TMTA Talk - July 2012 - The TMTA | Tooling, Manufacturing
Transcription
TMTA Talk - July 2012 - The TMTA | Tooling, Manufacturing
Volume 19, #523, May 2008 Volume #6 July 2012 The Coming Economic Collapse by: Peter Morici Inside This Issue Page 2 Health News New Physician Information Healthcare Ruling BCBSM Win by Losing Contest The U.S. economy is teetering on the brink of another recession. The bad news is that if it goes down again, there won’t be much we can do to save ourselves. Like a weary heavyweight, if the economy hits the mat again, it’s down for good. Page 3 Health News (continued) Exercise to Reduce Cankles FYI New TMTA Mailing Address The expansion has been terribly disappointing—growth is hardly 2 percent and jobs creation barely keeps unemployment steady at 8.2. Page 4 Counterfeit Parts in the DOD Supply Chain Manufacturing and exports powered the recovery but are now weakening. Consumer spending and existing home sales are flagging, because policymakers failed to aid underwater homeowners as generously as the banks. President Obama is doubling down on slow growth policies—new restrictions on offshore oil and CO2 emissions, and pushing forward with financial regulations that haven’t stopped Wall Street banks from trading recklessly and rigging markets as indicated by the Libor scandal. Governor Romney has reverted to shop-worn Republican prescriptions-tax cuts, free trade and deregulation. With the federal government spending 50 percent more than it takes in, no sane economist could endorse big rate cuts, beyond renewing the Bush tax cuts. (Rob's Roost continues on Page 6) Page 5 2012 TMTA MSDs Mailed Page 6 Rob’s Roost (continued) Inflation Talk: CPI-W/CPI-U Page 7 TMTA Personnel Practices Survey Request TMTA Endorsed Providers Page 8 In Memoriam Joseph W. Schwartz Helmut Boehm Made in America August 2012 15 TMTA Board of Directors meets at TMTA offices Visit www.thetmta.com for detailed, up-to-date information on all events. New Physician Information on BCBSM.com On July 1, 2012, Blue Cross Blue Shield of Michigan enhanced their “find a doctor or hospital” search function and health care directory making it easier for members to find and compare doctors and hospitals in order to find the one that is right for them. Users will find easy-to-use expanded search criteria and more detailed information about hospitals and doctors. Members will be able to write reviews and view reviews about doctors. Users can search for a doctor, hospital or other health practitioner by health condition, Physician Group Incentive Program participation, Patient-Centered Medical Home Program designation and other criteria. Members can view doctors’ educational backgrounds listed on their profile pages. The member can list specific criteria to compare up to 6 facilities or doctors side-by-side. Hospital cost information will be fully integrated into the BCBSM secured member website search and directory. Users will no longer need to visit a separate website to view these costs. Members do not have to log in to view physician information but, in order to write a review, the member must log in to the Member Secured Services and first agree to the Terms of Use and User Agreement. Members can review their physicians by answering a set of standard questions on a scale from one to five. They may also leave comments. This new service can be viewed from the BCBSM website at www.bcbsm.com. Healthcare Ruling The U.S. Supreme Court upheld nearly every provision of the Patient Protection and Affordable Care Act (Act) last month. The only provision of the Act not upheld by the Court affects state decisions on whether to participate in Medicaid expansion. With this Court decision, only a new Act of Congress signed by the President could alter the Act. This will likely be a point of discussion in this year’s Congressional and Presidential elections. 2 The Act strives to ensure that all Americans will have health insurance benefits. A study by the National Center for Health Statistics in 2011 showed that 45 million American, or 15% of the population, had no health insurance coverage. The Act requires that individuals purchase insurance or pay a penalty. Implemented over the next few years, it also creates standard packages of acceptable coverage, requires large employers to offer health benefits or pay a penalty, creates state insurance exchanges to create competition for insurance, subsidizes insurance purchases for the middle-class, and expands Medicaid to cover Americans earning up to 133% more than poverty level. The Congressional Budget Office estimates that in the future approximately 26 million Americans will be uninsured and possibly liable for paying a penalty. But there are a lot of exemptions, such as: American Indians, prisoners, illegal immigrants, people opposed for religious reasons such as the Amish, workers with incomes low enough that they don’t have to file tax returns, and more. The tax penalty will be the greater of $695 per year up to a maximum of 3 times that amount per family ($2,085) or 2.5% of household income. For this year, employers need to worry about providing employees with a Summary of Benefits and Coverage (SBC) and the Form W2 health insurance cost reporting requirements. Plans must provide applicants and participants with an SBC which accurately describes the benefits and coverages available as laid out by a template provided by the federal government. The SBC must be provided with open enrollment periods that begin on or after 9/23/12. Participants and beneficiaries who enroll in coverage other than during open enrollment must be provided SBCs beginning on the first day of the first plan year that commences on or after 9/23/12 (1/1/13 for calendar year plans). Employers should be tracking each employee’s applicable employer-sponsored coverage dollar amounts during 2012 so they can calculate and report the aggregate cost of that coverage on their employees’ 2012 Form W2s that will be furnished to employees in January 2013. Generally, the aggregate cost of coverage is the premium that would be charged for that coverage under COBRA less the 2% administrative fee. Win by Losing with BCBSM The Win by Losing weight loss challenge by BCBSM is returning August 27, 2012. In the last six rounds of com- petition, group customer participants have lost more than 40,000 pounds. Registration opens on August 20, 2012. During this time period, your company’s team representative can sign up your team on the official Win by Losing website at www. bcbsm.com/yourhealth. Your representative will submit company information including a group starting weight total (no individual records are kept). Categories range from 10 or fewer participating employees to 60+ participating employees. Winners are selected in each category based on the total percentage of weight loss based on the number of participants and the number of pounds lost. Winning teams receive a trophy, Win by Losing T-shirts and, ultimately, the coveted bragging rights. Representatives and participants can access the Win by Losing website for a toolkit containing: diet and exercise tips, banners, diet plans, calorie meal planners, recipes and more. Employees can logon to BCBSM’s Member Secured Services to complete a health assessment for additional weight loss assistance including a tailored action plan and online coaching programs. The contest officially kicks off on August 27 and runs through October 26, 2012. Sign your company up to start losing today! a series of leg workouts to help slim cankle girth. Jump ropes, calf raises, running stairs and jumping squats were used to work lower limbs extra hard to eliminate cankles everywhere. It may seem like furiously running in place for a few minutes will burn that extra ankle fat right off, however it is much more complicated than that. When it comes to weight loss, you cannot choose certain areas to fix. If you are looking to lose weight in a certain part of your body, you will not be successful. Weight loss is a complete body occurrence. While you may pump your legs harder in hopes of reducing the weight around your ankles, in reality the energy used to pump your feet may be coming from other places where fat is stored such as the midsection or hips rather than your legs. Body fat is body fat no matter where it’s at. Where your body stores fat and uses fat from are primarily genetic, therefore that stubborn ankle fat may be much more difficult to get rid of than you think. So combat your cankles with any exercise that works for you, whether it is a sport like Frisbee, interval training or swimming. The best way to reduce your cankles is to reduce body fat everywhere. Just remember that your cankles are under genetic control so they may be the last to go when on your journey towards a healthier you. Question: What are the best exercises to do to reduce my cankles? by: Jason Weslosky, BCBSM at A Healthier Michigan The slang term cankle refers to a combination of the calf and ankle to describe what many women consider a nightmare. While not an accepted medical term, a cankle is essentially a thickened ankle giving the perception of the calf flowing to the foot. While undesirable to capri wearers, it may be more than a matter of slimming down those chubby ankles. In reality, cankles may be caused by several different factors. Obesity is often the primary cause of cankle formation. Excess fat deposited around the ankle may be due to obesity but it could just as well be due to genetic factors that favor fat accumulation around the ankle. Still other causes may be things such as poor kidney functioning, tendinitis or edema due to other complications. A few years ago, Gold’s Gym declared the month of July was “Cankle Awareness Month.” In celebration of this event, these gyms offered classes which combined TMTA Talk New TMTA Mailing Address TMTA offices are staying at our current physical location, but we have decided to do away with our P.O. Box. All mail currently being sent to P.O. Box 2204, as well as any future mailings, are to be sent to our street address. The new mailing address you should be using is: TMTA 28237 Orchard Lake Rd., Suite 101 Farmington Hills, MI 48334 All other contact information remains the same. (Phone: 248-488-0300 and 1-800-969-9682; fax: 248-488-0500; website: www.thetmta.com) Please make a note of our new mailing address in your system. 3 Counterfeit Parts in the DOD Supply Chain In May 2012, the Committee on Armed Services of the United States Senate finalized a report entitled “Inquiry into Counterfeit Electronic Parts in the Department of Defense Supply Chain.” In the executive summary of said report, General Patrick O’Reilly, Director, Missile Defense Agency, makes the statement “We do not want a $12 million missile defense interceptor’s reliability compromised by a $2 counterfeit part.” The executive summary ends with the conclusions of the Armed Services Committee numbering 8. Source of Counterfeit Parts Conclusion 1: China is the dominant source country for counterfeit electronic parts that are infiltrating the defense supply chain. The U.S. Trade Representative (USTR) has said that China’s global manufacturing capacity “extends to all phases of the production and global distribution of counterfeit goods.” The Committee’s investigation uncovered overwhelming evidence that that is the case with electronic parts infiltrating the defense supply chain. The Committee tracked well over 100 cases of suspect counterfeit parts back through the supply chain. China was found to be the source country for suspect counterfeit parts in an overwhelming majority of those cases, with more than 70 percent of the suspect parts traced to that country. The next two largest source countries were the United Kingdom and Canada. The Committee identified instances in which both countries served as resale points for suspect counterfeit electronic parts from China. Conclusion 2: The Chinese government has failed to take steps to stop counterfeiting operations that are carried out openly in that country. One Committee witness described visiting China and seeing public sidewalks covered with electronic components that had been harvested from e-waste. Another witness said he saw whole factories in China of 10,000 to 15,000 people set up for the purpose of counterfeiting. Counterfeit electronic parts are sold openly in public markets in China. Rather than acknowledging the problem and moving aggressively to shut down counterfeiters, the Chinese government has tried to avoid scrutiny, including denying visas to Committee staff to travel to mainland China as part of the Committee’s investigation. 4 Department of Defense Actions on Counterfeits Conclusion 3: The Department of Defense lacks knowledge of the scope and impact of counterfeit parts on critical defense systems. In a March 2010 report, the Government Accountability Office stated that “DOD is limited in its ability to determine the extent to which counterfeit parts exist in its supply chain.” The Committee’s findings support that statement. Reporting into the Government-Industry Data Exchange (GIDEP) program, which would allow DOD to track instances of counterfeit parts, is woefully lacking. During the period reviewed by the Committee, the Defense Logistics Agency (DLA), which is responsible for supplying DOD with most of its spare parts, neither consistently reported to GIDEP nor maintained a list of instances in which they had been supplied counterfeit electronic parts. And, in each of the three cases that the Committee investigated in depth, DOD was unaware that counterfeit electronic parts had been installed on certain defense systems until the Committee’s investigation. Conclusion 4: The use of counterfeit electronic parts in defense systems can compromise performance and reliability, risk national security, and endanger the safety of military personnel. The investigation uncovered dozens of examples of suspect counterfeit electronic parts in critical military systems, including on thermal weapons sights delivered to the Army, on mission computers for the Missile Defense Agency’s Terminal High Altitude Area Defense (THAAD) missile, and on a large number of military airplanes. The potential impact of suspect parts on the performance and reliability of defense systems is significant. For example, according to MDA, if suspect counterfeit devices installed on the THAAD mission computers had failed, the THAAD missile itself would likely have failed. According to the Navy, had counterfeit parts contained in electromagnetic interference filters failed on an SH-60B helicopter, the aircraft’s ability to conduct night missions and surface warfare missions involving hellfire missiles would have been compromised. Conclusion 5: Permitting contractors to recover costs incurred as a result of their own failure to detect counterfeit electronic parts does not encourage the adoption of aggressive counterfeit avoidance and detection programs. Taxpayers should not be burdened with covering the costs of a contractor’s failure to detect counterfeit electronic parts in their own supply chain. Moreover, government contracts that permit cost recovery in such circumstances contrast with agreements that some contractors enter into with their own suppliers. Raytheon’s General Terms and Conditions relating to nonconforming material states that the “[c]ost of repair, rework, replacement, inspection, transportation, repackaging, and/or reinspection by Buyer shall be at Seller’s expense.” Similarly, BAE’s General Provisions state that, in cases where a supplier delivers non-conforming work, BAE may “make, or have a third party make all repairs, modifications, or replacements necessary to enable work to comply in all respects with Contract requirements and charge the cost incurred to the SELLER.” Defense Industry Conclusion 6: The defense industry’s reliance on unvetted independent distributors to supply electronic parts for critical military applications results in unacceptable risks to national security and the safety of U.S. military personnel. The Committee identified approximately 1,800 cases of suspect counterfeit parts in the defense supply chain. Those parts were supplied by more than 650 companies, each of which relied on their own network of suppliers. DOD and defense contractors are frequently unaware of the ultimate source of electronic parts used in defense systems. The suspect counterfeit parts that were used in Electromagnetic Interference Filters (EIF) destined for the Navy’s SH-60B helicopters, for example, changed hands five times before the parts were bought by the Raytheon subcontractor who built the EIFs. Those parts originated with Huajie Electronics in Shenzhen, China, a fact that neither DOD nor Raytheon was aware of prior to the Committee’s investigation. Conclusion 7: Weaknesses in the testing regime for electronic parts create vulnerabilities that are exploited by counterfeiters. The Committee reviewed test reports associated with the approximately 1,800 cases of suspect counterfeit parts identified in the investigation. Those reports reveal wide disparities in testing used by companies in the defense supply chain. Some companies require a range of testing, for example, exposing a part to aggressive solvents to determine whether markings are authentic or delidding part samples to examine their die. Other companies, however, are willing to accept parts that have only been subject to basic functional testing. The investigation also revealed deficiencies in the process used to determine whether and how parts are tested. For example, in the case of the counterfeit memory chips sold to L-3 Communications, the supplier in China selected and sent L-3 Communications’ U.S.-based distributor a sample of 18 parts to test. Once those parts were tested and validated as authentic, the China-based supplier sold the company more than ten thousand of the chips. L-3’s process at the time allowed the company to accept those chips without additional testing from an independent laboratory. TMTA Talk Conclusion 8: The defense industry routinely failed to report cases of suspect counterfeit parts, putting the integrity of the defense supply chain at risk. The vast majority of the approximately 1,800 cases of suspect counterfeit parts identified in the investigation appear to have gone unreported to DOD or criminal authorities. For example, in the case of the suspect counterfeit part contained in the Navy’s P-8A airplane, Boeing failed to notify the Navy of the problem until the Committee began inquiring about the suspect counterfeits. Similarly, in the case of the suspect counterfeit memory chip contained in the C-27J, L-3 Communications did not notify the Air Force until the day before Committee staff was scheduled to meet with the Air Force program office responsible for that aircraft. Many cases also go unreported to the Government-Industry Data Exchange Program (GIDEP), a DOD program where government and industry participants can file reports about suspect counterfeits. While one industry witness told the Committee that sharing information on counterfeit parts through GIDEP “can help stop suppliers of counterfeit parts in their tracks,” only 271 total reports were submitted to GIDEP during all of 2009 and 2010. 2012 TMTA MSDs Mailed The 2012 TMTA Member Services Directory (MSD) was mailed to all member companies last month in CD-format. The MSD is a listing of all TMTA members sorted by the type of service they provide along with their contact information. The directory is distributed free-of-charge to each member company. It is also available, at no charge, to purchasers of special tooling, manufacturing and technological services upon written request to TMTA. If you know of any other buyers who should receive a copy of the MSD, please fax their company information to our office and we will be happy to provide them with the most recent edition. The MSD is an important tool for companies looking for a specific product or service. It is also an important benefit of membership as we distribute copies throughout the U.S.A. This means extra advertising and job prospects for your company. We are always seeking ways in which the MSD can better meet your needs. Any suggestions for improvement are welcome. If you have any questions/comments about the MSD or have not received your copy, contact Ron at TMTA at 248-488-0300, ext. 1308 or e-mail to ron@ thetmta.com. 5 (Rob’s Roost continued from Page 1) China, by manipulating its currency and shutting out western products, helped cause the Great Recession and is now constraining recovery in the United States and Europe. More free trade agreements won’t fix that. Dodd-Frank may be bureaucratic and ineffective but no sane person could claim banks can regulate themselves—smarter solutions, like breaking up unmanageable and unsuperviserable institutions, are needed. Many analysts ask if another big innovation—like the automobile or computer—is coming and could save the economy. The problems are many new products are creating more jobs in Asia than in the West, and many technology companies are consolidating or facing extinction— consider the smart phone, Hewlett Packard and Yahoo. A lot of U.S. innovation is starting to look more like French art than American commerce. Icons like Yahoo, Facebook and Twitter have made great contributions to the economy and culture but simply don’t have business models that generate enough revenue and sustainable jobs growth. Google has succeeded by cannibalizing newspapers— the net effect has been to destroy more—and branching into software and media merely displaces workers elsewhere. Meanwhile, the profitable core of finance—investment banking—is shrinking. Burdensome regulations are a problem, but many clients—ranging from municipalities to wealth managers to foreign governments burnt by Wall Street schemes and securities—are now less interested in what the likes of Goldman Sachs and JP Morgan have to sell. To save European governments, several trillion dollars in sovereign debt must be written down. Beyond lacking a plan to equitably distribute the loss, Germany and other stronger states have not come to terms with the fact that market reforms are not enough. They cannot continue to pursue export-oriented growth strategies and trade surpluses if southern Europe is to create jobs and grow without running up trillions in new debt. China holds the West and its own future hostage— export-driven growth runs to ground when customers can no longer finance their purchases and trade deficits. Borrowing and printing money in the United States and Europe on the scale necessary to keep the Middle Kingdom producing and exporting is no longer possible. China must slow down because it is too late to reori6 For more information about the TMTA, our advocacy, events and benefits, visit us at www.thetmta.com CPI-W Urban Wage Earners and Clerical Workers Month 82–84 1967 57–59 June May Apr Mar Feb Jan 2012 Dec Nov 2011 226.036 226.600 227.012 226.304 224.317 223.216 222.166 222.813 673.291 674.973 676.199 674.090 668.171 664.891 661.766 663.692 783.03* 784.99* 786.41* 783.96* 777.08* 773.26* 769.63* 771.87* CPI-U All Urban Consumers Month 82–84 1967 57–59 June May Apr Mar Feb Jan 2012 Dec Nov 2011 229.478 229.815 230.085 229.392 227.663 226.665 225.672 226.230 687.415 688.423 689.232 687.157 681.977 678.988 676.014 677.684 799.45* 800.62* 801.57* 799.15* 793.13* 789.65* 786.19* 788.14* Note: June 2012 CPI-W represents a 1.6% increase from one year ago; CPI-U a 1.7% increase. * Base Year 1957–59 is no longer released. BLS has issued the following conversion factors from the 82–84 year: CPI-W —.2886674 CPI-U —.2870447 ent its economy toward domestic consumption without wrenching dislocations. When the United States entered the recent crisis, its budget deficit was $161 billion. Now it $1.3 trillion, and the Federal Reserve is already maintaining rock bottom interest rates. Even if Congress and the President manage to extend the Bush tax cuts, any hiccup in Europe or China could easily throw the U.S. economy into a recession and the world’s biggest economy could hit the skids on its own. Capital markets simply won’t be able to absorb a $2.5 to $3 trillion federal deficit to further stimulate the U.S. economy, without sucking badly needed capital out of struggling European and developing country economies. The Fed could only print money to finance it and set off hyperinflation, but it can’t really lower interest rates much further. Having failed to adequately address what caused the Great Recession—China’s trade surplus and the imbalance in demand between the Middle Kingdom and the United States, the cowboy culture on Wall Street and the plight of underwater homeowners—not much can be done, having squandered the grace created by stimulus spending and easy money. Get ready for a bad ride. Peter Morici is an economist and professor at the Smith School of Business, University of Maryland School and a widely published columnist. Peter Morici, Professor, University of Maryland Robert H. Smith School of Business College Park, MD 20742-1815 phone 703-549-4338; cell 703-618-4338 e-mail [email protected] http://www.smith.umd.edu/lbpp/faculty/morici.aspx www.twitter.com/pmorici1 2012 TMTA Personnel Practices Survey Request The annual Personnel Practices Survey for 2012 was sent to all member companies earlier this month. Please complete and fax (248-488-0500) your survey to TMTA by August 10, 2012. If you have any suggestions or information you would like to see on next year’s survey, or if you have any questions on this year’s survey, contact Ron at 248-488-0300, ext. 1308 or e-mail to [email protected]. As always, only those companies that participate will receive the results. TMTA Talk Blue Cross Blue Shield/BCN (Health insurance program) TMTA contacts: Bill Percha 586-904-9700 (cell) Elaine Burger-Laskosky 248-488-0300, ext. 1309 Freedom One Financial Group (401(k) Retirement program) Provider contact: John Young 248-620-8100 GlobalTranz — CarrierRate.com (Freight discount program) Provider contact: Chad Hill 866-275-1407, ext. 130 John M. Packer & Associates (Unemployment cost control program) Provider contact: Nathan Wiest 800-482-2971 Practical Power LLC (Electrical savings program) Provider contact: Mark Bunting 248-726-7598 Ralph C. Wilson Agency, Inc. (Insurance management) Provider contact for Benefits coverages: Robert Farris 248-355-1414, ext. 109 Provider contact for P&C and WC coverages: Jay Poplawski, 248-355-1414, ext. 158 Reliance Standard/Ameritas (Life/Dental insurance programs) TMTA contacts: Bill Percha 586-904-9700 Stella Krupansky 248-488-0300, ext. 1310 SVS Vision (Safety & Vision programs) Provider contact: Monica Dyja 800-611-3683 or www.svsvision.com Schena Roofing & Sheet Metal Co., Inc. (Commercial/industrial roofing contractor) Provider contact: 586-949-4777 Staffworks Group (Staffing needs) Provider contact: Bill Brann 877-304-9690 TMTA receives a benefit from some of its Endorsed Providers when you, as a member, patronize them. This is one way we are able to maintain the level of dues. 7 In Memoriam It is with deep sadness and regret that we note the passing of Joseph W. Schwartz, vice president of the former Schwartz Boring Company, on May 12, 2012 at the age of 94. He was proceeded in death by his wife Elinor; daughter Linda; brothers John, Frank, Edward, and Charles; and sister Helen. After serving in the U.S. Coast Guard during WWII, Mr. Schwartz graduated from the Carnegie Institute of Technology in Pittsburgh with a degree in mechanical engineering. He moved to Grosse Pointe Shores in 1951 and, working beside his brothers, he enjoyed a long career at Schwartz Boring Company in Detroit. In Memoriam It is with deep sadness and regret that we note the passing of Helmut Boehm, owner and president of the former Action Automation, Inc., on June 10, 2012 at the age of 85. Devoted husband of 58 years to his wife, Irene, and loving father of Gary and Iris (Ernie) Rust. Mr. Boehm greatly enjoyed golfing, swimming, traveling, and spending time with family and friends. He lived life to the fullest and wished that for everyone he met. Mr. Boehm will be greatly missed by his family, friends and past employees who enjoyed his love of life, sense of humor, and cheerful smile. Mr. Schwartz was an honest, hardworking family man who taught others “to do something good for the job, family and world every day.” Memorial donations may be made in his name to St. Peter’s Lutheran Church at 11423 Chicago Rd., Warren, MI 48093. Mr. Schwartz will be greatly missed by his family, friends and past employees who enjoyed his conversations and high-spirited nature. Our heartfelt condolences go out to his family and friends. Our heartfelt condolences go out to his family and friends. TMTA TALK is a publication of the Tooling, Manufacturing & Technologies Association P.O. Box 2204 Phone (248) 488-0300 Farmington Hills, MI 48333 Fax (248) 488-0500 www.thetmta.com President and CEO — Robert J. Dumont Editor, Layout/Design — Elaine F. Burger-Laskosky TMTA TALK is distributed free to all TMTA members. Please patronize the companies on our Made In America page. Copyright © 2012 Tooling, Mfg. & Tech. Assoc. All Rights Reserved Access the list of companies by clicking on the icon (identical to the image above) located on our website home page at www.thetmta.com. Deadline for submission of news, articles, letters, cartoons and Marketplace items is the 25th of each month. Send/Fax to TMTA, Attention: TMTA Talk Editor.