Preserve Manufacturing Exemptions!

The First Coast Manufacturers Association (FCMA) and the Manufacturers Association of Florida (MAF) have come together to commission a survey of the manufacturing sector’s importance to our state. The economic impact study, completed by the highly respected Florida TaxWatch group, should make it clear to lawmakers that preserving sales tax exemptions on manufacturing inputs is vital to protecting Florida jobs.

Here are a few highlights of the TaxWatch study…

• Florida manufacturers currently receive $336 million in sales and use tax exemptions, allowing manufacturers to reduce their costs of production and become more competitive. The repeal of these exemptions would result in a higher cost of production - in many instances reaching a “tipping point” to where manufacturers would be forced to seek and expand non-Florida manufacturing facilities and employment.

• If the identified manufacturing tax incentives are eliminated, as has been discussed by some, the Florida TaxWatch study reports that it would result in a net loss of more than 3,300 Florida jobs, $980 million in GSP, $2.3 billion in state output, and $200 million in exported goods by 2018.

• The Florida TaxWatch economic impact survey reports that Florida manufacturers provide employment for nearly 400,000 workers in our state.

• The manufacturing sector’s total contribution to Florida’s Gross State Product is estimated to be $122 billion in 2009. That represents 5% of total GSP, compared to the agriculture industry which represents less than 1% of GSP.

• For each job directly created by manufacturing expenditures, an additional 1.7 jobs is created through indirect and induced impacts. The cumulative number of jobs created by Florida’s manufacturing sector will reach more than 1.4 million by 2018.

• Florida is one of only a handful of states that remains a net exporter, and the manufacturing sector accounts for 93% of our state’s exports. As of 2007, Florida’s trade balance was 51 percent export and 49 percent import.

• According to the National Association of Manufacturers, Florida currently ranks as the 19th highest cost state in which to do business.

• Currently, Florida provides only a partial exemption for manufacturing machinery and equipment purchases. Only new or expanding businesses are eligible for this tax incentive. Compare that to the far more extensive exemptions that are offered by key competitor states in the Southeast, as analyzed in the study.

• Florida TaxWatch recommends that the Florida Legislature retain the current sales and use tax exemptions on Florida’s manufacturing sector.

To read or print the full economic impact study from Florida TaxWatch, click here (available in PDF Format).

FCMA Welcomes Our New Members!

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Clements Lands JAXPORT Publications!

Clements Publishing has been awarded the contract to publish the JAXPORT Official Directory and JAXPORT Magazine.

Established in 1998, Clements Publishing Company is recognized for its high quality, niche publications. The umbrella of well-read professional publications includes Manufacturing on the First Coast, The Northeast Florida Education Guide and Prudential Network Realty’s First Coast Relocation Guide. Clements also produces the official monthly magazine of the Northeast Florida Association of Realtors, NEFAR News.

“We are looking forward to working with JAXPORT in this unprecedented era of growth for the port and the city,” said Mike Clements, president of Clements Publishing.

JAXPORT publications continue to be one of the most important resources for conducting business in the maritime industry. The professional publications support their efforts to be a major economic engine for Northeast Florida by continuing to be a premier diversified port in the Southeastern United States.

BroadBased Communications… Jan Korb, president and founder of BroadBased Communications, has received this year’s Silver Medal Award, presented by the Jacksonville chapter of the American Advertising Federation (AAF). Also from BroadBased… The Jacksonville Chapter of the Florida Public Relations Association named Maria Coppola to its board of directors. Coppola was also named media relations chairwoman for the group.

Gate Concrete… a manufacturer of precast/prestressed concrete products and hollow core in Jacksonville, FL, has received certification by OSHA’s Safety and Health Achievement Recognition Program (SHARP). SHARP recognizes employers who operate an exemplary safety and health management system. Don O’Neal, Safety Manager at Gate Concrete, plans to work with all of Gate’s plants to achieve this certification which will single Gate out in the industry as a model for worksite safety and health.

Golder Associates… hired Kim Baines-Baumann as human resources manager for its Jacksonville and Boca Raton offices. She comes to the firm with nine years of professional experience in her field.

Rayonier… has elected David Oskin to its board of directors.

Smith Hulsey & Busey… Mayor John Peyton recently appointed Stephen D. Busey to the Jacksonville Port Authority’s board of directors. Busey is the chairman of the firm’s litigation department.

Big Crowd at FCMA Networking Event!

FCMA’s first Members Only Networking Event of the year, held at the Mudville Grille, was a major success. More than 80 members came out to spend some social time together on March 19, including represenatives from more than 35 manufacturing firms!

Admission was only $5 and most of that money went into awarding cash prizes to those attending. The remainder, 25% to be exact, is being held in a pot and will be awarded at the year’s final networking event. In order to be elligible to win the big jackpot, you must attend ALL THREE of this year’s scheduled networking events.

Following are a few photos from this event…

Many Thanks to Our Event Sponsors!

Bridgestone Welcomes FCMA!

More than 150 people showed up for FCMA’s March General Meeting at Bridgestone. Located in the Cecil Field Industrial Center, it is currently the largest Bridgestone Firestone distribution center in the country at over 1 MILLION square feet!

At the top of the agenda were updates on our latest lobbying trip to Tallahassee and the release of the recent Florida TaxWatch economic impact study.

Jacksonville City Councilmembers Michael Corrigan and Ray Holt were present, as was Clay County Commissioner Doug Conkey. Food was provided by Kelly Services.

Following are a few photos from the event…

Workshop Teaches Problem Solving

On March 16th, FCMA’s Workforce Development committee held a Problem Solving workshop lead by Amy Erickson. Participants learned strategies to identify and solve problems in key areas. The workshop was held at the Jacksonville Sheriffs Office and was sponsored by SingleSource Services.

Tallahassee Trip a Big Success!

On March 25-26 a group of FCMA members and staff traveled to Tallahasee to lobby on behalf of our 2009 legislative agenda. Clearly recognizing the importance of manufacturing to our state, lawmakers were eager to meet with the FCMA delegation. During their two days at the Capital, the group conducted a non-stop series of meetings with local representatives and high-ranking state lawmakers.

The top issues discussed included protecting manufacturing’s sales tax exemptions, workers compensation, and the future use of SIC/NAICS codes. Each legislator the group met with was given a full copy of the recent Florida TaxWatch economic impact study, showing just how important manufacturing really is to our state.

Following are several photos from the trip…

Employee Free Choice Act Workshop

The First Coast Manufacturers Association is pleased to announce that our monthly Workforce Development workshop for April will tackle the so-called Employee Free Choice Act, also known as Card Check.

This workshop will be held on April 22nd, from 7:30am to 9:30am… so please save that date on your calendar! Members will get an email with pricing and location information.

You can RSVP by sending an email to sherri@fcmaweb.com or calling (904) 343-9372.

Annual Charity Golf Tournament

As part of our commitment to workforce education, FCMA is a strong supporter of the University of North Florida’s Engineering School. To that end, we have created a scholarship to benefit engineering students. In support of that scholarship fund, each year we sponsor a charity golf tournament. This is a fun event that also offers team building and networking opportunities.

Please remember to mark your calendars for FCMA’s Annual Golf Outing on Monday, April 20, 2009 at Marsh Creek Country Club.

Sponsorships are still available for this event. We are also looking for Silent Auction items, Goody Bag items; and door prizes.

For the sign-up sheet, click here.

To learn more, contact Jeff Nelson or Dan Davis.

FREE LUNCH from the EHS Committee

Attention Associate Members of the EHS Committee! You will receive your lunch for free and your Manufacturing member guest’s lunch, when you bring an FCMA Manufacturer who has not previously attended an EHS Committee meeting or has not attended within the past year.

In addition, your name will go into a drawing for a door prize for all Associates helping to increase manufacturing’s participation.

For a schedule of EHS Committee Meetings, click here.

• Insiders discuss Jacksonville’s trade future - Three industry insiders discussed the challenges facing the growth of trade in Jacksonville Tuesday morning. The participants were Jerry Mallot, executive director of Cornerstone; Dennis Kelly, TraPac Inc. regional vice president; and Peter Anderson, Pattillo Construction Co. vice president. The panel was moderated by Lad Daniels, President of the First Coast Manufacturers Association.

• Manufacturing Output at Record Lows - The overall operating rate for manufacturing, mining and utilities fell to 70.9 percent of capacity in February, matching a record low set in December 1982, when the country was just beginning to pull out of the severe 1981-82 recession.

• Preparing for China’s Urban Billion - The scale and pace of China’s urbanization continues at an unprecedented rate. If current trends hold, China’s urban population will hit the one billion mark by 2030. In 20 years, China’s cities will have added 350 million people, which is more than the entire population of the United States today. By 2025, China will have 221 cities with one million–plus inhabitants—compared with 35 cities of this size in Europe today—and 23 cities with more than five million. For companies in China and around the world, the scale of China’s urbanization promises substantial new markets and investment opportunities.

• Marketing During a Recession - There is no question that we are in a serious recession with no end until at least 2010. However, it will end, I promise you that. With that said, however, you need a marketing plan to get through these difficult times and it really must be a different strategy from what you have done in the past. Conditions and consumers have changed and now you must change your marketing strategy.

• Dosal Tobacco Feels Pack of Trouble - Adding to Florida’s cigarette tax is one thing, say Dosal Tobacco executives. But they think it’s unfair to slap a fee on their products by retroactively including the company in a legal settlement in which it had no part.

• Times Are Tough, But Not As Unusual As You Might Think - Every day, we are assaulted by the media with bad news about the economy — declining equity markets reducing people’s 401k plans and net worth, massive job losses, mounting numbers of home foreclosures, and on and on. No wonder automobile sales plunged by 50% in February compared with the same month a year ago. People are living in fear about the future and are just hunkering down, but, as FDR said 70 years ago, “All we have to fear is fear itself.” These are not such strange times when you look at history. Have you heard the question: “When was the last time the United States had a continuous 10-year period without a recession?” The answer is: never.

Our Next Meeting Will Be TUESDAY APRIL 28th!

Our next General Meeting will be held on April 28th at Gerdau-Ameristeel in Baldwin. Come out and see FCMA’s Manufacturer of the Year and Florida’s only steel mill. It is manufacturing on a GRAND scale!

IMPORTANT: Proper attire is required for the tour. In order to avoid delay at the guard station, please RSVP for this meeting to the FCMA office at (904) 343-9372 or information@fcmaweb.com.

For a map to the location: click here.

America is Still #1 in Manufacturing!

A recent item in Entrepreneur magazine noted…

• China manufactures 8% of the value of the world’s manufactured goods, while the U.S.’s share is 21%, according to the Cato Institute’s Center for Trade Policy Studies.

• Forty-one percent of the small manufacturers in the U.S. (sales less than $15 million) have a global growth strategy, according to a study by the consulting firm RMS McGladrey.

Both of these are surprising statistics because they contradict, to an extent, what the general public’s perception of manufacturing is.

Contrary to the first statistic, China and other low-cost nations are perceived as the global centers of manufacturing. Often, the following U.S. Census Bureau fact is thrown out to underline the world’s reliance on low-cost countries–China exported $287.8 billion worth of goods to the U.S. in 2006, while the U.S. exported only $57.2 billion worth to China. But this statistic is misleading as it doesn’t account for the fact that U.S. manufacturers shipped approximately $5 trillion worth of goods worldwide in 2006.