|
Distribution Strategy
By Travis Centers, Barrett Trade and Finance Group (BTFG), export finance specialist will assist you in taking your products and business global. Questions? Please contact Travis at tcenters@btfg.com.
The tailwinds driving the growth in US manufacturing, mentioned in my previous article, has provided manufacturers with the steam that is currently driving the US's economy. According to a recent article in the Monitor Daily, "Manufacturing has been the star of the economic recovery. Conservative estimates suggest that the sector, while making up around 12% of total economic output, has contributed over 30% to the economy's growth since the recovery started." If this comes as a surprise to you, it may be due to not fully embracing expansion into international markets.
Based on statistics presented in the April edition of The Cutting Edge, exporters of woodworking equipment are experiencing a demand shift from traditional markets in Canada and Mexico to developing markets in South East Asia, South America, and Eastern Europe. In order to stay in front of the curve, management should start developing plans on how to enter and effectively compete in these new markets. The two questions a management team should immediately ask are: "How much time and resources do we have and/or want to commit to this new market?" & "Is the market large enough to earn the return necessary to justify expenditures". The answers to these questions will be the basis of developing your distribution strategy. Details.
Fall Action Plan, by John Satagaj, email@jsatlaw.com
Nothing like a debt ceiling increase crisis to give Congress an excuse not to do anything else. Well, not exactly but it sure felt like it. When Congress returns after Labor Day what can we expect?
Twelve Representatives and Senators will be working to find $1.2 trillion to $1.5 trillion in deficit reduction savings. Five hundred twenty three others will be watching and influencing their decision.
The Twelve do not have to reach an agreement. In which case, automatic cuts (sequestration) will be imposed. If they reach a consensus, their recommendations, in theory, could include revenue increases. There is a whole debate going on right now about exactly what revenue could be included - based on some arcane revenue scoring rules, but as one House Republican observed, as a practical matter which of the six Republicans on the Committee of Twelve is going to be willing to go record as supporting a revenue increase. Also, the way the debt ceiling increase deal bill was written, the Committee of Twelve has to produce the legislative language. Something like true tax reform is not likely to magically appear in the short time the Committee of Twelve has to produce an agreement. Details.
Debt Ceiling, by John Satajai
They have a deal. My impression is the deficit reduction is meaningful. A special congressional committee will be created to come up with the major reductions. If they do not come up with the reductions, automatic sequestration starts in 2013. This means cuts, and only a few items are not on the table for those cuts. The congressional committee can consider entitlements and tax reform in its package. Whether the committee comes up with a package including tax reform or not, this deal is going to increase the pressure on Congress to deal with tax reform in 2012. When the current temporary tax cuts (e.g. estate tax relief, marginal top rate) expire at the end of 2012, the increased revenues are including in the government's revenue baseline. Voting to renew them and giving up the revenue, with prospect of sequestration making deep cuts, will be doubly difficult.
Congress still has to approve the deal. As of this morning, the details were still very sketchy. My guess is that liberals and conservatives in the House are not going to be particularly happy. Ironically, this may be one of the most bi-partisan votes in House this year. It will be counted from the middle out.
Congress did not do much in July. I guess the lone bright star on our agenda is the effort to pass the Manufacturing Reinvestment Account bill. Jamie Scott has led the WMMA effort and his Senator, Richard Blumenthal (D-CT) has introduced the Senate version, S. 1237. The House companion bill is H.R. 110, introduced by Representative Rose DeLauro (D-CT).
The Manufacturing Reinvestment Account Act would allow manufacturing firms to establish a manufacturing reinvestment account (MRA), similar to an individual retirement account (IRA), in a community bank and to make annual pre-tax contributions of up to $500,000 that may be held in the MRA for up to 7 years. Amounts distributed from the MRA are effectively taxed at a low 15 percent rate and must be used to purchase equipment and facilities or for job training.
If a manufacturing business invested $500,000 a year for 7 years in an MRA bearing a 5 percent interest rate, it would have an estimated after-tax balance of approximately $3.6 million to invest in equipment, facilities, and job training at the end of the investment period. That amount would represent approximately $1 million more than had the same amount initially been invested in a taxable account.
Our priority is to secure Senate co-sponsors, particularly Republicans. We have an Action Alert available for your information.
The House has not advanced the Lawsuit Abuse Reform Act or medical liability reform legislation. While neither is directly on point for us, at least they are tort reform related. No tax initiatives are moving. The patent system reform bill, passed by both chambers, has bogged down on the way to the finish line. While I suppose it is good news, even our regulatory concerns have slowed. OSHA seems to be moving even more slowly on the combustible dust proposal than before.
I am hopeful Congress will shake off the debt ceiling doldrums come September and I will have more to report after Labor Day!
OHSA Has No Timeline for Combustible Dust Rule
In April, 2011 WMMA issued a press release on OSHA defining New Standards for Handling Industrial and Wood Dust:
Federal regulators are drawing up new standards for handling industrial and wood dust following a series of fires and explosions related to combustible dust.
The Wood Machinery Manufacturers of America wants to make industrial and wood products companies aware of the new regulations and of the need to handle combustible dust safely.
WMMA's Industrial Dust Task Force has been following the Occupational Safety and Health Administration (OSHA) on the new rules since October 2009. OSHA is currently reviewing all the comments from the various stakeholder meetings held in 2009 and 2010.
The goal is to ensure that companies follow proper dust collection procedures. "In reality, wood dust lingers, and when you take an air gun and blow off the work surface that just suspends it in the air and causes dispersion, which is not a good thing," says Jamison Scott, chairman of the Industrial Dust Task Force. "The dust settles on beams and in crevices, and above hung ceilings, potentially creating fuel for an explosion.
Now it seems that OSHA has no timeline at all for combustible dust rule.
Labor Secretary Hilda Solis — the "new sheriff" that the labor community hoped would protect American workers - has no timeline for when her Occupational Safety and Health Administration might get around to issuing a rule to deal with the dangers of combustible dust.
According to Solis, "OSHA is not able to project an estimate for when we will publish a proposed standard on combustible dust. The next step in the rule making process is to initiate the SBREFA panel review, which is currently estimated for December."
Hilda Solis has said such a standard is "long overdue," but so far her agency hasn't even set a goal for when it might even propose a combustible dust standard. And OSHA seems to keep falling farther and farther behind on this … the last time they issued a regulatory agenda, the SBREFA panel was to be convened in April 2011. Now it's December 2011 …
Details
View Rule: DOL (Department of Labor)/OSHA Rule
Industry Information on Member Central
Bookmark this page http://www.wmma.org/members/model/forecasting_tools.cfm to access more information and monthly reports! Details...
SAVE THE DATE!
Webinar: Current Status of the World Economy
Date: Tuesday, November 22
Time: 8:00 am, PST; 9:00 pm CST, 11:00 am EST
The world economy is facing more uncertainty than ever. With the recent credit downgrade in the U.S. and more countries likely to follow, companies are understandably concerned about their financial future. What do recent events mean for your company, and how will they affect the industry as a whole? Please join WMMA's chief economist, Alan Beaulieu for this timely economic update as he examines the current state of the U.S. and world economy.
Woodworking Machinery & Supply Expo
On October 27-29, 2011, join thousands of woodworking professionals at Woodworking Machinery & Supply Expo. In downtown Toronto's Direct Energy Center, Canada's largest woodworking show is convenient to the Toronto City Centre Airport and Union Station. See demonstrations of new woodworking machinery, software and supplies; shop and compare vendors; and network with colleagues. The 2011 WMS will also feature the most comprehensive and enhanced education conference in the show's history.
Join the WMMA Pavilion in exhibiting at WMS. WMMA will enable association members to band together and showcase their equipment, supplies and services in a highly visible fashion.
"We are thrilled to have the WMMA's support for WMS and look forward to working with the association and its members to create an exhibit space that will serve as a beacon for attendees interested in learning about the latest and greatest American woodworking technologies," said Rich Christianson of Vance Communications Canada, which organizes the biennial trade fair. "The WMMA is a leading authority of woodworking technology and the U.S. wood products market."
Current market conditions in Canada make this a banner year for U.S. woodworking machinery and suppliers to capitalize. Canada's housing market is on a growth trend and the strong Canadian dollar makes U.S. products especially attractive to Canadian woodworking professionals.
Did you know that in 2010 Canada:
- Imported $252 million in woodworking equipment, $61 million from the USA?
- Saw its woodworking equipment import market increase by 41%?
- Exported $1.2 billion in wood furniture?
- Exported $6.2 billion in wood products, excluding wood furniture?
- Exported close to $150 million in wood kitchen cabinets?
You can't afford not to compete in Canada and if you haven't seen your sales increase by 41% (the national average) it's time you personally checked out the market. Get the latest news about WMS 2011.
WMS is supported by some of the leading WMMA member companies, including*:
WMMA Pavilion Participants
Black Bros.
Hendrick Manufacturing
Mereen-Johnson
RazorGage
Safety Speed Manufacturing
The Original Saw Company
TradeSoft, Inc.
Williams & Hussey Machine Co., Inc.
WMMA Member Exhibitors
Becker Acroma Inc.
Delcam ArtCAM
Franklin Adhesives
Graco, Inc.
Klingspor
Osborne Wood Products
The Sherwin Williams Co.
*This is a listing of members exhibiting under their own name. Others are exhibiting with their dealer.
WMMA Announces Patriot Award
The association wants to reward those members that take the time and energy away from their day to day responsibilities to concentrate on critical legislative and regulatory issues that are or will impact their businesses and the woodworking industry. So, we have created the WMMA Patriot Award for those members that:
- Host their local, state or federal representative at their plant and;
- Participate in the DC Fly-in;
- Receive press of the local event.
The process is simple and the WMMA has developed tools to assist.
- Hosting your local, state or federal representative at your plant
This is the easiest and most important part. On the WMMA website, we have posted a brief guide to assist you in contacting your representative, inviting him to visit your plant and witnessing first hand the importance to his jurisdiction of your business — jobs, revenues, economic development, etc. It's your chance to demonstrate how legislative and regulatory issues directly impact all three.
- Participating the WMMA DC Fly-in
Each year, the WMMA organizes a march on Capitol Hill, usually in February, giving members the opportunity to call on their representatives to pay attention to issues near and dear to their businesses. The WMMA pays for all travel and related costs to include air fare and hotels. We ask that you donate your time.
- Receiving press
Again, this is easy and we can assist. The Plant Tour Guide referred to in point (1) above also includes support on issuing press releases and gaining support from your local press. Send us a copy of the press clipping to:
Harold Zassenhaus
WMMA
500 Citadel Dr.
Suite 200
Commerce, CA 90040
hzassenhaus@wmma.org
301 652 0693
- Legislative and Regulatory issues
The WMMA has developed papers on the most important issues facing your business and the industry as a whole. On the WMMA website, (members' only area) you will find two sets of papers: (1) in-depth issue papers on regulatory or legislative initiatives in which we have a stake and; (2) "one pagers", summarizing positions on priority issues. The issue papers are for your information; the "one pagers" can be used as "leave behinds" for the representatives with whom you plan to meet. I encourage you to print the "one pagers" on your company stationery and modify each as you see fit; for example replacing the paragraph on the WMMA with one on your company. Make sufficient copies so if you can't win over your legislator you can leave him/her something to chew on and for you to follow up.
Each year at the Woodworking Industry Conference (WIC) the WMMA will recognize each award recipient.
How to Participate
No sign up form, no gimmicks, just do it.
If in addition to the guide and papers we have produced, you need assistance along the way, call:
Frank Kobilsek, Chairman, WMMA Public Policy Committee, fkobilsek@blackbros.com, 815 539 7451 or Harold Zassenhaus, WMMA staff, hzassenhaus@wmma.org, 301 652 0693. If you want more insight into specific federal legislative or regulatory issues, such as where your representative stands on the issue, contact the WMMA National Affairs Counsel, John Satagaj, email@jsatlaw.com, 703 340 9596.
Major Issues Papers
ANCHORSEAL Index — June 2011
We're In This Together
It's well past Independence Day, which I missed due to 2 weeks of business travel in South America. I just got back and am catching up on the monthly ANCHORSEAL Index. I was also at the LIGNA show in Germany in June. No matter what country I was in, they all are facing the same macro-economic problems that we are, and many countries are in so much worse shape than the USA.
TIME TO CURVE BACK UP...
In June 2010 we hit the peak of the rate-of-growth for hardwood production. It has been slowing since then. When natural disasters hit this spring, locally and internationally, production was negatively impacted even more.
June 2011 is, I believe, the new low point for the rate-of-growth and we should be trending upwards during the last half of this year and all through 2012. Expect the growth rate to continue at a painfully slow pace but we are already seeing signs of improvement, domestically and internationally.
The latest 12 month hardwood production is still running consistently at 75% of 2007's levels (see the Q2-2011 graph). 2007 was the best production year in recent history, and getting back to those levels is going to be a slow struggle, increasingly dependent on orders from overseas. The "good news - bad news" is that, with the closing of so many producers during the past two years, some individual company production may soon be back up to their 2007 peaks, or already there.
Made in America! — WMMA at AWFS Fair 2011
At the AWFS Fair 2011, over 75 Wood Machinery Manufacturers of America members exhibited their products and services; machinery, cutting tools and various other supplies.
A very popular phrase right now, being picked up by television documentaries, newspapers and publications like Newsweek and Time is the "Made in America" series.
Attendees to the Fair found that WMMA member companies offered them newly introduced technologies, system upgrades and manufacturing expertise.
WIC 2011: It Was a Big Hit!
 "This was absolutely the best WIC I have ever attended!"
"The woodworking end user Forums were my favorite part of the WIC this year. I learned more there than I have over the past two years from the industry."
"It was about listening to the customer; I get it!"
"Congratulations on putting together a great WIC. You all did an excellent job with the speakers, the accommodations, the food and the wealth of information that was presented and shared among other companies that face today's challenging times. Nothing else comes close to what I was able to take away from this conference in just a couple of hard hitting days!"
If you were there, this is what you heard ten-fold! If you weren't there, you probably have no idea what you missed. And I'm here to tell you — you missed a Big One! Details.
WoodLINKS USA: Creating a skilled workforce for the industry
Stiles Machinery is pleased to announce that Duane Griffiths, Director of Education for Stiles, was awarded the Larry Hilchie Past-Presidents Award by WoodLINKS USA.
The award was presented during a special ceremony at the AWFS Fair in Las Vegas last week. The award was first established in 2004 when WoodLINKS USA realized there was a missing link in their award system for individuals who went beyond the scope of the other awards. At that time, the group recognized achievements in education, an industry supporter, and the best partnership. But they did not have an award that recognized an undisputed champion, a person who would provide relentless support, time and advice to the program. A new award, in recognition of the past efforts and successes of the founding President of WoodLINKS USA — Larry Hilchie, was established. The new award was to recognize the outstanding efforts of an individual or group in support of the national cause of WoodLINKS USA.
"From the earliest days of WoodLINKS USA, Duane and Stiles Machinery established themselves as outstanding champions and supporters of the program," stated Wil Torunski, Program Director for WoodLINKS USA, during the awards presentation. "Duane is indeed an inspiration to effective technical education programs that our industry needs to pay attention to. Congratulations for a very well deserved award."
Manufacturing Industry Trends
Informed investment and business planning decisions require timely analysis of key U.S. government economic data and manufacturing industry trends. An accurate view of the manufacturing economic outlook is essential for policymakers to make informed and supportive decisions that promote the competitiveness of manufacturers in the United States. The NAM's economist, Chad Moutray, breaks down complex data into straightforward, usable nuggets of information. His in-depth insight provides a comprehensive look at manufacturing industry trends and the current state of the manufacturing economy in America. (Video Link — PBS Video: 03:57)
Ask NAM's Expert
Chad Moutray, chief economist for the National Association of Manufacturers (NAM), where he serves as the NAM's economic forecaster and spokesperson on economic issues.
Labor Policy for Manufacturers
Manufacturers and their employees rely on fairness and balance in our labor law system. Maintaining the time-tested balance between labor unions and employers is critical to economic growth and job creation. The National Labor Relations Board (NLRB), however, has undertaken an aggressive agenda that threatens jobs and economic growth. Its proposed "quick snap" election rules, its pending decisions, and its complaint against Boeing could have a more significant impact on manufacturers than the Employee Free Choice Act, which the National Association of Manufacturers (NAM) helped defeat in Congress.
The NAM is committed to defending the rights of manufacturers and their employees and fighting changes to our labor law system that undermine employer-employee relations.Every day, American manufacturers do their part to improve the environment. Manufacturers develop new technologies to promote energy efficiency; reduce waste and recycle materials; and focus on sustainable production practices. U.S. manufacturing is the leader in creating innovative solutions to advance renewable and alternative energy and greenhouse gas emissions (GHGs) reduction technology.
Quick-Snap Labor Elections ManuFACT
NAM's Fact Sheet on NLRB's Agenda
Learn how the National Labor Relations Board's aggressive agenda threatens manufacturers.
IWF 2012 has the Power to CONNECT
The power to connect you to buyers — 365 days of the year!
The Power to Reach More Starts NOW....
IWF 2012 will be held in Atlanta, GA at the Georgia World Congress Center, August 22-25, 2012. We look forward to seeing you there.
FIMMA Brasil 2013
FIMMA Brasil — the largest trade fair in Latin America for the wood and furniture production chain. The International Fair of Machines, Raw Materials and Accessories for the Furniture Industry — FIMMA Brasil — showcases the leading edge technology for the sector.
FIMMA Brasil 2013 will be held from March 25-29 at Parque de Eventos in Bento Gonçalves.
|
