MAF Weekly Report-January 20, 2013

 

First New Member for 2013

MAF wishes to welcome Custom Manufacturing & Engineering, Inc. of Pinellas Park, Florida to MAF membership. Dr. Nancy Crews is the President/CEO of the company.  The company manufactures military power supplies, power distribution units, special cable harnesses, custom factory/field testers, integrated sensors, and other electronic modules for military and industry markets.  Welcome!

 

Help Us Promote Sales Tax Exemption Legislation – Contest Announced

Never before has the manufacturing industry gotten so much support from a Florida Governor as we have from Governor Rick Scott.  Now for the second year in a row he is proposing to help us on taxes.  Please help us spread the word on what passing a complete removal of sales tax on manufacturing machinery and equipment will mean to manufacturing in Florida.  Here are just a few of the benefits below. We challenge you to think of more and share them with us and your manufacturing colleagues.  It will take all of us working together to be rid of this burden once and for all.

 

If Governor Scott’s proposal passes:

• If you buy machinery and equipment in the future and you are an existing business  you would not have to go through paperwork and calculation exercises in order to get the tax back that you pay on the machinery and equipment (new and space businesses are already exempt);
• This puts Florida on a level playing field with other competitor states on manufacturing tax climate;
• If you are a new business that locates here and gets the tax break for your initial purchases, you will continue to get the tax break when you become an “existing” business;
• Manufacturing capital investment will be incentivized, which will support exporting and the expansion of the port system in Florida, in which the state is investing millions of dollars;
• Manufacturers will have more money to contribute directly to their communities and schools as they see fit, hire more employees, buy even more capital, and be less burdened by government red tape;
• It will make more money available for employers to hire employees with above average wages, thereby increasing the wealth of Florida citizens;
• Local governments should realize an increase in the amount of tangible personal property tax paid as an offset to loss of the 1% sales tax revenue.
• Site selectors recruiting business to Florida will no longer be able to cite Florida’s tax environment as an impediment to doing manufacturing business here.

 

Please send us your best reasons why removing the sales tax completely from manufacturing machinery and equipment is the right thing to do for Florida.  We will enter your statement in a contest and the best statement will win that contributor a free registration to Manufacturing Days at the Capitol ($150 value) on February 4-5, 2013 in Tallahassee, FL.  (You may enter more than one statement.) Please send your statements to nancy@nstephens.com no later than January 27, 2013 to be eligible for the contest.  If you wish your name to remain anonymous when the statement is used for advocacy after the contest, please let us know.

 

Manufacturing Days Approaching – February 4-5, 2013

It will be a busy time for participants of Manufacturing Days at the Capitol. Last week we emailed and also hand delivered 250 invitations to stated elected officials and state leaders for our Legislative Reception. We hope you will be there to welcome our guests!

 

For February 4 we have confirmed Senator Hukill, Rep. Ray, Associated Industries of Florida, and Florida Chamber of Commerce as speakers; on February 5 we have confirmed appointments with Governor Scott, Senators Abruzzo, Bean, Hays, Margolis, Simpson, Stargel, Brandes, and Clemens. Now that the legislative schedules have been released for that week we will be confirming more speakers and appointments daily. It is very important that every region of the state is represented.  Don’t miss it!

 

MAF Teams Up with UBM-Canon on Manufacturing Tradeshow

On March 6-7, 2013, UBM-Canon will hold their Southern Advanced Manufacturing Tradeshow at the Orange County Convention Center in Orlando, Florida.  Members of the Manufacturers Association of Florida, MACF members and other MAF member regional manufacturers’ association members will receive free tradeshow admission by using registration code: MZ. Mark your calendars now! Register at:

http://registration3.experientevent.com/showubm131/default.aspx?flowcode=ATT2.  For more information you may call 310.445.4200.

 

Legislative Issues Raised Last Week

Legislators were in Tallahassee the week of January 14 to become educated on state issues and begin hearing proposed legislation and budget issues. Following is news from the week:

 

Single Sales Factor - Remember the taxing mechanism called Single Sales Factor?  We are hearing that around the Capitol again, after not much buzz for the last few years.  Rep. David Santiago is a proponent and hopes to generate interest in it.  The last time we polled our members, several years ago, they were divided on their support/opposition of it.  If the issue starts getting traction, we will poll you again!

 

FDEP Overview – FDEP Deputy Secretary Jeff Littlejohn and various FDEP Division Directors were on hand to give updates to the House Agriculture & Natural Resources Subcommittee on the statewide uniform Environmental Resource Permitting (ERP) rules for Florida, the status of the state nutrient criteria program, consistency in consumptive use permitting, hazardous substance emergency response, air regulation, environmental assessment and restoration related to water quality, and water policy.

 

The House Economic Development & Tourism Committee heard from Space Florida, Enterprise Florida and Workforce Florida on their economic development and workforce progress, legislative priorities, and results of the Competitiveness Report.

 

Space Florida legislative priorities include setting minimum annual spaceport funding levels and removing the per company cap on incentive funds from QTI and QDSC state incentive funds and funding.  Since their report, MAF has been able to persuade them to add the manufacturing machinery and equipment sales tax exemption to their agenda. Space Florida currently has 80 projects in the pipeline that they are recruiting for Florida.  

 

Workforce Florida presented the facts on Quick Response Training (QRT) funds. Between 2000-2012, QRT has been used to help Florida companies train more than 99,000 new and existing employees.  QRT trainees’ wages increased more than 47% within a year of completing training.  QRT has been cited #1 with the largest impact on Florida economic developers’ ability to win multi-state competitive projects by the 2012 Florida Target Industry Competitiveness Report. 

 

Enterprise Florida presented its legislative agenda and results from the Economic Development Competitiveness Study.  Manufacturing is considered a key industry in Alabama, Georgia, Michigan, North Carolina and Texas.  Key issues for Florida to compete in manufacturing are incentives (capital vs expense) and workforce training. As you know Enterprise Florida is also recommending elimination of the sales tax on manufacturing machinery and equipment and recognized MAF’s work on this issue at the Committee meeting.

 

The Next Chapter of NNC

The Numeric Nutrient Criteria rulemaking has now moved into Phase II as Florida deals with EPA’s decision to propose additional federal criteria for Florida’s coastal waters, some estuaries, and South Florida flowing waters and the decision to engage in filling the gaps in Florida’s freshwater criteria rules.  MAF has joined other regulated interests in sending a letter to EPA stating that we believe a further review of DEP’s new nutrient rules will demonstrate that there is no environmental policy objective served by overlaying additional federal criteria.  

 

Coalition Growing to Support Governor’s Manufacturing Agenda

This week we got confirmation that the printers,  medical device manufacturers, the Florida Chamber of Commerce and Space Florida will join our loose coalition to help the Governor pass his sales tax exemption on manufacturing machinery and equipment.  They join MAF and Enterprise Florida in the effort.   MAF is taking the lead role on organizing the support from other groups.  We would like the same commitment from each of the regional manufacturing associations and economic development organizations!

 

Shippers Reach Agreement

The American Chemistry Council informs us that, working with the Chlorine Institute and railroad associations, they have finalized an agreement on an extension of the Toxic Inhalation Hazard (TIH) tank car agreement. Without the extension, the shippers would have been required to begin the process of switching their existing fleets to the interim TIH tank cars that are already required for new construction by the Department of Transportation. TIH materials, such as chlorine, ethylene oxide, and hydrogen fluoride are essential for dozens of industries including health care, agriculture, water treatment and telecommunications.  The agreement helps ensure the timely, safe and reliable shipping of these products.

 

FDEP Chapter 62-780 Rulemaking

The Florida Department of Environmental Protection (FDEP) is in the process of responding to comments on their Chapter 62-780 rulemaking from the Florida Joint Administrative Procedure Committee (JAPC).  (Comments are attached.) These latest JAPC comments seem to acknowledge statutory authority for the concept of de minimis discharge cleanup in petroleum and non-petroleum incidences, but are now focused on notice/reporting requirements upon initiation of cleanup.  FDEP has identified potential responses:

• Exclusion from reporting requirements for de minimis discharge cleanups are authorized.
• FDEP could develop a simple reporting form after initiation of de minimis discharge cleanups.
• DEP could inform JAPC that the agency is unwilling to make any changes to the de minimis discharge cleanup provisions.
• FDEP could ask JAPC to withdraw its informal objections to the rule, let FDEP complete this rulemaking, and then FDEP would begin rulemaking on the de minimis issue only. 

The rulemaking cannot be finalized until there is resolution to JAPC concerns.

 

Short Notes

·         JAXPORT Funding – Last week the Governor announced a commitment of $38 million in state and local funding to complete Phase II of the TRACPAC Container Terminal Project at JAXPORT. This will allow navigation problems for container ships to be fixed now without waiting for federal funding and support 3,500 port related jobs. Thank you Governor Scott!

·         New Department of Education contact – Ted Norman has replaced Eric Owens at the Florida Department of Education as the State Supervisor, Manufacturing/Transportation, Distribution and Logistics, Division of Career and Adult Education. His phone is 850.245.9015 and email is Richard.norman@fldoe.org. MAF will be meeting with him later this month.

·         Unemployment Rate - The Florida unemployment rate is now 8%, the lowest since November 2008.  The number of available online job openings in STEM related fields in Florida has sharply increased since last year, up 16.5% for a total of 61,271 postings in December 2012.

·         Florida Growth Fund - As of September 30, 2012, the Florida Growth Fund had committed to invest $255 million in 19 technology and growth companies and 15 private equity funds. As of June 30, 2012, the fund had a net internal rate of return of 21.03% since its inception. Companies that received Florida Growth Fund investments reported creating 4,164 jobs as of September 30, 2012. This included 2,110 jobs created by technology and growth companies and 2,054 jobs created by companies in which private equity funds were invested. The companies also reported paying an average annual salary of approximately $58,000. Salaries ranged from $23,500 to $110,000 per year

·         NAM Status – MAF is considered a Regional Ally for the National Association of Manufacturers, for those of you who were wondering!

·         A memo is attached from Hopping Green & Sams on Chapter 62-40 Water Resource Implementation Rule which is guidance to water management districts on Consumptive Use Permitting Consistency (CUPCON). 

·         Interested in adopting a school through the MAF Center’s Dream It Do It Program? Want a Quick Start guide? Contact your regional manufacturing association or June Wolfe at june.wolfe@comcast.net. For more information about Dream It Do It, visit www.mafcenter.org.  

• Know someone who should be a member of MAF? Contact nancy@mafmfg.com to provide the contact information.
• The Florida Administrative Register report for the week is attached.

 

Upcoming Events - 2013

 

January 30-31    Enterprise Florida Board, Committee, Manufacturing Task Force  and Stakeholder meetings, DoubleTree Hotel, 101 South Adams Street, Tallahassee, FL 

 

February 4          11:00 a.m. – 1:00 p.m. MAF Board of Directors Meeting, Governors Club, 202 ½ South Adams Street, Tallahassee, Florida

 

February 4-5      Florida Manufacturing Days at the Capitol, Governors Club, 202 ½ South Adams Street, Tallahassee, FL and the Capitol, Tallahassee, FL.  Book a room at the aloft Hotel (850.513.0313) 

 

March 6-7            Southern Advanced Manufacturing Tradeshow, Orange County Civic Center, cosponsored by MAF and MACF.  For more info call 310.445.4200. MAF member regional manufacturers’ association members will receive free tradeshow admission by using registration code: MZ. Mark your calendars now! Register at:

http://registration3.experientevent.com/showubm131/default.aspx?flowcode=ATT2. 

 

May 29                 MAF Board of Directors Meeting, JW Marriott Orlando Grande Lakes, Orlando, FL. Time TBA. Mark your calendars!

 

May 30                 Mark your calendar for a manufacturing education forum, particularly relevant for manufacturing human relations professionals and educators, to be held in conjunction with the Florida Sterling Conference in Orlando

 

May 28-31           Florida Sterling Council Annual Conference, JW Marriott Orlando Grande Lakes, register at www.floridasterling.com.