The U.S. economy grew 2.9 percent at the annual rate in the third quarter, up from 1.4 percent in the second quarter and its fastest pace in two years. Consumer spending, net exports and inventory spending were bright spots in the latest report, with fixed investment data remaining soft. Consumer spending on goods increased 2.2 percent at the annual rate in the third quarter, boosted by strength in durable goods purchases including motor vehicles. At the same time, net exports made its largest contribution to real GDP growth since the fourth quarter of 2014, with goods exports jumping an annualized 14.5 percent. Meanwhile, while spending on structures rebounded in the third quarter, business investments in equipment contracted for the fourth straight quarter, and the residential segment was off for the second consecutive report. On the positive side, business inventory spending picked up following five straight quarters where it was a drag on real GDP activity. Still, even with the stronger
Boeing today announced an order for 14 747-8 Freighters. The agreement also includes an option to purchase an additional 14 of the cargo airplanes. “These aircraft are a strategic investment for increased capacity for UPS customers around the globe,” said Brendan Canavan, president, UPS Airlines. “The 747-8 will allow UPS to upsize our network in both new and existing markets.” The 747-8 Freighter is the world’s most efficient freighter, providing cargo operators the lowest operating costs and best economics of any large freighter on the market. With its iconic nose door, the airplane has 16 percent more revenue cargo volume than the 747-400F. The airplane also reduces the noise footprint around an airport by 30 percent compared to its predecessor. “UPS could not have selected a better aircraft to meet its growing business needs,” said Brad McMullen, vice president, Sales, North America and Leasing, Boeing Commercial Airplanes. “We’ve continued to make the 747-8 Freighter even better, and we look forward to
Last night, Associated Industries of Missouri awarded Rebecca Gubbels the Extension Industry Award at the 2016 MU Extension Summit. Gubbels, Business and Program Development Consultant, has experience has both a banker and a business owner. She has a finance background including managing an SBA Microloan Program, a decade of commerical lending, and financial product development for the small business market. Her entrepreneurial experience runs the gamut from packaging loans for pizza and beer money in college to building a greeting card company to now consulting with small business owners. Her skills include financial analysis, business operations and processes, business coaching, and classroom facilitation. Gubbels is a Kansas City area native who holds a B.B.A. in Entrepreneurship from Baylor University.
Ray McCarty, President/CEO of Associated Industries of Missouri, spoke today at a press conference on behalf of ‘Yes on 3!,’ an amendment that would raise tobacco tax in order to fund Missouri pre-schools. Amendment 3 is supported by AIM. According to information taken from the National Institute for Early Education Research’s 2015 State of Pre-School Report, Missouri is far behind neighboring states in amount of kids enrolled in programs. Missouri was only at 4% enrolled in 2015, while states like Oklahoma were at 75% and Iowa at 61%. The taxes collected from Amendment 3 would be used to increase the rate of children attending pre-school. Increasing the tobacco tax could total up to $300 million in revenue a year, and would not take away from other important issues being funded by the state’s general budget. The goal is to kick start programs now in hopes that once tobacco use begins to decline, legislators will see the importance of funding pre-education
Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri. As expected, manufacturing production rebounded slightly in September, up 0.2 percent, after declining 0.5 percent in August. Even with a gain for the month, activity in the sector continues to be weaker than desired. Along those lines, manufacturing production was flat on a year-over-year basis, with essentially stagnant growth across the past seven months. Manufacturers have struggled in their ability to increase demand, including exports, with ongoing economic and political uncertainties dampening growth. Moreover, manufacturing capacity utilization inched up from 74.8 percent to 74.9 percent, but that remained well below the 75.5 percent utilization rate seen one year ago. Meanwhile, total industrial production also recovered a little, up 0.1 percent, in September, but was down 1.0 percent over the past 12 months, pulled lower by sharply reduced mining output, down 9.4 percent year-over-year. The two regional manufacturing surveys out last week moved
Associated Industries of Missouri held another successful Missouri Tax, Business and Manufacturing this year in Columbia. Over 100 attendees traveled from around the state to learn about hot topics in business, legislation, HR, and obtain CPE/CLE credits. Aric Newhouse, NAM’s Senior VP of Policy and Government Relations, flew in from Washington D.C. to be the keynote speaker for the event. Leaders from the Missouri Department of Revenue and Missouri Department of Transportation spoke on important issues as well. The three-day annual conference allows Missouri business professionals to connect with others in their field while learning about important regulations and rules, ways to improve employee performance and retention, and tax policy. While the conference is targeted toward those in business, virtually anyone paying taxes could gain useful information from sessions involving tax developments. “This conference always attracts the best and brightest business leaders, accountants, lawyers and human resource professionals, and this year was no exception,” said Ray McCarty, president/CEO of Associated
Last night, Ray McCarty spoke to business and community leaders in Sedalia at a meeting of the Pettis County Management Association and Sedalia-Pettis County Economic Development group. He recapped the bills affecting businesses in the 2016 legislative session and gave a preview of bills Associated Industries is likely to pursue in 2017. At this meeting, attendees said farewell to Linda Christle, who is retiring after 12 years with the two groups.
Peabody Energy has been named the most responsible global mining company for 2016, recognizing the company’s excellence in environmental, social and governance standards and performance. The honors were given by a panel of international judges as part of the annual awards program by London-based Capital Finance International. The program identifies individuals and companies that demonstrate excellence in the various areas of sustainability. Judges credited Peabody as being a “pioneer in the move toward sustainable business practice” and noted that the company “essentially wrote the book on environmental stewardship for the coal industry.” “Our mission and values are foundational tenets in how we operate, and they guide all of our performance,” said Peabody Energy President and Chief Executive Officer Glenn Kellow. “We act in a sustainable manner because it is both good business and the right thing to do, but we are also pleased that such an approach doesn’t go unnoticed. Peabody commits to operating safe workplaces, restoring coal mined lands
Boeing formally opened a new composite center on its St. Louis campus that will house the company’s largest commercial aviation work statement ever placed at the site. Ray McCarty was in attendance at the event. The center is a visible representation of the company’s efforts to diversify and grow its St. Louis-area operations. The 424,000-square-foot facility will initially build composite parts for the company’s newest commercial jetliner, the 777X. Boeing has committed more than $300 million in company funds to construct and outfit the center. “Boeing has had a presence in St. Louis for nearly 80 years. We’ve built more than 12,000 fighter jets here,” said Bob Ciesla, vice president and program manager for the 777X St. Louis work. “With the opening of this new composite center, our well-trained, high-quality workforce is able to demonstrate its versatility and expertise, positioning our region for additional commercial and defense work in the future.” Production of 777X wing edge and empennage parts will
Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri. In its latest economic outlook, the International Monetary Fund (IMF) projects that world output will grow 3.1 percent and 3.4 percent in 2016 and 2017, respectively, with slower growth in the United States and other advanced economies. It points to a number of factors, ranging from Brexit concerns, to global headwinds, to political uncertainties. The IMF now estimates 1.6 percent and 2.2 percent growth in the United States for this year and next, down from forecasts of 2.2 percent and 2.5 percent in the July report. With global headwinds and a strong dollar, manufacturers in the United States have continued to struggle to increase international demand. Using non-seasonally adjusted data, U.S.-manufactured goods exportshave declined 7.1 percent year-to-date in 2016 through August relative to the same time period in 2015. Despite ongoing challenges, there were signs of progress to report in September in