Manufacturers Alliance/MAPI index predicts expansion
NSF funds nanoscience learning and teaching center
Employment survey dips for manufacturers
Good things come to those who wait
Small Wisconsin manufacturer testifies before Senate
GM wins award for focus on diversity
Jobless claims plummet for week ended Oct. 2
ASSE survey reveals compensation among safety engineers
Channellock's trade-up promotion helps community
Factory goods orders falter in August
WMEP brings $118 million in manufacturing improvements
Planned job cuts surge in latest employment survey
OSHA cites Durable Inc. for safety hazards

Manufacturers Alliance/MAPI index predicts expansion
The manufacturing expansion is expected to continue over the next three to six months, according to the quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook.

The September 2004 composite index of 75, while retrenching slightly from an all-time high of 80 in June 2004, nevertheless signals strength in the manufacturing sector and remains high relative to an historical trend over the past 13 years.

The survey reflects the views on current and future business conditions of 62 senior financial executives representing a broad range of manufacturing industries. While a variety of indexes are included in the survey, the business outlook index is a weighted sum of shipments, backlogs, inventories and profit margin indexes.

A composite business index above 50 indicates that overall manufacturing activity is expected to increase over the next three months. It should be noted that the index measures the direction of change rather than the absolute strength of activity in manufacturing.

“Overall, the business outlook indexes are high in absolute terms and point to continued expansion of manufacturing sector activity,” said Daniel J. Meckstroth, chief economist for Manufacturers Alliance/MAPI. “While the pace of growth may have slowed in the third quarter, the survey shows that the manufacturing expansion is broadly based, with most industries growing, and has a solid foundation of rising domestic and foreign demand.”

There were either minor improvements or minor declines in most components of the index, leaving the overall index on continued solid footing.

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NSF funds nanoscience learning and teaching center
With a five-year, $15 million grant to Northwestern University, the National Science Foundation is funding the nation’s first Center for Learning and Teaching in Nanoscale Science and Engineering (NCLT).

The center, under the direction of Northwestern professor of materials science and engineering Robert P.H. Chang, will develop scientist-educators who can introduce nanoscience and nanoengineering concepts into schools and undergraduate classrooms.

Additionally, it will play the key role in a national network of researchers and educators committed to ensuring that all Americans are academically prepared to participate in the new opportunities nanotechnology will offer.

The NCLT is a partnership between Northwestern University, Purdue University, the University of Michigan, Argonne National Laboratories, and the Universities of Illinois at Chicago and Urbana-Champaign. Drawing on the strengths of the various partners in nanotechnology, instruction-materials development, educational assessment, and student cognition, the NCLT will create modular education materials designed to integrate with existing curricula in grades 7-12, and to align with national and state science education standards.

Each module will be based on topics from nanoscience and nanoengineering, selected and developed by an interdisciplinary team including scientists, engineers, education researchers and graduate students, and practicing teachers. Expanded versions of the modules will be targeted at community colleges and undergraduate institutions and will eventually serve as the core of semester-long courses in nanotechnology.

According to Chang, the center's initial nano education modules will focus on materials science and engineering.

"At the nanoscale, materials science connects ideas from the biological, physical and earth sciences," said Chang. "Our modules will emphasize the role of nanoscale properties and structure in determining the behavior of the substances, from plastics to semiconductors to metals, that drive our technological society, and the possibilities nanoscale control offers for new materials."

Chang's plans expand on his experience with the Materials World Modules project, an ongoing NSF-supported effort to introduce topics from materials science to students in grades 7-12. Chang says the NCLT project is "both the biggest challenge of my life and a unique opportunity to serve. We hope to reach at least 1 million students spread across all 50 states."

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Employment survey dips for manufacturers
After an encouraging climb in August, the wavering Hudson Employment Index for manufacturing workers once again declined, dropping a steep 6.3 points to 99.4.

The fall is attributed to growing concerns about personal finances and job security. The Manufacturing Index continues its trend of lagging behind the national index of 106.9, which fell two points from the previous month’s reading of 108.9.

Across all industries, the index saw a decrease in the percentage of private sector workers reporting hiring plans by their employers for the first time in five months. This figure, which had remained at 39 percent from April through August, slipped to 38 percent in September. Yet, private sector employees remain the most bullish segment of the U.S. workforce. Index polling also revealed the percentage of all workers and managers who anticipate hiring fell a point to 32 percent and 33 percent, respectively.

“Workers’ optimism about the job market has been impacted by influencers such as increased energy prices, lagging salaries and uncertainty around the presidential election,” said Jeff Anderson, senior vice president of Hudson Global Resources. “We expect this speculative environment to continue to have an effect on employee attitudes in the coming weeks.”

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Good things come to those who wait
Twelve quarters passed since the economic recovery began, but job searches still take nearly four months, according to survey results from international outplacement firm Challenger, Gray and Christmas Inc.

This time, the wait is worth it: Only 13 percent of executives and managers failed to gain equivalent or higher salaries in the new position. That third-quarter result is the best pay rate in exactly three years, through the third quarter of 2001.

"Better earnings are slowly translating to higher pay for new hires. That is the kind of consumer news that could lead to a merry Christmas at retail," said John A. Challenger, CEO of Challenger, Gray & Christmas Inc.

The nationwide survey of 3,000 jobless managers and executives revealed the median job search time increased from 3.8 months in the second quarter to 3.96 in the third quarter.

The third-quarter figure was only slightly below the record job search length of 4.2 months, recorded in the first quarter of 2003.

However, those finding jobs are being rewarded. The survey showed among those hired in the third quarter, 86.6 percent won equivalent or better salaries. That is the highest percentage since the third quarter of 2001, when 87.1 percent secured equivalent or better salaries.

"The survey data suggest that employers are taking their time to find the best possible candidates. An  increasingly intensive interview process, more calls to references, the growing use of background checks, including subjecting candidates to intelligence and personality testing, are all adding to the length of time between job posting and final offer," said Challenger.

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Small Wisconsin manufacturer testifies before Senate
A National Association of Manufacturers (NAM) member and small business owner based in Elkhorn, Wis., warned the Senate Subcommittee on Competition, Foreign Commerce and Infrastructure that high energy prices – particularly prices for natural gas – are threatening his business and thousands like it. He asked Congress to enact comprehensive energy legislation to ameliorate this gathering crisis.

Gary Huss, president of Hudapack Metal Treating Inc., employs 160 people at facilities in Wisconsin and Illinois. He told subcommittee members that small businesses like his that rely on natural gas for electric power and as a critical element of their production processes are being hit hard.

“We provide relatively high-paying jobs along with good health, life, short-term disability and retirement plans. But maintaining these jobs and benefit levels has been very difficult since natural gas prices began skyrocketing in 2000,” Huss said.

“Historically, severe energy cost increases have driven our economy into recession by reducing orders for capital equipment and lowering consumer confidence,” Huss continued. “My company has been faced with major cost increases that threaten our survival.

Huss reported that, in a recent NAM survey of its board members, 93 percent of small manufacturers said they are feeling a “negative impact” from high energy costs on their profit margins and cash flow, market share and demand for products.

“We are limited in our ability to pass energy cost increases on to our customers,” said Huss. “Our customers can simply turn to foreign producers who do not suffer the same high structural cost burdens that we do.

“Congress needs to pass comprehensive energy legislation that will increase the supply of affordable energy, improve our natural gas and electricity infrastructure, and provide incentives for additional energy efficiency investments,” Huss concluded. “Please make this your first order of business in next Congress so I can continue providing high-value metal products to my customers around the world and a high standard of living for my employees here at home.”

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GM wins award for focus on diversity
The Michigan Minority Business Development Council (MMBDC) named General Motors (GM) its Corporation of the Year during a ceremony Oct. 5 in Detroit.

The honor is the latest bestowed upon GM for the company's efforts to promote supplier diversity in the automotive industry. Last month, GM received Corporation of the Year honors from the Tuck School of Business at Dartmouth College, and in April, GM received Corporation of the Year honors from the Native American Business Alliance.

"Since the MMBDC was founded in 1979, the automotive industry has always taken a leadership position in driving supplier diversity in their companies and in our communities," said E. Delbert Gray, president and CEO of the MMBDC. "We congratulate General Motors on its recognition as the 2004 Corporation of the Year in the OEM Category."

GM was praised for having an outstanding supplier diversity procurement program, which includes mentoring minority suppliers and increasing purchases from minority suppliers.

GM was the first in the automotive industry to establish a supplier diversity program in 1968. Since that time, GM purchased more than $44 billion from Tier 1 and Tier 2 minority suppliers. In 2003, purchases amounted to $7.2 billion from Tier 1 and Tier 2 minority suppliers, a record for any automaker.

GM currently mentors 50 minority suppliers, providing leadership direction and resources to grow the suppliers' strategic capabilities. In addition, minority suppliers are able to receive financing from Motor Enterprises Inc., a GM subsidiary formed in 1970.

To reinforce the importance of supplier diversity, GM requires its Tier 1 suppliers to source a minimum of 8 percent of its Tier 2 GM business to certified minority companies.

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Jobless claims plummet for week ended Oct. 2
New claims for unemployment insurance fell 37,000 to 335,000 for the week ended Oct. 2, according to the Labor Department. The four-week moving average of jobless claims increased 4,250 to 348,500 during the same week.

The four-week moving average is generally considered by economists to be the more reliable of the two because it smoothes out week-to-week volatility. Both rates remained below 400,000, which is the level economists use to define a weak labor market and a stable one.

Continuing claims for unemployment insurance fell 3,000 to 2.9 million for the week ended Sept. 25. Continuing claims are those older than two weeks.

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ASSE survey reveals compensation among safety engineers
A recent American Society of Safety Engineers (ASSE) membership compensation analysis survey found the average member salary in 2003 to be $74,000, with half of the respondents receiving a bonus of between $1,000 and $5,000.

The majority of those surveyed anticipate a salary increase this year of about 4.6 percent, or between 1 percent and 5 percent of their current salary base.

The survey done by Block Research Inc. found that professional ASSE members earn nearly $10,000 more. The survey also found that having a bachelor's degree adds nearly $12,000 to one's salary and a master's degree nearly $20,000 compared to high school only.

A Certified Safety Professional (CSP) designation adds $10,500 to a salary. In addition to salary and bonuses, 61 percent are reimbursed for professional development, with the annual amount spent per employee ranging from $1,000 to $10,000.

The survey found that safety, health and environmental (SH&E) practitioners with 10 or more years of experience earn about $20,000 more than those with less than five years' experience. As responsibility and stature within a company increases, so does salary, rising from $57,410 for entry-level positions to $97,760 for executive-level positions.

Survey results found the electronics and finance industries ranked the highest in terms of compensation for SH&E practitioners, with education and agriculture ranking the lowest.

The 34-question survey developed by ASSE was sent to a randomly selected group of 2,500 members and professional members. Of the 1,624 returned surveys, respondents represented all business categories with more than half from the manufacturing, construction, insurance, services and public administration sector. The median age of the respondents was 46-50 years of age and 93 percent work full time, with seven percent self-employed. In the majority of the companies represented by respondents, safety and health functions are grouped together, with environmental functions handled separately. Fifty-one percent surveyed said they are responsible for 100 percent of their company's safety, health and environmental budget.

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Channellock's Tool Trade-Up promotion encourages people to bring in an old pair of pliers from any manufacturer and trade them for a new pair of Channellock #420 pliers. The customer pays $10 in addition to relinquishing the old pair of pliers.

The Tool Trade-Up held at Conneaut Lake Park on Aug. 14. in conjunction with Channellock Family Day netted $1,160, half of which was donated back to Conneaut Lake Park to help with operating costs.

Channellock's second Tool Trade-Up took place in the company's booth at the Crawford County Fair. Channellock associates from all areas of the workforce volunteered their time to staff the booth and administer the Tool Trade-Up. Over the course of the week-long fair, 160 trade-ups were processed at $10 each, and $2 from each trade-up were split between the FFA Foundation and Crawford County 4-H Fund.

The mission of the Pennsylvania FFA Foundation is to raise funds to support the activities of Pennsylvania FFA members. In 2004, the foundation will provide more than $150,000 to support leadership development, regional and national career development events teams and much more.

The Crawford County 4-H Fund is typically utilized for defraying the costs of sending young people to various leadership building seminars, youth retreats, Capitol Days, State Days, counselor training and camps throughout the course of the year.

"Our Tool Trade-Up promotion has been a great marketing tool for us in recent years," said Joan D. Sweeney, Channellock's director of corporate development. "So this time, we decided to use it as a means to help support three local organizations that mean so much to our community."

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Factory goods orders falter in August
New orders for manufactured goods decreased in August by 0.1 percent, or $300 million, to $370.5 billion, according to the Commerce Department. This followed a 1.7 percent July increase.

New orders for manufactured durable goods also decreased in August, by 0.3 percent, or $600 million, to $198.5 billion. This was revised upward from a $900 million decrease.

Transportation equipment had the largest decrease, $4.4 billion, or 7.4 percent, to $55.1 billion. The decrease in transportation equipment offset increases in other industry categories.

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WMEP brings $118 million in manufacturing improvements
For the third year in a row, efforts by the Wisconsin Manufacturing Extension Partnership (WMEP) to improve the competitiveness of the state’s manufacturers topped $100 million.

Wisconsin manufacturers report that assistance they received from WMEP in fiscal 2004 resulted in improvements valued at $118 million, including:
• $78 million in increased/retained sales;
• $15 million in cost savings;
• $25 million in investment in new plant and equipment; and,
• 1,468 created/retained jobs.

In addition, state tax revenues are projected to increase $8.6 million as a result of the jobs and sales impact.

WMEP, a non-profit consulting firm, provides technical expertise and business assistance to help small and mid-size manufacturers become more competitive. The impact data is based on 130 manufacturer surveys compiled for the National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP). WMEP is an affiliate of NIST MEP, a network of more than 60 centers across the country that provide assistance to small manufacturers.

“Manufacturers who invest in change reap financial rewards, and so do their communities,” said Michael Klonsinski, WMEP’s executive director. “What we’re seeing here are the significant gains that can be achieved with strategies designed to improve competitiveness, even at a time of intense global competition. We’re pleased with what we’ve accomplished, but there is much more work to be done to revitalize manufacturing in Wisconsin.”

Klonsinski says Wisconsin manufacturers must adapt to a fast-changing world by embracing technology, reducing costs and focusing like a laser beam on evolving customer needs.

“Today’s manufacturers face great challenges and opportunities,” he said.

In the past three years, Wisconsin manufacturers who were surveyed reported a $400 million economic benefit as a result of assistance from WMEP. WMEP provided services to 522 manufacturers this year.

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The September surge in job cuts was made worse by the fact that employer hiring announcements revealed only 16,166 new job openings.

The 107,863 figure was the largest since last January, when employers announced 117,556.

The September figure brings third-quarter job cuts to 251,585, or 19.9 percent higher than the previous quarter (209,895) and 4 percent higher than the third quarter of last year (241,548).

A total of 724,320 job cuts has now been announced in 2004, which is already higher than every year-end total prior to 2001. However, the nine-month figure is 16.9 percent lower than the 872,080 job cuts announced through September 2003.

The moving monthly average, which smoothes out volatility in month-to-month figures by averaging a year of data, rose 3 percent to 90,722 in September from 88,109 in August.

The increase in job cuts last month was due largely to heavy job cutting in the computer, transportation, telecommunications and consumer products industries. Together, these four sectors announced 61,069 job cuts, 56.6 percent of all job cuts.

Adding to the job loss data is the fact that announced hiring plans fell dramatically in September. After announcing plans to hire 132,105 new workers in August, employers announced just 16,166 job openings in September. That is the lowest figure since Challenger began tracking hiring announcements in May 2004. The total for five months is 268,835.

"Historically, the period from Sept. 1 through Dec. 31 is when we see the heaviest downsizing and this year appears to be on track to repeat that trend," said John A. Challenger, CEO of Challenger, Gray & Christmas. "This period can also be a time for hiring since companies are looking ahead to the new year and making budget and staffing decisions. Weak hiring announcements last month are not a good indication of stronger job creation to come."

He added: "The return to six-figure job-cut levels paints a grim picture for ongoing economic growth, as such activity is generally considered a measure of how companies view future business conditions."

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OSHA cites Durable Inc. for safety hazards
The Occupational Safety and Health Administration (OSHA) issued citations and proposed penalties to metal container manufacturer Durable Inc. of  Wheeling, Ill., for a variety of workplace safety violations.

"Strong enforcement is a key part of this administration's efforts to reduce workplace injuries and illnesses," said Labor Secretary Elaine L. Chao. "The significant penalty of $114,300 in this case demonstrates our commitment to protecting the health and safety of American workers."

The penalty and OSHA citations are based on an inspection initiated in April 2004, following a complaint about hazards at the metal container manufacturing plant. The inspection revealed workers faced the possibility of amputations and other serious injuries as a result of violations of workplace safety regulations.

Specifically, OSHA issued citations for 16 alleged serious violations and one alleged willful violation of federal workplace safety and health regulations. Serious violations included allegations of a wide range of hazards associated with machine guarding and accidental operation, as well as the lack of specific training. The alleged willful violation charged the company with failing to provide training so that employees fully understood the function and purpose of the energy control program.

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