Patient Centered Health Care: Modernizing Health Care Through Technology

Controlling healthcare costs is a serious concern for manufacturers and consistently ranks as one of the top cost drivers for companies. Healthcare information technology (HIT) provides an opportunity to streamline processes, put more power in the hands of consumers and lower costs.  This week, at the Consumer Electronics Show, the intersection between healthcare delivery, consumers and IT is highlighted.  Mobile applications that allow consumers to manage their health and healthcare resources 24 hours a day, such as mobile applications and telehealth capabilities, allow for management of chronic illnesses. These technologies bridge critical gaps in access for some and provide additional flexibility for others. Employers and employees can manage healthcare costs by reducing complications associated with chronic disease, such as diabetes.

In addition, HIT and other technologies can facilitate more informed decisions, greater use of preventative services, assist care coordination, reduce fraud and abuse, improve delivery of services, and generate better overall health outcomes. For example, in-home assessments performed on a tablet, can improve the quality of care by improving care management services and reducing hospital readmissions while also identifying potential issues for patients to discuss with their primary care doctor. These are important issues to health care industry and NAM member United Health Group is one of the companies striving to make the system better.

Dr. Reed Tuckson, Executive Vice President and Chief of Medical Affairs for the United Health Group, said today that the health care technologies they are offering allow patients to utilize information to achieve the goals of their health care plans. Specifically he says that, “Health care cost calculators like those offered by United Health Care Group technologies allows consumers to know the exact price of all their clinical engagement – how much it costs for a procedure, hospital, by clinician, and more importantly, know the quality of the care delivery system. That information made available online allows people to truly participate in and make better medical care choices. We need the NAM to continue to be a leadership force for change that will improve health care for employers and consumers.”

The NAM is committed to continuing that leadership in order to ensure that the 97 percent of manufacturers that provide health benefits remain on the cutting edge. Technological innovation is driving modern manufacturing and can also drive modern healthcare, which provides for better outcomes and reduced costs. The future of healthcare is here and many manufacturers are leading the way by adopting these technologies.

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Hey NLRB, What’s the Problem?

Last year, the NLRB was late, very late to issue their annual report on their activities for 2011. The General Counsel released the 2012 report yesterday and there are no surprises – except that the Board Members and the Chair, Mark Pearce, still seem dead set on fixing a problem that the numbers continue to show doesn’t exist.

In 2012, 93.9 percent of union elections were conducted in 56 days or less from the time the representation petition was filed. This rate is above the Board’s goal of 90 percent and the 12th straight year the NLRB has exceeded its stated goal. Keep in mind, the ambush election rule that would speed up representation elections never went into effect last year due to litigation the NAM supported. The regulation was invalidated by the District Court last year and is before the DC Circuit of Appeals right now.

We’ve been asking the same questions and have yet to receive credible answers from this Board. What problem is the ambush election rule meant to fix? Who benefits from the rule change? Why should employees not have all the information they need to make an important decision like whether or not they want to join a union? To what, or whose, benefit is it to short-circuit employer’s rights?

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Manufacturers Take the Lead In STEM Education

The U.S. the leading producer of cutting-edge products such as those on display at the Consumer Electronics Show.  Whether it’s in IT, biotech, aerospace, medical devices or heavy machinery, US companies will be the ones to constantly and consistently create new and better things. This future promises to be bright, but only if we have the workforce capable of pushing that leading-edge. And right now, that doesn’t look like a very good bet.  The lack of a skilled workforce is a constant threat to manufacturing growth. In fact in a recent survey 82% of manufacturers reported a moderate-to-serious shortage in skilled production labor.  Worker shortages abound not only among machinists and welders but also in occupations requiring expertise in the fields of science, technology, engineering and math (STEM), where the unemployment rate today lies well below 4%.

The US needs to refocus our workforce training resources and reform our immigration system to continue to grow and innovate. Immigration reform is a serious issue for Manufacturers not only in the High-tech arena but across manufacturing sectors. Without a skilled workforce – from the PhDs to production labor, the nation’s economy will suffer and jobs will be moved overseas. Access to the right individual with the right skills at the right time will ensure that the US remains a global innovation leader.

The Bosch Group and Global Foundries are two companies taking this critical issue head on. The Bosch Community Fund launched last year to improve STEM education and will award up to $3 million in grants annually, providing additional support for the company’s charitable and community efforts in the U.S., with a focus on science, technology and environmental initiatives.

Global Foundries has committed to growing their talent through partnerships with community colleges and universities. At their Fab 8 facility in Malta, New York their workforce development efforts have begun to bear fruit with hundreds of hires made through ongoing collaboration with local partners including Hudson Valley County Community College, Schenectady County Community College, RPI, College of Nanoscale and Engineering at U Albany and Saratoga Board of Supervisors.

The Consumer Electronics Show puts on the display the best of American innovation and a skilled workforce invents, plans, produces and markets that innovation. We should focus American resources towards ensuring the CES of tomorrow will be even stronger than this year.

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Corning @ CES: A Show Made of Glass

Today at the 2013 Consumer Electronics Show (CES) it is hard not to go anywhere without seeing the impact of manufacturing innovation. We were amazed to learn more about NAM member Corning and how their products have revolutionized the tech industry.

Corning Incorporated is the world leader in specialty glass and ceramics. Drawing on more than 160 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. This innovation going back to the 1800’s was on full display here in Las Vegas.

For example, if you are reading this blog post on your mobile device, the odds are you are viewing it through Corning® Gorilla® Glass. Gorilla Glass is the standard for protective cover glass performance and can be found on more than 33 brands, 900 models, and 1 billion of the world’s coolest smartphones, tablets and PCs.

As cool as Gorilla Glass is what’s even cooler for the U.S. manufacturing economy is that it is designed and produced in Harrodsburg, Kentucky and other Corning facilities, from which it is then exported all around the world. It is a true U.S. manufacturing success story – driven by Corning’s strategic innovation – that capitalized on the technology boom around the world. Even in the economic downturn, Corning’s plant in Kentucky and its 400 workers were busy supplying their global customers.

Another part of the Gorilla Glass story is that Corning made another strategic decision to keep their research, development and the resulting intellectual property (IP) here in the United States. IP is what separates Corning from its competitors around the world and they need to ensure they operate in a system which protects it.

This year on Capitol Hill the issue of intellectual property and how to strengthen the system that protects it is likely to be a hot topic. The NAM will continue to be the voice of manufacturers so that products like Gorilla Glass continue to be developed in the U.S. – and create jobs here.

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Small Businesses Only Slightly More Confident in December

The National Federation of Independent Business (NFIB) reported that its Small Business Optimism Index edged slightly higher from 87.5 in November to 88.0 in December. This more-or-less solidifies the sharp drop in November, which fell from 93.1 in October, and it reflects the degree to which small business owners remain pessimistic. Historically, index values over 100 signify a growing sector, and the current levels indicate a significant degree of weakness and anxiety. Indeed, these lower sentiment values were more than likely influenced by the post-election political environment and the debate over the fiscal cliff.

Small businesses are likely to bear the brunt of the higher marginal tax rates that were part of the fiscal cliff deal. It it should not be a surprise that taxes were listed as the top problem, cited by 23 percent of respondents. Other challenges were government regulations (21 percent) and poor sales (19 percent). With these in mind, the net percentage of small business owners with a positive outlook six months from now remained unchanged at -35, with economic uncertainties and political frustrations listed as the primary reasons.

Beyond these concerns, entrepreneurs are worried about weaker sales and earnings. While there were some improvements in the overall numbers, it is hard to put a positive spin on the sales and earnings numbers, with business owners anticipating reduced levels of both over the coming months. As a result, hiring and capital spending plans remain soft.

Overall, these numbers suggest continued weaknesses in the small business sector over the course of the next few months. While the fiscal cliff deal did avert the worst-case scenarios for the economy, it also raised marginal tax rates for many small firms and failed to address our long-term fiscal challenges. Smaller firms have tended to express more frustrations with the political process than others, and the NFIB Optimism Index is its second lowest reading in the last three years. Until business owners are able to express more confidence, I would expect them to continue to be more reticent about picking up their employment and investment spending.

Chad Moutray is the chief economist, National Association of Manufacturers.

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Manufacturers: A Solid Bet at the 2013 Consumer Electronics Show

The Consumer Electronics Show (CES) kicks off tomorrow in Las Vegas and manufacturers are all over the world’s largest consumer technology tradeshow. The NAM is here at the convention center with a front row seat and talking with our member companies and the policy makers in town for the event. We are excited to see the latest innovations from manufacturers that will be on display this week and we plan to tell you all about it in real-time through this blog series and the NAM twitter feed, @shopfloorNAM.

Manufacturers are leading technology innovators. The NAM hears from our members around the country almost every day about the high-tech solutions they deliver. They know they need to innovate in their products, processes, and delivery if they are to compete globally.

At CES, which is owned and produced by NAM member the Consumer Electronics Association (CEA), consumers and customers alike will see manufacturers’ innovation leadership up close and personal. They will see it in the stand alone products from semi-conductors to home appliances. They will feel it when they sit in the driver’s seat of the newest vehicle or download the latest app to reduce their home or office energy costs.

Eric Reed, Verizon’s Vice President of Entertainment & Tech Policy and chair of the NAM Technology Subcommittee, had this to say about the 2013 CES. “The International CES show is important to the manufacturing community because it demonstrates how manufacturers are a critical component of the innovation ecosystem. Be it a Smart TV, advanced telematics for automobiles, mobile devices or the next generation set-top box, NAM members are at the cutting edge of technological innovation. CES 2013 is shaping up to be the most exciting ever, and NAM members are big contributors.”

This technology leadership is also driving our policy agenda in Washington. The NAM is working to make sure the intellectual property of manufacturers is protected; that broadband technologies are widely available and accessible to power the new devices and machines on the shop floor; that the workers with the right skills for high-tech manufacturing environments are available; and developing the latest security and privacy tools to secure the data in our facilities and that of our customers.

The NAM is going to highlight from the CES floor all week how manufacturers are leveraging technology. Stay tuned to Shopfloor.org to learn more about why manufacturers are a solid bet if you want to ensure we create jobs and grow the U.S. economy.

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Dispatch from the Front: The Week of January 7

President Obama is expected to make several personnel announcements today, likely nominating former Sen. Chuck Hagel to serve as secretary of defense and Counterterrorism Adviser John Brennan to serve as CIA director.

After welcoming new members to the Capitol last week, the Senate and House are taking this week off. The House returns next week, and the Senate returns the week after.

Executive Branch: Secretary of State Hillary Clinton returns to work today, Vice President Biden is in the Virgin Islands until tomorrow, and Treasury Secretary Geithner meets with his Israeli counterpart, Finance Minister Yuval Steinitz.

Economic Reports: From The New York Times: “Data to be released this week include consumer credit for November (Tuesday); weekly jobless claims and wholesale trade inventories for November (Thursday); and the trade deficit for November and import prices for December (Friday).” The Washington Post has additional information here.

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Monday Economic Report – January 7, 2013

Here is the summary for this week’s Monday Economic Report:

With a last-minute deal to avert the fiscal cliff, manufacturers have fewer uncertainties to worry about at the start of the new year. The threat of an economic downturn appears to have largely dissipated, with modest growth in real GDP of 2 percent or so expected this year. However, while the agreement ensures that tax rates for most individuals will remain the same, marginal tax rates will rise for some manufacturing companies that are organized as pass-through entities.

The agreement delays budget sequestration for two months, but that only extends the uncertainty over how this matter will be resolved. In addition, policymakers did not even begin to address the long-term fiscal challenges that confront us by ensuring meaningful tax and entitlement reforms. However, because of the structure of the agreement, they will have additional opportunities to do so over the next few months when they must address the debt ceiling limit, sequestration and the soon-to-expire continuing resolution that funds the government.

The data released last week tended to reflect an economy that was strengthening, even as it continues to show signs of persistent weaknesses. On the employment front, manufacturers added 25,000 net new workers. This is a healthy figure to end the year on, with 180,000 additional jobs in 2012 and 522,000 since the end of 2009. Still, the pace during the second half of the year was much slower than the first half, and it would be encouraging to see the sector producing outsized output and employment growth again. Sentiment surveys have tended to show some manufacturers pulling back on hiring. This might change if business leaders see an economy on more solid footing.

There are some signs that the U.S. and global economic environments have stabilized. As noted in the Global Manufacturing Economic Outlook released on Friday, January 4, seven of our top 10 markets for manufactured goods are growing—an improvement from just three months ago when much of the world outside of North America was experiencing declines. Looking specifically at the U.S. market, the Institute for Supply Management’s (ISM) Purchasing Managers’ Index (PMI) shifted from contraction to a slight expansion last month, with export orders and hiring helping to lift the measure. While there is still much progress to be made on this front, the positive PMI number is good news. Similarly, the Dallas Federal Reserve Bank reported higher activity levels and increased manufacturing business confidence in its region.

This week, the key highlight will come on Friday with the release of new international trade data for November. The October data reflected reduced exports and imports as a result of slowing global growth. With improvements in some countries, we will see if manufactured goods exports begin to pick up. Other numbers to watch include data on consumer credit, job postings and small business optimism.

Chad Moutray is the chief economist, National Association of Manufacturers.

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Stronger Manufacturing Gains in December, Challenges Remain

According to the Bureau of Labor Statistics the manufacturing sector added 25,000 net new workers in December, its strongest monthly gain since March. This stands in contrast to the ADP figures released yesterday, which have found six straight months of declining manufacturing employment. The official government data reflect a more-positive uptick for the sector.

Over the course of 2012, manufacturers hired an additional 180,000 workers on net, or 10 percent of all nonfarm payroll jobs created this year, the majority of which were created in the first half of 2012. This was slower growth than we had hoped to see, clearly the fiscal cliff and other uncertainties had an impact in the second half of the year. 

Looking more specifically at the December manufacturing employment numbers, durable and nondurable goods sectors added 11,000 and 14,000 workers, respectively. Most of these gains can be largely contributed to rebuilding after Sandy as construction jobs also saw an increase of 30,000.

The largest gains were seen in the motor vehicle and parts (up 4,800), food manufacturing (up 4,500), chemicals (up 4,300), nonmetallic mineral products (up 3,500), plastics and rubber products (up 2,100), and machinery (up 2,000) businesses.

Even with this uptick in December several areas of weakness were found in manufacturing. We saw losses in electrical equipment and appliances (down 2,100), fabricated metal products (down 700), paper and paper products (down 500), apparel (down 400), and furniture and related products (down 400). (continue reading…)

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Global Manufacturing Economic Update – January 4, 2013

Here is the summary for this month’s Global Manufacturing Economic Update:

While much of the focus of late has been on the fiscal cliff, manufacturers have also been worried about slowing global sales. Business leaders have said that increasing their exports has been a struggle. Yet, despite these headwinds, year-to-date growth in U.S.-manufactured goods has risen almost 5 percent. The good news is that this figure represents positive growth, but it also shows significant easing from the same time period last year. Much of the deceleration in exports corresponded with challenging economic environments in a number of countries, going beyond Europe’s struggles to include Brazil, China, Japan and elsewhere.

The latest data indicate that the global economy appears to be strengthening, which should bode well for improving international trade this year. Europe and Japan are exceptions as both continue to experience significant weaknesses in their respective markets. The purchasing managers’ indices (PMIs) for both remain negative, with new orders, production and employment contracting. Political and economic uncertainties permeate these data, with manufacturers uncertain about what  the future holds. Elsewhere, the trends are more positive. Seven of the top 10 markets for U.S.-manufactured goods have economies that are growing—a definite improvement from three months ago when just four of them did. As a result, we are seeing pickups in manufacturing activity and business confidence. This does not mean that these economies are growing strongly, but it does suggest that global trends have stabilized and are moving in the right direction.

Ironically, the political battles over U.S. fiscal policy had implications beyond our borders, with concerns about a possible economic downturn a top concern among our trading partners. This was especially the case for Canada, our largest trading partner, but other nations fretted about our fiscal situation, as well. With a deal to avert the fiscal cliff, at least some of these anxieties will go away for now. However, there are still larger concerns about the long-term fiscal health of the United States, and possible battles over raising the debt ceiling will keep these issues front and center. Nonetheless, the United States is now poised for modest growth in 2013, with rising exports a major contributor both to our macroeconomic picture and to manufacturers’ business plans.

Next week, we will receive data on November’s U.S. trade balance. The previous month saw a widening of the trade deficit, with both exports and imports lower. Hopefully, a slowly improving global economy will help to turn that around. Globally, we will get the latest industrial production and retail sales data from a number of European countries, with the European Central Bank meeting to discuss its monetary policy plans for the first time in 2013. Trade data will also be released for China, as well as indices for consumer and producer prices. The larger number to watch from the Chinese perspective will be real GDP growth, which will be out on Wednesday, January 16, and is expected to show an increase of 7.7 percent.

Chad Moutray is the chief economist, National Association of Manufacturers.

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