News and Analysis
OMA Connections Partner RSM has published new insight on the shortage of semiconductors, noting that billions of dollars are expected to be invested in U.S. chip production over the next few years — primarily in Arizona.
RSM notes that “the trickle-down effects of re-emerging domestic chip production are still, in large part, many years away from having significant impact on the global chip market and the middle market.” 8/25/2021
The global chip shortage has worsened for key automakers. Toyota this week announced it will drastically reduce global production. Ford will temporarily shut its Kansas City plant that builds the F-150.
Visual Capitalist recently published this infographic to illustrate the impact of the chip shortage on U.S.-based automakers. When the graphic was published, more than 1.1 million vehicles were estimated to face production delays — with Ford, Stellantis, and GM combining for 855,000.
Japanese automakers Honda, Nissan, and Toyota (prior to this week’s news) were estimated to take a collective hit of approximately 108,500 delayed models, while companies like Hyundai and Volvo had fewer than 3,000 vehicles impacted. Where each automaker sources and installs its chips is a key reason for the discrepancy. 8/19/2021
The seven-member Ohio Redistricting Commission — charged with redrawing political boundaries based on 2020 census data — is planning 10 public hearings in 10 communities from Aug. 23-27. Here’s the schedule.
Members of the commission include Gov. Mike DeWine, Secretary of State Frank LaRose, state Auditor Keith Faber, and lawmakers from both sides of the aisle. 8/17/2021
This week, an article in The Atlantic magazine made a case for more federal financial support of American manufacturing. According to author Robinson Meyer, while the U.S. “lavishly supports” new technologies in the research stage and decades away from reaching a market, the financial system has in recent decades failed to support those same technologies when they are on the verge of commercialization and ready for mass production.
Meyer says there’s growing support on Capitol Hill for an Industrial Finance Corporation that would help fund high-tech manufacturing nationwide. 8/18/2021
This week, the OMA hosted an in-depth look at opportunities in Industry 4.0 — manufacturing’s integration of digital automation. Experts from OMA Connections Partner Plante Moran examined ways Ohio manufacturers — including smaller and mid-sized businesses — can engage to improve performance and profitability.
Following U.S. Senate passage this week of the Infrastructure Investment and Jobs Act, National Association of Manufacturers (NAM) President and CEO Jay Timmons released this statement, saying in part:
“… This is the type of infrastructure investment manufacturers have long championed, and the bipartisan approach shows that our legislators can indeed still come together to accomplish transformational change. We now urge members of the House to follow the Senate’s example, pass this bipartisan bill and send it to the president’s desk for his signature without delay. …” 8/11/2021
The Statehouse News Bureau has summarized the process by which Ohio’s new legislative districts — based on the 2020 census — will be created.
Five Republicans and two Democrats sit on the panel. Governor Mike DeWine (R), Secretary of State Frank LaRose (R), Auditor Keith Faber (R), House Speaker Bob Cupp (R-Lima), and Senate President Matt Huffman (R-Lima) are on the panel because they occupy the offices designated by law to be part of the commission. House Minority Leader Emilia Sykes (D-Akron) and Sen. Vernon Sykes (D-Akron) have been tapped by leaders to fill the commission’s minority seats. Cupp and Vernon Sykes will serve as co-chairs.
The commission must meet a Sept. 1 deadline for having the legislative districts drawn. There will be nine hearings throughout the state in the coming weeks so voters can weigh in.
Complicating the process is that the 2020 census data weren’t available until yesterday, August 12; these data include the population counts and demographic characteristics needed to redraw electoral district boundaries. 8/10/2021
This week Gov. Mike DeWine announced that Bruce Vanderhoff, M.D., will become the Director of the Ohio Department of Health and that Stephanie McCloud, who has been serving as Director of the Ohio Department of Health, will resume leadership of the Ohio Bureau of Workers’ Compensation as administrator.
The changes are effective Monday, August 16. Both positions require confirmation by the Ohio Senate. 8/11/2021
On August 24, the House will start holding hearings again on a bill that would limit employers’ rights with respect to vaccination policy. The House Health Committee will hear testimony on House Bill 248 – a bill prohibiting any public or private entity (i.e. businesses, schools, childcare facilities, universities, or hospitals) from mandating or requesting an individual get any vaccine, not just the COVID-19 vaccine, or from requiring or requesting an individual’s vaccine status.
Ross McGregor, a former state representative and president and owner of Pentaflex Inc., testified on behalf of the OMA against the legislation in June. While his company doesn’t currently mandate COVID-19 vaccinations, McGregor testified that, “Employers are in the best position to make those choices on how best to protect their companies, not the government. Restricting an employer’s ability to safeguard its employees’ health in the workplace not only puts its employees, their families, and communities in danger, but also impacts the manufacturing supply chain, which is already fragile due to the complex nature of our businesses.” 8/12/2021
After more than 40 years at the OMA, Margaret West — who served as the OMA’s director of financial and administrative services — has retired from the association.
West started her OMA career in April 1981, the same month the space shuttle Columbia made its first voyage. When asked what she will miss most about the OMA, she said “it will be a toss-up between my co-workers and my work,” which allowed her to communicate with OMA members.
Margaret said she’s looking forward to catching up on reading, having lunch with friends, and no longer setting her alarm. The OMA congratulates Margaret on her retirement and thanks her for four decades of service to Ohio manufacturers! 8/2/2021