Comerica Bank’s Michigan Tourism Index fell one point in the second quarter of 2010, to a level of 91. The second quarter reading is up two points from the year-ago level, and is up four points, or 5%, from the cyclical Index low of 87. The Index has averaged 92 over the first half of the year, up two points from the Index average for all of 2009. First quarter’s reading was revised to 92, from the previously published level of 91.
“Our Index ticked down in the second quarter, paralleling the broad-based slowdown in growth evidenced in the national recovery during the same period,” said Dana Johnson, Chief Economist at Comerica Bank. “Air traffic and casino revenues were roughly flat, with sluggish museum activity accounting for the downtick in the Index. Although lackluster, the general improvement in the Index over the first half of the year should continue, as personal and business discretionary spending as well as confidence in the national recovery improve.”
The Michigan Tourism Index is a quarterly summary of six equally weighted, seasonally adjusted travel, lodging and entertainment data series. These series serve as a proxy for statewide tourism activity.
Thursday, July 29, 2010
Wednesday, July 28, 2010
State aprprenticeship support increased
The state will increase support for specific apprenticeship programs from $1,000 to $5,000 per apprentice to better meet the workforce needs of Michigan employers.
The Michigan Registered Apprenticeship Pilot (MRAP) program will boost funding for those employers who partner with their local Michigan Works! Agencies to sponsor new apprentices in the U.S. Labor Department's registered apprenticeship programs.
MRAP, launched August 2009 with $1 million from the American Recovery and Reinvestment Act (Recovery Act), supports the state's efforts to train workers for employment in occupations that meet current and emerging industry needs. MRAP will help to ensure that Michigan's employers will have access to the skilled workers they will need to survive and grow in an increasingly competitive global economy.
"By investing these Recovery Act dollars in apprenticeships, we're making sure our employers will be able to find Michigan workers trained and ready for jobs in industries where there is a growing demand," said Governor Granholm.
In Michigan, 18 of the 25 fastest-growing occupations are apprenticeable, including medical assistants, computer software engineers, home health aides, and computer systems analysts. Experts say vacancies in apprenticeable occupations will likely increase dramatically in the near future due to the average age and tenure of skilled workers from the "Baby Boomer" generation.
"Apprenticeships are one of the original win-win propositions. Employers get skilled workers who see learning as part of their job from day one, plus lower turnover and higher morale. And the state of Michigan gets the most highly trained workforce around," said Andy Levin, Michigan's Chief Workforce Officer and Department of Energy, Labor & Economic Growth Acting Director.
Employers may receive a maximum award of $5,000 to off-set costs associated with apprenticeship programs, including wages, job-related equipment or related technical instruction. The Employer Incentive portion of the award has doubled from $1,000 to $2,000, and the remaining $3,000 must be spent specifically for related technical instruction, which must be provided by the employer or a state-approved training entity. MRAP funds will expire June 30, 2011.
For more information about MRAP contact the DELEG Bureau of Workforce Transformation at (517) 241-7337 or the USDOL Office of Apprenticeship at (517) 377-1746.
The Michigan Registered Apprenticeship Pilot (MRAP) program will boost funding for those employers who partner with their local Michigan Works! Agencies to sponsor new apprentices in the U.S. Labor Department's registered apprenticeship programs.
MRAP, launched August 2009 with $1 million from the American Recovery and Reinvestment Act (Recovery Act), supports the state's efforts to train workers for employment in occupations that meet current and emerging industry needs. MRAP will help to ensure that Michigan's employers will have access to the skilled workers they will need to survive and grow in an increasingly competitive global economy.
"By investing these Recovery Act dollars in apprenticeships, we're making sure our employers will be able to find Michigan workers trained and ready for jobs in industries where there is a growing demand," said Governor Granholm.
In Michigan, 18 of the 25 fastest-growing occupations are apprenticeable, including medical assistants, computer software engineers, home health aides, and computer systems analysts. Experts say vacancies in apprenticeable occupations will likely increase dramatically in the near future due to the average age and tenure of skilled workers from the "Baby Boomer" generation.
"Apprenticeships are one of the original win-win propositions. Employers get skilled workers who see learning as part of their job from day one, plus lower turnover and higher morale. And the state of Michigan gets the most highly trained workforce around," said Andy Levin, Michigan's Chief Workforce Officer and Department of Energy, Labor & Economic Growth Acting Director.
Employers may receive a maximum award of $5,000 to off-set costs associated with apprenticeship programs, including wages, job-related equipment or related technical instruction. The Employer Incentive portion of the award has doubled from $1,000 to $2,000, and the remaining $3,000 must be spent specifically for related technical instruction, which must be provided by the employer or a state-approved training entity. MRAP funds will expire June 30, 2011.
For more information about MRAP contact the DELEG Bureau of Workforce Transformation at (517) 241-7337 or the USDOL Office of Apprenticeship at (517) 377-1746.
Monday, July 26, 2010
Extended jobless benefits two weeks away
Michigan's Unemployment Insurance Agency is rapidly implementing plans to process and pay an extension in federal benefits to some 69,500 unemployed workers in one to two weeks.
Nationwide, some 2.5 million people ran out of benefits in the nearly two months it took Congress to extend the benefits. Getting money into the hands of those whose benefits expired will be an uneven process, depending on the efficiencies of different state agencies. Reports indicate that Michigan, however, ranks near the top of all states in readiness.
"We have teams of staff ready to process claims for the federal extensions and estimate that within two weeks, we should have most if not all federal unemployment benefit payments in the hands of those who are eligible for them," UIA Director Stephen Geskey said in the final hours before Congress and President Obama broke a political stalement and approved the benefits through November.
Geskey explained that there are two main groups that are affected by the restoration of the federal jobless benefits 1) 9,500 unemployed workers who exhausted their state unemployment benefits but did so after the federal Emergency Unemployment Compensation (EUC) and Extended Benefit (EB) programs had expired. 2) 60,000 unemployed workers who had been receiving EB until that program ended with the week ending July 3.
"For the 9,500 who exhausted their state benefits since July 3, we will be sending letters to them with special instructions on how and when to apply for the federal extensions," Geskey explained. "For the 60,000 group, they simply need to continue contacting our MARVIN system once every two weeks. And in cases where they may have stopped contacting MARVIN when their benefits were halted, UIA staff will contact these individuals directly for the information needed to pay them for any back weeks of unemployment to which they are entitled."
UIA expects to have payments issued to these two groups over the next two weeks, including any retroactive payments back to the week ending July 10. The benefits will either be added to the individual's UI debit card or deposited in their bank account.
"If an individual doesn't receive a payment or is not contacted by the agency within the next two weeks, then that person should contact the UIA by dialing our toll-free claims line at 1-866-500-0017 and selecting option #3 to speak with one of our staff," Geskey said.
Those who exhaust their state unemployment benefits will now be able to apply for a federal benefit extension, while those currently collecting federal benefits through one of the four tiers of EUC will continue to collect those benefits. They will then be able to move onto the next EUC tier or EB if they exhaust their current benefits and are still unemployed. Those with EB claims will be able to collect the remaining weeks on their claims.
The EUC program has four tiers of federal benefits.
Tier 1 - provides up to 20 weeks
Tier 2 - provides up to 14 weeks
Tier 3 - provides up to 13 weeks
Tier 4 - provides up to 6 weeks
Those who exhaust EUC Tier 4 may then qualify for up to 20 weeks of benefits through the Extended Benefit program. The combination of state and federal benefits totals up to 99 weeks in Michigan.
Geskey noted one change in the new legislation:
"[It]does not provide any new benefit programs or additional weeks of unemployment benefits beyond the 99 weeks now available in Michigan," Geskey said, "and it eliminates the $25 per week supplement payment called Federal Unemployment Compensation for those filing new state claims."
The FAC payment will not be available to those who file new claims for state unemployment benefits after May 29, 2010. However, those currently collecting the extra $25 per week will continue to do so until they exhaust all of their unemployment benefits or until the week ending December 11, 2010, whichever comes first.
The newly restored federal EUC and EB benefits will expire on Nov. 30, 2010.
Nationwide, some 2.5 million people ran out of benefits in the nearly two months it took Congress to extend the benefits. Getting money into the hands of those whose benefits expired will be an uneven process, depending on the efficiencies of different state agencies. Reports indicate that Michigan, however, ranks near the top of all states in readiness.
"We have teams of staff ready to process claims for the federal extensions and estimate that within two weeks, we should have most if not all federal unemployment benefit payments in the hands of those who are eligible for them," UIA Director Stephen Geskey said in the final hours before Congress and President Obama broke a political stalement and approved the benefits through November.
Geskey explained that there are two main groups that are affected by the restoration of the federal jobless benefits 1) 9,500 unemployed workers who exhausted their state unemployment benefits but did so after the federal Emergency Unemployment Compensation (EUC) and Extended Benefit (EB) programs had expired. 2) 60,000 unemployed workers who had been receiving EB until that program ended with the week ending July 3.
"For the 9,500 who exhausted their state benefits since July 3, we will be sending letters to them with special instructions on how and when to apply for the federal extensions," Geskey explained. "For the 60,000 group, they simply need to continue contacting our MARVIN system once every two weeks. And in cases where they may have stopped contacting MARVIN when their benefits were halted, UIA staff will contact these individuals directly for the information needed to pay them for any back weeks of unemployment to which they are entitled."
UIA expects to have payments issued to these two groups over the next two weeks, including any retroactive payments back to the week ending July 10. The benefits will either be added to the individual's UI debit card or deposited in their bank account.
"If an individual doesn't receive a payment or is not contacted by the agency within the next two weeks, then that person should contact the UIA by dialing our toll-free claims line at 1-866-500-0017 and selecting option #3 to speak with one of our staff," Geskey said.
Those who exhaust their state unemployment benefits will now be able to apply for a federal benefit extension, while those currently collecting federal benefits through one of the four tiers of EUC will continue to collect those benefits. They will then be able to move onto the next EUC tier or EB if they exhaust their current benefits and are still unemployed. Those with EB claims will be able to collect the remaining weeks on their claims.
The EUC program has four tiers of federal benefits.
Tier 1 - provides up to 20 weeks
Tier 2 - provides up to 14 weeks
Tier 3 - provides up to 13 weeks
Tier 4 - provides up to 6 weeks
Those who exhaust EUC Tier 4 may then qualify for up to 20 weeks of benefits through the Extended Benefit program. The combination of state and federal benefits totals up to 99 weeks in Michigan.
Geskey noted one change in the new legislation:
"[It]does not provide any new benefit programs or additional weeks of unemployment benefits beyond the 99 weeks now available in Michigan," Geskey said, "and it eliminates the $25 per week supplement payment called Federal Unemployment Compensation for those filing new state claims."
The FAC payment will not be available to those who file new claims for state unemployment benefits after May 29, 2010. However, those currently collecting the extra $25 per week will continue to do so until they exhaust all of their unemployment benefits or until the week ending December 11, 2010, whichever comes first.
The newly restored federal EUC and EB benefits will expire on Nov. 30, 2010.
Auto parts maker investing in Troy
ArvinMeritor Inc. last week announced its intention to invest $23 million over the next five years to expand its advanced technologies capabilities at its technical center in Troy, Mich. The project is expected to create 125 jobs at the company by 2014.
“ArvinMeritor is investing in a spectrum of advanced technologies that are focused on fuel efficiency, next generation brake technology, suspensions and vehicle dynamics capabilities,” explained Carsten Reinhardt, chief operating officer, ArvinMeritor.
The Troy, Mich. technical center is part of the company’s global engineering network that also includes technical centers in Cameri, Italy; Cwmbran, U.K.; Bangalore, India; Shanghai, China; Monterrey, Mexico and Osasco, Brazil. ArvinMeritor is focused on improving its research, development, engineering and product design capabilities. The company spent $103 million in fiscal year 2009, $122 million in fiscal year 2008 and $116 million in fiscal year 2007 on company-sponsored research, development and engineering programs.
ArvinMeritor applied for and received a Michigan Economic Growth Authority grant through the Michigan Economic Development Corp. valued at $2.2 million. The City of Troy has proposed support for the project through consideration of PA 198 personal property and facility rehabilitation exemptions. In addition, Oakland County has offered support valued at up to $1.6 million with training grants available through its workforce development program.
“ArvinMeritor is investing in a spectrum of advanced technologies that are focused on fuel efficiency, next generation brake technology, suspensions and vehicle dynamics capabilities,” explained Carsten Reinhardt, chief operating officer, ArvinMeritor.
The Troy, Mich. technical center is part of the company’s global engineering network that also includes technical centers in Cameri, Italy; Cwmbran, U.K.; Bangalore, India; Shanghai, China; Monterrey, Mexico and Osasco, Brazil. ArvinMeritor is focused on improving its research, development, engineering and product design capabilities. The company spent $103 million in fiscal year 2009, $122 million in fiscal year 2008 and $116 million in fiscal year 2007 on company-sponsored research, development and engineering programs.
ArvinMeritor applied for and received a Michigan Economic Growth Authority grant through the Michigan Economic Development Corp. valued at $2.2 million. The City of Troy has proposed support for the project through consideration of PA 198 personal property and facility rehabilitation exemptions. In addition, Oakland County has offered support valued at up to $1.6 million with training grants available through its workforce development program.
Wednesday, July 21, 2010
Whirlpool affirms MI commitment
Whirlpool Corporation's commitment to corporate citizenship in Michigan has deepened with the announcement it will launch new construction and consolidate 15 owned and leased facilities into three centralized office campuses in the Benton Harbor/St. Joseph area.
Officials say the changes – expected to take approximately five years to complete – will allow the company to deliver on improvements in productivity, operations, energy efficiency, and overall employee experience.
Plans were made possible in part by a decision from the Michigan Economic Growth Authority to approve five-year tax breaks to help at least 868 jobs with an average weekly wage of $1,980 remain in Benton Harbor. The tax incentives will accompany Whirlpool's $86.8 million investment to consolidate its headquarters along the riverfront downtown.
While businesses face some of the same relocation costs as any individual or family considering a move, the decision to stick with Benton Harbor was far from an obvious conclusion. Whirlpool, which last year had revenues of $17 billion and said Tuesday it expects record earnings this year, had "multiple options" to move to other cities, including Chicago and Atlanta, said D. Jeffrey Noel, corporate vice president for communications and public affairs. But the tax credit, combined with Benton Harbor's "small town" community and amenities, including a new golf course, persuaded Whirlpool to stay, he told the Detroit News.
The consolidation will revolutionize Whirlpool's operations. It will address space constraints in existing facilities, modernize facility operations and generally improve the company's employee recruiting and retention. Most of the current facilities are a 20-minute drive from each other; the three new buildings sites that will be constructed along the St. Joseph River within a football field's distance of each other.
Construction is projected to begin this fall. Whirlpool reportedly plans to raze a boarded-up Sears store, abandoned grocery, former car dealership and other blighted structures to build one of the three corporate campuses.
The three campuses will include the existing Benton Harbor Administrative Center and St. Joseph Technology Center locations, and a new three-building campus to be located on Main Street, between River Street and Riverview Drive, in downtown Benton Harbor. In addition to these three campuses, the company plans to retain its Hilltop Drive South offices in St. Joseph and the Harbor Town offices in Benton Harbor.
The changes will allow the company to reduce its operating costs, provide greater flexibility to adjust to changing business and staffing needs and drive enhanced productivity. Additionally, the new buildings will be highly energy-efficient; built to achieve Gold LEED certification.
"Thanks to collaboration with our four local government bodies, and with the State of Michigan, we will further strengthen our commitment to the Benton Harbor – St. Joseph communities," said Jeff M. Fettig, chairman and chief executive officer, Whirlpool Corporation.
"With more than 4,000 individuals in our current facilities, we have simply outgrown our current space. This initiative is a good business decision as the new campus and related changes are expected to increase productivity and energy efficiency, and reduce operating costs."
MI Perspective: At many points during the past seven years, many CEOs would have called it a lousy business decision to keep Whirlpool in Benton Harbor. Renewed racial tensions and rioting in 2003 presented some make-or-break decisions both for the company and the community. But instead of devolving completely, local officials and rookie Governor Jennifer Granholm contributed willpower to galvanize the community around a new project, Harbor Shores. Now, a world class golf tournament to be hosted by Whirlpool next month will help spotlight the area's progress. And while challenges remain -- including the need for an emergency financial manager appointed for Benton Harbor -- the tasks seem somewhat less daunting with the support of a major corporate citizen committed to the health of the community.
Officials say the changes – expected to take approximately five years to complete – will allow the company to deliver on improvements in productivity, operations, energy efficiency, and overall employee experience.
Plans were made possible in part by a decision from the Michigan Economic Growth Authority to approve five-year tax breaks to help at least 868 jobs with an average weekly wage of $1,980 remain in Benton Harbor. The tax incentives will accompany Whirlpool's $86.8 million investment to consolidate its headquarters along the riverfront downtown.
While businesses face some of the same relocation costs as any individual or family considering a move, the decision to stick with Benton Harbor was far from an obvious conclusion. Whirlpool, which last year had revenues of $17 billion and said Tuesday it expects record earnings this year, had "multiple options" to move to other cities, including Chicago and Atlanta, said D. Jeffrey Noel, corporate vice president for communications and public affairs. But the tax credit, combined with Benton Harbor's "small town" community and amenities, including a new golf course, persuaded Whirlpool to stay, he told the Detroit News.
The consolidation will revolutionize Whirlpool's operations. It will address space constraints in existing facilities, modernize facility operations and generally improve the company's employee recruiting and retention. Most of the current facilities are a 20-minute drive from each other; the three new buildings sites that will be constructed along the St. Joseph River within a football field's distance of each other.
Construction is projected to begin this fall. Whirlpool reportedly plans to raze a boarded-up Sears store, abandoned grocery, former car dealership and other blighted structures to build one of the three corporate campuses.
The three campuses will include the existing Benton Harbor Administrative Center and St. Joseph Technology Center locations, and a new three-building campus to be located on Main Street, between River Street and Riverview Drive, in downtown Benton Harbor. In addition to these three campuses, the company plans to retain its Hilltop Drive South offices in St. Joseph and the Harbor Town offices in Benton Harbor.
The changes will allow the company to reduce its operating costs, provide greater flexibility to adjust to changing business and staffing needs and drive enhanced productivity. Additionally, the new buildings will be highly energy-efficient; built to achieve Gold LEED certification.
"Thanks to collaboration with our four local government bodies, and with the State of Michigan, we will further strengthen our commitment to the Benton Harbor – St. Joseph communities," said Jeff M. Fettig, chairman and chief executive officer, Whirlpool Corporation.
"With more than 4,000 individuals in our current facilities, we have simply outgrown our current space. This initiative is a good business decision as the new campus and related changes are expected to increase productivity and energy efficiency, and reduce operating costs."
MI Perspective: At many points during the past seven years, many CEOs would have called it a lousy business decision to keep Whirlpool in Benton Harbor. Renewed racial tensions and rioting in 2003 presented some make-or-break decisions both for the company and the community. But instead of devolving completely, local officials and rookie Governor Jennifer Granholm contributed willpower to galvanize the community around a new project, Harbor Shores. Now, a world class golf tournament to be hosted by Whirlpool next month will help spotlight the area's progress. And while challenges remain -- including the need for an emergency financial manager appointed for Benton Harbor -- the tasks seem somewhat less daunting with the support of a major corporate citizen committed to the health of the community.
Friday, July 16, 2010
President energizes plant groundbreaking
Following are remarks delivered by President Obama yesterday in Hollond, at the building site for a Compact Power Inc. car battery manufacturing facility.
THE PRESIDENT: Hello, everybody. Thank you so much.
First of all, let me thank your fine young mayor. Mr. Mayor, it is wonderful to see you, and I am partial to daughters, as I know you are, and I hope at some point I get a chance to meet yours. But thank you for the great work that you’ve done.
Somebody who I think is one of the best governors in the country, Jennifer Granholm -- please give her another round of applause. Jennifer has been relentless about bringing manufacturing -- 21st century manufacturing -- here to Michigan. And this is just an example of the kinds of projects she’s been working on for so long. I’m very grateful for the presence of the chairman of LG Chem, Bon-Moo Koo. Thank you very much for your presence here today, as well as the CEO and vice chairman, Peter Bahn-Suk Kim. Thank you very much.
And I want to acknowledge your congressman -- Pete Hoekstra is here in the audience. Please give him a round of applause.
Now, it is wonderful to be here in Holland, and I am especially to be here as Compact Power breaks ground on this site. This is about more than just building a new factory. It’s about building a better future for this city, for this state, and for this country.
Now, I want to say what everyone here in Holland and everybody here in Michigan knows too well, which is that these have been some pretty tough times. A brutal recession came on top of what was already a lost decade for the middle class, especially for manufacturing towns here in the Midwest. Even before this recession cost so many jobs, incomes had been flat, jobs were moving overseas, while the price of everything from health care to college tuitions were skyrocketing.
It was a decade in which it seemed like the values that built this country were turned upside-down. Folks who were working hard and honestly every day to meet their responsibilities were running in place or falling behind while high-flying financial speculators who were cutting corners were rewarded with lavish bonuses and benefits.
It got even worse when the financial crisis sent our economy into a freefall and cost 8 million Americans their jobs. Michigan was hit harder than anywhere else. An on top of this recession, you were also rocked by the near collapse of the domestic auto industry.
It was in the middle of this crisis that my administration walked through the door. And we had a number of difficult decisions that we had to make and make quickly. Some, including shoring up U.S. automakers, weren’t real popular, as you will recall. But with millions of jobs at stake, with the future of so many families and businesses on the line, we acted to prevent the country from slipping into an even deeper crisis.
And that’s why, when my administration began, we cut taxes for small business owners and for 95% of working families here in Michigan and across the country. We extended unemployment insurance to help folks get through these storms. And through small business loans, a focus on research and development and investments in high-tech, fast-growing sectors like clean energy, we’ve aimed to grow our economy by harnessing the innovative spirit of the American people.
Because we did, shovels will soon be moving earth and trucks will soon be pouring concrete where we are standing. Because of a grant to this company, a grant that’s leveraging more than 150 million private dollars, as many as 300 people will be put to work doing construction and another 300 will eventually be hired to operate this plant when it’s fully up and running. And this is going to lead to growth at local businesses like parts suppliers and restaurants. It will be a boost to the economy of the entire region.
This is the ninth advanced battery plant to begin construction because of our economic plan. These plants will put thousands of people to work. This includes folks who were working at a couple of facilities being built in Michigan by another battery technology company called A123. And in every case, we’ve been guided by a simple idea -- government can’t generate the jobs or growth we need by itself, but what government can do is lay the foundation for small businesses to expand and to hire, for entrepreneurs to open up shop and test new products, for workers to get the training they need for the jobs of the 21st century, and for families to achieve some semblance of economic security.
So our goal has never been to create a government program, but rather to unleash private sector growth. And we are seeing results. There are 4.5 million unemployed workers already hired whose employers are eligible for a payroll tax exemption, a tax break that I signed into law earlier this year.
Just yesterday, the Council of Economic Advisers put out a detailed report and it showed that for things like tax credits that go to advanced energy manufacturing or loan guarantees for small businesses or financing for infrastructure projects, we’re leveraging nearly three private dollars for every public dollar that’s spent. That’s an incredible bang for our buck. By making critical seed money available, we’ve attracted more than $280 billion in investment from private companies and others, which will mean new jobs and brighter futures for families in Holland and in communities across the country.
And by the way, these aren’t just any jobs. These are jobs in the industries of the future. Just a few years ago, American businesses manufactured only 2% of the world’s advanced batteries for electric and hybrid vehicles. But because of what’s happening in places like this, in just five years we’ll have up to 40% of the world’s capacity -- 40%. So for years you’ve been hearing about manufacturing jobs disappearing overseas. You are leading the way in showing how manufacturing jobs are coming right back here to the United States of America.
For example, the workers at this plant, already slated to produce batteries for the new Chevy Volt, learned the other day that they’re also going to be supplying batteries for the new electric Ford Focus as soon as this operation gears up. That means that by 2012, the batteries will be manufactured here in Holland, Michigan. So when you buy one of these vehicles, the battery could be stamped “Made in America” -– just like the car.
And here’s another benefit. Because of advances in the manufacture of these batteries, their costs are expected to come down by nearly 70% in the next few years. That’s going to make electric and hybrid cars and trucks more affordable for more Americans. And that not only means more jobs but it also means we’re going to be less dependent on foreign oil.
So taken together, these are the efforts that are going to create jobs and help build a stronger economy in the long run. And I want to express my appreciation to the Michigan leaders, not only here but in Congress, who supported the economic plan that made this possible.
As a result of the steps that we took, an economy that was shrinking is now growing. We were bleeding jobs at a rate of 750,000 per month the January that I was sworn in. Now the economy is adding private sector jobs and has been for six straight months.
Now, this doesn’t mean that we’re out of the woods -– not by a long shot. But it does mean that there are small business owners who’ve been able to get the loans they need to hire a few more people. It means there are salespeople with a few more dollars in their pockets because customers are buying again. It means there are innovators and entrepreneurs finally able to take a chance on a new idea. And it means there are construction workers heading to the jobsite each day –- just like some of the folks who are here today -– because our country is slowly coming back from this vicious recession.
The progress we’ve made so far is not nearly enough to undo the enormous damage that this recession caused. And I’ve said since the first day I took office, it’s going to take time to reverse the toll of the deepest downturn in a generation. I won’t be satisfied as long as even one person who needs a job and wants to work can’t find one.
But what I’m absolutely clear about and what this plant will prove is that we are headed in the right direction, and that the surest way out of the storms we’ve been in is to keep moving forward and not go backwards.
There are some folks who want to go back –- who think that we should return to the policies that helped to lead to this recession. Some of them made the political calculation that it’s better to obstruct than to lend a hand. They said no to tax cuts, they said no to small business loans, they said no to clean energy projects. Now, it doesn’t stop them from being at ribbon-cuttings -- (laughter) -- but that’s okay. I just want to make sure that everybody understands that this country would not be better off if this plant hadn’t gotten built and if the clean energy package that made it possible wasn’t in place.
And when you head out to any of the two dozen battery technology plants coming online that are going to be able to be stamped “Made in America” on their products, I want folks who have been pushing against these economic policies to explain to these workers why it would be better for these things to be manufactured in other countries, or why the solar plants and wind turbines and biodiesel refineries that are being built shouldn’t have happened.
Most workers and most entrepreneurs understand we’re not in the clear yet. But they understand we’re headed in the right direction. There’s something about America that no matter what the trials are, what the tribulations are, we stay optimistic and we keep going forward. And we know if we work hard enough and we’re determined enough, if we try as hard as we can and if we’re willing to experiment, and if things don’t work we put them aside, but we keep on going -- that sooner or later we’re going to see a brighter day. And we’re going to pass on a better America to our children and our grandchildren.
That’s been our history. That’s the legacy that we inherit. So to everybody in Holland, I want you to understand these have been a tough few years, but we have been through tough times before, and at our best we’ve risen to the challenges we face by tapping the drive and the talent and the ingenuity that has always been at the heart of America’s success.
And that’s what’s happening all across America as we speak. That’s not only how we’re going to emerge from this period of turmoil; that’s how we’re going to actually come out stronger than we were before.
So to all of you who have been part of this project, thank you. This is a symbol of where Michigan is going, this is a symbol of where Holland is going, this is a symbol of where America is going.
God bless you. And God bless the United States of America.
First of all, let me thank your fine young mayor. Mr. Mayor, it is wonderful to see you, and I am partial to daughters, as I know you are, and I hope at some point I get a chance to meet yours. But thank you for the great work that you’ve done.
Somebody who I think is one of the best governors in the country, Jennifer Granholm -- please give her another round of applause. Jennifer has been relentless about bringing manufacturing -- 21st century manufacturing -- here to Michigan. And this is just an example of the kinds of projects she’s been working on for so long. I’m very grateful for the presence of the chairman of LG Chem, Bon-Moo Koo. Thank you very much for your presence here today, as well as the CEO and vice chairman, Peter Bahn-Suk Kim. Thank you very much.
And I want to acknowledge your congressman -- Pete Hoekstra is here in the audience. Please give him a round of applause.
Now, it is wonderful to be here in Holland, and I am especially to be here as Compact Power breaks ground on this site. This is about more than just building a new factory. It’s about building a better future for this city, for this state, and for this country.
Now, I want to say what everyone here in Holland and everybody here in Michigan knows too well, which is that these have been some pretty tough times. A brutal recession came on top of what was already a lost decade for the middle class, especially for manufacturing towns here in the Midwest. Even before this recession cost so many jobs, incomes had been flat, jobs were moving overseas, while the price of everything from health care to college tuitions were skyrocketing.
It was a decade in which it seemed like the values that built this country were turned upside-down. Folks who were working hard and honestly every day to meet their responsibilities were running in place or falling behind while high-flying financial speculators who were cutting corners were rewarded with lavish bonuses and benefits.
It got even worse when the financial crisis sent our economy into a freefall and cost 8 million Americans their jobs. Michigan was hit harder than anywhere else. An on top of this recession, you were also rocked by the near collapse of the domestic auto industry.
It was in the middle of this crisis that my administration walked through the door. And we had a number of difficult decisions that we had to make and make quickly. Some, including shoring up U.S. automakers, weren’t real popular, as you will recall. But with millions of jobs at stake, with the future of so many families and businesses on the line, we acted to prevent the country from slipping into an even deeper crisis.
And that’s why, when my administration began, we cut taxes for small business owners and for 95% of working families here in Michigan and across the country. We extended unemployment insurance to help folks get through these storms. And through small business loans, a focus on research and development and investments in high-tech, fast-growing sectors like clean energy, we’ve aimed to grow our economy by harnessing the innovative spirit of the American people.
Because we did, shovels will soon be moving earth and trucks will soon be pouring concrete where we are standing. Because of a grant to this company, a grant that’s leveraging more than 150 million private dollars, as many as 300 people will be put to work doing construction and another 300 will eventually be hired to operate this plant when it’s fully up and running. And this is going to lead to growth at local businesses like parts suppliers and restaurants. It will be a boost to the economy of the entire region.
This is the ninth advanced battery plant to begin construction because of our economic plan. These plants will put thousands of people to work. This includes folks who were working at a couple of facilities being built in Michigan by another battery technology company called A123. And in every case, we’ve been guided by a simple idea -- government can’t generate the jobs or growth we need by itself, but what government can do is lay the foundation for small businesses to expand and to hire, for entrepreneurs to open up shop and test new products, for workers to get the training they need for the jobs of the 21st century, and for families to achieve some semblance of economic security.
So our goal has never been to create a government program, but rather to unleash private sector growth. And we are seeing results. There are 4.5 million unemployed workers already hired whose employers are eligible for a payroll tax exemption, a tax break that I signed into law earlier this year.
Just yesterday, the Council of Economic Advisers put out a detailed report and it showed that for things like tax credits that go to advanced energy manufacturing or loan guarantees for small businesses or financing for infrastructure projects, we’re leveraging nearly three private dollars for every public dollar that’s spent. That’s an incredible bang for our buck. By making critical seed money available, we’ve attracted more than $280 billion in investment from private companies and others, which will mean new jobs and brighter futures for families in Holland and in communities across the country.
And by the way, these aren’t just any jobs. These are jobs in the industries of the future. Just a few years ago, American businesses manufactured only 2% of the world’s advanced batteries for electric and hybrid vehicles. But because of what’s happening in places like this, in just five years we’ll have up to 40% of the world’s capacity -- 40%. So for years you’ve been hearing about manufacturing jobs disappearing overseas. You are leading the way in showing how manufacturing jobs are coming right back here to the United States of America.
For example, the workers at this plant, already slated to produce batteries for the new Chevy Volt, learned the other day that they’re also going to be supplying batteries for the new electric Ford Focus as soon as this operation gears up. That means that by 2012, the batteries will be manufactured here in Holland, Michigan. So when you buy one of these vehicles, the battery could be stamped “Made in America” -– just like the car.
And here’s another benefit. Because of advances in the manufacture of these batteries, their costs are expected to come down by nearly 70% in the next few years. That’s going to make electric and hybrid cars and trucks more affordable for more Americans. And that not only means more jobs but it also means we’re going to be less dependent on foreign oil.
So taken together, these are the efforts that are going to create jobs and help build a stronger economy in the long run. And I want to express my appreciation to the Michigan leaders, not only here but in Congress, who supported the economic plan that made this possible.
As a result of the steps that we took, an economy that was shrinking is now growing. We were bleeding jobs at a rate of 750,000 per month the January that I was sworn in. Now the economy is adding private sector jobs and has been for six straight months.
Now, this doesn’t mean that we’re out of the woods -– not by a long shot. But it does mean that there are small business owners who’ve been able to get the loans they need to hire a few more people. It means there are salespeople with a few more dollars in their pockets because customers are buying again. It means there are innovators and entrepreneurs finally able to take a chance on a new idea. And it means there are construction workers heading to the jobsite each day –- just like some of the folks who are here today -– because our country is slowly coming back from this vicious recession.
The progress we’ve made so far is not nearly enough to undo the enormous damage that this recession caused. And I’ve said since the first day I took office, it’s going to take time to reverse the toll of the deepest downturn in a generation. I won’t be satisfied as long as even one person who needs a job and wants to work can’t find one.
But what I’m absolutely clear about and what this plant will prove is that we are headed in the right direction, and that the surest way out of the storms we’ve been in is to keep moving forward and not go backwards.
There are some folks who want to go back –- who think that we should return to the policies that helped to lead to this recession. Some of them made the political calculation that it’s better to obstruct than to lend a hand. They said no to tax cuts, they said no to small business loans, they said no to clean energy projects. Now, it doesn’t stop them from being at ribbon-cuttings -- (laughter) -- but that’s okay. I just want to make sure that everybody understands that this country would not be better off if this plant hadn’t gotten built and if the clean energy package that made it possible wasn’t in place.
And when you head out to any of the two dozen battery technology plants coming online that are going to be able to be stamped “Made in America” on their products, I want folks who have been pushing against these economic policies to explain to these workers why it would be better for these things to be manufactured in other countries, or why the solar plants and wind turbines and biodiesel refineries that are being built shouldn’t have happened.
Most workers and most entrepreneurs understand we’re not in the clear yet. But they understand we’re headed in the right direction. There’s something about America that no matter what the trials are, what the tribulations are, we stay optimistic and we keep going forward. And we know if we work hard enough and we’re determined enough, if we try as hard as we can and if we’re willing to experiment, and if things don’t work we put them aside, but we keep on going -- that sooner or later we’re going to see a brighter day. And we’re going to pass on a better America to our children and our grandchildren.
That’s been our history. That’s the legacy that we inherit. So to everybody in Holland, I want you to understand these have been a tough few years, but we have been through tough times before, and at our best we’ve risen to the challenges we face by tapping the drive and the talent and the ingenuity that has always been at the heart of America’s success.
And that’s what’s happening all across America as we speak. That’s not only how we’re going to emerge from this period of turmoil; that’s how we’re going to actually come out stronger than we were before.
So to all of you who have been part of this project, thank you. This is a symbol of where Michigan is going, this is a symbol of where Holland is going, this is a symbol of where America is going.
God bless you. And God bless the United States of America.
Wednesday, July 14, 2010
Obama to visit Holland battery plant
President Obama tomorrow will deliver remarks at a groundbreaking ceremony for the Compact Power Inc. battery plant in Holland.
The plant is the ninth of nine new advanced battery factories to start construction as a result of the $2.4 billion in Recovery Act advanced battery and electric vehicle awards President Obama announced last August. The project is expected to create hundreds of construction and manufacturing jobs in Holland.
Once fully operational, the Compact factory will produce battery cells to support 53,000 Chevy Volts, a plug-in hybrid expected in showrooms this year. Ford Motor Co. has also picked Compact Power Inc. as its battery supplier for the electric version of its Ford Focus compact car due out next year.
Troy-based Compact plans to begin battery-pack assembly next year and is in the final stages of selecting a U.S. production site. The lithium-ion cells for the battery packs will initially be provided by LG Chem. Production will then move to Holland, where LG Chem is building a $300 million plant due to begin operations in 2012.
The Focus Electric will have a target driving range of up to 100 miles per full charge. It is one of five electrified vehicles Ford plans to bring to market in the U.S. in the next two years. The vehicle will be produced in Wayne, Mich., which will begin assembling gasoline versions of the 2011 Focus later this year.
MI Perspective: For years, if not decades, Michigan automakers have been painted as part of the problem leading to the U.S. addiction to foreign oil -- ignoring the reality that Americans demand gas-guzzlers when oil is cheap and scream bloody murder about Detroit when prices soar. Now, however, the state has a chance to be seen as part of the solution in achieving energy independence. The President's visit is more than a media event, though it is likely to torn apart in the rip tides of political commentary for and against Obama. Michigan needs to keep it's eye on the prize: not just energy independence for America but economic independence for the state. Freedom from reliance on federal handouts and progress toward industrial diversification.
The plant is the ninth of nine new advanced battery factories to start construction as a result of the $2.4 billion in Recovery Act advanced battery and electric vehicle awards President Obama announced last August. The project is expected to create hundreds of construction and manufacturing jobs in Holland.
Once fully operational, the Compact factory will produce battery cells to support 53,000 Chevy Volts, a plug-in hybrid expected in showrooms this year. Ford Motor Co. has also picked Compact Power Inc. as its battery supplier for the electric version of its Ford Focus compact car due out next year.
Troy-based Compact plans to begin battery-pack assembly next year and is in the final stages of selecting a U.S. production site. The lithium-ion cells for the battery packs will initially be provided by LG Chem. Production will then move to Holland, where LG Chem is building a $300 million plant due to begin operations in 2012.
The Focus Electric will have a target driving range of up to 100 miles per full charge. It is one of five electrified vehicles Ford plans to bring to market in the U.S. in the next two years. The vehicle will be produced in Wayne, Mich., which will begin assembling gasoline versions of the 2011 Focus later this year.
MI Perspective: For years, if not decades, Michigan automakers have been painted as part of the problem leading to the U.S. addiction to foreign oil -- ignoring the reality that Americans demand gas-guzzlers when oil is cheap and scream bloody murder about Detroit when prices soar. Now, however, the state has a chance to be seen as part of the solution in achieving energy independence. The President's visit is more than a media event, though it is likely to torn apart in the rip tides of political commentary for and against Obama. Michigan needs to keep it's eye on the prize: not just energy independence for America but economic independence for the state. Freedom from reliance on federal handouts and progress toward industrial diversification.
Wednesday, July 7, 2010
Economy shows monthly uptick
Comerica Bank's Michigan Economic Activity Index rose one point in May, to a level of 83. May's reading is up 12 points from the same period a year ago, marking the fourth consecutive double-digit increase in the Index, on a 12-month basis. Year-to-date, the Index is up nine points, or 12%, from the average for all of 2009.
"Our Index has stalled somewhat in the second quarter, after climbing impressively in the first quarter," said Dana Johnson, Chief Economist at Comerica Bank. "A notable increase in steel production in May helped offset declines in gas consumption, motor vehicle sales, and building permits. The recovery in Michigan, thus far driven largely by increased consumer spending and production, has struggled in the second quarter of the year, with consistent gains in the housing and employment sectors unsustained as of yet. Over the course of the year, however, broad-based gains in the national economy should result in sustained moderate job growth in Michigan, resulting in an increasingly widespread recovery."
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. A complete Index history is available upon request.
"Our Index has stalled somewhat in the second quarter, after climbing impressively in the first quarter," said Dana Johnson, Chief Economist at Comerica Bank. "A notable increase in steel production in May helped offset declines in gas consumption, motor vehicle sales, and building permits. The recovery in Michigan, thus far driven largely by increased consumer spending and production, has struggled in the second quarter of the year, with consistent gains in the housing and employment sectors unsustained as of yet. Over the course of the year, however, broad-based gains in the national economy should result in sustained moderate job growth in Michigan, resulting in an increasingly widespread recovery."
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. A complete Index history is available upon request.
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