News and Analysis
Romney Squeaks By
March 09, 2012Mitt Romney won the Ohio Republican primary this week, barely. Romney picked up 37.95% of the vote. Rick Santorum came in with 37.07%. Romney gained 456,205 votes; Santorum was supported by 445,697 Ohioans.
Romney’s strength came generally in urban areas. Santorum’s support was deepest in non-metropolitan counties. Romney won a plurality in ten congressional districts. Santorum picked up the other six districts.
Newt Gingrich was an also-ran in all areas of the state. So was Ron Paul.
You can map the results by county here.
Kucinich and Schmidt Booted
March 09, 2012In closely watched congressional primaries, two incumbents were defeated this week.
In the Democratic primary for the new Ninth District, incumbent Marci Kaptur clobbered incumbent Dennis Kucinich (they were put into the same district in the redistricting process). Kaptur gained 56.44% of the vote to Kucinich’s 39.74%. She overwhelmed Kucinich in her native Toledo area. Kucinich won only his native Cuyahoga county.
In the Republican race for southwestern Ohio’s Second District incumbent, and perennially challenged, Jean Schmidt was upset by newcomer Brad Wenstrup. Wenstrup picked up 48.79%; Schmidt gained 42.76%.
In a third closely watched race, the Democratic contest for the new Third District in the Columbus area, Joyce Beatty emerged victorious with 38.01% of the vote. She defeated former congresswoman Mary Jo Kilroy and two other candidates.
Right-to-Work: How do Ohioans See It?
March 09, 2012Find out by participating in the OMA Government Affairs Committee next week. The campaign manager for Ohio’s right-to-work ballot initiative will present an election analysis of the proposal. Pollster Hans Kaiser of Moore Information will share polling on the measure and related trends.
The OMA Government Affairs Committee meets on March 14 at 10:00 a.m. Click to view meeting information. Register (login and select Events) to attend (or RSVP to Judy Thompson).
OMA Members Will Face Off in Ohio House Race
March 09, 2012Mark Romanchuk of OMA member company PR Machine Works, Inc., picked up 68% of the vote in the Republican primary for Ohio House District 2. The district encompasses all of Richland County. Congratulations, Mark!
In the November General Election, Mark will square off against incumbent Representative Jay Goyal of OMA member company Goyal Industries, Inc.
Ohio Wins Site Selection’s 2011 Governor’s Cup
March 09, 2012Site Selection magazine awards the Governor's Cup to the top ranking state according to its success in attracting capital investment projects that meet one or more of these three criteria: a minimum investment of $1 million, creation of 50 or more new jobs, and new facility construction or floor space of at least 20,000 sq. ft.
Ohio has reclaimed the Governor's Cup from Texas, which won it in 2010. Ohio reported 498 qualified projects for 2011, a 30+ percent increase from its 376 projects logged in 2010. Texas finished second with 464 projects, followed by Pennsylvania (453), North Carolina (310) and Virginia (273).
According to Site Selection: “All five top states, and many others, recorded substantial increases in new plant activity for 2011, reflecting keen interest on the part of capital investors to get busy with expansion plans in general and, in many cases, to move operations back to the U.S. in light of decreasing labor cost benefits associated with offshore strategies and heightened logistics costs related to non-U.S. operations.”
Calling All Ohio Food Manufacturers
March 02, 2012The OMA is organizing a round table dialogue with state officials interested in promoting economic development among food and food supply manufacturers.
Top Kasich administration officials want to connect with OMA member companies that manufacture food products in order to generate investment and economic development ideas.
The round table will be held in Columbus on Tuesday, March 13. Spots are still available. Please contact the OMA’s John Laughman for details.
Primary Election Day is March 6
March 02, 2012Ohio's Secretary of State site has the official list of statewide candidates, and visit the OMA Voting Toolkit for additional information.
Two University Polls Show Ohio Momentum for Santorum
March 02, 2012The Ohio Poll of likely voters conducted by the University of Cincinnati shows presidential candidate Rick Santorum leading opponent Mitt Romney by 11 percentage points; however, nearly half (47 percent) of primary voters say they may change their minds between now and the primary election day.
A poll released by Quinnipiac University shows Romney trailing Santorum by 7 percentage points. The Quinnipiac poll shows 45 percent of voters might still change their mind.
Pollsters from both organizations have presented to the OMA Government Affairs Committee in the recent past. OMA members are invited to attend the March 14 OMA Government Affairs Committee to hear primary election result analysis..
An Economist's Viewpoint of the 2012 Election
March 02, 2012Since 2000, Moody's Analytics has been modeling the outcome of presidential elections based on forecasts for economic growth. Moody’s has produced its model for the 2012 presidential election. The Moody’s model projects the re-election of President Barack Obama.
Moody’s points to Ohio, Florida and Virginia as the three key states for the president: “Given a normal degree of uncertainty, the probabilities in these three states are almost equally balanced … the model suggests that an Obama win in any of these three key swing states will likely nail down a second term for him.”
For Republicans, “... the model predicts an uphill battle this year. Even if the GOP nominee wins two out of three in Florida, Ohio and Virginia, he will still need to capture at least three smaller states now projected to go Democratic to win the presidency.”
Here is a sweeping caveat: “While the Moody’s Analytics election model has a good track record, it is not a guarantee, and it does not incorporate the impact of global geopolitical events such as wars or natural disasters, or of the personal leadership qualities of presidential candidates or their running mates.”
Compare the practices of your board with this benchmark
March 01, 2012How do your board practices compare with other private and public companies? This is the first of nine posts that look at board selection, recruitment, and composition as well as other things you can use to benchmark your board’s governance practices. Using the “2011 Board Practices Report,” we will review survey results from both public and private companies to help you evaluate your organization’s governance strategies. Read more here.
Why Does Manufacturing Matter?
February 24, 2012The Brookings Institute this week released a study on the impact of manufacturing on the U.S. economy. The report, “Why Does Manufacturing Matter? Which Manufacturing Matters?” suggests: “Public policy is needed to help strengthen manufacturing and promote a high-wage, innovative, export-intensive, and environmentally sustainable manufacturing base.”
The researchers write: “Manufacturing matters to the United States because it provides high-wage jobs, commercial innovation (the nation’s largest source), a key to trade deficit reduction, and a disproportionately large contribution to environmental sustainability.”
“American manufacturing will not realize its potential automatically. While U.S. manufacturing performs well compared to the rest of the U.S. economy, it performs poorly compared to manufacturing in other high-wage countries. American manufacturing needs strengthening in four key areas: research and development; lifelong training of workers at all levels; improved access to finance: and an increased role for workers and communities in creating and sharing in the gains from innovative manufacturing,” the study from the “progressive” leaning Brookings concludes.
An Analysis of the Havel Case
February 24, 2012Last week the OMA reported on the Havel case which is an important tort reform victory. Here is a summary and analysis prepared by OMA Connections Partner Roetzel & Andress. “Defendants will no longer be faced with the strategic decision of whether to bifurcate punitive damages from the liability and compensatory damage phase,” writes attorney Ronald Lee.
Poll: Ohio Voters Support Right-to-Work
February 21, 2012A new poll from Quinnipiac University shows Ohio voters favor passage of a “right-to-work” law by 54 to 40 percent.
Pollsters asked Ohio respondents, “Indiana recently became a “right-to-work” state, meaning that workers can no longer be required to join a union or pay dues or fees to a union as a condition of employment. Do you think that Ohio should become a “right-to-work” state or don’t you think so?”
"Given the assumption that the SB 5 referendum was a demonstration of union strength in Ohio, the 54 - 40 percent support for making Ohio a 'right-to-work' state does make one take notice," said Peter A. Brown, assistant director of the Quinnipiac University Polling Institute. "In the SB 5 referendum independent voters, who are generally the key to Ohio elections, voted with the pro-union folks to repeal the law many viewed as an effort to handicap unions. The data indicates that many of those same independents who stood up for unions this past November on SB 5 are standing up to unions by backing 'right-to-work' legislation."
The Dayton Daily News reported that “Governor Kasich has been cool to any push for a right-to-work law, saying that if proponents go forward they would have to spend considerable time educating voters about it.”
New Ag Department Director Named
February 17, 2012State Senator David Daniels (R-Greenfield), whose district includes Ross, Pike and part of Pickaway counties, was appointed by Governor Kasich to lead the Ohio Department of Agriculture. Daniels resigned from the Senate on Wednesday and was sworn in as director on Thursday.
He replaces Jim Zehringer, whom the governor appointed as Director of the Department of Natural Resources. Daniels is a life-long farmer and previously served in the Ohio House and held numerous local government posts.
Senator Daniels chaired the Energy and Public Utilities Committee, an important committee to manufacturers.
Take Action on Federal Infrastructure Funding Bill
February 17, 2012Congress is considering legislation to provide long-term, well-funded surface transportation reauthorization via the "American Energy and Infrastructure Jobs Act of 2012" (H.R. 7). The measure will be considered by the House of Representatives in the upcoming weeks.
Investments in our nation's transportation infrastructure are absolutely essential to manufacturers' ability to compete and create jobs. America's road and bridge conditions continue to worsen; congestion costs U.S. businesses billions of dollars a year.
Ask your representative this week to support the "American Energy and Infrastructure Jobs Act of 2012" (H.R. 7); the National Association of Manufacturers has a web tool to help you do so.
Supreme Court Upholds Tort Reform
February 17, 2012The Ohio Supreme Court this week upheld tort reforms that direct courts hearing tort lawsuits to grant requests for “bifurcation” of trials; the bifurcation allows for separate consideration of claims for compensatory damages and punitive damages. This protects against prejudice of findings.
The 5-2 majority opinion on the case, Havel v. Villa St. Joseph, was authored by Justice Terrence O’Donnell. Justices McGee Brown and Pfeifer dissented. Watch for case analysis by OMA counsel next week.
Governor Notes Manufacturing Comeback in State of the State
February 16, 2012In his second State of the State address Governor Kasich noted the strength and rebound of Ohio manufacturing.
He said: “So here is the thing with manufacturing—we got the people, we know how to work, we know how to make things, we've got a legacy of it. Secondly, we've got location. Now let me tell you—it’s interesting—every company thinks about costs. That's what we do and we work with them. I talk to CEOs until the sun goes down. Here is what's working. The labor costs in China have risen. The labor costs in Mexico have risen and, unfortunately, the violence creates serious risk and, you know, what we have in Ohio, we're close to markets.”
“So we have to devise a strategy, and we're in the process of devising a strategy right now, where we can have a lot of foreign trade efforts and that's foreign trade to places like California and the State of Washington. Then maybe we can even look overseas, because here is the thing, all-in costs, access to the market, the ability to move things, the ability to make things, all in costs, we're starting to win.”
Manufacturing successes the governor mentioned included recent expansions in Ohio by Ford, Chrysler, Honda, General Motors, Republic Steel, V&M Star Steel, Timken, Johnson Controls, ThyssenKrupp and Whirlpool.
The speech, once again delivered without a script, was notable for its location: for the first time the state of the state address was delivered outside of the Statehouse. The event took place at Wells Academy in Steubenville.
Governor Creates Office of Workforce Transformation
February 16, 2012Via executive order this week, Governor Kasich signed into existence the Governor’s Office of Workforce Transformation (OWT) and created the Governor’s Executive Workforce Board (Board).
The order seeks to establish a central guiding entity for Ohio’s workforce system, which includes adult basic education programs, career centers, two-year and four-year colleges and universities, local workforce boards and one-stop centers, employer training programs, economic develop organizations and community-based organizations.
A director of the OWT, yet to be named, will report directly to the governor.
The order is intended to simplify and coordinate the state’s multiple workforce programs, create a system that is responsive to the needs of employers, workers and job seekers, and implement performance measures to gauge the effectiveness and efficiency of the state’s workforce policies and programs.
The OWT will be advised by a Board to be chaired by a business person, yet to be appointed by the governor.
Railroads Go After Trucking and their Manufacturing Customers – Take Action!
February 03, 2012A committee of the U.S. House of Representatives deleted a provision in the pending federal highway bill which would have given states the authority to allow weight limits to go from 80,000 to 97,000 pounds on interstate highways within their borders.
Learn More about the issue.
Railroad interests have mounted an aggressive media and lobbying campaign to undermine state flexibility in regulating trucking. You may have heard the radio commercials. The spots are intended to create public stir to deter members of Congress from supporting the reforms. Take Action.
ODOT Delays Road and Bridge Projects
February 03, 2012A state panel responsible for establishing priorities for funding transportation projects announced scaled back infrastructure plans. Ohio Department of Transportation (ODOT) director Jerry Wray told reporters that the revised project list “would correct overly optimistic promises of state funding for local transportation proects that previous administrations have made.” The Director said some projects would need to be delayed.
Ohio Right-to-Work Ballot Amendment Certified
February 03, 2012Ohio Attorney General Mike DeWine this week certified a ballot petition for a state constitutional amendment to make Ohio a right-to-work state. Right-to-work prohibits mandatory union membership and payment of union dues. In order to have the measure placed on a future ballot, supporters must collect hundreds of thousands of signatures.
While in Cincinnati this week, the Governor again expressed skepticism that Ohioians would support a right-to-work amendment without extensive voter education.
Kasich to Deliver State of State February 7 in Steubenville
February 03, 2012Breaking with the tradition of holding the State of the State address in the Ohio Statehouse, Governor Kasich will deliver the address at a school in Steubenville. The location is meant, in part, to focus attention on the significant economic benefit anticipated from shale gas.
Watch the Governor’s speech by clicking on Tuesday, February 7, at 1:00 p.m.
OMA President Calls U.S. Manufacturing the “Comeback Kid”
February 03, 2012In a speech this week to the Dayton Regional Manufacturers’ Association, OMA president Eric Burkland presented evidence that U.S. manufacturing is on its way back. Citing numerous recent studies and surveys, Burkland explained why offshoring strategies are turning into on- shoring strategies and why the U.S. could be poised for a manufacturing resurgence.
On the topic of offshoring, Burkland showed studies indicate that: company utilization of “total cost” analysis of offshoring is limited; an overreliance on direct costs to the exclusion of other costs distorts the business case for offshoring; likely, many decisions to offshore were incorrectly made.
Regarding China, this finding: rising wages, shipping costs and land prices – combined with a strengthened renminbi – are rapidly eroding China’s cost advantages. The U.S. meanwhile is becoming a lower-cost country. Around 2015 – for many goods destined for North American consumers – manufacturing in some parts of the U.S. will be just as economical as manufacturing in China.
And on managing toward manufacturing’s potential: Today, U.S. factories produce 75% of the products the nation consumes. The right set of actions and policies by business, educators and policymakers could lead to a robust, manufacturing-driven economic future and push that figure up to 95%.
Manufacturing Central to State of the Union Speech
January 27, 2012Manufacturing was at the core of President Obama’s 2012 State of the Union address: “Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last – an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values. This blueprint begins with American manufacturing.”
The President’s blueprint outlined issues of concern to manufacturers: taxes, energy, trade, regulations and workforce. Manufacturing leaders' response to the specific proposals: underwhelmed.
NAM President Jay Timmons said: “While the President highlighted an important aspect of any competitiveness strategy—ensuring Americans have the skills needed for the modern workforce—he ultimately failed to take advantage of the opportunity. Instead of bold action, the President proposed tinkering around the edges. Many of the ideas he shared would be good for manufacturing, but they would not bring about a manufacturing renaissance.”
Indiana Poised to Become 23rd Right-to-Work State
January 27, 2012“Indiana is poised to become the first right-to-work state in more than a decade after the Republican-controlled House passed legislation on Wednesday banning unions from collecting mandatory fees from workers,” reports USA Today. Indiana would become the 23rd right-to-work state, and the first in the industrial midwest.
Asked about an Ohio right-to-work initiative, Governor Kasich this week at the AP media day said, “If you are going to bring about massive change that is going to bring about great unrest, and I’ve learned this … you have to prepare the public. I don’t think the public even knows what this issue is … I don’t think they’re prepared for it.”
Cleveland Area Events: The Future of U.S. Manufacturing
January 27, 2012John Brandt, CEO, Manufacturing Performance Institute and Dr. Ned Hill, Dean, Levin College of Urban Affairs, Cleveland State University, will present their research findings about the future of U. S. manufacturing in two dinner talks in the Cleveland area on February 15 and 16. Brandt and Hill will explain why those who have written off manufacturing are mistaken.
OMA Backs Legislation that Provides Legal Protection Against Trespassers
January 27, 2012Christopher Slagle of OMA's legal counsel Bricker & Eckler LLP this week urged members of the Ohio Senate Judiciary Committee to enact SB202, sponsored by Senator Bill Seitz (R-Cincinnati).
“Trespassers would be rewarded while Ohio businesses, landlords, farmers and all Ohio property owners could face the prospect of additional litigation and potential liability, “ said Slagle.
The legislation protects Ohio from language in the American Law Institute’s Third Restatement of Torts which would create new avenues of litigation against businesses. Click to view testimony.
OMA-Backed Asbestos Tort Claims “Transparency” Bill Clears House
January 27, 2012The Ohio House of Representatives voted 54-41 along party lines to adopt HB 380 (Blessing, R-Cincinnati). The legislation is intended to prevent double-dipping by claimants in asbestos tort cases.
The legislation, supported by the OMA, would require claimants to disclose all legal claims so that federal and state courts do not grant awards for the same claim. The legislation now advances to the Senate.
Speaker Batchelder Outlines 2012 Priorities
January 20, 2012The House Republican leader this week announced priorities for the winter/spring legislative session. Topping the list will be a review of the K-12 education examining both the funding formula and student achievement, a process to be led by state representative Ron Amstutz (R-Wooster).
Legislation will be introduced to complete the transition of the state’s economic development apparatus to JobsOhio from a state agency to a public/private partnership. Also mentioned as issues of legislative focus: workforce development, workers’ compensation reforms, passage of the Great Lakes Compact (governing Lake Erie watershed withdrawls), casino and gaming laws, health care exchanges, and exotic animal regulations.
NAM’s Timmons Blasts Obama on Keystone Pipeline Decision
January 20, 2012National Association of Manufacturers (NAM) President Jay Timmons responded: “The President’s rejection of the Keystone XL project is a serious blow to job creation and a major setback to energy security. The decision to say no to a project that would create 20,000 manufacturing and construction jobs – with an additional 118,000 indirect jobs – defies logic when the U.S. is suffering from high unemployment and a struggling economy. For America’s future, it’s always better to choose sound policy over politics. Instead the Administration followed the political winds and rejected a clear way to create jobs.”
NAM has created a web tool through which manufacturers are urged to express their disppointment to President Obama.
Watch Timmon’s interview on the subject with Neil Cavuto of FOX News.
Manufacturing EXPO Slated for February 14-15 in Cleveland
January 13, 2012Manufacturing EXPO: “Putting a Face on Manufacturing,” will take place February 14-15, 2012 in Cleveland to facilitate business opportunities for manufacturers. More than 3,000 engineers, industrial buyers and other manufacturing representatives are expected to attend, with more than 170 exhibitors representing all areas of the manufacturing industry.
The EXPO Conference will feature the expert knowledge of seven highly respected speakers: Raymond “Ray” Lugo III, Director at NASA Glenn; Roger Kilmer, Director of the Manufacturing Extension Partnership of the National Institute of Standards & Technology; Birgit Matthiesen, Special Advisor to the President and CEO, Canadian Manufacturers and Exporters; Grady Cope, Chairman, National Tooling and Machining Association; John Kastelic, President, Cleveland Intellectual Property Law Association; VP/Chief Intellectual Property Counsel, Eaton Corp, Steve Erickson, Vice President, Strategic Marketing, Parker Hannifin and Jack Schron, President, Jergens, Inc.
Obama Administration: American Manufacturing Coming Back
January 13, 2012The Obama administration this week released a report, “Investing in America: Building an Economy that Lasts,” that finds “measurable improvement in the competitive position of U.S. manufacturing, and an expansion of our domestic natural resources that further supports business investment. The composition of investment has shifted, with a focus, once again, on building the equipment and the plants that produce the real goods and services our people need and the world demands.
According to the report: “Over recent months, outside analysts, including the Boston Consulting Group, Accenture, and Booz & Company have examined the increasing relative attractiveness of the U.S. as a location for manufacturing." The Boston Consulting Group noted that “the U.S. will become an increasingly attractive option, especially for products consumed in North America,” as the “total cost of doing business” – after taking into account the productivity of U.S. workers as well as transportation, supply chain risks, and other costs – are now making production in a range of industries as economical in the United States as in other parts of the world, including China."
Why U.S. Manufacturing is Poised for a Comeback
January 13, 2012A new report from Reynders, McVeigh Capital Management finds: “Globalization is gradually coming full circle as companies explore homeshoring – bringing their manufacturing workforces back to America. Cost advantages of outsourcing production are becoming less significant.”
Three drivers are responsible for "breathing life back into manufacturing”: a shrink in wage gap with China and other countries, transportation costs, and a more holistic view of the cost of production.
As more firms use a Total Cost of Ownership (TCO) evaluation, which looks at “the entire cost incurred by companies when purchasing a manufacturing part, including the burden of controlling quality and delivery, transportation, oil consumption, inspection of labor, inventory carrying, and freight and packaging,” they are finding it “ cheaper and more predictable to keep manufacturing close to home.”
AG Report Causes Media Stir
January 13, 2012Ohio newspapers are reporting widespread non-compliance by companies that received economic development incentives in recent years. “A new report from the Ohio Attorney General's Office says when it comes to abiding by the terms of economic development incentives awarded by the state, only about half of the recipients live up to expectations,” wrote the Lima News, as an example.
A law enacted in 2008 directs the Ohio Attorney General to monitor the compliance of business entities with the terms and conditions of state awards for economic development issued by the Ohio Department of Development. The report produced by Attorney General Mike DeWine looked at 420 companies and found that 200 did not “comply.”
A closer look at the data shows that this “non-compliance” seems mostly matters of paperwork and economic conditions.
