Recently, one of the most written about political issues is that of term limits. Those who favor an increase in the number of terms argue that we have lost some very talented and effective elected officials because of these limits, that it is difficult to get new high quality candidates who are willing to leave their businesses or professions for a limited time in office and that it takes a significant amount of time, perhaps the first two or more years of a successful candidate’s first term in office to learn the policies, procedures and processes necessary to develop and introduce effective legislation (the “learning curve”) and to garner the appropriate number of votes for passage. An example of this learning curve is evident in the difficulty encountered by Governor Schwarzenegger in gaining the support of the legislature during the earlier portion of his term. His lack of success in getting legislation he wanted was substantially due to his unfamiliarity with the appropriate methods of dealing with the legislature. After gaining experience and receiving a few lumps, he was able to get the 2006/2007 State Budget of $131 billion approved in record time thus achieving the first on-time budget in six years. In addition to the time it takes to learn the ropes, it is well known that during the last two years of a legislator’s or constitutional officer’s term in office a significant amount of time is devoted to campaigning for either re-election, or, because of being termed-out, seeking a new office. Based on the aforementioned information, it is reasonable to conclude that two terms in office actually provide very little time for accomplishments. Further, if one is a member of the California Assembly, each term is only two years in length (with a three-term limit), therefore the first term is spent primarily learning and campaigning with little chance to get any actual work done and a substantial part of the third term is spent campaigning. It appears that the second term is the only term where there is a possibility of significant accomplishment. If a business owner had to put up with this much diversion in his/her work schedule, it is doubtful whether the business would continue in existence. Those who oppose an increase in the number of terms argue that ineffective officeholders will be able to skate longer and that we will miss opportunities to obtain better talent. They also argue that longer term limits will attract more candidates who are primarily seeking an easy way to receive a relatively sizeable salary, a staff, a new vehicle and other perks rather than achievement-oriented candidates. After all, elected positions, unlike high-level positions in the private sector, do not require any knowledge or experience. Answer in elections? I have read numerous recent articles on the topic of term limits but have not seen one that mentions why those who drafted the United States Constitution didn’t provide for term limits. It’s not that they didn’t consider the subject. The reason that they didn’t provide for term limits is their belief that frequent elections were the best form of term limits. If you think about it, term limits actually interfere with the democratic process. They impinge upon the rights of the voters to choose their representatives. If we subscribe to the reasoning used by those who drafted our federal Constitution we don’t need term limits at all. We can merely get rid of the bad or ineffective officeholders at election time. Or, if we don’t want to wait until election time, we can organize a re-call. Why not do this? What is wrong with the premise? I submit that at the time the U.S. Constitution was drafted, the premise was valid. I also submit that the premise is no longer valid. Modern politics We need term limits because there are forces today that strongly influence the popular vote that were not present when the Constitution was adopted. I’m speaking of the tremendous influence of the very wealthy special interest groups coupled with the unfortunate consistently low voter turn-out at election time. For example, we know that the unions strongly encourage their members to “walk the precincts” gathering votes for union supported candidates and that a tremendous amount of money is spent by such unions to get the word out to their members and to influence the public at large. I believe it is safe to say that a significant number of the voters who actually do go to the polls are either union members or have been influenced by substantial media coverage in support of the union-favored candidates. Another reason why term limits are needed today is the gerrymandering that exists under the current method of drawing districts. Evidence of the connection between term limits and current district drawing was reported in the California section of the “Los Angeles Times,” July 15, 2006 edition in an article by Times Staff Writer Peter Nicholas. The article stated that Gov. Schwarzenegger suggested that the legislature surrender the power to draw voting districts in return for the possibility of staying in their jobs longer. In other words, the legislature should consider having the drawing of legislative districts performed by an independent panel of Masters (retired judges) instead of the parties themselves in exchange for the Governor’s support on increased term limits. Regardless of whether current term limits are adequate or not, it appears clear that changes are in the making and I, for one, believe it’s time. Attempts are being made at different levels of politics. Recent entries into the race include the Los Angeles City Council and the Orange County Supervisors.

SAN FERNANDO VALLEY Burbank Go Fish: McCormick & Schmick’s Seafood Restaurants Inc. is opening its first Valley location in Burbank. The restaurant, which will be located at 3500 West Olive Ave., joins 63 other locations in 24 states for the Portland, Ore.-based restaurant operator. It will open in the fourth quarter of this year. “Burbank represents a natural growth opportunity for McCormick & Schmick’s, demonstrated by the success of our five other locations in Southern California,” said Saed Mohseni, CEO of the company. McCormick & Schmick’s also operates locations in downtown L.A., El Segundo, Pasadena and Beverly Hills. Canoga Park Smile: Roscoe Boulevard and DeSoto Avenue in Canoga Park is the latest Valley intersection to receive high-tech cameras that can capture both the front and rear license plates of traffic scofflaws. It is the third in the city to have the new digital cameras, manufactured by Nestor Traffic Systems Inc. of Providence, R.I. The city is upgrading all of its existing cameras to the more accurate devices. Ten signals are scheduled to be retrofitted by September, along with the installation of 22 new signals. Sherman Oaks Seminars: Volunteers and doctors from the Sherman Oaks nonprofit the Help Group will travel to Tokyo and Osaka, Japan, this month to teach 600 educators about learning disabilities. The two-day seminars will be presented to mental health workers, speech pathologists and occupational therapists and focus on attention-deficit and hyperactivity disorder, high-functioning autism, Asperger’s Disorder and other learning disabilities. Later this month, 35 Japanese educators are scheduled to travel back to the states for more seminars. Founded in 1975, the Help Group runs camps, educational conferences and six daycare programs for more than 1,000 students. Woodland Hills New Media: The Illusion Factory cuts out the middle man when it comes to distribution of audio and video content with the opening of its New Media division. Through portals available through the division, musicians, filmmakers, and television producers can directly reach consumers through portable devices, wireless devices, the Internet, and cable and satellite television. The division sets up and maintains distribution systems for global delivery of intellectual and physical properties. “Intellectual property from all walks of entertainment are all finding substantial revenue potential as they are promoted directly to a significant sector of the emerging global marketplace who are all looking to new media for their entertainment options,” said Illusion Factory CEO and founder Brian Weiner. Van Nuys Bond Support: The Valley Industry and Commerce Association announced its support of the Clean Water, Parks and Coastal Protection Bond Act appearing on the November statewide ballot. The measure seeks to protect drinking water quality, improve water supply and protect our precious natural resources. If approved by voters, the bond measure provides $5.4 billion to fund critically needed improvements and programs to ensure safe drinking water, local water supply reliability, flood protection, and preservation of California’s natural landscapes, including parks, forests, lakes, rivers, beaches, bays, ocean and coastline. “VICA has carried on this tradition for more than 50 years, advocating for improvements in the delivery of public infrastructure, providing Los Angeles communities with critical services such as water and power,” said association Chairman Bob Scott. SANTA CLARITA VALLEY Santa Clarita Interview: A group of 27 students from the College of the Canyons had the opportunity this month to interview Violeta Chamorro, the former president of Nicaragua. The students were on a 12-day study-abroad trip to Nicaragua and Costa Rica and met with Chamorro in her home in the capital city of Managua. Chamorro, chief executive from 1990 to 1996, is the first female president in Latin America. “Not only is it an honor, but it is a once in a lifetime opportunity for our students studying the social and political dynamics of the country,” said Claudia Acosta, department chair of foreign languages at College of the Canyons, who helped organize the trip. Canyon Country Branching Out: Bank of Santa Clarita is set to open its second branch location in Canyon Country in November. The branch will be located at 21021 Soledad Canyon Road. “This location is an underserved area by other bank branches and in the center of an industrial park located in Canyon Country,” said James D. Hicken, president and CEO of Bank of Santa Clarita. “Furthermore, the branch will be adjacent to a planned 1,100-unit residential development by Newhall Land.” The Santa Clarita market has increasingly been attracting banks since the area’s independent bank, Valencia Bank & Trust, was acquired by U.S. Bank in 2002. Bank of Santa Clarita opened in 2004. CONEJO VALLEY Agoura Hills Sponsors: The city of Agoura Hills is hoping to get businesses to sign on as sponsors for its annual Reyes Adobe Days festivities on Oct. 13-15. The city said it is looking for businesses interested in entering a float or providing entertainment for the street parade that is part of the three-day festival. Agoura Hills is also seeking sponsors for a number of events that take place through October as part of Reyes Adobe Days, including a teen dance, carnival and 8K Run. For information: (818) 597-7361. Thousand Oaks Sporting Moves: California Lutheran University will dedicate its newest athletic facility, Gilbert Sports and Fitness Center, in October. The $18 million center is one of several new facilities the university is adding on an 80-acre site north of Olsen Road. It joins the George “Sparky” Anderson Baseball Field, which was dedicated in January, the Samuelson Aquatics Center and soccer, track and field facilities. CLU plans to begin construction on the Ullman Baseball Stadium next year. The Gilbert Center will house two gymnasiums including a 1,500-seat main gym, an event center, a fitness center, dance studio, classrooms and other offices and venues. The center was in part financed by Jack Gilbert, chairman of the board of TOLD Corp. and his wife Carol, who recently pledged $5 million for additional academic buildings and a presidential residence. Talk: California Lutheran University has announced the speakers for its Corporate Leaders Breakfast Series this fall. James D. Power IV and Chris Denove of J.D. Power & Associates will kick off the series in September. In November, Kinko’s founder Paul J. Orfalea will speak on his business philosophy. In February, CLU will host a panel of health care executives including T. Michael Murray, president of St. John’s Regional Medical Center, Jim Sherman, president of Los Robles Hospital and Medical Center and Gary Wilde, president of Community Memorial Hospital. Camarillo Blue All Over: Technicolor Home Entertainment Services announced that its new next-generation DVD manufacturing and distribution system is fully operational. The company has three HD DVD replication lines and three Blu-ray Disc replication lines in place to meet early studio and consumer requirements. In addition, Technicolor installed dedicated state-of-the-art mastering and testing equipment for both formats. The facility also houses complete printing, custom packaging, and distribution facilities to support North American retail operations. HD DVD debuted in April and Blu-ray Disc debuted in June. New Post: Michael S. Lavenant has been named president of the Camarillo Breakfast Rotary Club. Lavenant, 36, is an attorney with the Encino defense firm Landegger & Baron and vice chair of the business advocacy committee for the Camarillo Chamber of Commerce. SIMI VALLEY Simi Valley Honored: Dr. Otto Austel, a member of the Rotary Club of Simi Valley, has received the Distinguished Service Award from the Rotary Foundation, the club’s highest recognition and one of only 50 awarded worldwide this year. A 15-year member of the club, Austel has traveled extensively in South America, Europe, Africa and Asia establishing clinics, installing water systems and creating reading materials. ANTELOPE VALLEY Lancaster Proposed Law: The Lancaster City Council is considering a municipal ordinance that would regulate massage parlors in the city. The action would toughen standards for the establishments, some of which have been cited for prostitution and drug sales, the city said. It would also require businesses to obtain a special massage therapy license and operator permit in additional to a regular business license. No date has been set for City Council action. The city held a community meeting Aug. 1 to discuss the issue.

What’s the worst kind of snake bite you can get? Why not leave the response to the man whose special effects company created the snake bite wounds for the upcoming movie “Snakes on a Plane.” “The cottonmouth,” says Todd Masters, a 20-year veteran in the special effects field. And why? “Because I say so,” Masters responds with a laugh. “No, the worst looking is the cottonmouth, which has bursting skin. The black mamba is more internal but it’s quicker and more thorough.” That’s the type of information one learns working on what will be among the most anticipated movies of the year. Most of the summer blockbusters have come and gone from the multiplex Disney’s “Pirates” sequel the one exception and now it’s time for “Snakes,” which hits theaters Aug. 18. The owner of MastersFX, with studios in both Arleta and Vancouver, Masters described working on the “Snakes” set as not just another day at the office what with the live snakes and hearing the “most horrific” stories from snake wrangler Jules Sylvester about what happens to a person who has an unfortunate encounter with a poisonous snake. From those stories, Masters let his imagination run wild on the look of the snake bites. He and makeup artist Monica Hubert also researched photos of bites to hands and feet the traditional places where someone would get bitten. “We didn’t find many faces,” Masters said. Principal filming for “Snakes” was completed nearly a year ago but in March a directive came down from New Line Cinema for additional scenes to bring the movie’s rating to an R from PG-13. Masters was among those gathered in a post-production facility with director David Ellis and others where without a script or game plan they discussed how much more hellish a flight they could make for star Samuel L. Jackson and his co-stars. “It was all of us pitching what was the worst thing that could happen,” Masters said. “We came up with all sorts of situations that we started adding to the movie.” Away from the “Snakes” set and out of the hands of the filmmakers was a grass roots Internet campaign spawning websites, blogs, trailers, even songs by fans that helped make it a sensation prior to its release in theaters. Perhaps it’s the simplicity of the title or campyness of the plot that make people take interest in “Snakes” but whatever the attraction, Masters likes how fans show their enthusiasm. It may not be the future of film marketing but it works well for popcorn summer fare like “Snakes,” he said. And he likes how the filmmakers and Jackson embraced the Internet campaign and haven’t shunned their fans, Masters said. “It seems to me if you can put some power into the audience and drive their interest it’s a win-win, as long as you are not looking for art,” Masters said. Digital Test At sunset, two couples enjoy martinis on the porch of a lakeside cabin. There is no dialogue. There is no sound at all, in fact, and quickly the scene shifts to one in which the couples are seated at dinner toasting with glasses of wine. Made by Walt Disney Studios and titled “The Other Project,” the short film may never see commercial release. But select scenes were screened Aug. 5 by the Hollywood Post Alliance for producers, editors, cinematographers and other below-the-line workers in the film and television industry during a day-long seminar on efficient work flow methods. Howard Lukk, executive director of production technology at the Walt Disney Studios, made “The Other Project” for executives of the media business units of The Walt Disney Co. to see how well four digital film cameras worked under on-location conditions and how the finished product compared with that from a traditional 35mm film camera. The film has a simple plot two couples enjoying time at a lakeside cabin but executed under what would be the most difficult filming conditions. That was why, Lukk explained, the actors drink a lot in the film, as a test to pick up the translucence of the liquid in the glasses. The dinner takes place in candlelight to test how the digital cameras work with a single light source, he said. While Lukk still finds film to be “king” in his book due to its portability, cameras that don’t need to be tethered to a server and its ability to create gorgeous pictures, the point of making the film was to tell a story of how the cameras worked in a real location environment. “You have to do a test with the hair and the makeup and looking at the dailies otherwise you won’t know what the traps are,” Lukk said. Daily News Blogs Got a little Hunter S. Thompson, H.L. Mencken or Matt Drudge in ya? Daily News officials are hoping to take what they call “citizen journalism” mainstream with the launch of valleynews.com, a Website that allows anyone to post a story, an opinion or even a news flash. The site, which will launch on Aug. 21, grows out of an increasingly popular trend, blogging, that has peppered the Internet for some time now. Organized into eight hubs covering the different communities of the San Fernando Valley, it will allow ordinary folks an opportunity to post stories or pictures about their pets or kids, their communities or views, just about anything that inspires them. The content will not be edited (save for an automated swear-word filter) but Daily News staffers will monitor it, pulling what they believe are the most interesting of the contributions onto a home page. Those stories too will appear in the Daily News community editions published weekly in print form. Three additional community editions, for Santa Clarita, Burbank/Glendale and Antelope Valley, launch on Oct. 5. Ron Kaye, Daily News editor, even foresees issues and events brought to light on the Website landing on the front page of the daily newspaper. “One of the things that excites me is that it allows for a real community, and you can reach all the people you can’t reach now,” Kaye told a meeting of the Livable Communities Council of the Economic Alliance of the San Fernando Valley recently. Addressing the group, Kaye noted that Internet sites like youtube.com, flicker.com and myspace.com, broadcast news and blogs are changing the way that news is delivered. “The newspaper is going to be boiled down to a very different product, and nobody knows what that is,” he said. For the meantime, what is clear is that folks in all walks of life are playing a bigger role in chronicling their own histories. But perhaps more important, providing such a forum, Kaye hopes, will help to unite communities, bringing them together around issues and causes and giving them a voice and a public forum. Perhaps ironically, it was that promise of a voice that seemed to most concern those assembled at the Livable Communities meeting. Many of those in attendance expressed concerns about the potential to disseminate information that is mean spirited or just plain wrong. “Who’s going to have the most influence in a public communication?” Kaye responded. “The people who are informed.” Annie Hundley, who was formerly with Rocky Mountain News, will serve as editor of valleynews.com, working with a staff of about seven who also work on the print editions. Posting will be free on the site. Advertising will drive revenues. Senior Reporter Shelly Garcia contributed to this column. Staff Reporter Mark R. Madler can be reached at (818) 316-3126 or at

A move within Congress to change the eligibility requirements of a type of Small Business Administration loan could make millions of dollars available to biotech start-ups in the Valley. The Senate Small Business and Entrepreneurship Committee advanced a proposal that allows small companies that are majority-owned by venture capitalists to receive money from the Small Business Innovation Research program, a potentially-lucrative funding avenue that awarded $415.7 million to small California businesses in 2004. Under the current rules, the grants are available only to small businesses that are at least 51 percent owned by individuals. The new regulations would allow companies funded mainly by private investors access to the money. The change could mean a boon for emerging biotech and medical device companies. The start-ups rarely make money initially in the research and development phase, so most are funded by venture capitalists that provide seed money. Victor Hwang, president of Larta Institute, a Los Angeles firm that helps emerging businesses find SBIR funds to enter the marketplace, said the rule change, if passed by the full Congress, would certainly help more companies enter the pipeline. “They’re trying to figure out a way to make the rules make sense in the start-up world,” he said. The SBIR program was created by Congress in 1982 to encourage small businesses to develop technology. To reach the goal, the government offered qualified small businesses grants and other incentives to offset the financial risks usually associated with research and development. Funds would come from 11 federal sources including the Environmental Protection Agency, NASA and the departments of energy, commerce, defense and homeland security. Originally, there were no limits on size of companies. But through a series of legal and bureaucratic procedures, the rules were changed in 2003 to limit the funds to businesses majority-owned by individuals, not venture capitalists or other private investors. Edsel M. Brown, Jr., the assistant administrator for the SBA’s Office of Technology in Washington, D.C., said the alteration vastly altered the number of companies that could apply. “A small business has to be at least 51 percent owned by individuals,” he said. “Venture capital can own up to 49 percent currently.” That meant that in order to participate in the SBIR program, companies must be American-owned, independently-operated, for-profit and have fewer than 500 employees. It also meant many budding high-tech businesses, such as biotechs, were out of the running, Hwang said. “If you were a small company, you were actually penalized for getting venture capital dollars,” he said. The proposed change essentially reverses the 2003 decision, Brown said. It is the product of heated debate among the SBA, Congress and small business advocacy groups, he said. “The venture capital industry has been lobbying to get the regulation changed so they can have greater participation,” he said. “It was a real hot issue for us.” The adjustment, however, is far from a shoo-in and will likely go to conference committee, Brown said. “When the House comes out with theirs and they conference it, we don’t know what will come out,” he said. “But if the rules are changed, it’s probably going to change the portfolio of those in the program.”

Earl Scheib Inc. reported net income rose five-fold to $2.9 million or $0.65 per diluted share for the company’s fiscal fourth quarter, compared to earnings of $452,000 or $0.10 per share in the comparable period a year ago. Sales at the Sherman Oaks-based company decreased 5.6 percent to $12.9 million in the fourth quarter due to about five fewer retail paint shops in operation and a decrease in car volume, the company said. In the fourth quarter of fiscal 2005 the company’s revenues totaled $13.6 million. For the year, Earl Scheib earned $3.0 million or $0.67 per share, versus a net loss of $236,000 or $0.05 per share in fiscal 2005. Revenues rose 6 percent to $48.8 million for fiscal 2006.

It’s pronounced Row-Haas and it’s causing a headache for the electronics industry. RoHS, or Reduction of Hazardous Substances, went into effect July 1 and requires electrical equipment and components sold in Europe be free of lead and five other toxic substances. Companies large and small in the San Fernando Valley have made adjustments to ensure their products and parts coming from suppliers meet the standard. While specific dollar figures are sketchy, industry-wide compliance may reach into the billions. Overseas sub-contractors for semiconductor supplier Semtech Corp. invested substantial amounts of money on developing new materials to coat semiconductors and for the equipment to do the work. “We’ve had to throw an enormous amount of engineering resources and qualification resources at it as well for all these new materials,” said Kevin Caffey, vice president of quality and reliability for the Camarillo-based company. Across the Valley in Van Nuys, Scott Alyn of Electronic Source Co., a printed circuit board manufacturer, invested $60,000 for a new wave soldering machine to make RoHS compliant product. Another drawback is the space taken up to segregate the lead-free product from circuit boards using lead solder. “It’s a just another part of the business that continually evolves,” Alyn said with a tone of resignation in his voice. The European Union adopted the restriction in 2003 and provided for a three-year period for companies to comply. The directive orders no lead, cadmium, mercury, hexavalent chromium, and two flame retardants be used in new electronic equipment manufactured or sold in the European Union. Some of the products include large and small household appliances, some information technology and telecommunications equipment, consumer products, lighting, and electronic and electrical tools. Exempt products include those used for military and national security purposes, medical devices, monitoring and control instruments, switching and signaling equipment, and network management for telecommunications. The EU standards are the start of a spreading trend. In January, California begins enforcement of the Electronic Waste Recycling Act and its provision banning four hazardous substances from devices using cathode ray tubes or liquid crystal displays, such as televisions and computer monitors. Restrictions similar to those in Europe are being readied for China and Korea. Meeting the European standards is a “Herculean task,” said Richard Crowe, director of the California Circuits Association, a trade group for circuit board makers. While much of the industry has a handle on how to switch over to make RoHS-compliant product, the effectiveness of new alloys for solder components remains unknown. “My personal observation is there is going to be failure,” Crowe said. “That’s part of the learning curve the industry is going to climb in order to do this correctly.” At Power-One the search for a replacement solder containing no lead began three years ago. Eighteen months ago, the company began its effort to make sure the 25,000 components going into its power conversion products met the European standard. As it’s the seller who has the burden to meet the standard, companies like Power-One are watchful of what suppliers give them, asking for certification and precise information of what it is in their parts. In a few instances, the Camarillo company didn’t feel comfortable with parts supplied from overseas and in turn had them lab-tested in the U.S., said Fred Heath, Power-One’s RoHS marketing manager. “In turn, some of our customers are asking for a complete break down of not only the six banned substances but everything that’s in them,” Heath said. Fulcrum Microsystems found itself in an advantageous position at the release of the EU directive. Founded in 2000 and headquartered in Calabasas, the interconnect device supplier for the computing and networking industries was in its product design phase and able to incorporate the European standard, said its Vice President of Operations Cozette Darby. “The vendors we have worked with have been outstanding in helping us achieve compliance,” Darby said. At Semtech, a pure mat tin and nickel/palladium/gold plating or coating replaced the lead-based plating applied to the leads on a semiconductor. The new plating material was engineered, qualified and tested and then new equipment installed to do the work on a mass scale, Caffey said. “A plating bath for a sub-contractor is a very expensive piece of equipment,” Caffey said. “It’s a plating line that is typically 100-feet long and costs millions of dollars per unit. Every sub-contractor we work with had to put these lines in.” Even the work of board mount shops changed as the specialized platings require a higher temperature to bond them to boards found in electronic equipment. “That’s why we used tin lead – it’s a low-temperature solder,” Caffey said. There is no agreement in the electronics manufacturing industry on the merits of the new standard and whether they will do any good in making it easier to recycle electronic products and reducing the risk of exposing workers to lead and other hazardous substances. The CCA’s Crowe calls the standards very political and questions whether the benefits are worth the cost to manufacturers. Alyn, of Electronic Source Co., foresees a day when most if not all electrical components are lead-free and predicts aerospace and military customers will be the most affected by that change. “They will need to maintain a leaded process because it’s more reliable and they will be in trouble because they won’t find leaded components,” Alyn said. Fulcrum Microsystems fully supports the new standard. “From our perspective it’s ethically the right thing to do and we’re not viewing it as a negative,” Darby said.

Manufacturing is alive and well in the greater San Fernando Valley. To be sure, it is far different than in its heyday, but after “The Purge” of the first half of the ’90’s, manufacturing is still the second largest employment sector in the Valley. Many vibrant companies that survived are financially strong, very well managed and growing. A vital component of a strong foundation for the future of our communities is having a strong manufacturing sector. Our Valley has some fresh names and faces in the manufacturing sector and combined with a few that have new industry focus, these players mix well with the strong survivors to give all of us a reason to look again at preserving and enhancing the manufacturing landscape in the Valley. We are a society awash in information, yet the discipline of manufacturing seems to still suffer from a lack of understanding by the general population. What it is that manufacturers offer to a community is still fuzzy in the minds of most. Rhetoric from governance at all levels touts a sincere interest in manufacturing, yet politicos still struggle with the metrics of the totality of the contributions made by manufacturing. How about climbing into the trenches with some of those from the manufacturing sector, survivors as well as new faces? Let’s hear what they have to say about the business conditions of today, about politicos and bureaucrats, about workforce issues and what they think are their biggest challenges. Business Conditions of Today “Product lifecycles continue to shrink and the time-to-market from concept is a more and more critical aspect of competing. Strategy and judgment mistakes are more costly than ever before. The demands on time, and exactly how you use it, are the entrepreneur’s biggest challenge.” “There is an expert around every corner on just about every topic. There are so many ready to impart wisdom and knowledge to us struggling manufacturers. The ranks of “expert consultants”, and those ‘committed-to-your-success’ nonprofit corporations continues to swell. No wonder the general public thinks we manufacturers are a lame lot, waiting to be served up as the next meal for a foreign competitor. Global competition has much more to do with government competence than our operational incompetence. The truth is that the manufacturer of today has to be great just to stay afloat, too bad the perception is otherwise. Securing competent new employees is our biggest challenge.” “The attitude of the local community used to be positive. The recent quotes from Jack Kyser (Los Angeles County Economic Development Corp. Senior Vice President and chief economist) go double for manufacturers. Our biggest challenge is just staying here, rather than taking one of the offers from outside of the Valley” Politicos and Bureaucrats “It is amazing that the people we elect have such little understanding of how manufacturing affects the quality of life in a community They still understand those fundamentals in the Midwest, but here in California it has been lost. The field has changed and our needs are much different than they were a generation ago. But it seems that they do not know that, or worse, don’t care. We are not inept and irresponsible and we are not just one training program away from global competitiveness. If they really want to help, they should study the business model and then listen to what we have to say about how things can be improved.” “Politicos throw money at the wrong programs because they just don’t know what manufacturing means to a community. I guess not enough of them ever had to sweat a payroll or really make something. If you only provide a service it really is tough to relate to the complexities of manufacturing. Our biggest challenge is securing enough capital to sustain our growth” “The level of competence shown by environmental compliance personnel is shocking. I do not understand why such an important task is performed by someone that does not even know what the regulations are that they are inspecting. I dare not complain to the bureaucratic agency because they hold my fate in their hands. It is micro-tyranny at its finest. Our biggest challenge is getting a level playing field for all the compliance issues.” “Government, at all levels, is bolstered by bureaucrats that are overpaid and cling to the status-quo, yet run for cover when accountability is defined for them. Our biggest challenge is finding people that are skilled.” Workforce Issues “The illegal immigration debate ignores basic human truths. We get the appropriate forms of ID and demand that I-9’s are on file for every new hire. We create new jobs every month and monitor our hiring policies diligently. Everybody thinks that because of the type of company we are, we look the other way in our hiring practices. We do not endorse the hiring of illegals, but we do endorse hiring those that want to work hard.” “We are now doing training programs that we never had to do before. The schools are not doing the job regarding educating young people about how to work together, how to be a team and how to work with people of other cultures or beliefs. The pool of new prospective employees needs to learn what respect and common courtesy are all about. Our biggest challenge is staying where we are rather than going to a more business friendly area.” “What the schools are turning out is a disgrace. Our biggest challenge is hiring the people we need to keep up with our growth.” Brad Ward is president and CEO of the Sherman Oaks-based Small Manufacturers Association of California

Thousand Oaks-based Rockwell Scientific Co., a developer of laser and other light sensors for surveillance, has been acquired by the Los Angeles defense electronics firm Teledyne Technologies Inc. for $167.5 million in cash. The acquisition is not expected to result in any job loses and the company plans to keep both of Rockwell’s Ventura County factories open, said Jason VanWees, vice president of corporate development and investor relations for West L.A.-based Teledyne. “It’s a nice stable place with stable management that lives in the area. It’s something we like,” he said. Under the terms of the agreement expected to close this fall, Rockwell’s parent companies, Rockwell Automation and Rockwell Collins, will continue to fund research performed by the company. Teledyne will also license some Rockwell Scientific intellectual properties to Rockwell Automation and Rockwell Collins. Rockwell develops optical sensors, infrared systems and lasers, mainly for the aerospace and defense industries. More than 50 percent of sales in 2005 were through contracts with the U.S. government. Among its products is an infrared device for the U.S. Army that allows soldiers to identify threats on the battlefield. For fiscal year 2005, the company reported revenue of $114 million. The company started in 1962 as the research arm of Rockwell International and opened its location in Thousand Oaks two years later. The company spun off in 2001 and was split between Iowa-based Rockwell Collins and Rockwell Automation of Milwaukee. Today, it has 420 employees between its plants in Thousand Oaks and Camarillo and office space in North Carolina. Because the Ventura County plants are close to Teledyne’s own headquarters, they will likely remain open, VanWees said. “We like those locations,” he said. “We’re in L.A. ourselves. It’s easier to manage a business that’s in your backyard than if it’s a thousand miles away.” Buying spree The Rockwell purchase is the latest in a buying spree for Teledyne, which provides electronics components and instruments for airlines, industrial clients and the military. Less than a week after the Rockwell deal was announced, Teledyne subsidiary Teledyne Instruments Inc. paid $30 million for a majority interest in the Florida electronics company Ocean Design Inc. Last summer, it paid $26.5 million for the radio frequency and amplifier developer Cougar Components Corp., based in Sunnyvale, Calif. It also acquired the oceanographic product company Benthos and the microwave unit of Phoenix-based Avnet. In a statement, Teledyne President and CEO Dr. Robert Mehrabian said the products in the Rockwell line will dovetail well with technology already under development by the company, such as microwave components and subsystems for military radar, electronic warfare and communication systems. “Rockwell Scientific possesses advanced technology related to multiple Teledyne operations and will become a core business of Teledyne,” he said. For the second quarter ended June 30, Teledyne reported revenues of $348.1 million, up 14.8 percent compared to last year. Earnings per share also increased 25.5 percent to $0.59.

You can’t separate the two education and business. As you can read in our special report on manufacturing in this issue, manufacturers still have problems finding qualified employees. And it’s not just manufacturers who struggle. Those hiring in many other industries, including my own, have horror stories about employees who are so poorly prepared for the work force that it’s almost unbelievable. Without good workers, no business can function at its best level. The issue has reached a peak recently with Mayor Villaraigosa’s focus on reform of the Los Angeles Unified School District. Improving education is one of the biggest issues in the academic, political and business worlds. The Business Journal recognizes this and for the first time will publish a special report and sponsor an event in October recognizing companies and organizations that do well in promoting education locally. The Education Leadership Awards I hope will prove enlightening and show us that education is not being ignored in our local business community. There are companies that care. They provide resources to make education better and believe in promoting education within their own organizations. We will honor these firms and organizations at an Oct. 4 event and publish the special report in our Oct. 9 issue profiling these companies and their programs. We’ll tell the stories of their successes. The categories that we will focus on: Best Employee Tuition Reimbursement Program; Best Student Loan Program; Best Scholarship Program; Best Student Intern Program; Best Mentoring Program; Education Leadership Award given to an individual; Best Program to Support Education; Best Business Education Program; Best Job Training Program and Best Employee Training Program. Companies large and small are eligible to be nominated for the awards. Please tell us about people out in our community who are doing good things. A nomination form can be downloaded from our Website (sfvbj.com). Click on the “events” category. Deadline for nominations is Sept. 15. A committee of people from the community knowledgeable about education will help me choose the winners. If you don’t want to fill out the form, just give me a call and tell me what company or organization you admire and I or other staff members will fill out the form for you. Call me at (818) 316-3125 or e-mail me at [email protected] . Thanks for promoting education. Business Journal Editor Jason Schaff can be reached at (818) 316-3125 or at [email protected] .

Shoe Pavilion Inc. reported net income for the second quarter ended July 1 rose 43 percent to $1.0 million or $0.10 per diluted share, up from $704,000 or $0.10 per share in the second quarter of 2005. Sales rose 26 percent to $31.4 million with comparable store sales rising 3.9 percent. In the second quarter a year ago, Shoe Pavilion reported revenues of $24.9 million. Sherman Oaks-based Shoe Pavilion said that excluding charges connected with the settlement of a lawsuit, the company would have earned $1.1 million or $0.11 per share.