PMA Cleveland District Meeting
September 13, 2011
State House Report
• Ryan Augsburger
raugsburger@ohiomfg.com
• Kevin Schmidt
kschmidt@ohiomfg.com
ABOUT THE OHIO MANUFACTURERS’ ASSOCIATION
WHO:
WHAT:
WHERE:
WHEN:
WHY:
HOW:
Manufacturing Leaders Working with
Policy Makers
Protect & Grow Manufacturing
State Government
24 / 7 Since 1910
Because if you are not at the table, you
are on the menu –Jim McGregor
Advocacy / Problem Solving / Informing
/ Energy Assistance / Workers’ Comp
Assistance
ROADMAP:
• Facts and Figures About Manufacturing in Ohio’s
Economy
• Examples of Manufacturing Advocacy Collaboration
• Resources for Manufacturers
• Current State Government Events Impacting Ohio
Manufacturing Competitiveness
Manufacturing accounts for 18% of Ohio’s Gross
Domestic Product –
Nearly double the contribution of the next largest
private-industry sector (real estate, rental and leasing at
9.9%).
Ohio’s total annual manufacturing output of $84.1
billion in 2008 ranked third nationally –
and was $37 billion higher than the next largest
non-government sector of the state’s economy.
More than 600,000 Ohioans –
or about 14 percent of all Ohio workers –
are employed in manufacturing,
which makes manufacturing Ohio’s number-one
source of non-government jobs.
Total manufacturing payroll in Ohio exceeded $38
billion in 2008,
the highest total annual wages of any economic
sector, public or private.
Government = $33 billion
Health care and social assistance = $27 billion
Retail trade = $14 billion
Manufacturing is a leading source of new private
investment in Ohio.
In 2009, Ohio ranked first nationally in new site
selections –
and manufacturing accounted for 58 percent of those
investments.
In 2009, Ohio was the seventh-largest exporting
state in the nation,
exporting more than $34 billion in goods
to 213 countries and territories.
Ohio ranks first, second or third among U.S.
manufacturers in 84 different North American Industry
Classification System (NAICS) categories of
manufacturing.
What do we make in Ohio?
#1 in:
Wood products
Adhesives
Plastic bottles
Refactory goods
Rolling and drawing steel
Nonaluminum foundries
Paint and coatings
Resins
Rubber products
Pressed and blown glass
Ferrous metal foundries
Custom roll forming
What do we make in Ohio?
And also #1 in:
Hand tool and saw blade
Bearings
Plastic and rubber machinery
Rolling mill machinery
Wood kitchen cabinets
Heat treating
Ordnance
Machine tools
Heavy duty trucks
Brooms, brushes and mops
What do we make in Ohio?
And, #2 or #3 in:
Dog and cat food
Cookies, crackers and pasta
Fabric coating mills
Paperboard container `
Asphalt shingles
Inorganic chemicals
Laminated plastic sheets
China and pottery
Frozen food
Seasonings and dressings
Wood containers
Coated paper
Synthetic dye
Un-laminated plastic sheets
Plastics products
Ceramic tile
What do we make in Ohio?
#2 or #3 more:
Structural clay products
Iron and steel mills
Nonferrous metal foundries
Metal stamping
Architectural metal work
Metal cans
Springs and wire products
Precision turned products
Lime
Iron and steel pipe
Forgings
Cutlery, pots and pans
Metal tanks
Hardware
Machine shops
Valves and fittings
What do we make in Ohio?
#2 or #3 more:
Small arms ammunition
Lawn and garden equipment
Industrial molds
Cutting tools
Mechanical power transmission
Fluid power equipment
Fluid meters
Gasoline engines and parts
Fabricated metal products
Ventilation equipment
Special tools, dies and jigs
Metalworking machinery
Packaging machinery
General purpose machinery
Industrial controls
Steering and suspension systems
What do we make in Ohio?
#2 or #3 continued:
Brake systems
Seating and interior trim
Vehicle air-conditioning
Architectural millwork
Dolls, toys and games
Transmissions and power trains
Vehicle stampings
Vehicle parts
Laboratory apparatuses
Burial caskets
Manufacturing locates where
“all-in” costs are lowest.
What makes up “all-in”
costs?
What Makes Up All In Costs?
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Labor
Technology & Business Practices (R&D)
Equipment & Financing
Location
Transportation
Energy
Environmental Regulations
Access to Markets
Taxation
Workers’ Compensation
Civil Justice / Lawsuit Exposure
SUCCESSFUL INDUSTRY ADVOCACY COLLABORATION
• Civil Justice Update “Tort Reform”
• Business Tax Code Reform
• Air Permitting Reform
• Electricity Restructuring
• Transportation Policy
CURRENT EVENTS IMPACT OHIO’S COMPETITIVENESS
• State Budget Completed June 30
• Legislative Recess
• November Ballot Issues (SB 5)
• Legislative Redistricting
• JobsOhio / Economic Development Incentives
• Shale Gas and Energy Policy
• Environmental Train Wreck
• Workers’ Comp Reform
STATE BUDGET H.B. 153
• Funds State Operations July 2011 – June 2013
• GRF: ~$55.7 Billion
• OMA Members Support HB 153
– No Tax Hikes
– Phase-In Final Personal Income Tax Rate Reduction (HB
66)
– Tools to encourage shared services / consolidation of local
public entities (townships, cities, library systems, school
districts)
– Repeal Estate Tax, a disincentive to investment for the
thousands of smaller family-owned manufacturing
companies whose owners must instead spend capital on
unproductive tax avoidance strategies.
– InvestOhio to spur capital investment in Ohio businesses
2011 – 2013.
NOVEMBER GENERAL ELECTION
• Issue 1 – Judicial Age Limit Increase to 75
» Constitutional Amendment
• Issue 2 – SB 5 Collective Bargaining
» Referendum to Repeal Enacted Legislation
» OMA Endorsed
» www.betterohio.org
• Issue 3 – Health Care Individual Mandate
» Constitutional Amendment
REDISTRICTING / REAPPORTIONMENT
• Follows Decennial Census of 2010
• REDISTRICTING
– Ohio House and Senate
• Revise Congressional districts via legislation
• Expected timeline – Autumn Session 2011
• Population decline – Ohio loses two seats
• RE-APPORTIONMENT
– Apportionment Board
• Revises Ohio House (99) / Ohio Senate (33) boundaries
• Five Members (Governor, Sec of State, Auditor of State, House Rs
& Senate Ds)
• Scheduled throughout August.
JOBSOHIO
• JobsOhio is a private non-profit corporation,
guided by a business-minded governor and a
highly accomplished board of directors that
come from the business world. Like everyone at
JobsOhio, they speak your language.
• JobsOhio is holding a series of regional
presentations to discuss Ohio's new economic
development strategy. Join us for an upcoming
meeting, or download a presentation deck from
one of our past events.
ENERGY
• Governor’s Energy Summit
– September 21-22 in Columbus.
• Shale Gas
– Scale and Meaning
– OMA advocating for manufacturing priorities.
• Electric Utility Rate Design
– Possible revision to Ohio electric rate law
– OMA vigilant on this matter.
• OMA Focus
– Competitive, predictable rates for manufacturing. Period.
– Affinity “Buying Pool” for Manufacturers
– Energy Efficiency
ENVIRONMENTAL Train Wreck
• Landslide of new Federal Regulations
– NAAQS
• Ozone & SO2
– MACT
• Boiler, Utility, etc.
– GHG
– Cross-State Air Pollution
– Coal Ash
– Mercury, Arsenic
– Cooling Water
TRANSPORTATION
• At the federal level, the OMA has been supportive incorporating the
Safe and Efficient Transportation Act (SETA) into the federal
highway bill. SETA allows states to lift the truck weight limit for
interstate travel from 80,000 pounds to 120,000 pounds with extra
axel and braking safeguards to prevent road degradation while
improving efficiency.
• U.S. Senator Rob Portman and Congresswoman Jean Schmidt are
sponsoring the measure in the U.S. Senate and U.S. House.
• Manufacturers should express support to Senator Portman and
Congresswoman Schmidt and other members of Congress.
• Motivated by short-term thinking and self-serving business interests,
railroads are lobbying hard to derail SETA.
SAFETY & LABOR REGULATIONS
• SAFETY
• OSHA (Federal) proposed rule makings harmful to
manufacturing.
– Noise
– Musculoskeletal Disorder Reporting
– Silica Dust PEL
• LABOR
• NLRB (Federal) regulations harmful to
manufacturing.
– Boeing Case -- Relocation
– Quickie Elections (EFCA aftermath)
VOTE TRACKING
HTTP://WWW.OHIOPOWEREDBYMANUFACTURING.COM
Ohio Senate District 24
(show committee information)
Senator Thomas F. Patton (R)
http://www.ohiosenate.gov/tom-patton.html (web)
SD24@senate.state.oh.us (email)
Write this official!
Capital Address:
Senate Building
1 Capitol Square, Room 140
Columbus OH 43215
(614) 466-8056 (phone)
(614) 222-0991 (fax)
District Address:
17157 Rabbit's Run Drive, OH 44136
Strongsville OH 44136
(614) 238-7132 (phone)
Key Votes for Ohio Manufacturers in the 127th General Assembly
This official's vote
compared with
Preferred
the preferred
Position
position
Description
On HB 100: WORKERS' COMPENSATION BUDGET AND REFORMS: Makes important reforms to the state’s workers'
compensation system. Containing costs to help employers provide more employment opportunities and ensuring that
the workers' compensation system provides the best possible service and level of care to injured workers is an
essential part of Ohio's efforts to promote economic growth and competitiveness.
Y
On SB 221: ENERGY POLICY: Provides reliable electric rates for employers and consumers, enabling job retention
and economic growth at a time when energy costs are of paramount importance.
Y
This official's percentage on this voting record:
50%
VOTE TRACKING
HTTP://WWW.OHIOPOWEREDBYMANUFACTURING.COM
Key Votes For Ohio Manufacturers in the 126th General Assembly
This official's vote
compared with
Preferred
the preferred
Position
position
Description
On Am. Sub. S.B. 265: Third Consideration
Ensuring that Ohio's environmental air permitting system is streamlined, efficient and transparent is important to
manufacturers when they are making decisions to move to and locate within the state. This legislation reguires the Ohio
EPA to put in writing the standards that industry must follow to control air emissions. This will make Ohio's system more
predictable statewide and competitive nationally.
Y
On SB 117 --126thGA: LAWSUIT REFORM: This vote reflects lawmaker's position on important lawsuit reforms,
including protection for Ohio employers and employees from costly and frivolous nuisance lawsuits that can hurt efforts
to attract business and jobs to Ohio.
Y
On Sub. H.B. 390: Third Consideration
For manufacturers to be competitive they a predictable government regulatory system in which to operate. This
legislation would create a more predictable tax collection system by establishing a statute of limitation on the collection
certain types of taxes.
Y
Sub. H.B. 66: Third Consideration This legislation reformed Ohio's tax system to encourage manufacturers and other
business to invest in jobs, tools and facilities in Ohio and lowered all taxpayers' income taxes.
Y
On Sub. S.B. 7: Third Consideration
This legislation put in place substantial and important workers' compensation reforms that help return injured workers to
their jobs and make the BWC more cost efficient.
Y
This official's percentage on this voting record:
80%
Coming together is a beginning. Keeping
together is progress. Working together is
success. -Henry Ford
Thank You