With the pace of downsizing and the price of gasoline on the decline just ahead of peak vacation season, the "Pure Michigan" ad campaign could become even more successful in luring tourists and their pocketbooks to the Great Lake State.
Indeed, compared with the pits of the recession, U.S. workers may now be more willing and able to use additional paid leave this summer, according to the workplace experts at Challenger, Gray & Christmas Inc.
That's good news in terms of what economists know as the "multiplier effect." Increased travel this summer will boost consumer spending in tourist destinations such as Michigan, which will lead to increased hiring among hotels, restaurants, shops and amusement venues. Those businesses and their employees, in turn, respend those dollars multiple times within the state. It's estimated that each dollar in new tourism revenue has a multiplier effect of about 2.5 on the state economy.
“The travel industry and all of the related beneficiaries will not see a return to pre-recession boom times, but it will be a significant improvement over the last couple of years. It is important to remember that many Americans are still unemployed and are likely to postpone most travel plans until they regain employment,” said John A. Challenger, chief executive officer of Chicago-based Challenger, Gray & Christmas.
“Where we will see the change this year is among the employed who, despite their job status, were hesitant to take paid leave during the recession for fear that it would further erode their already fragile job security. This year, while employers have been slow to ramp up hiring, they have clearly shifted from a strategy focused on downsizing to one emphasizing retention. In this environment, it is much easier to put in for vacation days,” said Challenger.
Challenger data shows a dramatic decline in job cuts. Through the first quarter, employers announced plans to cut 181,183 jobs, 69 percent fewer than the 578,510 layoffs announced in the first quarter of 2009. The first-quarter total was, in fact, the lowest Q1 total since 2000. The declining pace of downsizing continued in April, as monthly job cuts dropped to 38,326, the lowest since July 2006.
“Last summer, workers were in job-protection mode. Those who didn’t have enough work to keep them busy were doing whatever they could to appear busy. For others, the layoffs brought on by the recession increased workloads, as remaining workers were asked to do more with less – fewer support staff, less productivity-enhancing technology and less training.
“The threat of downsizing never really disappears, but job security is in a much better place this year. Some employers may, in fact, encourage workers to use vacation time to decompress. The temporary and very mild impact on workplace productivity caused by vacationing staff is more than offset by a rested workforce that is likely to be more productive over the long term and probably more loyal, as well,” said Challenger.
Helping to spur overworked employees’ travel plans are falling gas prices at a time when they typically increase. The most recent data show that the nationwide average price for a gallon of gas heading into the Memorial Day weekend dropped to $2.79, according to the weekly survey issued by AAA, Wright Express and Oil Price Information Service.
The combination of improving job stability and falling gas prices are already leading to increased travel plans. A separate AAA survey shows that 28 million Americans plan to travel by car over the Memorial Day weekend. The AAA found that overall 32.1 million Americans will take trips away from home over the upcoming holiday weekend, which is up 5.4 percent from the 30.5 million Memorial Day travellers in 2009.
Further evidence that Americans are ready to spend more on summer travel comes from travel website TripAdvisor.com, whose 2010 family travel survey found that 92% of travelers with children plan to take at least one family vacation this year, up from 88% in 2009. Meanwhile, 28% of travelers with children expect to spend more on family trips in the coming 12 months than they did in the past 12 months, with 22% expecting to spend between $3,000 and $5,000 and another 19% expecting to spend $5,000 to $8,000.
These spending levels would undoubtedly help the local economies that serve as tourist destinations within Michigan. Employment within tourism-related industries is already reaping the benefits. The latest nationwide data from the Bureau of Labor Statistics show that employment in the leisure and hospitality industry grew by a non-seasonally adjusted 581,000 in March and April, including 403,500 in the accommodation and food services sector.
“We may continue to see job growth throughout the summer, if some employers underestimated the number of seasonal hires they will need. The areas that could see the biggest hiring boom are destinations favored by driving vacationers. Seasonal job seekers who are willing to go where the jobs are could find ample opportunities,” said Challenger.
Thursday, May 27, 2010
Wednesday, May 26, 2010
Motivate Michigan contest winners named
The idea of putting underwater power generation equipment throughout Michigan was announced Monday as top winner of "Motivate Michigan," a corporate-sponsored collegiate competition to generate ideas to improve Michigan's economy.
A total of more than 300 ideas were received from schools all over the state in a competition that was pared down to 10 semifinalists last month. An online vote that attracted more than 5,000 participants produced the five finalists that made their presentations to a panel of judges Monday.
The first place "Thunder from Down Under" proposal from University of Michigan students Tarun Koshy and Nicholas Williams suggested the state install underwater power generation turbines in all the major lakes and rivers. The idea netted $20,000 in scholarship prize money for the winners.
In second place was the Financial Literacy Pilot Program by Western Michigan University students Jacob Berkey and Kylie Vasa, who will receive $12,000 in scholarship money. The proposal calls for implementing a program to educate high school seniors in the practices of personal finance.
Third place went to a "Michigan Pride" consumer action plan, winning a prize $7,500.
The objective of the competition was to initiate creative ideas from incoming freshman or students enrolled in state colleges or universities to improve Michigan's economy. Through a just-ended submission process, teams and individuals submitted their ideas for business development. Students were prompted to complete their online submissions with a format that addresses challenges and potential solutions. For example: Problem statement -- Michigan is a beautiful place to live and visit, but people aren't coming anymore to see all the state has to offer. Proposed solution: create a "frequent visitors program" that awards credit points based on how much time and money visitors spend in the state. Expected outcome -- increased tourism revenue.
A total of more than 300 ideas were received from schools all over the state in a competition that was pared down to 10 semifinalists last month. An online vote that attracted more than 5,000 participants produced the five finalists that made their presentations to a panel of judges Monday.
The first place "Thunder from Down Under" proposal from University of Michigan students Tarun Koshy and Nicholas Williams suggested the state install underwater power generation turbines in all the major lakes and rivers. The idea netted $20,000 in scholarship prize money for the winners.
In second place was the Financial Literacy Pilot Program by Western Michigan University students Jacob Berkey and Kylie Vasa, who will receive $12,000 in scholarship money. The proposal calls for implementing a program to educate high school seniors in the practices of personal finance.
Third place went to a "Michigan Pride" consumer action plan, winning a prize $7,500.
The objective of the competition was to initiate creative ideas from incoming freshman or students enrolled in state colleges or universities to improve Michigan's economy. Through a just-ended submission process, teams and individuals submitted their ideas for business development. Students were prompted to complete their online submissions with a format that addresses challenges and potential solutions. For example: Problem statement -- Michigan is a beautiful place to live and visit, but people aren't coming anymore to see all the state has to offer. Proposed solution: create a "frequent visitors program" that awards credit points based on how much time and money visitors spend in the state. Expected outcome -- increased tourism revenue.
Tuesday, May 18, 2010
More med ed coming to Midland
Michigan State University's College of Human Medicine and MidMichigan Health have agreed to establish a new regional medical campus in Midland.
MSU officials say the partnership is the result of shared goals to educate medical students within a health care system that values quality and provides care to a widely dispersed city and rural community.
The partnership expands MSU’s capacity for third- and fourth-year medical students in mid-Michigan by adding more student placements at four new hospitals from MidMichigan Health, in addition to current student rotations at Saginaw hospitals Covenant Healthcare and St. Mary’s of Michigan.
The campus will be centered in Midland, with educational sites at MidMichigan Medical Center-Midland, MidMichigan Medical Center-Clare, MidMichigan Medical Center-Gladwin, Gratiot Medical Center in Alma and the Saginaw hospitals.
“We are pleased that MidMichigan Health joins MSU in providing an amazing experience for our medical students that is rooted in quality primary care,” said Marsha Rappley, dean of the MSU College of Human Medicine. “We can now increase the number of students exposed to the wonderful physician role models in Midland, Saginaw, Alma, Clare and Gladwin. This is extremely important in helping students see careers and family opportunities for themselves in Michigan communities where they are valued and needed.”
Currently 15 third-year and eight fourth-year medical students from the College of Human Medicine study in Saginaw. Plans call for the students to rotate, as of July 2011, through various medical disciplines and specialty areas at the six hospitals, including MidMichigan Medical Center-Midland, MidMichigan Medical Center-Clare, MidMichigan Medical Center-Gladwin, Gratiot Medical Center and Covenant HealthCare and St. Mary’s of Michigan in Saginaw.
In addition to the Midland Regional campus, MSU College of Human Medicine has six community campuses located in Flint, Lansing, Grand Rapids, Kalamazoo, Traverse City and the Upper Peninsula. For more information visit http://www.michbio.org/.
MSU officials say the partnership is the result of shared goals to educate medical students within a health care system that values quality and provides care to a widely dispersed city and rural community.
The partnership expands MSU’s capacity for third- and fourth-year medical students in mid-Michigan by adding more student placements at four new hospitals from MidMichigan Health, in addition to current student rotations at Saginaw hospitals Covenant Healthcare and St. Mary’s of Michigan.
The campus will be centered in Midland, with educational sites at MidMichigan Medical Center-Midland, MidMichigan Medical Center-Clare, MidMichigan Medical Center-Gladwin, Gratiot Medical Center in Alma and the Saginaw hospitals.
“We are pleased that MidMichigan Health joins MSU in providing an amazing experience for our medical students that is rooted in quality primary care,” said Marsha Rappley, dean of the MSU College of Human Medicine. “We can now increase the number of students exposed to the wonderful physician role models in Midland, Saginaw, Alma, Clare and Gladwin. This is extremely important in helping students see careers and family opportunities for themselves in Michigan communities where they are valued and needed.”
Currently 15 third-year and eight fourth-year medical students from the College of Human Medicine study in Saginaw. Plans call for the students to rotate, as of July 2011, through various medical disciplines and specialty areas at the six hospitals, including MidMichigan Medical Center-Midland, MidMichigan Medical Center-Clare, MidMichigan Medical Center-Gladwin, Gratiot Medical Center and Covenant HealthCare and St. Mary’s of Michigan in Saginaw.
In addition to the Midland Regional campus, MSU College of Human Medicine has six community campuses located in Flint, Lansing, Grand Rapids, Kalamazoo, Traverse City and the Upper Peninsula. For more information visit http://www.michbio.org/.
Friday, May 14, 2010
Detroit to host stem-cell education event
Michigan's stature as a biotech industry host could get a boost from the next World Stem Cell Summit, which will kick off with a free "Public Education Day" on October 3 at the Detroit Science Center.
Hands-on exhibits and expert panels will be part of the 2010 Summit, produced by the Genetics Policy Institute and co-organized by the University of Michigan, Michigan State University, Wayne State University, the University Research Corridor and Michigan Economic Development Corporation.
"Stem cell science holds the promise to provide lifesaving treatments and I am delighted to see this important gathering of global dignitaries incorporating a day of public events for residents and visitors to learn more about this emerging field," Governor Granholm said at a press conference in Chicago.
"Michigan has a longstanding commitment to growing the biotechnology industry with an infrastructure in place for basic scientific research, globally recognized scientists, major academic centers and modern laboratories."
"Michigan is poised to establish itself as a leader in stem cells and the growing regenerative medicine industry," Granholm added. "The Public Education Day will be a fantastic opportunity for the public to learn more about the promise of stem cell research and the cures that will be coming soon."
The World Stem Cell Summit Public Education Day will provide "Stem Cell 101" lectures on the fundamentals of stem cell science, panels of patients and medical science experts describing the promise of the field to treat disease, advice and checklists to protect consumers from unproven treatments, regenerative medicine industry discussions, teacher workshops and film documentaries.
Michigan's growing life sciences industry employs more than 79,000, according to a recent study. The state's three world-class research universities - the University of Michigan, Michigan State University and Wayne State University - received an 11% increase in National Science Foundation funding, topping more than $1 billion in 2009.
The World Stem Cell Summit, scheduled for October 4-6, at the Detroit Renaissance Center, will bring together premier researchers, investors, industry leaders from more than 30 countries to Michigan to advance stem cell research and the promising technologies that will find cures.
The World Stem Cell Summit is the preeminent gathering for the global stem cell community promoting unity, understanding and harmonization. The 2010 event welcomes the participation of the Alliance for Regenerative Medicine, an organization representing 55 companies in the field of regenerative medicine, which will hold its general meeting as part of the summit. The summit also will feature the 2010 Stem Cell Action Awards Dinner where the Genetics Policy Institute will recognize organizations and individuals who have most positively impacted the stem cell community.
The 2010 World Stem Cell Summit will be the sixth annual conference organized by the Genetics Policy Institute. Previous summits have taken place in Houston, Palo Alto, Boston, Baltimore, and Madison, Wis. Stem Cell Summit Public Education Day is being underwritten, in part, by a gift from the The Taubman Foundation.
Hands-on exhibits and expert panels will be part of the 2010 Summit, produced by the Genetics Policy Institute and co-organized by the University of Michigan, Michigan State University, Wayne State University, the University Research Corridor and Michigan Economic Development Corporation.
"Stem cell science holds the promise to provide lifesaving treatments and I am delighted to see this important gathering of global dignitaries incorporating a day of public events for residents and visitors to learn more about this emerging field," Governor Granholm said at a press conference in Chicago.
"Michigan has a longstanding commitment to growing the biotechnology industry with an infrastructure in place for basic scientific research, globally recognized scientists, major academic centers and modern laboratories."
"Michigan is poised to establish itself as a leader in stem cells and the growing regenerative medicine industry," Granholm added. "The Public Education Day will be a fantastic opportunity for the public to learn more about the promise of stem cell research and the cures that will be coming soon."
The World Stem Cell Summit Public Education Day will provide "Stem Cell 101" lectures on the fundamentals of stem cell science, panels of patients and medical science experts describing the promise of the field to treat disease, advice and checklists to protect consumers from unproven treatments, regenerative medicine industry discussions, teacher workshops and film documentaries.
Michigan's growing life sciences industry employs more than 79,000, according to a recent study. The state's three world-class research universities - the University of Michigan, Michigan State University and Wayne State University - received an 11% increase in National Science Foundation funding, topping more than $1 billion in 2009.
The World Stem Cell Summit, scheduled for October 4-6, at the Detroit Renaissance Center, will bring together premier researchers, investors, industry leaders from more than 30 countries to Michigan to advance stem cell research and the promising technologies that will find cures.
The World Stem Cell Summit is the preeminent gathering for the global stem cell community promoting unity, understanding and harmonization. The 2010 event welcomes the participation of the Alliance for Regenerative Medicine, an organization representing 55 companies in the field of regenerative medicine, which will hold its general meeting as part of the summit. The summit also will feature the 2010 Stem Cell Action Awards Dinner where the Genetics Policy Institute will recognize organizations and individuals who have most positively impacted the stem cell community.
The 2010 World Stem Cell Summit will be the sixth annual conference organized by the Genetics Policy Institute. Previous summits have taken place in Houston, Palo Alto, Boston, Baltimore, and Madison, Wis. Stem Cell Summit Public Education Day is being underwritten, in part, by a gift from the The Taubman Foundation.
Wednesday, May 12, 2010
Holland area tops for basic needs
Among the 187 U.S. metro areas surveyed for a national well-being initiative, Holland-Grand Haven, Michigan led the nation in providing basic necessities -- such as safe places to exercise and easy access to fresh fruits and vegetables -- to its residents.
The survey was conducted last year for the Gallup-Healthways Basic Access Index, a 13-item measure of Americans' access to basic necessities in the cities or areas where they live. City scores from the responses were used to calculate the Basic Access Index. The national average for 2009 was 82.2 out of 100 points, down from 83.6 in 2008. At the top of the list, Holland-Grand Haven scored 89.3, followed by Madison, WI and two metro areas in Iowa that all scored 87 or above. The national average was 82.2, down from 83.6 in 2008.
The Gallup-Healthways data also helps document an important link between meeting residents' basic needs and crime in their areas. Analysis of the most recent FBI crime statistics available, from 2008, and Basic Access Index data from the same year, finds that the metro areas with the best Basic Access Index scores consistently had lower violent crime and property crime rates than those with higher scores.
Underscoring the connection between better access to basic necessities and community crime rates, the pattern held up when analysts controlled for average household income by sorting the metro areas into high-income ($63,000 per year or more), middle-income ($57,000 to $62,999), and low-income (less than $57,000 per year) categories.
For example, "middle income" metro areas with bottom-third basic access scores had 77% higher violent crime rates and 41% higher property crime rates than similarly wealthy top-third metro areas. Additionally, the lowest-income metro areas that maintain strong Basic Access Index scores had lower rates of violent and property crime per 100,000 residents than did the highest-income metro areas that have low basic access scores: 305 vs. 524 (violent) and 3,091 vs. 3,329 (property), respectively.
MI Perspective: Survey data such as this are valuable for demonstrating what many residents already know -- that Michigan is a great place to live and work. An even greater value, however, is in spreading this information to prospective residents and employers looking for new business locations. Everyone with an interest in boosting the state's economic fortunes should point with pride to such findings of Michigan quality of life, not just for the good of the Holland metro area, but for the entire state and its less-discovered gems.
The survey was conducted last year for the Gallup-Healthways Basic Access Index, a 13-item measure of Americans' access to basic necessities in the cities or areas where they live. City scores from the responses were used to calculate the Basic Access Index. The national average for 2009 was 82.2 out of 100 points, down from 83.6 in 2008. At the top of the list, Holland-Grand Haven scored 89.3, followed by Madison, WI and two metro areas in Iowa that all scored 87 or above. The national average was 82.2, down from 83.6 in 2008.
The Gallup-Healthways data also helps document an important link between meeting residents' basic needs and crime in their areas. Analysis of the most recent FBI crime statistics available, from 2008, and Basic Access Index data from the same year, finds that the metro areas with the best Basic Access Index scores consistently had lower violent crime and property crime rates than those with higher scores.
Underscoring the connection between better access to basic necessities and community crime rates, the pattern held up when analysts controlled for average household income by sorting the metro areas into high-income ($63,000 per year or more), middle-income ($57,000 to $62,999), and low-income (less than $57,000 per year) categories.
For example, "middle income" metro areas with bottom-third basic access scores had 77% higher violent crime rates and 41% higher property crime rates than similarly wealthy top-third metro areas. Additionally, the lowest-income metro areas that maintain strong Basic Access Index scores had lower rates of violent and property crime per 100,000 residents than did the highest-income metro areas that have low basic access scores: 305 vs. 524 (violent) and 3,091 vs. 3,329 (property), respectively.
MI Perspective: Survey data such as this are valuable for demonstrating what many residents already know -- that Michigan is a great place to live and work. An even greater value, however, is in spreading this information to prospective residents and employers looking for new business locations. Everyone with an interest in boosting the state's economic fortunes should point with pride to such findings of Michigan quality of life, not just for the good of the Holland metro area, but for the entire state and its less-discovered gems.
Monday, May 10, 2010
Kalamazoo Central wins Obama commencement
President Obama will deliver the June 10 commencement address at Kalamazoo Central High School, winner of the first Race to the Top High School Commencement Challenge. It will mark the first time in U.S. history that a sitting President has given the address to a high school graduating class.
“I congratulate our winner, Kalamazoo Central High School, and all of our six finalists for their innovative and effective approaches to teaching, learning and preparing students to graduate ready for college and a career,” said Obama said. “I look forward to visiting and speaking at Kalamazoo Central High School later this spring.”
“The extraordinary applications we received in the Race to the Top Commencement Challenge are a true testament to the great work happening in high school across the country,” said Secretary of Education Arne Duncan who announced the winner in a video release. “Congratulations to everyone at Kalamazoo Central High for setting high standards and ensuring students graduate and go on to succeed in college. I look forward to joining the President at their commencement.”
Kalamazoo Central was one of more than 1,000 applications narrowed down by the White House and Department of Education to six high school finalists. Between April 26 and 29, over 170,000 people weighed in on short videos and essays from the six finalists. President Obama selected Kalamazoo Central High School as the national winner from the three high schools with the highest average public ratings.
Like each of the finalists, Kalamazoo Central goes the extra mile to provide its diverse student body the support they need to succeed in school, attend college, and go on to promising careers. More than 80% of the school’s students graduate, and last year the school made its adequate yearly progress goals for the first time in several years for all student groups. While in school, students have the opportunity to participate in a variety of creative programs, such as theme-based schools to improve themselves and support their community. In addition, the “Kalamazoo Promise” - a pledge to pay the college tuition costs for Kalamazoo Central graduates, funded by anonymous donors – embodies a true community commitment to encourage every student to graduate from high school college- and career-ready.
The Commencement Challenge, launched in late February, invited the nation’s public high schools to submit applications showing their dedication to providing students with an excellent education that will prepare them to graduate ready for college and career choices. Applications were judged based on the schools’ performance, four essay questions and supplemental data. The six finalists were selected for their dedication to academic excellence and for showing how they are helping prepare students to graduate college and career ready, and prepared to meet the President’s goal of having the highest proportion of college graduates in the world by 2020.
“I congratulate our winner, Kalamazoo Central High School, and all of our six finalists for their innovative and effective approaches to teaching, learning and preparing students to graduate ready for college and a career,” said Obama said. “I look forward to visiting and speaking at Kalamazoo Central High School later this spring.”
“The extraordinary applications we received in the Race to the Top Commencement Challenge are a true testament to the great work happening in high school across the country,” said Secretary of Education Arne Duncan who announced the winner in a video release. “Congratulations to everyone at Kalamazoo Central High for setting high standards and ensuring students graduate and go on to succeed in college. I look forward to joining the President at their commencement.”
Kalamazoo Central was one of more than 1,000 applications narrowed down by the White House and Department of Education to six high school finalists. Between April 26 and 29, over 170,000 people weighed in on short videos and essays from the six finalists. President Obama selected Kalamazoo Central High School as the national winner from the three high schools with the highest average public ratings.
Like each of the finalists, Kalamazoo Central goes the extra mile to provide its diverse student body the support they need to succeed in school, attend college, and go on to promising careers. More than 80% of the school’s students graduate, and last year the school made its adequate yearly progress goals for the first time in several years for all student groups. While in school, students have the opportunity to participate in a variety of creative programs, such as theme-based schools to improve themselves and support their community. In addition, the “Kalamazoo Promise” - a pledge to pay the college tuition costs for Kalamazoo Central graduates, funded by anonymous donors – embodies a true community commitment to encourage every student to graduate from high school college- and career-ready.
The Commencement Challenge, launched in late February, invited the nation’s public high schools to submit applications showing their dedication to providing students with an excellent education that will prepare them to graduate ready for college and career choices. Applications were judged based on the schools’ performance, four essay questions and supplemental data. The six finalists were selected for their dedication to academic excellence and for showing how they are helping prepare students to graduate college and career ready, and prepared to meet the President’s goal of having the highest proportion of college graduates in the world by 2020.
Ford advances battery pack production
Ford's better idea to invest in Michigan by consolidating car and hybrid battery pack production has been followed by a letter to employees at the firm's Rawsonville Plant in Ypsilanti Township, revealing that a facility has finally been chosen, according to a report from RealEngineer.com.
Ford made their plans known during the 2010 Auto Show in Detroit but didn’t reveal any specific details concerning a possible $450 million investment. Speculation was that the firm awaited action from government officials eager to bring skilled and green jobs to the state. The Michigan Economic Growth Authority subsequently approved $188 million in tax breaks to help Ford set up hybrid battery pack operations.
The Rawsonville Components Plant has a long history with Ford dating back to the 1950s. It employed more than 2,600 people in the 1980s and currently employs 780. Analysts say the shift to green technology may be because items the plant produces like carbon canisters and starters are losing money for the company.
According to RealEngineer.com, the letter sent to plant employees doesn’t contain many details but does confirm that they will supply “hybrid battery packs to the Michigan Assembly Plant.” Ford and the UAW are said to be still hammering out details such as production scheduling and staffing issues. There isn’t any word yet on the number of new jobs for the plant, but the Detroit Free Press estimates as many as 1,000 new positions may be added statewide because of Ford’s $450 million investment.
The facility selection is welcome news in Yipsilanti, which was set to lose two more auto plants this year, including GM’s powertrain facility.
Ford made their plans known during the 2010 Auto Show in Detroit but didn’t reveal any specific details concerning a possible $450 million investment. Speculation was that the firm awaited action from government officials eager to bring skilled and green jobs to the state. The Michigan Economic Growth Authority subsequently approved $188 million in tax breaks to help Ford set up hybrid battery pack operations.
The Rawsonville Components Plant has a long history with Ford dating back to the 1950s. It employed more than 2,600 people in the 1980s and currently employs 780. Analysts say the shift to green technology may be because items the plant produces like carbon canisters and starters are losing money for the company.
According to RealEngineer.com, the letter sent to plant employees doesn’t contain many details but does confirm that they will supply “hybrid battery packs to the Michigan Assembly Plant.” Ford and the UAW are said to be still hammering out details such as production scheduling and staffing issues. There isn’t any word yet on the number of new jobs for the plant, but the Detroit Free Press estimates as many as 1,000 new positions may be added statewide because of Ford’s $450 million investment.
The facility selection is welcome news in Yipsilanti, which was set to lose two more auto plants this year, including GM’s powertrain facility.
Analysts say Ford’s move may have been tied to the tax breaks offered by the state but they are also listening to their customers. In 2009, overall hybrid sales were down 11% but Ford saw a 67% increase in their hybrid sales over 2008.
Monday, May 3, 2010
Top economist: brighter days ahead
The chief economist at Comerica bank and one of the state's foremost prognosticators sees signs that Michigan is near the front of the U.S. parade out of recession.
In his latest Michigan Economic Brief, Dana Johnson forecast that the production of goods and services in Michigan will grow by 3% or more this year, leading to a modest increase in jobs. The last time the state enjoyed positive economic growth was in 2005.
"That's a wonderful change from the last five or six years," Johnson wrote. "Michigan is going to perform more like the rest of the country."
One of the brightest spots at the bottom of Johnson's tea cup is the indication that Detroit's automakers have stabilized their market share and are expected to reap a double-digit increase in domestic sales this year. Ford recently posted a $2.1 billion quarterly profit, and Chrysler repaid its government loans ahead of schedule.
On the jobs front, Johnson believes the state's unemployment rate will drop below 12.5% by year's end. Michigan's unemployment rate is still worst in the nation, but in recent months has stabilized at 14.1% He predicts the state will return to positive job growth this year.
"Looking ahead, Michigan should do considerably better for a while," Johnson wrote in his Brief. "The economic recovery will work in Michigan's favor, as it has in the past. And the adverse structural trends are not likely to be as bad if the auto manufacturing sector is becoming more competitive."
Johnson noted that Michigan's economy normally recovers more rapidly than the national economy does in the aftermath of a recession. The trend is happening again this year, with Michigan getting a boost from the turnaround in the auto industry. Johnson noted that manufacturing, one of Michigan's largest sectors, is leading the national economic recovery, thanks to rising exports and increased spending on business equipment and household durable goods like appliances.
Importantly, however, Johnson notes that auto industry is no longer in the driver's seat of Michigan's economic growth. Due to the auto companies' restructuring, only 3% of the jobs in the state are in auto and auto parts manufacturing, compared with 7% in 2000.
The good news: "New sources of economic leadership will be able to emerge so long as the car companies stop creating the huge headwinds that impeded the state's economy over the past decade," Johnson predicted.
In his latest Michigan Economic Brief, Dana Johnson forecast that the production of goods and services in Michigan will grow by 3% or more this year, leading to a modest increase in jobs. The last time the state enjoyed positive economic growth was in 2005.
"That's a wonderful change from the last five or six years," Johnson wrote. "Michigan is going to perform more like the rest of the country."
One of the brightest spots at the bottom of Johnson's tea cup is the indication that Detroit's automakers have stabilized their market share and are expected to reap a double-digit increase in domestic sales this year. Ford recently posted a $2.1 billion quarterly profit, and Chrysler repaid its government loans ahead of schedule.
On the jobs front, Johnson believes the state's unemployment rate will drop below 12.5% by year's end. Michigan's unemployment rate is still worst in the nation, but in recent months has stabilized at 14.1% He predicts the state will return to positive job growth this year.
"Looking ahead, Michigan should do considerably better for a while," Johnson wrote in his Brief. "The economic recovery will work in Michigan's favor, as it has in the past. And the adverse structural trends are not likely to be as bad if the auto manufacturing sector is becoming more competitive."
Johnson noted that Michigan's economy normally recovers more rapidly than the national economy does in the aftermath of a recession. The trend is happening again this year, with Michigan getting a boost from the turnaround in the auto industry. Johnson noted that manufacturing, one of Michigan's largest sectors, is leading the national economic recovery, thanks to rising exports and increased spending on business equipment and household durable goods like appliances.
Importantly, however, Johnson notes that auto industry is no longer in the driver's seat of Michigan's economic growth. Due to the auto companies' restructuring, only 3% of the jobs in the state are in auto and auto parts manufacturing, compared with 7% in 2000.
The good news: "New sources of economic leadership will be able to emerge so long as the car companies stop creating the huge headwinds that impeded the state's economy over the past decade," Johnson predicted.
Subscribe to:
Posts (Atom)