Manpower Inc. offers safety tips for National Safety Month
International Absorbents breaks ground on new facility
NAM report shows upswing for manufacturing sector
New jobless claims fall, old claims jump
SEC uncovers insider trading in small Wisconsin towns
BLS reports 15.7 percent decline in lost-worktime cases
Milwaukee Electric Tool wins ISMA American Eagle Award
Several power tools and accessories recalled
Durable goods orders fall 2.4 percent in April
Dow Corning, Wacker to form Asian joint venture
Kimberly-Clark donates bath tissue to best restrooms
Copperweld hires reorganization specialists
Tower Automotive to eliminate 250 Milwaukee workers
Innovative Eaton powertrain to be used in FedEx fleet
NAM praises Senators for asbestos legislation
Survey shows trends in quality management transitioning
ISM Semiannual Forecast reveals cautious optimism

Manpower Inc. offers safety tips for National Safety Month
Preventing accidents and injuries while on the job is of paramount concern to employers and employees. In observation of National Safety Month in June, Manpower Inc. offered tips for maintaining safety in the workplace.

"Workplace safety is a top priority at Manpower, and we work diligently with our customers to ensure that together we create safe environments that foster health and productivity," said Manpower environmental health and safety manager Brent Pickens. "Education and prevention are the best tools for saving both employers and employees from the consequences of a workplace accident."

National Safety Month is a good time for employers everywhere to review safe workplace measures. To assist in that effort, Manpower suggests three program areas employers should consider when addressing workplace safety:
• proactive injury and illness prevention;
• proactive hazard recognition; and
• effective return-to-work programs.

All levels of management must be on board in order for a safety program to be effective. Combined with education and training, they are at the heart of a proactive injury and illness prevention program. It's important for management to communicate safety rules and regulations to employees, regularly review these procedures and conduct safety training. Introducing safety measures during new employee orientation is imperative, and those messages should be repeated throughout the year with videos, training sessions and meetings to go over standard policies and introduce anything new that will enhance personal safety. In addition, make sure to solicit employee feedback for ways to improve any problem areas.

Proactive hazard recognition programs focus on education, training, empowerment and maintenance. The first step is informing employees of potential hazards and training them to react appropriately if they encounter such a situation. Then empower employees to monitor each other so everyone takes ownership of enforcing safety guidelines.

Once employees are educated and confident in their knowledge, focus on the actual work environment. Employers should assess workstations and make ergonomic adjustments that could prevent accidents and injury. In addition, employers should stress the importance of cleaning and maintenance not only for accident prevention, but also to ensure that equipment performs to its full potential.

In the event that an injury does occur, an effective return-to-work program is essential to an injured employee's mental and physical health. This program should be well documented and outline specific actions that need to be taken and who is responsible for overseeing each task. An employer should maintain regular contact with an employee who is away from work due to an injury to answer any questions they may have regarding benefits and to establish a return-to-work date.

It's possible an injured employee will not be able to return to his designated job right away. Employers should be open to temporarily placing injured employees in less strenuous jobs to accommodate any limitations resulting from an injury. It also prevents the employee from aggravating the existing injury.

"Every employee deserves a safe work environment," said Pickens. "When management and staff work together toward a common goal of safety, they can greatly reduce accidents and injuries."

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The 14-acre property includes an existing 41,000-square-foot warehouse building. The company is planning to add 25,000 square feet of manufacturing space and an additional 15,000 square feet of warehouse space. 

Major construction is slated to start in approximately 60 days. Initial costs for the facility, including property and property upgrades, plus construction of additional manufacturing and warehouse buildings, was estimated at $6.2 million. 

The warehousing space will be utilized as a regional distribution center to reduce freight costs on all of the company's products sold in the eastern U.S. and shipped to and from eastern ports.

"This new manufacturing and warehouse facility will more than fulfill our objectives of acquiring production and warehousing space closer to the majority of our customers, making our products more cost-effective and streamlining our distribution capabilities," said International Absorbents chairman Gordon L. Ellis. "It will also achieve our goal of increasing our production capacity to meet ongoing and projected growth for the near to mid- term."

International Absorbents Inc. develops, manufactures and markets oil and hazardous liquid spill cleanup and control, oil/water filtration, packaging, and retail/commercial pet bedding and litter.

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NAM report shows upswing for manufacturing sector
While the present economic picture is mixed, a number of positive trends may generate stronger economic growth later this year that will include an improvement in manufacturing, according to National Association of Manufacturers (NAM) president Jerry Jasinowski.

A recent NAM report on the state of the economy concedes that the economic picture is overcast at present. 

“Manufacturing production has been on the decline since last August; capital spending declined in the first quarter; unemployment rose to 6 percent and global growth is sluggish,” Jasinowski said. “All this paints a mixed picture of the economic landscape consistent with GDP growth less than 2 percent in the first half of the year and a manufacturing sector that remains stalled.”

However, the NAM conducted an informal survey of its membership this week that suggests a clear upward trend in orders. A full 40 percent of respondents reported increasing orders in May and only 24 percent reported falling orders.

“This is a significant improvement from a similar NAM survey in April when 56 percent of responding NAM member companies reported declining orders for the month,” said NAM chief economist David Huether. “For June, 43 percent expect orders to increase while those expecting lower orders declined to just 12 percent. This signals that conditions are gradually improving in manufacturing and conform to our outlook that manufacturing production should begin to recover in the third quarter.”

The NAM outlook paper concludes that forces are aligning for faster economic growth in the second half of the year.  

“An analysis of the mixed positive and negative forces impacting manufacturing suggests that low inventories, improving credit conditions, lower energy prices, a more competitive dollar exchange rate, increased defense spending, and tax cuts will improve business and manufacturing in the months ahead,” Jasinowski said. “A reduction in business uncertainty and sharply higher consumer confidence will also improve the economic environment."

View the economic outlook in detail.

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New jobless claims fall, old claims jump
New claims for unemployment insurance declined by 9,000 to reach 424,000 for the week ended May 24, according to the Labor Department. During the prior week, new claims increased by 7,000.

The four-week moving average of new claims also fell from 434,250 for the period ended May 17 to 427,000 for the week ended May 24.

Economists generally rely on the four-week average as the more accurate measure, because its smoothes out fluctuations in the weekly statistics.

The four-week average has topped the key 400,000 mark for 13 consecutive weeks with this report. The 400,000 mark designates a weak job market, according to economists.

The number of workers remaining on state unemployment insurance surged by 83,000 to 3.76 million for the week ended May 17. It's the highest that number has been since the week of Nov. 17, 2001, shortly after the terrorist attacks on the World Trade Center in New York.

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SEC uncovers insider trading in small Wisconsin towns
Two factory workers in Wisconsin illegally earned more than $1.4 million using information purchased from two other workers at the printing company where BusinessWeek magazine prints, according to a report from the Milwaukee Journal-Sentinel by Paul Gores and Kathleen Gallagher.

The factory workers, Gregory J. Misfeldt of Fort Atkinson, Wis., and Gregory L. Tyrer of Watertown, Wis., paid two workers from printer Perry Judd's Inc. to divulge stock information from the magazine's "Inside Wall Street" column before the information reached the public.

Misfeldt and Tyrer would buy stocks the column praised and then sell those stocks after the information hit, generally receiving a favorable profit. Misfeldt made $346,808 and Tyrer made a little more than $1.06 million between June 1997 and January 1999.

The Securities and Exchange Commission (SEC) caught on to the scheme while looking at records from a different case. The SEC said both of the inside traders will repay the money they illegally earned, plus interest, which amounts to nearly $1.9 million. Federal charges have been filed; Misfeldt and Tyrer could spend up to five years in prison.

The two workers who provided the information, Jodi L. Knueppel of Lake Mills, Wis., and Mark R. Sonday, will pay back the estimated $10,000 they received for the information, plus interest.

"A lot of people think insider trading is just something millionaires do, but here you've got some regular people who found a way to get insider information and went to town with it," SEC assistant regional director in New York Caren N. Pennington told the newspaper.

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BLS reports 15.7 percent decline in lost-worktime cases
The number of lost-worktime injuries and illnesses reported by private industry declined to 1.54 million in 2001 from 1.66 million in 2000 and 1.7 million in 1999, the Bureau of Labor Statistics announced recently in a research report.

Reported injuries and illnesses steadily declined since 1992, when the bureau began this in-depth statistical series. For a reference point, 2.24 million injury and illness cases were reported in 1994, nearly 700,000 more than in 2001.

The manufacturing industry helped fuel the upbeat trend. Illnesses and injuries reported by manufacturing companies totaled 317,300 during 2001 - an improvement of 59,300 (15.7 percent) from 2000, when 376,600 cases were reported, and 86,300 (21.4 percent) from 1999, when 403,600 cases were reported.

Manufacturing industry cases comprised 20.6 percent of all private industry cases in 2001, compared with 22.6 percent in 2000 and 23.6 percent in 1999.

The statistical improvements are important for the manufacturing industry because healthy workers are more productive, and time off for injured or ill workers can be lengthy.

For manufacturing, 22.3 percent of all cases in 2001 required the injured or ill worker to miss 31 or more days of work (compared with 20.1 in 2000). A total of 41 percent of cases kept the worker out at least 11 days (38.7 in 2000). The average time away from work was seven days.

Musculoskeletal disorders (MSDs) accounted for 37.7 percent of all manufacturing-related cases (37.3 in 2000). These injuries, on average, led to a 10-day absence.

MSDs are defined as an injury or disorder of the muscles, nerves, tendons, joints, cartilage or spinal discs. They don’t include disorders caused by slips, trips, falls or similar accidents.

Carpal tunnel syndrome and tendonitis, which could fall under the heading of repetitive motion disorders, comprised 16,800 (5.3 percent) of total manufacturing injuries and illnesses in 2001.

Other telling manufacturing statistics from the BLS report include:
• The average manufacturing worker reporting an injury or illness in 2001 was a white, non-Hispanic (54 percent) male (75.1 percent) with less than five years of job experience (55.2 percent).
• Operators, fabricators and laborers were most likely to report an injury or illness (70.5 percent).
• Workers age 24 or younger reported 32,999 injuries/illnesses.
• Approximately 123,000 reported injuries were the result of sprains or strains (38.8 percent).
• Body parts most affected by injuries or illnesses were the back (20.9 percent), finger (12.7), wrist (7.0), knee (6.7) and shoulder (6.4).
• 1.3 percent of cases (a total of 4,125) involved amputations.

The report “brings some detail to the good news we first announced in December 2002, that overall workplace injuries and illnesses requiring time away from work have continued their steady decline for the 10th consecutive year,” said Labor Secretary Elaine L. Chao. “The detailed information will help us better target our outreach and enforcement efforts in those industries that have more work to do to bring their injury and illness rates down.

“While we have recorded some successes in our fight, we still have much to do. There are too many hard-working people injured on the job every day. Our goal is to continue and accelerate this decline so that workers can count on going to safe, healthful, hazard-free workplaces every day.”

For more information on the Bureau of Labor Statistics or to download the full 2001 report, visit www.bls.gov/iif.

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Milwaukee Electric Tool wins ISMA American Eagle Award
Milwaukee Electric Tool Corp. received the prestigious American Eagle Award from the Industrial Supply Manufacturers Association (ISMA) on May 18 in New Orleans.

Milwaukee president and CEO Daniel Perry accepted the award that recognizes corporate activities that best promote the principles of the American free-enterprise system. This is the second consecutive time Milwaukee won the overall award, which is in its twenty-eighth year.

“We take our role as leaders of the American free-enterprise system, as well as leaders in the communities we live and work in, very seriously,” said Perry. “Our employees enjoy working as representatives of Milwaukee Electric Tool and also look forward to contributing individually to make a difference in the lives of those in need.”

Since the American Eagle Awards program was established in 1975, more than $100,000 in scholarship funds have been awarded and more than 400 manufacturers and distributors participated in the competition.

The awards program recognizes companies that have best demonstrated the benefits of a free enterprise system to their respective communities and/or employees. Milwaukee was chosen from among 600 U.S. manufacturers. About 40 of them submitted entries for this award.

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Several power tools and accessories recalled
Recalls were announced recently for the following power tools and power tool accessories:

Battery chargers: Bosch recalled nearly 2 million Skil Warrior drill battery chargers. The transformer inside the charger can overheat and pose a fire hazard.

The recall includes 9.6-volt, 12-volt, 14.4-volt and 18-volt chargers included with Skil Warrior drill models 2375, 2380, 2475, 2480, 2482, 2580, 2582 and 2882, and chargers sold separately with model numbers 92950, 92970, 92980 and 92990 with part number 2610995852.

If you have one of these chargers, sold between July 1994 and February 2003, call to receive a free replacement drill and charger.

Orbital sanders: Makita recalled close to 350,000 electric orbital sanders. The pads on the sanders can break apart during use and strike the operator, posing an injury hazard.

The recalled sanders include the BO5000 and BO5001 model numbers, which can be found on the silver nameplate on the sander’s body. These sanders were sold between April 1992 and February 2003.

If you have one of these sanders, stop using it and call to initiate a free repair.

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Durable goods orders fall 2.4 percent in April
New orders for manufactured durable goods decreased in April by $4.2 billion, or 2.4 percent, to $168.9 billion, according to the Department of Commerce. This followed an increase in March of 1.4 percent.

Year-to-date, new orders for 2003 increased 0.6 percent over the same period a year ago.

New orders for primary metals, and computers and related products, provided a bright spot in an otherwise bleak landscape, increasing 1.3 percent and 15.3 percent, respectively.

New orders for fabricated metal products slipped 1.3 percent and new orders for machinery declined 3.7 percent. New orders for computers and electronic products did not change.

Orders for motor vehicles and parts fell 3 percent during the month, following a 1.6 percent decline in March. And, orders for capital equipment dropped 3.4 percent, slicing into a 5.1 percent increase experience the month before.

New orders were buoyed in large part by a 48.6 percent increase in orders for nondefense aircraft and parts.

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Dow Corning, Wacker to form Asian joint venture
Dow Corning Corp. and Wacker Chemie GmbH announced their intent to form a joint venture in Asia. They intend to manufacture silicone intermediates and fumed silica used in thousands of finished products for industrial and consumer applications, from construction and lubricants to electronics and others products.

The companies would jointly develop world-class manufacturing of basic materials. Each company would bring its unique expertise and technology to develop what is planned to be a leading, fully integrated site for silicone intermediates and silica in Asia.

The companies believe that the cost and quality advantages of an integrated site in the region would benefit local customers and help further develop local markets and communities.

Dow Corning and Wacker would independently develop and operate manufacturing facilities for finished products at the same site. Each company would continue to compete and operate independently in the marketplace inside and outside of Asia.

"Dow Corning has had a physical presence throughout Asia for many years and this new move demonstrates ongoing commitment to our customers in the region," said Dow Corning chairman and CEO Gary E. Anderson. "Asia is critical to the growth of silicon-based materials in the 21st century, and this alliance is very exciting."

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Copperweld hires reorganization specialists
Copperweld Corp. hired two experienced business restructuring specialists to assist the steel tubing and bimetallic products firm in developing a reorganization plan to emerge from bankruptcy.

James A. Loveland became chief restructuring officer and James R. Smith will serve as interim chief financial officer. Dennis McGlone, who joined Copperweld in 2001, will continue as president and chief operating officer. McGlone also formed the office of the president to lead the company's restructuring in connection with its plan of reorganization.

Loveland has had diversified experience in executive management, international operations, strategic planning, sales and manufacturing. Since 2000 he focused on business restructuring assignments as a management consultant.

Previously, he served for nine years as president and CEO of Worldsource Coil Coating and five years as president and chief operating officer of Continental Copper & Steel Inc.

Smith is an experienced chief financial officer with recent emphasis on business turnaround situations. He served for more than 25 years as a senior financial officer in the chemicals, building products and steel processing industries.

His executive assignments included serving as vice president and board member of Worldsource Coil Coating Inc.; senior vice president and board member of Amerimark Building Products; and vice president and chief financial officer of Grace Specialty Chemicals.

Copperweld is the largest producer of steel tubing in North America, with 14 plants in the U.S. and Canada. It is also the world's largest manufacturer of bimetallic wire products at two plants in the U.S. and the United Kingdom. The company is headquartered in Pittsburgh and employs 2,900 people.

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Kimberly-Clark donates bath tissue to best restrooms
Kimberly-Clark Professional donated a year's supply of bath tissue to two of the "World's Best Bathrooms," Pasha Restaurant and Club in Chicago, and Sloan's Ice Cream Parlor in West Palm Beach, Fla.

The donation reflects Kimberly-Clark Professional's commitment to helping businesses enhance personal health and hygiene.

"It's encouraging to see more and more businesses take such pride in their restrooms," said Kimberly-Clark Professional tissue category manager Jan Gottesman. "Not only are these restrooms modern and hip, but their cleanliness and attention to detail also demonstrate a great respect for the customer."

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This action is part of the company's continued efforts to improve its cost structure and return on invested capital.

"We deeply regret the adverse impact this action will have on our Milwaukee colleagues, but we are focused on continually improving our enterprise-wide efficiency," said Tower Automotive CEO Dug Campbell. "This action will result in improved returns on an existing frame platform."

The relocation of the Milwaukee Ranger production line will be completed by June 2004. The company expects to realize annual cash savings, related primarily to reduced labor costs, of approximately $10 million following full completion of the move.

Approximately 250 salaried and hourly colleagues in Milwaukee will be affected by the decision. Tower Automotive will continue to employ approximately 560 colleagues at the Milwaukee location. The company employs approximately 12,000 worldwide.

As a result of this move, the company will record pre-tax charges in the estimated range of $40 million to $50 million, or 47 cents to 59 cents per share (after-tax), over the next 12 months as the costs are incurred under the new accounting standards.

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Innovative Eaton powertrain to be used in FedEx fleet
Eaton Corp. will manufacture the hybrid electric powertrain for a small fleet of 20 FedEx Corp. delivery vehicles slated to hit the streets in late 2003 and early 2004.

The FedEx OptiFleet E700 hybrid electric vehicle will decrease particulate emissions by 90 percent, reduce smog-causing emissions by 75 percent and increase fuel efficiency by 50 percent.

"This hybrid electric truck demonstrates that technology is available now to begin to achieve environmental goals and meet our operational requirements," said FedEx Express president David J. Bronczek. "The environmental and business gains of this project signal a revolution in truck technology and set a new standard for the industry."

The 20 vehicles will begin operation in four yet-to-be-named U.S. cities and will endure real-world FedEx operating conditions to verify and prove their viability in commercial applications. This program has the potential to replace the company's 30,000 medium-duty trucks over the next 10 years.

Eaton's hybrid-electric powertrain combines a diesel engine and electric motor to drive the vehicle. A computer determines the most efficient combination, depending on current operating conditions and driver demand. 

A four-cylinder engine replaces the six-cylinder version currently used in the FedEx Express W700 delivery vehicle. The engine size is reduced because of the added power provided by the electric motor. A particulate trap has been added to the truck to further reduce emissions.

Lithium-ion batteries capture and store energy during the "regenerative braking" phase of the vehicle's operation, providing a source of stored electric power for the motor during future acceleration. Therefore, all electrical charging of the battery is provided by the hybrid electric powertrain, and no external electrical infrastructure, such as a power cord or electrical outlet, is needed.

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NAM praises Senators for asbestos legislation
The National Association of Manufacturers praised Senate Judiciary Committee chairman Orrin Hatch, R-Utah, along with Sens. Ben Nelson, D-Neb.; George Voinovich, R-Ohio; Zell Miller, D-Ga.; Mike DeWine, R-Ohio; and George Allen, R-Va.; for introducing legislation May 22 to resolve the nation’s asbestos liability crisis.

“We’re closer than we’ve ever been to resolving this massive problem, and it’s due primarily to the relentless determination of Orrin Hatch as well as the obvious commitment of Ben Nelson and the other co-sponsors,” said NAM general counsel Jan Amundson. “For our part, we’re determined to work with everyone involved with this crisis as long as it takes to achieve a meaningful resolution.”

Asbestos liability drove nearly 70 companies into bankruptcy and wiped out 60,000 jobs and countless pensions and other benefits. Meanwhile, the overburdened court system is unprepared to provide timely compensation for genuinely ill victims or fairly apportion the burden of paying their claims.

“We know this bill will go through changes before it gets to the Senate floor, and that there are important issues still to be resolved, but Sen. Hatch has provided a critical legislative starting point,” said Amundson.

The NAM leads The Asbestos Alliance, a coalition that includes more than 200 companies, insurers, trade associations and other groups.

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A study from research and consulting firm Best Practices LLC revealed certification trends and practices, quality organization structures, and the benefits of single registrar relationships. The study profiled 37 manufacturing companies from electronic, chemical, technology and health care industries. 

Top findings from the survey include:
• Seventy-five percent of surveyed companies currently certified to ISO 9000:1994 are planning to transition to ISO 9001:2000 before Dec. 15.
• Companies tend to centralize and standardize most quality functions, including management systems and audit operations.
• More than half of surveyed companies - 60 percent - employ a single registrar for the entire business. Benefits include increased cost savings, greater convenience and increased consistency.

Visit this link to download an excerpt of the recent Quality Trends & Certification survey.

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ISM Semiannual Forecast reveals cautious optimism
Economic growth will continue in the second half of 2003, according to the nation's purchasing and supply executives in the Institute for Supply Management's 65th Semiannual Forecast.

The report showed that the current operating rate is 79 percent of normal capacity, and production capacity will increase 1.9 percent during 2003. Capital expenditures will decline 3.1 percent in the same period.

Prices manufacturers pay have increased 0.2 percent from the end of 2002 to present, but they will decrease 0.3 percent during the second half of the year. Overall, prices are expected to decrease by 0.1 percent for all of 2003.

From a labor standpoint, costs for workers and benefits will increase at a 2.3 percent rate in 2003, and manufacturing employment will decline an additional 0.5 percent by the end of the year.

The U.S. dollar is expected to remain strong vs. other major currencies. Both imports and exports will continue to grow in 2003, and manufacturing revenues will be up by 1.9 percent for the year.

Major concerns to manufacturers include: a weak economy, labor and benefits costs, the effects of war and other geopolitical concerns, energy costs, and inflation and interest rates.

Overall, the survey showed that the attitude of manufacturing management is more optimistic with expectations that the sector will improve during the second half of the year.

Read the full report.

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