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WHAT'S TRENDING?
Shifts including unemployment, housing, industrial production, purchasing, energy prices and consumer spending greatly impact the manufacturing industries economic outlook. Currently, these variables speculate that manufacturing, which makes up 12% of the US economy, is stable and showing signs of improvement.

Both the initial unemployment claims and unemployment rate (U-3) are trending down, although slowly. Increased employment corresponds with other improving economic factors. 
Although existing home sales continue to increase in a majority of markets, new home sales are beginning to level off and the mortgage rates continue a slow rise. Discontinuation of the Federal Reserve's bond purchasing program could contribute to a significant increase in lending interest rates and reduced housing demands.

Manufacturing capacity utilization is stabilizing as is the industrial production index (IPI). If demand continues to climb, additional increase in output may require significant capital expenditures.

US energy prices have remained stable (aside from a slight dip during economic recovery) thus contributing to a more steady manufacturing environment. Fossil fuel demand had remained steady, partially due to increased efficiencies and alternative fuel availability.
PMI increased from August and is at its highest level in two years. Purchasing managers are reporting a slight increase in demand and corresponding continuation of raw material shortages.
Although the consumer index shows a positive trend, the business (and business owner) index has remained relatively flat. Businesses express concern over many economic risks and uncertainties (e.g. interest rates, government spending, stock market, natural disasters, etc.)
Article written by Lawrence Stoklosa, Manager
National Manufacturing Practice
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PROACTIVE SAFETY: BEST PRACTICES IN MANUFACTURING
Consumer safety must be a top priority for manufacturing facilities, but equally important is employee safety. Making employee safety a top priority has multiple benefits including increased employee satisfaction, higher employee morale, reduced employee absenteeism and lower workers' compensation costs.
Today's manufacturing environment has evolved into a highly advanced combination of skilled laborers and precision machinery, which sometimes creates incredibly hazardous environments for employees. As investments are made in property, plant equipment and tools, we cannot afford to forget about safety.
In today's fast paced world of production, manufacturers have found new ways to improve throughput and productivity, and safety can sometimes get lost in the shuffle. After all, the seven forms of waste - defects, overproduction, inventory, over-processing, motion, transport and waiting - are the principles of manufacturing, not necessarily a safer work environment. If you made some significant changes to your operations over the past few years, it's time to reassess your plant floor safety initiatives. Industrial machinery can expose workers to high levels of noise and projectiles, such as dust and metal, and can cause safety issues when protective guards are not properly installed or if they are missing. These hazards can lead to issues such as long term hearing loss and blindness, and can pose the risk of entanglement if workers' clothes or other items get caught in the machine. There have been many instances where the proper use of safety guards and protective clothing could have prevented cuts, punctures or even severed limbs.
Chemical exposure is another common occurrence in the manufacturing industry. This can lead to respiratory problems, issues with the nervous and reproductive systems, seizures and even death. Chemical manufacturing also poses a high risk of chemical fires, which can spread very quickly. An effective evacuation plan could potentially save lives.
Many of these issues can easily be prevented with the use of proper safety equipment. Simple purchases such as helmets, gloves, sleeves, reflective vest, respirators, safety glasses and hearing protection will not break the bank and can help reduce a significant amount of common injuries in the workplace.
While some HR professionals are being asked to manage safety, they may not have enough training, technical or mechanical know how. Take into account the size of your organization, use of hazardous materials or chemicals, and dangers surrounding your processes. Can he or she perform audits, assess hazards, investigate unsafe conditions, conduct safety training, and develop safety documents and resources?
For many companies, introducing the concepts of safety and risk assessments requires a cultural shift. A shift away from spending the least amount of money possible by avoiding the latest technologies, away from not meeting or exceeding industry standards, and away from current ideas about training.
For more information or questions on this topic, please contact a member of the firm's National Manufacturing Practice in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040 or visit us on the web at www.uhy-us.com.
Article written by F. Michael Zovistoski, Partner
National Manufacturing Practice
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RECORD ATTENDANCE AT UHY LLP MANUFACTURING OUTLOOK 2014
UHY hosted its annual Manufacturing Outlook on Wednesday, November 13, 2013 in Farmington Hills. The UHY St. Louis, Columbia and Houston offices also participated via satellite. In total there were 166 guests - a record breaking number for this fourth consecutive year. A panel of highly-qualified experts in the manufacturing industry discussed the race to gain a competitive edge, economic and automotive forecasts, what's happening with M&A activity and the latest on capital markets. Guests were also part of an interactive panel discussion on 'big data' and driving operational efficiency.
A playback of the seminar can be found in our video library. You can also download an electronic copy of the presentation slides.
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MANUFACTURING INDUSTRY INSIGHT
UHY LLP recognizes that manufacturing companies require their auditors, tax specialists and business advisors to add value to financial reporting activities. That is why we combine the strength of business and financial expertise with a hands-on, "shop floor" approach to solving complex business decisions in these key segments:
Aerospace & Defense Distribution Automotive Suppliers Industrial Manufacturing Consumer Products
Our professionals are leaders in the industry and take the steps necessary to ensure our client's future success by identifying and addressing new trends, accounting requirements and regulations.
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Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP and UHY Advisors, Inc. are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY LLP and/or UHY Advisors (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.
©2013 UHY LLP. All rights reserved. [0613]
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