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BRIEFLY:
Illinois lost 200,000 manufacturing jobs since 2000
Illinois has lost 200,600 manufacturing jobs since January 1, 2000 according to the latest statistics from the federal Labor Department. The September employment numbers show that the state's manufacturing sector now employs 677,100, down 2,600 from August and down more than 5,000 since September 2006. In January 2000, manufacturing employed 877,700 workers. While a number of jobs were lost following the 2001 recession, manufacturing has not rebounded, as have other sectors. Since Governor Rod Blagojevich took office in January 2003, industry has shed 56,800 jobs, more than a quarter of the total jobs lost during a relative expanding economy.
Manufacturing & Innovation — Enhancing Business Value in a Global Community
The IMA and member company RSM McGladrey present this half-day Manufacturing and Wholesale Distribution Summit in Peoria on November 29. The summit will focus on critical areas for manufacturers including an update on mergers and acquisitions (M&A).
Keynote speakers include:
- Tom Murphy, Executive Vice President, National Manufacturing & Wholesale Distribution, RSM
McGladrey;
- Bill Canis, Acting President of the Manufacturing Institute; and
- Greg Baise, President & CEO of the Illinois Manufacturers' Association.
M&A Panel guests include:
- Jim O'Donnell (Moderator), President of O'Donnell Capital
- Bill Shiry, Managing Director RSM Equico
- Pat Martin, Rock Island Capital
- Julie Nimmons, Chairman of The Board for Schutt Holdings, Inc.
Breakfast and lunch are included in the discounted $40 IMA member registration fee. The conference runs from 8:00 am- 1:00 pm at the Par-a-Dice Hotel, East Peoria, Illinois.
Call Kimberly McNamara today 800/875-4462, Ext. 2109 to reserve your space, or register on our web site at
https://www.ima-net.org/innovate_seminar.cfm.
IMA 2007 Annual Meeting * Friday, December 7, 2007
Hotel InterContinental * Chicago
Keynote address by Chicago Mayor Richard M. Daley
Sign up today at: www.ima-net.org/annual07.cfm
PWC: Optimism in the U.S. economy falls sharply among industrial manufacturers
Optimism in the U.S. economy dropped significantly among industrial manufacturers during the third quarter of this year, according to PricewaterhouseCoopers' (PWC) Manufacturing Barometer. Less than half of those surveyed — 45 percent — are optimistic about the domestic economy, a 17-point drop from the 62 percent level of optimism reported last quarter.
Consistent with previous quarters, high oil and energy prices are the most likely barrier to growth during the next 12 months, cited by 57 percent of the respondents. However, lack of demand (cited by 53 percent), legislative/regulatory pressures (50 percent) and decreasing profitability (48 percent) all showed significant increases as potential barriers to future growth.
International markets remain strong for U.S.-based industrial manufacturers with more than three-quarters (79 percent) expressing optimism about the world economy during the next 12 months. Two-thirds (67 percent) of those who sell abroad increased their international sales in the most recent quarter.
The majority of manufacturers are scaling back plans for major new investments during the next 12 months. Only 42 percent are planning new initiatives during the next year, a decrease from 57 percent citing plans for major investments last quarter. However, the average percent of revenue put aside for major new investments remains high at 8.7 percent. Those who are investing are looking to spend more on information technology (IT) — a trend that continues into the third quarter, with 57 percent planning to expand their IT capabilities.
A little more than half (52 percent) plan to add new workers over the next 12 months, consistent with hiring plans from the previous quarter. They are concerned about the availability of talent, however, with 37 percent citing a lack of qualified workers as a potential barrier to future growth.
"The health of the U.S. economy is definitely in question," says Barry Misthal, partner and industrial manufacturing sector leader, PWC. "The strong international market has allowed companies to be moderately bullish about their own companies' prospects during the next year, and these companies have maintained interest in new hiring as a result. While September and October are traditionally volatile months for the marketplace, it will be important to see how things play out in the fourth quarter of this year."
For access to the complete Manufacturing Barometer report, please visit http://www.pwc.com/manufacturing.
PricewaterhouseCoopers' "Manufacturing Barometer" is developed and compiled with assistance from the opinion and economic research firm of BSI Global Research, Inc.
Most governors understand travel required to grow economy
We've all seen the headlines: "Honda to build in Indiana," "Toyota chooses Alabama," "New power plant planned for Kentucky," Iowa chosen for German wind farm," and the list goes on.
According to a recent Lee Enterprises news story by Kurt Erickson, the governors of a number of midwestern states have traveled extensively to foreign lands like Japan, Germany and the Far East over the last four years to spur economic growth back home.
However, Illinois governor Rod Blagojevich has yet to venture outside Illinois' borders since first taking office in January 2003, and according to state officials, the governor has no plans to begin such efforts anytime soon.
Are such trips necessary?
"Governor Edgar curtailed these types of trips, although he did take some," Erickson said. "Edgar told me however that in countries where government exercises strict control over industry it takes another government official to open the doors for economic development."
Governors of states surrounding Illinois are actively traveling to seek new employers, tout exports and gain investments for their states.
Governor Matt Blunt of Missouri has traveled to Mexico, Italy, and France; Governor Jim Doyle of Wisconsin has visited China, Japan and Eastern Europe; Governor Mitch Daniels of Indiana has visited Japan, Europe, Asia and Taiwan; Iowa's Governor Chet Culver has traveled extensively throughout Europe.
And Indiana officials say there are tangible results from such travels.
According to a study by the Consulate General of Japan's Chicago office, Japanese companies employed more workers in Indiana than in any other Midwestern state in 2006. Interestingly, Indiana's population is less than half that of Illinois.
According to the article, Governor Blagojevich's current strategy is to have officials at the Illinois Department of Commerce and Economic Opportunity serve as his stand-in while he stays in Illinois, according to a spokesperson at the Department of Commerce and Economic Opportunity.
Generally, foreign travel has not been without controversy and has met with some disapproval in the past, according to Erickson, but some have devised innovative ways to blunt the criticism.
"In Missouri, more than two dozen entities have banded together to create the Hawthorne Foundation to privately fund economic development trips," Erickson said. "No taxpayer funds are used and much of the concern over the best use of public funds is therefore averted."
While Governor Blagojevich has no travel plans in the immediate future, the administration says Blagojevich might travel to India sometime before the end of this term which expires in 2011.
Reports: State revenues show continued weakening of sales tax receipts
Excluding $300 million in cash flow transfers stemming from the state's Hospital Assessment plan, two new state reports say total general funds revenues in Illinois jumped $345 million in October. Increased receipts from federal sources comprised the majority of that increase [$175 million], but a good month for transfers as well as continued strong performance from personal income taxes contributed to the monthly gain.
Meanwhile, both gross corporate income taxes and sales taxes again suffered monthly declines. Gross corporate income tax fell $23 million, or $19 million net of refunds, while sales tax dipped $3 million. October marks the eighth time in the last nine months that sales tax receipts have failed to match the same prior year levels, reinforcing the concerns spelled out in last months revenue briefing about whether state revenues will be able to keep pace with spending.
The Commission on Government Forecasting and Accountability, the bipartisan economic forecasting arm of the Illinois General Assembly, and Comptroller Dan Hynes have issued reports warning that income from some state revenues—particularly the sales tax—could continue to be lower than expected and unless things turn around, and neither report was optimistic that will happen, the state could be facing significant shortfalls before the budget year ends next June 30.
According to the Comptroller's Office, the state could end the year with the biggest backlog of unpaid bills since the 2003 budget year. That was during the first six months of Gov. Rod Blagojevich's first term.
Despite softening in manufacturing sector, CFOs see improving outlook for remainder of 2007
While recent news from the manufacturing sector isn't bullish, 42 percent of chief financial officers (CFOs) and senior comptrollers at manufacturing companies project that their financial prospects will improve through the remainder of 2007, according to a survey by Grant Thornton LLP, the U.S. member firm of Grant Thornton International.
Some 46 percent of CFOs project that their financial outlook will remain the same through 2007 and only 12 percent see their performance worsening. The data is derived from 48 manufacturing industry CFOs in a survey of 221 CFOs across a variety of industries.
Despite some positive outlooks, CFOs don't appear to be pegging their improved performance over the remainder of 2007 to price increases, since only 29 percent are projecting price or fee increases. The majority — 58 percent — are keeping fees and prices at current levels, while about 13 percent are projecting price or fee increases.
Half of the manufacturers participating in the survey are not boosting headcounts, but some 31 percent project some new hiring. About 19 percent are projecting to decrease their company's headcount.
Other survey highlights from manufacturing CFOs:
- 81 percent do not provide health care benefits to retirees;
- 85 percent will not be reducing health care benefits during the next 12 months;
- 67 percent of manufacturing CFOs would like to rise to the CEO level;
- 33 percent believe that their current CEO is being overpaid (including total pay and benefits); and
- 57 percent believe that shareholders in public companies should have greater access to the proxy.
Grant Thornton LLP is the U.S. member firm of Grant Thornton International, one of the six global accounting, tax and business advisory organizations. Visit Grant Thornton LLP at http://www.GrantThornton.com.
Join the IMA Energy Program . . .
IMA members looking to compare their electric supply options can go to http://www.newenergy.com/control 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!
Annual Holiday Survey Report . . . now ONLINE!
http://www.ima-net.org/08IMAHolidayRpt.pdf
The IMA's Annual Holiday Report highlights employers' plans on select holidays throughout the year. This year's survey was conducted from August 10-31, 2007 for the 2008 calendar year. Four questions were asked ranging from total number of paid days off to a breakdown of full or half day paid holidays, and on which days the member company is actually closed throughout the year. Nearly 450 IMA members responded.
For the results, visit http://www.ima-net.org/08IMAHolidayRpt.pdf.
The IMA's new strategic partnership with Heritage-Crystal Clean (HCC) caters to your company's environmental needs. Big savings are available to IMA members. To learn more, contact HCC's Jim Skelton at jim.skelton@crystal-clean.com, call 847-783-5110 or visit: www.crystal-clean.com.
IMA's Recycling Expansion & Modernization (REM) grant ...
The Illinois Department of Commerce and Economic Opportunities wants to help Illinois companies deal with the issue of reducing waste through the Recycling Expansion and Modernization (REM) Grant Program. Through this grant, the Illinois Manufacturers' Association can offer your company a solid-waste assessment at 25 percent of the actual cost; the grant pays the remaining 75 percent. Join the growing number of companies that are on the path to becoming green. Find out how easy it is to participate in the IMA's REM grant program. It's an investment in your future — one that will reap perpetual rewards for your business and your community.
For more information, contact Judy Parker, IMA Director of Training, 217-522-1240, ext. 3036, or email
jparker@ima-net.org.
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
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
November 7, 2007
IMA Annual Sales Tax Seminar
NIU –Naperville
Joe Bigane, a tax expert will update on current sales and use tax laws specific to manufacturing. For more information or to register, visit
https://www.ima-net.org/tax_seminar.cfm
November 9, 2007
Leadership Skills for Leaders
of Latino Employees
DePaul University's O'Hare Campus,
3166 River Road, Des Plaines
Find out what motivates Latino employees and how to help them work as a team. Develop Latino supervisors. Discover differences among Latinos based on country and city of origin, and considerations for female managers of Latinos. Improve recruiting, hiring and retention among Latinos. For information, visit
https://www.ima-net.org/MIT/lsl.cfm.
Failure Mode and Effects
Analysis (FMEA)
November 12, 2007— DECATUR
952 E. Eldorado, Suite 102
and
November 13, 2007 — NAPERVILLE
DePaul University,
150 W. Warrenville Rd.
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. Sign up today at
https://www.ima-net.org/MIT/fmea.cfm
November 13, 2007
HR Networking Forum (9:30-11:30 am)
Oak Brook Executive Plaza
1225 W. 22nd St., Suite 140
Back by popular demand, this free HR Networking Forum is designed for building relationships with other HR professionals in the manufacturing field. FREE. Sign up today at:
https://www.ima-net.org/1107_seminar.cfm.
November 13, 2007
Workplace Trends: Immigration, NLRB & EEO (1:00-4:30 pm)
Oak Brook Executive Plaza,
1225 W. 22nd St., Suite 140
Three employment law experts from the law firm of Vedder Price Kaufman & Kammholz, P.C., will discuss trends, cases and new legislation including: "New Business Immigration Regulations and the Extra Burdens for Employers," and "Recent Labor Board and EEO Developments Affecting
Employers." Bring your personnel/human resources questions. COST: $125 for IMA members; $100 for each additional attendee from the same company and $200 for non-members. Sign up today at:
https://www.ima-net.org/1107_seminar.cfm.
5S and Visual Controls
November 29, 2007
952 E. Eldorado, Suite 102, Decatur
and
November 30, 2007
DePaul University,
150 W. Warrenville Road, Naperville
This workshop will focus on effective methods of applying 5S 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. Sign up today at:
https://www.ima-net.org/MIT/5svc.cfm
November 29, 2007
Manufacturing & Innovation—Enhancing Business Value in a Global Community
Par-a-Dice Hotel, East Peoria, Illinois, 8:00 am–1:00 pm
IMA member company RSM McGladrey presents this half-day Manufacturing and Wholesale Distribution Summit. Learn business building ideas; hear experts on topics that impact your business. Keynote speakers include Tom Murphy, Executive Vice President, National Manufacturing & Wholesale Distribution, RSM McGladrey; Bill Canis, Acting President of the Manufacturing Institute and Greg Baise, President & CEO of the Illinois Manufacturers' Association. Register at:
https://www.ima-net.org/innovate_seminar.cfm
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