Economic and Employment Snapshot
Concern about the economy has been driving every conversation I have had this year. People of all walks are more aware and fearful about the condition of our economy and the very active role that the national government has taken during this recession. I want to share results of a recent survey conducted by FCMA that focused on member’s outlook on the economy and their outlook on their workforces. I was amazed that more than 25% of our members responded to this survey within 48 hours.
This is an indication of how critically the issue of economy and employment is to the membership and by extension to the entire community. I believe it is important to share this information with our local elected
officials as they debate a new budget as well as the financial condition of each city and county beyond 2010.
Following are the key findings from the survey:
1. Uniformity of Results: The results were the same regardless of whether the respondent was a large-, small- or mid-sized company or whether it was a Manufacturer or an Associate.
2. Economic Outlook: Three questions were asked. Each related to a specific six-month period beginning January 1, 2009, and ending June 30, 2010. My conclusions are that business conditions were very bad in the first half of the year, but will begin to stabilize in the second half of 2009 and increase beginning in 2010. Specific results are listed below: (Note: The totals may not equal 100% because of non-response)
| Question/Period | Increased | Decreased | No Change |
|---|---|---|---|
| What did/will happen to your business? | |||
| January 1 – June 30, 2009 | 21% | 67% | 12% |
| July 1 – December 31, 2009 | 31% | 31% | 36% |
| January 1 – June 30, 2010 | 54% | 13% | 31% |
3. Employment Outlook: Four questions were asked. The first three related to how each company reacted to the change in business conditions. We were concerned about was happening to employment levels within each company and what specific actions employers were taking. Nearly 70% introduced some form of employment change in the first six months of this year. The largest percentage was a permanent lay-off followed by a freeze/reduction in pay. The majority indicate that payroll will tend to stabilize in second half of 2009 and continue at this reduced level into 2010. My conclusions are that members have dramatically adjusted their workforce to the business conditions, and will be cautious in adding employees or changing conditions as we move out of the recession. The specific results outlined in the following table combine the decrease or change in employment status in one category. (Note: The totals may not equal 100% because of non-response)
| Question/Period | Increased | Decreased/Changed | No Change |
|---|---|---|---|
| What did/will happen to your workforce? | |||
| January 1 – June 30, 2009 | 10% | 70% | 18% |
| July 1 – December 31, 2009 | 18% | 36% | 46% |
| January 1 – June 30, 2010 | 28% | 15% | 56% |
The shock of this recession continues to reverberate throughout FCMA’s membership. It is as important now as ever for us to circle the wagons and support each other. As an association we want to create opportunities to promote member-to-member business. In a separate article in this issue, you are asked to reserve September 11 for a Procurement Seminar. The goal of this seminar is to develop relationships between major manufacturers and the rest of the membership to help all understand the purchasing issues and processes necessary to do business with large companies. It is also intended to expand the vendor base for these large companies. I believe this seminar will help set the stage for stronger relationships between members that are critical in the current economic situation and will continue to be important as the economy strengthens.
Welcome to…
CopyFax
Contact: Jessie McFarland, Document Management Consultant
Phone: (904) 296-1600
6631 N Executive Park Court, Suite 210
Jacksonville, FL 32216
CopyFax provides end to end office management solutions to help businesses control expenses and increase productivity.
Sponsor: Tracy Jackson, CND Trucking
The Jimerson Law Group
Contact: Charles B. Jimerson, Esq., Managing Partner
Phone: (904) 389-0050
2124 Park Street
Jacksonville, FL 32204
The Jimerson Law Group concentrates its efforts in providing the highest level of legal services on a wide variety of business, corporate, and commercial litigation issues.
Sponsor: FCMA
McCall Service, Inc.
Contact: Bernie Farris
Phone: (904) 524-6506
2861 College Street
Jacksonville, FL 32205
McCall is a family owned pest management and petroleum distribution company. McCall offers services in pest management, termite control, fuel distribution, and lawn maintenance.
Sponsor: FCMA
Lunch and Golf with Purchasing Executives Friday, September 11
FCMA is excited about the exclusive opportunity for its members to attend a working luncheon followed by golf with key purchasing executives of our larger companies. The companies represented will include Atlantic Marine, CSX, Gerdau Ameristeel and Vistakon. The purpose of this activity is twofold: first, these larger companies are looking for local vendors that can provide a wide variety of goods and services; second, many of our members are looking for ways to better position themselves to provide goods and services to larger companies.
This unique opportunity to enhance member-to-member business will be a 2-hour luncheon seminar for a maximum 100 attendees and will be followed by a round of golf for a maximum of 36 players (FCMA will assign foursomes and each will include a representative from one of the presenting companies). Each company will be allowed to send a maximum of two attendees.
| When: | Friday, September 11, 2009 Luncheon Seminar: 11:00 AM – 1:00 PM Golf: 1:30 (shotgun) |
| Where: | Deerwood Country Club |
| Cost: | Luncheon Seminar Only - $75 per person Luncheon Seminar and Golf - $225 per person |
| RSVP: | First come, first served By confirmed email only Because of the anticipated demand and limited space, your advance payment will guarantee your participation. |
The participating executives are enthusiastic about the opportunity to share information on a variety of topics necessary for companies to be successful vendors and providers of services. We encourage you to register quickly to insure your participation in this extraordinary opportunity to enhance your business.
2009 Crane Awards
Outstanding Employee Award Banquet
UNF University Center, Jacksonville, Florida
September 18, 2009 6:30 PM - 9:00 PM
Click here for more information about the Crane Awards and how you can get involved.
Sponsorship Opportunities
FCMA is looking for sponsors for the 2009 Crane Awards. Click here to find out about sponsorships opportunities.
For more information please contact Maria Corby at the FCMA office
2009 Wage & Benefit Survey
Data collection for the 2009 Wage & Benefit Survey has been completed and sent to the press. It will be ready for release in August. Member companies can receive a copy of the survey for only $75. To order your copy or for more information call the FCMA office or e-mail Sherri Mitchell.
Many thanks to our survey sponsors!
2009 Manufacturing Summit
The Manufacturers Association of Florida’s Annual Summit for manufacturers and associated businesses will be held on November 5-6, 2009 at the Hyatt Orlando Airport Hotel, Orlando. The theme this year is “Manufacturing Today and Tomorrow.” Plant tours to Lockheed Martin and Mitsubishi Power Systems will be included. Click here for more information.
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.
Next Meeting Will Be MONDAY AUGUST 31ST!
Our next General Meeting will be held at Florida Machine Works from 4:00-6:00 PM on Monday, August 31st. Florida Machine is a complete machine development and fabrication facility. This facility is outfitted with the latest metalworking equipment including computer controlled sawing, bending and machining apparatus along with laser beam cutting equipment. Florida Machine Works’ facility is located at:86412 Gene Lasserre Blvd. For a map to the location, click here.
Owens Corning Packed ‘Em In!
Owens Corning hosted FCMA’s General Meeting on July 27th. The meeting was a huge success with a packed house and a good number of guests. Those present were provided with a tour of the Owens Corning facility. The Jacksonville Plant manufactures residential roofing and asphalt products. It is one of 14 plants across the country, which services regional customers with roofing shingles for homes and business.
Following are a few photos from the event…
July 14th at Waste Management
Our guest speakers were Mark Mills of the Political Leadership Institute and Jessica Deal of the Jacksonville Chamber (pictured below). The Institute is a non-partisan regional initiative designed to attract, encourage, and equip future outstanding public leaders with business-related experience who have the desire, energy, and commitment to make a difference in our region.
July Wage & Hour Update
Michael Young, District Director for the Dept. of Labor (pictured below) shared his expertise with a packed room of 37 attendees. This was an open forum to discuss best practices. Handouts included information on Youth employment provisions for Nonagricultural Occupations, defining and delimiting the exemptions for Executive Administrative, Professional, Outside Sales and Computer Employees. You missed a good one if you did not attend!
Auld & White Constructors… just completed their Flagler Hospital and St. Luke’s Hospital Family Birth Place projects. The architect for the St. Luke’s project was fellow member company Reynolds, Smith, & Hills.
BroadBased Communications… CEO Jan Korb was featured in an article in the Daily Record. Click here to read the article.
Fleet Readiness Center South East… is pleased to announce that CAPT Paul Sohl has assumed command, becoming the 38th commanding officer since the command was established in 1940. He relieved CAPT Tim Matthews.
Golder Associates, Inc…is pleased to announce that Heather Ahrens, Colleen Cunningham, Blake Meinecke, and Justin Styer recently became certified as Authorized Gopher Tortoise Agents by the Florida Fish and Wildlife Conservation Commission (FWC). Authorized Agents are permitted by the FWC to perform surveys for gopher tortoises and their burrows and to capture and relocate gopher tortoises under project-specific permits.
IFF Chemical Holdings… rehired John Otterson as manager of operations, planning, and performance for the Jacksonville plant. Welcome back, John!
Lewis, Longman & Walker, P.A…is pleased to announce that Brenna M. Durden has been named a Co-Chair of Reality Check First Coast, a seven-county visioning exercise designed to discus, analyze and develop alternative growth scenarios for Northeast Florida for the year 2060. The exercise took place on May 21 at the World Golf Village.
Mercantile Bank… promoted Christopher James Wasinger to senior vice president. He is a Florida mortgage lending manager and has been with the company since June.
Rayonier… is hosting a delegation from China later this month to talk about “mutual economic/business development opportunities,” according to Charles Hood, vice president of public affairs.
The Stellar Group… senior electrical engineer Michael Vranesh received the Illuminating Engineering Society of North America’s Illumination Award for his work on the Nestle Professional Customer Innovation Campus in Solon Ohio.
Swisher International… hired Lee Creasman, Jr. as senior vice president of human relations, effective Sept. 1. Creasman is a labor relations attorney. Lee will be replacing Barry Drugg who is retiring. We’ll miss you, Barry!
Business Journal 50…These member companies in the Jacksonville Business Journal’s list of Northeast Florida’s Fastest Growing Companies:
| #9 - Engineered Lining Systems | #43 - LBA Certified Public Accountants, PA |
| #12 - The Grimes Companies | #45 - Reynolds, Smith, & Hills, Inc. |
| #24 - Myers Seth Pump (MSP) Rental, LLC | #46 - Miller Electric Company | #31 - EverBank | #50 - W.W. Gay Fire & Integrated Systems, Inc. |
| #35 - Remedy Intelligent Staffing |
Florida’s Legal Elite 2009… The following member firms had attorneys who were named in Florida Trend magazine’s Florida’s Legal Elite 2009:
| Akerman Senterfitt | Holland & Knight | |
| Constangy, Brooks & Smith | Rogers Towers | |
| Fowler White | Smith, Hulsey & Busey |
- Employers may reduce 401(k) contributions to survive - As was also indicated in FCMA’s Employment Web Survey, employers are cutting back on their employee retirement contributions and matches to keep funding rising health care costs and, for some, to stay in business. However, businesses that are reducing their employee compensation matches hope for it to be temporary until there is an economic recovery.
- Temps can fill gap left by downsizing - “Many business owners are wary of hiring new workers until they see more solid signs of an economic turnaround. However, that doesn’t mean they don’t need extra help. That’s where hiring a temporary worker might be the right solution.” The results of our Employment Web Survey show opposite results. We found that the majority of our members plan on hiring permanent employees or rehiring previous employees.
- U.S. Leading Index Signals Stronger Economy - “The recession has been losing steam since the spring, although very large job losses continue. Nevertheless, confidence is slowly rebuilding. Financial markets are less volatile. Even the housing market is stabilizing. If these trends continue, expect a slow recovery this autumn.”
- Manufacturing Index Shows Improvement - “The Manufacturers Alliance/MAPI June 2009 composite index rose to 24 from an historic low of 21 reported in the March 2009. The index indicates that overall manufacturing activity is expected to contract over the next three to six months. While the index is at its second lowest level since the survey originated in March 1972, it marks the first time it has shown improvement since June 2007.”
- U.S. Taking Tougher Stand on ‘Substandard Labor Practices’ - “U.S. Trade Representative Ron Kirk said on July 16 that Washington is preparing to take a tougher stand on violations of trade agreements, including on substandard labor practices.”
- Study: Employers Lack Programs for ‘Ill-Prepared’ Workforce - “Nearly half of 217 employers responding to a survey published July 14 said they have to provide readiness training for their workers and that their programs have low success rates.”
- Henry Ford’s Proven Lessons for American Industry - “In their quest to understand lean and quality principles, manufacturers need look no further than to the father of the automobile production system.”
- Growth of Clean Energy Jobs Outpacing Other Jobs - “The number of jobs in America’s emerging clean energy economy grew nearly two and a half times faster than overall jobs between 1998 and 2007, according to a report by The Pew Charitable Trusts.”
- New Book Details the Decline of U.S. Manufacturing - “Manufacturing a Better Future for America, written by leading academic and industry experts, outlines why manufacturing is vital to the U.S. economy and provides objective information and analysis on a full range of topics - from the current state of U.S.-based producers and industry trends, the history of U.S. trade and industrial policies, and other countries’ unfair trade practices to the impact on workers, society, training, research, and defense.”
- Obama’s Ad Hoc Strategy to Reverse Manufacturing’s Fall - “So far Mr. Obama’s administration has not come up with a formal plan to address the rapid decline in U.S. manufacturing. Instead, it has pursued ad hoc initiatives — bailing out General Motors and Chrysler, for example, and pushing green energy by supporting the manufacture of items like wind turbines and solar panels.”
- Survival Tactics for Public Companies - How to use employees as strategic assets
- Beaches businesses say buy local - “It’s gotten more difficult for the owner of The Pineapple Post Inc. and owners of other small, independently owned businesses like his to compete with big national retailers in the recession.”
What is Advanced Manufacturing?
“According to the National Council for Advanced Manufacturing, advanced manufacturing involves “those manufacturers who are innovating in how they deploy their workforce, technology and supply chains to increase their global competitiveness, their environmental sustainability and the customization of their products and associated services to meet customer demands, whether the product itself is high-tech or low-tech.”
“Advanced facilities share traits like clean, well-organized, safety-conscious, communicative, and enthusiastic. While their products differ greatly, these common qualities of workforce, technology and process management set them apart as “advanced” manufacturers.”
Click here to read the entire article.
