News and Analysis
Members of the House and Senate continue to negotiate differences between the chambers’ versions of the state’s two-year main operating budget, House Bill 166. The spending plan contains several major policy provisions that would affect manufacturers — including workforce funding, numerous tax provisions, and a plethora of smaller changes.
The HB 166 conference committee convened Tuesday to receive the latest revenue estimates from OBM and LSC. Conferees were told that tax revenue for the current fiscal year — as well as the two covered by the new budget — would be hundreds of millions more than the estimates used at the beginning of the budget writing process. After the hearing, the committee recessed until a later date, which was still unknown as of the deadline for this issue of the Leadership Briefing.
The conferees have a deadline of 11:59 p.m. Sunday, June 30, to provide a final budget agreement. If the committee fails to produce a report that is accepted by the House and Senate, and signed by the governor, then the state would require a continuing resolution — a temporary funding measure to provide for the functions of state government. Both the House and Senate are scheduled to be in session for the weekend in anticipation of a budget agreement. 6/27/2019
Nationwide, manufacturers were feeling more cautious about their economic prospects in the second quarter, according to the NAM’s latest Manufacturers’ Outlook Survey. While 79.8% of American manufacturers rated their outlook as positive, that was a drop from 89.5% in the first quarter of 2019. When analyzing specific issues, 68.8% of respondents said workforce was their top concern. On trade, 56.0% reported uncertainty due to the USMCA, U.S.-China trade disputes, the threat of Section 232 auto tariffs, and the tariffs on Mexico, which has since been resolved. 6/25/2019
According to OMA Connections Partner Dinsmore, businesses have until Sept. 30 to file a request to be exempted from the 25% tariffs (List 3) recently placed on $200 billion worth of Chinese goods on May 10, 2019. The Office of the U.S. Trade Representative (USTR) has posted instructions on how to request an exclusion of certain products covered by the Trump administration’s third — and latest — round of tariffs. Interested parties can make their exclusion requests online beginning noon Sunday, June 30. See Dinsmore’s update for more on this and other tariff-related issues. 6/26/2019
In a 5-4 ruling Thursday, the U.S. Supreme Court declared that federal courts should not decide congressional redistricting disputes. As interpreted by Poltico, the ruling is “a boon to Republicans, who control the majority of state legislatures,” which draw the congressional district maps in most states.
The ruling means Ohio will keep its current legislative districts until 2022. Republicans have held 12 of Ohio’s 16 congressional districts since the last redistricting process after the 2010 census. 6/27/2019
On Tuesday, June 18, the OMA Board of Directors met for their quarterly meeting at the OMA headquarters. Key actions taken by the board included the election of officers and new directors.
Jane Neal, senior vice president of AMG Vanadium LLC, was elected new chair of the OMA, replacing Scott Balogh, president and CEO of Mar-Bal, Inc., following his two years of leadership as chair. Billy Vickers, president and CEO of MAI-GLA, was elected first vice-chair.
To recognize Balogh’s service, the OMA made a donation in his name to Modern Warrior Live — a theatrical production of a combat veteran’s journey.
The following new directors were elected to the board:
- Cathy Lyttle, senior vice president & chief human resources officer, Worthington Industries.
- Greg Muhlenkamp, vice president, Hartzell.
- Bob Nelson, senior vice president, Honda of America Mfg.
Guest speakers at the meeting included Ohio Excels President Lisa Gray, who discussed efforts to enhance Ohio’s K-12 education system and graduation standards. Lydia Mahalik, director of the Ohio Development Services Agency, briefed the board on House Bill 2, which would boost industry-recognized credentials and regional industry sector partnerships. 6/18/2019
In his last board meeting as OMA chairman, Scott Balogh of Mar-Bal, Inc. this week recapped his experience leading the association.
The Ohio Senate on Thursday passed House Bill 166, the state operating budget. The passage came following the Senate Finance Committee’s acceptance of an omnibus amendment that was comprised of eight pages of bullet-point changes. Among these changes were new graduation standards, H2Ohio provisions, and increased funding for the TechCred program. The House did not concur with the Senate changes.
The House and Senate will soon designate appointees for a conference committee, which will begin negotiations as the House, Senate, and governor will work towards an agreement on the bill’s final provisions. The deadline for final budget passage is Sunday, June 30. The OMA will continue to work with the legislature to protect Ohio’s manufacturers in this final stage of consideration. 6/20/2019
Manufacturing Day — the annual celebration of modern manufacturing that is meant to inspire the next generation — will be held this year on Friday, Oct. 4. Now is the time to begin planning.
MFG DAY is an opportunity to educate young people — and their parents and educators — about 21st century manufacturing. According to Deloitte’s 2016 survey, 84% of students who attended MFG DAY events emerged “more convinced that manufacturing provides careers that are interesting and rewarding.”
The OMA encourages its members to open their doors to students, parents, teachers, and community leaders. (Here is who has already registered.) While MFG DAY is Oct. 4, companies and organizations should plan their events on the date in October that works best for them. Events can be marked as public or invitation-only. To register, or for help with publicizing your event, click here. 6/17/2019
When the Pew Research Center began tracking social media use in 2005, just 5% of American adults used at least one of these platforms. Today, 72% of the public uses some type of social media. For those under 30, the figure exceeds 90%. That’s why the OMA has become more active in its use of LinkedIn, Twitter, and Facebook. If you’re using one or more of these social media platforms, be sure to check out the OMA’s pages for manufacturing news and information, as well as announcements and updates. 6/19/2019
The Ohio Senate this week made their first round of amendments to the state’s two-year, main operating budget, contained in House Bill 166. Early next week, the upper chamber will make further revisions before voting on the final Senate version and sending it to a joint House-Senate conference committee that will reconcile various differences between the two chambers.
The current Senate version of the bill includes $33.58 billion in General Revenue Fund spending in Fiscal Year 2020, down $10.64 million from the House version, and $35.24 billion in FY 2021, up $23.15 million from the House version. Across all funds, the Senate version allocates $69.83 billion in FY 2020, up $18.20 million from the House, and $71.88 billion in FY 2021, up $187.36 million from the House.
The final budget must be presented to Gov. Mike DeWine no later than June 30. 6/13/2019
In a recent blog post, JobsOhio’s Joe Needham — director of food and agribusiness for the state’s private economic development corporation — writes about the key factors currently disrupting the food industry: financial pressure, consumer preference, and technology. “These trends are causing and enabling significant shifts and disruption in the Ohio and the U.S. food manufacturing system,” Needham writes. See the article here. 6/10/2019