The new House leadership has pledged action on one health care item in its first 100 hours. The House plans to institute a requirement that Medicare leverages its bargaining power and negotiates lower prices with drug companies so that seniors get a better deal. After that, I am not sure what direction the new majority will take. All I know is that national association health plans will not be on their short list.

As you speak with your Representative and Senators, let me remind me you of a few national health care facts. Of course, your personal health care cost story from your business is likely to be of more interest to them and more compelling.

According to the 2006 Annual Employer Health Benefits Survey released by the Kaiser Family Foundation and the Health Research and Educational Trust (HRET), between spring of 2005 and spring of 2006, premiums for employer-sponsored health insurance rose by 7.7%, a slower rate than the 9.2% increase in 2005 and the 11.2% increase in 2004. Despite this slowdown, premiums continued to increase much faster than overall inflation (3.5%) and wage gains (3.8%). Premiums for family coverage have increased by 87% since the year 2000.

The survey found that, although the average premium increase for 2006 was 7.7%, many covered workers are in firms that experienced premium changes that were substantially above or below the average: 42% of covered workers work for firms where premiums increased by five percent or less, while 13% of covered workers work for firms where premiums increased by more than 15 percent. Premiums in fully-insured plans grew more quickly than premium equivalents in self-funded plans (8.7% versus 6.8%). Average annual premiums for employer-sponsored coverage are $4,242 for single coverage and $11,480 for family coverage.

According to the U.S. Department of Health and Human Services, the U.S. spent $1.9 trillion on health care in 2004, or $6,280 per person. Health care spending rose 7.9% in 2004, slower than the 8.2% growth in 2003 and 9.1% growth in 2002. The health care spending share of the GDP grew 0.1 percentage point to 16% in 2004.

The share of personal health care spending growth associated with prescription drugs has declined since 2000, coincident with a higher share of spending growth for hospital services. Prescription drug spending had accounted for a 23% share of personal health care spending growth between 1997 and 2000, but by 2002-2004 it accounted for only 14%. Conversely, hospital spending accounted for 28% of personal health care spending growth between 1997 and 2000, and 38 percent by 2002-2004.

According to the most recent figures from the U.S. Census Bureau, the number of uninsured individuals increased by 1.3 million to 46.6 million in 2005 (from 15.6 percent in 2004 to 15.9 percent in 2005). As employers run out of options for reducing their costs and as employees have been asked to share in the costs, employment-based coverage has dropped. Between 2004 and 2005, people covered by employment-based health insurance (174.8 million) declined from 59.8 percent to 59.5 percent. On the positive side, the number of people with health insurance coverage increased by 1.4 million to 247.3 million between 2004 and 2005.

Let me end with some good news. Representative Bill Thomas (R-CA), retiring chairman of the House Ways and Means Committee, was able to secure several improvements to the Health Savings Accounts (HSAs) program as part of the 109th Congress' final tax bill. These changes should make the program more attractive to employers and employees. Among the changes are provisions to:

• Allow rollovers from Health Flexible Spending Arrangements (FSAs) and Health Reimbursement Arrangements (HRAs) into HSAs
• Allow certain FSA coverage to be treated as disregarded coverage
• Repeal the annual plan deductible limitation on HSA contributions
• Modify the cost of living adjustment
• Expand the contribution limitation for part-year coverage
• Modify employer comparable contribution requirements for contributions made to non-highly compensated employees.
• Permit one-time rollovers from IRAs into HSAs

The big change is the repeal of the annual limitation on HSA contributions. The new law modifies the limit on the annual contributions that can be made to an HSA so that the maximum contribution is not limited to the annual deductible under the high deductible health plan. Currently, the maximum aggregate annual contribution that can be made to an HSA is the lesser of (1) 100% of the annual deductible under the high deductible health plan, or (2) (for 2007) $2,850 in the case of self-only coverage and $5,650 in the case of family coverage. Under current law a high deductible health plan is a health plan that, for 2007, has a deductible that is at least $1,100 for self-only coverage or $2,200 for family coverage. Thus, under current law, many taxpayers are limited to a contribution equal to 100% of the deductible since many opt to take only the minimum required deductible.

Consequently, under the provision in the new law, the maximum aggregate annual contribution that can be made to an HSA is $2,850 (for 2007) in the case of self-only coverage and $5,650 (for 2007) in the case of family coverage, regardless of the amount of the deductible.

US Import and Export Trade Statistics: 3rd Quarter Review
The following is a summary of major trends of US exports and imports for the January - September 2006 period. Statistics are reported for all woodworking equipment and its three component parts: machines, cutting tools and, accessories and parts.

WMMA members: to view detailed tables on US imports and exports of machinery, cutting tools and parts and accessories, by country visit click here and scroll down to the spreadsheets listed under the heading "US Imports and Exports of Woodworking Machinery, Cutting Tools and Accessories". You will need your user name and password. If you don't have one or have forgotten it, contact WMMA Headquarters at 215-564-3484 or email wmma@fernley.com.

Harold Zassenhaus is available to provide US export and import data on specific product categories. For more information, contact him at (301) 652-0693, fax (215) 963-9785 or email at hzassenhaus@fernley.com.

Total Woodworking Equipment Market
For the first time in several years, exports of woodworking equipment (machinery, cutting tools and parts and accessories), grew at a faster pace than imports. US shipments abroad recorded an impressive 11% increase through the third quarter, growing to $264 million. However, the increase is largely due to a dramatic 75% increase in exports of parts and accessories. Exports of machines actually decreased by 12% and those of cutting tools rose by 23%.

Canada purchased 38% of our exports and it is interesting to note that its influence appears to be decreasing. Mexico, Germany, Australia and Poland rounded out the top five markets over the nine-month period.

Imports increased six percent over the first nine months of 2006 compared to the same period in 2005. Imports reached $1.33 billion. Imports from Taiwan and China accounted for 43% of the total with imports from China continuing to grow (up nine percent) and those from Taiwan continuing to decrease (-27%). Taiwan's decrease seemed to be at the hands of not only China, but Germany as well. Imports from Germany rose a dramatic 37% through September to $256 million and it is now the 2nd largest supplier nation.

In excess of 90% of Chinese imports continue to be small stationary commercial products like simple mitre saws, scroll saws, band saws, sanders, etc. each valued at under $1,000. However, the Chinese increasingly are producing and exporting more sophisticated and industrial grade machinery.

Machinery Trade
As mentioned above, machinery exports decreased by 12% to $115 million, not due to a slump in any one destination but a combination of a drops in sales to a number of countries. Sales to Canada, however, remained constant at about $40 million.

Imports of machinery totaled $773 million through September, a 9% increase over the same period in 2005 and is largely due to significant and abnormal purchases ($70 million worth) of German particleboard press machines. Through September, Germany was the largest supplier nation: imports increased 62% to $187 million. Other significant purchases from Germany included CNC boring machines, CNC routers and sliding table saws.

Imports from Taiwan declined by 27% while shipments from China increased by 14%. Imports from our other major suppliers including Italy, Canada, Austria, Spain and France increased while those from Japan decreased.

Cutting Tools
Cutting tool exports increased for the period by 23% to $90 million. Reflecting the larger trend, exports to Canada dropped in importance, accounting for less than 50% of shipments or $37 million. Sales to Mexico jumped over 175% to $20 million, perhaps and hopefully reflecting a growing need for higher tolerance tooling and a growing woodworking sector.

Cutting tools imports increased by six percent over 2005 to $379 million. China continued to capture market share (to 23% up from 22% last year at this time).

Parts & Accessories
Exports dramatically increased by 75%, reaching $59 million much of the increase due to shipments to Mexico that shot up to $18 million from a customary base of about $1 million and exports to Ireland which went up to $4 million (normally less than a $1 million market).

Imports dropped by five percent, a sharp turnaround from years' past double digit growth. Surprisingly, imports from China dropped as did those from Germany, Sweden Taiwan and Japan and while imports from other leading importers like Canada and Israel grew.

WMMA is continuing its lunchtime Lean Webinar Series in 2007 exclusively for and free to WMMA members. Make 2007 the year you get serious about driving down production costs, increasing efficiency and bettering customer service and satisfaction. Mark your calendar, invite your colleagues and plan to participate in the following information packed sessions. Each webinar goes from 12:00 pm -1:30 pm EST.

• February 1: Performance Management: The concepts of standard costs, inventory valuations and variances all drive behaviors that are in conflict with Lean Thinking. Change the mindset and build a culture that supports lean thinking, using a combination of lean performance metrics at the corporate, value stream, and cellular levels.
• March 1: Kaizen Blitz: Learn and share tips and techniques to launch a Kaizen Blitz, keep the process on track, link it to other company areas and get you and your employees comfortable with initiating them on a regular basis, reinforcing your Continuous Improvement Culture.

To register for the Performance Management webinar:
Click here. Once you have registered an email with the meeting information and password will be sent to you.

To register for the Kaizen Blitz webinar:
Click here. Once you have registered an email with the meeting information and password will be sent to you.

If you need assistance with the registration process, contact: Miriam Grap at mgrap@consultimc.com or call 410-505-4661

Please verify that you have rich media players installed before joining the webinar.

This Webinar series is brought to you by WMMA's Manufacturing Strategies Committee. To learn more about the committee's programs, members and how you can participate, click here.

Recently, WMMA announced our endorsement of National City Manufacturing Finance as a preferred partner for WMMA members and their customers. There were several key factors that lead to this partnership. National City Manufacturing Finance's parent firm, National City Bank, is the 8th largest U.S. commercial bank. Cincinnati based National City Commercial Capital is one of the largest financing & leasing companies in the U.S. and the National City Manufacturing Finance division specializes in financing the equipment, systems, and projects represented by our core members and their customers. As such, we feel that National City Manufacturing Finance can offer WMMA members and their customers several unique benefits:

Important Benefits to Members:
• Faster payment including progress payments
• Helps reduce pressure on margins
• Incremental and larger sales

Important Benefits to Customers:
• Spread the cost of the systems over time
• An Operating budget, vs. Capital budget, solution
• Competitive, fixed rate financing for the system integration project

By now, you have received a FINANCING SALES GUIDE to help your sales team understand and utilize the benefits of financing. Of course, we don't expect you or your sales people to become financing experts. National City Manufacturing Finance provides regional and national expertise and will assist you in helping your customer explore financing options. Just call the National City representative on the enclosed brochure.

Also enclosed was a customer brochure, INNOVATIVE SOLUTIONS EXPERT FINANCIAL KNOWLEDGE. It is our hope that you will present this brochure to your client in situations where the sale bogs down or to help overcome objections to "Price", "Budget" , "Timing" or "Authority". When a customer hesitates or uses any of these words it might be a "Financial Buying Signal" (where a financing solution might help your customer overcome an internal constraint or hesitation).

If you find you would like additional copies of either brochure, please contact Bill Colwick at 800-446-6722 or Tom Strickfaden at National City Manufacturing Finance at (248) 865-8680.

We truly hope you find this financing program to be of value. Our shared goal is to provide you and your customers with prompt, attentive and convenient service. We welcome your feedback and recommendations.

Editor's note: Andrew Liveris, chairman and chief executive officer of Dow Chemical, recently delivered a speech to the Detroit Economic Club on the state of manufacturing in the United States. His talk is excerpted and adapted for print. Reprinted from the January 2007 issue of BedTimes (www.sleepproducts.org/bedtimes).

With all due respect to certain historical analogies that have become popular in the past few years, let me say that the Pax Americana dwarfs the Pax Romana in every conceivable way. No Roman, no Thracian, no Egyptian of Rome's golden age could imagine the living standards that are enjoyed today by hundreds of millions of people. And they certainly couldn't imagine the freedoms or the individual opportunity, or-and this is probably the most important-the potential to improve upon all of these things. America is indeed the indispensable nation of our times. And that leads me to three things I want to talk about:

• First, the importance of manufacturing to the health and vigor of the overall U.S. economy;
• Second, the forces that threaten U.S. manufacturing, particularly the high price of energy;
• And third, the far-reaching-and ominous-consequences of a weakened American manufacturing base, not only for the United States, but for the world.

It is the American economy that underpins the international system that has guided this unprecedented era of stability and prosperity-and that holds so such promise for humanity's future. And that's what worries me. Because today I believe the American economy is under siege, and though I do not dismiss the many geopolitical threats at large in the world, I believe the greatest threat to the United States-and its world leadership-is internal, not external. And here I will cite the threat to this country's most under-appreciated economic pillar: the manufacturing sector...Will the chemical industry and other manufacturers continue to be a part of the American economy? I think that is a crucial question for policy-makers in this country.

An 'irrelevant' sector?

I am well aware there are those who believe that manufacturing is part of the "old economy;" that making things is a low-value proposition. Many cite the decline of manufacturing as a percentage of gross domestic product, which 50 years ago accounted for 25% of GDP and today is about 12%. In fact, I had the dubious pleasure of being at a meeting in Washington not long ago where I listened to a banker hold forth on why manufacturing isn't very important at all. I think his exact words were "manufacturing has been deemed irrelevant." I had to bite my tongue until it just about bled. "Irrelevant" is an odd characterization for a sector whose output is $1.5 trillion-about the size of the entire economy of China and equivalent to the eighth largest economy in the world. It is an odd characterization when you consider that manufactured goods make up over 60% of U.S. exports. And it is a particularly odd statement when you consider that manufacturing directly employs more than 14 million people in the United States, and that one in six of all private sector jobs depends on manufacturing. Odder still when you consider that manufacturing productivity consistently outpaces productivity growth in other sectors. Since 1987 manufacturing productivity grew by 94%-2 1/2 times faster than productivity for the rest of the economy. And considering the fact that productivity is the single most important determinant of higher wages and benefits, it is not surprising that manufacturing jobs pay on average 25% more than non-manufacturing jobs. ...Finally, "irrelevant" is an odd characterization for a sector that is responsible for more than 70% of nongovernmental R&D. Ultimately, we have to decide. Is this to become a country only of services?...Can we really afford to be eternal consumers of what someone else invents and manufactures? ...Now again, don't misunderstand. There is nothing wrong with the service sector. It surely adds tremendous value, but it cannot sustain an economy this powerful on its own. Someone has to invent stuff and someone has to make stuff, and innovation and manufacturing are inextricably linked.

Manufacturing under siege

And so I, along with many others who appreciate this country's historic leadership, wonder how it is that policy-makers can stand by as the great manufacturing pillar of this economy is being undermined....In a recent report, the National Association of Manufacturers cited five structural problems. Together they add a staggering 32% to U.S. manufacturers' production costs, as compared to this country's major trading partners. To put that number in its simplest terms, these disadvantages add $6 of cost for every hour of manufacturing production. While it is well known that Mexico and China have lower costs, it is generally not recognized that America's self-imposed structural costs put U.S. manufacturers at a disadvantage, even with competitors in mature economies, including Canada, Japan, Germany, the United Kingdom and France....So what are the culprits that are driving higher costs in our manufacturing sector?

• Corporate taxes
• Employee health and pension benefits
• Government over-regulation
• A deeply flawed civil justice system
• High energy prices

I will concentrate the bulk of my remarks on energy because I think it is a problem that strikes at the heart of this economy. But first a brief review of the other four.

Corporate taxes.

Nobody seems to have noticed that while other countries have been lowering their corporate tax rates, here in the United States they have remained roughly the same. On top of that, the tax credit for research and experimentation, which has been helpful to the development of technology, has expired, and its renewal is in legislative limbo.

Employee health and pension benefits.

Health care costs continue to rise, as do insurance costs-in a country that is by far the world's largest spender on health care. The solution is not for companies to shirk their responsibilities to their employees, although for smaller companies, which generate the majority of new jobs in this country, the cost can be crushing-as much as 30% of their sales. But surely, if we in manufacturing can improve our productivity, there are ways that the same can occur in the health care industry. For example, more preventive medicine, computerization of records, more efficient use of expensive diagnostic equipment like MRIs and incentives for patients to act more like customers-seeking the best treatment at the best price, as opposed to the best treatment at any price.

Government over-regulation.

The annual cost of federal regulations to manufacturers in this country is more than $10,000 per employee. For non-manufacturing businesses the cost is half that. No one is suggesting that all regulation is bad; much of it we couldn't live without. But surely there is room for simplification and, again, for examining how other Western economies provide the same level of safety and security as the United States but at a lower cost to their manufacturers.

A deeply flawed civil justice system.

What Voltaire once said of the Holy Roman Empire-that it was not holy, nor Roman, nor an empire-can likewise be said of the civil justice system- not civil, not just and not a system...The United States has the most expensive tort system in the world, costing more than $250 billion a year, or 2.1% of GDP, compared to less than 1% in Japan, France, Canada and the United Kingdom. ...Our efforts for reform will continue, with the ultimate goal of eliminating the economic incentives that encourage frivolous and unfair lawsuits.

High energy prices.

This problem is particularly threatening because energy powers civilization. It is at the very core of modern life. Today 80% of the energy the world uses is in the form of fossil fuels. And with the growth of large emerging economies like India and China, demand for energy will increase by 50% during the next 25 years, and 80% of that energy will remain in fossil fuels. Yet this country doesn't seem to have a coherent energy policy.

Getting at natural gas

Let me specifically focus on natural gas because it is the primary fuel used by manufacturers in this country. Natural gas is not a global commodity with a single world price, like oil. It is generally transported from wells by pipelines. While it can be chilled into a liquefied form and moved by specially designed ships, only about 3% of the world's natural gas is transported this way. Thus the price of gas is driven by local supply and demand. For years, the price of natural gas was a competitive advantage for manufacturers in this country. For two decades it was priced at between $2 and $3 per million BTUs. Most of it was produced here with some piped in from Canada. About five years ago, the price began to increase dramatically.

This alarmed most manufacturers, but especially companies like Dow Chemical because we use natural gas-and other petroleum products- not only to power our plants, but also as raw materials to make plastics and chemicals, which in turn are used by virtually every industry....At Dow in 2002, we spent about $8 billion on feed-stocks and energy. This year that figure will be well over $20 billion. So the price of natural gas, which for years had been a competitive advantage for U.S.-based manufacturers, is today a competitive disadvantage because its price here is well above the price in other countries.... A year ago, at the time of the hurricanes, it was above $15. Then it moved down to about $8, and recently it has ranged between $3.60 and $8.60.

But the trend is clear: The price of natural gas has jumped to a much higher plateau in the United States, putting the manufacturing sector at a disadvantage. You would hardly know any of this by reading the papers or watching TV or listening to the debate in Congress, but this country is in a natural gas crisis.

Last year's hurricanes underscored this problem, but they did not cause it. The cause is Economics 101: higher demand and static supply. We use more natural gas because this economy is growing, but also because the nation's power plants have been encouraged by the government to use it as a clean-burning fuel. ...Exacerbating the problem is the fact that those who supply natural gas have been largely prohibited by the government from drilling in the most gas rich areas, including most of the outer continental shelf, where it is estimated there is enough natural gas to supply the United States for 20 years.... We seem to have a faith-based energy policy. We pray for warm winters and cool summers...There is also no great clarion call to conserve energy, which is the most immediate and effective way to reduce our dependency on foreign energy. And there are very few tax or monetary incentives to conserve. There does not even seem to be serious discussion, as there is in countries like China, on how best to use this country's various forms of energy.

At the end of the day, companies like mine have to decide where to invest for the future. Where will we build our next $2 billion plant and, along with it, create high-paying jobs for thousands of people? We are looking and beginning to invest in places like China and the Middle East, where energy is much cheaper, and energy policy much more coherent and predictable...When faced with the choice of investing in the United States, with the certainty of higher and more volatile natural gas prices, how can I recommend investing here?

Dow isn't the only company making this kind of decision. Currently, there are plans to build more than 80 large-scale chemical plants across the globe-with price tags of a billion dollars or more and thousands of good jobs. Not a single one is planned for the United States.

World needs strong U.S.

Everywhere I go...governments want our industry. They want the investment and the high-paying jobs and the living standards that go with it. And they are building an energy infrastructure to make it happen. Everywhere I go, that is, except the United States...Let's not kid ourselves. There is no such thing as a 100% service economy. Making stuff matters. Manufacturing is essential, and if your manufacturing base is eroding, then so eventually is your entire economy. And if the economy of the world's indispensable nation is weakened, then the rest of the world will suffer.

Those of us who know this country well are not at all pessimistic. We know that sooner or later the American giant will stir to action. I am reminded sometimes of the observation, said only half in jest, "that the United States can always be counted on to do the right thing- once all other possibilities have been exhausted." Let's hope that this time around, the giant will stir to action sooner rather than later. This country must reaffirm its commitment to a robust manufacturing base, to assure not only the continued health of its economy, but its continued leadership in the world. The United States needs manufacturing and the world needs the United States.

The following article was written by Chris Lineback, currently a senior at North Carolina State University. Last summer, Chris, an Industrial Engineering major and WMMA scholarship recipient, interned at not one, but two WMMA member companies. The article below details his experience. If you or someone you know is interested in benefiting from the WMMA scholarship program, contact Headquarters at mpappas@fernley.com.

As the first WMMA intern to work for two member companies in one summer, the experience gained will prove invaluable for my future. Moving from North Carolina to Michigan for two months was a big decision for me to make and looking back, I have absolutely no regrets. Alexander Dodds, Co. and Carter Products Company, Inc. were both very hospitable and helpful as I learned about their products, manufacturing processes, business processes, as well as day to day procedures and practices that keep manufacturers in America competitive.

Awarded the WMMA/NCSU scholarship in November of 2005 following an interview process and screening panel, I was given the chance to travel to Grand Rapids for a two month internship orchestrated by Mr. Peter Perez of Carter Products. My internship actually began in March, when Mr. Perez arranged for me to fly up for two days and see the two companies, familiarize myself with the area as well as finalize my living arrangements. This was a great trip as it eased my doubts and gave me comfort in that I knew where I was going and what I would be doing when arriving in June.

Upon completing the required Wood Products Practicum at NC State in early June, I arrived in Michigan and reported to Glen Gilson at Alexander Dodds on June 15th. Mr. Gilson and I worked closely together on many projects. A couple of the assignments I undertook were to help in the redesign of the Belt Tensioning Bracket on their CNC Single End Dovetailer, modeling and detailing dozens of parts for their Builders Clamp and Drawer Back Notcher in SolidWorks, and also simulating and analyzing deflection, factor of safety, stress, and fatigue data for machined parts. The month flew by as I was kept busy and always learning.

In mid-July, I began interning at Carter Products and was right away learning the ins and outs of the business world as I sat in on the first of several company status/outlook meetings. Working under Jeff Folkert, Production Engineering Manager and Terry Camp, Vice President, I learned about the many products Carter Products offers as I modeled band saw guide mounts and stabilizers as well as their 2-D Laser in SolidWorks. Other assignments included helping in the possible redesign of the 2-D laser, designing a new stabilizer band saw guide, calculating and analyzing the failure rate of the 2-D laser, assembling Micro Precision guides as well as helping out with possible price markups. Just as before, this month also went by very quickly.

By allowing me to intern at two different companies I was able to learn twice as much about the manufacturing industry in one summer. Alexander Dodds and Carter Products are two companies that have been successful for many years and yet operate very differently. One company relies on day to day orders and quick production while the other takes orders months in advance and produces machinery that takes months to put together. While neither approach is wrong, both are different and allowed me to utilize processes I've only learned about in school, such as lean manufacturing, kanban, to go along with actual machining knowledge. I have gained a better sense of how they are implemented. Furthermore, this experience has broadened my vision of future job possibilities from a mostly furniture manufacturing and engineering oriented path to a more all-inclusive engineering search pertaining to all types of manufacturing.

The WMMA scholarship and internship program has turned into a tremendous asset for my future. I would encourage anyone interested in manufacturing to apply for this scholarship and to also try and work out a dual internship as the benefits have been two fold. I will be finishing my Industrial Engineering-Furniture Manufacturing degree this year from NC State University and I believe this program has jump- started my career. Confident and now somewhat experienced in what the industry is about, I have the WMMA to thank. I again want to express thanks to the committee, everyone at Alexander Dodds and Carter Products, Glen Gilson and especially Peter Perez for an unbelievable summer.

The following information is courtesy of Institute for Trend Research, a partner of WMMA and the WMMA Business Development Committee.

• The Purchasing Managers Index (PMI) was released earlier this month and the news is better than we have seen lately. The Index went above 50 and the rates-of-change also improved. It is too early to call the reversal; it will take some additional good months to make this a statistically meaningful event. In the meantime, we are very glad that the breeze is blowing in a favorable direction! For more information, click here.
• The December 2006 US Leading Indicator is out and the trend portends an ongoing process of slower growth ahead for the economy at large. The housing market is likely to remain mired in outright recession. The news definitely could have been worse but there also isn't anything to point to and get upbeat about. No sign yet from the US Leading Indicator as to when the economy will pick up speed
• New orders for manufactured goods in November 2006 rose 0.9% from the previous month, to $394.3 billion. Shipments increased 0.1%, to $390.0 billion. Unfilled orders rose 1.7%, to $678.6 billion. And inventories were $481.9 billion, up 0.2% from October. The inventories-to-shipments ratio was 1.24 in November 2006, up from 1.23 in October.
• Housing starts in December 2006 were 1,642,000, up 4.5% from November but down 18% from December 2005. Permits were 1,596,000, up 5.5% from the previous month but down 24.3% from one year ago.

To learn how to use Leading Indicators to improve your business forecasting check out the WMMA Business Development Programs.

WMMA's Leadership Development Committee is preparing the slate of Directors for the Board term expiring in 2010. Kenny Moffatt, Chairman of the Leadership Development Committee, is open to your suggestions on who the committee should consider for these openings. Your suggestions should include members who have been active in the Association and its activities.

These individuals should be known for their character, strength and integrity. They must also embrace change, while maintaining the strengths of the existing organization and identifying the key challenges facing the Association and industry. Nominations should be sent immediately to Mr. Moffatt, c/o Unique Machine & Tool Co., 4232 E. Magnolia Street, Phoenix, AZ 85034 or via fax (602) 470-1916 or email at moffy@uniquemachine.com.

The WMMA® Baldwin Award is named for Ralph B. Baldwin, long-time member and Past President of the WMMA®. During his career with Oliver Machinery Company and his involvement with the WMMA®, Ralph exemplified the kind of commitment that really makes an Association function at, or near, its peak potential. It is in the spirit of Ralph Baldwin's vitality and dedication to the woodworking industry that this award was created-to recognize those who have contributed similar levels of involvement and to encourage others to do the same. The award's significance can be quickly determined by the prestigious list of recipients.

Nominate the individual you believe is deserving of this prestigious industry recognition. The award seeks to honor individuals who have made outstanding contributions to the industry, regardless of their affiliation with WMMA. Some activities that warrant consideration are: leadership in WMMA or the IWF Board, active committee involvement, innovations introduced to the industry, and participation in programs that benefit the industry. Please submit your nomination to WMMA by February 27th.

Download Baldwin Award Competition Rules

Download Baldwin Award Nomination Form

The woodworking industry and your business face new challenges every day. WIC offers thought-provoking discussions, workshops and other educational forums to better prepare you for today's ever-changing business environment.

The 16th Annual Woodworking Industry Conference will be held April 25-28, 2007 and is the premier forum for education and networking. Attending the WIC '07 at the Renaissance Vinoy Hotel in St. Petersburg, FL, is the right choice for your business.

By now, you should have received your WIC 2007 conference and registration materials. Keep an eye on your inbox for an exciting announcement about WIC 2007 registration! To read about this year's exciting program, visit www.wmma.org/events/wic.cfm.