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BRIEFLY:
2008 Corporate Network Summit, September 9, Hoffman Estates
"Driving Corporate Growth & Value through Volatile Times and Global Growth" is the theme of this Summit sponsored by the Association for Corporate Growth (ACG) Chicago.
The event will be held September 9, 2008, from 7:30 am – 5:00 pm with a reception following. The location is Stonegate Convention Center, 2401 West Higgins Road, Hoffman Estates.
Notable conference speakers include Brian Wesbury of First Trust Advisors, a Wall Street Journal columnist and John Edwardson, Chairman and CEO of CDW on the private/public/private path and related challenges.
In the presentation, "A World of Opportunities in International Growth," a panel of representatives from the Illinois Global Partnership, the World Bank, and the International Finance Corporation will discuss how companies can partner with these international financial institutions to find new customers, secure additional financing and mitigate risk in emerging markets. Other highlights include a panel of family business leaders; panels on strategic planning using Deming's theories; $40+ billion of government funded new business opportunities; and risk management issues. Another panel of CEO's, presidents and senior executives from six of the Chicago banks will discuss the current state of credit and future opportunities for Midwestern growth.
For registration, go to http://www.ACGChicago.com
or call 630-455-1740.
IMA Special Events you won't want to miss...
MPAC Tailgate
Saturday, October 11, Champaign
U of I vs. Minnesota
MPAC invites you to tailgate with your friends and colleagues at the University of Illinois vs. Minnesota homecoming game on Saturday, October 11, from 9:00 –11:00 a.m. Kickoff is at 11:00 a.m. Visit
http://www.ima-net.org for reservations, or call Kimberly McNamara at 800-875-4462, ext. 2109, email
kmcnamara@ima-net.org, for additional information.
IMA's Annual Sales Tax Conference
Tuesday, November 4,
8:30 am–12:30 pm, Northern Illinois University-Naperville Campus
Contact Kimberly McNamara at 800-875-4462, Ext. 2109
IMA's 2008 Annual Luncheon & Meeting, Friday, December 5
Hotel InterContinental, Chicago
Learn what it takes to "go green." Sponsorship opportunities available. Contact Kimberly McNamara at 800-875-4462, ext. 2109 with questions. Visit
http://www.ima-net.org to register for this year's event.
How Corporate Counsel Can Impact the Direction and Cost of IP Litigation
Thursday* September 25, 2008* Registration: 8:00 a.m.* Seminar: 8:30–10:15 a.m.
Vedder Price Conference Center
222 North LaSalle Street, 22nd Floor Boardroom* Chicago
This is a complimentary program sponsored by Vedder Price
Intellectual Property litigation is exploding as companies make every effort to protect intangible assets, including patents, trademarks, copyrights and trade secrets. The rules affecting the scope and pace of this type of litigation are different from rules affecting traditional commercial cases. Decisions made by in-house counsel regarding everything from the selection of an appropriate forum to the procedures relating to electronic discovery can dramatically affect the total cost and eventual outcome of the litigation.
This program has been specifically designed to assist in-house attorneys charged with the
direction of IP-related litigation to make better and more cost-effective decisions.
Visit http://www.vedderprice.com/index.cfm/fuseaction/seminars.home/seminars.cfm
to register for this free seminar.
IMTS 2008 — September 8-13, McCormick Place, Chicago
The 2008 International Manufacturing Technology Show (IMTS 2008) is the 27th edition of the premier manufacturing technology show in North America. More than 1,500 exhibiting companies will occupy 1.2 million net square feet of exhibit space and attract more than 91,000 buyers and sellers from 119 countries. Visit
http://www.IMTS.com for more information.
Natural gas: Storage benchmark skews the perception of inventories in 2008
Of the many fundamental data points available to participants in the natural gas market, one of the most closely watched is the Weekly Natural Gas Storage Report. Released by the Energy Information Administration (EIA) on Thursday mornings, this report provides weekly estimates of natural gas volumes held in underground storage facilities. Along with the updated data for the current year, the EIA provides a historical comparison to average inventories from the previous five years. Presenting a variance has become a common storage benchmark in the natural gas industry. In recent years, however, record storage inventories have driven the five-year average significantly higher, potentially skewing the perception of current levels in comparison to history.
Storage inventories at the end of the summer injection season (October 31) averaged 3,059 Bcf from 1994 to 2005. In the third quarter of 2006, market participants were comparing would-be end-of-season levels to a five-year average of 3,189 Bcf. However, at the end of October 2006, inventories stood at 3,448 Bcf, significantly higher than the five-year average and well above the previous record for end-of-summer levels. The following year experienced even better storage levels at the end of October, establishing an all-time record high for end-of-season inventories at 3,535 Bcf.
At the beginning of April 2008, natural gas storage fell behind the five-year average for the first time in almost four years and some market participants worried that inventories would fail to reach adequate levels by the end of the summer. However, a potentially skewed perception of "adequate" may have unnecessarily elevated concern, as inventories are currently on-pace to end the injection season at more than 3,400 Bcf. While this would be well ahead of the long-term average (1994-2007) for end-of-summer storage levels, it represents a less impressive surplus to the five-year average. Next year, the five-year average for the end of October will move even higher, as a relatively low inventory of 3,155 Bcf from 2003 will be dropped from the equation. If inventories on October 31 of this year equal 3,400 Bcf, the five-year average will increase to 3,376 Bcf, a level that was never reached prior to 2006.
While the five-year average is an accurate reflection of recent storage history and it is likely to remain a key benchmark for participants in the natural gas market, this measure is somewhat misleading in evaluating storage levels in 2008. While inventories are only marginally better than the five-year average at this time, storage levels are high relative to all historical data. Inventories of 3,400 Bcf on October 31, 2008 would represent a deficit to the previous two years, but would be the third highest end-of-summer level since the EIA began tracking weekly data in 1994.
While those concerns have been eased by above-normal injections in recent weeks, it is important to keep the measure of the five-year average in proper perspective. As this benchmark for end-of-summer storage rises even higher next year, market participants should keep in mind that failure to achieve that level may be more of a reflection on the strength of previous years than on the weakness of current inventories.
©2008. Copyright Constellation Energy, Inc. The materials described are contracted by Constellation NewEnergy-Gas Division, LLC, a subsidiary of Constellation Energy, Inc. Errors and omissions excepted.
Conference for Sustainable Manufacturing, September 22-25, Rosemont
Presentations by industry experts will focus on increasing profit and reducing waste. Canon Communications' second conference for sustainable manufacturing, Green Manufacturing: Business Strategies for Sustainability, will be held September 22-25, 2008, at the Donald E. Stephens Convention Center in Rosemont, Illinois.
Co-located with the premier advanced design & manufacturing event in the Midwest region of the U.S., this three-and-a-half-day conference will emphasize concepts such as Lean and Green, Corporate Social Responsibility, Waste to Profit, Design for Environment, Zero Waste and Environmental Sustainability through mind-opening sessions and intensive workshops. The program's goals are to familiarize delegates with new approaches to reducing costs and increasing profits, while at the same time conserving energy and resources. Delegates can network with key industry contacts and gain the tools and ideas that will benefit the environment and their companies' bottom lines.
Pamela J. Gordon, Founder of Technology Forecasters Inc., lead consultant for TFI Environment and author of the book Lean and Green: Profit for Your Workplace and the Environment, will return as conference chair of the first two days. A keynote panel discussion entitled "So the grass IS greener on the other side: How industry leaders are practicing sustainability and increasing tomorrow's profitability" featuring panelists from Philips Healthcare, Hewlett-Packard, and Best Buy, is scheduled for Tuesday morning, September 23. Companies will discuss their commitment to improving their products and processes through more sustainable methods. This inspiring discussion is open to all Expo visitors.
The program will include additional presentations from NEC Electronics America, Inc., The Chicago Manufacturing Center, IBM, American Society for Quality, Blue Coat Systems and others.
More information and online registration forms for the conference are available at
http://www.greenmfgexpo.com.
Free seminar: Fraud Deterrence and Detection in the Modern Workplace
"Defeat The Cheat" is the title of a free seminar to be presented by Clifton Gunderson, one of the nation's largest certified public accounting and consulting firms, on September 4, 2008. Clifton Gunderson will present a comprehensive, half-day event to educate its clients and prospects about the latest in fraud deterrence and detection. The free seminar is open to the Chicagoland business community and company leaders are invited to join Clifton Gunderson's audit, investigation and technology experts as they discuss the ins and outs of uncovering current fraudulent activities, safeguarding an organization, and avoiding future fraud. Seminar participants can earn four hours of CPE and three and a half hours of CLE credit.
Key points to be presented during this free seminar include: High-Tech Fraud: Information Technology Schemes and Scams; Stopping the Criminal in His Tracks: (The Value of a Risk Assessment) and Dynamics of Fraud: How to Identify and Combat Fraud.
The seminar will be presented on September 4, 2008 from 8:00 am to 12:30 pm at The DuPage Club, 1901 S. Meyers Rd., Oakbrook Terrace, 630-691-1300
(www.thedupageclub.com).
Registration is required at http://www.cliftoncpa.com/Resources/Events/
or contact Wendy Gugora at 630-368-3601.
Clifton Gunderson is one of the nation's largest certified public accounting and consulting firms, providing a wide range of assurance, accounting, tax, and consulting services to clients in a variety of industries. The firm has been recognized as one of the country's best places to work.
IMA Young Leaders conference to review state of manufacturing in Galena, October 3-5
Participants in the IMA Young Leaders Council's fall conference will hear a presentation on "the future of manufacturing" based on the third annual manufacturing and distribution survey conducted by IMA member company RSM McGladrey. RSM McGladrey Executive Vice President Tom Murphy will be the keynote speaker.
The survey found that manufacturers are reporting that business is good for the most part, but 80 percent are pessimistic about the U.S. economy and its prospects for growth.
Inflationary pressures are a main source of concern driving expectations. The vast majority of companies expect increased costs for energy, raw materials and transportation will continue to undercut already thin margins and could lead to increases in the price of finished goods.
Nonetheless, nearly two-thirds of companies say they expect growth to occur in 2008.
The survey also asked about efforts by companies to become more "green." According to the results, nearly half of all respondents say they've adopted at least one "green" initiative and more than half said their initiatives were initiated at the request of customers.
The Young Leaders Council fall conference will be held October 3-5 at Eagle Ridge Resort and Spa in Galena, Illinois. Registration and complete conference information is available at
https://www.ima-net.org/ylc08.cfm.
Survey: Inflationary pressures mounting for U.S. manufacturers Energy, raw materials, transportation costs eroding profits
RSM McGladrey released data gathered that shows global competition for raw materials and rising energy costs are driving up costs and substantially reducing the bottom line of middle market manufacturers and distributors more than they were just three months ago.
As a follow-up to the 2008 RSM McGladrey Manufacturing and Wholesale Distribution survey conducted in April 2008, the new survey polled the same respondents concerning expected price increases in energy, transportation and raw materials. A majority of respondents were from private companies, offering rare insight into the strategies and challenges of private manufacturers and distributors.
"The impact of the rising cost of energy is rippling throughout the manufacturing and distribution sectors," said Tom Murphy, executive vice president of manufacturing and wholesale distribution for RSM McGladrey. "With at least 50 percent more companies expecting energy, raw material and transportation cost increases of ten percent or more, we can expect profitability to take a hit over the next several months as companies absorb these costs."
According to the findings, 48 percent of companies are expecting energy prices to rise by ten percent or more — 50 percent more than in April 2008. In addition, 43 percent of companies predict raw material costs to increase by ten percent or more, a 60 percent increase from April. For projected transportation costs, 52 percent of companies expect drastic increases compared to 20 percent previously — an astounding 160 percent increase from just three months ago.
"Various global demand pressures are contributing to increased commodity prices which are reflected in the raw material costs for many manufacturers and distributors," said Murphy. "Product costs are additionally impacted by the significantly higher freight costs driven by the cost of fuel."
While companies are taking immediate action to offset the impact of rising costs, RSM McGladrey also recommends that companies consider a long-term strategy to managing the structural cost changes being driven by the new realities in commodities pricing and transportation costs.
"The disconnect in the supply chain has the potential to cause a deeper fault line if companies are not prepared moving forward," commented Murphy. "This inflationary surge is not an anomaly — it's a sign of a new, long-term global cost environment. It's paramount that companies change the way they do business to survive now and thrive in the future."
Initiatives RSM McGladrey recommends to shield companies against rising energy costs include:
- Turning to export markets as an alternative for growth;
- Sourcing product through the global value chain to reduce import and material costs while maintaining product quality — including reconsidering domestic suppliers, which may be attractive options due to escalating transportation costs;
- Implementing lean manufacturing — a key component of cost reduction under any circumstances;
- Pursuing cost savings opportunities to curtail unnecessary expenditures; and
- Taking advantage of government programs and tax incentives to support efficiency efforts and boost cash flow.
The RSM McGladrey 2008 energy cost survey was conducted the week of July 21, 2008 and includes responses from 357 senior level executives – including CEOs and CFOs – from small and medium manufacturing and distribution companies. This survey was conducted as a follow-up to the 2008 RSM McGladrey Manufacturing and Wholesale Distribution survey which polled executives in April 2008 and was released in July 2008. The follow-up survey polled the same respondents on questions related to projected price increases in energy, transportation and raw material costs experienced between April and July 2008.
For more information on the complete RSM McGladrey 2008 Manufacturing and Wholesale Distribution National Survey with insight from more than 960 industry executives, visit
http://www.rsmmcgladrey.com/2008survey.
September is National Preparedness Month — Businesses encouraged to plan before
disaster strikes
Recent floods in the Midwest and hurricanes/tropical storms in Texas and Florida have cost homeowners, renters and businesses millions of dollars in damages.
National Preparedness Month, sponsored by the U.S. Department of Homeland Security (DHS), is designed to enhance the public's awareness of the necessity of having an emergency plan in place to respond to a natural or man-made disaster. The U.S. Small Business Administration is one of the many government and private sector coalition partners participating in this fifth annual National Preparedness Month.
"There's a tendency — and it's human nature — to think that a large-scale disaster is not going to happen where you live," said SBA Acting Administrator Sandy K. Baruah. "Accepting the inevitability of an emergency, and then taking responsibility for your own recovery are the necessary first steps toward protecting your family, your assets and your community."
To prepare for disasters, SBA offers tips on its Website at http://www.sba.gov/services/disasterassistance/disasterpreparedness/index.html.
The Institute for Business and Home Safety (http://www.ibhs.org) also has information on protecting your home or business. To learn more about developing an emergency plan, visit the DHS's Ready Campaign Web site at
http://www.ready.gov or call 800-BE-READY to receive free materials.
Cargill using talent incubators to "grow" workforce
IMA Member company Cargill, Inc. has implemented an in-house program to grow its own skilled workforce. According to a recent Industry Week article, the food-processing giant began the program in 1993 that provides educational opportunities for its workforce that is 85 percent Hispanic. The goal of the program is to move individuals with an average sixth grade education into skilled manufacturing positions.
Cargill partnered with Morgan Community College in Ft. Morgan, Colorado, to provide English as a Second Language, GED and citizenship classes to help immigrant workers become a productive part of the community and Cargill's workforce.
Cargill donated equipment and supplies to the college and provided advice on curriculum. In addition, Cargill management provides ongoing feedback on the strengths and weaknesses of the programs and provides outreach to other community employers.
Reports that the Hispanic population in the U.S. is expected to continue its rapid growth and account for more than 50 percent of the nation's workforce by 2014 is making Cargill's investment worthwhile in assuring the company will have an adequate supply of skilled workers.
The program has been responsible for creating a new source of supervisory candidates that has boosted the number of Hispanic supervisors from five percent to 45 percent since the program's inception.
With nearly nine million Americans out of work in July, nearly 500,000 in Illinois alone, a number of companies are exploring ways to make sure that workers they are able to hire have the necessary skills to perform available jobs. Programs like Cargill's go a long way to assure workers have good paying, sustainable jobs that benefit the company, workers and their communities.
Order your IMA Annual Compensation and Benefits Reports today
The IMA Annual Compensation and Benefits Reports, conducted with the assistance of RSM McGladrey, will be available in September.
Pre-order your copies of the IMA Annual Benefits and Compensations Reports online at
http://www.ima-net.org/ben_report_order.cfm. For more information, contact Janie Stanley at 800-875-4462 or email
jstanley@ima-net.org.
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 at jstanley@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
IMA-MIT Event: 5 S and Visual Controls
September 22, 2008 — Decatur Conference Center & Hotel, US Hwy 36, Decatur,
September 23, 2008 — DePaul University,
150 W. Warrenville Rd., Naperville
This workshop will focus on effective methods of applying 5 S and Visual Controls techniques and tools in the manufacturing and office environments. Learn to maximize the benefits of red tag techniques, orderly work environment and visual workplace methodology.
September 23, 2008
IMA-MIT Event: Mentoring Skills for High Performance
DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
Participants will successfully establish mentoring relationships, ensuring optimal development skills for identified growth requirements. By the end of this workshop, the participants will: Determine the actions for creating an environment for mentoring; understand tools and approaches available to assist them in the development of the individual to be mentored; and, increase the effectiveness of their own mentoring skills.
October 3, 2008
IMA-MIT Event: World Class Customer Service Skills — DePaul University's O'Hare Campus, 3166 River Rd., Des Plaines
World Class Customer Service Skills is based upon proactive customer service skills rather than reactive. Rather than just responding to the customer's inquiry, the best customer service representatives strategically gain control of the inquiry (remember it's not just telephone calls anymore), predict the customer's position, and proactively provide the desired results in advance. Although this may sound like a rather obvious solution, it is very difficult to execute.
IMA-MIT EVENT: Failure Mode and
Effects Analysis (FMEA) —
October 6 — Decatur Conference Center & Hotel,
US Highway 36, Decatur
October 7 — DePaul University,
150 W. Warrenville Rd., Naperville
Learn to maximize the benefits of performing FMEA activities, eliminate or minimize effects of potential failures, gain ideas for other applications and learn about risk evaluation and management.
IMA-MIT Event: Problem Solving - 8D
October 13 — Decatur Conference Center & Hotel,
US Highway 36, Decatur
October 14 — DePaul University,
150 W. Warrenville Rd., 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.
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