On the energy front, one of the biggest stories of 2011 was the development of shale gas.  And, if the current trends continue, it will likely be the story of 2012 as well.

The Wall Street Journal reports,

The boom in low-cost natural gas obtained from shale is driving investment in plants that use gas for fuel or as a raw material, setting off a race by states to attract such factories and the jobs they create.

Recently, natural gas prices have plummeted.  “Because electric utilities often burn gas,” the Journal notes, “that price drop has helped bring down average electricity costs.

That’s a big deal for manufacturers, which consume one-third of the energy produced in this country. Lower energy prices make manufacturers more competitive and help offset other areas where manufacturers in the country are at a disadvantage compared to our competitors.

The shale boom’s impact on manufacturing was highlighted in a recent report completed by PricewaterhouseCoopers and released jointly with the National Association of Manufacturers.

The report shows that shale development means more investment in our economy, lower energy prices and one million more jobs by 2025.

NAM Board Chair Mary Andringa addresses the Iowa Association of Business and Industry on October 18.

NAM Board Chair (and President and CEO of the Vermeer Corporation) Mary Andringa addressed the Iowa Association of Business and Industry yesterday in Des Moines.  Shopfloor hears that the turnout was impressive.

Andringa spoke about the role of manufacturing in Iowa, as well as the importance of the NAM in advancing manufacturing in this country.  You can see highlights of the presentation here.

And, of course, no presentation on manufacturing is complete without a mention of A Manufacturing  Renaissance: Four Goals for Economic Growth, the NAM’s blueprint for economic recovery.

Over the weekend, former Missouri Senator Kit Bond wrote in the Southeast Missourian about the Environmental Protection Agency’s Cross-State Air Pollution Rule, which requires power plants to reduce emissions of sulfur dioxide and nitrogen oxide.  (News coverage of the new rule here and here.)

Senator Bond writes that this new regulation will have a serious impact on coal-fired power plants:

Every time an American family turns on a light switch, heats a home in winter or air conditions that home in the summer, that family will pay higher utility bills. Workers who depend on coal-fired plants for paychecks will face unemployment when plants are closed. Rural communities that depend on tax revenue from utilities to fund schools will struggle to keep doors open for students when coal-fired facilities are shut down due to the cost of complying with EPA’s regulatory onslaught. And farmers and businesses — from the local pharmacy to drugstore — will face higher energy prices, making it more difficult to stay in business — let alone create jobs.

Senator Bond notes that, together with the Utility MACT regulations, this new rule will cost jobs. He writes,

Recent analysis from the National Economic Research Associates shows that by 2020 the cost of just two of the coming onslaught of regulations the Cross-State Air Pollution Rule and the Utility Maximum Achievable Control Technology rules — will be the loss of 1.4 million jobs and an averageutility bill increase, of 11.5 percent — and in some cases, more than 20 percent.

For more about the EPA’s regulatory agenda, be sure the visit the NAM’s No New Regs site.

This afternoon President Obama will be touring and speaking at Alcoa Davenport Works in Bettendorf, Iowa. The President is expected to continue to speak about the importance of manufacturing to our nation’s economy.

Politico reports on today’s event:

The all-important political state of Iowa will host President Obama on Tuesday as he goes to Bettendorf to tour a factory and talk about manufacturing and the economy. “Manufacturing serves as the backbone of communities across our country and the continued revitalization of the manufacturing sector is critical to America’s success as we compete in a 21st century global economy,” the White House noted in guidance to reporters.

Texas Governor Rick Perry has signed legislation intended to deter frivolous lawsuits–so-called loser pays legislation.

Usually, this kind of thing gets trial lawyers riled up, and this occasion was no different.  The Wall Street Journal‘s Law Blog reports,

Texans for Lawsuit Reform, a pro-business group, hailed the measure, saying in a statement that it was “bitterly opposed by the Texas Trial Lawyer Association until the last minutes of deliberation.”

But what about those last minutes of deliberation?  It turns out that the final bill received the support of both the legal reform group and the trial lawyers.  The Texas Lawyer explains,

Groups that previously fought on opposing sides — Texans for Lawsuit Reform and the Texas Trial Lawyers Association, among others — lined up in support of Committee Substitute House Bill 274….

Speaking in interviews before the Senate passed the bill, Mike Gallagher, past president of Texas Trial Lawyers Association and Alan Waldrop, outside counsel for Texans for Lawsuit Reform, shared their views on the committee substitute.

“It’s obviously much better than the House version,” said Gallagher, who said he participated in “heated negotiations” over the substitute bill. He said he thought the Senate would not pass loser pays without trial lawyers’ input.

It’s not often you see those two groups joining hands.  Nevertheless, tort reformers seem optimistic.  See here for example.  And here’s a more tempered view of an earlier, less watered down version of the bill.

This week the Senate Finance Committee holds two hearings on pending free trade agreements (FTAs).  Tomorrow, the committee will consider the Panama FTA, and Thursday the committee will turn to the South Korea agreement.

Ahead of those hearings, 25 governors have written congressional leaders urging them to pass the Colombia, Panama, and Korea FTAs.  The bipartisan group writes,

As the chief executives of our respective states and territories, we appreciate how important international trade and investment are to the economic vitality of our jurisdictions, presenting important opportunities for workers, and enhancing our overall competitiveness.  Export-related jobs pay better than non-exporting industries and, with nearly 95 percent of the world’s consumers living outside of the U.S., exports have been the focus of increased job growth in recent years.

These trade agreements have been awaiting congressional approval since 2007 (and 2006 for the Colombia deal).

Read the whole letter here.

America’s workers and manufacturers need the jobs and electricity that nuclear power produces, so kudos to Missouri Gov. Jay Nixon, who highlighted his plans for a new nuclear power plant in his State of the State address on Wednesday.

In November, I announced a historic agreement that will transform the economy of our state – creating thousands of jobs and benefiting millions of Missouri consumers of electric power.

That agreement put the wheels in motion for the construction of a second, state-of-the-art nuclear power plant in Callaway County.

Missouri has some of the lowest electric rates in the nation. That’s attractive to businesses and families. But as our energy needs grow, we need to be looking now for new sources of clean, abundant and affordable power.

Building a second nuclear plant will create thousands of good-paying jobs for all our construction trades: iron and sheet metal workers; carpenters and cement masons; boilermakers and bricklayers; plumbers and pipefitters; teamsters and laborers; electrical workers and operating engineers.

They built Callaway One. And they will build Callaway Two.

Recent news coverage … (continue reading…)

Missouri Gov. Jay Nixon built much of his State of the State address Wednesday around economic success stories and lists of company expansions, with manufacturing (and Ford Motor Co.) leading the way.

Nordic Windpower USA, is relocating from California to Kansas City. It plans to invest $16 million and create 200 jobs, making wind turbines that produce clean, renewable energy.

Express Scripts is investing $73 million to expand in St. Louis. That will preserve more than 1,000 jobs, and create 150 more.

Pioneer Hi-Bred has broken ground on a $55 million soybean research plant in New Madrid County, creating 50 new jobs and helping thousands of Missouri farmers grow better beans.

Going forward, we will fight every day to help established Missouri businesses grow, and help new ones take root. We’re going to make things in Missouri, and keep the “P” for products in GDP.

Products like:

• Boots at Redwing in Potosi;
• Batteries at Energizer in Maryville;
• Windows at Quaker Windows in Freeburg;
• Aluminum at Noranda in Marston;
• Engine parts at Bodine in Troy;
• Bullets and brakes, aircraft and appliances.

And Missouri will keep on building things, and that includes automobiles.

Here the governor, a Democrat, was able to turn to a huge success story, that one he can tell in parternship wtih Ford Motor Co. Gov. Nixon reminded the audience of Missouri’s tradition strengths as an automative state, an industry supports nearly 26,000 jobs in the state. But given the downturn of the auto sector, there was real concern last year that Ford’s Claycomo plant might close.

So last summer, I called the General Assembly into special session to strengthen Missouri’s automotive industry. We fought for every man and woman whose job was on the line. And I’m proud to announce that working together, we won that fight. (continue reading…)

Gov. Jack Markell of Delaware made more specific references to manufacturing in his State of the State address Thursday than any other of his gubernatorial peers we’ve checked on this year. (Transcript) After talking briefly about several government programs targeted at business — the Delaware Strategic Fund and a proposed Job Creation Infrastructure Investment Fund — the Democrat continued:

[To] drive home the message that Delaware is the best place to start and grow a business, we must promote job-creating capital investment. For businesses large or small that are willing to put Delawareans to work in a new or expanded manufacturing facility — whether it be for traditional manufacturing, or for clean energy — we will provide tax credits to support that job growth. We must continue to create a business climate that puts our neighbors back to work and that puts Delaware back at the forefront of making things again.

Historically, Delaware has been defined by what we make — from Dupont’s mills in the 19th Century, to the Pontiac and Chrysler plants of the 20th, to, today, Atlantis Industries in Milton, providing advanced parts design and tooling for customers all over the country, and TA Instruments in New Castle, designing and manufacturing highly sophisticated measurement devices. Manufacturing jobs have provided a ladder to economic independence for countless families and they must remain part of our economic future.

That is why our administration is joining with the Delaware Manufacturing Association, led by Chamber of Commerce President Jim Wolfe. This partnership will build on effective past outreach to local manufacturers on topics ranging from lean manufacturing techniques to energy savings programs. Together, we will work to develop and implement new ways to expand manufacturing jobs.

Excellent decision, Governor, with tremendous potential for substantive follow-up.

Rick Snyder’s first State of the State address as governor of Michigan was heavy on programs, priorities and proposals. Columnist Tom Walsh’s analysis at The Detroit Free Press was right on: “Like a no-nonsense, politically agnostic businessman, Gov. Rick Snyder spent most of his 43-minute State of the State speech ticking off a to-do list of stuff designed to create more jobs and help companies profit and prosper.” (Also from the Free Press, the speech transcript.) 

Snyder, a Republican, specifically mentioned manufacturers just twice, both times in a phrase to describe the private sector in the state. But he certainly discussed many proposals of keen interest to manufacturers, including replacing the state’s Business Tax with a 6 percent corporate income tax. Good to see Michigan finally starting to talk about the Business Tax.

Snyder dubbed the speech, “A roadmap to drive change in Michigan’s economy,” and that roadmap includes an international bridge crossing. The governor emphasized with the importance of trade to Michigan and declared his goal of completing a new Detroit-Windsor bridge:

To achieve success in today’s world, it requires that we look beyond our borders. We must open ourselves to the promises and potential of the global marketplace. We must increase exports from Michigan farmers, manufacturers and entrepreneurs. (continue reading…)