Population drop hurts MI influence

Michigan confronts additional losses in Congressional representation and federal funding in the wake of 2010 Census figures showing a 10-year population loss of .6% -- the only state population decline during that period.

In total, Michigan's population dropped to 9.88 million from 9.93 million in the 2000 Census. It was the state's first decline in the past 100 years, spurred by struggles in its core industries and the economic recession.

More than damaging the state psyche, the census results are used to proportionately dole out billions of dollars in federal funding for state and municipal projects. They also apportion the number of seats each state has in the 435-seat U.S. House of Representatives. In the latter category, Michigan lost one seat of representation, reducing its number of seats to 14, according to Census data.

The loss follows a 30-year trend, as the state has lost at least one seat in the House since 1980; Michigan lost two seats in 1990. Taken together with a modest 3.3% population increase in Illinois and virtually flat trend in Ohio, the entire Great Lakes region could potentially lose clout in Congress over issues of mutual interest. Moreover, the results are also used to determine the make-up of the electoral college, meaning presidential elections can be impacted when national results are considered.

MI Perspective: The 2010 Census data confirm what most residents knew by observation: Michigan is losing people. It should, however, lend new urgency to the need for a united campaign to the the country know Michigan is still alive and kicking. The talking points should includes efforts --and successes -- toward economic diversification, the states abundant natural and human resources, and overall merits in quality of life. A modest proposal from MI: A "Come Home to Michigan" campaign coordinating communication on the above themes. Not a PR initiative, but a coordinated effort applying the offices and resources of business, government and academia. Together we can do this.

In other 2010 data, the Census Bureau reported that U.S. population now stands at 308.7 million. The most populous state was California (37,253,956); the least populous, Wyoming (563,626). The state that gained the most numerically since the 2000 Census was Texas (up 4,293,741 to 25,145,561) and the state that gained the most as a percentage of its 2000 Census count was Nevada (up 35.1% to 2,700,551).

Regionally, the South and the West picked up the bulk of the population increase, 14,318,924 and 8,747,621, respectively. But the Northeast and the Midwest also grew: 1,722,862 and 2,534,225.

Wind turbine production pact set

Approximately 100 new clean-energy jobs are projected for Michigan as the result of a power purchase agreement between Consumers Energy and Traverse City-based Heritage Sustainable Energy.

The agreement will result in the first large-scale production of utility-scale wind turbines fully made in Michigan. It was celebrated by the parties, together with wind turbine manufacturer Northern Power Systems and key supplier Merrill Technologies Group, at a press conference in Lansing.

"Development of the wind energy sector is a key piece of Michigan's strategy to diversify our economy and create clean energy jobs," said Governor Granholm. "The agreement announced today helps to solidify the state's emerging leadership in this industry."

Northern Power Systems will build the direct drive wind turbines in its Saginaw, Michigan facility where it will employ up to 137 workers by 2014. The company also plans to use substantial supply chain resources in Michigan, including strategic supplier Merrill Technologies Group. The turbines will be shipped to Heritage Sustainable Energy's wind farm located in the Upper Peninsula's Garden Peninsula where 80 direct and indirect jobs will be created to support the project development, installation, and operation phases. Heritage Sustainable Energy will then sell the power it generates to Consumers Energy.

"We now have an original equipment manufacturer planning to produce a significant number of top-of-the-line, utility-scale turbines right here in Michigan," said Andrew S. Levin, Acting Director of the Michigan Department of Energy, Labor & Economic Growth (DELEG). "This deal is packed full of potential jobs - manufacturing jobs, construction jobs, technician jobs - and it will help reduce our reliance on foreign oil."

The Michigan Public Service Commission approved the Power Purchase Agreement for Consumers Energy Company and Heritage Garden Wind Farm on Nov. 19, 2010, and on the same date approved another Power Purchase Agreement between Consumers Energy and Heritage Sustainable Energy for another Michigan wind farm. The Power Purchase Agreement contracts are for 28.6 megawatts (MW) and 12.3 MW, respectively. Heritage Garden will be constructed in Delta County; Heritage Stoney Corners II will be constructed in Missaukee and Osceola counties.

Granholm signed the renewable energy standard into law in October 2008 as a part of a comprehensive energy package. The standard calls for 10% of the state's energy to come from renewable sources by 2015.

"Consumers Energy is expanding its renewable energy portfolio as part of a long-term strategy to provide value to its 1.8 million electric customers with a balanced energy strategy. We're making substantial investments in new renewable energy resources so we'll be able to provide more 'green' energy to our customers, help the state's environment, and create jobs at the same time," said John Russell, president and chief executive officer of Consumers Energy.

"The Heritage Garden Wind Farm project exemplifies all of the intended goals of the state's renewable energy standard: Michigan-based renewable energy generation supplied to Michigan utilities, investment in local economies via job creation, material purchases and an enhanced tax base; and investment in Michigan technology and manufacturing. Heritage Sustainable Energy is proud to be a leader in utility-scale wind farm development right here in our own backyard," said Martin Lagina, president and chief executive officer of Heritage Sustainable Energy and native son of Iron Mountain, in Michigan's Upper Peninsula.

Granholm has long realized that wind energy presents a great opportunity to build on Michigan's advanced manufacturing expertise. Granholm used federal American Recovery and Reinvestment Act of 2009 (Recovery Act) funds to help Michigan businesses diversify into high-growth, clean-energy industries through the Clean Energy Advanced Manufacturing (CEAM) program. Merrill Technologies Group was awarded $3 million through the program to purchase some of the equipment necessary for the manufacturing of large-scale wind turbines. During the last year, Merrill has created a supply chain of Michigan companies to manufacture turbine components, and is investing in full-scale production for other projects. The CEAM dollars provided an incentive for private investment by Michigan companies.

According to the U.S. Department of Energy, Michigan is projected to create more than 30,000 jobs in the wind manufacturing sector alone. Research by DELEG indicates the state could potentially generate 16,564 MW of power on land, and an additional 448,756 MW offshore. Many of the challenges of traditional offshore wind, such as tides, strong currents and saltwater, do not exist in the Great Lakes.

Redevelopment projects gain investment

Gov. Granholm this week announced that the Michigan Economic Growth Authority approved incentives for 11 brownfield redevelopment projects in Lansing, Detroit, Grand Rapids, Flint and Hamtramck as well as incentives for six companies to expand in Michigan. All told, the projects announced today mean $475.7 million in new investment and 2,997 jobs in the state.

“The brownfield redevelopment projects announced today are the latest examples of Michigan’s efforts to repurpose blighted, contaminated or functionally obsolete properties across the state,” Granholm said. “These incentives will spur redevelopment of properties that have often been underutilized for years, transforming our urban centers and fueling growth in communities across the state. At the same time, these incentives help companies to create new job opportunities as they expand in Michigan.”

The Michigan Economic Growth Authority board also approved incentives for six businesses to expand in the state. Those companies are:

• Force by Design, a new-to-Michigan technical services company that provides cloud-computing solutions, plans to invest $430,000 to establish a new office in East Lansing, Michigan, generating 50 direct jobs and 40 indirect jobs. The MEGA board approved a state tax credit valued at $230,985 over three years.

• Otto Bock Polyurethane Technologies Inc., a German-based company that specializes in orthopedic applications and special polyurethane applications in the automotive and furniture sectors, plans to invest $13.3 million in a facility in Rochester Hills, Michigan, creating up to 233 total jobs, including 98 directly at the company. The company received a state tax credit valued at $671,656 over five years.

• Piston Automotive LLC, a tier one automotive supplier of primarily chassis and interior parts, plans to invest $15 million to expand in Redford, Michigan, creating up to 467 total jobs, including 135 directly at the company. The company received a state tax credit valued at $889,293 over five years.

• Plasan Carbon Composites Inc., a manufacturer of carbon composite automotive components, plans to invest $3.2 million to open a Customer and Technical Development Center in Wixom, Michigan, creating up to 78 total jobs, including 36 directly at the company. The company received a state tax credit valued at $697,007 over seven years.

• Ring Screw LLC (Acument Global Technologies), a producer of mechanical fastening products and services for transportation markets, plans to invest $5.1 million to expand its facilities in Fenton, Grand Blanc Township and Sterling Heights and retain its headquarters in Michigan. The project is expected to create up to 263 total jobs, including 150 directly at the company. The company received a state tax credit valued at $874,651 over five years.

The 11 brownfield projects will generate $406 million in new investment and create or retain 1,401 jobs. Among those projects are a new four-story, mixed use space, development of the Seidman School of Business and Center for Entrepreneurship, and development of an urban market in Grand Rapids. In Detroit, the projects include a new single-story retail center, a mixed-use medical office building and a 1,000-space parking garage, a multi-phase project that will redevelop the former public housing site historically known as Charles Terrace, and the renovation of the former Detroit Free Press office and printing facility.

The governor also announced that Autocam Corporation, an independent manufacturer of high volume, precision-machined specialty alloy components, plans to amend a Standard MEGA incentive it received in June 1997 to expand manufacturing operations in Kentwood, Michigan, bringing 200 new jobs to the area over the next five years. Those new jobs are expected to pay an average of $988 a week.

Starting next month, the MEDC will be under new leadership. Republican Gov.-elect Rick Snyder joined Granholm yesterday to announce that Michael Finney will replace Greg Main as the agency's next chief executive officer starting in 2011.

Snyder is expected to take a different approach to economic development than the outgoing Granholm, who concentrated her efforts on attracting new business to the state.

Instead, Snyder has said that more needs to be done to help already-existing businesses in Michigan to succeed and expand. Expect future MEDC announcements to reflect that philosophy.

Economic recovery still uneven

Comerica Bank's Michigan Economic Activity Index fell two points in October, returning to a level of 87 for the third time in the last four months. October's level is up 16 points, or 23%, above the cycle low of 71 reached in July 2009.Year-to-date the Index has averaged a level of 85, up 11 points, or 15%, from the average for all of 2009.

"October's reading reversed the two-point increase in our Index in the prior month, tracing out a flat trend in the Michigan economy over the past four months," said Dana Johnson, Chief Economist at Comerica Bank. "As has been the case in the national economy over the second half of the year, growth in Michigan has been sluggish and uneven. Looking ahead, the Michigan economy is poised to make modest gains in coming months, against a background of gradually accelerating national growth."

The Michigan Economic Activity Index equally weights nine, seasonally-adjusted coincident indicators of real economic activity. These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays.

Luster of GM mark grows again

It's been a long time since anyone boasted, "what's good for General Motors is good for the country." However, the carmaker's emergence from bankruptcy, reinvestment in Michigan, and dedication in-demand styles and features provide at least enough good news to merit renewed calls to "buy American."

A successful initial public offering by GM last month, succeeded, among other things, in driving down the federal government's ownership share in the company, from a majority 51% to 26%. In the process, the Treasury Department recouped $8.7 billion on the sale of some 350,000 government-held shares.

Fortunes among all three major automakers have taken a turn for the better, but recent news from GM shines especially bright. On Thursday, for example, Governor Granholm today hailed General Motors' announcement that it will create 1,000 new engineering and development jobs in Michigan over the next two years as part of its vehicle electrification program. The announcement was made in Detroit where, the governor was on hand at the Hamtramck Assembly Center, production site of the new Chevrolet Volt.

"The state of Michigan is proud to continue our long partnership with GM as it drives toward a leaner, greener future," Granholm said. "As we work to diversify our state's economy both within the auto industry and outside of it, electric vehicles will play a major role in re-establishing Michigan as the North American center of automotive manufacturing."

In June 2009, GM identified Michigan as one of three potential locations for its new, small-car assembly project. Rather than submit a traditional incentive package for this single project, the Michigan Economic Development Corporation proposed a "Global Solutions" Michigan Economic Growth Authority incentive, which covered all manufacturing investments by GM in Michigan. In total, the incentive package retains 20,000 workers and will generate a total investment of up to $2.5 billion in GM's Michigan manufacturing operations. The Advanced Battery Credits bill, passed by the state legislature with bipartisan support in 2008, helped GM cement its decision to make Michigan the center of its vehicle electrification strategy.

"In little more than a year, Michigan has become the new center of the world's electric vehicle and advanced battery industry," Granholm said. "Michigan's aggressive efforts to develop the advanced battery sector means that 18 of the global industry's best-practice companies are or will soon be operating here. Our plan to diversify the state's economy has achieved tangible results, both inside the auto industry and outside of it."

To date GM has invested more than $700 million primarily in eight Michigan facilities alone, to retool, upgrade, or build the manufacturing and research and development infrastructure needed to build the Volt. GM plans to produce 10,000 Volts for the 2011 calendar year, and will increase U.S. production capacity for Volt to 45,000 units in 2012. Also in August 2009, the U.S. Department of Energy awarded grants to GM to accelerate the deployment of battery pack manufacturing in Michigan. These grants for Volt suppliers and related facilities enabled high-volume production for electric drive and battery manufacturing.

The Detroit-Hamtramck Assembly Center employs more than 1,100 hourly and salaried workers. Co-located in Detroit and Hamtramck, the plant covers 3.6 million square feet and is the only GM plant in Detroit. In addition to the Volt, the facility builds the Cadillac DTS and Buick Lucerne.

Companies to invest $421 million

Governor Granholm yesterday announced that companies will invest $420.6 million in Michigan, creating and retaining 6,293 jobs (1,395 total new jobs) for state workers.

The Michigan Economic Development Corporation is helping seven companies grow in Michigan and backing six brownfield redevelopment projects.

"We continue making significant progress toward diversifying Michigan's economy," Granholm said. "The expansions announced today demonstrate that businesses across a wide spectrum are choosing Michigan over other states for new growth opportunities. These are the types of projects that will help transform our economy and create good-paying jobs for our workers."

The MEGA board approved incentives to win the following projects for Michigan over competing states and countries:

- A.J.M. Packaging Corporation - The major manufacturer of converted paper products, including paper plates and grocery sacks, plans to invest $28.3 million to upgrade its facility in Southgate and expand into the foodservice market. The company is expected to create up to 292 total jobs, including 125 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 167 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $564,772 over five years to convince the company to expand in Michigan over a competing site in New Jersey. The city of Southgate is considering an abatement in support of the project. http://www.ajmpack.com/

- Bright Automotive Inc. - The new-to-Michigan developer of the IDEA, a brand new, 100 mile per gallon plug-in hybrid electric vehicle, plans to invest $11 million to open a technical center in Rochester Hills, which will serve as one of its locations for research, design and development of the energy-efficient vehicle and related vehicle technologies. The project is expected to create up to 530 total jobs, including more than 200 directly at Bright Automotive. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 326 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.3 million over five years. http://www.brightautomotive.com/

- Gerdau MacSteel Inc. - A manufacturer of SBQ steel bar products for the automotive, heavy truck and other industries with facilities in Blackman Township, Monroe and Napoleon Township plans to invest $67 million to help secure the company's long-term viability and reach new market segments. The project is expected to retain up to 778 jobs directly at the company. The MEDC estimates increased economic activity created by the project has the potential to retain an additional 1,227 indirect jobs for a total of 2,005 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $9.2 million over five years to help convince the company to expand in Michigan over a competing site in Arkansas. http://www.gerdaumacsteel.com/

- IT Group LLC d/b/a Member Driven Technologies - The information technology service provider for credit unions plans to invest $6.4 million to expand and build a second data center in Southfield. The project is expected to create up to 233 total jobs, including the potential for as many as 101 directly at the company. The MEDC estimates the increased economic activity created by this project has the potential to create an additional 132 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $557,092 over five years to convince the company to expand in Michigan over a competing site in Colorado. The city of Southfield is considering an abatement in support of the project. http://www.mdtmi.com/

- Michigan Automotive Compressor Inc. - The joint venture between Toyota Industries Corporation and DENSO, which manufactures automotive air conditioning compressors, plans to invest $72 million to upgrade its facility in Parma. The project is expected to retain up to 2,025 total jobs, including 562 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to retain an additional 1,463 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $4.9 million over five years to convince the company to expand in Michigan over competing sites in Georgia, Ohio, Canada, China, Germany and Japan. The village of Parma anticipates granting an abatement in support of the project. http://www.michauto.com/

- Montaplast of North America Inc. - A global leader in plastic injection molded products for the auto industry plans to invest $2.3 million to grow its technical and R&D capabilities in Auburn Hills. The project is expected to create up to 50 total jobs, including 25 directly at the company. The MEDC estimates the increased economic activity created by this project has the potential to create an additional 25 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $324,801 over five years to encourage the company to expand in Michigan over a competing site in Kentucky. The city of Auburn Hills is considering an abatement in support of the project. http://www.montaplast.com/en/

- Toyota Boshoku Corporation Inc. - The manufacturer of automotive interior systems, air and oil filters, and power train systems for a variety of customers, including Toyota Motor Corporation and General Motors, plans to invest $3.2 million to consolidate and expand its prototype operations in Novi. The project is expected to create up to 75 total jobs, including up to 40 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 35 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $209,736 over five years to encourage the company to expand in Michigan over a competing site in Kentucky. The city of Novi is considering contributing to administrative fees and infrastructure improvements to support the project. http://www.toyota-boshoku.co.jp/en/index.html

- Chrysler Group LLC - The automotive manufacturer that designs, manufactures and assembles vehicles under the Chrysler, Dodge, Jeep and Ram Truck brand names has been approved by the MEGA board for a $45 million Plug-in Electric Vehicle Engineering credit to support the company's $137 million investment in development of a four-passenger City Electric Vehicle off the Fiat 500 platform for the 2013 model year. Separately, the company plans to redevelop the Sterling Heights Assembly Plant (SHAP). Although SHAP is currently operating, it was scheduled for closure in 2012 without new investment and renovation. A state brownfield Michigan Business Tax credit valued at $10 million will support the project, which includes exterior and interior site demolition, site improvements and construction of a new 425,000 square-foot paint shop. The project will retain approximately 1,809 jobs and generate $300 million in investment, part of an $850 million investment in the plant and surrounding stamping plant previously announced in October 2010. http://www.chryslergroupllc.com

- Everest Campus LLC - A state brownfield credit valued at $5 million will support a project to redevelop the property formerly known as the LeValley Buick-Pontiac-Cadillac-GMC dealership in Benton Harbor. The project will include the demolition of unoccupied buildings and the construction of a new three-story office building that will be part of the new Whirlpool headquarters. Fisherman's Park along the St. Joseph River will also receive enhancements. The project will generate $27.5 million in new private investment.

- Whirlpool Corporation - A state brownfield credit valued at $7.7 million will support a two-phased project that will build a new headquarters campus on Main Street in Benton Harbor. The project will include demolition of existing unoccupied buildings, and the construction of a new three-story office building and a one-story retail building. The project will generate $41.3 million in new private investment and retain 868 jobs. http://www.whirlpool.com

- City of East Lansing - State and local tax capture valued at $3 million will support a brownfield project to demolish two functionally obsolete, single-use two-story structures and construct an eight-story mixed-use building on the property located at 211 Albert Avenue. The first floor will utilize restaurant and commercial space and the upper floors will contain 42 apartments. The project is expected to generate up to $9.7 million in new private investment and create up to 45 new jobs.

- City of Cheboygan - State and local tax capture valued at $486,609 will support a brownfield project to acquire Main Street properties adjacent to the Straits Area Federal Credit Union's current main branch for future expansion of operations in downtown Cheboygan. The project is expected to generate up to $2 million in new private investment and create up to 10 new jobs.

- City of Port Huron - State and local tax capture valued at $710,791 will support a brownfield project to redevelop the former Sperry Department Store Building which is a historical structure located at the center of Port Huron's central business district. Renovations include pursuing LEED certification, replacing all of the mechanicals, adding a new roof, rebuilding the windows, restoring the entire façade and replacing the elevators. The lower lever of the building will include up to 15 incubator office sites to help Michigan entrepreneurs and innovators. The project is expected to generate up to $12.9 million in new private investment and create up to 160 new jobs.

"The state's talented workforce and competitive business climate help make the case that Michigan is a great place for companies to invest and grow," MEDC President and CEO Greg Main said. "Those factors, in combination with the state and local economic development tools that are part of our aggressive economic strategy, help ensure their growth well into the future."

The Michigan Economic Growth Authority, the state's response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Since January 2010, nearly 335,000 new and retained jobs have been announced as a result of the MEGA, brownfield and additional incentive programs.

Michigan brownfield programs provide incentives to invest in property that has been used for industrial, commercial or residential purposes and to keep that property in productive use or return it to productive use. Brownfield incentives can be used for functionally obsolete, blighted or contaminated property.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.

For more information on the MEDC's initiatives and programs, visit the website at http://www.michiganadvantage.org/.

Economy hit two-year high in September

Comerica Bank’s Michigan Economic Activity Index rose two points in September to a level of 89, the highest Index reading since June 2008.

September’s reading is up 14 points from the year-ago level, and up 18 points (25%) from the Index cyclical low. September marks the seventh month of consecutive double digit year-on-year increases in the Index. Year-to-date the Index has averaged 11 points, or 15%, above the Index average for all of 2009.

“Over the three months through September, our Index showed a renewed uptrend after having stalled from February through June,” said Dana Johnson, Chief Economist at Comerica Bank. “My sense is that Michigan’s economy was reaccelerating along with the national economy as the summer drew to a close. Looking ahead, the Michigan economy should continue to make modest gains over the last quarter of 2010, against a background of sluggish but sustained national growth.”

The Michigan Economic Activity Index equally weights nine, seasonally-adjusted coincident indicators of real economic activity. These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays.

Snyder leads new charge for turnaround

Like many Republicans donning new-found mantles of power this morning, Michigan's next governor Rick Snyder faces the task of converting from angry outsider to an office holder responsible for breaking gridlock and brokering change.

On paper the task will be made easier by virtue of other Republican wins last night that put the GOP in charge of the entire state government.

Snyder struck an ealy conciliatory note in his acceptance speech last night, saying that
"Our culture is broken in this state. We've been beaten up for too many years. We've become too negative. It is time for us to stand up as Michiganders and say here is a vision for the future, here is a plan, here is an attitude of action in a positive, forward-looking inclusive fashion. And by doing that, we will create more and better jobs, we will keep our young people here and will be a great state again."

The victory by Snyder, a venture capitalist and former computer industry executive, was a welcome outcome for many business leaders who have called for an overall climate change in the state. Among them are members of Business Leaders for Michigan, a business roundtable that had backed Snyder's platform as consistent with it's own blueprint, the Michigan Turnaround Plan.

"BLM believes Michigan requires fundamental changes in its fiscal, budget, tax and
economic development policies," a grroup statement said in August. "Mr. Snyder’s track-record in finance, business and economic development along with his willingness to seek practical, collaborative solutions best positions him to turn around Michigan."

The current director of BLM, Doug Rothwell, is said to be among possible key members of Snyder's transition team at this writing. Rothwell was head of the Michigan Economic Development Corporation under Gov. John Engler. Gov. Granholm was on her way to Detroit this morning to meet with Snyder and discuss steps toward making the transition of power as smooth as possible.

Two cheers for the Big Three

An historic $2.1 billion total investment by companies in Michigan -- including some $850 million from Ford -- is expected to create more than 6,000 new jobs for state workers while retaining more than 216,000 others.

It's all part of a package through which tax-break czars at the Michigan Economic Development Corporation are aiding the growth of 16 companies and one brownfield redevelopment project. Included are major investments by Ford, General Motors and Chrysler, which analysts say bolsters the auto industry's long-term future in Michigan. Combined, the projects are expected to create 6,182 total new jobs, retain 216,420 jobs and generate $2.1 billion in new investment in the state.

Governor Granholm's perspective: "This historic investment means thousands of new jobs for our state and the retention of tens of thousands more. Our continuing efforts to bring new investment and jobs to Michigan are paying dividends."

MI perspective: Two cheers for the Big Three, their fight to return to solvency and new investment in Michigan. Why not three cheers? First, because the "Big Three" clearly ain't what they used to be, and what they used to be wasn't so great anyway. Victims of their own mismanagement but also buffeted by flighty consumer trends ("We want our gas guzzlers! No we don't! Yes we do!") and international political conflicts (e.g., oil crises), these companies have survived largely with mercy from a $17.4 billion government bailout, foreign investment (e.g., Fiat) and union concessions. Congrats for their new attention to advanced engineering and hybrid cars, though "fuel efficiency" still doesn't roll smoothly off their tongues. Second, it must be noted in context that Michigan lost more than 790,000 jobs in past 10 years, and the new auto industry investments do nothing to lessen the importance of the state's diversification into new areas such as life sciences, homeland defence, advanced engineering and entertainment.

Still, the new investments are great news for The Great Lake State. Here are some of the MEGA-approved incentives to win the following projects for Michigan over competing states and countries:

Cequent Performance Products Inc. - The designer, manufacturer and marketer of a broad range of aftermarket accessories for the transportation industry plans to invest $3.4 million to broaden its research and development and sales operations in Plymouth Charter Township. The project is expected to create up to 115 total jobs, including the potential for as many as 60 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 55 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $896,963 over six years to convince the company to expand in Michigan over a competing site in Indiana. http://www.trimascorp.com/performance.htm

Chrysler Group LLC - The company that designs, manufactures and assembles cars and trucks under the Chrysler, Jeep, Dodge and Ram Truck brands is considering a $1 billion investment in its Sterling Heights Assembly Plant and the Global Engine Manufacturing Alliance (GEMA) in Dundee to produce future models predicated on receiving inducements from the state as well as local governments. The project is expected to retain up to 92,920 total jobs, including up to 20,000 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 72,290 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 billion over 20 years to encourage the company to expand in Michigan over a competing site in Ohio. The city of Sterling Heights is considering an abatement to support the project. http://www.chryslergroupllc.com

Creative Foam Corporation - The designer and manufacturer of foams and plastics for customers in the automotive and medical industries plans to invest $1.5 million in an expansion in Fenton to manufacture materials to supply the renewable energy market, with the final product being a core kit that is used in the production of wind turbine blades. The project is expected to create up to 144 total jobs, including 63 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 81 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $362,386 over five years to encourage the company to expand in Michigan over a competing site in Colorado. http://www.creativefoam.com/

Dematic Corp. - The designer and manufacturer of automated material-handling systems plans to invest $10.9 million to expand its R&D, administrative services, sales and in-house production in Grand Rapids. The project is expected to create up to 910 total jobs, including 505 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 405 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $3.2 million over five years to encourage the company to expand in Michigan instead of competing sites in Kentucky and Utah. http://www.dematic.com/na/Home/Dematic-North-America/page30322.htm

Dokka Fasteners Inc. - The new-to-Michigan manufacturer of hot-formed bolts primarily for the wind industry plans to invest $21 million to establish a manufacturing, coating and distribution operation in Auburn Hills. The company is expected to create up to 168 total jobs, including 90 directly by the company. The MEDC estimates the increased economic activity created by the project may create an additional 78 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.5 million over seven years to convince the company to expand in Michigan over competing sites in Missouri and Illinois. The MEDC is also supportive of EDJT funding in the amount of $60,500 and a State Education Tax abatement valued at $28,000. http://www.arvidnilsson.com/DOKKA-FASTENERS.aspx?ID=245

Dynamic Captioning LLC - The provider of broadcast-quality captioning, encoding and subtitling services to media companies within the film and television industries plans to invest $554,000 to establish a service center in Grand Rapids. The project is expected to create 56 total jobs, including 40 directly at the company. The MEDC estimates the increased economic activity has the potential to create an additional 16 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $169,629 over five years to encourage the company to permanently locate in Michigan over a competing site in New York.

EnovateIT LLC - The manufacturer of computer workstations for the health care industry plans to invest $4 million to expand its design and production operation in Canton Township. The project is expected to create up to 387 total jobs, including 160 directly at the company. The MEDC estimates increased economic activity created by the project has the potential to create an additional 227 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over six years to help convince the company to expand in Michigan over a competing site in Ohio. http://www.enovateit.com/

Eovations LLC - The new-to-Michigan venture will commercialize a new, next-generation composite building material called EoTek. The company plans to invest $16 million to establish an R&D and production center in Bay City. The project is expected to create up to 64 direct jobs at the company within the next five years. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.3 million over seven years to convince the company to expand in Michigan over a competing site in Ohio.

Ford Motor Company - Ford plans to invest $850 million to secure global product platforms and operational activities statewide. The project is expected to create 1,200 new jobs and retain up to 115,400 total jobs, including 28,000 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to retain an additional 88,600 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $909 million over 15 years to encourage the company to expand in Michigan over competing sites in India, South Africa, Europe and Asia. This MEGA credit will replace three MEGA credits that were previously awarded to Ford Motor Company. http://www.ford.com

General Motors LLC - The automotive OEM plans to amend the global MEGA incentive it received in June 2009 to add a Hybrid Electric Vehicle battery and vehicle engineering and development operation at the existing battery development center at the Warren Technical Center. This new addition is expected to generate an additional $112 million investment, and could create up to 900 additional jobs at the Warren Technical Center and retain an additional 8,100 jobs statewide. This investment and additional jobs are dependent upon the development of a successful, competitive business case. http://www.gm.com

GM Subsystems Manufacturing LLC - The wholly owned subsidiary of GM plans to amend a Retention MEGA credit it received in February 2009 to expand in-house support for battery module and pack assembly at its Brownstown facility. The expansion is expected to generate an additional $39.7 million investment and retain 150 additional jobs. This investment and additional jobs are dependent upon the development of a successful, competitive business case. http://www.gm.com

Mountain Valley Recycling LLC - The new-to-Michigan recycler of plastic waste into sustainable, post-consumer resins plans to invest $29.5 million to establish a facility that will incorporate new, state-of-the-art green technology in Sterling Heights. The project is expected to create up to 1,303 total jobs, including 396 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 907 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $5.1 million over seven years to encourage the company to expand in Michigan over competing sites in Oregon, Arizona and Nevada. http://www.mvrecycling.com/

P3 North America Inc. - The Troy-based provider of professional management services and engineering solutions for alternative power train and advanced vehicle technologies plans to invest $332,000 to expand in the areas of product development and management services for electric device technology and laboratory testing for infotainment systems and other connected vehicle technologies. The project is expected to create up to 129 total jobs, including 65 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 64 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $485,958 over five years to convince the company to expand in Michigan over a competing site in New Jersey. http://www.p3-group.com/northamerica/enn

Powertrain Integration LLC and New Eagle LLC - Powertrain Integration, the Madison Heights-based provider of a broad range of systems, engine components and services for niche auto OEMs, plans to issue a contract to New Eagle, located in Ypsilanti, to generate a unique software code for use in an automotive engine control module. Powertrain Integration will invest $2 million to commercialize the only large-bore, spark-ignited engine available to the on-highway market, which will create up to 41 jobs. Based on the MEDC's recommendation, the MEGA board today approved a state Technology Collaboration tax credit valued at up to $300,000. http://powertrainintegration.com/

Roush Clean Tech LLC - The developer of alternative energy solutions to fleet vehicles plans to invest $2.1 million to establish an R&D center in Plymouth Township. The project is expected to create up to 85 total jobs, including 54 directly at the company. The MEDC estimates the increased economic activity created by this program has the potential to create an additional 31 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years to convince the company to expand in Michigan over competing sites in North Carolina, Florida, Nevada, Oregon, Minnesota, Texas, Ohio, Indiana and Wisconsin. http://www.roushcleantech.com/

Yanfeng USA Automotive Trim Systems Inc. - The manufacturer of components for major U.S. auto OEMs plans to invest $17 million to expand to accommodate additional work in Harrison Charter Township. The company is 51%-owned by SAIC (China's 3rd largest automaker) in partnership with Visteon. The project is expected to create up to 466 total jobs, including 131 directly at the company. The MEDC estimates the increased economic activity created by the project has the potential to create an additional 335 indirect jobs. Based on the MEDC's recommendation, the MEGA board today approved a state tax credit valued at $1.1 million over seven years to encourage the company to expand in Michigan over a competing site in Missouri.

"From new-to-Michigan companies to automotive leaders who have called Michigan home for decades, our innovative economic development toolbox is providing a framework that makes a strong business case for future investments," said MEDC President and CEO Greg Main.

Economist: Jobs picture to brighten

Michigan's economy is growing and will add jobs next year, according to the latest analysis from Comerica Bank's chief economist.

Dana Johnson cautions, however, that the state's growth is only in the 1% to 2% range and is being driven by the recovery in manufacturing, including auto production.

"There has been a partial recovery in Michigan," Johnson told some of the bank's customers during a luncheon at the Livonia Marriott on Thursday. "It's not a brilliant outlook, but it's certainly a lot better than what we have been seeing."

He said the growth will continue as long as the national economy expands. However, the rate of growth for Michigan will be about 1% slower than the rest of the country because many residents are leaving to find jobs in other states, Johnson added.

The jobless rate in Michigan has fallen but is still in the double-digits, inching down to 13% in September. But Johnson forecasted that the state's unemployment rate will come down sharply next year. Johnson also had a positive outlook for the national economy, predicting growth of 3% next year.

Small business lending gets new injection

Governor Granholm and the U.S. Treasury Department today announced allocations expected to deliver some $792million in new small business lending through innovative local programs that help entrepreneurs expand their businesses and create jobs.

Seed money for the public-private partnership dubbed the State Small Business Credit Initiative is a central component of the Small Business Jobs Act President Obama signed into law last week to help unlock credit and provide targeted tax cuts for small businesses.

"Today's announcement that Michigan will receive $79.2 million [under SSBCI] is welcome news for Michigan's small businesses," said Granholm. "Federal support for successful public-private partnerships like the Michigan Supplier Diversification Fund will lead to new private sector investment that will create jobs."

Under the SSBCI, states are offered the opportunity to apply for federal funds for programs that partner with private lenders to extend greater credit to small businesses. States are required to demonstrate a minimum "bang for the buck" of $10 in new private lending for every $1 in federal funding. Accordingly, the $79.2 million funding commitment that the federal government will make in Michigan for this program is expected to support $792 million in additional private lending. Nationwide, the program is expected to support $15 billion in additional private lending.

"Innovative local initiatives that support small business lending are under extraordinary pressure because of state budget difficulties," said Treasury Secretary Tim Geithner. "These funds will provide vital support to successful state-level programs that help local entrepreneurs obtain the credit they need to put more Americans back to work. President Obama fought hard for the Small Business Jobs Act because it will help ensure that small businesses continue to strengthen our nation's recovery and serve as critical engines for job creation."

The SSBCI allows states to build upon existing, successful state-level small business lending programs, including examples such as collateral support programs, Capital Access Programs (CAPs), and loan guarantee programs:

-- Collateral Support Programs for Small Manufacturers: Collateral support programs help viable businesses that are struggling to get credit because the value of the collateral they hold has fallen, often due to the decline in commercial real estate values. These programs - which set aside funds to augment collateral the borrower already holds - provide banks greater confidence in extending credit to these borrowers, particularly in some of the communities hardest hit by the economic downturn.

-- Capital Access Programs: CAPs, which are already up and running in over 20 states, are loan portfolio insurance programs in which states provide a matching contribution to bank loan loss reserves when lenders extend credit to qualified small businesses. These reserve enhancements allow lenders to expand credit to new borrowers at a time when many of these lenders might otherwise pull back.

-- Loan Guarantee Programs: Under loan guarantee programs, states provide partial guarantees on certain small business loans to give lenders greater confidence to extend credit.

If a state does not have an existing small business lending program, officials can establish one in order to access this funding. States must provide plans for utilizing their funding allocations to Treasury for review and approval.

The amount of SSBCI funds a state is eligible to apply for is determined based upon formulas in the Small Business Jobs Act that take into account each state's respective unemployment rate and decline in employment relative to other states.

In addition to the State Small Business Credit Initiative, the Small Business Jobs Act includes a number of important provisions to support small business job creation. The Act includes eight new small business tax cuts that went into effect immediately upon becoming law last week; creates a $30 billion Small Business Lending Fund to help small and community banks provide new loans to small businesses; extends and expands existing Small Business Administration loan programs; and delivers other important benefits for small businesses.

Technology Center opens in Detroit

CIBER Inc. has hired 150 highly skilled information technology professionals to join its expanded Detroit Global Solutions Center (GSC), in Southfield. CIBER is investing more than $8 million in this facility over the next seven years, with a commitment to add more than 700 jobs.

The company was founded in Dearborn, Mich., in 1974, and is now a $1 billion global IT services and management consulting company with more than 8,000 employees.

The new jobs are the direct result of a partnership between the state of Michigan, the City of Southfield and CIBER, responding to needs of clients who want expert consulting services.

"CIBER provides IT services to major corporations, and this center will serve clients not only in Michigan but across the U.S., and potentially around the world," said David Peterschmidt, CEO of CIBER. "These are sophisticated jobs, requiring employees with a deep knowledge of specific technologies and business acumen. With the type of industries historically present here in Detroit, there is a deep base of talent that we are able to tap into."

"We want to thank the State of Michigan, the Michigan Economic Development Corporation and the City of Southfield for working with us in setting up the structures and incentives for both CIBER and our employees," continued Peterschmidt. "We will expand our presence here, and continue to bring additional jobs to meet our clients' needs."

The Michigan Economic Development Corporation (MEDC) recommended and the Michigan Economic Growth Authority (MEGA) Board approved a state tax credit earlier this year to support the project. The City of Southfield also provided incentives.

"These jobs represent the future of Michigan employment - knowledge workers creating value for clients around the globe," said Greg Main, President and CEO of the MEDC. "We're proud that CIBER selected Michigan as the location for this new facility, and congratulate them for being ahead of plan, already bringing 150 new jobs since just the beginning of the year."

The Michigan Economic Growth Authority (MEGA), the state's response to interstate competition for company expansions and relocations, may provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Since January 2010, more than 71,200 new and retained jobs have been announced as a result of the MEGA program.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.

GM invests $145 million in Buick plant

General Motors announced it will invest $145 million in the Orion Assembly Center plant, Orion Township, to produce Buick's new small car and compact sedan, the Verano. The investment will increase the workforce by 350 employees, to 1,550.

In June 2009, GM identified Michigan as one of three potential locations for its new, small-car assembly project. Rather than submit a traditional incentive package for this single project, the Michigan Economic Development Corporation proposed a "Global Solutions" Michigan Economic Growth Authority incentive that covered all manufacturing investments by GM in Michigan. In total, the incentive package retains 20,000 workers and will generate a total investment of up to $2.5 billion in GM's Michigan manufacturing operations.

"To have a once-shuttered plant operating at full speed again shows what can happen when the public and private sectors partner to create new investment and jobs," Governor Granholm said in a visit to the facility. "Michigan is proud to partner with General Motors as it continues its drive toward a cleaner and greener future."

Besides the Buick Verano, the Orion Assembly Center is also being retooled to manufacture a second small car which will be launched next year. GM will be the only automaker, domestic or foreign, to build small cars in the United States for the domestic market. The Buick Verano, the first compact car offered by Buick in 20 years, will launch in 2012.

Previously designed to build GM midsize sedans, the Orion Assembly Center in its 27-year history has built more than four million cars. The plant also received a Clean Corporate Citizen designation from the state of Michigan, the first GM facility to receive such recognition.

Wellness programs boost productivity

A study of employees at a west Michigan hospital showed some of the most unhealthy workers that University of Michigan researchers had ever seen.

But in four years, the workplace wellness plan at Allegiance Health in Jackson had fueled some of the biggest improvements in employee health that those same researchers had ever witnessed.

The researchers were studying the hospital system to evaluate the health risk changes in employees in the four years after Allegiance implemented a workplace wellness program. The "It's Your Life" program was unique because it included all employees, not just unhealthy ones, said Douglas Wright, a researcher at the U-M School of Kinesiology Health Management Research Center, and lead study author.

Most wellness programs start with a health assessment and only the employees who meet pre-determined benchmarks of poor health qualify for additional assistance, Wright said.

It's Your Life began in 2002, and Allegiance offered employees $200, spread over 24 paychecks, to take a health risk appraisal, be screened, attend three counseling sessions and complete three health learning modules. In subsequent years, the company lowered the incentive to $190 but gave it to employees in the form of a gift card that was filled with small amounts of money each time the employee completed another requirement. Having immediate access to the money earned, rather than waiting for it to show up in a paycheck, appeared to be associated with increased participation.

Researchers collected data from three different employee groups based on the number of times each participated. Over four years, participation increased and the number of high risk employees decreased in all groups, Wright said. The yearly participation rate rose from 38% the first year to 77% by the fourth year. After four years, the four-time participants decreased in 10 of 15 health risks, the two-time participants decreased in nine of 15 risks, and the one-timers decreased in 12 of the 15 risks.

"In the four-time participation group, the percent low risk people went from 51% percent to 64%, that's a huge jump," said Wright. "It's a big deal when you see that much improvement."

Allegiance started with 51% of its employees classified as low risk, which is much lower than normal, and 19% as high risk, which is above average, Wright said. The number of high risk workers fell to about 12% over the four years. Studies have shown that employees who are high risk cost more in health care and lost productivity.

One of the reasons the program was so successful was because it was comprehensive, said Dee Edington, director of the HMRC. Edington has appointments in the School of Kinesiology and the School of Public Health.

In other words, the program helped keep healthy workers from getting sick because it included them in the wellness plan, he said. "It's a lot cheaper to keep employees low risk than to move them from high risk to low risk," Edington said.

The project was designed to be implemented in three stages. The first stage uses Allegiance as the pilot to test the effectiveness of the wellness program. The second phase expands It's Your Life to six of the largest employers in the area, and the third stage expands the program to all employers in the county and any community organizations that want to participate.

A cost analysis is pending to see if the savings are great enough to justify the incentives and the cost of the wellness programs, said Wright.

The study appears in the Journal of Health & Productivity.

Michigan munis getting a bad rap?

Investment advisers say that despite the state's history of economic turmoil and ongoing risks, Michigan-issued financial products represent a good opportunity for invetors.

For example, "Michigan Municipal bonds are being painted with a broad stroke, while important and positive aspects of the bonds are going unnoticed,” says Leon LaBrecque, managing partner and founder of LJPR, LLC, a Troy-based firm managing more than $350 million in assets.

With the turmoil in the markets, LaBrecque and business partner, Brad Reynolds, CFA, have observed a historic shift in the premium on municipals, particularly Michigan munis.

Munis are selling at a vast premium to Treasuries," he says. "We think this premium is unusual and provides some opportunities." Following are some observations from a new white paper detailing what LaBrecque terms the "real story" on MI Municipal Bonds:

-- There is apparent mis-pricing of risk in Michigan munis. The entire market is being painted with one broad brushstroke. Michigan, as I can attest first-hand, is a very diverse state in geography and economy.

-- Ratings are helpful, but not determinative. We’re carefully looking at the issues and the municipalities individually.

-- The muni insurers are in turmoil. In fact, many of the insurers are junk status themselves.
Tax rates are going up for many investors, and this makes munis more attractive. Of particular interest to me is the Health Care Bill, which adds a 3.8% Unearned Income Medicare Contribution tax on dividends, interest and capital gains in 2013. Muni interest is exempt, making the tax-equivalent yield even more attractive to high bracket individuals.

-- The interest rate environment is unique. The yield curve is at a record steepness, and we see opportunity while staying reasonably short as protection against inflation.

-- Quality is king. With most munis priced the same, a savvy analyst can find very strong issues providing yield very similar to those that deserve a risk premium. There appear to be quality good yield issues.

-- Liquidity is queen. Municipalities are facing revenue crunches, probably in the magnitude on and average of -10- 15% for 2011 and 2012 and maybe longer. They need money and will borrow. We think BABs are a short term solution to the liquidity issue.

-- The market is dislocated and somewhat inefficient. We are seeing ‘fire-sale’ prices on some issues. In addition, we see that the lack of a central unified market presents opportunistic buying. We buy on the bid (wholesale) for our portfolios: the spreads tend to be pretty big now.
To view Leon’s and Brad’s entire White Paper, click here. To view their current executive summary of the Michigan Municipal Market, click here.

LJPR, LLC is an independent wealth management firm headquartered in Troy, MI. For more information about the firm, including the firm’s blog, visit their site. Leon C. LaBrecque is an attorney, CPA, CFP®, and CFA (Chartered Financial analyst). Leon is CEO and chief strategist for the independent wealth management firm, LJPR. Brad Reynolds, CFA is a partner in the firm and the firms’ chief investment officer. Together, Leon and Brad have been analyzing and investing in (to the tune of about $100M) individual Bonds, particularly Michigan municipal bonds. Leon LaBrecque’s direct e-mail is leon.labrecque@ljpr.com. The Firm’s telephone is 248-641-7400.

Education's role in recovery outlined

Higher Education: A Solution to the Michigan Crisis" is the topic of a free public forum at 3 p.m. Thursday, Sept. 30, on the campus of Western Michigan University in Room 210 of the Bernhard Center.

Speakers include Michael Boulus, executive director of the Presidents Council of State Universities of Michigan; David Hecker, president of the Michigan affiliate of the American Federation of Teachers; and Dr. Howard Bunsis, chair of the Collective Bargaining Congress of the American Association of University Professors.

Commentators for the forum will be two University faculty members, Dr. Ron Kramer, professor of sociology, and Dr. C. Dennis Simpson, WMU professor of physician's assistant. Introductions will be made by WMU President John M. Dunn; Dr. Peter Krawutschke, Faculty Senate president; and Dr. Paul Wilson, WMU-AAUP president.

The event is sponsored by the WMU chapter of AAUP and the WMU Faculty Senate.

For more information, contact Dr. Allen Zagarell, WMU-AAUP vice president, at allen.zagarell@wmich.edu or (269) 345-0151.

Engineering fair set for Kalamazoo

Representatives from dozens of employers, including several Fortune 500 companies, will be participating in the 15th Annual Engineering and Applied Sciences Fair from 10 a.m. to 3 p.m. Thursday, Sept. 30, at Kalamazoo's Western Michigan University.

The fair does not require prior registration and will take place at the University's Parkview Campus near U.S. 131 and Parkview Avenue in Kalamazoo. Although open to the public, it is intended primarily for current WMU students and recent alumni who are studying in or have graduated from engineering-related fields.

During the fair, attendees will have a chance to meet representatives from a variety of organizations, make initial contacts, and discuss current and projected opportunities for full-time employment as well as co-op and internship positions. They should dress in professional attire and bring copies of their resumes.

Among the employers participating in the 2010 fair will be: Adecco Technical and Engineering, Consumers Energy, Domtar, Gentex, Halliburton, Innotec, Kellogg, Parker Hannifin, Perrigo, Post Foods, Michigan Civil Service Commission, Stryker, U.S. Army Health Care and Verso Paper. Employers wishing to join those organizations may still do so by visiting www.experience.com/emp/cf_details?fhnd=4616 and registering to participate.

Chris Sell, WMU career development specialist in Career and Student Employment Services, says networking with potential future employers is a natural part of career planning for students.

"Any chance students have to highlight their course projects, leadership activities and co-op experiences strengthens the prospect for employment," Sell says. "And WMU students do well compared to many others. Employers are consistently impressed with the quality of our students and their ability to hit the ground running."

For more information, visit www.wmich.edu/career/events/career_fairs.html or contact Chris Sell at christopher.f.sell@wmich.edu or (269) 276-3263.

MDs address business of health care

Michigan physicians will be in the spotlight during an all-day conference Saturday, Sept. 25, at Western Michigan University to promote awareness of the importance of health care and overall well-being of Americans while exploring health care's business side.

Sustaining the Business of Health in America is the focus of the conference, which begins at 8:30 a.m. in Schneider Hall's Brown Auditorium on WMU's Kalamazoo campus and will include remarks by WMU President John M. Dunn. The conference is being offered free of charge and will let doctors and other providers have the floor in discussions about why health care is so expensive in the United States, why the cost is rising so quickly and what new legislation passed by Congress will do.

"For the first time, I'm trying to bring to this conference physicians as speakers, to hear the physicians' opinions," says Dr. Andrew Targowski, WMU professor of business information systems, director of the Center for Sustainable Business Practices and conference co-chair. "The public may not know that those bills are designed mostly by lawyers, and physicians are rarely consulted about health care."

Physicians will join others in a rare presentation mix that also includes business leaders, educators and information technology professionals. Keynote speakers include Dr. Tom George, state senator for the 20th District and a former gubernatorial candidate, who will speak on "Examining the Health Care Reform Bill, 2010," and local family practice physician Dr. Gary Ruoff, who will address "What Is Happening to Caring Physicians?" Dunn will speak on "The Medical School and Revival of Kalamazoo," while Targowski's talk is titled "Well Being, Wisdom and Health Care." Local heart surgeon Dr. Michael Khaghany will be among those serving on a panel of experts.

"Without the input from primary care physicians, any health care program cannot be successful," says Ruoff, a conference co-chair.

Health care is a huge business, Targowski says. At $2.4 trillion each year--three times the budget for the U.S. Department of Defense--it is the largest business in America. But monumental problems with the system remain.

Health care's high cost is exacerbated by large and disproportionate administrative costs, the soaring price of malpractice insurance and unnecessary procedures triggered by the threat of often-groundless lawsuits, Targowski says. Also contributing to the problem are expensive, end-of-life procedures that don't so much save lives as extend the process of dying.

Still another problem involves the inadequate compensation paid by insurers, particularly for primary care physicians, which has resulted in a persistent dwindling of the pool of family doctors, Targowski adds. That trend is sure to become a much larger problem in the years ahead.

"The family physician is disappearing right now," Targowski says. "Only 2 to 3 percent of medical students sign up for family practice specialization because their services are very poorly paid by any kind of insurance company."

The conference also will feature exhibits of medications, products and systems as well as a best papers competition open to business professionals, faculty and students. The event is sponsored by WMU's Haworth College of Business Center for Sustainable Business Practices and the WMU's new Center for Health Information Technology Advancement.

More information is available online at www.wmich.edu/business/healthcare/.

Homebuilding recovery seen for 2011

With houses financing already cheap and prices low relative to income, the Michigan housing sector is poised for a recovery next year, believes Dana Johnson, Comerica Bank's top economist.

Johnson's latest Michigan Economic Brief, released yesterday, notes that homebuilding is a volatile and cyclically sensitive sector. Usually, it reflects overall trends in employment and income as well as financing conditions. Typically, it expands more rapidly than the overall economy in the early stages of expansions, and falls more sharply during recessions. During the first half of this past decade, however, housing went on a tear in many parts of the country, unrelated to the overall economy. Michigan, however, had a relatively mild housing upturn: over that 5-year span, house prices in Michigan 17%, compared to a national increase of 48%.

"Even so, Michigan had a severe housing downturn over the second half of the decade, reflecting the extended and sharp contraction in the state economy," the report observes. "From 2004 through 2007, Michigan suffered a relatively mild one-state recession, due largely to the loss of competitiveness of its auto manufacturing sector. Starting in 2008, however, real GDP in Michigan plunged, as the national recession devastated demand for cars and other manufactured goods produced in the state. The result is that Michigan suffered the largest cumulative decline in real GDP and the highest unemployment rate among the states."

Analysts say the Michigan housing sector has shown some signs of stabilizing this year, but it is not contributing meaningfully to an upturn thus far. Among the positives, total issuance of residential building permits from January through July were 36% above the first seven months of 2009, while permits for the nation are up only 7%.

Another encouraging development, according to Comerica, is the modest decline in the number of foreclosures started in the state. In the second quarter, the percent of foreclosures started fell to 1.4% of mortgages outstanding, the third consecutive quarterly decline. The inventory of mortgages anywhere in the foreclosure process also dropped in both the first and second quarters. Thus, with the number of new homes coming on the market exceedingly low and the number of foreclosures possibly beginning to trend lower, the downward pressure on house prices may be beginning to wane.

"In my view, nothing would do more to promote a durable recovery in homebuilding than convincing evidence that house prices have stopped falling," Johnson states. "It is the real cost of borrowing that should matter to a potential home buyer. For any asset, the real cost of borrowing can be calculated by subtracting from the nominal cost of borrowing the expected change in the price of the asset being purchased. At present, mortgage rates are incredibly low. But the real cost of financing a home purchase is not similarly low, if potential buyers expect
house prices could decline significantly in the period ahead. No matter how low mortgage rates get, it is not a good time to buy if house prices are likely to fall five or 10 percent in the next year or so."

Consumer psychology will play a big role in the direction of the housing sector, however, as Johnson believes meaningful change will occur when people begin to believe that Michigan house prices have stopped falling.

"The missing ingredient," Johnson says, "is confidence. Once people in Michigan become more convinced that their jobs are secure and that house prices have stabilized, demand will begin to build and homebuilding will start contributing to a more broadly based recovery."

Granholm claims victory on missions

Governor Granholm is reporting evangelical success with her overseas investment missions intended to bring new businesses and jobs to Michigan.

Since 2004, Granholm has gone wheels-up on 10 investment missions to countries including Germany, Italy, Austria, Belgium and Japan.

"These missions have been part of my efforts to go anywhere and do anything to bring new investment and jobs to Michigan and to further diversify the state's economy," she explains.

"These missions have resulted in 48 international companies announcing almost $1.7 billion in new investment in Michigan and the creation or retention of more than 13,000 jobs," Granholm said.

The governor said Kostal Kontakt Systeme, part of the Kostal Group that is an independent German family-owned business, is the latest company to come to Michigan. Last week, Kostal was approved for a state tax credit by the Michigan Economic Growth Authority to build a new manufacturing facility in Rochester Hills for its solar connector systems.

"My investment mission this past April was to Germany and Italy," Granholm reports. "And when I was in Germany, I met with representatives of Kostal to make the case why Michigan was the best location for its new facility. I touted our manufacturing infrastructure, our skilled workforce, our great natural resources and our quality of life. So now Kostal is coming to Michigan and with it an estimated 642 jobs."

"Now through the end of the year, I'll continue working on diversifying our economy and creating jobs," Granholm said. "And if I have to travel to Germany or any other spot on the globe to bring new investment and jobs to Michigan, I'll do it, because every day, creating new jobs and a new Michigan economy remains our top priority."

State's strength hinges on wellness

The true front lines in the fight for community health and wellness are far from the sleek conference rooms where many of the campaigns are designed. They are not in insurance company actuarial tables, or at the construction of jogging tracks and health clubs.

The front lines are in places like Benton Harbor, on a steamy Sunday afternoon in August, at a city park where residents have gathered for picnic fare, games, a Moon Bounce and a sense of civic pride. They are there to watch their kids demonstrate what they've learned in Tai Kwan Do classes and see them swell with individual pride.

The front lines are also across the street, in a parking lot where Cigna has wheeled in a semi truck outfitted as a wellness Mobile Learning Lab. The interactive exhibits in the inviting, brightly colored truck draw children looking for video games, and who end up learning about healthy lifestyles in the process.

The front lines are manned by people like Jeff Doemland, a Cigna employee and co-founder of the Communities of Health demonstrations in Michigan. The programs bring people together in collaborative dialogue to explore social conditions that are the major influences of health and illness, in a way that generates deeper collective awareness and community-driven action. The initiative also rests on the premise that healthy communities, and states, depend on the well-being of workers who can productively contribute to their companies and the economy.

To Doemland, the truck and the program are also about "exposing people to and building awareness of the social determinants of health." He explains that, according to researchers, approximately 45% of everything that determines an individual's health can be attributed to factors such as access to medical care and resources that help them behave in a healthy fashion. But 55% can be attributed to social determinants, such as where an individual lives and how he feels about his environment. For example, Doemland explains, "if you live in a place where there is a pervasive distrust of neighbors, the stress level is enormous....It can be like running a car engine at a high rate of RPM, eventually leading to burnout and breakdown."

Other social determinants can include access to transportation. Sometimes, for example, owning a car can mean the difference between getting to the other end of town to shop for healthy food in a grocery store, or a diet of primarily dense fast food fare.


There is so much to be done, as even a few minutes watching people cycle through the Mobile Learning Lab reveals. One boy who dons a weighted vest to discover what it feels like to be 20 pounds overweight gets a first-hand sense of what it means to make healthy or unhealthy choices. Others drop by to thank Doemland and Cigna for their efforts, expressing hope that even more can be done to reach and educate children at a grassroots level. If successful, the hope is that Communities of Health outreach such as the Learning Lab and community events, and with support of corporate backers like Cigna and Whirlpool, can be replicated across Michigan. Marcus Robinson, leader of the Consortium for Community Development, says his group has identified some 700 municipalities in need of substantial help.

On this day in August, however, the focus is on Benton Harbor, a town hit hard by job loss and economic recession. It is a town that has taken it on the chin, perhaps moreso than any other in Michigan. Yet it is also a place of tremendous spirit and faith, where a population of around 10,000 gather in more than 100 churches to share their experience, strength and hope. It is that place where kids can gather in the park and make proud their parents who stand near and daydream about brighter futures. It is on the front lines in the battle for the health, well-being and prosperity for the state and all it's children and grown-ups, embracing change the way a fresh breeze from across the Lake Michigan embraces them.

MichBio launches Career Center

MichBio, the trade association for Michigan’s biosciences industry, has added a new, online MichBio Career Center dedicated to serving employers and job seekers in the biosciences space.

The new job posting tool enables employers to post one or multiple positions for various lengths of time at affordable prices and receive monthly updates of recently uploaded resumes. They are also able to highlight their listings with “featured employer” and/or banner ads on the site for an additional fee. MichBio members receive a 20% discount on postings and advertising.

Job seekers can set up free accounts to upload resumes and receive automated emailed job alerts. Resumes can also be posted anonymously.

“In a MichBio member survey last January, one of things we heard was that members wanted more assistance in posting and finding bioscience employment opportunities,” said Stephen Rapundalo, MichBio president and CEO. “Since then, we have been searching for a program to fulfill that need, and the launch of this full-service MichBio Career Center on our website (http://www.michbio.org/) accomplishes that goal.”

MichBio is the biosciences industry trade association and the official Michigan affiliate of the Biotechnology Industry Organization, BIO, which represents biotechnology companies across America and in 33 other nations. MichBio also works closely with other national organizations including AdvaMed, Medical Device Manufacturers Association, PhRMA, among others. Formed in 1993 as the Michigan Biosciences Industry Association, MichBio is headquartered in Ann Arbor, Michigan, and represents the more than 500 bioscience-related companies in the state.

Golf brings Benton Harbor to fore

The camera crew from CBS took its position. Four sporting legends took their places at the first tee. The gallery grew as still as the mid-August morning air, and nearly as heavy with anticipation for an answer to the unspoken question of whether a golf course can save a city.

Or at least contribute to its survival.

That was the scene Aug. 10 at The Golf Club at Harbor Shores in Benton Harbor. The 18-hole, $18 million course designed by sports legend Jack Nicklaus opened in early July but was officially christened with the Harbor Shores Champions for Change Golf Challenge which also included Arnold Palmer, Tom Watson and Johnny Miller.

“I consider Arnold, Tom and Johnny among my closest friends in golf," Nicklaus said prior to teeing off for a "skins" game in which he teamed with Palmer. However, Nicklaus observed the day's importance to economic redevelopment in the area.

“The Harbor Shores Champions for Change event is a great opportunity to highlight how golf is being used as a vehicle for social and economic revitalization, particularly in the Benton Harbor community,” he said.

In the mid-80s, the cities of Benton Harbor and St. Joseph, once thriving shipping and manufacturing communities, were devastated by the closing of several factories. More than 5,000 jobs were lost over a period of 18 months. Since that time, St. Joseph has evolved into a thriving Midwest tourist destination as it is conveniently located just 90 minutes east of Chicago. On the other hand, Benton Harbor, adjacent to St. Joseph to the northeast, has struggled to find a new identity and a new source of economic stability. Over the past few decades, Benton Harbor has become one of the most poverty-stricken cities in the state of Michigan – and the country -- where more than 60% of the children live below the poverty line.

With the vision to revitalize Benton Harbor, local non-profits, Whirlpool Foundation, Cornerstone Alliance and the Consortium for Community Development, came together to work towards broad-based community revitalization efforts that include virtually every other non-profit organization in the area. Organizations like Harbor Habitat for Humanity, The Boys & Girls Club of Benton Harbor, The First Tee, Michigan Works and many others are in partnership to drive revitalization in both economic development as well as a human capacity building, designed to address the needs of citizens of all ages and stages of life.

The signature component of years of redevelopment work is Harbor Shores, a 530-acre beach and golf resort community designed to serve as a major economic enabler for Benton Harbor’s transformation. With a unique non-profit ownership structure and a true public/private partnership, it is believed that Harbor Shores will continue revitalization efforts by creating several hundred permanent new jobs, increasing the tax base, stimulating new consumer spending and focusing on creating new opportunities for the local citizens.

The cornerstone and central amenity of Harbor Shores is The Golf Club at Harbor Shores, the Nicklaus Signature Golf Course along the shores of Lake Michigan that will host the 2012 and 2014 Senior PGA Championships. It is widely considered one of the most anticipated golf course openings in 2010 and a true testament to how golf is being used as an enabler for social and economic change.

The true testament to the golf's importance, however, will be recorded with other measures.
"From the community's standpoint, the main issue is whether Harbor Shores can drive enough value into the daily life of residents," said Marcus Robinson, leader of the Consortium for Community Development and head of the community-development side of the project. Moreover, he says, Harbor Shores is "a reinvention of the brand of the city of Benton Harbor" and its image among tourists as well as state residents. Adding to the upbeat prognosis, Whirlpool recently announced it will build and occupy three new office buildings, totaling 270,000 square feet, in downtown Benton Harbor, consolidating 1,000 jobs into the town.

But for the day at hand on Aug. 10, the emphasis was purely on golf, and Nicklaus, Palmer, Watson and Miller did not fail to please the gallery of some 3,500 who followed them along the course through sweltering heat. One highlight came on the 10th hole, with a four-tiered green of more than 10,000 square feet -- one of the biggest Nicklaus has ever designed. After Miller complained of a terrible position after his approach shot, Nicklaus obligingly offered to take Miller's putt and show him how it was done. He promptly drained the 100-foot uphill putt, thrilling the crowd and resulting in a clip on ESPN Sports Center as well as YouTube http://www.youtube.com/watch?v=qw67MO4DDYk

Can a golf course save a city? Of course not. But can a group of highly dedicated, motivated and like-minded people intent on a new beginning? Of course they will.

MI resident leads safety engineers

A long-time Southfield resident and member of the North America Management team of ABB Inc. is the new president of the oldest safety society in the world, the American Society of Safety Engineers.

In the new role, Darryl C. Hill, PhD, CSP, will continue his drive to increase workplace safety and eliminate suffering while minimizing financial losses.

Elected by his peers of more than 32,000 occupational safety, health and environmental professionals to lead ASSE in its 100th year, Hill, with more than 20 years of experience, aims to lead the occupational safety and health profession as it continues to work towards improving workplace safety for all while contributing positively toward the bottom line.

“Based on my experience in occupational safety and health, it is evident to me that safety decisions must not be based on 'I think' or 'I feel'... but on statistical process control tools, risk assessments and incident trend data,” Hill said. “Once the scientific work is done, however, foresight and intuition are quite effective in helping us to expand our understanding of tomorrow and make better decisions now," he said.

Hill, an ASSE member for more than 20 years, is vice president for safety and health, ABB North America, in Auburn Hills, MI. At ABB his responsibilities include occupational health and safety management for multi-plant, service and project locations in the U.S., Canada and Mexico. Hill has a BS in occupational safety from Iowa State University, an MS in hazardous waste management from Wayne State University and a Ph.D. from Oakland University, MI, in educational leadership. He also served as an adjunct faculty member at Oakland University and is a certified safety professional (CSP).

As a volunteer ASSE member, Hill served as the vice president for finance, as regional vice president, as the construction practice specialty administrator and as a member and chair of the ASSE public relations committee. He was awarded the prestigious ASSE Edgar Monsanto Queeny Safety Professional of the Year (SPY) honor; the Charles V. Culbertson Outstanding Volunteer Service award; the Oakland University occupational safety and health leadership award; the Michigan Safety Conference distinguished service to safety award; and, many more chapter recognitions.

Internship training available to employers

The Grand Rapids-based West Michigan Internship Initiative next week will offer a new round of Employer Internship Training aimed at keeping the state's best and brightest at home and working.

“The expansion of internships is one of the best methods for retaining and expanding our intellectual capital base in West Michigan" says Cindy Brown, Project Manager for the Initiative.

"Internships are an inexpensive recruiting tool and an opportunity to train future employees. Interns can bring current technology and ideas from the classroom to the workplace, they can complete projects that have been set aside for various reasons and they can be another source for the recruitment of diverse employees into your workforce."

Brown believes this is the perfect time for companies to begin developing a comprehensive work plan for their internship programs. To aid area employers with the creation or enhancement of their organization’s internship program, employers can attend a training session on Tuesday August 10, 2010 from 8:30 – 10:00 a.m. or 3:00-4:30 p.m. Employers will be presented with the Employers Internship Toolkit, a guide that was created with the input of various businesses and career services professionals from universities and colleges in the region, along with other pertinent information in helping enhance or develop their own internship program.

To sign-up for this training sessions or get additional information,contact Cindy Brown at 616-871-2452 or cbrown@wm-alliance.org.

To learn more about the West Michigan Internship Initiative or download a copy of the Employers Internship Toolkit, visit the WMSA website at: http://www.wm-alliance/.

Chrysler retains Sterling Heights plan

Chrysler announced it will keep its Sterling Heights Assembly Plant open beyond 2012 and add a second shift of nearly 900 workers in early 2011 in order to support the company’s long-term product plan.

“After a careful review of all of our manufacturing operations, it became evident that more production capacity was needed and it made good business sense to extend the life of SHAP,” Sergio Marchionne, Chrysler Group CEO said in a statement. “We appreciate the tireless support we have received from Governor Granholm and D. Gregory Main, Chair of the Michigan Economic Development Corporation, as well as Sterling Heights Mayor Richard Notte and the City Council to retain jobs in Michigan.”

During President Barack Obama’s appearance at Chrysler’s Jefferson North Assembly Plant last week, Marchionne told reporters that the company plans to build Fiat-based successors to theChrysler Sebring and Dodge Avenger at the factory.

Governor Granholm called the announcement "the best news of the summer."

"The fact that the more than 1,000 workers at the plant will keep their jobs, and a second shift of another 900 workers will be added in 2011, is a tremendous economic boost. This is fabulous for Chrysler and Michigan."