Archive for June, 2009
June 26th, 2009
As Doug Hall, owner of EurekaRanch and a leading innovation guru has said, “If you ain’t unique, you better be cheap!” A large percentage of companies studied in the recent Next Generation Manufacturing Survey indicated that innovation was highly important to their business; however, they aren’t necessarily investing heavily in this area or even creating strong measurements to direct change and create goals for new product introductions. Results of new products introduced and % sales gained from new products indicates that companies probably aren’t satisfied with the results they are achieving in this area. The data suggests that smaller Illinois companies tend to invest more as a % of sales, although they tend to get the same sales results. Rockford companies surveyed indicated they invested a bit less and had fewer new product introductions when compared to Illinois companies that responded to the study. Perhaps there are inherent business differences between Rockford companies that responded vs. those that responded in the rest of the state, but we shouldn’t become complacent. New product introductions are a way to grow businesses and a way to differentiate yourself from the competition. We should continue to invest and seek out ways to improve in this area.
Source: IMEC
For Further Information, Contact:
Mary Hallock
Manufacturing Specialist
815-721-4474 Office
815-753-8729 Fax
mhallock@imec.org
June 26th, 2009
Congressman Don Manzullo (R-IL) will vote against the job-killing cap and tax bill when it comes to the House floor today because it will give foreign companies a huge competitive advantage over American manufacturers, putting 2.5 million more Americans out of work without ensuring a cleaner environment for future generations.
The legislation puts severe limits on energy usage in the United States and could double or triple energy costs for most American manufacturers, putting them at a huge disadvantage with their competitors from China, India and other foreign countries not required to comply with such limits. A study by the National Black Chamber of Commerce estimates the bill would devastate U.S. manufacturers, causing many to go overseas to avoid the energy taxes and putting 2.5 million Americans out of work by 2030.
Manzullo attempted to amend the bill to eliminate the International Climate Change Adaptation Program, which would give companies in China, India and other “developing nations” up to 4 percent of the overall allowable carbon credits, taking them away from U.S. manufacturers and forcing American companies to essentially pay for the continued pollution of their primary competitors in China and India. Democrat House leaders would not even allow Manzullo’s amendment to come to the floor for a vote.
In addition, the energy caps will cause the price of American-made products to surge along with the utility bills of American families. President Obama himself – while on the campaign trail last year – said his cap and trade bill would cause electricity rates to “necessarily skyrocket.”
“At a time when unemployment is over 10 percent in northern Illinois and many employers are struggling to survive, this misguided cap and tax bill will put millions more Americans out of work and surge utility costs for all Americans. And amazingly, it will not ensure a cleaner environment for future generations because the biggest polluters in the world – China and India – have indicated their desire to keep the pedal to the floor and continue polluting at will,” Manzullo said “Some scientists even say that if we completely eliminated all carbon emissions from the United States tomorrow, China and India would replace all of it in the atmosphere within 10 years. This is mind-boggling.”
Manzullo supports alternative legislation that promotes innovation, conservation, and responsible production of energy as a way to achieve America’s energy independence and a cleaner, healthier planet.
The American Energy Innovation Act represents a fiscally responsible approach to reducing our dependence on foreign energy, providing a cleaner environment, and putting Americans to work by:
- Encouraging innovation within the energy market to create the renewable fuel options and energy careers of tomorrow.
- Promoting greater conservation and efficiency by providing incentives for easing energy demand and creating a cleaner, more sustainable environment.
Increasing the production of American energy by responsibly utilizing all available resources and technologies and streamlining burdensome regulations.
June 25th, 2009
A study has just been completed, called the Next Generation Manufacturing Study, to understand how today’s manufacturers are positioning themselves for the anticipated recovery. The study, funded in part by IMEC was part of a national survey being sponsored by the American Small Manufacturers Coalition as a first step in a long-term effort to help Illinois and all U.S. manufacturers to weather today’s recession and improve manufacturing competitiveness over the next decade.
Manufacturers were surveyed on 6 areas crititcal to creating world class organizations - customer-focused innovation; advanced talent management; systemic continuous improvement; extended enterprise management; sustainable product and process development; and global engagement.
Manufacturers responded to how important these areas were to them, how many resources they were committing to these areas and what business results they were obtaining in each of the areas. I’ll cover results from each of the areas in separate articles.
Source: IMEC
For Further Information, Contact:
Mary Hallock
Manufacturing Specialist
815-721-4474 Office
815-753-8729 Fax
mhallock@imec.org
June 25th, 2009
The National Association of Manufacturers will consider House Members’ vote on contentious climate change legislation to be a “key vote” when the group rates lawmakers’ performance for the year, NAM announced on Thursday. The bill, which NAM opposes, is expected to hit the House floor on Friday. “While we support a number of the provisions of the legislation, after careful review, our concerns remain fundamentally unchanged from the initial draft,” NAM Executive Vice President Jay Timmons wrote. The legislation “will regulate and add cost to every one of our members, which already bear the burden of local, state and federal compliance cost through the Clean Air Act. Moreover, it allows Congress to select winners and losers through the distribution of allocations to industries.”
“Overall, the NAM official principles support the development and deployment of competitive clean energy technologies and robust energy efficiency improvements; however, our members do not support mandates on the use of specific, economically uncompetitive technologies,” Timmons continued. “The NAM supports policies that recognize the robust voluntary actions of industry to reduce energy intensity and improve efficiency to promote emissions reductions throughout the economy.”
NAM’s decision to consider Friday’s expected climate change vote as a “key vote” in its ratings of lawmakers comes amid apparent pressure by Rep. Melissa Bean (D-Ill.) and other pro-business Democrats on the group’s management to sit this round out. Earlier this year, NAM sided with Democratic leadership when it decided to “key vote” the stimulus package, a decision that caused considerable consternation for Senate Republicans.
“Manufacturers are committed to working with Congress to establish sensible and responsible federal climate change policies that reduce [greenhouse gas] emissions, but these policies must maintain a competitive playing field for American companies,” Timmons wrote.
The House on Friday is expected to vote on a cap-and-trade bill that will set pollution levels and create a private marketplace for the sale of offsets.
The vote is a result of a recent deal struck by Energy and Commerce Chairman Henry Waxman (D-Calif.) and Agriculture Chairman Collin Peterson (D-Minn.), which would put the new commodity under the jurisdiction of the U.S. Department of Agriculture and not the Environmental Protection Agency.
The National Federation of Independent Business and the National Association of Wholesaler-Distributors decided on Wednesday to “key-vote” it as well.
June 25, 2009, 3:50 p.m.
By Matthew Murray
Roll Call Staff
June 25th, 2009
Congressman Don Manzullo (R-IL) will try this week to strip an onerous provision from the cap and tax bill that would give companies in China and India the green light to keep polluting while making U.S. manufacturers pay for their emissions. The House is scheduled to vote on the bill Friday.
Manzullo will offer an amendment to eliminate the International Climate Change Adaptation Program, which would give up to 4 percent of all carbon emissions allowed under the bill each year to “developing nations,” including China and India as well as Brazil, Russia, South Africa, Mexico, South Korea, Indonesia, and others. U.S. manufacturers would thus have to pay more for their energy emissions to make up for the credits given to China and India, their primary competitors.
“This is a double whammy for American workers,” Manzullo said. “At its outset, cap and tax will surge energy prices for U.S. manufacturers and make them even less competitive with foreign countries. And to add insult to injury, American manufacturers will now have to pay for their competitors’ pollution. This bill will stick a dagger into the heart of U.S. manufacturing and put millions more Americans on the unemployment lines at a time they are struggling to hang on in this difficult economy. It’s mind-boggling what this government is doing to its people.”
Manzullo supports alternative legislation to cap and tax that promotes innovation, conservation, and responsible production of energy as a way to achieve America’s energy independence and a cleaner, healthier planet.
The American Energy Innovation Act represents a fiscally responsible approach to reducing our dependence on foreign energy, providing a cleaner environment, and putting Americans to work by:
- Encouraging innovation within the energy market to create the renewable fuel options and energy careers of tomorrow.
- Promoting greater conservation and efficiency by providing incentives for easing energy demand and creating a cleaner, more sustainable environment.
- Increasing the production of American energy by responsibly utilizing all available resources and technologies and streamlining burdensome regulations.
June 24th, 2009
I saw this article written by Jack & Suzy Welch. You remember him, Mr. Tornado from GE’s days of rock & roll change, head chopping, fire and close. It’s interesting that he has this assessment on the changes being made in Washington, especially the part about paying for them.
Now, Mr. Welch ought to know something about that. I also agree with him that if the economic growth projections indeed are more that the 70’s, 80’s and 90’s, then truly we’re being hoodwinked. They are unrealistic and they distort the reality of paying for all the programs being forced down our throats. Change
June 24th, 2009
Manufacturers’ orders for durable goods increased by 1.8% last month to a seasonally adjusted $163.92 billion, the Commerce Department said Wednesday.
Wall Street expected a big decrease. Economists surveyed by Dow Jones Newswires had projected orders in May would fall 0.8%.
Orders for nondefense capital goods excluding aircraft rose by 4.8%, after decreasing 2.9% in April. It was the largest increase since 8.2% in September 2004. The orders are closely tracked as a gauge of capital spending by businesses. Despite the big May increase, the recession has left the capital orders down sharply year over year. Companies have had difficulty getting financing. The commercial equipment financing sector saw its volume plunge in May, a trade group report Tuesday said. The Equipment Leasing and Finance Association’s monthly leasing and finance index fell by 41% compared to May 2008. The group blames tough credit conditions and a tightening of underwriting standards.
Durables are goods designed to last at least three years, such as computers and washing machines. April overall durables also rose 1.8%, revised up from a previously estimated 1.7% increase. Durables year to date are down 26.8%, in unadjusted terms, from the same period in 2008.
While manufacturing is suffering, it, like the entire economy, isn’t as bad as it had been. Because companies are purging inventory and not demanding so much and because consumers saddled with debt and afraid of being laid off aren’t spending so much, factories have lost a lot of steam. Industrial production fell 1.1% in May. But output was falling at about twice that rate at the end of 2008, when the recession apparently was at its deepest.
Manufacturers are still cutting inventory, Wednesday’s data showed. Manufacturers’ inventories of durable goods decreased in May 0.8%.
Unfilled manufacturers’ orders, a sign of future demand, decreased 0.3%. That’s the eighth drop in a row.
Demand for transportation-related durables last month rose 3.6%, after shooting up 6.2% in April. Orders for commercial planes jumped 68.1%. Military aircraft orders fell 1.7%.
Motor vehicles and parts decreased by 8.1%.
Excluding the transportation sector, orders for all other durables climbed by 1.1% in May. Orders rose 7.7% for machinery, 0.2% for primary metals, and 2.2% for computers and electronics. Fabricated metals fell 2.5% and orders dropped 1.1% for electrical equipment.
Demand ex-transportation had climbed 0.4% in April.
May capital goods orders increased by 9.5%. Non-defense capital goods — items meant to last 10 years or longer — rose by 10.0%.
Defense-related capital goods orders went up 7.4%. Orders for everything except defense goods increased by 1.4% in May, after going 0.6% higher in April.
Durable-goods shipments of manufacturers fell 2.1% last month.
Source: WSJ; 6-24-2009
June 23rd, 2009
Even though I should be napping because I started work at 4:30AM and will be leaving soon for the 12:01AM Transformer Movie I cannot nap because I have just been to FAST PITCH. What about an adrenaline rush!?! Dan Cataldi and Sherry Pritz and TEAM put on the most exciting event of the season in this region. I couldn’t miss it tonight! I got to hear an accomplished entrepreneur who sold his 10 year old company for $22M….(10) 3 minute FAST PITCH presentations and the two winners from last year speak….WOW! The energy in that room was inspirational! Just what I needed because after 18 years with SJTI we are still risking with a huge purchase that will arrive on multiple trucks next week….sometimes you need to be reminded that you are not the only crazy person risking…The rrstar was complimented for the coverage of this years event…check out the articles for more information. And if this economy has got you down or if you are out there living on the edge and you need to surround yourself with other like minded individuals….go to FAST PITCH next time or go see Dan Cataldi at Eigerlab—the Entrepreneur Center! He’ll get you connected and inspired.
June 23rd, 2009
The U.S. and the European Union on June 23 formally accused China of illegally hampering exports of raw materials in order to benefit its own manufacturers. See it here…. Exports
June 23rd, 2009
Upcoming events at the Eigerlab include Summer Interns, Fast Pitch Competition, OSHA and Ergonomics, Patents Workshop, Starting a Small Business in Illinois and Venture Club Meeting. See details here…try to attend them all! Eigerlog 6-24-2009
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