ManufacturerThe Illinois

www.ima-net.org Winter 2008

IMA: Serving Illinois manufacturers for 115 years, 1893-2008

John Deere Plow Works forge shop – Moline, Illinois – circa 1910IMA founding member John Deere and his partners located the first plow factory on the MississippiRiver in 1848. Seven hundred plows were built in that first year. By 1857 Deere was manufacturing10,000 plows a year, with the average plow costing $6 to $9. The Plow Works was Deere’s only factory until 1877. The factory site is now home to Moline’s John Deere Commons area andincludes the John Deere Pavilion and the John Deere Collectors Center.

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Mission StatementThe object for which the IllinoisManufacturers’ Association wasformed is to strengthen the eco-nomic, social, environmental andgovernmental conditions for manu-facturing and allied enterprises inthe state of Illinois, resulting in anenlarged business base andincreased employment.

ChairmanGeorge A. Vincent, III

PresidentGregory W. Baise

EditorStefany Henson

The Illinois Manufacturer is pub-lished quarterly by the IllinoisManufacturers’ Association. Allrights reserved. The title, TheIllinois Manufacturer, is a trademarkof the Illinois Manufacturers’Association.

Copyright 2007© IllinoisManufacturers’ Association.Reproduction of all or any part isprohibited except by written per-mission of the publisher. Publishedarticles do not necessarily reflectthe views of the magazine or itspublisher. Information in this publi-cation should not be substituted foradvice of competent legal counsel.

Subscriptions: One year $30. Forsubscription, address changes,renewals and adjustments, write toThe Illinois Manufacturer. Presortstandard postage paid atBloomington, IL. Postmaster: Sendaddress changes to The IllinoisManufacturer: 220 East AdamsStreet, Springfield, IL 62701. 217-522-1240.

If you have any questions, pleasecontact Stefany Henson, Editor andIMA Director of Publications at 217-522-1240, Ext. 3017, or email shenson@ima-net.org.

Winter 2008

Share your company newswith IMA . . . News information, press releases and articles may besent to Stefany Henson, Editor and Director ofPublications, Illinois Manufacturers’ Association(IMA), 220 East Adams Street,Springfield, IL 62701, oremail: shenson@ima-net.org.

The Illinois Manufacturer is underwritten by Constellation NewEnergy

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ColumnsPresident’s Report: Ensuring that Illinois remains a business-friendly environment has been a huge challenge in 2007...................................Page 4

Legislative Report: A tale of two legacies: Legacies are being created in Illinois that could have reverberations for generations to come ..........Page 6

Tax & Accounting Issues: Mark Miskell, Managing Director at RSMMcGladrey, discusses a recently issued FASB interpretation that may leave executives at midsized companies scrambling to comply ...............Page 7

Energy Issues: Peter Kelly-Detwiler from Constellation NewEnergy explains how taking advantage of load response programs can be good for the bottom line and the environment ..........................Page 9

Member News: News for and about IMA members around the state.......Page 20

Human Resources Roundup: The key to success when attending any office function, event or party is preparation and planning ................Page 23

IMA & MIT Calendar of Events ........................................................Page 30

New IMA Members: Welcome! .........................................................Page 30

Energy budget management case study:IMA member Philippi-Hagenbuch, Inc. .............................11

Illinois Manufacturer’s Purchase Creditpresents refund opportunitiesBy John A. Biek of Neal, Gerber & Eisenberg LLP .............................16

IMA Board seats five new members ....................................22

IMA’s 2008 Annual Holiday Report......................................27

Founding members an important part of Illinois’ rich historyIn 1893, seven Illinois manufacturers joined forces to become the IMA. The manufacturersstrongly believed in the need to organize andform one voice for manufacturing. Today, 115years later, the IMA is still that voice and continues to be a powerful advocate forIllinois manufacturers.

Cover image and photograph on page 14 courtesy of Deere & Company, Moline, Illinois.

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A vital part of Illinois’ history and a compelling presence at the Capitol today

President’s ReportGREGORY W. BAISE

Gregory W. Baise is president and chief executive officer of the Illinois Manufacturers’ Association. He may be reached at 630-368-5300, or via email at gbaise@ima-net.org.

A s we begin our 115th year as the voice for manufacturers in Illinois, consider the impactIMA members have had on Illinois’ history. From a small group of manufacturers whoformed the IMA in Chicago in 1893, to the large, influential group we are today, things

have changed, yet stayed the same. We’re still the voice for Illinois manufacturers, and we stillwork diligently to ensure that Illinois remains a business-friendly environment. This has been ahuge challenge in 2007, considering the antics of Illinois Governor Rod Blagojevich.

IMA members responded enthusiastically to our call for help to meet the challenges at theCapitol. As a result of IMA members’ contributions of both time and money, we were able to airradio spots on more than 50 Illinois radio stations. The message expressed our deep concernand disappointment with the leadership of Governor Blagojevich. Some people considered thismedia blitz unnecessary and wondered why we did this. We did so because we could not standidly by while the Governor attempted to destroy the economic viability of doing business inIllinois. On top of the already increased costs of energy and commodities, additional taxes arethe last thing Illinois manufacturers need. As a result, the governor was thwarted in his attemptto impose excessive business taxes on IMA members.

In Governor Blagojevich’s five years in office, there has been dysfunction, infighting, distrust,endless legislative sessions and self-serving leadership that have resulted in nothing positive forIllinois taxpayers. He did little or nothing to entice Honda or Toyota to locate facilities in Illinois,resulting in Indiana and Mississippi gaining those facilities and the jobs that accompany them.Illinois has lost more than 59,000 manufacturing jobs (59,300 as of October, 2007) since this gov-ernor’s tenure in office.

Manufacturers face numerous challenges every day. Globalization and fierce competitionrequire us to produce quality goods more efficiently and at lower prices. Increases in fixed costsfor payrolls, providing healthcare and other benefits for workers, and keeping up with today’sconstantly changing technology contribute to deteriorating profit margins. Absolutely no assis-tance is forthcoming from this administration. It is our mission to change this bias.

We are proud of goods that are “made in Illinois.” We will continue to take pride in our prod-ucts and fight to maintain the excellent reputation of products “made in Illinois.” Manufacturersshould not be forced to endure belittling attacks from this governor. The Governor’s own fatherworked in a steel mill, yet he makes no effort to ensure that Illinois remains a world-class manu-facturing destination. Illinois deserves better. Manufacturers deserve better.

Consider IMA’s founding members. They include Amsted Industries, Inc., BrunswickCorporation, Commonwealth Edison Company, Deere & Company, the Dial Corporation, PeoplesEnergy Services and the Tablet & Ticket Company. (You can read more about this influentialgroup beginning on page 13.) From humble beginnings in 1893, to the influential group the IMAis today, our founding members are still the backbone of the association.

These members, and all of you, will continue to oppose this Governor’s efforts to raise taxes,create social programs with no means to pay for them, and force jobs and businesses to locateanywhere but Illinois. And we will succeed. After 115 years as the voice of Illinois manufactur-ers, the IMA continues to be a force to be reckoned with. Stay involved with our efforts, and wewill be successful in the future — representing the best interests of Illinois manufacturers.

Have a joyous holiday season and a peaceful and prosperous new year.

Manufacturers face numerouschallenges every day.Globalization and fierce competitionrequire us to produce qualitygoods more efficiently and at lower prices.

F or more than six centuries, theword “legacy” has appeared inwriting, first showing up in

popular English literature around1350. Depending on your source ofinformation, the word’s origin isattributed to either an Anglo-French

or Medieval Latin beginning but gen-erally can be defined as “items or areputation left behind for future gen-erations.”

Take a minute and think back tohistorical or popular legacies thatexist today. Maybe you’re a sports

fan who reminisces fondly about theUCLA basketball juggernaut from the1970’s that set the modern standardfor college sports championships. Ormaybe you’re currently witnessingthe creation of Tiger Woods’ legacyon golf courses around the world.Baby boomers recall the remarkableand lasting legacies created by ElvisPresley and the Beatles that continueto be reflected in today’s music.Political and historical figures —ranging from Thomas Jefferson andAbraham Lincoln to Al Capone andAdolf Hitler — have left legacies andlessons, not all positive, for futuregenerations to learn from.

Today, in Illinois, legacies arebeing created by Governor RodBlagojevich and the Illinois Manu-facturers’ Association that couldhave reverberations for generationsto come.

Manufacturing and the IllinoisManufacturers’ Association haveenjoyed a long and storied traditionin this state. Whether it was the CivilWar, the Industrial Revolution, or theadvent of the assembly line, Illinoismanufacturing has played a key rolein many major events in our nation’shistory. During the height of theIndustrial Revolution in 1893, a smallbut ambitious group of manufactur-ing leaders met in Chicago with thegoal of creating one voice for manu-facturing. Thus, the IMA was formedas the first manufacturing trade asso-ciation in the United States.

Throughout our 115 year history,the IMA has advocated for a freeenterprise system and promotedgood public policy. This has benefit-ed manufacturing companies andindustry has thrived in Illinois. Overthe past century, the IMA has beenengaged in issues such as ensuringthat women have the right to work(1893), the first Workers’ Compen-

Legislative Report

MARK DENZLER

A tale of two legacies

Mark Denzler is Vice President of Government Affairs and Membership for the Illinois Manufacturers’ Association. Mark can be reached at217-522-1240, extension 3008, or mdenzler@ima-net.org.

see LEGACIES page 25

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Constellation NewEnergy — Serving over 14,000 commercial & industrial customers

Scientific American, Smith & Wesson’s revolver factory, Springfield, Illinois, showing the processes of pro-duction — from the forging of the barrels and the stocking and milling rooms, fitted with power by meansof belt and shafting, the rifling room and the fitting room. (Engraving — New York 24 January 1880)

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O n Thursday November 7, 2007the Financial AccountingStandards Board (FASB) voted

to defer the effective date of FASBInterpretation No. 48 (FIN 48) fornonpublic entities until years begin-ning after December 15, 2007. TheInterpretation was originally effectivefor both public and nonpublic enti-ties for fiscal years beginning afterDecember 15, 2006.

FIN 48 requires companies to rig-orously assess the merits of theiruncertain tax positions taken on anytax return for any “open” tax year.

The delay was proposed becauseof concerns about the implicationsof FIN 48 on pass-through entitiessuch as S corporations and partner-ships. These entities are expected toencounter significant compliancehurdles when assessing the implica-tions of FIN 48. Regardless of thedelay, non-public entities will needthe additional time to inventory,document, access and build a sys-tem to track and monitor uncertaintax positions. Adoption of FIN 48can provide a clearer picture of yourorganization’s overall tax exposureand enable your organization to bet-ter monitor and potentially reducetax exposure, but it will take time.What is an uncertain tax position

All companies seek to legitimatelyreduce their overall tax burden andminimize or delay cash outflows fortaxes. Positions taken in tax returnsmay be well-grounded and in goodfaith, but with the complexities andvarying interpretations of the tax law,these positions may not ultimatelyprevail. Complexity creates uncertain-ty regarding the actual benefit a com-pany will receive from a positiontaken on its tax return. FIN 48 estab-lishes a uniform process for deter-mining whether the tax benefit result-ing from a position taken on a taxreturn should be recognized in thefinancial statements of an entity.

Common examples of uncertaintax positions include characterizinggains or losses as capital gains orlosses, claiming a tax credit, allocat-ing income between jurisdictions (ornot filing a return when a companybelieves it does not have nexus in astate or country), excluding incomethe company believes is tax-exempt,and taking a tax deduction.Compliance deadline has beenextended, but don’t wait to start complying

For midsized companies without alarge in-house tax department or theability to dedicate multiple staff mem-bers to a special project, complyingwith this interpretation could provedaunting, especially for those that filein multiple states and countries.

FIN 48’s aggressive timeline mag-nifies the problem. For calendar-year-end companies, FIN 48 is effective for2008. Calendar-year companies thatonly issue year-end annual financial

statements are not required to adoptFIN 48 until they issue their financialstatements at the end of 2008.

However, companies that issueGAAP financial statements more fre-quently, such as monthly or quarter-ly as required by their bank or bySecurities and Exchange Commission(SEC) rules, must comply with FIN48 for their interim statements aswell. For these companies, the com-pliance deadline is fast approaching(or may already be here).The FIN 48 approach

FIN 48 utilizes a two-stepapproach for evaluating tax posi-tions. It addresses the recognitionand measurement of income taxpositions using a “more-likely-than-not” (MLTN) threshold. More-likely-than-not is defined as being morethan 50 percent probable.

Step one: recognition. Under FIN48, the FASB may not recognize a ben-

Mark Miskell is a Managing Director at RSM McGladrey. For more information, he can be reached at 309-671-8715 or by email atmark.miskell@rsmi.com.

Tax & Accounting Issues

MARK MISKELL

FASB delays effective date of Fin48for nonpublic entities

see FASB page 25

L ast quarter’s Energy Issues col-umn presented an overview ofthe new Illinois Power Agency

Act which was signed into law inAugust. A significant component ofthe Act was the creation of competi-tive customer classes which will berequired to work directly with com-petitive energy suppliers to meetfuture electricity needs. This is greatnews to Illinois manufacturers seek-ing to achieve both short and long-term economic and environmentalobjectives in a rapidly changing andvolatile energy marketplace. Nolonger anchored to the utilities’ reg-ulated electricity prices, the state’smanufacturers can now take fulladvantage of the wide range ofproducts and services that competi-tive energy suppliers are positionedto deliver.

In addition to creating competi-tive customer classes, the Act alsocommits Illinois utilities, ComEd andAmeren, to overseeing the design,development and filing of a demandresponse plan with the IllinoisCommerce Commission and to beginimplementing a cost-effectivedemand response program in 2009.Introducing a comprehensivedemand response program to theregion will help reduce stress on theelectricity grid and the need foradditional generation sources, whilealso preventing blackouts duringtimes of peak demand. So, howdoes demand response work andwhat are the benefits to an individ-ual manufacturer for voluntarilyenrolling load in the program?

In essence, demand response cre-ates a “virtual” peaking plant whichcan be called upon to deliver loadto the grid to meet demand duringpeak periods. In this way, the ISO(independent system operator) har-

nesses the energy conservationefforts of its customer base ratherthan bringing older gas, oil or coalplants on-line to meet demand. Atthe individual facility level, theseconservation efforts often reflectdimming lights and raising the setpoint on thermostats, or changingproduction schedules in some cases.

In the PJM power pool (MISO isoffering a somewhat different pro-gram), commercial and industrial cus-tomers including manufacturing facili-ties, which demonstrate an abilityand commitment to curtailing at least100 kilowatts of electricity, can signup to participate in an ISO-directed

demand response program through acompetitive energy supplier such asConstellation NewEnergy. For smallermanufacturers or facilities that cannotsolely meet the 100 kilowatt mini-mum requirement, it is possible toaggregate load reductions across mul-tiple locations. There is an annualdeadline for enrolling load into theprogram and the minimum commit-ment is for one year. Getting startedrequires that a facility be equippedwith an interval meter capable ofreading consumption in hourly incre-ments and communicating with theISO or responsible utility.

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Competition spurs innovative energy management solutions for Illinois manufacturersHow taking advantage of load response programs can be good for the bottom line and the environment

Energy Issues

PETER KELLY-DETWILER

Peter Kelly-Detwiler is senior director of energy technology services for Constellation NewEnergy, a leading competitive supplier for commercial and industrial customers. He can be reached at peter.detwiler@constellation.com.

see COMPETITION page 10

“There is an annual deadline for enrolling load into thedemand response program and the minimum commitment

is for one year. Getting started takes five easy steps.”

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For manufacturers seeking a real-time return on investment, enrollingin a demand response program is asmart business decision. The pay-back for participating can be meas-ured in immediate savings. Inexchange for enrolling load into theprogram, a participating manufactur-er can begin earning compensationin the form of recurring monthlycapacity payments simply for com-mitting capacity to the program. Inaddition, participants receive anenergy payment for their participa-tion during an actual ISO-initiatedevent. This payment reflects eitherthe going market price or a mini-mum price per megawatt-hour of theelectricity curtailed during the event.

Although a common response tothe PJM ISO’s directive to curtailenergy load is to fire up the back-upgenerators, there are increasinglymore sophisticated and environmen-tally sound ways to limit energyconsumption during peak times, aswell as all year, which go wellbeyond dimming lights and adjustingtemperature. This is where the newrequirement to work with a compet-itive energy supplier has the poten-tial to significantly alter the energylandscape. In fact, Illinois manufac-turers, in partnership with a compet-itive energy supplier, can use thedemand response paradigm to eval-uate and measure electricity usage

and load throughout the entire pro-duction process. This informationcan be used to develop a compre-hensive energy management pro-gram that is responsive to price sig-nals throughout the year. In thisrespect, the initial commitment toenroll load in the region’s demandresponse program represents onlythe first step on a path to participat-ing more fully in the restructuredenergy market.

Most manufacturing facilitiesalready have an automated manage-ment system in place to managelighting, heating, ventilation and airconditioning throughout a facilityfrom one platform. Working with acompetitive energy supplier, loadresponse metering and real-timemarket pricing can be integratedonto this existing platform. Thisadded information can be used byan energy team to better shape andcontrol usage patterns so as to takefull advantage of the opportunitiesthat exist in today’s energy market-place. These include: 1) Shaping load via control system

upgrades and retrofitting.2) Reducing load via efficiency and

optimal consumption strategies.3) Smoothing bandwidth via opti-

mizing control strategies. (See“typical load curve” chart below.)Fully integrated facilities are more

intelligent facilities capable of doingmuch more than responding tomandatory curtailment demands.Leveraging demand response to

ILLINOIS ENERGY UPDATE:Illinois lawmakers and regulators place their trust in competitive electric markets.

The recent announcement by the IllinoisCommerce Commission (ICC) that it wasdeclaring ComEd’s 100kW–400kW businesscustomer class competitive confirms the factthat lawmakers and regulators believe a com-petitive electric marketplace is the best struc-ture to serve the needs of Illinois’ businesscustomers. Pursuant to the ICC Order, all ofComEd’s approximately 18,000 medium-sized non-residential customers weredeclared competitive as of November 11,2007. These customers may continue to takeComEd’s fixed price service through May2010. Examples of customers in this groupinclude small machine shops, fast foodrestaurants and small grocery stores. Morethan 50 percent of these medium-sized cus-tomers already have chosen alternative ener-gy supply from one of 19 different suppliers.By law, all customers with peak demand from100 to 400 kilowatts (kW) may be declaredcompetitive once a minimum of 33 percent ofthis customer group is taking service from atleast three competitive suppliers.

All of ComEd’s large commercial customerswith a peak demand of 400kW or greaterwere declared competitive in August with thepassage of a settlement between Illinois utili-ties and lawmakers. More than 85 percent ofComEd’s customers in this group already arechoosing alternative suppliers. Examples ofcustomers in this group include manufactur-ers, big box stores, large grocery stores, hos-pitals, and colleges. Ameren’s large commer-cial customers with peak demand of 1MW orgreater have also been declared competitive.ComEd customers over 400kW and Amerencustomers over 1MW still on a fixed utilityelectric supply rate can stay on a fixed priceservice until May 2008, at which time they willneed to switch to a competitive electric sup-plier or receive an hourly-priced default ratefrom ComEd or Ameren. Ameren customerswith peak demand from 400kW to 1MW stillon a fixed utility supply can stay on Ameren’sfixed supply rate through May 2010.

JOIN THE IMA ENERGY PROGRAM: IMA members looking to compare

their electric supply options can go towww.newenergy.com/control and receive a free, no obligation

rate quote.

see COMPETITION page 12

COMPETITIONCont. from page 9

I f there is one thing small manu-facturing owners have in com-mon, it’s that they like to have

control of their assets. After all, it’stheir money paying the invoices andtheir name over the front door.

LeRoy Hagenbuch is no excep-tion. Hagenbuch is the co-founderand President of Philippi-Hagenbuch, Inc. Headquartered inPeoria, Illinois, Philippi-Hagenbuchis a premier supplier of off-high-way haulage systems for mining,quarry, construction, waste, andpower plant customers.

Hagenbuch is a hands-on manag-er, who is involved in everythingfrom overseeing the procurementand inventory management of theraw materials — like high-strength,tempered, carbon steel plate — tothe obtaining of more than 50 U.S.patents with corresponding foreignpatents. So when he realized thatAmeren CILCO’s bundled rate struc-ture and prices were going tochange last year, he decided to takeaction. “We looked at the debaclebrewing in Springfield and realizedwe had to do something about ourelectricity supply,” said Hagenbuch,referring to the highly politicized raterelief debate that occurred asAmeren’s 10 year rate freeze wasending. “We saw the freight trainrunning straight for the canyon withno bridge in sight.”

Hagenbuch admits that when hestarted shopping for an alternateelectric supplier he was starting fromthe beginning, “We started lookingaround in June but because we werewith the Utility for so long, we hadno idea how to go about making aneducated decision.” Hagenbuch wentto an IMA/Constellation NewEnergyPowerSeries seminar in Springfieldand sent others on his team to onein Peoria; their goals were to get abetter understanding of the facts sur-rounding Illinois’ electric marketrestructuring and identify employablestrategies for managing the compa-ny’s energy budget.

After the seminars, Hagenbuch satdown with Rick Blankenship, aConstellation NewEnergy BusinessDevelopment Manager, and theyagreed on a fixed-price contract with

a three-year term. “The fact thatConstellation NewEnergy had beenpartnering with the IMA for so manyyears showed me that they were noflash-in-the-pan,” said Hagenbuch,“and to me the IMA endorsement ofConstellation NewEnergy meant alot.” “We did look at one or twoother suppliers,” he admitted, “butwe felt the most secure working withRick and an endorsed Fortune 125market leader like ConstellationNewEnergy.”

Energy rate certainty was a topconcern for Hagenbuch when helocked in the three-year rate for the38 year old company. “With my ratesecured for three years,” he said,“the politicians and power compa-nies can do whatever they want andit won’t bother me.” When it came tosavings, Constellation NewEnergy iscurrently saving Philippi Hagenbuchapproximately $2,000 per year versusAmeren’s Basic Generation Service(BGS). “It may not sound like a lot,but if you assume just a five percentreturn on the $2,000, we would haveto sell an extra $40,000 worth ofproduct,” claims Hagenbuch.

The 60,000 square foot Philippi -Hagenbuch manufacturing facilityprocesses approximately 250 tons ofsteel per month and has a fairly evenelectricity demand. The companyusually runs single ten or elevenhour shifts, with occasional Saturdayshifts. Most of the electricity is used

by the 18 dual MIG semi-automaticwelders, the two electric arc plasmacutters, and the 250 ton and 750 tonbrake presses (a new 2,000 tonbrake press is set to be online soon).

Philippi-Hagenbuch has been anactive IMA member for over 30 yearsand Hagenbuch says his companycontinues to receive ongoing valuefrom the proactive association, espe-cially from the IMA’s SmallManufacturers’ Action Council.Hagenbuch says the group meetsfive times a year and focuses topicsand speakers on issues of impor-tance to the smaller manufacturer.“The Small Manufacturers’ ActionCouncil gives the small manufacturera voice alongside the larger firms,”says Hagenbuch. Topics range fromlabor issues to healthcare and regula-tory and legislative concerns. “Manysmall manufacturers have no ideawhat’s going on in the electric mar-ket or how to make an educatedenergy buying decision,” he says,“the IMA is the perfect place to findout what’s important so you canmake a decision and get back torunning your plant.”

If you would like to compare yourelectric supply options go towww.newenergy.com/control toreceive a free, no obligation ratequote. Or contact Denise Haggerty at312-704-8525 or denise.haggerty@constellation.com. n

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ENERGY BUDGET MANAGEMENT CASE STUDY:

Philippi-Hagenbuch, Inc.

Above: Philippi-Hagenbuch, Inc. HIVOL® Scrap Steel Rear Eject Body on a Komatsu® truck

Left: LeRoy Hagenbuch, co-founder and President of Philippi-Hagenbuch, Inc.

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bring the energy supply side of theequation into focus provides up-to-the-minute views of energy usage aswell as costs. In turn, this knowl-edge positions facility managers andenergy teams to react to changes inthe energy marketplace at any timeby shedding load and adjusting con-sumption to maximize economicefficiency. As a result, manufacturersare able to shift electricity consump-tion from periods of high prices toperiods of low prices and reduceoverall energy costs in the process.

For facilities seeking to introduceautomation systems into an existingfacility, participating in a demandresponse program represents a signif-icant return on the necessary up frontinvestments. Making the strategicdecision to direct the paymentsearned from participating in an ISO-directed demand response programinto additional energy efficiency andenergy conservation efforts con-tributes to decreasing overall energyuse. Finally, load response solutionsare particularly attractive to business-es that have already invested in intel-ligent building designs, and wish toleverage the full spectrum of theenergy chain to maximize these ener-gy investment decisions.

In today’s competitive businessenvironment, a successful manufac-turing process relies, in part, onprocuring goods at the optimumprice and time. Manufacturers knowfirst hand the importance of carefullymanaging all aspects of the supplychain. While this is possible withmany raw materials, the volatilenature of today’s energy marketplacepresents its own unique challenges.Demand response, coupled withother energy efficiency programs, hasproven to be an effective way toleverage a company’s energy invest-ments for maximum benefit.Participating in an ISO sponsored

demand response program is onemeans of turning energy use into aprofitable commodity. Equally impor-tant, demand response can be a vehi-cle through which to reduce futureenergy use which is good for thebottom line and the environment.

The timing couldn’t be better forIllinois to restructure the energy mar-ket. Introducing both a demand

response program and new competi-tive customer classes will create awide range of opportunities for man-ufacturers seeking to achieve botheconomic and environmental bene-fits. Manufacturers who successfullyleverage this new energy paradigm towork in partnership with a competi-tive energy supplier have the poten-tial to reap meaningful savings. n

COMPETITIONCont. from page 10

Constellation NewEnergy, a competitive energy supplier serving the Illinois manufacturingindustry, can work with you to enroll load in the coming demand response program. To evaluateif demand response is right for your business, answer the questions above.

ManufacturerThe Illinois RESERVE YOUR AD SPACE TODAY FOR 2008

Contact Jim Nelson, 217-522-1240, ext. 3023,or email jnelson@ima-net.org

Advertising in The Illinois Manufacturer is an effective way to reach more than 7,000Illinois business leaders and manufacturing executives.

visit http://www.ima-net.org/library/tim.cfm for ad rates and more information.

I n 1893, during the height of the IndustrialRevolution, a small, but ambitious group of Illinoismanufacturers met in a dimly lit room in theMedinah Temple on Wells Street in Chicago. Theirgoal was to determine what manufacturers could

do to influence the various laws and regulations proposedand passed in the Illinois General Assembly. The manufac-turers strongly believed in the need to organize and formone voice for manufacturing. Beginning in 1893, and con-tinuing today, 115 years later, that voice is the IMA.

Seven Illinois manufacturers were the first IMA membersin 1893. Founding member companies included AmstedIndustries, Inc., the Brunswick Corporation, CommonwealthEdison Company, Deere & Company, the Dial Corporation,Peoples Energy Services, and the Tablet & Ticket Company.Following is a brief overview and/or history of each found-ing member’s business.

Amsted Industries, ChicagoAmsted Industries is a diversified manufacturer of industri-

al components serving primarily the railroad, vehicular, andconstruction and building markets. Amsted Industries wascreated as the American Steel Foundries (ASF) on June 26,1902, with the merger of several steel companies operatingeight plants from New Jersey to Illinois.

The company’s first products ranged from 16-ouncecams to 38-ton ocean liner shaft bearings. ASF was not asteel producer, but rather a finisher of steel products. Steelentered the company’s factories as raw ingots but left asfinished products, which eventually included locomotiveand boxcar frames, couplers, and axle assemblies.

During World War I, ASF was pressed into service manu-facturing shell casings. By the end of the war, the companyhad produced more than a million of these casings.

While tied to the uncertain fortunes of the maturing rail-road industry, company leaders reasoned that, even withno orders for new railroad cars, the market for repair andreplacement was sure to be ongoing — freight car wheelswould need to be replaced continually. In 1923 alone, thecompany turned out more than 1.5 million wheels.

In 1942, American Steel Foundries’ built a war materiel plantin East Chicago that turned out, among other things, tank parts.Also that year, ASF acquired the Charles F. Elmes EngineeringWorks, a company specializing in steel engineering.

By 1945 ASF had poured 200,000 tons of cast armor — 26percent of the country’s total output during World War II. Atthe end of the war, however, the company was almost exclu-sively a producer of castings for railroad freight cars.

In an effort to diversify, ASF acquired the DiamondChain Company of Indianapolis in December of 1950.Diamond, a manufacturer of bicycle and industrial rollerchains since 1890, helped divert the company’s focus on

the railroad industry.As steam locomotives gave way to diesels, and as freight

capacities increased, a demand arose for more durable rail-road wheels. Griffin responded with a patented controlledpressure pouring method tat was capable of producingsuperhardened wheels. Unable to keep up with demand forthe wheels, Griffin constructed six wheel plants between1952 and 1963.

Feeling that the company was sufficiently diversified towarrant a new, less specific name, Lanterman hired NewYork marketing consultants Lippincott and Margulies todevelop a name that abandoned the word “steel” and“foundries.” Settling on AMS, for American Steel, and TED,for Transportation Equipment Division — the company’slargest operation — they recommended Amsted. Thechange became official on January 23, 1962.Source: International Directory of Company Histories, Vol. 7. St. James Press, 1993.

Brunswick Corporation, Lake ForestJohn Brunswick, who moved to the United States from

Switzerland at the age of 14, started the Cincinnati CarriageMaking Company in a small Cincinnati, Ohio, workshop in1845. The product line expanded beyond carriages toinclude cabinets, tables and chairs. The Company’s first bil-liards table was produced in 1845 for a successful Cincinnatimeat packer. Word-of-mouth promotion quickly broughtrequests for more tables. Brunswick boasts, “If it is wood, wecan make it, and we can make it better than anyone elsecan.” This company became the Brunswick Corporation.

In 1957, Brunswick was first listed on the Fortune 500

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see IMA HISTORY, page 14

Dustan E. McCoy, Chairman and Chief Executive Officer of Brunswick Corporation.Brunswick’s first billiards table was produced in 1845 for a successful Cincinnati meatpacker. Word-of-mouth promotion quickly brought requests for more tables.

Founding members an importantpart of Illinois’ rich history

list. The Company also established The BrunswickFoundation around that time. The Brunswick Foundationsupports causes and projects that complement the businessinterests of Brunswick Corporation and enhance the inter-ests of the Company’s employees and the communities inwhich they live and work.

In 1993, the company moved its world headquarters fromSkokie, Illinois, to Lake Forest. They celebrated 150 years inbusiness in 1995. In 2002, Brunswick opened a manufactur-ing plant in Reynosa, Mexico to build the Bayliner 175, oneof the brand’s most successful lines. Today, the plant alsomanufactures product for Bowling & Billiards.

Dustan E. McCoy has been Chairman and ChiefExecutive Officer of Brunswick Corporation sinceDecember 2005. Before that he served as President of theBrunswick Boat Group since 2000. During his tenure in thatjob, Mr. McCoy nearly doubled the size of the Boat Group,acquiring 13 boat brands and doubling sales from approxi-mately $1.3 billion in 2001 to $2.8 billion in 2005.

Under his leadership, Brunswick broadened and aug-mented its boat line-up to one of the most extensive in theindustry, offering boats for nearly every type of need andrecreation. During that time, McCoy saw to the addition ofa boat parts and accessories organization that now offerssame- or next-day delivery to virtually every dealer andmarine repair shop in North America.

Commonwealth Edison, ChicagoThe Western Edison Light Company was founded in

Chicago in 1882, three years after Thomas Edison developeda practical light bulb. In 1887, Western Edison became theChicago Edison Company and Samuel L. Insull became presi-dent of Chicago Edison in 1892. In 1897, Insull incorporatedanother electric utility, the Commonwealth Electric Light &Power Company In 1907, Insull’s two companies formallymerged to create the Commonwealth Edison Company Asmore people became connected to the electric grid, Insull’scompany, which had an exclusive franchise from the city,grew steadily. By 1920, when it used more than two milliontons of coal annually, the company’s 6,000 employees servedabout 500,000 customers; annual revenues had reached nearly$40 million. Commonwealth Edison survived the GreatDepression, and after World War II, it received a new 42-yearfranchise from the city of Chicago.

Over the next three decades, the company known as“ComEd” opened several plants around the region andbecame the largest operator of nuclear power facilities inthe United States. The company employed a workforce ofmore than 15,000 men and women in the Chicago area.With its rates subject to approval by state regulators, thecompany saw its annual revenues rise to roughly $7 billionby the late 1990s, when it had about 3.4 million customersin the northern Illinois region.

In the post–World War II period, demand for energy inthe form of gas and electric continued to soar. TheCommonwealth Edison Company took a leadership role inbecoming the first privately owned utility to operate a

nuclear power plant. In April 1960, the Dresden Stationbegan generating electricity, inaugurating a building pro-gram that would eventually make Chicago the metropolitanarea most dependent on this form of energy in the UnitedStates. In the gas business, deregulation at the national levelhas meant increased competition at the local level. Similartrends in government-business relations are opening mar-kets for electricity. At the same time, however, mountingenvironmental problems resulting from ever-increasingenergy use have engendered a new set of technologicalchallenges and political controversies.Source: Encyclopedia of Chicago,http://www.encyclopedia.chicagohistory.org

Deere & Company, MolineDeere & Company, founded in 1837 (collectively called

John Deere), has grown from a one-man blacksmith shopinto a corporation that today does business around theworld and employs approximately 47,000 people. The com-pany continues to be guided, as it has been since its begin-ning, by the core values exhibited by its founder: integrity,quality, commitment and innovation.

John Deere consists of four major business segments(agricultural equipment, commercial & consumer equip-ment, construction & forestry and credit). Those segments,along with the support operations of parts and power sys-tems, are focused on helping customers be more produc-tive as they help to improve the quality of life for peoplearound the world.

John Deere is the world’s leading manufacturer of farmequipment. The company offers a complete line of farmingservices and solutions with products primarily sold andserviced through the industry’s premier dealer network.John Deere produces and markets North America’s broadestline of lawn and garden tractors, mowers, and other out-

14

Get your free electricity quote at http://www.electricityiq.com/illinois

IMA HISTORYCont. from page 13

In sharp contrast to this issue’s cover photo, above is John Deere Harvester Works,Deere’s massive combine manufacturing facility in East Moline, Illinois. The companyrecently completed a $32 million plant reorganization that is intended to improvethe factory’s material and manufacturing flow and reduce the time it takes to pro-duce a combine by nearly 50 percent.

door power products. John Deere Landscapes provides irri-gation equipment and nursery supplies to landscape-serviceprofessionals across the United States.

The company is also the world’s leading manufacturer offorestry equipment and is a major manufacturer of con-struction equipment in North America. John Deere Credit isone of the largest equipment finance companies in theUnited States and has operations in 17 countries. It pro-vides retail, wholesale and lease financing, and offersrevolving credit and operating loans. John Deere servescustomers in more than 110 countries, always abiding byWorld Trade Organization guidelines.

Dial Corporation, MontgomeryThe Dial Corporation is a leading manufacturer of con-

sumer products in the United States, with four core brands:Dial soaps, Purex detergents, Renuzit air fresheners, andArmour Star canned meats. Dial led the U.S. antibacterial soapmarket in 1997. A company of Henkel KGaA, based in Scotts-dale, Arizona, Dial employs more than 2,300 people world-wide, and is organized into three core business units: PersonalCare, Laundry Care, and Home Care. Dial products have beenin the American marketplace for more than 130 years.

The Dial brand name was first given to a unique deodor-ant soap developed by researchers at the Chicago-based meatprocessing business of Armour & Company. Introduced in1948, Dial featured a newly developed germicide that wasbelieved to reduce up to 80 percent more of the bacteriafound on the skin than other soaps. Said to provide “Roundthe Clock Protection,” Dial was first advertised in the ChicagoTribune, on paper printed with scented ink. The innovativeadvertisement attracted a great deal of attention, and the soapachieved high sales from the onset. One Chicago store report-edly sold more than 4,000 bars in one day.

Dial soon became the leading deodorant soap in the coun-try. In 1953 the company adopted a slogan — “Aren’t youglad you use Dial? Don’t you wish everybody did?” — thatwould continue to be used into the 1990s. In 1966 Armourannounced that it would begin marketing aerosol can and roll-on deodorant products as well as shaving creams under theDial brand name. Over the next five years, the new Dial prod-ucts achieved record sales, and a shampoo was added to theDial line. In 1971 construction was completed on a new plantfor manufacturing Dial soap in Aurora, Illinois.Source: International Directory of Company Histories, Vol. 23. St. James Press, 1998.

Peoples Gas & North Shore Gas, ChicagoFor more than 150 years, Peoples Gas and North Shore

Gas, the natural gas delivery companies for Chicagoland,have served the energy needs of more than one million res-idential, commercial and industrial customers in Chicagoand 54 communities in Northeastern Illinois.

The companies are subsidiaries of Chicago basedIntegrys Energy Group, an energy holding company withutilities in Illinois, Wisconsin, Michigan and Minnesota anda non-regulated energy marketing business that sells naturalgas and power to more than 125,000 customers in 23 statesand three Canadian provinces.

Peoples believes that the collective efforts of businessesand residents will help Chicago achieve its goal to be thegreenest city in the nation. Only solar, wind and nuclearpower produce fewer greenhouse gas emissions than natu-ral gas. The companies encourage energy efficiency as a

way to stem the effects of climate change. Peoples and North Shore Gas have adopted innovative

green technology by using biodiesel fuels in company vehi-cles, hybrid vehicles to read customers’ meters and investingmore than $1 billion since 1999 to continually maintain andupgrade their 6,000 mile natural gas delivery system.

Employees are the company’s most valuable resource andthe company is proud of their commitment to equal opportu-nity in hiring, developing and promoting employees and inour relationships in business and the communities we serve. I

The companies value their relationship with customersand are committed to the communities they serve. Peoplesand North Shore Gas employees give 5,000 hours annuallyto volunteer initiatives initiated by the company. One suchproject is Team H.E.A.T. (Home Energy Assistance Together)during which employees weatherize homes of low and fixedincome residents to help them better manage their energyusage and contribute to protecting the environment.

Tablet & Ticket Company, West ChicagoBound for Chicago, Henry Willson left Toronto,

Canada in 1870. Shortly after arriving and opening shopas the Tablet & Ticket Company, everything was lost inthe Great Chicago fire in 1871. The company’s early yearswere in the printing field, including dry good/pin tickets,labels and paper tablets. In 1895, along with the high risebuildings, came the need for building lobby directories.Directories were typically leased, with service contracts inplace to provide replacement name strips. Tablet & Ticketstill services directory locations dating back from the late1890’s.

Tablet & Ticket had the first patents for strip type build-ing directories. Early units were found in the Manadnock,Reliance, Tribune Tower, Wrigley, Empire State buildingsand thousands of others. By 1928, over 20,000 directorieswere in place. The first illuminated directory also camefrom Tablet & Ticket in 1940.

Today, Tablet & Ticket is still family owned, and com-mitted to remaining the leader for custom directories, dis-play cases and other products. n

15

,ny

Peoples’ employees and families volunteered for the fourth annual Team H.E.A.T.(Home Energy Assistance Together) event, during which they weatherized homesof low and fixed income residents to help them better manage their energy usageand contribute to protecting the environment.

he Illinois manufacturer’s pur-chase credit (MPC) is a valu-able tax benefit that Illinoismanufacturers and graphic artsproducers (hereinafter referredto as “manufacturers”) canearn from their purchases ofsales tax-exempt machineryand equipment; then use topay Illinois use taxes on their

taxable purchases of “production related tangible per-sonal property,” such as research and developmentequipment. A manufacturer with expiring MPC (orone that failed to timely file the annual MPC reportfor the year in which it paid Illinois use tax on pro-duction related tangible personal property) shouldconsider applying those MPC retroactively to recovera refund of the Illinois use taxes that the manufactur-er paid to suppliers, or the Illinois Department ofRevenue, on its prior purchases of qualifying produc-tion related tangible personal property. Correctly fol-lowing these refund procedures will allow the manu-facturer to salvage the value of its MPC.

Overview of MPC rulesSection 3-85 of the Illinois Use Tax Act (the “MPC

Statute”) provides that purchasers of sales and usetax-exempt manufacturing or graphic arts machineryand equipment earn MPC in an amount equal to 50percent of the Illinois state use tax that the purchas-er would have had to pay (at a rate of 6.25 percent)on its purchase of such equipment if the tax exemp-tion had not applied. Unused MPC generally expireon December 31st of the second year following theyear in which the MPC was earned. As a result ofthe short-lived repeal of the Illinois MPC program in2003, MPC earned during tax periods through June30, 2003 had to be used by October 1, 2003.

MPC are used to pay the 6.25 percent Illinoisstate use tax liability (or service use tax liability) thatthe manufacturer owes with respect to its purchasesof qualifying production related tangible personalproperty. “Production related tangible personal prop-erty” is defined in the MPC Statute and RegulationSection 130.331 (the “MPC Regulation”) to include(a) tangible personal property used or consumed inresearch and development activities, whether or notthose activities occur at a manufacturing or graphicarts production facility, (b) tangible personal proper-ty purchased for incorporation into real estate withina manufacturing or graphic arts production facility;(c) fuels, coolants, solvents, oils, lubricants, cleaners,adhesives and other supplies and consumables used

16

Illinois Manufacturer’s Purchase Creditpresents refund opportunitiesBy John A. Biek of Neal, Gerber & Eisenberg LLP

T

in a manufacturing or graphic artsproduction facility; (d) hand tools,protective apparel and fire safetyequipment used or consumed in amanufacturing or graphic arts pro-duction facility and (e) tangible per-sonal property used or consumed ina manufacturing or graphic arts pro-duction facility for purposes of pre-production or post-production (orpre-press or post-press) materialhandling, receiving, quality control,inventory control, storage, stagingand packing for shipping or trans-portation.

The concept of “production relat-ed tangible personal property” doeshave its limits, however, and the fol-lowing items are not considered tobe production related: office sup-plies, computers, desks, copiers andequipment used for sales, purchas-ing, accounting, fiscal management,marketing and personnel recruitmentor selection activities, even if thoseactivities take place within the man-ufacturing or graphic arts productionfacility. Production related tangiblepersonal property also does notinclude trucks, trailers, motor vehi-cles, aircraft and watercraft or tangi-ble personal property used or con-sumed in landscaping and for deco-rative or aesthetic purposes.

One of the conditions for earningMPC is that the manufacturer mustreport the amount of MPC earned tothe Department on a Form ST-16filed no later than June 30 followingthe calendar year in which the MPCwas earned. The Form ST-16 cap-tures the relevant informationregarding the manufacturer’s pur-chases of qualifying tax-exemptmachinery and equipment that gaverise to the MPC, as well as the totalamount of Illinois use taxes thatwould have been payable on thosepurchase transactions if they had notbeen tax-exempt. This June 30 dead-

line for filing the Form ST-16 isabsolute (i.e., it cannot be extendedby a waiver of the statute of limita-tions for the calendar year coveredby the Form ST-16).

The manufacturer generally usesits MPC by presenting certification ofthe available MPC amount to its sup-pliers, on a Form ST-16-C or in themanufacturer’s purchase order form,as payment of the Illinois use taxesthat the manufacturer owes on itspurchase of the production relatedtangible personal property for thesupplier. The manufacturer is alsorequired to report its use of the MPCon a Form ST-17 filed by June 30

following the calendar year in whichthe MPC was used. The Form ST-17sets forth the relevant informationregarding the manufacturer’s pur-chases of qualifying productionrelated tangible personal property towhich the MPC was applied and theamount of Illinois use tax that waspaid by utilizing the MPC.

The failure to timely file the FormST-16 or Form ST-17 can be fatal tothe ability of the manufacturer toearn or use the MPC in that calendaryear, as the case may be. The MPCStatute and MPC Regulation express-ly state that “a purchaser that fails tofile an annual Report ofManufacturer’s Purchase Credit

Earned or an annual Report ofManufacturer’s Purchased CreditUsed by the last day of the sixthmonth following the end of the cal-endar year shall forfeit allManufacturer’s Purchase Credit forthat calendar year unless it establish-es that its failure to file was due toreasonable cause.” Neither the statutenor the regulation defines what typeof fact pattern would establish rea-sonable cause for the failure to time-ly file a Form ST-16 or Form ST-17,but clearly this is not an argumentthat a manufacturer or graphic artsproducer wants to have to make.Illinois Department of Revenue audi-tors have sometimes advised manu-facturers that do not know howmuch MPC they earned or used in aparticular calendar year to file a“zero” Form ST-16 or Form ST-17 bythe June 30 deadline so that they canlater amend the MPC report to pro-vide the correct amounts of MPCearned or used during the calendaryear covered by the report.

Refund opportunities from retroactive use of MPC

While many manufacturers areable to make use of their MPC asthey earn them, it is not uncommonfor manufacturers to pay Illinois usetaxes on their purchases of qualify-ing production related tangible per-sonal property to suppliers, ordirectly to the Illinois Department ofRevenue through a direct pay per-mit, thereby postponing the use ofthe MPC for another day. If themanufacturer stops purchasing pro-duction related tangible personalproperty, for example, because itsells the business, the manufacturermay need to go back to its suppliersor to the Department to seek arefund of the Illinois use taxes themanufacturer paid on prior purchas-

see OPPORTUNITIES, page 18

17

facturer’s Purchase Creditnd opportunities

LLP

The Illinois Manufacturer is underwritten by Constellation NewEnergy

The Department’s auditors

may be unfamiliar with these

MPC refund procedures

and reject the retroactive

MPC refund claim as

untimely filed.

es of production related tangiblepersonal property. The same situa-tion could arise if the manufacturerdid not file a Form ST-17 in a timelymanner for the calendar year inwhich the qualifying productionrelated tangible personal propertywas purchased. Fortunately, theMPC Regulation provides two MPCrefund procedures that can providea solution to these types of predica-ments.

First, the MPC Regulation allowsthe manufacturer to go back to itssupplier and request a refund of theIllinois use taxes that the manufac-turer paid with respect to prior pur-chases of production related tangiblepersonal property made during taxperiods that are still open under theapplicable Illinois limitations periodfor refund claims. The MPCRegulation does not require the sup-

plier to accept such retroactive MPCcertifications from the manufacturer,but if the supplier does agree torefund the Illinois use tax to themanufacturer, the supplier can claimcredit for the refund payment byreporting the MPC amount on line16a of the supplier’s current Illinoissales/use tax return.

Second, the MPC Regulation pro-vides that “manufacturers who self-assess Use Tax or Service Use Taxdirectly to the Department are notprohibited from reporting the use ofManufacturer’s Purchase Credit(MPC) after the qualifying purchaseof production related tangible per-sonal property when those manufac-turers or graphic arts producers havealready paid the appropriate amountof Use Tax or Service Use Taxdirectly to the Department.” In orderto claim a refund of the Illinois usetax from the Department, the manu-facturer must either (a) file anamended sales/use tax return orclaim for credit with the Departmentfor the open month that the produc-

tion related tangible personal prop-erty was purchased or (b) report theretroactive use of the MPC for theopen month on line 16a of the man-ufacturer’s current Illinois sales/usetax return. The manufacturer is alsorequired to report the retroactive useof the MPC on a timely filed FormST-17 for the calendar year in whichthe manufacturer decided to applythe MPC retroactively to the priorpurchase of qualifying productionrelated tangible personal property.

Notwithstanding what some ofthe Department’s auditors apparentlybelieve, the MPC Regulation pro-vides an example confirming thatthe Form ST-17 on which theretroactive use of the MPC is report-ed does not have to be filed by June30 following the calendar year inwhich the prior purchase of thequalifying production related tangi-ble personal property was made.The Illinois Department ofRevenue’s 2002 Practitioners’Questions and Answers (which areavailable on the Department’s web-

18

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19

site) provided a similar example in which a manufacturerwas able to provide MPC certification in January 2002retroactively with respect to an April 2000 purchase of pro-duction related tangible personal property.

ObservationsRetroactive use of MPC probably never will be a widely

adopted practice by Illinois manufacturers. It is usually easi-er for the manufacturer to utilize the MPC by presentingMPC certification to its supplier at the time the manufacturerpurchases production related tangible personal property,thereby reducing the amount of Illinois use tax that themanufacturer pays in the first place. Manufacturers shouldbe prepared, however, to make retroactive use of their MPCto obtain a refund of Illinois use taxes previously paid onpurchases of qualifying production related tangible personalproperty when it is the most convenient (or only) way touse expiring MPC or MPC that was not reported on a timelyfiled Form ST-17 for the calendar year in which the priorpurchases of production related tangible personal propertywere made. The Department’s auditors may be unfamiliarwith these MPC refund procedures and reject the retroactiveMPC refund claim as untimely filed. With the proper expla-nation, however, the manufacturer should be able to obtainpayment of its MPC refund claim, thereby deriving theintended benefit of the Illinois MPC program. n

John A. Biek, a partner in Chicago-based law firm Neal,Gerber & Eisenberg LLP’s Tax Practice Group, can bereached at 312-269-8485; or via e-mail atjbiek@ngelaw.com. Neal Gerber Eisenberg has been a mem-ber of the Illinois Manufacturers’ Association since 2005.

Manufacturing group,CPS school win businesspartnership award

Dan Swinney, executive directorof the Chicago ManufacturingRenaissance Council, was chosen asone of three individuals nationwideto receive the National CareerAcademy Coalition’s award for creat-ing unique business partnerships toimprove education. Swinney waspresented with the award November5th at the NCAC’s 11th annual con-vention held in St. Louis.

“As the project manager for AustinPolytech, Dan has assembled a stellarcoalition of business, labor and gov-ernment partners to make this schoola success,” said Sue Klonsky, a mem-ber of Austin Polytech’s Design Team.

Austin Polytech opened inSeptember with a freshmen class of145 students in the former AustinHigh School building on Chicago’sWest Side. The school, which has acurriculum focused on engineeringand high-skilled manufacturing, haspartnered with 26 small- to medium-sized manufacturing firms to providementoring, internships and careeropportunities for its students.

Swinney also founded the Centerfor Labor and Community Researchin Chicago in 1982. CLCR’s ground-breaking study in 2001 in conjunc-tion with the Chicago Federation ofLabor called “Creating a Manufactur-ing Career Path System in CookCounty” was the impetus for creat-ing the Chicago ManufacturingRenaissance Council in 2005.

The CMRC is a coalition of busi-ness, labor, government and educa-tion leaders who have collaboratedto design a curriculum to developtomorrow’s manufacturing leaders.The former chairman of the IMABoard, Glen Johnson of OakleyMillworks, is co-chair of the Council.

n n n

20

Member News

From left: John Carman, Sr., CEO of Stand Fast Packaging Products, Inc., with his sons: John Jr.,Operations Team Leader; Scott, Sales Team Leader; Jay, President and Keith, Marketing Team Leader.

Stand Fast Packaging Products, Inc. subject of Chicago Tribune article on team-based leadership

In the September 24th edition of the Chicago Tribune, a profile of IMA mem-ber Stand Fast Packaging Products, Inc., an Addison-based boxmaker describeshow the company shifted their management philosophy from the existing top-down management style to one of team leadership.

Chief Executive John Carman, Sr., the entrepreneur who started the company witha partner and a $50 band saw in 1967, runs the company along with his four sons.

Following a five-day retreat facilitated by Architecture for Excellence, Inc., aPalm Bay, Florida-based consulting firm, John Carman, Jr., decided it was timeto try the team-leadership method.

Success first came when the problem of managing inventory was put beforethe employees responsible for the job. The group emerged with a solution afterfour meetings, resulting in a reduction of $100,000 in stored inventory from atotal of about $560,000.

A similar approach was used when the company decided to create a thirdshift, something that had been discussed previously. The leadership team inter-viewed candidates interested in being the third-shift leader, then let the leaderput together a team. They worked together with leaders of the other two shifts,talked to workers, and put a third shift in place within two weeks.

Over time, the brothers, Jay, John Jr., Scott and Keith, modified theirapproach slightly, introducing their own rapid-improvement process to encour-age problem-solving from those closest to the issue. The company now has 18teams, each with their own mission and specific monthly objectives in five cate-gories: profit growth, new products, quality improvement, organizational effec-tiveness and customer satisfaction.

John Sr., still occupies the corner office, but now defers more to his sons.“It’s a little hard. I’ve had to delegate authority,” he said. “Before, I was callingall the shots. Now, I’m spreading it around. It takes a little getting used to.”

For John Jr., who oversees production, empowering workers to solve prob-lems and run the units as if they were their own has been the differencebetween night and day. Ultimately, the transition to team-based leadership hashelped the company better handle its growing business.

n n n

“Manufacturers are finding it increasingly difficult to maintain or increase profits . . .” according to an article on manufacturing.net.

The IMA can help through the Recycling Expansion and Modernization (REM) grant which covers 75% of the cost of a Solid Waste Assessment. Witha nominal ($5,000 maximum) cash match, your company can learn to reduce or eliminate solid waste streams and save thousands of dollars.

For more information, contact Judy Parker, IMA Director of Training, 217-522-1240, ext. 3036, or email jparker@ima-net.org.

IMA Recycling Expansion and Modernization (REM) grant funds still available . . .

21

Motorola names formerU.S. DEA AdministratorKaren P. Tandy to leadcompany’s GlobalGovernment Relations &Public Policy Organization

Motorola, Inc. recently announcedthat Karen P. Tandy, former head ofUnited States Drug EnforcementAdministration (DEA), has beennamed senior vice president ofMotorola’s Global GovernmentRelations & Public Policy Division.Ms. Tandy will serve as Motorola’stop public policy spokesperson onissues related to global telecom poli-cy, trade, regulation, spectrum allo-cation, and country relations.

Ms. Tandy will be directly respon-sible for development and executionof Motorola’s global policy initiatives.Ms. Tandy’s responsibilities willinclude creating business enablingstrategies in priority countries, ensur-ing that country-specific governancerequirements are met and operationsare in compliance with local laws;overseeing lobbying efforts in sup-port of Motorola’s government cus-tomers; and influencing regulatorsworldwide on a range of issues.

“Karen’s substantial internationalrelations and government affairsexperience as well as her policyunderstanding make her an idealand logical fit to lead our govern-ment and policy team,” said GeneDelaney, president of Governmentand Public Safety for Motorola’sEnterprise Mobility business.

Ms. Tandy most recently served asAdministrator of the Drug Enforce-ment Administration (DEA), a $2.4billion agency with approximately11,000 employees across the U.S. andin 86 foreign offices. During Ms.Tandy’s tenure, she met with manyforeign heads of state, and expandedDEA’s foreign presence, entering thefirst intelligence sharing agreementswith China and Russia.

IMA member Motorola is knownaround the world for innovation andleadership in wireless and broad-band communications.

EPA recognizes SloanValve Company andJohnson & Johnson as Green PowerPurchasing Leaders

On October 22nd, EPA recog-nized 17 leading organizations thatare taking voluntary steps to addressclimate change by purchasing greenpower and helping advance thedevelopment of the nation’s greenpower market.

“America is shifting to a ‘greenculture’, with more and more busi-nesses understanding that environ-mental responsibility is everyone’sresponsibility,” said Marcus Peacock,EPA’s deputy administrator. “EPAcommends the Green PowerLeadership Award winners for mak-ing a long-term commitment to pro-tecting the environment by purchas-ing green power.”

The combined commitments ofthese leading organizations amountto nearly four billion kilowatt-hoursof green power annually, which isthe equivalent amount of electricityneeded to power nearly 250,000average American households eachyear. EPA also estimates that the com-bined environmental impact of theseleading purchasers will avoid theequivalent amount of CO2 emissionsof nearly 450,000 vehicles each year.

This year’s Green PowerLeadership Awards included IMAmember Sloan Valve Company ofFranklin Park in the Green PowerPurchasing category. An IMA mem-ber since 1980, company presidentChuck Allen also served on the IMAboard of directors for 12 years.

IMA member Johnson & Johnsonwas also recognized as a “GreenPower Partner of the Year.”

Green power is generated fromrenewable resources such as solar,wind, geothermal, biogas, biomassand low-impact hydro. Green powersources produce electricity with anenvironmental profile superior toconventional power technologiesand produce no human-causedgreenhouse gas emissions. Purchases

of green power also help acceleratethe development of new renewableenergy capacity nationwide.

n n n

IMA holds legislativeroundtables

Three Legislative Roundtableswere held this fall by the IllinoisManufacturers’ Association. IMAmember companies Motorola andCaterpillar opened their doors fordozens of manufacturers to interactwith state policymakers.

Roundtable events have beenheld for several years around thestate and give participants theopportunity to exchange ideas andconcerns on how statehouse actionsaffect Illinois’ manufacturing envi-ronment. Often, these discussionslead to innovative proposals that aresubsequently introduced as legisla-tion in the General Assembly.

If your company would like tohost a Legislative Roundtable, contactthe IMA’s Mark Denzler, Vice Presi-dent of Government Affairs and Mem-bership at 800-875-4462, ext. 3008.

n n n

Bison Gear & EngineeringCorporation’s SkilledWorkforce ProgramClasses begin for Manufacturing Skill Standards Council training at College of DuPage

Bison has collaborated with ateam of local leaders along with theCollege of DuPage, to develop theSkilled Workforce Initiative, to assist

Member News

(continued on page 24)

Get your free electricity quote at http://www.electricityiq.com/illinois

IMA’s Mark Denzler (left), Rep. Bob Flider(D-Mt. Zion-center) and Rob Carney,Manager of Illinois Governmental Affairs forCaterpillar, discuss legislative business.

222222

Kevin Callisjoined StateFarm in 1992as an agent inSpringfield,Illinois. Hewas namedagency fieldconsultantthere in 1997,

and became agency administrativeassistant in the enterprise technologyoffice at corporate headquarters inMay, 2001. In December, 2001, hewas promoted to assistant vice presi-dent, public affairs, then to executiveassistant to the Chairman’s Council in2006, and to Vice President—Operations in 2007.

He is an active supporter of hiscommunity and charitable organiza-tions, and currently serves on threeBoards of Directors. Board positionsin addition to the IMA include theState Farm Classic, an LPGA tourna-ment supporting charities throughoutcentral Illinois; the Abraham LincolnPresidential Library Foundation andSt. Jude Hospital–Midwest Affiliate.

Prior to joining State Farm, Calliswas active in Illinois politics as fieldrepresentative for former GovernorJames R. Thompson. Other pastpositions included public informa-tion officer for the IllinoisDepartment of Natural Resources,field representative for the GeorgeBush, Sr. for President campaign,assistant to the director of theIllinois Department of NaturalResources and assistant to theIllinois Secretary of Transportation.

As head ofRSM McGlad-rey’s Manufac-turing &WholesaleDistributionpractice in theGreat Lakesbusiness unit,Karen Kurek

oversees more than 200 professionalsproviding audit, tax and consultingservices to over 1,500 manufacturingand wholesale distribution clients inIllinois, Indiana and Wisconsin.

She is a Certified Public Account-ant, a member of the AmericanInstitute of Certified Public Account-ants (AICPA) and a member of theIllinois CPA Society. Kurek also serveson the Board of Advisors of the Uni-versity of Southern California’s Leven-thal School of Accounting. A graduateof the University of Illinois, Kurekholds a Bachelor of Science degreewith highest distinction in Accounting.

She recently received the 2005U.S. Small Business Administration“Women in Business Champion of theYear” award for the state of Illinoisand the Midwest Region. In 2005, shewas named as one of the “InfluentialWomen in Business,” by the BusinessLedger; and one of five “Women toWatch” by the Illinois CPA Society.

David J. Rintoul is GeneralManager of Granite City Works,United States Steel Corporation’sintegrated steelmaking operation inGranite City, Illinois.

Rintoul began his steelmakingcareer in 1979 in plate and striprolling and finishing operations atAlgoma Steel Corporation in SaultSte. Marie, Ontario, where he rose tothe position of superintendent. In1993, he joined Rouge SteelCorporation in Dearborn, Michigan,as a superintendent. Rintoul movedto Acme Steel Company inRiverdale, Illinois, in 1995 as a man-ager at the company’s Compact StripPlant. He became General Manager-Compact Strip Plant in 1997 andGeneral Manager-SteelManufacturing in 1999, a position heheld until being named VicePresident-Operations at North StarBlueScope Steel in 2001. In 2005,Rintoul became Vice President-Operations at BlueScope’s ButlerManufacturing Company in KansasCity, Missouri, his last positionbefore joining U. S. Steel Corpora-tion. (photo not available)

IMA Board seats five new membersT he IMA Board of Directors elected five new members at the September 14th Board meeting in Oak Brook. Kevin Callis,

Karen Kurek, David J. Rintoul, Karla Olson Teasley and Mark D. Weber will serve on the IMA Board for three years or less.Here is a brief introduction.

Kevin Callis, Vice President—Operations, State Farm InsuranceGreat Lakes Zone

David J. Rintoul, General ManagerGranite City Works, United StatesSteel Corporation

Karen Kurek, Managing DirectorRSM McGladrey

Member News

see IMA BOARD page 24

Constellation NewEnergy — The leading electricity supplier for businesses in Illinois and throughout North America

Stefany Henson is editor of The Illinois Manufacturer magazine. She may be reached at 217-522-1240, Ext. 3017 or email shenson@ima-net.org.

Send the IMA your company news so that we may share it with other IMA members. Email:shenson@ima-net.org, or mail to Editor, TIM, 220 East Adams St., Springfield, IL 62701

23

Michelle and her husband,Dan, planned to attend hercompany’s holiday party. It

was her first year attending, andthey were looking forward to mak-ing the best impression.Unfortunately, they made some seri-ous mistakes. First, they forgot toRSVP to the party. Michelle’s region-al manager, Stephen, the host wasforced to bring in additional seatingto accommodate them. In addition,Michelle and Dan brought theirhosts a gift of wine. However, theydidn’t realize that Stephen and hiswife abstained due to their religiousbeliefs. At the end of the evening,Dan ended up having too much todrink, and accidentally spilled redwine on the carpet. Instead of get-ting off on the right foot, these mis-takes damaged Michelle’s reputationback at the office.

The key to success when attend-ing any office function, event or partyis preparation and planning. Thismaybe the ideal opportunity to meetsomeone who can influence yourcareer, so take advantage. Here aresome etiquette guidelines to follow:

Attending office parties: Yes, youshould attend. At least make anappearance and find the host orhostess as soon as possible toextend your thanks for the invita-tion. Don’t make an obvious exit,but try and work the room as muchas possible before you leave. Nevertell anyone you’re leaving becauseyou have another party to attend. Itwill give the impression that theother party is better and you areonly here because you need tomake an appearance.

The best rule for attending is toarrive on time or within 15 minutesof the designated start time. Yourhost may have announcements orfood presentations scheduledthroughout the evening, which

would be geared around the startingand ending time of the event. Youdon’t have to be the first to arriveand you don’t want to be the last toleave. Gauge your time to fit theactivities and the size of the crowd.If the crowd is larger, it is much eas-ier to depart without notice. But if itis an intimate dinner or party, youmay be required to remain for mostof the evening.

Don’t talk only about business. Ifyou are at a neighbor’s home fortheir annual pool soiree, don’t comewith a car full of portfolios orbrochures. Parties are networking

opportunities, so leave it at that. Youcan approach someone to set up afuture meeting and exchange busi-ness cards, but leave the brochuresand proposals at the office. Beforethe party, prepare by reading thenewspaper or watching the news. Befamiliar with the events calendar ofyour city. You’ll always have some-thing to talk about if you stay in-the-know. If you’re on the shy side, justremember to ask questions. Peoplelove to answer questions about theirfamilies, work, hobbies, etc.

When you attend a function in a

Be on your best holiday behavior

Human Resources Roundup

COLLEEN RICKENBACHER

Colleen Rickenbacher, CMP, CSEP, CPC is a business etiquette expert and author of “Be on Your Best Business Behavior,” and the forthcom-ing, “Be on Your Best Cultural Behavior.” She helps clients stand out by improving manners, image and communication skills. With her pastexperience in event planning, as well as her skills in etiquette, Colleen helps companies such as FedEx, Microsoft and Marriott polish theirimage for increased profits. For information on her speaking, training or books, visit: www.colleenrickenbacher.com or call: 214-341-1677.

see BEST BEHAVIOR page 26

Karla OlsonTeasley isPresident ofIllinoisAmericanWater. IllinoisAmericanWater pro-vides reliable,high quality

water and/or wastewater services tomore than one million people in 125communities across Illinois. In thisrole, Teasley reinforces and strength-ens customer, regulatory and localgovernment relationships, drivesoperational and financial results, andis the principal external contact forAmerican Water in Illinois.

Prior to joining American Water,Teasley was Vice President ofLouisville Water Company in

Kentucky. In this role, Teasley’sresponsibilities included customercontact functions, business develop-ment, capital budget and infrastruc-ture planning, and pipeline designand construction.

Earlier, Teasley served as VicePresident and General Counsel ofFlorida Water Services (aka SouthernStates Utilities, Inc.), providing in-house legal services with heavyinvolvement in regulatory affairs andbusiness development activities.Teasley serves on the board of theLeadership Council of SouthwesternIllinois, and is a member of theIllinois Business Roundtable, theAmerican Water Works Association(Illinois Section) and the AmericanBar Association.

Mark D.Weber isPresident ofthe Environ-mentalProductsGroup forFederal SignalCorporation.He is respon-

sible for leading four NorthAmerican divisions and two interna-tional divisions with over $410 mil-lion in revenues. Prior to joiningFederal Signal in 1996, Weber servedas Director of Advanced MidrangeManufacturing at Cummins EngineCompany.

Weber is a member of the Boardfor the Environmental Research andEducation Foundation, an organiza-tion committed to building a bridgewith those interested in advancingsolid waste management practices.He is also a member of the UnitedWay’s Manufacturing Committee. n

Karla Olson Teasley, PresidentIllinois American Water

Mark D. Weber, PresidentEnvironmental Products Group,Federal Signal Corporation

24

Constellation NewEnergy — Serving over 14,000 commercial & industrial customers

Member News

IMA BOARDCont. from page 22

with the shortage of finding quali-fied personnel in the manufacturingindustry. The benefit of the pro-gram is that it offers a solution andhelps prepare entry level workers tobe effective in their positions byacquiring the skill sets necessary.

The classes meet weekly for 12weeks and the curriculum includes avariety of skills, such as, applied mathand manufacturing practices, blue-print reading, hand tool usage, andemployment, life and safety skills.

The program runs from October29 to December 19, 2007. Upon suc-cessful completion students receivea portable certificate from MSSC–Manufacturing Skill Standard Councilreflecting their skills and will beinterviewed by partnered manufac-turing companies for employment.

Founded in 1960, IMA memberBison Gear & Engineering Corp.designs and manufactures fractionalhorsepower electric motors, gearmotors and gear reducers used in

industrial and commercial OEMapplications worldwide. Bison’sstrong engineering tradition anddesigns, based on RobusticityTM prin-ciples, offer products with up totwice as much torque in the samepackage size as competitors. Bisonemployees over 220 associates in itsSt. Charles, Illinois facility whichproduces gear motors and reducersin parallel shaft and right angle con-figurations, as well as AC and DCmotors, for applications wheredependability and long lifetimes areimportant.

n n n

George Vincent appointedto Nanophase Board

Nanophase Technologies , a tech-nology leader in nanomaterials andadvanced nanoengineered products,announced that George Vincent hasbeen appointed as an independentdirector to Nanophase’s board effec-

tive November 6, 2007. Mr. Vincent is Chairman and

Commercial Development Officer ofThe HallStar Company, the parentcompany of several businessesinvolved with chemical innovations,manufacturing and distribution (herecently stepped down after servingas CEO for twenty years). TheCompany, headquartered in Chicago,specializes in material science andmarkets its products worldwide. Mr.Vincent currently serves as BoardChairman of the Illinois Manufac-turers’ Association. In the recent past,he served as a Director of theAmerican Chemistry Council. He isalso a past President of the ChemicalEducational Foundation and a pastChairman of the Chemical IndustryCouncil of Illinois. Mr. Vincent hasworked in the chemical industry forthirty-five years with General ElectricCompany, FMC Corporation and TheHallStar Company.

n n n

25

sation Act (1911), the proposedDeep Water Act (1929), and passageof tort reform and the Statute ofRepose (1995). Other issues such astaxes and fees, energy, and environ-mental regulations are dealt with onalmost a weekly basis.

While the IMA has built a stronglegacy of helping manufacturingcompanies for more than a century,the hostile actions undertaken byGovernor Rod Blagojevich in thepast five years threaten the viabilityand survival of industry in Illinois.

At a time of increased competi-tion in the United States and aroundthe world, Governor RodBlagojevich proposed a $9 billiongross receipts tax — the singlelargest tax increase in Illinois history— to fund his massive expansion ofstate government. With a tax of 1.85percent on every stage of produc-tion, the manufacturing sector wouldhave been devastated.

At a time when the state faced anunprecedented $42 billion long-termdeficit and the IMA called for fiscal

restraint and cuts to balance thebudget, the Governor proposed anew three percent payroll tax toraise billions of dollars for a univer-sal health care program — a pro-gram that is entirely too big and tooexpensive.

Preaching “reform and renewal,”Governor Blagojevich strode intooffice blasting the ethical lapses ofhis predecessor. However, to date,Governor Blagojevich has refused tosupport ethics reform that wouldban “pay-to-play” politics and hisoffice is reportedly the subject ofnumerous federal investigations.

Even the Chicago Tribune, in itsOctober 28 editorial, noted that “his(Blagojevich) is a legacy of federaland state investigations of allegedcronyism and corruption in thesteering of pension fund investmentsto political donors, in the subversionof state hiring laws, in the awardingof state contracts, in matters as per-sonal as that mysterious $1,500check made out to the governor’sthen-seven-year-old daughter by afriend whose wife had recently beenawarded a state job.”

Manufacturing is at a crossroadsin Illinois, divided by those that want

to restore the luster to manufacturingand the state’s chief executive officer,who seems fixated on destroying thestate’s business sector and saddlingour children and grandchildren withmountains of debt. Despite the lossof 200,000 jobs in the past decade,including more than 55,000 duringBlagojevich’s tenure, manufacturingcontinues to employ 675,000 workersand contributes 13 percent of thestate’s Gross Domestic Product. Itremains a backbone of the Illinoiseconomy.

Fortunately, the IMA and themanufacturing community havebeen successful in defeating manyof Governor Blagojevich’s anti-busi-ness proposals. As the legislativebattle rages in Springfield, the IMAcontinues its tradition of excellence.We’re standing tall, thanks to thethousands of manufacturing compa-nies over the past century that havefaced the challenges and respondedto adversity. As we celebrate our115th anniversary in 2008, I have nodoubt that the IMA’s tradition andlegacy will continue to grow.

Thank you for your strong andongoing involvement in the IMA . . .here’s to another 115 years! n

LEGACIESCont. from page 6

efit related to an uncertain tax positionin the financial statements unless it isMLTN (more than 50 percent proba-ble) the position will be sustainedbased solely on its technical merits.

Step two: measurement. The taxbenefit of a qualifying position ismeasured as the largest amount oftax benefit that is more than 50 per-cent likely to be realized upon ulti-mate settlement with a taxing author-ity. This poses significant challengesin evaluating tax positions in variousstate, local and foreign jurisdictions.

Consider the example of“Company A.” Company A takes a$100 research-and-development cred-it on its federal income tax returnand reduces its taxes paid for theyear by $100. Management believesits research-and-development expen-ditures meet all the criteria to qualifyfor the entire credit. However, basedon past history of similar tax credits,the Company’s tax officials believethere’s just a 40 percent likelihoodthat, if the company was audited, theIRS would allow the entire credit.They believe there is at least a 51

percent likelihood the IRS wouldallow $80 of that credit. FIN 48would allow the Company to recog-nize that $80 tax benefit in its finan-cial statements. The remaining $20would appear as a liability in theCompany’s financial statements.

Prior to FIN 48, Company A offi-cials might have arrived at their $80prediction (or some other amount)using various thresholds of probabilitythey deemed appropriate. Likewise,they might have reported the $20 lia-bility in various ways within the com-pany’s financial statements. FIN 48establishes a uniform approach.

FIN 48 does not require compa-nies to restate previously issuedfinancial statements for liabilityadjustments required because of itsadoption. Instead, the cumulativeeffect of the change may be present-ed as an adjustment to the compa-ny’s beginning retained earnings inthe year of adoption.Choosing a partner

While some midsized companieswill have the time and internalresources to comply with FIN 48,others will need to seek outsideassistance. Publicly traded compa-nies needing outside help must beaware of SEC independence rules

limiting the assistance the company’sindependent auditors can provide.

If you choose to select an exter-nal partner to help you meet FIN 48requirements, experts offer the fol-lowing tips.• Start your search as early as pos-

sible. Many other companies willbe seeking similar help to meetthe same tight deadlines.

• Ensure your partner is well-versed in GAAP as well as in thetax laws and tax case history ofeach state and country whereyour company does business.

• Select a partner who can facili-tate communication betweenyour auditors, tax professionalsand other external parties. Aswith any new ruling, it will likelytake some time to determine allthe documentation requirementsand ensure best practices. Themore all the players communi-cate up front, the less likelihoodthere is of unpleasant surprisesdown the line.FIN 48 is applicable to all entities

whether they are privately owned,publicly traded or not-for-profitorganizations. Be certain that yourorganization can comply with thisfar-reaching interpretation. n

FASBCont. from page 7

2626

person’s home or even in a restau-rant as a guest, the food may be freebut it’s not your last meal. Drink andeat moderately. Consuming food anddrink from the time you arrive untilyou leave may be the last time youare invited. You can partake in both,but the key is moderation. Your timeshould be spent mingling withguests. It can be difficult to carry ona conversation with a prospectiveclient or the president of your com-pany when you have a drink in onehand and a plate of food in theother. Mingle and then ask a clientor the person you just met to joinyou for a drink or some food.

When people think of buffets,they think of all the food they canpossibly eat. Keep in mind you cango back again, but don’t stack yourplate so high you need help. If theentire table is going through the buf-fet line, try to start at the same time.When at least two or three peoplehave returned to the table, you canbegin eating. It is not necessary towait for the entire table to return.When you are ready to return to thebuffet, leave your plate at the tableso the wait staff will take it away.Always start with a clean plate eachtime you return for more food.

You should always bring a giftwhen invited to someone’s home forthe holidays, or any time of the year.The exception to this rule is whenyou have a get-together weekly ormonthly. Bring something that youknow the host and hostess wouldenjoy. If you are not familiar withtheir home or décor, then stay onthe safe side with a bottle of wine,candles or a small non-personal gift.If you do present them with wine,make sure they drink alcohol anddon’t expect them to open the bottleof wine immediately. Food is alwaysgood to either complement theirpresentation or to be enjoyed afterthe party. Avoid bringing flowers thenight of the party because it mightinvolve the hosts stopping to placethem in a vase, or it may interferewith their selection of decoration.Send flowers the following day.

The holidays can be tricky withgift giving and various celebrationsand religious beliefs. Who do yougive a gift, how much do youspend, what happens if you receive

a gift and do not have one in return? 1. If you are exchanging gifts in

the office with all but a few,avoid exchanging them at theoffice. Instead, meet after work,and do not talk about your giftsin the office.

2. Do you give your boss a gift? Notnecessarily. It becomes a contestof who gave what and how muchdid they spend. The boss cangive gifts to the employees, but itis not necessary to reciprocate. Anice card showing your apprecia-tion is always welcome; or givingsomething homemade, such ascookies or artwork is acceptable.Another nice gesture is gettingyour co-workers together to pur-chase a gift for the boss.

3. Be respective of traditions andreligious believes. This does notmean you have to exclude peoplefrom holiday parties and gift giv-ing, but give them the option toparticipate. Office festivities andholiday cards should state “HappyHolidays,” “Holiday Greetings,” or“The Best for the Season.”

4. Always personalize your holidaycards. If your company name isembossed or printed at the bot-tom of the card, a signed name ornames should still apply. If possi-ble, handwrite the address insteadof using labels and use holidaystamps, instead of the meter.

5. Have a few gifts in reserve. A giftcertificate to the local bookstorecould come in handy; a few can-dles in gift bags could save you

an embarrassing moment. If youreceive a gift with nothing in givein exchange, do not apologize fornot having a gift; just be extreme-ly appreciative and follow-upwith a nice thank-you note. Be careful in your gift giving to

clients. Your intention should be agift they will enjoy and appreciate,not a lavish or outrageous gift thatwill “outdo” the competition. The giftshould be sent to the office andshould be business appropriate.Check with the client’s assistant fortheir likes and dislikes. Certificates toa nice restaurant or bookstore, ortheir favorite shop, are very appropri-ate and enjoyable. If more than oneperson from your office is sendingthis customer a gift, make sure youcheck before sending duplicate gifts.

When you receive a gift or areinvited to a party, a thank-you noteshould be sent the next day, or atleast within a week. The handwrit-ten note only needs to be a fewlines thanking them for the specificgift or invitation. Do not include acompany brochure or any otherpieces of printed material. It is athank-you note and not a ploy toget more business.

Always be on your best behavior,no matter what the situation. Byremembering the proper ways todress and socialize, you may bedoing more than just building yourcontacts. You could be making someof the most important connectionsof your career at the next event orparty you attend. n

BEST BEHAVIORCont. from page 23

• Human Resources• Negotiating Skills• Management/Supervisory• Mentoring/Coaching• Quality/ISO• Lean Manufacturing

• OSHA/Safety• Time Management• Presentation Skills• Communication Skills• Project Management• Occupational Languages

For information, contact Judy Parker, IMA Director of TrainingTelephone: 217-522-1240 ext. 3036 • Email: jparker@ima-net.org

IMA-MIT is a powerful training tool that can help your company developand retain a highly-skilled, productive, globally competitive workforce. For a sample of what we offer, attend one of our many open enrollment sessions found at www.ima-net.org/MIT/open.cfm. To learn more about

our on-site customized training, contact Judy Parker to schedule a free consultation with one of our training experts.

providesquality training

www.ima-net.org

New Year’s Eve 2007–Monday, December 31

New Year’s Day 2008–Tuesday, January 1

Martin Luther King Day–Monday, January 21

President’s Day–Monday, February 18

Good Friday–Friday, March 21

Easter Monday–Monday, March 24

Memorial Day–Monday, May 26

Independence Day–Friday, July 4

Labor Day–Monday, September 1

Columbus Day–Monday, October 13

Veterans Day–Tuesday, November 11

Thanksgiving Day–Thursday, November 27

Day after Thanksgiving–Friday, November 28

Christmas Eve–Wednesday, December 24

Christmas Day–Thursday, December 25

SPECIAL Christmas Holiday–Friday, December 26

Entire week between Christmas & New Year’s

New Year’s Eve 2008–Wednesday, December 31

New Year’s Day 2009–Thursday, January 1

SPECIAL New Year’s Holiday–Friday, January 2

NO Full Day PAID Holidays

*Other

FULL DAY PAID HOLIDAYS

NUMBER OF RESPONDENTS0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440

2008 IMA Holiday Report published by the Illinois Manufacturers’ Association1211 W. 22nd St., Suite 620 • Oak Brook, IL 60523 220 East Adams St. • Springfield, IL 62701Telephone: 630-368-5300 • Fax: 630-218-7467 Telephone: 217-522-1240 • Fax: 217-522-2367

http://www.ima-net.org •••• toll-free: 800-875-4462

6 or fewer days 19 4%7 days 36 8%8 days 67 15%9 days 91 20%

10 days 152 34%11 days 54 12%12 or more days 26 6%

Total 445 100%

The IMA’s Annual Holiday Report highlightsemployers’ plans on select holidays throughout the

year.This year’s survey was conducted from August 10-31,2007 and applied to the 2008 calendar year. Four ques-tions were asked ranging from total number of paid daysoff to a breakdown of full or half day paid holidays, andon which days the member company is actually closedthroughout the year. Nearly 450 IMA members respond-ed.These are the results.

The majority of respondents provide at least 10 full daypaid holidays per year, including New Year’s Day, GoodFriday, Memorial Day, Independence Day, Labor Day,Thanksgiving Day and the day after Thanksgiving,Christmas Eve, Christmas Day, and one day of theemployee’s choice.

How many paid holidays do you provide youremployees (not including personal days)?

0 10 20 30 40 50 60 70 80 90 100%PERCENTAGE (%)43%

98%

4%

3%

60%

3%

98%

99%

98%

0%

2%

99%

87%

64%

98%

20%

21%

4%

38%

6%

0%

20%

2008 IMA Holiday ReportIllinois Manufacturers’ Association

*Of the 20%, 72% grant 1-3 floating holidays of the employee’s choice, 23% grant 1-3 floating holidays of the employer’s choice.

New Year’s Day 88%

Good Friday 51%

Memorial Day 86%

Independence Day 87%

Labor Day 87%

Thanksgiving Day 89%

Day After Thanksgiving 80%

Christmas Eve 54%

Christmas Day 87%

2008 IMA Holiday Report published by the Illinois Manufacturers’ Association1211 W. 22nd St., Suite 620 • Oak Brook, IL 60523 220 East Adams St. • Springfield, IL 62701Telephone: 630-368-5300 • Fax: 630-218-7467 Telephone: 217-522-1240 • Fax: 217-522-2367

http://www.ima-net.org •••• toll-free: 800-875-4462

New Year’s Eve 2007–Monday, December 31

New Year’s Day 2008–Tuesday, January 1

Martin Luther King Day–Monday, January 21

President’s Day–Monday, February 18

Good Friday–Friday, March 21

Easter Monday–Monday, March 24

Memorial Day–Monday, May 26

Independence Day–Friday, July 4

Labor Day–Monday, September 1

Columbus Day–Monday, October 13

Veterans Day–Tuesday, November 11

Thanksgiving Day–Thursday, November 27

Day after Thanksgiving–Friday, November 28

Christmas Eve–Wednesday, December 24

Christmas Day–Thursday, December 25

SPECIAL Christmas Holiday–Friday, December 26

Entire week between Christmas & New Year’s

New Year’s Eve 2008–Wednesday, December 31

New Year’s Day 2009–Thursday, January 1

SPECIAL New Year’s Holiday–Friday, January 2

NO Half Day PAID Holidays

Other

HALF DAY PAID HOLIDAYS

NUMBER OF RESPONDENTS0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440

0 10 20 30 40 50 60 70 80 90 100%PERCENTAGE (%)4%

0%

0%

0%

5%

0%

0%

0%

0%

0%

0%

1%

1%

7%

4%

3%

0%

0%

0%

1%

0%

84%

Historically many manufacturing plants continue to operate with

skeleton crews or reduced shifts on paid holidays. However, this

does not always represent the majority.The percentage of

respondents who actually close down operations completely on

certain holidays is shown at right:

Less than two percent of respondents close down on non-tradi-

tional holidays such as Martin Luther King Jr. Day, Presidents’

Day, Easter,Veterans Day, and New Year’s Eve. Only ten percent

(10%) of respondents actually shut down operations between

Christmas and New Year’s.

2008 IMA Holiday Report published by the Illinois Manufacturers’ Association1211 W. 22nd St., Suite 620 • Oak Brook, IL 60523 220 East Adams St. • Springfield, IL 62701Telephone: 630-368-5300 • Fax: 630-218-7467 Telephone: 217-522-1240 • Fax: 217-522-2367

http://www.ima-net.org •••• toll-free: 800-875-4462

Thanks to all those who responded for making this report possible. If you have any feedback regarding addi-

tional information you might like to see in next year’s report, or have questions, please contact Donna

Rogers, SPHR at 800-875-4462 x3007 or email drogers@ima-net.org.

The IMA’s 2007-2008 Benefits Report contains data on employers’ plans for a variety of different benefit

plans in addition to holiday information.The IMA’s 2006 Compensation Report contains actual wage rates

for 188 job descriptions related to manufacturing.

To order your full copies of the IMA’s 2007-2008 Benefits Report and/or the IMA’s 2006 CompensationReport, contact Janie Stanley at 800-875-4462 x3020 or email jstanley@ima-net.org.

New Year’s Eve 2007–Monday, December 31

New Year’s Day 2008–Tuesday, January 1

Martin Luther King Day–Monday, January 21

President’s Day–Monday, February 18

Good Friday–Friday, March 21

Easter Monday–Monday, March 24

Memorial Day–Monday, May 26

Independence Day–Friday, July 4

Labor Day–Monday, September 1

Columbus Day–Monday, October 13

Veterans Day–Tuesday, November 11

Thanksgiving Day–Thursday, November 27

Day after Thanksgiving–Friday, November 28

Christmas Eve–Wednesday, December 24

Christmas Day–Thursday, December 25

SPECIAL Christmas Holiday–Friday, December 26

Entire week between Christmas & New Year’s

New Year’s Eve 2008–Wednesday, December 31

New Year’s Day 2009–Thursday, January 1

SPECIAL New Year’s Holiday–Friday, January 2

**Other

OFFICE CLOSED

NUMBER OF RESPONDENTS0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440

0 10 20 30 40 50 60 70 80 90 100%PERCENTAGE (%)46%

88%

2%

1%

51%

2%

86%

87%

87%

0%

2%

89%

80%

54%

87%

24%

24%

10%

47%

11%

10%

**Of the 10%, 40% close on floating holidays determined by thecompany,. 32% never close, and 20% close for various other reasons.

30

JANUARY 2008January 7, 2008IMA-MIT Event: Kanban/Pull System/Inven-tory Reduction, Decatur Public Library, 130N. Franklin Street, AE Staley Room, DecaturorJanuary 8, 2008IMA-MIT Event: Kanban/Pull System/Inven-tory Reduction, DePaul University, 150 W.Warrenville Road, NapervilleA key component of most Lean Manufacturingstrategies, this one-day Kanban workshopincorporates basic skills necessary to partici-pate in Kanban implementation. Kanban auto-mates manufactured and purchased partsinventory cycles to reduce unwanted inventoryand create waste-free processes.

January 10, 2008IMA-MIT HR Event: Conducting Your Own HR Audit, DePaul University, 150 W.Warrenville Road, NapervilleIf you would like to determine your organiza-tion’s effectiveness within the HR function,identify any restraining forces that affect theachievement of company goals and strategies,or identify any potential compliance issuesthat can affect a company’s defense in anemployment practices and policies case, thenthis is a “must attend” program for you. Learnto conduct an HR Audit. For all HumanResources professionals and anyone involvedin HR-related activities.

January 17, 2008IMA-MIT Event: Effective Presentation SkillsDePaul University’s O’Hare Campus, 3166River Rd., Des PlainesLearn to create and articulate a clear and con-cise message, respond to questions effectively.Let us provide you with the skills and toolsneeded to deliver a winning presentation.

January 21, 2008IMA-MIT Event: Problem Solving–8D, Decatur Public Library, 130 N. FranklinStreet, AE Staley Room, DecaturorJanuary 22, 2008IMA-MIT Event: Problem Solving– 8DDePaul University, 150 W. Warrenville Rd.,NapervilleDesigned to demonstrate effective problemsolving methods, this workshop focuses onroot cause analysis, cause and effect dia-grams, five “Why” techniques, team orientedproblem solving and containment measures.

January 25, 2008IMA-MIT Event: Change is Inevitable:Success is Optional, DePaul University’sO’Hare Campus, 3166 River Rd., Des PlainesDevelop techniques and strategies to lessenthe stress of change and facilitate maximumproductivity during change events. Partici-pants will complete a Personal DevelopmentPlan for successfully transferring key programteachings back to their workplace.

January 30, 2008IMA-MIT HR Event: Behavior-basedInterviewing, DePaul University, 150 W.Warrenville Rd., NapervilleLearn how effective behavior-based interview-ing can be to get the right person on the job!Learn to develop an interview guide that tar-gets the correct skills, knowledge and attitudeneeded for each position. For all HumanResources professionals and anyone involvedin HR-related activities.

FEBRUARY 2008February 8, 2008IMA-MIT Event: Essential Leadership Skillsfor Newly Promoted and FrontlineSupervisors, DePaul University’s O’HareCampus, 3166 River Rd., Des PlainesThis fast-paced, one-day workshop will pro-vide you with the skills to build better work-ing relationships, develop a leader’s perspec-tive, and establish realistic performance goalsfor employees.

February 20, 2008IMA-MIT HR Event: Conducting EffectivePerformance Appraisals, DePaul University,150 W. Warrenville Road, NapervilleThis session provides tools and information toassist you in successfully managing employees’performance. Learn the mechanics of the per-formance review process and take away sam-ples that can be implemented in your organiza-tion. Learn why documentation of performancethroughout employment is important and howto tie the salary review process to the perform-ance review process. For anyone responsible forconducting performance appraisals.

February 25, 2008IMA-MIT Event: Lean Manufacturing: QuickStart, Decatur Public Library, 130 N.Franklin Street, AE Staley Room, DecaturorFebruary 26, 2008IMA-MIT Event: Lean Manufacturing: QuickStart, DePaul University, 150 W. WarrenvilleRoad, NapervilleDesigned to help participants quickly initiateteam oriented on-going lean activities, thisworkshop includes instruction on Lean termsand definitions, waste identification andanalysis, team organization and choosingLean tools for waste free processes.

IMA & MIT 2008 Calendar of events

For IMA events, visit http://www.ima-net.org/calendar.cfm for more information, pricing, etc., and a more complete listing of IMA offerings. For IMA-MIT events, visit http://www.ima-net.org/MIT/open.cfm for more information, pricing, etc., and a more complete listing of MIT offerings.

ALPHA GEAR DRIVES, INC.Bartlett

DIVERSIFIED LABELING SOLUTIONS, INC.

Itasca

E.R.A. INDUSTRIES, INC.Franklin Park

GREAT KITCHENS, INC.Addison

HAVI GLOBAL SOLUTIONSDowners Grove

OLD SECOND NATIONAL BANKYorkville

PALLET REPAIR SYSTEMSJacksonville

PEERLESS OF AMERICA, INC.Effingham

UNION IRON, INC.Decatur

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