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it to us anyway. This way, we have it on hand and know about the project. For those people who have questions, they can always call us and we will be happy to work with them,” Beintema said. ■ Incentives Over $10,000: Pre-approval is needed. A project cannot be started or equipment ordered or purchased for incentives over $10,000. A technical reviewer from ActOnEnergy® will review the application and help confirm project eligibility. “We make sure everything is good to go and the equipment qualifies before a company orders equipment and starts a project,” Beintema said. ■ Pre-Approval Needed Regardless Of Incentive Level: This involves all custom projects, retro commissioning and feasibility studies. Beintema said the process to submit a standard application for ActOnEnergy® incentive participation is simple. It involves submitting a filled out application with a W9 tax form. The approval process can take up to two weeks. “We then look for the company (that submitted the application) to complete the project within 120 to 150 days after the application has been submitted. After the project is completed, the company should submit an Incentive Payment Request form along with all appropriate paperwork, which can include a case study and a spec sheet from an equipment manufacturer,” Beintema said. “After that, it’s reviewed by our staff and once it’s been approved, we will send an incentive check within 60 days.” The ActOnEnergy® program also features what Beintema called “Program Allies.” These are qualified contractors listed in the program’s website and located in specific areas of Illinois who have received training and updates on the program. “These contractors know about our incentives and how to fill out our applications,” Beintema said. “They can meet with a company, talk about the company’s needs, write out proposals and figure out what each company's expense is going to be. They are a great resource.” He added that ActOnEnergy® also provides various types of education and training options for Ameren Illinois customers, including regular Webinars and a monthly newsletter. Except for some specialize training and certifications, all of our services are free of charge. “The nice thing about our job is we try to give away money (through incentives) and we are not trying to sell you anything,” Beintema said. “One area we do charge for is certain types of training and certification. An example of this would be training for those people wanting to become a Certified Energy Auditor. “People looking to attain these credentials can visit www.actonenergy.com/CEA to find out more information and to register.” Ameren Illinois also provides a commercial online store for small purchases of energy efficient products. No application is needed for these products, which are designed for small businesses looking to do quick and easy updates. Products include 10 different types of CFL lightbulbs, energy efficient controls and switches, LED exit signs, LED lamps, power strips and T8 lamps and ballasts.
International Sourcing Trends
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roviding a greater understanding of today’s international sourcing trends being felt within the business world was the third speaker topic presented at the 2012 National Broom & Mop Meeting. UPS Marketing Department Manager Kenny Mayer discussed what these trends could mean for U.S. business growth in the near future. In some good news, Mayer credited the Boston Consulting Group (BCG), a global management consulting firm and an advisor on business strategy, as stating that a recent study showed U.S. export growth, combined with increased nearshoring, could add up to 5 million jobs and $130 billion in annual exports by 2020. “According to (BCG), the U.S. is becoming one of the lowest-cost producers of the developed world, and companies in Europe and Japan are taking notice,” Mayer said. He added that BCG predicts that by 2015, the United States will hold a manufacturing cost advantage between 5 and 25 percent over Germany, Italy, France, the United Kingdom and Japan in a number of industry verticals. While China’s aver-
November/December 2012
age manufacturing costs are 7 percent cheaper, those costs do not include transportation, duties and other expenses. The low cost of U.S. natural gas offers another advantage, Mayer pointed out, with the BCG expecting domestic natural gas prices to remain 50 to 70 percent lower than in Europe and Japan. Changes being felt within domestic shipping ports were also discussed by Mayer. He noted that anticipation is swirling around the 2015 completion of the Panama Canal expansion project and how this will impact U.S. trade. For ports located in the Southeastern United States, the anticipation of greater use is already being realized. This may be attributed to global sourcing strategies and domestic distribution networks that are currently being reconsidered to capitalize on the Southeast’s fast changing port complexion. Mayer noted that U.S. Eastern Seaboard ports that had peak years in 2011 were New York/New Jersey and Savannah, GA. Meanwhile, the last peak years for the largest U.S. ports, both located on the West Coast (Los Angeles and Long Beach, CA,) were in 2006 and 2007, respectively. Business expansion project among several major retailers in the Southeastern part of the United States is also taking place, Mayer said, in an effort to gain advantage of the greater influx of goods coming to and from major ports in this part of the country. This includes a new Ace Hardware 336,000-square-foot import redistribution center opening in Suffolk, VA; and expansion in the Southeast by IKEA, an international home products company. According to IKEA, Mayer said, most of its products are made in Europe, but Asian and U.S. suppliers are increasing in number. Asian freight currently comes in through the Tacoma, WA, port, but IKEA’s network is flexible enough to shift to the Panama Canal when the need arises. Among the challenges that Mayer reported on concerning shipping practices and ports right now is that of deferred maintenance practices. “This could competitively disadvantage U.S. ports,” Mayer said. He added the American Society of Civil Engineers (ASCE) presented a bleak assessment regarding the infrastructure of U.S. ports. This involves aging infrastructure, which negatively impacts trade prospects for both ports and inland waterways. According to ASCE, approximately $30 billion in repairs are needed between now and 2020. However, only $14 billion are slated for planned expenditures. It’s been reported by ASCE, Mayer added, that unless America’s infrastructure investment gaps are filled, transporting goods will become costlier, prices will rise and the United States will Kenny Mayer of UPS become less competitive in the global market. In 2010 alone, $1.41 trillion in goods passed through U.S. ports. Losses of $270 billion by 2020 and a $697 billion drop in gross domestic product loom if infrastructure failings are not corrected. “ASCE added that the Panama Canal expansion project threatens to compound the problem,” Mayer said. “In order to accommodate the larger container ships (which will be able to pass through the Panama Canal by 2015 due to the expansion), most U.S. ports handling containerized cargo will need to invest in dredging and other infrastructure projects.” Mayer also discussed the issue of “transit time versus costs” and how economic conditions are driving behavior. Mayer stated that according to John Wheeler, of the Georgia Ports Authority, transit time isn’t as important today as costs. Big-box retailers want the best rates, while steamship Continued On Page 40