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BRIEFLY:
Manufacturing makes highest real GDP growth contribution
Since 2001, manufacturing made the highest contribution — 15 percent — of all sectors of the U.S. economy to GDP growth. Such data dominate the seventh edition of The Facts About Modern Manufacturing, published by the Washington, D.C.-based National Association of Manufacturers (NAM). Another statistically significant fact: manufacturing is responsible for more than 70 percent of private sector R&D. And another: manufactured goods account for more than 60 percent of U.S. exports.
A PDF copy of the publication can be obtained at: http://www.nam.org/s_nam/sec.asp?CID=201507&DID=229891
NAM launches new trade hotline
As a service to members, the NAM has established a system to make the trade compliance services of the U.S. government available to companies that feel they are affected by the trade practices of foreign governments that are in violation of their international commitments. NAM staff has consulted with offices within the government that deliver these services and has established an easily-accessible Trade Hotline (look for the red ringing phone on the Trade Homepage of the NAM website). By just clicking on the phone, NAM members can submit information on their problems and NAM staff will ensure that someone in the U.S. government will contact the company to try to resolve the problem. The NAM will follow-up to ensure that the company has been contacted and that someone is working on the issue. For further information, go to:
http://www.nam.org/tradehotline or contact the NAM's Patricia Mears at
pmears@nam.org.
Origin of Veterans Day
Veterans Day originated as "Armistice Day" on Nov. 11, 1919, the first anniversary of the end of World War I. Congress passed a resolution in 1926 for an annual observance, and Nov. 11 became a national holiday beginning in 1938. President Dwight D. Eisenhower signed legislation in 1954 to change the name to Veterans Day as a way to honor those who served in all American wars. The day has evolved into also honoring living military veterans with parades and speeches across the nation. A national ceremony takes place at the Tomb of the Unknowns at Arlington National Cemetery.
Source: U.S. Census Bureau
Vote on November 7th . . . it's your right, your privilege and your duty as a U.S. citizen
In less than one week, voters in Illinois and across the county will head to the polls and exercise their constitutional right to vote for the candidate of their choice. One only has to look at the historic fights for democracy around the world in recent years to understand and appreciate the freedom that we as Americans enjoy. America and our democracy work best when Americans vote and the business community can be a great motivator to inform the electorate.
Next week, the business community faces one of the most important elections in recent history. We have the opportunity to elect officials who understand and value the role of the manufacturing sector in Illinois. The decisions that we make at the polls will determine the course of both the United States and Illinois. Your votes will help determine the next Governor of Illinois, the makeup of Congress and the General Assembly, and decide whether Denny Hastert (R-IL) remains U.S. Speaker of the House.
Studies conducted by the federal Business & Industry PAC (BIPAC) indicate that employees trust and value the opinions of their employers more than labor unions or political parties. The Illinois employer community must continue its innovative involvement in grassroots and voter education programs — resulting in an educated and informed voter.
So, before the election, take a moment and let your employees know that voting is a right and a privilege, and its impact is powerful.
CEO and directors' pay and responsibilities increase
The Conference Board reports in its annual compensation studies
Median total compensation for outside (non-employee) directors of U.S. boards is higher than last year's median in all three major industry sectors covered in The Conference Board's annual study of outside director pay. CEO pay is also higher.
The study is based on a survey of the members of the Society of Corporate Secretaries and Governance Professionals and reports on directors' compensation and board practices in 402 companies.
"Demands on board members have increased markedly in recent years, and their compensation is increasing commensurately," says Charles Peck, compensation specialist at The Conference Board, the global business research and membership organization. "In particular, committee service, especially for those serving on audit and compensation committees, has become much more demanding."
In manufacturing, median total compensation for outside directors is now $109,000, up from $91,250 in 2005. The service sector is $106,250 this year, up from $81,875 last year. Financial services increased from $64,500 in 2005 to $83,000. Total compensation includes fees, retainers, committee pay, and all forms of stock compensation.
Median basic annual compensation (the mix of fees and retainers for board service plus committee pay) is up in all three industry sectors. Manufacturing increased from $59,150 to $65,000; financial services increased from $48,000 to $50,300; and services from $57,000 to $60,500.
CEO pay also rises
Median total compensation for U.S. CEOs was higher in all industries in 2005, the latest year for which data is available.
"Annual bonus plans, based on company profitability, generally paid off in 2005," says Peck. "Although somewhat deemphasized recently, stock options are still widely used. Restricted stock grants have been gaining in prominence."
Median total CEO compensation (salary, bonus and long-term pay) was highest in the construction industry at $2,604,000. It was lowest in computer services at $848,000. Total current compensation (salary plus bonus) was again highest in construction at $1,936,000 and lowest in computer services at $805,000. The highest median salary, $700,000, was in communications; lowest was computer services, which paid $441,000.
The report is based on data from 3,075 U.S. companies in 14 major industries and reports the compensation paid to the five highest-paid executives.
Sources: The 2006 Top Executive Compensation (Report No. 1394), Directors' Compensation and Board Practices in 2006 (Report No. 1396), The Conference Board
ETIP grants reimburse companies for employee training
The Employer Training Investment Program (ETIP) supports Illinois companies' efforts to upgrade workers' skills in order to remain current in new technologies and business practices. The ETIP grant will reimburse Illinois companies for up to 50 percent of the cost of eligible employee training taken between July 1, 2006 and June 30, 2007.
Illinois companies that are retraining/upgrading the skills of their existing workforce may be eligible for ETIP grants if they meet certain criteria.
In today's economy, with companies struggling to prevent lay-offs and closure, it is vital to maintain a competitive, high performance workforce. Training provides a competitive advantage and is considered by many as a prerequisite to building a stable workforce and achieving financial success.
Apply for grant funding today! For details, contact Judy Parker, IMA Director of Training at 217-522-1240 ext. 3036, or email
jparker@ima-net.org.
"Manufacturers are finding it increasingly difficult to maintain or increase profits . . ."
according to a recent article on manufacturing.net.
The IMA can help through the Recycling Expansion and Modernization (REM) grant which covers 75% of the cost of a Solid Waste Assessment. With a nominal ($5,000 maximum) cash match, your company can learn to reduce or eliminate solid waste streams and save thousands of dollars.
For more information, contact Judy Parker, IMA Director of Training, 217-522-1240, ext. 3036, or email
jparker@ima-net.org.
Chicago Business Barometer™ stumbles
While the October CHICAGO Report stumbled, only time will tell if the "stumble" is a one-month decline or the reinforcement of a trend. For the past two years, the Chicago Business Barometer irregularly trended away from growth toward stagnation. While the September report made the case for a recovering economy, October was a perfect storm of dashed expectations.
The declines in most indexes indicated only a slowing of several perspectives on the US economy. In fact, the three-month moving averages reinforced the message in the October report of a slowing economy. At another level, the trends are more serious, raising the possibility that adjustments to the current slowing can, in turn, trigger a "recession" in the future.
The "most worrying" rise in inventory levels last month was followed in October by an even larger rise in inventories. Last month we suggested that either businesses were expecting good times ahead, and building inventories to meet these expectations, or the economy was not as robust as it appeared otherwise. With slowing production, new orders, and shrinking order backlogs, the opportunities to painlessly bring inventories under control are limited. While employment grew much more slowly than production last month, this month's jump in the employment index raises the potential for layoffs in the future to bring employment in line with production. The slowing new orders index provides little evidence of the potential to grow out of the imbalances in inventories and employment.
As last month, fewer managers are reporting rising prices, so evidence of inflation pass-through continues to fade. While the report does not give a explicit reading of inflation and while it does not show anything better than a slowing in the breadth of price increases, the news is good news, regardless.
The buying policy measures continue to provide unique insights from the desks of purchasing managers. The shortening of lead times for production materials (modest), MRO supplies (dramatic), and capital equipment is consistent with economic weakness across the board. The three months of shortening capital equipment lead times is an early trend suggesting further falling demand.
The weakness in the October Business Barometer is best read in the context of the pattern of the last eight months of "up one month and down the next." Thus the October CHICAGO Report gives a view of the economy that is mixed, but that shows continued, but slower, growth. The near term trend (3 month moving average) documents less participation in the growth. With price increases less common among the surveyed businesses, the concern for "stagflation" is lessened, but not dispelled and the outlook for the next year remains even more guarded than last month.
Source: National Association of Purchasing Management — Chicago, Jack L. Bishop, Jr., Ph.D.
Now available . . . IMA 2006 Annual Compensation Report
Find out what other Illinois manufacturers are paying their employees. The 2006 Annual Compensation Report presents data for 188 manufacturing-related job titles — reported statewide and by six Illinois labor markets and various levels of employees and revenue.
We're sure you'll find the IMA's 2006 Compensation Report to be a valuable tool for determining fair and appropriate compensation levels for your business. If you have questions, contact Janie Stanley at 217-522-1240, ext. 3020 or email
jstanley@ima-net.org Online access, print, or both, order yours today at .
http://www.ima-net.org/reportorder/login.cfm
2005-2006 IMA Benefits Report available for sale . . .
The biennial Benefits Report contains data on employers' plans for a variety of different benefit plans in addition to total number of holidays provided and for additional paid holidays. To order the 2005-2006 Benefits Report, contact Janie Stanley at 800-875-4462, Ext. 3020, or e-mail
jstanley@ima-net.org.
DATES OF NOTE:
More events may be found at http://www.ima-net.org/calendar.cfm
November 8, 2006
IMA Event: Sales and Use Tax Seminar
Northern Illinois University - Naperville - 8:30 am–12:30 pm
Presenter: Joe Bigane, Senior Tax Partner in the Tax and Financial Services Division of Wolf & Company. This seminar is specific to manufacturers. Contact: Kimberly McNamara, 630-368-5300, ext. 2109, e-mail
kmcnamara@ima-net.org. Register at https://www.ima-net.org/tax_seminar.cfm
November 10, 2006
Leading and Managing Through Change
DePaul University – O'Hare Campus - 3166 River Road, DesPlaines
9:00 am–4:30 pm
This one-day interactive workshop combines proven leadership behaviors with practical skills for helping leaders respond to changes in today's changing and competitive environment. This event is limited to the first 30 registrations. Fees: $325 for IMA Members; $425 for non-members. Discounts available for multiple registrations. Contact: Judy Parker, phone: 217-522-1240, ext. 3036, e-mail
mailto:jparker@ima-net.org. Register at
https://www.ima-net.org/lmtc_seminar.cfm
November 14-15, 2006
Project Management Fundamentals
IMA Springfield Office, 212 E. Adams, Springfield
This 2-day course in real-work project management is for people who are looking to get a general understanding of project management. Designed for those with little or no formal project management training, this program sets the stage for participants to effectively manage multiple projects and is the prerequisite to advanced project management training. COST: $650 for IMA Members, $800 for non-members – includes instruction and all class materials, plus lunch and refreshments. Contact: Judy Parker, phone: 217-522-1240, ext. 3036, email:
jparker@ima-net.org. Register at: https://www.ima-net.org/pmf2_seminar.cfm
November 14, 2006
HR Basics Seminar–Oak Brook
Executive Plaza Conference Center,
1225 W. 22nd Street, Ste. 140 - 1–4:30 pm
Do you not have time to research the basics of HR Management, or do you just want to stay up-to-date on the latest employment law changes which could affect your role as HR manager or small business owner? If the answer is yes, then this seminar is for you. COST: $125 for IMA members, $100 for additional attendees from same company and $200 for non-members. Contact: Kimberly McNamara, 630-368-5300, ext. 2109, email
kmcnamara@ima-net.org
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