Turning Point

Florida Business Observer
February 1, 2013
By: Denise Kalette
[NTMA Featured]

When a Navy pilot roars from a combat ship off the coast of Afghanistan, bound for a strafing run on an enemy firing at U.S. forces, there is a good chance that tucked away in the pilot’s equipment are essential parts from Tampa Bay that could save his life.

Those parts are built into his parachute undefined sturdy metal housings and mechanical components. If the pilot is forced to bail out over the ocean and lands, unconscious, in the water, a sensor detects the fluid and blows his parachute away so it doesn’t drag him under. In rapid sequence, his head is lifted from the water and his life jacket inflates, while a second sensor triggers a flare so rescuers can find the pilot.

The metal parts that house the sensors are manufactured at a little-known Tampa company that occupies a 20,000-square-foot building where the lights burn 24/7. At Southern Manufacturing Technologies (SMT), a private company celebrating its 30th year in business, workers churn out 20,000 highly precise components per month, for the aircraft, aerospace, and defense industries. Although the plant’s products have been used in high-profile places undefined the Mars rover, air-to-air missiles, communications and military satellites, and commercial aircraft undefined SMT President Roy Sweatman has been content to fly under the radar of public notice. But now, as his company reaches a critical turning point, the low profile is working against him.

After growing his company for three decades, Sweatman, 66, is facing the inevitable need to hand over the reins to a new chief, within five to eight years. At the same time, he anticipates receiving a major contract in 2015 to manufacture parts for a new generation of fuel-efficient aircraft engines for Boeing 737s and the Airbus A320. Sweatman and his top managers are reconfiguring space at the plant to shoehorn in the new operations. They will need to hire machinists at a time when many young people seldomly consider manufacturing or skilled trades as a career. What makes it even harder to attract talented applicants is that despite SMT’s achievements and high standing in the aerospace world, many Tampa families and even business leaders have never heard of it.

“Nobody knows we exist,” says Sweatman. “It’s partially because we don’t make the airplane, we just make some of the components.” Many Americans have the impression that most U.S. manufacturing has shifted to China, so kids see no future in it, and parents steer them toward universities, he says. “Everybody’s supposed to go to college.”

Sweatman has a lot at stake. The plant owner, who grew up on a Pennsylvania dairy farm, has taken his machine shop from five employees when he bought it in 1983, to 110 skilled workers, and from $360,000 in revenue the first year, to $13.3 million in 2012. And even without the aircraft contract, the company is still growing, and searching for workers.

With Tampa Bay’s unemployment rate dropping to 8% in December, one might conclude that plenty of willing workers could don a uniform at SMT. But along the Gulf Coast, many small and mid-size manufacturers share Sweatman’s dilemma of a shortage of workers with sufficient technical backgrounds.

“It’s not uncommon,” says Cliff Csulik, president of the Bay Area Manufacturers Association. Companies are having a hard time finding technicians, welders, and machinists who can operate the computer numerical control (CNC) machines programmed to make precision parts for the defense, aerospace or medical industries.

Small and mid-sized manufacturers of 25 to 100 employees supply essential parts to behemoths such as St. Petersburg-based circuit maker Jabil, which operates 60 plants in 25 countries; Raytheon, the aerospace and electronics giant; or Lockheed Martin, which builds military aircraft and defense systems.

But as young people increasingly choose more lucrative or prestigious careers, small manufacturers struggle to keep up with the demand for products. “It’s not the glory type of job that some of these younger generations may want, but they’re still needed,” says Csulik. “That’s what made America’s backbone, these middle-class type of jobs.”

Florida’s 18,099 manufacturers employ 317,690 people, according to the Manufacturers Association of Florida. Based on the number of facilities, the state ranks fourth in the nation in manufacturing. Plant managers are opening their doors to student tours, and hiring promising young candidates. They work with schools and training centers to strengthen STEM curricula undefined science, technology, engineering and math. But even as they reach out to educators to bolster their work force, manufacturers also are advancing in another directionundefinedtoward the brave new world of automation.

Robots: more than a game

As he pencils in plant changes in anticipation of the potential 2015 growth spurt, Sweatman knows that not only will a new generation of skilled employees help his plant carry on after he retires, so will the next generation of automated machines, including robots. Already, smart machines can select tools and mill metal parts with mathematical precision. They can move multiple pallets along the plant floor, shuttling along a metal rail.

SMT uses about 20 Computer Numerical Control (CNC) machines, and it employs a few basic robots. The Mars rover, after all, is a robot, and robotics are integrated not just in end-user military or space products, but also in the manufacturing process.

Sweatman and his daughter Shannon, SMT’s systems administrator, work with local schools and colleges to encourage robotics programs, which make math and science fun. The students compete in robot tournaments in which their machines fight competitors.

Girls enjoy bots as much as boys. “Down in the Miami area, there’s Catholic high schools with all-girl teams. In these competitions when they fight and the bots get damaged, [the girls] are back in the pits helping each other out” with pit-stop repairs, says Sweatman, laughing.

Some Tampa kids come to the plant to perfect their bots, and occasionally, get hired part-time. New workers with no training generally earn $10 an hour, while those with some training get $14 an hour and skilled workers, $20 to $25 per hour, says Sweatman. “One-third of Southern Manufacturing’s workers earn more than $50,000 per year.”

As he searches for workers who are precise yet innovative, Sweatman has raised his profile, taking lead roles in professional groups and serving on the U.S. Commerce Department’s Manufacturing Council, which advises the Secretary of Commerce on manufacturing issues. “Now I prefer not to be under the radar, so that people know there are good jobs and good opportunities and things other than going to college.”

Racing the clock

To see how far he has come as he nears the close of his stewardship, Sweatman has only to look into the glass case in his lobby, where metal parts undefined bronze, titanium, and steel undefined gleam like trophies. Each one tells a story.

It wasn’t easy to become a key player in the complex world of satellite and aircraft production. At 17, he apprenticed at General Electric in Erie, Pa. and stayed to hone his skills before becoming general manager at a machine shop. In 1982, he brought his life savings to Tampa and bought the small machine shop. The owner provided financing, and Sweatman paid it off in two years.

The shop made parts for locomotives and medical devices as well as aircraft, but soon settled into an aerospace and defense niche. Sweatman convinced customers his shop could make the parts they needed. He developed a pivotal relationship with Conax Florida Corp. in St. Petersburg, now a subsidiary of Cobham PLC. Conax explosives technology is used with the parachutes for which Sweatman’s firm provides housings.

In 1988, just five years after Sweatman bought the machine shop, it made the Inc. 500 list of fastest-growing companies. As it grew, he reinvested in SMT to improve efficiency. The latest investment, a $750,000 machining center, holds 180 tools, and boasts six pallets. To pay its cost, it runs 24 hours a day, contributing to SMT’s $17,000 monthly electric bill.

The machine’s robotic arm plucks a tool from the new array, as a pallet shuttles along an enclosed rail. Amid the plant’s whine and hum of machines, workers study calculations or plunge their hands into a cleansing water spout. Shiny valves wait on flat surfaces for the next step, as a faintly acrid odor of treated metals wafts through the plant.

In his office, Sweatman rolls off the names of missile defense systems to which SMT has contributed, including the Harpoon, Tomahawk and Javelin. As he hurries to meet the new deadline undefined the expected aircraft parts contract less than two years from now, with its influx of people, equipment, and production timetables undefined Sweatman is also planning for the longer term. He hopes his daughter, who has a master’s in management information systems, will take a leadership role at the company. And he has groomed a management team. But he remains firmly in charge.

And highly competitive. His daughter recently gave him the gift of a Mario Andretti Racing Experience, a chance to race an Indy 500-style car around a Miami track. He sped at 154 miles per hour. Of all the day’s riders, Sweatman’s was the fastest lap of the day.

MAF Weekly Report-February 2, 2013

 

New Economic Development Tool from Florida Power & Light

During the January 30-31 Enterprise Florida quarterly Board meetings Florida Power and Light rolled out a tremendous tool for economic developers.  It is a resource website called Powering Florida (www.poweringflorida.com) and is intended to provide all the information economic developers need to know about helping businesses pick a location for their next business site in Florida.  Thank you Florida Power & Light for providing this tool to our economic developers.

 

Lots of Excitement for Manufacturing Days - February 4-5, 2013

More than 60 people have registered for Manufacturing Days at the Capitol – a record for MAF. Joining us for our briefing at Manufacturing Days this year on February 4 is: Enterprise FL, Workforce FL, Associated Industries of FL, Florida Chamber of Commerce, TaxWatch, Sen. Hukill, and Representatives Ray, Magar, and Patronis.

 

On February 5 participants have appointments with more than 20 legislators and the Governor.  The group visit with the Governor will be a press event on the Governor’s manufacturing initiative.  Two local manufacturing companies will be bringing equipment in for a backdrop, participants will be invited to put their signatures on a sign for the event, we have buttons for participants to wear: “Let Manufacturers Lead,” we have a recognition spot planned for a legislative committee meeting and we will be interviewing willing participants on two questions:

• Why it is important to belong to the Manufacturers Association of Florida and what has it meant to you and your company?
• Why is it important to completely eliminate the sales tax exemption for manufacturing machinery and equipment in Florida?

We hope you will participate in the interviews. One video will be turned into a membership promotional video and the other an advocacy video for our website and for use at the Capitol. If you didn’t have time to register, just show up on Monday!

 

 

Enterprise Florida to Market Florida as a Business Destination

At the January 30 Enterprise Florida Stakeholder meeting Melissa Medley unveiled Enterprise Florida’s business marketing plan – to market Florida as a business destination in addition to a tourist destination; however, they will tie the two together.  Using sand castles of business people as a backdrop in promotional events, the campaign will replace the “I” in Florida with a business tie. The slogan is “Florida is the Perfect Climate for Business.” The campaign needs angel investors, investing anywhere from $100,000 to $1,000 to reach the goal of $3 million for the marketing plan.  If you would like to invest, let us know and we will connect you with Melissa Medley.

 

Internship Agreements

The MAF Center is collecting internship agreements from various sources to develop a model internship agreement for our manufacturers.  If you have any materials for internship programs at your company that you would be willing to share, please send them to nancy@nstephens.com. Feel free to take your name off the materials before sending.

 

Manufacturing Task Force Endorses Welcome Mat for Manufacturers

The Manufacturers Task Force of Enterprise Florida, co-chaired by MAF Executive Director Nancy Stephens, had a lively meeting on January 30 in Tallahassee.  EFI staff gave a briefing on status of the Governor’s proposal on the manufacturing sales tax elimination, Workforce Florida briefed the group on Quick Response Training Fund uses and the proposal to double that funding, Nancy Stephens presented manufacturing facts so everyone would be on the same page in their advocacy, the group talked about what each of them could do to help pass the Sales Tax Elimination and the QRT Funding this year, and lastly the group decided to implement a program called the Manufacturing Welcome Mat.

 

In the Welcome Mater program Enterprise Florida will issue a quarterly report to MAF on the manufacturing companies that have been recruited/retained/expanded in Florida via the Enterprise Florida recruitment programs.  MAF will set up meetings with those manufacturing companies and invite the regional manufacturing association, the local economic development partner, and Enterprise Florida to brief the company on resources and connections available to them in Florida. MAF sees this as another tool in our tool box to build membership for MAF and for the regional manufacturing associations, while providing a service to new manufacturers and the state. 

 

Our first Welcome Mat event will be in conjunction with the March 6-7 Southern Advanced Manufacturing Tradeshow at the Orange County Civic Center in Orlando.  MAF and MACF will host a booth there and a Welcome Reception for participants to drop by and network with Florida manufacturers.  We hope you will attend. More details to come, but registration is open for the entire show for free using the code MZ at http://registration3.experientevent.com/showubm131/default.aspx?flowcode=ATT2.

 

MAF Participates in Press Event with Governor

On January 31 MAF President Al Stimac and Executive Director Nancy Stephens attended a luncheon and participated in a press announcement with Governor Scott.  At the luncheon the group of business leaders and educators heard from Lt. Gov. Jennifer Carroll, Governor Scott’s Chief of Staff Adam Hollingsworth, the Governor’s Budget Director Jerry Daniels, and Governor Scott.  After an overview of the proposed 2012-2013 state budget proposal, Governor Scott answered questions from the audience.

 

Following the lunch, the group moved to the Cabinet Room for a press conference on the budget.  Governor Scott announced his $74.2 billion budget and his two priorities – complete elimination of the sales tax exemption on manufacturing machinery and equipment and $2,500 pay raises for teachers.  In questions and answers between the press and the Governor there was not one question about the sales tax exemption!  Thank you Governor Scott!

 

 Short Notes

·         Tom Kennedy has left the South Florida Manufacturers Association for new opportunities.  June Wolfe will be assisting SFMA during the interim.  Thank you to Tom for his service to MAF as Secretary-Treasurer since MAF formed.  Tom’s last official MAF duties will end with the February 4 Board meeting in Tallahassee. Best of luck to Tom!

·         Making It Happen: How Career Academies Can Build College and Career Exploration Program was released in January by the MDRC, a Ford Foundation non-profit organization. It looks at Florida, Georgia and California Career Academies. The link to the report: http://www.mdrc.org/making-it-happen.

·         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

 

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) 

 

February 18        DOT Florida Mobility & Trade Plan Review Webinar, 9:30-11:30 am, Save the Date!

 

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!

 

March 28             FDOT Florida Mobility & Trade Plan, Business Forum III Plan Review, 8:30-5:00, Orlando, FL. Save the Date!

 

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

 

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

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.

MAF Weekly Report-January 6, 2013

 

What Does the Reduction in Amount of Productivity You Have to Show Mean to You?

On January 1, 2013 the sales tax exemption for manufacturing machinery and equipment for expanding businesses changed again. Now instead of showing that you are at least 10% more productive in order to get the sales tax exemption, you only have to show that you are 5% more productive.  We are working on press statements with the Governor’s Office and would LOVE to have a quote or two from our members or regional manufacturing members on what this change will mean to them in 2013.  We need them “yesterday” so please send your quote by return email to nancy@nstephens.com. If you want to read the law, it is posted on our home page at www.mafmfg.com.

 

DEO Issues Annual Report

The Florida Department of Economic Opportunity (DEO) issued its 2012 annual report on December 14.  The report covers Florida’s business climate and economic development activities, the strategic plan for economic development, the agency overview, performance of Florida’s economic development public private partnerships, and the Florida Innovation Incentive Fund Program.  It ends with the 2012-2012 goals and objectives for the Department. The vision for DEO is that Florida will have the nation’s top performing economy and be recognized as the world’s best place to live, learn, play, work and do business.  The report is attached for your convenience and is full of useful facts and figures.

 

Register for Manufacturing Days

Manufacturing Days at the Capital is scheduled for February 4-5, 2013 in Tallahassee, beginning the afternoon of February 4.  It will be preceded by an MAF Board of Directors meeting on the morning of February 4. There will be briefings the afternoon of February 4 and a legislative reception that evening. On February 5 participants we break into teams to visit legislators in their offices. Event registration fee is $150/members and $200/non-members. Register for the meeting at www.mafmfg.com. 

 

We have reserved a small group of hotel rooms at the aloft Hotel for $139/night in downtown Tallahassee (four blocks from the capitol). First come first served.  Reservations at the aloft Hotel must be made by January 14, 2013 by calling 850.513.0313. The room block is under MAF or Manufacturers Association of Florida.

 

Federal Fiscal Cliff Package

The American Chemistry Council has reviewed the federal fiscal cliff tax package signed by President Obama on January 2.  Of note are a few things you have heard about and others you might not have!

• Preserves income tax rates for most Americans as they were at the end of 2012, but individuals earning more than $400,000 and households earning over $450,000 will now pay a tax rate of 39.6%
• The top tax rate for capital gains and dividends will remain at 15% for those individuals earning less than $400,000 and households earning under $450,000, but will go up to 20% for those with higher annual incomes 
• Long term unemployment benefits are extended for another year
• Sequestration is delayed for two months
• Extends through the end of 2013 the R&D tax credit and a modification of the rules for calculating the credit when the business, or a portion of it, changes hands
• Extends and modifies the Production Tax Credits for wind power, including the modification that allows renewable energy facilities (such as geothermal, hydropower, biomass and waste to energy) that begin construction before the end of 2013 to claim the 10 year credit

 

Proposed Federal Rules on Numeric Nutrient Criteria

EPA recently approved the Florida Department of Environmental Protection’s revised numeric nutrient criteria rules for statewide springs, lakes, streams and some estuaries. However, in accordance with a 2009 consent decree with the Florida Wildlife Federation andundefinedbecause the state’s rules do not cover some coastal waters, many estuaries and a subset of flowing watersundefinedEPA has proposed two federal rules that address these waters.

 

1. EPA’s Inland Remand Rule serves to clarify some provisions in the rule EPA promulgated in 2010 establishing numeric nutrient limits in Florida's streams and rivers. These provisions were sent back to EPA for further action by the U.S. District Court. The rule is posted online at: http://www.gpo.gov/fdsys/pkg/FR-2012-12-18/pdf/2012-30114.pdf, and more information can be found at: http://water.epa.gov/lawsregs/rulesregs/florida_inland.cfm

 

EPA has proposed to postpone the applicability of this rule to November 15, 2013. The stay will allow time to gain clarity on the implementation of Florida’s rules.

 

2. EPA’s Coastal Rule proposes numeric nutrient limits for those estuaries not covered by the State rule, coastal waters and flowing waters in South Florida. The rule is posted online at: http://www.gpo.gov/fdsys/pkg/FR-2012-12-18/pdf/2012-30117.pdf, and more information can be found at: http://water.epa.gov/lawsregs/rulesregs/florida_coastal.cfm

 

EPA will hold three webinars to provide opportunities for the public to learn more about its proposed rules and submit both written and oral comments. The webinars will be held on the following dates and times:

 

• Tuesday, January 22, 2013 from 10 am to Noon;
• Wednesday, January 23, 2013 from 6 to 8 pm; and
• Thursday, January 24, 2013 from 2 to 4 pm.

 

Webinar registration is available at: http://water.epa.gov/lawsregs/rulesregs/florida_index.cfm. 

 

EPA will also hold information sessions for the public to learn more about its proposed rules and submit written comments. While verbal comments will not be taken/recorded, EPA representatives will be available to help attendees submit their written comments electronically. The sessions will have an “open house” format, and will be held in Tampa at the Hotel Tampa (formerly the Hyatt Regency Tampa), at 211 North Tampa Street, on the following dates and times:

 

• Thursday, January 17, 2013 from 1 to 7 pm; and
• Friday, January 18, 2013 from 9 am to 1 pm.

 

If you are unable to participate in any of the information sessions or webinars, or prefer to submit your comments in writing, you are asked to use one of the four methods identified below:

 

1. www.regulations.gov: Follow the on-line instructions for submitting comments.
2. Email: ow-docket@epa.gov
3. Mail to: Water Docket, U.S. Environmental Protection Agency, Mail code: 2822T, 1200 Pennsylvania Avenue, NW, Washington, DC 20460.
4. Hand Delivery: EPA Docket Center, EPA West Room 3334, 1301 Constitution Avenue, NW, Washington, DC 20004. Such deliveries are only accepted during the Docket’s normal hours of operation, and special arrangements should be made for deliveries of boxed information.

 

When submitting written comments, you must be sure to identify which rule your comments pertain to:

 

• Inland Remand Rule Docket ID No. EPA-HQ-OW-2009-0596; or
• Coastal Rule Docket ID No. EPA-HQ-OW-2010-0222

 

Both rules were published in the Federal Register on December 18, 2012. Comments on the Inland Remand Rule must be received on or before February 1, 2013; while comments on the Coastal Rule must be received on or before February 19, 2013.

 

EPA must finalize the Inland Remand Rule by August 31, 2013 and the Coastal Rule by September 30, 2013. However, the Agency is prepared to either not move forward withundefinedor withdrawundefinedfederal rules for any waters that become covered by state law that meets the requirements of the Clean Water Act.

 

Short Notes

·         Hopping Green & Sams has forwarded a memo from EPA and documents regarding institutional controls for cleaning up contaminated sites. All three documents are attached.

·         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.  Guest room blocks reserved at aloft Hotel (850.513.0313) 

 

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

Dear Friend,

 

This morning I visited Johnson and Johnson Vision Care in Jacksonville to announce my commitment to Building Up Florida Manufacturing Jobs during the upcoming legislative session.  Manufacturing is a vital part of Florida’s economy, and companies just like Johnson and Johnson play a vital role in our economy. For families to succeed, Florida manufacturers must succeed.

 

In order to build up Florida manufacturing jobs, we must get rid of the barriers on manufacturing investment in our state. To do this, we will to fully eliminate the taxes on the purchase of equipment to encourage manufacturing companies to grow in Florida and strengthen our economy. By making it easier for Florida’s manufacturers to do business in our state, we can create more opportunities for our economy and our families.

 

Today, there are 17,500 manufacturing companies in Florida that employ over 300,000 Florida families. Yet, Florida’s current policy puts our state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions. In order to build up our manufacturing jobs in Florida, we will remove these barriers to investment.

 

We know that when manufacturers purchase equipment in our state, they are investing in Florida workers for years to come. We want more manufacturers to move to Florida and our existing manufacturing companies to buy the equipment they need to grow and create more jobs to support Florida families.

 

Building up Florida manufacturing is about building up Florida jobs all across our state. My proposal will also benefit our ports and the many small businesses that support manufacturers.

 

Manufacturing accounts for almost 90 percent of Florida's exports.  With Florida’s recent investments in our ports, Florida manufacturers and exporters are a powerful combination for the state’s economy.

 

Small businesses are also key in Florida’s manufacturing and exporting. They make up nearly 96 percent of the state’s exporting firms and are responsible for producing 67 percent of the state’s total exports.  My proposal will ensure Florida’s small manufacturing businesses and start-ups can succeed.

 

If you would like to continue to receive updates and information about Building Up Florida Manufacturing Jobs, please let me know by emailing me at Rick.Scott@eog.myflorida.com. 

 

Thank you for interest in keeping Florida moving in the right direction.

 

Rick Scott
Governor

Today MAF had the pleasure of assisting the Governor with a press announcement at Vistakon – Johnson and Johnson in Jacksonville, one of MAF’s Manufacturers of the Year for 2012, to announce an exciting MAF initiative for the 2013 Legislative Session, endorsed and proposed by the Govenor. Rep. Lake Ray, President, First Coast Manufacturers Association, Debbie Warren, Vice President, First Coast Manufacturers Association, Ron Avery, The Ronco Group and MAF Government Affairs Chairman,  John Otterson, International Flavors and Fragrances, Trish Bowles, Georgia-Pacific, Mike Bell, Rayonier, Edward Barlow, Swisher, Kate Barry, Medtronic and Nancy Stephens, MAF were all on hand for the announcement.

As you know, MAF has been chipping away at the sales tax on manufacturing machinery and equipment for years, making incremental progress in a difficult political environment.  Last year Governor Scott joined our crusade with another improvement which took effect on January 1, 2013.  We are delighted to announce that today Governor Scott made the final commitment on this tax – he is proposing complete elimination of the manufacturing machinery and equipment sales tax.  This is music to our ears!

And that is not the only thing he is proposing – he would like to double the state funding for Quick Response Training from $6 million/year to $12 million/year. Manufacturers are major recipients of these training funds. This was another MAF initiative on our 2013 legislative agenda.

 Now we all must press Florida legislators to make these proposals law in the 2013 Session.  We hope you will join us at Manufacturing Days at the Capital to help spread the word.  The Governor’s announcement is below.  Thank you to Vistakon – Johson and Johnson for hosting the Governor’s Press Conference.  Feel free to share this with your employees!

 

Gov. Scott: We are Building Up Florida Manufacturing Jobs

 

Dear Friend,

 

This morning I visited Johnson and Johnson Vision Care in Jacksonville to announce my commitment to Building Up Florida Manufacturing Jobsduring the upcoming legislative session.  Manufacturing is a vital part of Florida’s economy, and companies just like Johnson and Johnson play a vital role in our economy. For families to succeed, Florida manufacturers must succeed.

 

In order to build up Florida manufacturing jobs, we must get rid of the barriers on manufacturing investment in our state. To do this, we will fully eliminate the taxes on the purchase of equipment to encourage manufacturing companies to grow in Florida and strengthen our economy. By making it easier for Florida’s manufacturers to do business in our state, we can create more opportunities for our economy and our families.

 

Today, there are 17,500 manufacturing companies in Florida that employ over 300,000 Florida families. Yet, Florida’s current policy puts our state at a competitive disadvantage because most states do not force manufacturers to pay taxes on the purchase of equipment or require them to adhere to regulations for tax exemptions. In order to build up our manufacturing jobs in Florida, we will remove these barriers to investment.

 

We know that when manufacturers purchase equipment in our state, they are investing in Florida workers for years to come. We want more manufacturers to move to Florida and our existing manufacturing companies to buy the equipment they need to grow and create more jobs to support Florida families.

 

Building up Florida manufacturing is about building up Florida jobs all across our state. My proposal will also benefit our ports and the many small businesses that support manufacturers.

 

Manufacturing accounts for almost 90 percent of Florida's exports.  With Florida’s recent investments in our ports, Florida manufacturers and exporters are a powerful combination for the state’s economy.

 

Small businesses are also key in Florida’s manufacturing and exporting. They make up nearly 96 percent of the state’s exporting firms and are responsible for producing 67 percent of the state’s total exports.  My proposal will ensure Florida’s small manufacturing businesses and start-ups can succeed.

 

 

Rick Scott
Governor

Dear MAF Manufacturer of the Year Finalists and Winners:

Congratulations on your success in 2012!  Thank you for participation in the MAF Awards process and to all of you who attended the MAF Summit last week, thank you for being there.  As a reminder I wanted you to know that we offer a service to our award finalists. To help you with continuous improvement, our lead judge, Phil Centonze, POS-Impact, LLC, will visit your facility again free of charge, sometime in the next 9 months at your convenience, to talk about ways your company could improve on our areas of emphasis: leadership; strategic planning; customer and market focus; measurement, analysis and knowledge management; workforce focus; and process managmeent.   If that is something of interest to you, please email him with your request at  phil.centonze@pos-impact.com.

We have a finalist wall plaque for each of you.  We sincerely regret that the shipping delay prevented us from presenting the plaque to you at the Awards Dinner but they will ship out to you this week. Be on the lookout for them.

Looking ahead to next year for our finalists, think about entering the competition again! For our award winners, you will be asked to make a presentation on your best practices at next year’s Summit and announce the 2013 winners!  We will be in touch as soon as we have the Summit date for 2013 so you can mark your calendars.

Lastly, the names of our winners will be displayed on the MAF website, www.mafmfg.com, for the next 12 months. We we also will be sending this press release to the Governor’s Office, Florida Trend, the Capital Press Corps, your regional manufacturers association, and  Enterprise Florida, to let them know of your success this year. Feel free to send the press release to your local media.

My best wishes for a prosperous 2013!

Press Release on Finalists and Winners for 2012.pdf

Book Your Hotel Room for Manufacturing Days

Manufacturing Days at the Capital is scheduled for February 4-5, 2013 in Tallahassee, beginning the afternoon of February 4.  It will be preceded by an MAF Board of Directors meeting on the morning of February 4.

 

This is an annual event to educate legislators about Florida manufacturing and share our legislative agenda with them. The event begins at the Governor’s Club in Tallahassee, FL on February 4 after lunch with briefing sessions on all the hot topics of interest to manufacturers, followed by a legislative reception to which all the legislators will be invited.  On February 5 the group will break up into teams, each with a team leader, and will visit legislators with pre-arranged appointments until mid-afternoon.

 

We have reserved a small group of hotel rooms at the Aloft Hotel for $139/night in downtown Tallahassee (four blocks from the capitol) and at the Governor’s Inn for $159/night (across from the meeting location and the Capitol).  First come first served.  Reservations at the Governor’s Inn must be made by December 21 by calling 850.681.6855. Reservations at the aloft Hotel must be made by January 14, 2013 by calling 850.513.0313. The room block is under MAF or Manufacturers Association of Florida. You might want to do this before you leave on holiday this month!  At the same time don’t forget to register for the meeting at www.mafmfg.com. Event registration fee is $150/members and $200/non-members. 

 

We are still accepting sponsors for the event.  Join PCS Phosphate and CF Industries as our event sponsors for 2013. Please contact nancy@mafmfg.com with questions.

 

Follow Up from Manufacturers Summit

All of the presentations from the Manufacturers Summit have been posted to our website under Events in case you missed something.  The Governor will be sending a letter of congratulations to all of the 2013 Manufacturers of the Year. Thank you again for everyone who helped make it such a great event.  In 2013 we will be moving the location to provide opportunities for additional manufacturers to easily attend. 

 

MAF Center Charts a Path for Your Workforce

For the past three years MAF has been preparing to help you develop the workforce you need.  Now we are prepared and are in “action” mode.  At this year’s Summit the early session was entitled Your Workforce: How to Make It the Greatest – Use Florida Resources. It focused on developing a skilled and certified manufacturing workforce and was designed to help manufacturers obtain, train and retain the best workforce for maximum productivity by using resources available throughout the State of Florida.

 

The two-hour Session was divided into three segments - recruitment, talent development and education - with Q&A after each segment. Topics included: www.EmployFlorida.com, Made-in-Florida, Dream It Do It – Adopt-a-School, apprenticeships, training grants, and public and private education opportunities. Each speaker talked about the opportunities available to manufacturers to get involved in creating their own customized workforce. Manufacturers spoke out on how they have benefited by using these resources.

 

After all three segments, the Workforce Session ended with a call to action for the manufacturing community – how they can/must get involved in creating their future workforce. Manufacturers can serve on curriculum councils, recognize manufacturing certifications and hire accordingly, adopt-a-school, hire interns and more. MAF and the MAF Center will be there to help along the way.

 

Engaging our Manufacturers in Workforce Development

It wasn’t so long ago that employers sat on the sidelines while educators taught students what they thought employers wanted.  That is changing. Now employers are engaging with educators to prepare students for their jobs.  The MAF Center for Advanced Manufacturing Excellence (MAF Center) is in the thick of it.  With the roll out of Dream It Do It in 2012, we now have 34 manufacturers signed up to adopt a high school under the Dream It Do It program in Florida.  In 2013 we want to grow that to 100 adopters.  That is where you come in.  June Wolfe, Project Manager, is willing to work with you individually or through your regional manufacturing association to help you adopt a school.  We have produced a handy Quick Start guide to help you understand how to engage with the schools.  Each of the regional manufacturing associations associated with MAF have been asked to engage in the program.  Once you decide you would like to adopt a school, let your regional manufacturing association or June Wolfe know, june.wolfe@comcast.net.  There is a simple commitment form to sign and you are off and running.  Help us reach our goal for 2013 and help yourself at the same time!

 

But that isn’t all we will be doing in 2013.  We are also engaged with twelve community colleges in a U.S. Department of Labor Trade Grant to provide manufacturing education and industry certification training to those interested in a manufacturing career through twelve Florida colleges. The MAF and MAF Center’s role is to serve as a liaison between educators and manufacturers, help review courses and curriculum to make sure the colleges are teaching the right things, connect manufacturers to colleges, identify 1,000 manufacturing internships over the next four years with manufacturers in Florida and place students in 500 permanent manufacturing jobs. We will need your help on this too!

 

The MAF Center will be working with the regional manufacturing associations and others to meet the goals and provide trained, educated and certified students for you.  If you would like to serve on our curriculum review committee, drop an email to nancy@nstephens.com.  If you would like to adopt a college or offer an internship in 2013, please contact us.  Look for us to be in touch with all of you on your level of engagement in this commitment.

 

Report on Water Minimum Flows and Levels

Section 373.042, Florida Statutes, requires all of the water management districts to adopt rules setting forth minimum flows and levels (MFLs) below which significant harm may occur from water withdrawals.  Pursuant to this directive, the SWFWMD staff had been working for over a year on rules setting minimum flows for the Chassahowitzka River and the Homosassa River located in Hernando and Citrus Counties.  After much work, the SWFWMD staff recommended a minimum flow for the Chassahowitzka River of 91% of the river’s natural flow, meaning that consumptive uses could reduce the flow by 9% before the regulation would prohibit any further reduction.  The SWFWMD staff recommended a minimum flow for the Homossassa River of 97% of the natural flow, which would allow for a 3% reduction from consumptive uses.

 

These rule recommendations were presented to the SWFWMD’s Governing Board at the Board’s October 30, 2012, meeting.  A large crowd of citizens attended the meeting and objected to the staff’s recommendation and instead asked the Governing Board to set the minimum flow of both rivers at 99% of natural flow, allowing only a 1% reduction due to consumptive uses.  The staff explained the legal and technical problems with the public’s request.

 

After hearing a lengthy debate, the SWFWMD Governing Board voted to set the rule so that the minimum flow for the Chassahowitzka River was 97% of natural flow (rejecting the staff recommendation of 91% of natural flow) and the minimum flow for the Homosassa River was also 97% of natural flow.  While no one currently withdraws water from these rivers, several farms in this area withdraw groundwater which can affect the springflow that feeds these rivers.  As a result, the SWFWMD Governing Board directed the staff to develop the framework for establishing a Water Use Caution Area in Hernando and Citrus Counties and bring a recommendation on such Water Use Caution Area back to the June 2013 SWFWMD Governing Board meeting.  A Water Use Caution Area designation will make it more difficult to obtain consumptive use permits in this area.

 

This should be of concern to any entity operating in Hernando and Citrus Counties and potentially the surrounding counties who uses groundwater as part of its operation. (Submitted by Eric Olsen, Hopping Green & Sams)

 

Business Identity Theft in Florida is a Real Threat

Last week three employees from the Florida Department of State, Division of Corporations, visited the MAF office to talk about a serious and growing problem in Florida and nationwide – business identify theft.  As it stands today anyone can log into the Division of Corporations and change your business information – it is not password protected.  The good news is they are working on the password issue and many more steps they need to take to protect Florida businesses.  Below is information they asked us to share with our members.

 

Business Identity Theft, is essentially the same as personal identity theft except, the identity stolen is that of a company or other business entity and the damage is usually much more severe. Criminals have identified creative methods for exploiting this form of identity theft.  Most businesses are not aware of the crime or how they can protect themselves from it.   With business identity theft the average loss is $5000.  And in many instances, perpetrating business identity theft is much easier than personal identity theft.

 

Small business owners are particularly vulnerable.  Thieves are after small businesses because they do not possess strong IT departments or multiple finance staff members with the resources to manage and check corporate filings, bank accounts, or credit ratings.  A small business is vulnerable because it typically has two distinctions that make it a great target; a small and very busy staff, and readily available credit.

 

Business identity theft is perpetrated in a number of ways.  In many instances thieves simply use information gathered from the Department of State’s records.  Additionally, they fraudulently alter those same records, and then use the altered records to purchase easily fenced products.  In other cases, they use the altered information to get contracts and collect cash for work performed leaving the original entity with the tax burden.   Regardless of the method, the original business entity is left fighting for its life in the aftermath of the crime, and statistics indicate that as many as 60% will close their doors within one year.

 

Florida’s Department of State is working on a multi-pronged plan of attack with the goal of protecting the state’s business owners from identity theft.  As soon as these strategies are in place, they will be announced to the public.

 

In the meantime, there are multiple steps you should do to protect your business.  To begin with, learn about business identity theft.  The National Association of Secretaries of State has an excellent website with a great deal of information on the subject.  You can find out more at by going to www.nass.org and clicking on the business identity theft link.  Second, go to the Department of State’s business filings portal, www.sunbiz.org and check your entity, even if you have dissolved it, for errors or problems.  If you see records that are incorrect, contact the Division of Corporations.  While you are on our website, make sure the email address on file is correct and one you check regularly.  Finally, contact your business creditors, to make sure there is nothing suspicious going on with your accounts.  Most creditors have the ability for you to put a hold on your credit, preventing someone from opening a new account without your authorization, so ask your creditor(s) to turn on this feature.

 

Short Notes

·         On December 13, 2012 Deloitte Consulting LLP published a report entitled Manufacturing Skills Gap: Economic Implication and Strategies for Narrowing It. It is posted on the MAF web site under Resources.

·         Florida has chosen Tony Bennett from Indiana as the new Florida Commissioner of Education. His background in education: teacher, superintendent and coach.

·         Selected solid waste facilities will be permitted in Tallahassee beginning in 2013.  See memo from Hopping Green & Sams attached.

·         Hopping Green & Sams has prepared a memo on the results of the DEP Solid Waste Webinar of 12/11/12. It is attached.

·         For the purpose of benchmarking or determining what you would have to pay in wages if receiving economic incentives from the state, Enterprise Florida has prepared a report on average annual wages by county and by metropolitan service area.  That information has been posted to our website under Resources.

·         Florida Commerce Secretary Swoop announced 160 economic incentive business deals signed this year, a 23% increase over last year with pledge capital investment of $1.7 billion, an increase of 32% over last year.  These deals are expected to net 25,144 jobs for Florida.

·         The Florida Revenue Estimating Conference has revised the forecast for total state general revenue in FY 2013-14 and is now expecting growth of nearly $1.2 billion (or 4.7%) over the revised FY 2012-13 estimate. The 2013 Legislature is now forecast to have $28.3 billion available for the next budget. This is $3.7 billion (15%) more than the recurring general revenue appropriations in the current budget.

·         Governor Rick Scott announced this week that more than 27,000 Florida veterans have found jobs with the help of the state’s workforce system.

·         Florida has increased the number of STEM job openings this year with more than 65,825 job openings posted in November 2012. That is a 14% increase over 2011.

·         Interested in adopting a school through the MAF Center’s Dream It Do It Program? 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 4-5      Florida Manufacturing Days at the Capital, Governors Club and the Capital, Tallahassee, FL.  Guest room blocks reserved at aloft Hotel (850.513.0313) and Governor’s Inn (850.681.6855.  

 

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

SAVE THE DATE!

Manufacturing Days at the Capital is scheduled for February 4-5, 2013 in Tallahassee.  This is an annual event for MAF members.  Sponsorships are now being accepted. More details forthcoming. Please contact nancy@mafmfg.com.

 

Closing in on the Manufacturers Summit

This is the last week to register for the upcoming Manufacturers Summit and it is not too late to sign up for an exhibit or a sponsorship. There are nearly 40 speakers at the Summit this year and 25 exhibitors.  Thank you to our wonderful sponsors for making the Summit possible. Regarding the Manufacturer of the Year Awards Banquet at the Summit, we have 17 finalists this year vying for the winning position in four categories.  Thank you to everyone who participated in this awards process and to Phil Centonze, POS-Impact for managing it! You may register for the Summit at www.mafmfg.com. An updated agenda is also posted there for your convenience.

 

DEP Solid Waste Webinar

On December 4, 2012 from 2:00-4:00 p.m. DEP will hold a solid waste webinar.  The purpose is to discuss 1) the changing of District boundaries; 2) the centralization of some solid waste permitting in Tallahassee; 3) updates on plans for Chapter 62-701 rulemaking and 4) time for questions.  In order to participate you must register at:

https://www2.gotomeeting.com/register/303989418.  You can also find more information on the first two discussion items from the DEP solid waste webpage at: http://www.dep.state.fl.us/waste/categories/solid_waste/default.htm.

 

Florida Legislative Organizational Session

On November 19 Nancy Stephens, nancy d. Stephens & Associates, cosponsored a legislative reception for freshman legislators, sponsored by the Florida Association of Professional Lobbyists.  It was great to see the freshman legislators and their staff.

 

On November 20 the Florida Legislature held their organizational session for the 2012-2014 Legislature.  Some of the highlights follow:

 

·         Senator Don Gaetz was named President of the Florida Senate; Rep. Will Weatherford was named Speaker of the Florida House.

·         President Gaetz announced new ethics rules for the Senate; combined the K-12 and Higher Education Policy Committees and respective appropriations committees; announced a Select Committee on Patient Protection and Affordable Care Act (Obamacare); and announced a panel on gambling.

·         The Democratic Minority Leaders for the House and Senate were chosen, both from Broward County.  They are Rep. Thurston and Senator Smith.

·         Sen. Garrett Richter, Naples, was chosen as Senate President Pro-Tempore; Sen. Maria Sachs, Boca Raton, was elected as the Senate Democratic leader Pro-Tempore.

·         Senate Democrats also chose Sen. Braynon, Miami Gardens, as the Democratic whip, Sen. Soto, Orlando, as the Deputy Whip, and Sen. Montford, Tallahassee, as the policy chair.

·         House Democrats chose Rep. Jones, Jacksonville, as House Leader Pro-Tempore; Rep. Waldman, Coconut Creek, Minority Floor Leader; Rep. Pafford, West Palm Beach, as the policy chair; Rep. Rouson, Tampa, as policy advisor; and Rep. Williams, Tallahassee, as Minority Whip.

 

Legislative Delegation Meetings

Legislative delegation meetings are held in the local community and are a great way to get the attention of local legislators on your issues.  They are always held prior to the upcoming legislative session. You can contact your local legislator to find out who is responsible for setting the agenda and ask if you can have 3 minutes on that agenda to present your 2013 legislative issues.  If you would like to do that, MAF can help you with your remarks related to the MAF legislative agenda. This makes the next contact on the issue much easier! Contact nancy@mafmfg.com.

 

November 27

Miami-Dade County Legislative Delegation          Miami                   9:30 am

Broward Legislative Delegation                                  Ft. Lauderdale   4:00 pm

 

December 7      

Manatee Legislative Delegation                                Bradenton          8:30 am

 

December 10

Polk County Delegation                                                 Bartow                 8:30 am

 

December 11

Hardee County Delegation                                          Wauchula            10:00 am

 

December 12

Brevard County Delegation                                         Viera                     2:00 pm

 

December 13

Central Florida Delegation                                            Daytona Beach  1:30 pm

Palm Beach Delegation                                                  Jupiter                  2:00 pm

 

December 17

St. Lucie County Delegation                                         Fort Pierce          2:00 pm

 

December 18

Broward County Delegation                                        Pembroke

                                                                                                Pines                     4:00 pm

 

December 19    

Indian River County Delegation                                 Vero Beach         9:00 am

 

December 20

Seminole County Delegation                                      Sanford                9:00 am

Broward County Delegation                                        Ft. Lauderdale   4:00 pm

 

 

Workforce Florida Announces Statewide Branding Initiative

As you have noticed, each of the 24 local Workforce Boards call themselves something unique, which is a bit confusing for the public.  As a result of this and state law that calls for a single, consolidated workforce brand that is customer-focused and delivers consistency across all regions, Workforce Florida has selected IDEAS of Orlando to lead the branding initiative.  The campaign will be launched in 2013.

 

Florida MEP Releases Its Summary of Economic Impacts on Florida Economy

The Florida Manufacturing Extension Partnership (FMEP) is supported by the National Institute of Standards and Technology in the U.S. Department of Commerce and the State of Florida.  Its purpose is to help small and medium size manufacturers identify and implement advanced manufacturing and management technologies.  Through an independent survey of 1,000 FMEP client companies they have documented the impact of their programs from October 2007 through August 2012 as follows:

·        Created 2,823 jobs that otherwise would not have existed
·        Retained 5,156 jobs that otherwise would not have existed
·        Increased and retained $693.8 million in sales
·        Spent $176.6  million on new investment
·        Experienced $149.2 million in cost savings

The sum of the direct, indirect, and induced effects spurred by these small- and medium-size manufacturing companies that increased or retained jobs or sales and/or increased investments with assistance from the Florida MEP are responsible for:
·        Creating or retaining 28,359 jobs that paid a total of $1.42 billion in employee wages and benefits
·        Increasing or retaining economic output worth $6.5 billion
·        Contributing or retaining $2.46 billion of gross state product
·        Generating or retaining $547.5 million in additional tax and non-tax revenues at the Federal, state, and local government levels, including $176.5 million at the state and local level.

Great job FMEP!

 

Activity Picks Up on Restoring Springs

The Florida Department of Environmental Protection is expanding its efforts to restore Silver Springs.  In the past two years DEP has directed $11.5 million to restoring Florida springs, more than double the spending in the previous three years. DEP research and monitoring led to designating Silver Springs and the Upper Silver River as impaired for nitrates. With finalization of the Total Maximum Daily Load for the springs at .35 milligrams per liter, Florida protection will be identical to that of the EPA protection for the springs.  A total management plan to reduce nitrate inputs to meet the daily load is yet to be developed with local involvement. As a part of the solution DEP announced $1 million in wastewater projects last summer in the Marion County area. The projects include redirecting discharge from the Silver Springs Regional Wastewater Treatment Plant to the Silver Springs Shores Wastewater Treatment Plant, connecting a series of small wastewater treatment plants to the central facility eliminating more than two tons of nitrates that are going into the Silver Springs system.  Another $400,000 will be invested by DEP to take Silver River State Park off septic tanks and hook it to central sewer, reducing another 1,370 pounds of nitrates that are going into the Silver Springs system. 

 

Across the state to the Gulf Coast, DEP is committing $1.1 million to a reuse project for the City of Crystal River which will send 750,000 gallons of reclaimed water from the Crystal River wastewater treatment plant to the Progress Energy Citrus County Power Complex, reducing wastewater nutrient loading to the local springshed by 16% and increasing spring flow in Kings Bay by reducing the need for groundwater pumping at the power complex.

 

Next the DEP will establish nutrient reduction requirements for the Rainbow, Jackson Blue and Weeki Wachee spring systems.  DEP has already adopted a water quality restoration plan for the spring fed Santa Fe River and will adopt a similar plan for the Wekiva Basin.  Restoration plan initiation for Wakulla Springs and Suwannee River springs are expected yet this year.   The objective is to speed up the pace of restoration and develop plans with local stakeholders to solve long term goals.

 

Short Notes

·         Facts About Manufacturing, 2012, is now available at www.themanufacturinginstitute.org. This is a compilation of 65 charts and analysis presenting a wide array of data for the manufacturing sector and highlighting its importance to the U.S. and global economy.  It is the first comprehensive update since 2009 and is the product of the Manufacturing Institute, the Manufacturers Alliance for Productivity and Innovation and the National Association of Manufacturers.

·         Interested in adopting a school through the MAF Center’s Dream It Do It Program? 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.

 

Upcoming Events

 

December 5       MAF Executive Committee Lunch Meeting, 11:00 a.m. – 1:00 p.m., Hyatt Regency Orlando Airport Hotel, Orlando, FL

 

December 5       MAF Center for Advanced Manufacturing Excellence, 2:00 p.m. – 5:00 p.m., (Center Board of Trustees and invited guests), Hyatt Regency Orlando Airport Hotel, Orlando, FL

 

December 5       Joint Reception for MAF Board Members and MAF Center for Advanced Manufacturing Excellence Board of Trustees, 6:30 p.m. – 8:00 p.m., Hyatt Regency Orlando Airport Hotel, Orlando, FL 

 

December 6       MAF Board of Directors Breakfast Meeting, 7:30 – 9:30 a.m. (MAF Board Members and invited guests), Hyatt Regency Orlando Airport Hotel, Orlando, FL

 

December 6-7   MAF Manufacturing Summit and Marketplace and Manufacturers of the Year Awards Dinner at the Hyatt Regency Orlando Airport Hotel, Orlando, FL. Now accepting sponsors and exhibitors. Go to www.mafmfg.com for more details or contact nancy@nstephens.com.

 

December 13     MAF Environmental Teleconference, 2:00 – 3:00 p.m. E.T.  Dial in number is (712) 775.7000; PIN 317371#.

 

December 13     Volusia Manufacturers Association 32^nd Annual Awards Banquet at the Speedway Daytona 500 Club.  Register at www.VMAonline.com.

 

2013

 

February 4-5      Florida Manufacturing Days at the Capital, Governors Club and the Capital, Tallahassee, FL.  More info coming soon.

Best News of the Week – Repair Parts Sale Tax Rule Revision Suspended!

The Florida Department of Revenue informed us last week that because the Legislature will be introducing more business tax exemptions for 2013 (rather than less), work on the Manufacturing Machinery and Equipment Repair Parts Sales Tax Rule Revision has been suspended in order not to waste valuable time on a rule that would soon become obsolete!  MAF is delighted that our lobbying work on this has paid off.  If the proposed rule had been approved, many of the repair parts for your machinery and equipment would have become taxable costing you thousands of dollars.  This is a huge win for manufacturers in Florida!  MAF led the charge on this issue and we thank Enterprise Florida, the Florida Pulp and Paper Association, the Governor’s Office and the Florida Senate for their help with this issue and the Department of Revenue for their decision.

 

Closing in on the Manufacturers Summit

The deadline for making hotel reservations at the Hyatt Regency Orlando Airport Hotel in Orlando for the MAF Manufacturers Summit and Marketplace has passed.  We hope you made your room reservations! Now it is time to turn in your meeting registration form. You may register at www.mafmfg.com. An updated agenda is also posted there for your convenience.

 

Chemical Industry Focus for Upcoming Year

Nancy Stephens, MAF Executive Director, attended the American Chemistry Council (ACC) annual meeting of state chemical and manufacturing association directors and chemical company state government lobbyists in Orlando on November 14-15.  Topics of discussion were nationwide election results, environmental justice, risk perception communication, product attacks, chemical regulation, and energy development.  ACC is a member of MAF. Thank you to ACC for the invitation!

 

60 Minutes Highlights the Manufacturing Skills Gap

On November 11, 60 Minutes ran a story featuring two NAM member companies – ClickBond and Alcoa – on the manufacturing skills gap.  The piece highlighted that despite high unemployment rates, hundreds of thousands of manufacturing jobs remain unfilled because employers like Click Bond can’t find the workers to fill open positions. In addition, companies like Alcoa find it hard to train their current employees to keep up with advances in technology. The skills gap can make it difficult for manufacturers to innovate their products and grow their businesses. It is concerns such as those highlighted on 60 Minutes that drove the Manufacturing Institute to establish programs like Dream It. Do It., Right Skills Now and the Manufacturing Skills Certification System, which attract, qualify and develop world-class manufacturing talent. The story sparked calls to MAF from the press in Florida and we expect to see an upcoming story in Southwest Florida and Orlando

 

DEP Recycling Recognition Program

The Florida Department of Environmental Protection (DEP) is expanding its Recycling Recognition Program to encourage businesses, schools, public groups and citizens to increase recycling in order to reach the Florida recycling goal of 75% by 2020.  Florida’s 75 percent recycling goal was set by the state Legislature and focuses on municipal solid waste and does not include industrial solid waste. Some common types of municipal solid waste include newspapers, office paper, glass and plastic bottles and food waste. The most recent data shows the residential sector has about a 42 percent recycling rate, while the commercial sector is at roughly 44 percent and overall, Florida recycles at about a 43 percent rate. In order for Florida to meet the 75 percent goal, it is critical for both the private commercial sector and residential sector to increase recycling rates.

 

The Department is hopeful that the expanded recognition program will encourage the commercial sector to not only recycle more, but increase their reporting. DEP has an easy tool for companies to track and compare recycling efforts to that of other businesses – the Florida DEP Business Recycling Tracking Tool. This can all be done online through the website. After you complete the free registration online, you can track different types of recycling efforts and produce reports on how those efforts are helping to shrink your carbon footprint.  The tracking will help the Department determine which companies should receive recognition. DEP is seeking candidates for statewide recognition and needs help in spreading the word.  To nominate a business contact Ron Henricks at Ron_Henricks@dep.state.fl.us or 850.245.8717 or visit the webpage https://my.re-trac.com/floridadep. 

 

Malcolm Baldridge National Quality Awards

The Malcolm Baldridge National Quality Awards are the nation’s highest Presidential honor for performance excellence through innovation, improvement and visionary leadership.   This year’s manufacturing award winner is Lockheed Martin Missiles and Fire Control in Grand Prairie, Texas. Congratulations to Lockheed Martin.

 

ERC Approves Numeric Nutrient Criteria in Panhandle

The Florida Environmental Regulation Commission has approved numeric nutrient criteria for Florida’s six major Panhandle estuaries, further building on the already comprehensive nutrient standards set for Florida last year.  With this latest approval Florida has set rigorous nutrient criteria for more than 3,100 of the state’s 4,290 coastal miles of estuaries or 72% coverage. 

 

These are the numeric nutrient standards for the Panhandle estuaries, which includes Perdido Bay, Pensacola Bay (including Escambia Bay), Choctawhatchee Bay, St. Andrew Bay, St. Joseph Bay and Apalachicola Bay. The nutrient water quality standards adopted in 2011 included a schedule for the development of estuary specific numeric nutrient criteria for the Panhandle estuaries by June 30, 2013, and the Department has developed nutrient standards for total phosphorus, total nitrogen and chlorophyll a for individual estuary segments in each of the estuaries.

 

The numeric nutrient standards come nearly seven months before the Department's own deadline and 10 months before the U.S. Environmental Protection Agency's schedule for setting standards. They come five months after the Department's overall numeric nutrient standards set last year were upheld by an Administrative Law judge in their entirety and submitted to EPA for review.  EPA confirmed last year that the Department's rules are accurate and will serve to protect and improve Florida's water quality.  For more information visit http://www.dep.state.fl.us/water/wqssp/nutrients

 

Short Notes

• United Technologies Corp. announced last week that Pratt & Whitney will expand its manufacturing capabilities at its West Palm Beach facility, which will entail a $63 million capital investment and result in 230 new jobs. The expansion involves Pratt & Whitney’s most advanced commercial and military engines and builds upon the great work already being done in Florida. 
• The Florida Department of Environmental Protection has appointed Susan Grandin as Director of State Lands.   Susan formerly served as President of The Preservation Law Group, Inc., a group specializing in the preservation and protection of military installations and civilian airfields.  Prior to that she was with The Trust for Public Land.

·         Interested in adopting a school through the MAF Center’s Dream It Do It Program? 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.

 

Florida Administrative Register

The Florida Administrative Register report for November 12-16, 2012  is attached.

 

Upcoming Events

 

December 5       MAF Executive Committee Lunch Meeting, 11:00 a.m. – 1:00 p.m., Hyatt Regency Orlando Airport Hotel, Orlando, FL

 

December 5       MAF Center for Advanced Manufacturing Excellence, 2:00 p.m. – 5:00 p.m., (Center Board of Trustees and invited guests), Hyatt Regency Orlando Airport Hotel, Orlando, FL

 

December 5       Joint Reception for MAF Board Members and MAF Center for Advanced Manufacturing Excellence Board of Trustees, 6:30 p.m. – 8:00 p.m., Hyatt Regency Orlando Airport Hotel, Orlando, FL 

 

December 6       MAF Board of Directors Breakfast Meeting, 7:00 – 9:30 a.m. (MAF Board Members, MAF Center for Advanced Manufacturing Excellence Board Members and invited guests), Hyatt Regency Orlando Airport Hotel, Orlando, FL  NOTE BEGINNING TIME CHANGE!!!

 

December 6-7   MAF Manufacturing Summit and Marketplace and Manufacturers of the Year Awards Dinner at the Hyatt Regency Orlando Airport Hotel, Orlando, FL. Now accepting sponsors and exhibitors. Go to www.mafmfg.com for more details or contact nancy@nstephens.com.

 

December 13     MAF Environmental Teleconference, 2:00 – 3:00 p.m. E.T.  Dial in number is (712) 775.7000; PIN 317371#.

 

December 13     Volusia Manufacturers Association 32^nd Annual Awards Banquet at the Speedway Daytona 500 Club.  Register at www.VMAonline.com.

 

2013

 

February 4-5      Florida Manufacturing Days at the Capital, Governors Club and the Capital, Tallahassee, FL.  More info coming soon.