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October 2004
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February 2004
December 2003
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December 1999
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REGIONAL REPORTS

December 2004

In this report . . . . . .

  • Southern Companies Recognized for Outstanding Safety
  • National Board Meetings Reflects Industry Diversity
  • Economic Growth Reported
  • Processors Share Concerns and Solutions
  • White House Rolls out the Red Carpet
  • Legislative Receptions for North and South Carolina
  • Fantastic Plastics Works Opens
  • Workforce Management Seminar
  • Bemis Plant Tour
  • Advance Automation Seminar
  • SPI President to Retire
  • Search for New Leader
  • Pay Less with Tax$aver
  • Industry Statistics Free to Members
  • Southern Companies Recognized for Outstanding Safety

    SPI Southern Region Excellence in Safety Roll of Honor

    • Toray Fluorofibers, Decatur, AL
    • Nissei America, Marietta, GA
    • United Southern Industries, Ellenboro, NC
    • Fortron Industries, Wilmington, NC
    • Pactiv Corporation, Greensboro, NC
    • ITW Signode CPO, Latta, SC
    • Wellman MRD Operations, Johnsonville, SC
    • Milliken & Co.'s Cypress Plant, Blacksburg, SC
    • Hilex Poly, Hartsville, SC
    • Ashland Specialty Chemical, Neal, WV

    To be eligible for the SPI Southern Region Excellence in Safety awards, members from the region must participate in SPI's annual Occupational Safety Statistics and Awards program. This year, 262 member worksites received Safety Awards. For more information, click here or contact Susan Howe at (202) 974-5223.

    SPI South recognized 11 members in the region for their outstanding safety records in 2003. The awards were presented during SPI's Executive Board meeting this October in Washington, DC. Ten companies qualified for the Roll of Honor, the most prestigious award in the SPI Southern Region Excellence in Safety program by reporting no OSHA recordable injuries or illnesses for 2003. (See box for Roll of Honor listing.)

    SPI South's Board of Directors established the Southern Region Excellence in Safety program in January 2004. "Although promoting worker safety in the plastics industry has always been a high priority for SPI South, the Board feels it is important to recognize companies in our region that have demonstrated dedication in maintaining a safe work environment," said Richard Sturgis, director of SPI's Southern Region.

    The SPI Southern Region Excellence in Safety program includes two other categories: Most Improvement in Total Recordable Injury Rate and Most Improvement in Severity Rate/Lost Time Injuries. LMR Plastics, Greenville, TN, had the most improvement in total recordable injury rate for companies with 101-300 employees. Ashland Specialty Chemical, Fort Smith, AR, received the same honor for a company with fewer than 100 employees. Receiving recognition for the most improvement in severity rate/lost time injuries for a company with 101-300 employees was Wellman, Inc., Johnsonville, SC. Fortron Industries, located near Wilmington, NC, also received this award for companies with fewer than 100 employees.

    SPI's National Board Meetings Reflects Industry Diversity

    SPI members from around the country traveled to Washington, DC, to participate in the trade association's Fall Board of Directors meetings. As a diverse, member-driven trade association, a total of seven groups and councils make up SPI's national governance to ensure the membership is represented well and meaningful recommendations are made to the Executive Board. Three Strategic Management Groups, with seven to 16 members each, focus on the three main functions of SPI: Public Policy, Public Opinion, Education & Communications, and Industry Growth & Development. The much larger industry segment councils have about 20-25 members each and include the Processors Council, Material Suppliers Council and Equipment Council. A Regional Advisory Group consisting of the Chair and Vice Chair of SPI's four Regional Boards also provides input to the Executive Board. Ensuring strong representation from the Southern region, SPI South has been successful in garnering greater participation by the association's southern members at the national level.

    For the third year in a row, SPI South's Board of Directors held its fall meeting in the nation's capital along side the national board meetings. "The SPI National Board meetings give the Southern Board a wider perspective of what is going on nationally in our industry," said Ron Burnside of Husky Injection Molding and an SPI South Board member. "This in turn helps us address regional issues more effectively and in a broader context. For instance there are things that our board can affect at a regional level, and then there are things that the National Board must handle in order to make a difference for our industry."

    Economic Growth Reported

    SPI's three Council meetings each feature a Business Roundtable discussion with attendees sharing matters of importance. Feedback from the Business Roundtables indicates that the economic turnaround is starting to take root throughout the plastics industry. Several members of the Material Suppliers Council reported projected growth rates of three to 15% for next year. Earlier this year, this Council described their view of the economy as cautiously optimistic, but this October they used the terms "controlled euphoria," noting that uncertainty remains on whether the growth they are projecting will be sustained. At the Equipment Council meeting, many reported that while machinery quotes were up, profits remained slim. During the Processors Council meeting, most reported growth and that sales are up, but in many cases profits were down due to increasing raw material, energy and healthcare costs.

    Processors Share Concerns and Solutions

    An insightful discussion at the Processors Council meeting on the challenges that China poses to the U.S. plastics industry focused mainly on what business executives are doing to compete more effectively. Members that participated in SPI's trade mission to China this past summer shared what they learned from what many called a "transforming experience." SPI will be leading another trade mission to China in 2005. "When it comes to China, you hear a lot of complaining, but the approach here was about sharing knowledge that makes a difference," said Paul Horton, plant manager for Intralox in Harahan, LA. "When you have 50-plus people at the Processors Council meeting telling what they're doing to improve productivity and profits, you hear a lot of good ideas," Horton explained.

    Being a proactive group, the Processors Council members formed several Task Groups to address areas of great concern for plastics manufacturers. The Task Groups will study the need for a strong U.S. manufacturing growth policy as well as energy concerns related to electricity deregulation and the increasing cost of electricity. Their findings will be reported at the March 2005 Processors Council meeting.

    White House Rolls out the Red Carpet for Plastics Industry

    To ensure SPI members get the most of their travels to Washington, DC, the trade association arranged for a high-level briefing at the White House. White House officials addressing SPI's leadership included: Stephen Friedman, assistant to the President for Economic Policy; and Barry Jackson, deputy assistant to the President. Also speaking were top officials from key agencies, such as the Environmental Protection Agency, Department of Labor, Department of Commerce, Department of Energy and the Office of the United States Trade Representative. Many members from the Southern region were at the White House Briefing and found the Bush Administration to be in tune with the issues affecting the plastics industry. One Southern board member said it gave him "reassurance that our voices were being heard in Washington," while another said, "This gives me hope that someone in Washington knows what they're doing when they're making laws."

    Straight from the Horse's Mouth

    Of particular interest to many members were comments by Steven Law, deputy secretary of the U.S. Department of Labor, who stressed the high priority President Bush has placed on providing training funds for existing and dislocated workers to upgrade their technical skills in order to help U.S. industry successfully compete abroad. It was noted that SPI's training and certification programs qualify for federal Workforce Investment Act funds.

    Having heard what Deputy Secretary Law had to say about funding being available for existing workers was of great value to SPI South board member Van Durham, vice president of ITECH. "When inquiring about state funding to train our machine operators on some new equipment we are purchasing, we were initially told that training funds were only available to new and expanding businesses," said Durham. "It sure got my local Workforce Investment Board's attention when I told them about the White House Briefing I attended. What Mr. Law told us was instrumental in getting an application for incumbent worker training funds."

    Sometimes It's Just Not Fair

    As international trade policy remains a major concern of the plastics industry, Meredith Broadbent, assistant U.S. trade representative for industry and telecommunications with the Office of the US Trade Representative (USTR), addressed SPI members. Outlining the Bush Administration's philosophy as "fair trade and open borders," she explained the best way to maintain a level playing field is for the U.S. to work within the framework of the World Trade Organization (WTO) as it provides a forum for participating countries to file trade grievances against those in violation of international standards and agreements to resolve issues. The USTR's main responsibilities, aside from developing U.S. international trade policy and coordinating negotiations, is to help U.S. industries resolve complaints against unfair foreign trade practices and handle import relief cases and trade-related intellectual property protection matters. Broadbent encouraged anyone in the industry to contact her if they've experience unfair trade practices at (202) 395-5656; e-mail mbroadbent@ustr.gov.

    Additionally, Broadbent offered some insight on Chinese trade issues, clarifying some common misconceptions. For instance, China didn't come into the World Trade Organization under terms requiring them to comply fully with all WTO regulations and policies. Many of China's industries have been allowed a transition time before they are mandated to fully comply with WTO trade laws.

    As trade issues are of paramount concern to members, SPI is in the process of bringing on a full-time staff member to provide both trade services ad advocacy support for initiatives outlined in its trade agenda (see www.plasticsindustry.org/public/legreg/news/internationaltradepolicy.htm).

    Pay Less With SPI's Tax$aver Service

    SPI Tax$aver ProgramEach year, many companies unknowingly overpay their personal property taxes because they can't keep up with the differing and ever-changing state codes and rules governing non-taxable assets, exemptions, depreciation and true market value. The Tax$aver Program, one of SPI's many financial solutions tools, can decrease your property taxes and increase your bottom line. So far, every company that has used Tax$aver is now paying lower property taxes on their non-real estate business assets. The average tax reduction is 18%.

    SPI Industry Statistics Reports Free to Members

    SPI's one-of-a-kind industry statistics reports, available through the association's Plastics Data Source are now free to members. Included in the Plastics Data Source portfolio are reports on all facets of the plastics industry. The association's annual Size and Impact of the U.S. Plastics Industry provides analyses of the size and scope of the U.S. plastics industry and its sectors, including valuable data on the number of establishments, number of employees, dollar volume of payroll, value added, shipments and new capital expenditures in every state. Another report, Global Business Trends, Partners, Hot Products, explores the factors affecting U.S. exports, imports and trade balances and contains detailed trade data on U.S. imports and exports by HTS code as well as estimates on the dollar value of plastics contained in a wide variety of products (organized by NAICS code) imported into and exported from the U.S. SPI's statistical reports furnish plastics executives with the data they need to grow their business and provide valuable industry insights for others who watch the nation's fourth largest manufacturing industry. For more information, link to Plastics Data Source.

    Mark Your Calendar

    North and South Carolina Legislative Receptions Planned for Plastics Industry

    Tuesday, March 29, 2005
    North Carolina Legislative Reception
    North Carolina Museum of History
    Raleigh, NC

    Wednesday, May 4, 2005
    South Carolina Legislative Reception
    Capital City Club
    Columbia, SC

    Companies may purchase exhibit tables to display their products and educate lawmakers about the plastics industry. Exhibitor and Sponsor fees are applied to reception costs.

    Competitiveness Series Seminars Continues Into 2005

    After receiving positive feedback on the Workforce Management & Training seminar held at Plastics USA in Chicago, SPI South will host the seminar again on May 19, 2005 in Hickory, NC.

    Bemis Plant Tour for Seminar Attendees

    Following the Workforce Management & Training seminar on May 19, Bemis Manufacturing Southeast in Lenoir, NC, will welcome attendees for a tour of its co-injection molding facility.

    Advance Automation Seminar in the Works

    Due to the need to stream-line plastics manufacturing operations to the fullest, SPI South will host an Advanced Automation for Injection Molding seminar in June 2005. Content for the seminar is being developed by experts in the injection molding and automation equipment community. A date has yet to be determined for the event, which will be held in Charlotte, NC.

    Fantastic Plastics Works

    On October 1, SPI celebrated the grand opening of its "Fantastic Plastics Works" exhibit at INNOVENTIONS at Epcot ® at the Walt Disney World ® Resort in Lake Buena Vista, FL. The more than 5,000-sq.-ft. exhibit showcases the full scope of the plastics industry, from chemistry to design to manufacturing and products, with a healthy nod to human ingenuity and creativity. Special features include a computerized robot design and race game and a free toy, the parts of which are manufactured on-site.

    Posing at the "Fantastic Plastics Works" ribbon cutting ceremony are (from left to right), Terry Caloghiris, vice president and general manager, DuPont Engineering Polymers; Tim O'Brien, vice president and general manager, GE Advanced Materials; SPI's President, Don Duncan; and Paul Appelblom, president, Jatco, Inc. and SPI chairman.



    SPI President to Retire

    SPI members prepare to bid farewell to Don Duncan, the association's President, as he plans to retire the first quarter of 2005. Duncan's leadership over the past five years helped to strengthen SPI financially and structurally, positioning the group for continued growth. During his tenure, Duncan successfully branded the trade association as an industry leader on critical issues at all levels of government. SPI's most notable accomplishment under Duncan's leadership certainly must be the recently opened "Fantastic Plastics Works" exhibit at INNOVENTIONS at Epcot ® in the Walt Disney World ® Resort in Lake Buena Vista, FL.

    Search for New Leader Begins

    A search committee that will include the association's officers has been formed to recruit Duncan's replacement. The organization also will use the services of the A. T. Kearney executive search firm. Duncan will remain at the helm until his successor is found and a smooth transition has been made.

    "Our expectation is that we can complete the process and select a new President prior to the next Executive Board meeting in March 2005," said Paul Appelblom, SPI chair and chair of the search committee.

    SPI Headquarters Office Has New Address

    In late November, SPI moved its Washington, DC, staff into new offices in the District of Columbia. The move is the result of a cost-savings initiative that will allow SPI to take advantage of low lease rates and the ability to lease only the space it needs. Updated contact information for the association's headquarters is: SPI, 1667 K Street, NW, Suite 1000, Washington, DC 20006. Telephone, fax numbers and e-mail addresses will remain the same.

     


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