Leadership

‘Data Rights’ Legislation Introduced

Ohio Lt. Gov. John Husted this week announced the introduction of the Ohio Personal Privacy Act (OPPA). House Bill 376 is a comprehensive plan offered by Reps. Rick Carfagna (R-District 68) and Thomas Hall (R-District 53) to provide data privacy protections that resemble those enacted in California, Virginia, and Colorado.

The OPPA would create a list of “data rights” for state residents who interact with businesses that collect and sell personal data. These rights would include the ability to have a company delete personal data, as well as request that business not sell personal information to a third party. As the bill is currently written, businesses would need to adhere to HB 376’s provisions if they:

• generate $25 million in gross revenue; or
• control or process data of at least 100,000 consumers; or
• derive more than 50% of gross revenue from the sale of personal data.

Summaries and analysis of the bill have been published by OMA Connections Partners Dinsmore and Thompson Hine. 7/15/2021

Producer Prices Surge 7.3% Over Past 12 Months

According to U.S. Labor Department data, producer prices for final-demand goods and services have increased 7.3% over the past 12 months — the largest increase on record. Prices for industrial chemicals rose 4.5% last month alone, while prices for gasoline, meats, electric power, processed poultry, and motor vehicles also moved higher. Meanwhile, consumer prices increased 5.4% over the past 12 months.

Several CEOs have sounded the alarm on inflation, with JPMorgan Chase’s Jamie Dimon saying it “could be worse than people think.” Chad Moutray, chief economist for the National Association of Manufacturers, says continued inflation “will put pressure on the Federal Reserve, likely accelerating its plans for tapering asset purchases and increasing interest rates.”

According to analysis by OMA Connections Partner RSM, consumer prices will likely peak in the fall. The firm adds: “If one is a middle-market firm manager … this is a good starting point for a rational conversation around inflation risk and any prospective policy changes.” 7/15/2021

Supply Chain Leaders Move to the C-Suite

Manufacturers are re-evaluating their approach to supply chain management. A recent study concluded that increased C-suite engagement with managing their supply chains — combined with efficient adoption of technologies — could play a key factor in company growth. Read more on how supply chain management is changing in this insight from OMA Connections Partner Fifth Third Bank. 7/14/2021

NAM Critical of Biden’s Latest Executive Order

On July 9, President Joe Biden issued the 52nd executive order of his young presidency — this one titled “Promoting Competition in the American Economy.” The order directs various federal agencies to implement 72 actions aimed at impacting a range of economic activity, including expanding labor union participation, forcing OEMs to allow third-party repairs, and lowering prescription drug prices.

The National Association of Manufacturers (NAM) has published this summary of Biden’s order. NAM President and CEO Jay Timmons has said some of the order’s provisions “are solutions in search of a problem” and threaten to undo manufacturers’ progress by “undermining free markets.”

For details on the order’s call to ban non-compete agreements, read this insight by OMA Connections Partners Dinsmore and Vorys. 7/14/2021

A Look at U.S. Population Shifts Since 2010

While the U.S. remains the third most-populated country in the world, the country’s population has shifted over recent decades. Visual Capitalist has produced this infographic based on U.S. Census Bureau data to visualize how each state’s population has evolved over the past 10 years. Utah saw the largest population growth rate (18.4%) during the last decade; West Virginia experienced the steepest decline (-3%). 7/14/2021

U.S. Manufacturing Indexes Reflect Confidence, Growth

The most recent RSM Manufacturing Outlook Index shows above-normal levels of manufacturing confidence — marking the fourth consecutive month of significant, above-normal sentiment. RSM says it expects these high levels of confidence to be sustained.

Meanwhile, the ISM® Manufacturing Purchasing Managers’ Index® edged down from 61.2 in May to 60.6 in June, but it was the sixth time in the past seven months that the headline index exceeded 60, signaling strong growth. Prices soared at the fastest rate since July 1979 as respondents continued to cite widespread supply chain challenges. 7/6/2021

Webinars on Cybersecurity Preparedness

OMA Connections Partner CliftonLarsonAllen has posted this on-demand webinar and these slides to help businesses solidify their cybersecurity strategies, including identifying developing trends, boosting cybersecurity preparedness, and managing a breach. The firm has also published this list of 10 ways to help protect computer networks from viruses and attacks.

Similarly, OMA Connections Partner GBQ Partners will host a free webinar to discuss current cyber risks and how to protect your company. 7/7/2021

Study: Ohio a Top 10 State for Retirement

A new study by Bankrate.com finds Ohio is a top 10 state in which to retire. The study examined five categories: affordability, wellness, culture, weather, and crime. The full rankings can be seen here. 7/8/2021

Ohio Lawmakers Approve, Governor Signs New Budget

Before breaking for its summer recess, the General Assembly this week approved, and Gov. Mike DeWine signed, a $74.1 billion, two-year state operating budget (House Bill 110). This compares to roughly $70 billion in general-fund spending under the previous two-year budget.

The 3,300-page measure received strong bipartisan support, with an 84-13 vote in the House and a 32-1 vote in the Senate. Among the highlights and key provisions impacting manufacturers are the following:

• Elimination of Ohio’s sales tax on employment services used by businesses to hire employees. Repeal of this tax has been a longtime priority for Ohio manufacturers. The provision will save employers an estimated $303 million over the biennium. It’s one of the most beneficial pieces of tax reform since the landmark reforms of 2005, when Ohio eliminated the tangible personal property tax and corporate franchise tax. (Read the OMA’s statement.)
• Invests significant funding in Ohio’s workforce development. This includes $5 million in grants for Ohio’s industry sector partnerships, $25 million for Ohio’s innovative TechCred program, and additional support payments to public schools whose students earn industry-recognized credentials. (See separate story.)
• Settles the municipal income tax withholdings question for 2021. The budget extends through the end of this year the temporary law that allows municipal income tax withholdings to be based on an employee’s principal work location, not where he/she has worked remotely during the pandemic. Employees who worked remotely will be able to file for refunds for the 2021 tax year. (Read this summary by OMA Connections Partner Vorys for more details.) During the early days of the pandemic, the OMA worked with members to allow the continuation of withholding from a principal place of business — and throughout the past year, the OMA Tax Committee and staff have worked with the legislature to find an administratively acceptable solution.

Regarding the pro-manufacturing provisions in the budget, OMA President Ryan Augsburger said: “Manufacturers thank Ohio’s policymakers for adopting a responsible and balanced budget, while at the same time focusing on strategic investments to propel the state’s predominant industry.”

The governor vetoed 14 items from the budget, but none impacted OMA priorities. (See separate story.)

To compare the House and Senate versions of the budget to the final product, the Ohio Legislative Service Commission has published this comparison document and spreadsheet.

For more details regarding budget provisions that are important to manufacturers, see separate stories elsewhere in this Leadership Briefing, as well as this updated memo from the OMA Public Policy Services team. 7/1/2021

DeWine Vetoes 14 Budget Provisions

Before signing the Fiscal Year 2022-23 state budget, Gov. Mike DeWine vetoed 14 items, including a provision that would have returned about $100,000 to businesses that were fined for violating COVID-19 health orders. None of the line-item vetoes impacted OMA priorities. Read the governor’s veto messages, as well as the boxed text from the budget itself. 7/1/2021