations at schools and state universities.
"While state government tries to sugar-coat our job losses last month, the fact remains that our state's economy is not that strong," Baise said. "It's unclear just how well the Blagojevich administration's economic policies are working when our economy seems to bounce along month to month with no clear direction, our state debt is facing unprecedented levels and our governor makes no bones about telling employers to hit the road' unless we agree to his colossal new social programs and billions in new taxes."
Baise pointed out that a number of Illinois companies are actively considering moving to more business friendly states to expand their operations or relocate altogether; a move that will diminish employment opportunities for the state's workforce. Baise said the IMA will continue its efforts to convince lawmakers to enact sound policies designed to keep existing employment and expand opportunities for new business ventures.
Can a school make a difference in the profitability and sustainability of your company and your community?
Austin Polytech is the first of several similar schools to be developed in the Chicago area. The Austin Polytechnical Academy will be preparing students to seek careers in high performance manufacturing. The IMA was among a number of organizations that played key roles in developing the academy. Glen Johnson, of Oakley Millwork, and former chairman of the IMA Board of Directors, spent countless hours meeting with labor, school and government officials to create the nascent program.
Austin Polytech opens on September 4 with 145 freshmen. When they graduate, these students will have had four years of a pre-engineering program, work experience in the summers and/or after school in a manufacturing company and have at least one National Institute of Metalworking Skills (NIMS) credential. They will be closely advised and mentored along the way by leaders in manufacturing
So far, 24 companies have joined the proud ranks of Austin Polytech Partners working to insure success for this school, its students, and the manufacturing sector.
Show your support and attend this program introducing Austin Polytech on September 12 at Arthur Machinery, Inc. at 2501 Landmeier Road in Elk Grove Village from 4:00-6:00 pm.
Hear all about the school from Principal Bill Gerstein, Assistant Principal Bernina Brazier, teachers and staff. Meet some of the students. Meet the leaders of the Chicago Manufacturing Renaissance and hear their plans to work with manufacturers and promote manufacturing in Illinois. Learn how you can get involved and provide support for this pioneering private/public initiative.
Please RSVP as soon as possible with Kimberly Harr at Arthur Machinery, Inc. You can reach Kim at 847-593-1610 or kharr@arthurmachinery.com.
The Conference Board U.S. Leading Index increased 0.4 percent
The Conference Board recently announced that the U.S. leading index increased 0.4 percent, the coincident index increased 0.2 percent and the lagging index also increased 0.2 percent in July.
The leading index increased in July, offsetting its June decline. The leading index has increased in three of the last six months. In July, consumer expectations, vendor performance, and initial claims for unemployment insurance (inverted) made large positive contributions to the leading index, offsetting the negative contributions of housing permits, manufacturers' new orders for nondefense capital goods, and interest rate spread. The leading index increased 0.1 percent from January to July (a 0.3 percent annual rate).
The coincident index increased again in July and it is 1.1 percent above its January level (a 2.1 percent annual rate). The largest positive contributions to the gain in the coincident index have come from industrial production and employment in recent months. The strengths among the coincident indicators have been very widespread in recent months despite the slower growth in this index of current economic activity in 2007, down from its growth rate of about a 2.5 percent average annual rate in 2006.
Following a brief pick up at the end of 2006, the leading index has been essentially flat in the first half of 2007 and the strengths and weaknesses among the leading indicators have been balanced over this period. At the same time, in the first half of the year real GDP growth slowed down to about a 2.0 percent average annual rate (including a 0.6 percent rate in the first quarter and a 3.4 percent rate in the second quarter), following a 2.6 percent average rate in the second half of 2006. The performance of the leading index so far in the first half of 2007 continues to suggest that the economy is likely to grow in the near term, albeit at a slow pace.
Six of the ten indicators that make up the leading index increased in July. The positive contributors beginning with the largest positive contributor were index of consumer expectations, vendor performance, average weekly initial claims for unemployment insurance (inverted), real money supply, stock prices, and manufacturers' new orders for consumer goods and materials. The negative contributors beginning with the largest negative contributor were building permits, manufacturers' new orders for nondefense capital goods, and interest rate spread. The average weekly manufacturing hours held steady in July.
The leading index now stands at 138.1 (1996=100). Based on revised data, this index decreased 0.3 percent in June and increased 0.2 percent in May. During the six-month span through July, the leading index increased 0.1 percent, with five out of ten components advancing (diffusion index, six-month span equals 50 percent).
All four indicators that make up the coincident index increased in July. The positive contributors to the index beginning with the largest positive contributor were industrial production, employees on nonagricultural payrolls, personal income less transfer payments, and manufacturing and trade sales.
The coincident index now stands at 124.6 (1996=100). This index increased 0.2 percent in June and increased 0.1 percent in May. During the six-month period through July, the coincident index increased 1.1 percent.
The lagging index stands at 128.9 (1996=100) in July, with three of the seven components advancing. The positive contributors to the index beginning with the largest positive contributor were commercial and industrial loans outstanding, ratio of manufacturing and trade inventories to sales, and ratio of consumer installment credit to personal income. The negative contributors were average duration of unemployment (inverted) and change in CPI for services. The change in labor cost per unit of output and average prime rate charged by banks held steady in July. Based on revised data, the lagging index increased 0.5 percent in June and increased 0.3 percent in May.
Source: The Conference Board, Inc.
IMA Annual Holiday Survey
Curious about what paid holidays Illinois manufacturers are providing for their employees in 2008? If so, help us answer the question by taking a quick survey. It will take less than two minutes to complete, and will provide you with valuable information.
Go to: http://www.zoomerang.com/survey.zgi?p=U27B7FMEYTS3
The survey period will close on August 31, but don't wait. Take the IMA Annual Holiday Survey today!
Thank you for participating.
Feds to crackdown on illegal workers
In a new effort to crack down on illegal immigrants, the U.S. government has announced it will promulgate tough rules that would require employers to fire workers who use false Social Security numbers. Officials said the rules would be backed up by stepped-up raids on workplaces across the country that employ undocumented workers.
After first proposing the rules last year, Department of Homeland Security officials said they held off publication to await the outcome of the debate in Congress over a sweeping immigration bill. That measure died in the Senate in June after a coalition of Republicans and Democrats were unable to agree on a final package of legislation.
Now administration officials are saying they intend to punish employers of illegal immigrants. The new rules are a major tightening of the immigration enforcement system, in which employers for decades have paid little attention to notices, known as no-match letters, from the Social Security Administration advising that worker names and numbers did not match the agency's records.
The expected regulations would give employers a fixed period to resolve any discrepancies between identity information provided by their workers and the records of the Social Security Administration. If workers' documents cannot be verified, employers would be required to fire them or risk up to $10,000 in fines for knowingly hiring illegal immigrants.
The new rules are a joint effort of the Department of Homeland Security, which enforces the immigration laws, and the Social Security Administration, which collects identity information from W-2 tax forms of about 250 million workers each year, so it can credit the earnings in its system.
According to published reports, the agency expects to send out about 140,000 no-match letters to employers this year, covering more than eight million workers. After the rules are announced, the agency is anticipating a surge in requests from employers seeking to clarify workers' information.
Social Security issues letters only to employers who have more than 10 workers whose numbers do not match, when those workers represent at least one-half of one percent of the company's workforce. Many small employers are already expressing concern that the new rules leave them in a "Catch 22" because with less than 10 workers, Social Security will not be sending them letters notifying them of a potential problem.
The IMA, as most employer organizations, is watching this matter closely and will keep its members informed of developments.
State Treasurer to return lost cash and property
More than 80,000 new names owed money
Illinois State Treasurer Alexi Giannoulias is publishing more than 80,000 new names of people and businesses that have cash and property owed to them.
The names have been added to the state's unclaimed property rolls since the list was last published in February, bringing the database to more than 10 million claims.
This month, the new additions will be listed in newspapers across the state with the hopes that more people will collect what's owed to them. Common forms of unclaimed property include paid-up life insurance policies, forgotten bank accounts and even entire estates.
"During the last fiscal year, my office returned a record $92 million, including the largest claim ever which amounted to more than $1 million," Giannoulias said. "I urge people to check for their names in our publication and our online database. It's free and easy and we return more money than you might expect."
The Treasurer's Office is holding property and cash worth more than $1.4 billion. Approximately 1,500 individuals and businesses are owed more than $50,000 each.
Unclaimed property consists of money and other assets held by banks and other financial institutions that are considered lost or abandoned after an owner cannot be located for more than five years.
Along with checking the local newspaper, residents can search the Treasurer's entire database by visiting http://www.treasurer.il.gov/ and typing in a name.
An estimated one in six people have lost assets at the Illinois Treasurer's Office. In many cases, people move and forget to furnish their broker, bank, employer or insurance company with a forwarding address. Eventually, the money makes its way to the Treasurer's Office for distribution.
An owner never loses his or her rights to their property. The state holds the property or cash until the owner or heir claims it.
There are many ways for citizens to find out if the Treasurer is holding their property. Twice yearly the Treasurer publishes a list comprised of the most recently remitted properties; at the same time, state legislators are provided with a list of the newly reported names in their districts.
Throughout the year, the Treasurer sponsors outreach activities to help citizens who are unfamiliar with the Unclaimed Property Division or who do not have Internet access to search the database for the property.
When a person finds their name listed in the newspaper or on the web site, he or she must mail a written inquiry to the Treasurer's Office. The inquiry should include a current name and address, previous names, past addresses, a Social Security number and the relationship or authority if he or she is an heir. Claims cannot be approved without Social Security numbers.
For more information about unclaimed property, visit http://www.treasurer.il.gov/ and follow the Cash Dash link; write the Illinois State Treasurer, Unclaimed Property Division, P.O. Box 19495, Springfield, IL, 62794-9495; or call 217-785-6998 or toll-free 1-866-458-7327 (in Illinois only).
Securing our exports to China: New rules can limit military's access to high technology
by Mario Mancuso
China's rise is a signature development of the early 21st century for U.S. economic and national security policy. For U.S. policy on exports, it offers the starkest example of the end of the Cold War when "trusted countries" had good customers for sophisticated U.S. exports and "adversary countries" were home to companies that must be denied U.S. technology and other items.
Now, almost all countries offer attractive opportunities for legitimate trade and security risks. U.S. export control policy toward China should evolve to keep up with these new realities in a manner consistent with our broader foreign policy. The Commerce Department recently published updated regulations that support U.S. companies in competing successfully in China while restricting the export of technologies that would contribute to China's military modernization.
China is one of America's most important overseas markets for high-technology items, and U.S. exporters are capturing the opportunity. Last year, U.S. high-tech exports to China grew by 44 percent to $17.7 billion more than the entire value of U.S. exports to India, Russia and Thailand. The share of these exports subject to Commerce Department export controls is tiny, but important. About $230 million worth of high-tech exports to China 1.3 percent required a license in 2006. These were items like sophisticated electronic components that required an extra degree of scrutiny to ensure they were would not be used in ways contrary to U.S. national security or foreign policy.
The United States welcomes a prosperous and peaceful China, integrated into the global economy. But China's rapid and opaque military modernization, punctuated by events such as its January 2007 test of an anti-satellite weapon, demonstrates the continued need to apply additional prudent oversight to a small number of the most sensitive "dual-use" technologies and other items which by definition have both civilian and military applications. The new Commerce Department regulations strike the right balance in our complex relationship with China. First, they facilitate legitimate commercial trade by making it easier for U.S. companies to export items to Chinese companies that have a record of using them responsibly. At the same time, the new regulations place certain restrictions on high-technology items that could contribute to China's military build-up.
Specifically, the new "Validated End-User" program (VEU) will permit trusted customers in China to receive selected technologies and other items without the need for individual export licenses. Under the VEU program, exporters will be able to sell more easily to companies in China that have a responsible record of using sensitive U.S. items for their intended civilian purpose. This innovative new program promises to reduce time, expense and uncertainty in the licensing process and make U.S. exporters more competitive in China. It will also act as a powerful market-based incentive, rewarding responsible practices by the many civilian firms in China that handle sensitive technology with care.
The updated regulations also will enhance U.S. security by imposing new and heightened scrutiny on a focused set of approximately 20 types of products and technologies, such as lasers and radar antennas, when they are intended for use in Chinese weapons systems. As military procurement relies ever more extensively on commercial, off-the-shelf products, this new targeted list of controls, which was carefully developed by the Departments of Commerce, Defense and State, will help to ensure that dual-use products are not a back door to breaking the U.S. arms embargo on China.
The publication of the updated China policy regulations marks an end and a beginning. It is the end of a long debate about how to fine-tune export controls to strike the right balance in our complex relationship with China. This policy is also the beginning of new, enhanced opportunities for U.S. businesses to boost legitimate trade with one of the most important new economies in the world.
Source: Bureau of Industry and Security, Department of Commerce
New appointments to the Workers Compensation Commission
- Molly Mason has been appointed as the labor representative, effective August 16, 2007. She will fill the position vacated by Commissioner Susan Pigott. Commissioner Mason will serve on Panel A.
- Kevin W. Lamborn has been appointed as the business representative, effective September 1, 2007. He is replacing Commissioner Gregory Ulrich. Commissioner Lamborn will serve on Panel B.
- Commissioner David Gore has been reappointed as the labor representative and will continue to serve on Panel C.
- Finally, Dennis R. Ruth has been reappointed to the position as chairman of the Commission.
The bipartisan Workers' Compensation Advisory Board recommended the new commissioners to the governor. All terms will expire in January 2011.
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.
September 5, 2007
Failure Mode and Effects
Analysis (FMEA)
DePaul University, 150 W. Warrenville Road, Naperville
Learn to maximize the benefits of performing FMEA activities, gain ideas for other applications and learn about risk evaluation and management. Eliminate or minimize effects of potential failures using control methods.
September 6, 2007
Hot Wage & Hour Issues: A Review of Recent Court Decisions
& Agency Rulings
Executive Conference Room,
1225 W 22nd St., Ste. 140, Oak Brook
The number of class actions and collective action lawsuits filed under the wage and hour laws continue to mushroom. These cases now out number employment discrimination class action claims. Vedder Price partners James Spizzo and Thomas M. Wilde lead this program where you will learn: 1) the common mistakes employers often make in the area of compliance required by the wage and hour laws, 2) the need for consistent and appropriate job classifications and 3) how employers can use audits and classification reviews to be more proactive. COST: $125 for IMA members; $100 for each additional attendee from the same company and $200 for non-members. Contact: Kimberly McNamara, 800.875.4462, ext. 2109, email kmcnamara@ima-net.org.
September 14, 2007
Time Management and Personal Effectiveness Skills
DePaul University's O'Hare Campus, 3166 River Road, 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.
September 19, 2007
Problem Solving - 8D
DePaul University, 150 W. Warrenville Road, Naperville
Designed to demonstrate effective problem solving methods, this workshop will focus on root cause analysis, cause and effect diagrams, five "Why" techniques, team oriented problem solving and containment measures.
October 2, 2007
Mistake Proofing
DePaul University, 150 W. Warrenville Road, 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.
Order the IMA's 2007-2008 Benefits Report at https://www.ima-net.org/ben_report_order.cfm
Order the IMA's 2006 Annual Compensation Report at http://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
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.
