Business Weekly
Business Weekly

October 2009

Fifteen Organizations Receive Governor’s Quality Awards
 

Fifteen organizations from throughout the state were presented Arkansas Governor’s Quality Awards during the 15th Annual Awards Celebration for the Governor’s Quality Award Program on Monday evening, October 19th at the DoubleTree Hotel in Little Rock . More than 275 business and civic leaders from throughout Arkansas attended the celebration.

Taking top honors by receiving the Governor’s Award for Performance Excellence was White River Medical Center in Batesville.

The Achievement Award was awarded to Drew Memorial Hospital in Monticello .  Organizations receiving the Commitment Award were: Actronix, Inc., Flippin; Ash Flat Healthcare and Rehabilitation Center, Ash Flat; AXIS, Paragould ; Freight Systems, Inc., North Little Rock ; Garland Nursing and Rehabilitation Center, Hot Springs ; Langston Companies, Inc., West Memphis and Saline Memorial Hospital, Benton .

Organizations receiving the Challenge Award were: Community Health Centers of Arkansas, North Little Rock ; Glad Manufacturing, Rogers; Hutchinson Financial, Inc., Little Rock ; Osceola Communication, Arts and Business School , Osceola; St. Anthony’s Medical Center, Morrilton and White River Rural Health, Augusta.

The awards ceremony includes four award levels of Performance Excellence (in descending order of qualifications): the Governor’s Award, the Achievement Award, the Commitment Award, and the Challenge Award. As well as the recognition, recipients receive an in-depth evaluation of their management systems and a written feedback report citing strengths and areas for improvement. Industry-specific seminars were held last year for manufacturing, healthcare and insurance/financial services. 

The goal of the Governor’s Quality Award Program is to encourage Arkansas organizations to engage in continuous quality improvement, which leads to performance excellence, and to provide significant recognition to those organizations. Created as a not-for-profit organization, the program is dedicated to assist in building a strong infrastructure for Arkansas businesses. That dedication is reflected in the program’s vision to contribute to the success of Arkansas organizations and the communities they serve. The Governor’s Quality Award program partners with the Arkansas State Chamber of Commerce.

The Chairman of the Board of the Governor’s Quality Award program is Cal Kellogg, Vice President and Chief Strategy Office for Arkansas Blue Cross and Blue Shield.  Organizations and companies interested in participating in the program should contact Governor’s Quality Award Executive Director Sue Weatter with the Arkansas State Chamber of Commerce by calling 501-372-2222 or go to www.arkansas-quality.org.

-back to top-

Reid Announces Senate Bill Will Include Public Option with State Opt-Out

 

Senate Majority Leader Harry Reid's (D-NV) Monday announcement that the final Senate healthcare bill would include a public option with a state opt-out provision received wide coverage from the media, and was featured in three network reports. However, several media reports questioned whether Reid's proposal would draw enough support to overcome an expected filibuster -- noting the provision would cost the support of GOP Sen. Olympia Snowe (R-ME). A handful of reports suggested that Reid was actually reacting to liberal pressure.

 

The CBS Evening News reported, "For months, the public option was declared dead in the Senate," but Reid "announced that the contentious government plan would be the cornerstone of the new Senate healthcare reform bill." Sen. Harry Reid: "The public option can achieve the goal of bringing meaningful reform to our broken system." NBC Nightly News reported, "Leaders of both parties had predicted that a public option was dead. But tonight it is back, and Senate Majority Leader Harry Reid is taking a risk." But "for more liberal Democrats, this kind of public option or any kind of public option is considered a victory."

 

On ABC World News, George Stephanopoulos said Reid "still may not have the votes to get this to the Senate floor. But what the Senate leader saw is that he would have a lot more trouble with the majority of Democrats if he didn't include the public option in the bill than if he did."

 

USA Today reported the "latest iteration of the public option would give millions of Americans who are not covered through their employer the option to buy insurance run by the government. States would have until 2014 to decide whether to withdraw from the public program, which Reid says would drive down rates." Fox News' Special Report said the White House "praised the inclusion of a public option in the Senate plan and key Democrats have repeatedly argued that a government-run option is necessary in order to challenge the private insurers they have termed 'villains.'" Bloomberg News reported Reid said "the so-called public option with the opt-out provision is the 'fairest way to go' to ensure competition for private insurers."

 

The New York Times reported in a front page story that Reid "sided with his party's liberals," but the announcement "set the stage for a test of Democratic party unity. With Republicans united for now in opposition to any bill including a public option, Mr. Reid needs support from all members of his caucus - 58 Democrats and two independents - to take up the legislation. Aides said Monday that he appeared to be short of that goal, lacking firm commitments from several members of the caucus." The Los Angeles Times reported the "'opt-out' compromise is still two votes shy of the 60 Reid needs to overcome a Republican filibuster, according to a senior Democratic aide on Capitol Hill who requested anonymity when discussing the plan."

 

AFP reported Reid "said the public option was 'not a silver bullet' but pointed to recent public opinion polls that showed a majority of Americans support the option to pick a government-backed insurance plan." The Senate debate "on the bill, a compromise between legislation from two Senate committees, will begin as soon as congressional budget analysts formally estimate how much the measure will cost -- most likely later this week -- according to Reid." 

-back to top-

 

Business Groups Oppose, McCain Blocks Consideration of NLRB Nominee

 

The Hill reported, "The nomination of a labor attorney to a federal board has become another front in the fight over legislation that would make it easier for workers to form unions." The business community, which "has spent millions of dollars to lobby against the Employee Free Choice Act (EFCA), is now turning its attention to the nomination of Craig Becker, an associate general counsel to both the Service Employees International Union and AFL-CIO, to the National Labor Relations Board (NLRB)." The U.S. Chamber of Commerce, the NAM , the National Federation of Independent Business and other business groups "sent a letter [last] Tuesday to members of the Senate Health, Education, Labor and Pensions (HELP) Committee expressing their opposition to Becker." Jay Timmons, executive vice president for the NAM , wrote in a separate letter sent on [last] Tuesday, "Since the NLRB is charged with administering our nation's labor laws, the confirmation of Mr. Becker raises the possibility of the EFCA legislation or an equally onerous alternative being imposed through Board action."

 

FOX News reported, "Sen. John McCain (R-AZ) reiterated his case Thursday against President Obama's nominee to serve on the National Labor Relations Board, saying Craig Becker's controversial writings and legal advocacy work have outraged critics who say he supports unions at the expense of employer free speech and American businesses." McCain "decided [last] Wednesday to block Senate consideration of the nomination of Becker to join the NLRB." McCain and "a slew of business groups are raising questions over articles and academic journals written by Becker on the very labor law he would work to interpret if confirmed to the board." Business groups "claim Becker supports policies that reflect a clear bias against employers and would be 'detrimental' to American manufacturers." NAM Executive Vice President Jay Timmons wrote in a letter to Sen. Tom Harkin (D-Iowa), chairman of the Senate HELP committee, "Mr. Becker has espoused extreme positions far outside mainstream thought on how our nation's labor laws should be interpreted."

-back to top-

 

U.S. Share of Global Manufacturing Value Holds Steady at 22 Percent

AFP reported earlier this month that a survey from the U.S.-based Manufacturing Institute and the Manufacturers Alliance "showed that the U.S. share of global manufacturing value...held at 22 percent in 2008, roughly the same level for nearly 30 years" even though China has gained ground, with a share last year of 14 percent. China 's share continues to "surge" from 1980, when it had just two percent. The survey also showed that " U.S. manufacturing generated $1.64 trillion worth of goods in 2008." Yet, "although the value has been rising, industrial output's share of gross domestic product has fallen from 20 percent in 1980 to 11.5 percent in 2008." Emily Stover DeRocco, president of The Manufacturing Institute, said the survey and associated data show "clearly...that manufacturing is central to America 's economic future." She also noted that "one in six U.S. jobs is in or directly tied to manufacturing, which still pays premium wages and benefits."

-back to top-

 

U.S. Industrial Output Climbs More Than Expected in September

 

AFP reports, "U.S. industrial production jumped in September for a third straight month, the Federal Reserve reported in a further sign of a reviving manufacturing sector," saying that "output at the nation's factories, mines and utilities rose 0.7 percent after an upwardly revised gain of 1.2 percent in August." According to the U.S. central bank's report, the figures "marked the first period of sustained increase since 2007, when the United States plunged into recession. Most economists had forecast a 0.2 percent rise in September." Analysts say that "the American industrial sector is leading the recovery from recession as consumer spending and other areas of the economy lagged."

 

The AP reported, "Higher output of motor vehicles and parts spurred much of the September increase, due in part to the government's Cash for Clunkers program. But steel and other sectors also posted gains, and General Electric reported separately that its industrial businesses grew in the third quarter."

 

In other economic news, Bloomberg News reported that "The index of U.S. leading economic indicators rose in September for a sixth straight month, showing the economy is likely to expand into early 2010." The Conference Board's "gauge of the economic outlook for the next three to six months climbed a greater-than-forecast 1 percent, contributing to the biggest six-month gain in 26 years, the New York-based private research group said. Other reports showed jobless claims rose and home prices fell."

-back to top-

Survey: Few Manufacturers to Increase Hiring in Next Six Months

Manufacturing.net reported, "A Grant Thornton LLP survey of manufacturing CFOs and senior comptrollers found that only 25 percent say their company will increase hiring in the next six months, and more than half plan to reduce bonuses." Also, 34 percent "are cutting back on health care benefits, and 28 percent are reducing 401(k) matches." After "the cost of employee benefits, including health care and pension costs," Grant Thornton said that "the second greatest concern was the cost of raw materials." Fifty-four percent, however, "believe the U.S. economy will improve during the same time period." Walter Gruenes, Grant Thornton LLP National Managing Partner of Consumer and Industrial Products, said that "in the short term, those manufacturers serving the food/beverage, aerospace and chemical sectors are most optimistic, while those serving the automotive, industrial equipment and housing/construction sectors are least optimistic."

-back to top-

 

Climate Legislation Provides Cushion to Energy-Intensive Manufacturers

The New York Times reported, "The Senate bill aimed at reducing global warming pollution will initially grant billions of dollars of free emissions permits to utilities and industry but will require the bulk of the money be returned to consumers and taxpayers, according to newly released details." The bill will also "provide a cushion to energy-intensive manufacturing companies to ease the transition to a lower-carbon economy and to help them compete internationally, although the subsidies will disappear over time." The Senate measure, sponsored by Senators John Kerry of Massachusetts and Barbara Boxer of California , "aims to reduce greenhouse gas emissions under a cap-and-trade system that sets a nationwide limit on emissions but allows polluters to buy and sell permits to meet it." The latest version includes "new financing for research on capturing and storing carbon dioxide emissions from power plants, more money for low-carbon transportation projects, additional assistance for rural communities and more favorable treatment for agriculture and forestry."

-back to top-

 

Lawmakers from U.S. , China , Other Nations Agree to Reduce Emissions

Bloomberg News reported that more than 100 "lawmakers from the U.S., U.K., China and 13 other nations agreed on guidelines to reduce carbon emissions through domestic legislation," even if United Nations-sponsored climate talks fail to achieve "a binding treaty." The legislators committed [Sunday] "in Copenhagen to promote renewable energy, reduce deforestation and increase the energy efficiency of buildings, appliances and motor vehicles." The accord "was led by Ed Markey, co-author of the climate bill passed by the U.S. House of Representatives in June, and Wang Guangtao, head of the environment committee of China's National People's Congress."

 

-back to top-

 

NAM Could Support Cap-and-Trade with Certain Changes

Bloomberg News reported, "A price ceiling on a future U.S. carbon emissions market is one of many 'must-haves' if lawmakers want industry support for 'cap-and-trade' legislation to limit greenhouse gases," the NAM said. Keith McCoy, the NAM 's vice president of energy and resources policy, said, "We are not philosophically opposed to a cap-and-trade." Senate Democrats "unveiled a new cap-and-trade bill September 30 that calls for a 20-percent-emissions cut by 2020." While the NAM said the "new bill poses 'an even more significant technological and economic challenge to manufacturers,' changes could be made to win the industry group's support, McCoy said." For the NAM to "support a cap-and-trade bill, 'there are a lot of must-haves,' such as a 'price collar' that sets a minimum and maximum price for the carbon dioxide permits created by a cap-and-trade law,” he said

-back to top-


Data Show Rising Costs Imposed on Manufacturers Threaten Job Growth

IndustryWeek reported, "A new handbook produced by The Manufacturing Institute, the Manufacturers Alliance/MAPI and the U.S. Department of Commerce, concludes that U.S. manufacturing is being challenged by increasing costs including corporate taxes, health care and pensions, regulations and energy and tort litigation." Emily Stover DeRocco, president of The Manufacturing Institute, said, "The facts clearly illustrate that manufacturing is central to America 's economic future" but rising costs are "hampering our manufacturers' competitiveness in a global, interconnected marketplace. Non-production costs add almost 18 percent to U.S. manufacturers' costs relative to our major trading partners." DeRocco also noted "that the U.S. is not equipping American students and workers with the right skills needed to compete in the modern global manufacturing economy. ... And the trade gap is widening for manufacturers in the U.S. , indicating a need for strategies to increase exports, promote free trade and level the playing field."

Industrial Distribution reported, "Despite the worst economic downturn in decades, manufacturing continues to play a critical role in the U.S. economy but is challenged by increasing costs including corporate taxes, health care and pensions, regulations, energy and tort litigation, according to The Facts About Modern Manufacturing." DeRocco said, "The United States has the largest manufacturing economy in the world, producing $1.6 trillion in goods annually. America 's global market share of manufacturing has held steady at around 22 percent for 30 years." In addition, "productivity growth is higher in manufacturing than in other sectors, holding down inflation and contributing to a higher standard of living." But, DeRocco said, "We are seeing our global market share eroded, even in high technology areas where we have been dominant."

And in a press release, the Manufacturing Institute writes that DeRocco concluded, "All of these challenges underscore how manufacturing in the United States is at a crossroads, and the policy choices made today will shape the future of manufacturing in our country. The facts tell us that manufacturing is essential to a robust economy and high living standards. Addressing the underlying pressures that make it difficult to manufacture in the United States and making our economy more competitive should be a top priority for policymakers as the nation struggles to recover from the recession and create good jobs."

The recently released 8th edition of The Facts About Modern Manufacturing spotlights the latest U.S. government statistics, economic analyses and case studies about manufacturing. To view the Facts book, click here.

-back to top-

 

E-Verify System Wins Three-Year Extension from Congress

Gannett News reported, "A system that lets employers check whether newly hired workers are in the country legally has won a three-year extension from Congress." But the debate "over the E-Verify program is far from over." In addition to "renewing the controversial voluntary program, Congress voted Tuesday to approve $137 million for the program over three years as part of a $43 billion spending bill for the Homeland Security Department." Many lawmakers say E-Verify "should be part of a comprehensive immigration reform package." President Obama has "expressed support, but overhauling the nation's immigration system is unlikely this year, as Congress tackles health care reform." Critics of the program say "the federal databases it uses are so error-prone that many legal immigrants and citizens are mistakenly disqualified."

-back to top- 

Forest-Products Industry One of Hardest-Hit

According to BusinessWeek, "print media's decline is slamming paper producers, but that doesn't necessarily mean there will be long-term environmental benefits, experts say." American Forest & Paper Association estimates suggest "that newsprint production in 2009 will fall by one-third, or almost 1.5 million tons, from the previous year, and magazine print by 1 million tons, or 25 percent." Yet, "there's more ailing the wood-and-paper industry than digitalization, of course. The battered housing sector has slammed new-home construction, and consumer cutbacks sharply reduce the need for packaging materials." Bill Imbergamo, director of forest policy at the AF&PA, said that "the forest-products industry has been one of the hardest-hit throughout the economic crisis," adding, "Together the decline in demand for wood building and paper products threatens the viability of a key manufacturing sector -- and its investments in the long-term health of our forests."

-back to top-