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.
Thursday, December 23, 2010
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.
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.
Thursday, December 16, 2010
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 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.
• 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.
Wednesday, December 8, 2010
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.
"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.
Wednesday, December 1, 2010
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.
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.
Subscribe to:
Posts (Atom)