Michigan Initiatives

New web models help fill jobs

2011-07-18T08:55:00.000-07:00

Here's a little-publicized aspect of the nation's fragile economic recovery: unemployment rates would be materially lower if there were more efficient means of helping employers find qualified workers.

Clearly, much of the employee recruiting process has moved online. And just as clearly, there are plentiful online job boards and proprietary job posting systems available for use. But while pundits would lead us to believe there simply aren't enough jobs, an important underlying aspect of unemployment is the difficulty that employers and skilled job candidates have finding each other amid the online clutter. The sheer number of displaced workers seeking employment suggests the need for new models of online matchmaking.

One of them might be emerging with hiredMYway.com, the an online recruitment web site which recently announced the launch of more than $1 million in bonus payments for job seekers who land a position using the system. The bonus program pays signing and referral bonuses of up to $4,000 every time someone is hired through the site.

A portfolio company of the Detroit Venture Partners, hiredMYway.com differentiates itself from other job boards in that job seekers can dip their resumes into a smaller pool of applicants, with promises that it will be viewed. Additionally, it eliminates the up-front cost employers traditionally pay to post their jobs online, because companies only pay if they make a hire. Every job on the web site offers a hiring and referral bonus.

The new bonus program increases exposure to jobs posted on the site and might well promote connectivity between job seekers and employers. However, efforts to harness the reach of social media could emerge as an equally powerful feature. Individuals who sign up as hiredMYway.com referrers share jobs with their friends and colleagues across the "big three" social media platforms Facebook, LinkedIn and Twitter. If someone they refer gets hired, they receive the bonus associated with the position and so does the person they referred. Bonuses are determined based on the amount the company is willing to invest to find the right candidate.

“First hiredMYway.com turned the online recruitment model upside down. Now, we are introducing a bonus program offering more than $1 million in payments,” said Matt Mosher (left), co-founder and CEO of hiredMYway.com. “hiredMYway.com allows companies to connect with serious, qualified candidates through our diverse network of referrers and job seekers. Driven by results, companies only pay for the positions they post if they find a candidate through our website.”

Positions posted on hiredMYway.com are geared for maximum exposure, to help companies fill their niche positions more quickly. Candidates who are serious about positions posted on hiredMYway.com can choose to pay $2 to submit their resume into a smaller applicant pool with the guarantee their resume will be viewed. If the candidate’s resume is not viewed within 15 days of applying for the job, the $2 fee will be returned to the job seeker’s account. Candidates may apply for positions for free, but will not be eligible for the signing bonus.

Companies throughout Michigan have already posted jobs on hiredMYway.com. They include International Bancard, Magna, Daifuku Webb, State Farm Insurance and Faith Rehab Solutions.

“Current online job boards are ineffective. Companies pay the same amount for a posting, regardless of the position, and we receive thousands of applications with no way to identify the most qualified candidates,” said Erin Spitzer, Executive Director of Human Resources for Daifuku Webb. “By allowing us to set the value for our postings on hiredMYway.com, we can find and identify the best candidates more easily without any upfront risk.”

hiredMYway.com is one of the first portfolio companies of the Detroit Venture Partners, backed by regional leaders Josh Linkner, Dan Gilbert and Brian Hermelin.

“Detroit Venture Partners is looking to invest in game-changing companies like hiredMYway.com that have clearly identified a problem with the status quo and will stop at nothing to develop and implement a creative solution to solve it,” said Linkner, who is also the founder and chairman of ePrize. “hiredMYway.com is the future of online job boards and the Detroit Venture Partners is excited to be a part of this innovative, Detroit-based company.”

MI Perspective: HR managers know the labor market can turn -- is turning -- very quickly. Practitioners I speak to daily say recruiting and retention is a rising priority at their companies, but they worry about existing mechanisms for finding skilled workers. The need is particularly acute in STEM areas (jobs requiring backgrounds in science, technology, engineering and/or mathematics), which are skills many displaced auto-industry workers in Michigan possess. Here's something HR recruiters also know: good people travel in packs. That's why harnessing the reach of social media is such a promising application for filling jobs, and why a venture such as hiredMYway.com might find considerable success.

GM to put $328M in Flint Assembly

2011-07-18T08:10:00.000-07:00

General Motors will invest $328 million to prepare its plant in Flint to build the next generation of Chevrolet and GMC full-size pickup trucks, creating or retaining 150 jobs.

The plant, which currently has 2,047 employees, builds the hot-selling heavy-duty versions of the Chevrolet Silverado and GMC Sierra. Sales of the new-for-2011 trucks have led to an additional 2.4 percentage points of market share (through May), bringing GM’s total HD share to 36%.

“This investment will allow us to continue building award-winning full-size pickups that offer better fuel efficiency than ever before without sacrificing features and functionality,” said Cathy Clegg, GM vice president of Labor Relations. “We remain committed to providing customers the utility and capability of our world-class full-size pickups.”

GM’s retail share of the full-size pickup market has grown to 40.4% through May compared with 37.7 percent in the first five months of 2010.

“Truck sales play an important role in the success of General Motors,” said Joe Ashton, UAW-GM Vice President. “We are confident that the next-generation of trucks will continue to be an important source of revenue for the company and jobs for our members. Our members are ready to use their abundant talents to build high-quality trucks that deliver exceptional value to our customers.”

The investment announced Monday is part of $2 billion GM is spending that will create or retain about 4,000 jobs in 17 facilities in eight states over the next 18 months.

Michigan has been a major recipient in the current round of investments, designated for $744 million. The Flint Engine, Bay City Powertrain, Detroit-Hamtramck Assembly, Lansing Grand River Assembly, Saginaw Powertrain and GM Components Holdings in Wyoming,all were designated for manufacturing investment along with a $130 million Data Center on its Warren, MI. Technical Center campus.

$11 million Invested in Saginaw County

2011-06-19T10:11:00.000-07:00

In the 1st quarter of 2011, Saginaw Future (SF) assisted eight companies that invested nearly $11 million, creating and retaining 927 jobs. Also, seven regional companies won 23 government contracts valued at more than $75 million.

Following is a run down on individual developments and investments:

Morley Companies Inc. continues to expand its data collection and research services, along with customer technical and support services for Fortune 100 clients. Due to additional business contracts, Morley has proposed the addition of 911 jobs (150 to 200 per year until 2015). Morley also expects to invest over $7 million in real and personal property improvements in Saginaw Charter Township. SF assisted the company through the State process for its MEGA application. The Michigan Economic Development Corporation approved a MEGA credit in support of the expansion.

Downtown Area Development LLC plans to increase the size of its new medical office building by 6,200 sq. ft. and will invest an additional $1.6 million. The building will be located on the 900 block of S. Washington Ave. in the City of Saginaw. Midwest Surgical Associates will be located on the first floor and the second floor will offer 11,100 sq. ft. of available medical/office space. SF helped to secure a Brownfield MBT credit for the project, which was approved by MEGA.

Kapex Manufacturing LLC is a machining and fabrication shop, which currently has a manufacturing location in southeast Michigan. Kapex contacted SF to assist in establishing a Saginaw County site, which led to a location on Christy Way in Saginaw Charter Township. The company has relocated four engineering and purchasing staff members and plans to eventually bring part of its manufacturing operations to the location. SF will continue to work with Kapex on upcoming expansion plans.

Expansions

Miller Mold Co. is a Saginaw Charter Township company that manufactures aluminum molds and dies, as well special tooling for the thermoform plastics industry. The company continues to upgrade its equipment and software programs to reduce setup, down-time, eliminate errors and increase efficiencies in order to compete with the best price possible. Miller Mold has also joined a consortium of thermoform companies in hopes of cooperatively competing for business in the industry.

ZENTX Media Group, a full service graphics provider, announced plans for the construction of a new building, which will be located adjacent to the MBS International Airport. It will house operations and production under one roof on a 10-acre site on W. Freeland Rd. Currently ZENTX has two locations – with a main office in Freeland and a custom fabrication and production site located in the City of Midland. With approximately 12,000 sq. ft. at the new location, the company will have the space and capabilities for large-scale projects and mobile interactive spaces, in addition to everyday projects. ZENTX will invest a total of $1 million and add three new positions.

Micron Precision Machining invested over $200,000 in new equipment purchases, which upgraded its inspection and milling department. The company added a new Zeiss Coordinate Measuring Machine and a Haas Vertical Machining Center. Micron Precision is located in Buena Vista Charter Township, has 27 employees and plans to add an additional two positions as a result of this project.

InCal Technologies Inc. expanded for the third time in two years. The company added over $60,000 in new equipment to its inspection and calibration department. InCal also expanded its Buena Vista Charter Township facility to accommodate the new equipment. The company added two new positions as a result of this project.

CIGNYS Corporation purchased a new paint line and forklifts for its City of Saginaw location. The equipment completes CIGNYS’ capital investment program to make the company more competitive. This was the ninth CIGNYS investment in the last four years at all of its locations, totaling nearly $2.5 million.

Also, seven regional companies won 23 government contracts valued at more than $75 million. Company names were not disclosed due to considerations for competition.

Established in 1992, Saginaw Future is a public-private alliance of local businesses, the County of Saginaw, City of Saginaw, 16 local municipalities and the Saginaw County Chamber of Commerce.
SF’s strategic partners also include education, labor and government. Since its beginning, SF has remained dedicated to fostering quality job creation through expansion of local industry and attraction of new business projects to the community.

H-P adds investment in Pontiac

2011-06-15T12:30:00.000-07:00

Computer and printer maker Hewlett-Packard Co. will invest $4.8 million to create 250jobs in Pontiac, MI.

HP Enterprise Services already employs 1,976 people at its facility in Pontiac. The Michigan Economic Growth Authority has approved some $3.5 million in state tax credits for Hewlett-Packard over the next seven years based on how many jobs it maintains in the area.

Hewlett-Packard is based in Palo Alto. HP Enterprise Services is the former Electronic Data Systems business started in 1962 by Ross Perot. HP bought it in the summer of 2008 for $13.9 billion.

Reuters to sell A2 healthcare unit

2011-06-14T05:56:00.000-07:00

Thomson Reuters plans to divest its Healthcare business, which employees more than 800 workers at its building on Eisenhower Parkway in Ann Arbor.

The unit, which provides data, analytics and performance benchmarking solutions and services to companies, government agencies and healthcare professionals, offers solutions to identify savings, improve outcomes, fight fraud and abuse and more efficiently manage their healthcare operations.

“Thomson Reuters has strong positions in our chosen markets and we believe we will achieve better all-in returns for our shareholders by divesting the Healthcare business and re-deploying the proceeds in our core franchises," said Thomas H. Glocer, chief executive officer of Thomson Reuters. "We have leading positions in global markets, including legal, tax and accounting, science and intellectual property, financial services and media, where we see significant opportunities for future growth and profitability. While a growing and profitable unit, our Healthcare business lacks the integration with and global scale of our other units, and our disciplined approach to capital allocation convinced us that the expected proceeds from a sale into a consolidating market could be better applied elsewhere in our portfolio,” said Glocer.

The fate of the operation's employees and facility hinge largely on the nature of the buyer. A financial or strategic purchase by, for example, a health care consulting company interested in analytics could leave the division largely in place. A purchaser interested only in individual assets might buy the division to break it down an scatter the components. Expansion, reduction, consolidation or a move for the division are all possibilities.

The Healthcare business in 2010 had revenues of approximately $450 million and an operating margin comparable to the company’s consolidated margin of 19.3%. Following adjustment for this divestiture by removing Healthcare’s results from ongoing businesses, no material impact is expected to the company’s previously announced 2011 outlook. The company expects the divestiture to close before the end of the year.

Morgan Stanley and Allen & Company are acting as financial advisors to Thomson Reuters for the proposed divestiture.

10 growing firms pick Michigan

2011-03-30T08:21:00.000-07:00

The Michigan Economic Growth Authority Tuesday approved tax incentives for 10 companies choosing to expand or locate in Michigan, as well as two brownfield redevelopment projects. The companies estimate the projects will generate up to $602 million in new private investment, adding a projected 1,911 direct jobs. "From next-generation software development to a $280 million investment in the Upper Peninsula by a partnership of U.S. and Japanese companies, today's MEGA board action highlights Michigan's high value across a broad number of industries," said Michael A. Finney, President and CEO of the Michigan Economic Development Corporation. "These new investments underscore once more Michigan's tremendous talent and the continued growth of core sectors." The MEGA board approved incentives to win the following projects for Michigan over competing states and countries: Atomic Object LLC - The custom software designer and developer plans to invest $983,000 in its Grand Rapids location to support new growth. The company expects the project to create up to 30 direct new jobs, resulting in a state tax credit valued at $161,908 over four years. Michigan was chosen over a competing site in California. The city of Grand Rapids is considering an abatement in support of the project. http://www.atomicobject.com/ Detroit Heavy Truck Engineering LLC - The corporate headquarters of this firm, responsible for the design, engineering, sales and support of heavy trucks and related mining equipment, plans to invest $4.6 million to expand in Novi. The company expects the project to create up to 49 direct new jobs, resulting in a state tax credit valued at $234,152 over five years. Michigan was chosen over competing sites in China and Wyoming. The city of Novi paid administrative fees in support of the project.http://www.dhtellc.com/ Dialogue Marketing Inc. - The provider of customer relationship-management services plans to invest $5 million to expand its call center and customized software development operations in Troy. The company expects the projects to create up to 230 direct new jobs, resulting in a state tax credit valued at $474,012 over three years. Michigan was chosen over a competing site in Utah. The city of Troy is considering an abatement in support of the project. http://www.dialogue-marketing.com/ Health Business Solutions LLC - The full-service denied-claims resolution and performance improvement consulting firm for the health care industry plans to invest $2.6 million to open a new facility in Dearborn. The company expects the projects to create up to 206 direct new jobs, resulting in a state tax credit valued at $816,218 over five years. Michigan was chosen over competing sites in Georgia and Texas. The city of Dearborn is considering an abatement in support of the project. http://www.healthbusinesssolutions.com/ Key Plastics LLC -- The supplier of engineered plastic components to the automotive industry plans to invest $10.3 million to expand in its facilities in Howell, Farmington Hills and Cascade Township. The company expects the projects to create up to 297 direct new jobs, resulting in a state tax credit valued at $1.1 million over four years. Michigan was chosen over competing sites. The city of Howell has approved an abatement in support of the project. http://www.keyplastics.com/ Knape & Vogt Manufacturing Company -- The designer, manufacturer, and distributor of functional hardware, storage-related components and ergonomic products plans to invest $1.24 million to expand in Grand Rapids. The company expects the projects to create up to 122 direct new jobs, resulting in a state tax credit valued at $335,409 over five years. Michigan was chosen over competing sites in Illinois and Wisconsin. The city of Grand Rapids is considering an abatement in support of the project. http://www.knapeandvogt.com/ Lakeside Software Inc. - The software developer plans to invest $6.1 million to expand existing operations in Bloomfield Hills, as well as locate operations in Ann Arbor. Lakeside Software's SysTrack technology is used by enterprise customers to conduct VDI assessment and planning, manage virtualized infrastructures, aid migration to Windows 7 and manage end user experience. The company expects the projects to create up to 198 direct new jobs, resulting in a state tax credit valued at $731,244 over five years. Michigan was chosen over a competing site in California. The cities of Ann Arbor and Bloomfield Hills are in support of the project. http://www.lakesidesoftware.com/ Michigan Iron Nugget LLC -A joint venture between Cliffs Natural Resources Inc. and Kobe Steel Ltd, the company was formed to produce high iron content nuggets through a patented process. The company plans to invest $280 million in a new facility in Tilden Township (Marquette County). The company expects the project to create up to 114 direct new jobs, resulting in a state tax credit valued at $1.9 million over six years. Michigan was chosen over competing sites. Tilden Township is considering an abatement in support of the project. Multi Packaging Solutions -- A leader in print and packaging solutions for the cosmetics, consumer, entertainment, healthcare, and horticulture markets plans to invest $5.3 million to grow its pharmaceutical carton business in Holland and Allegan. The company expects the project to create up to 180 direct new jobs, resulting in a state tax credit valued at $865,119 over four years. Michigan was chosen over competing sites in Indiana, Texas, New Jersey and North Carolina. The cities of Holland and Allegan are considering an abatement in support of the project. Severstal Dearborn LLC - A state brownfield tax credit valued at $10 million, as well as state and local tax capture valued at $19.4 million will support the construction of a high-speed Continuous Annealing Line capable of producing advanced high strength steel at its facility in Dearborn. The project includes demolition, removal of debris, re-routing utility lines and asbestos removal. To date, Severstal has invested over $1.3 billion in equipment and improvements to its Dearborn facility. The project is expected to generate $280 million in new private investment and create up to 70 full-time jobs. http://www.severstalna.com/ Spartan Motors Chassis Inc. - The designer, engineer and manufacturer specialty chassis, specialty vehicles, truck bodies and aftermarket parts for the recreational vehicle (RV), emergency-response, defense, government services, delivery and service markets plans to invest $5.4 million to expand existing facilities in Charlotte. The company expects the projects to create up to 450 direct new jobs, resulting in a state tax credit valued at $8.8 million over 10 years. The city of Charlotte is considering an abatement in support of the project. http://www.spartanmotors.com/ County of Grand Traverse - The Grand Traverse County Land Bank will use state and local tax capture valued at $50,537 to prepare three blighted properties in Interlochen and Traverse City for sale. The project will include infrastructure improvements, site preparation, demolition and lead or asbestos abatement. The project will generate $450,000 in new private investment. The Michigan Economic Growth Authority (MEGA) may, under statute, provide a refundable tax credit against the Michigan Business Tax (MBT) to companies expanding or relocating their operations in Michigan. Tax credit agreements, awarded on the basis of the company's strength of project, program guidelines and MEGA board approval, are earned over time by a company's performance in meeting specified investment and hiring requirements.

Job board improves functionality

2011-03-23T09:10:00.000-07:00

Michigan Department of Energy, Labor & Economic Growth Acting Director Andrew S. Levin today announced a new enhancement to the Michigan Talent Bank Web site that will make it easier for job seekers to retrieve their User ID's and PIN numbers. By clicking on the "Forgot Your User ID and PIN" button, job seekers can now opt to have their information sent to them securely via text message on their cell phones. Previously, job seekers could only request the information through e-mail or by calling the Michigan Talent Bank help desk.

"The Michigan Talent Bank offers all of the resources of other national job-search Web sites without any cost to the employer or job seeker, and this new feature makes it even easier for job seekers to access the site," Bureau of Workforce Transformation Director Liza Estlund Olson said. "This award-winning Web site has become a go-to resource for employers, whether the employer is a small local business or a major international corporation."

Job seekers and employers are encouraged to use the Web site at www.michigan.gov/talentbank. In 2010, other enhancements and tools were added to the site, including:

Job seekers creating resumes can upload data from a resume previously saved as a Word, PDF, text, or HTML file when creating a new resume.

Creating and updating resumes is now quicker and easier. The new multi-page format saves data more frequently.

New style options have been added such as creating bullet points, offering job seekers more flexibility in presenting their qualifications.

Job seekers now have a choice of three different resume types: Chronological, Functional and Combination. Job seekers can switch between types at any time to tailor their resume instantly to various job openings.

Job seekers can e-mail their resumes as a PDF file, a popular request from employers. They can also conveniently save those PDF resumes to a storage device or in their e-mail for future use.

Improved employment searches more accurately match job titles, creating better job matching for both employers and job seekers.

Job seekers and employers can further refine their search by identifying employment criteria such as full-time, part-time, seasonal, or temporary.

"The Michigan Talent Bank is very easy to use for both employers and job seekers," continued Estlund Olson. "Currently, the Michigan Talent Bank has more than 38,000 posted job openings and averages 8,800 new job postings a month."

The Michigan Talent Bank has won numerous national and state technology awards since its launch in 1998. Interested job seekers and employers can join the Web site free of charge at www.michigan.gov/talentbank.

DELEG staff is available Monday through Friday from 8 a.m. to 5 p.m. to answer questions about the use of the Michigan Talent Bank by calling toll-free at 1-888-253-6855 or via e-mail at mtbhelp@michigan.gov.

Job seekers and employers who are interested in receiving personal assistance in finding jobs and workers can contact their local Michigan Works! Agency by calling 1-800-285-WORKS (9675).

Tourism flat in fourth quarter

2011-03-10T13:19:00.000-08:00

Comerica Bank’s Michigan Tourism Index was flat in the fourth quarter of 2010, at a level of 93. The fourth quarter reading is up six points, or 7%, from the cyclical Index low of 87. The Index averaged 92 points for all of 2010, up two points from the Index average for all of 2009.

“Our Index provided mixed results in the fourth quarter, with gains in hotel occupancy and casino revenues offset by weaker passenger air traffic,” said Dana Johnson, Chief Economist at Comerica Bank. “Households and businesses are gradually become more willing to increase their discretionary spending as they sense the economy is experiencing a sustained, moderate expansion. Looking ahead, our Index should perform modestly better over the next several quarters, particularly if the state starts growing fast enough to begin generating increases in jobs.”

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.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.

Business leaders like Snyder plan

2011-02-28T06:07:00.000-08:00

Businesses generally seem supporting of Gov. Snyder's proposals to revamp the Michigan tax code, though it remains a gamble as to whether a lower tax structure on companies will be better for economic growth than the tax credits he intends to phase out.

Snyder proposes to eliminate the Michigan Business Tax and its accompanying array of tax credits and incentives and replace them with a new 6% corporate income tax on "C" corporations. The governor said the plan would result in a nearly $1.8 billion tax cut for Michigan businesses and a simpler, fairer and more competitive tax structure.

"Let's stop the tax credits and realize, in many cases, that the only reason they're in the tax code is because someone had more political power," Snyder said in presenting his budget. "We're eliminating all those credits. We will honor past credits, but it is time for simple, fair and efficient on the business side...It will make us among the most competitive in the country for business taxation" and will create jobs.

Snyder's budget would also eliminate tax credits for brownfield redevelopment, the Michigan Economic Growth Authority program -- a favorite stimulus tool of former Goevernor Jennifer Granholm -- alternative energy, film, renaissance zones and other areas.

Snyder's approach has won favor with groups such as Business Leaders for Michigan, the state’s business roundtable. It's a comprehensive approach to managing the state’s finances and making Michigan more competitive to create jobs.

“We support the Governor’s budget recommendation because, like the Michigan Turnaround Plan we proposed last year, it adopts multi-year budgeting, structurally balances the budget and reforms the tax system," said Doug Rothwell, President & CEO. "We urge the public and legislators to view it in its entirety and to resist picking and choosing elements of it. If taken as a whole it is good for Michigan and Michiganders.”

Business Leaders for Michigan strongly support the Governor proposing a two-year budget noting it is critical to changing the culture of fiscal planning in Michigan. “It is encouraging to see more of a long-term view of expenditures and revenues and an effort to address problems now instead of kicking them down the road,” Rothwell said.

In addition to improving budgeting practices and reducing spending, Business Leaders for Michigan applaud the Governor for addressing tax reform in his budget presentation. “Michigan’s most pressing need is jobs,” Rothwell said. “To grow jobs, we must become more competitive. Right now, Michigan’s taxes on job providers are among the highest in the nation, putting us at a disadvantage compared to other states and other countries. The Governor’s proposed tax changes will significantly improve Michigan’s ability to compete for jobs. We look forward to working with the Administration and the Legislature to make sure we are competitive both nationally and globally.”

MI Perspective: It's no surprise that businesses like the prospect of lower tax rates. What remains to be seen, however, is whether those rates actually do create jobs either among existing employers or by attracting new businesses. Companies and the consultants they hire to select job sites often respond very favorably to credits. Moreover, the cuts in funding for redevelopment programs will thwart improvements in blighted areas that are of no interest to anyone. Still, the worst-case scenario is that Snyder will fall in love with his perceived mandate for a conservative agenda as other new governor's like Wisconsin's Scott Walker whisper in his ear. An attempt to improve state finances on the backs of unionized employees would bring shame to a state built with the help of organized labor in an attempt to service to the unending greed of corporate CEOs and the GOP puppets who do their bidding.

Great Lake cleanup faces budget cuts

2011-02-16T05:20:00.000-08:00

President Obama's proposed 2012 budget would cut $125 million from projected funding for the Great Lakes Restoration Initiative, and a Republican vision for the budget would cut even deeper.

Environmentalists say the funding cuts, coming via reduced funding for the Environmental Protection agency, would stall progress on addressing longstanding problems faced by the Great Lakes.

Much work remains to to prevent problems such as “beach closings and swimming bans,” says EBA Senior Advisor Cameron Davis. “Things like habitat loss and trying to clean up our toxic hot spots that continue to threaten public health and property values around the region.”

Another area that is addressed by the initiative is the prevention and monitoring of intrusive species like the Asian Carp. Thom Cmar, an attorney with the Natural Resources Defense Council, says money from the program has already helped build electric barriers to try to keep the fish out of the Great Lakes and surrounding waterways.

President Obama has called for $350 million for the initiative in 2012, down from $475 million in 2010. But House Republicans have proposed a continuing resolution that would decrease that number to $225 million.

Joel Brammeier, president of the Alliance for the Great Lakes, says the plan is meant to build year after year, so funding uncertainties can disrupt work on the ground and could lead to increased costs in the long run. That's because many projects are implemented in phases, and if too much time passes before they begin, changes might need to be made to engineering and construction plans.

Obama cites Michigan in speech

2011-02-08T10:02:00.000-08:00

President Obama yesterday cited Michigan initiatives among the examples of economic recovery and why it's time to "invest in America."

Obama's remarks came in Washington in a speech to the U.S. Chamber of Commerce, group the president has feuded with extensively over the past two years. Specifically, he urged U.S. companies to invest some of the $2 trillion sitting on balance sheets back into economic growth. Citing examples of the merits of new growth initiatives, Obama made these references in his speech:

"The key to our success has never been just developing new ideas; it's also been making new products.So Intel pioneers the microchip, then puts thousands to work building them in Silicon Valley. Henry Ford perfects the assembly line, and then puts a generation to work in the factories of Detroit. That's how we built the largest middle class in the world. Those folks working in those plants, they go out and they buy a Ford. They buy a personal computer. And the economy grows for everyone. And that's how we'll create the base of knowledge and skills that propel the next inventions and the next ideas.

"Right now, businesses across this country are proving that America can compete. Caterpillar is opening a new plant to build excavators in Texas that used to be shipped from Japan. In Tennessee, Whirlpool is opening their first new U.S. factory in more than a decade. Dow is building a new plant in Michigan to manufacture batteries for electric vehicles. A company called Geomagic, a software maker, decided to close down its overseas centers in China and Europe and move their R&D here to the United States. These companies are bringing jobs back to our shores. And that's good for everybody."

Snyder offers Citizens Guide to recovery

2011-02-02T06:15:00.000-08:00

Gov. Rick Snyder is ramping up to announcement of his proposals to improve Michigan's economic fortunes. But first, he has offered a stark look at state finances, with greater transparency than typical outlines from Lansing.

Snyder put forth a "Citizen's Guide to Michigan's Financial Health" — a simplified state balance sheet designed to show, in an easily understandable form, the state's finances.

The guide is designed to simplify the state's voluminous Comprehensive Annual Financial Report and provide greater transparency for Michigan's total financial condition — including the money that's coming in and going out, fund balances and outstanding obligations.

What citizens will see is a snapshot of spending and debt levels that exceed state tax revenue, unfunded pension and retiree health care obligations and a state "rainy day" fund that doesn't hold water.

Among the specifics: there is approximately $18.2 billion in unfunded state and local government pension obligations, encompassing $3.1 billion for the state, $3.1 billion for local governments and $12 billion for school districts; and a combined $40.2 billion in unfunded retiree health care obligations.

Some of Snyder's proposed solutions will become evident Feb. 17 when he presents his state budget and accompanying tax message. A centerpiece is Snyder's flat corporate income tax proposal that would eliminate deductions along with Michigan Economic Growth Authority tax credits -- a favorite vehicle for business investment incentives of former Gov. Jennifer Granholm.

City defaults could hit close to home

2011-01-13T11:23:00.000-08:00

The prospect of cities declaring bankruptcy and defaulting on municipal bond obligations continues to worsen, with Detroit high on the watch list in financial circles.

One of the latest sentinels of the growing national problem is Jamie JP Morgan CEO Jamie Dimon. He expects to see more U.S. municipalities declare bankruptcy, Bloomberg News reports. His concerns echo those of others who have said the next major financial crisis will come from a wave of local government defaults, including famed investor Warren Buffett, who has called the municipal debt situation a "terrible problem."

"If you are an investor in municipals you should be very, very careful," Dimon said, according to Bloomberg. An increase in city defaults would ruin their credit rating make it difficult for other municipalities to continue borrowing money from bond investors.

Local governments have had to deal with painful erosion in tax revenue, which in some cases threatens to ruin budgets. Amid the severe financial downturn of the past three years, cities and states have had to severely cut back their spending, even as the need for their services has grown. While official bankruptcy remains rare, experts say there's trouble brewing.

To avoid such as worst-case scenario, Detroit planning officials have outlined steps that would eliminate key municipal services -- garbage removal, police patrols, road repair, street lights -- in some 20% of the city's 139 square miles. The plan is consistent with Mayor Dave Bing's plan to reconfigure Detroit to reflect it's declines in population and fiscal stability.

Neighboring Hamtramck, meanwhile, is one Michigan city that is quickly running out of services to cut. Michigan currently has 68 cities on its "fiscal watch" or "fiscal stress" lists, meaning these communities are at risk of running out of money -- some perhaps even early this year. Many communities, Hamtramck included, have seen sharp drops in their populations and tax base as laid-off manufacturing workers have moved elsewhere in search of new jobs.

Cities that do head for the red shouldn't count on Lansing for help. The Michigan state budget deficit for fiscal 2012 is forecast to be $1.85 billion, though some analysts suspect it will actually be more than $2.0 billion.

Welcome to office, Governor Snyder.

Snyder cites goals to reinvent economy

2011-01-05T06:48:00.000-08:00

Gov. Rick Snyder in his inaugural address called for a culture change in which cooperation, courage and innovation will lead the way to reinvented economy and enhanced quality of life in Michigan.

Snyder made his remarks on the Capitol steps upon taking the oath of office to become Michigan’s 48th governor.

“It is time to stop fighting among ourselves,” Snyder said. “It is time to solve our problems and create new opportunities.”

Snyder’s commitment to bipartisanship and public service was reflected in the inaugural ceremony, in which local and state leaders of both political parties were invited to participate. Detroit Mayor Dave Bing emceed the event and Grand Rapids Mayor George Heartwell delivered the invocation and closing prayer. The legislative majority and minority leaders shared the stage, which was not the case in previous inaugurations. Former Govs. Jennifer Granholm and John Engler also bridged the political gap by attending.

“We need to put party and geography aside and come together as Michiganders to reinvent Michigan,” Snyder said, but cautioned that getting Michigan back on track will require sacrifice and a new mindset:

“It won’t be simple or easy. There is no magic solution to our problems. But with most of our problems, there also comes opportunities. It will require shared sacrifice from all of us. Many have already made sacrifices. Many of us need to join those who have already contributed.”

Doing so will enable Michigan to achieve key goals such as becoming a globally competitive leader in innovation, creating more and better jobs and providing young people with greater opportunities and a bright future in the state.

Snyder pointed out the perils facing Michigan if its leaders continue to do business as usual.

“The old ways don’t work and it is time to start a new era,” he said. “This is our moment of opportunity to realize we have a bright future instead of a declining future.”

Michigan already has many building blocks for success in place, according to Snyder. Its world-class universities, unmatched natural resources and the entrepreneurial spirit of its people make Michigan unique. The inauguration showcased that theme by offering an abundance of food products grown or made in Michigan.

The governor said he looks forward to hitting the ground running with Lt. Gov. Brian Calley, legislative leaders and stakeholders across the state.

“I have been hired to represent all people of the state of Michigan and move us all forward together,” Snyder said. “We all want to live in a state of high expectations and results. We can only achieve extraordinary things if we aspire beyond traditional thinking. The old unbelievable needs to become the new achievable. Let today be the birth of a new chapter in Michigan’s history. Let today be the birth of the era of innovation and reinvention.”

Population drop hurts MI influence

2010-12-23T09:50:00.000-08:00

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

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

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

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

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

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

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

Wind turbine production pact set

2010-12-23T09:42:00.000-08:00

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

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

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

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

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

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

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

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

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

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

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

Redevelopment projects gain investment

2010-12-16T13:59:00.000-08:00

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

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

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

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

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

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

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

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

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

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

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

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

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

Economic recovery still uneven

2010-12-08T07:59:00.000-08:00

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

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

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

Luster of GM mark grows again

2010-12-01T10:42:00.000-08:00

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

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

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

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

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

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

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

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

Companies to invest $421 million

2010-11-19T07:07:00.000-08:00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Economy hit two-year high in September

2010-11-09T06:58:00.000-08:00

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

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

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

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

Snyder leads new charge for turnaround

2010-11-03T06:41:00.000-07:00

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

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

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

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

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

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

Two cheers for the Big Three

2010-10-27T05:48:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Economist: Jobs picture to brighten

2010-10-22T09:20:00.000-07:00

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

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

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

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

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

Small business lending gets new injection

2010-10-18T10:47:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

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

Technology Center opens in Detroit

2010-10-13T09:37:00.000-07:00

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

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

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

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

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

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

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

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

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

GM invests $145 million in Buick plant

2010-10-08T09:08:00.000-07:00

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

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

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

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

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

Wellness programs boost productivity

2010-10-04T09:48:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

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

The study appears in the Journal of Health & Productivity.

Michigan munis getting a bad rap?

2010-09-22T06:00:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

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

Education's role in recovery outlined

2010-09-22T05:54:00.000-07:00

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

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

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

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

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

Engineering fair set for Kalamazoo

2010-09-22T05:51:00.000-07:00

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

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

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

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

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

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

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

MDs address business of health care

2010-09-09T06:54:00.000-07:00

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

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

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

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

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

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

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

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

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

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

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

Homebuilding recovery seen for 2011

2010-09-09T06:24:00.000-07:00

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

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

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

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

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

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

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

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

Granholm claims victory on missions

2010-08-25T05:38:00.000-07:00

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

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

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

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

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

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

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

State's strength hinges on wellness

2010-08-18T05:05:00.000-07:00

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

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

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

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

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

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

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

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

MichBio launches Career Center

2010-08-16T09:45:00.000-07:00

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

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

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

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

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

Golf brings Benton Harbor to fore

2010-08-16T08:38:00.000-07:00

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

Or at least contribute to its survival.

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

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

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

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

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

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

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

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

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

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

MI resident leads safety engineers

2010-08-13T09:50:00.000-07:00

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

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

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

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

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

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

Internship training available to employers

2010-08-04T10:55:00.000-07:00

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

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

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

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

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

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

Chrysler retains Sterling Heights plan

2010-08-03T10:43:00.000-07:00

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

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

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

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

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

Tourism business still seeking uptick

2010-07-29T07:12:00.000-07:00

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.

State aprprenticeship support increased

2010-07-28T04:44:00.000-07:00

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.

Extended jobless benefits two weeks away

2010-07-26T08:07:00.000-07:00

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.

Auto parts maker investing in Troy

2010-07-26T05:40:00.000-07:00

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.

Whirlpool affirms MI commitment

2010-07-21T09:18:00.000-07:00

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.

President energizes plant groundbreaking

2010-07-16T07:43:00.000-07:00

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.

Obama to visit Holland battery plant

2010-07-14T08:33:00.000-07:00

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.

Economy shows monthly uptick

2010-07-07T09:55:00.000-07:00

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.

WMU Park adds technology firm

2010-06-30T07:04:00.000-07:00

An information technology company focused on helping school districts manage student and operating data has established its main office in Western Michigan University's Business Technology and Research Park.

Level Data, a nearly three-year-old company that counts some 300 schools in 10 states among its growing list of clients, has moved into 1,500 square feet of office space in the BTR Park's Initech Building in Kalamazoo.

With eight full-time employees, the company designs solutions that eliminate data management problems for districts that range from 300 to 20,000-plus students. Area districts among Level Data clients include Sturgis, Three Rivers, Mattawan and KRESA--the Kalamazoo Regional Educational Service Agency, which provides programs and services for 200 county schools.

The move to the BTR Park makes Level Data the third company this spring to commit to becoming a corporate partner in the WMU facility.

Level Data President Matt Betts characterizes his firm as a managed service company that can save the districts staff time and money and promote data quality. The company helps district officials consolidate and manage data related to enrollment, instruction, network management, food service, hiring, payroll and transportation--virtually any application that requires student and staff data. Level Data's service also allows districts to save the hours spent cleansing data for accuracy. Districts require quality student data to secure funding, meet state and federal reporting guidelines and produce effective parental communications.

"We provide a service tailored to each district that leverages the district's existing applications and technology and automates processes requiring critical data input," Betts explains.

Betts notes that data management success for schools means school officials have the data quality and time to take the next step and move into data-based decision making--actually using data to make critical decisions about any or all of the district's core functions.

"Schools are in the business of education, not information technology and database management," he says. "One area school district added up all the staff time it saved by hiring us and discovered its return on investment was 4,000 non-instructional hours annually."

Betts calls Level Data a service company that operates in a cloud-computing environment hosted by Secant Technologies. He says using the Secant cloud allows Level Data to focus on development and customer support rather than hardware and network management.

"We can have clients anywhere, and our business is infinitely scalable," he says. "When we need more space or a new server, we can have it in less than an hour."

Despite that flexibility and freedom, Betts says Level Data is committed to staying in the BTR Park.

"It's the perfect place for our company from a competitive perspective."

The company intends to work with the WMU departments of Computer Science and Computer Information Systems as well as faculty and students in education, business and engineering disciplines. Betts is particularly interested in recruiting young talent to his firm.
By year's end, Betts says, Level Data will be managing data for nearly 300,000 students and he'll be looking for student interns who can help shape the service delivery model moving forward. The opportunity for interns working with his company, will be like working in "a high-tech toy store for data people," Betts says.

"For the right students, these will be not just internships, but a chance to have real input--a say in what we do,” he says. "They'll have the time of their lives," Betts says.

Bob Miller, WMU's associate vice president for community outreach and the park's point person, calls Level Data's commitment to working with students and academic departments the kind of relationship envisioned when the park was established.

"This is exactly what we continue to look for," Miller says. "We want innovative firms that recognize our faculty and students as resources that will help not only their company, but also our state move forward."

WMU's Business Technology and Research Park focuses on the life sciences, advanced engineering and information technology. The park shares the University's 265-acre Parkview Campus with the College of Engineering and Applied Sciences. Launched in late 1999, the BTR Park is home to some 30 companies directly employing nearly 700 people.

Strategy for jobless benefits recast

2010-06-28T09:31:00.000-07:00

The U.S. Senate’s rejection last week of extended emergency benefits for the unemployed is forcing a new round of maneuvers that Michigan officials yet hope will provide relief to jobless workers and state coffers.

The emergency benefits were triggered in 2008 and expanded in last year's economic stimulus package. The benefits provide an average of $309 a week for up to 99 weeks to people who have exhausted their state unemployment assistance. The benefits expired June 2, and an estimated 1.2 million workers have since had their checks cut off, according to the Labor Department. Unless Congress acts, the program will expire by the end of October.

Here at home, the Michigan Unemployment Insurance Agency estimates that 87,000 people will exhaust their jobless benefits by July 3, a number that could double by the end of July. The agency said that by year’s end the number of people who will be affected by the expiration of federal UI benefit extensions will exceed the 408,000 that are currently collecting state or federally funded unemployment benefits.

In addition to extending emergency unemployment benefits through November, the package rejected by the Senate last Thursday would have provided state governments with $16 billion in additional Medicaid funds, money that some 30 states are counting on to balance their 2011 budgets. It also would have extended expired tax breaks for businesses and individuals, including a tax credit for research and development that is prized by some of the nation's largest companies.

On a press conference call Friday, Gov. Granholm (D) outlined what she says is at stake in the decisions from Washington. Unless the measure is revived, she said, Michigan will have to slice $500 million out of next year's budget, a sum that she said would force thousands of state layoffs and the potential elimination of state services such as long-term care or mental-health coverage. Programs that potentially could be affected include Medicaid prescription drug coverage, payments to Medicaid providers, mental health services, revenue sharing and university funding.

"Millions of people across the country are hoping for some relief," Granholm said, adding that governors are discussing a bipartisan lobbying campaign. "The line in the sand that's been drawn by Republicans on the floor of the U.S. Senate is nothing short of devastating for Michigan and people across the country."

Republicans have steadfastly opposed the bill, arguing that it would worsen an already record budget deficit, and insisted that the cost of the package be covered with cuts in existing programs. Some conservative Democrats have also expressed concerns about the impact of the package on the deficit, which has reached record levels amid the recession. Senate Democratic leaders announced Thursday that they were shelving effort for approval after all 40 GOP senators and Sen. Ben Nelson (D-Neb.) voted to block the latest version of their aid package.

However, a day after voting to block the Democratic legislation, a key Republican senator urged Democrats to try again, saying she would support a stripped-down bill aimed solely at guaranteeing unemployment checks to millions of people who have been out of work more than six months. Sen. Olympia Snowe (R-Maine), a moderate whose vote had been ardently courted by Democratics, sent a letter Friday to Senate Majority Leader Harry Reid (Nev.), arguing that the plight of the long-term unemployed must be swiftly addressed.

"The hundreds of thousands of unemployed Americans who are losing jobless benefits every week deserve our immediate attention," Snowe wrote, calling for "a free-standing extension of unemployment insurance benefits" to be brought to the Senate floor for a vote early next week. "Separating the unemployment insurance provisions [from numerous other provisions in the bill] and passing it as emergency legislation acknowledges the urgency of helping those who continue to look for work."

A spokesman for Reid chided Snowe’s suggestion based on her voting record and said she provides no evidence that any other Republicans support her proposal. In the House, however, Democrats appeared more receptive to a standalone bill. Senior aides said the idea was under discussion, and that a bill could be unveiled as soon as next week.

"It really has to happen," said House Speaker Nancy Pelosi (Calif.) said of reauthorizing extended benefits in an interview Friday with Huffington Post. Even if the House were to act, however, it is unclear whether the Senate could push through an emergency bill before the July 4 recess.

Daimler putting $194 million in diesel plant

2010-06-23T05:00:00.000-07:00

Daimler Trucks North America says it will invest $194 million in the Detroit Diesel engine production facility in Redford, Michigan, owing to increased demand for fuel-efficient diesel engines.

The investment will be supported by a variety of state and local incentives. These incentives include a Michigan Economic Growth Authority Award of $56.8 million, granted by the Michigan Economic Development Corporation, as well as other state and local tax credits and abatements.

Following a call for bids and a series of public hearings, DTNA was authorized to receive a subsidy for its investment project in Redford. “We’re very happy with the framework agreement we recently negotiated with the UAW,” says Martin Daum, President and CEO of DTNA. “We would also like to thank the State of Michigan, Redford Township, and Wayne County for jointly reaching the decision to provide us with the funding package. Our total investment of approximately $200 million underscores the importance of the Redford plant and our confidence in the workforce of Detroit Diesel. Strong partners are needed if a commitment on this scale is to be successful.”

DTNA’s investment will substantially expand the engine production capacity in Redford. Detroit Diesel’s diesel engines with BlueTec technology are extremely fuel-efficient, and they are taking on a pioneering role within the North American industry when it comes to complying with the U.S. emissions standard EPA 2010. DTNA is the leading supplier of EPA 2010-compliant Class 8 heavy-duty trucks.

A big part of the investment will be spent on cylinder head production. The funds will also be used to redesign the manufacturing facilities, improve plant infrastructure, and purchase machines and equipment. The measures for increasing production capacity at the 28-hectare Redford production plant are scheduled to commence in July 2010 and continue until September 2011.

Detroit Diesel Corporation, which has its headquarters in Redford, Michigan, is a company of Daimler Trucks North America and a leading manufacturer of on-highway diesel engines for the commercial truck market.

SE getting additional business seed money

2010-06-21T10:38:00.000-07:00

The New Economy Initiative for Southeast Michigan (http://www.neweconomyinitiative.org/ ), an innovative philanthropic effort to accelerate the transition of metro Detroit to an innovation-based economy, today announced a $3 million grant over three years to support the newly formed Business Accelerator Network for Southeast Michigan, a region-wide collaborative effort dedicated to attracting and retaining business in southeast Michigan.

Comprised of the region's four key business accelerators– Ann Arbor SPARK, Automation Alley, Macomb-OU INCubator, and TechTown, the Business Accelerator Network for Southeast Michigan will work collaboratively to share best practices, host events focused on addressing issues and goals that impact southeast Michigan, support business plan development, and leverage funding to grow business in the region.

Collectively, these four business accelerators have invested in 339 start-up companies, invested more than $18 million, created more than 1,000 jobs and secured more than $101.2 million in additional capital for the companies.

"This award supports NEI's focus on building strong networks that support the development of a more diverse, knowledge driven economy," says David Egner, executive director of the New Economy Initiative. "An intensified level of collaboration among these outstanding business organizations will create a multiplier effect, reenergizing their existing initiatives and bringing about new and unparalleled cooperative ventures. It sends a powerful message to business leaders across the nation that southeast Michigan is working in a smart, integrated fashion to grow its business community."

The Business Accelerator Network for Southeast Michigan will support business development in the region through a variety of innovative projects and programs, which will be announced over the coming months. They will also be identifying opportunities to attract new dollars to support important regional efforts.

"Ann Arbor SPARK actively and successfully practices Open Source Economic Development™ throughout the state," said Mike Finney executive director of Ann Arbor SPARK. "This exciting funding collaboration between Business Accelerator Network for Southeast Michigan partners is an excellent example of regionalism and will enable us to assist additional start-up companies during the critical commercial acceleration phase of their business growth."

"Creating the Business Accelerator Network for Southeast Michigan allows for the expansion of current interactions among the partners, while opening the door for new business opportunities that will continue to brand Southeast Michigan as a center for technology excellence," said Ken Rogers, executive director of Automation Alley.

Adds David Spencer, executive director of the Macomb-OU INCubator: "Through this cohesive effort, we hope to significantly improve new business innovation and job growth for the entire southeast Michigan region."

"The 10 foundations of the New Economy Initiative are living up to their collective name and showing extraordinary initiative in using its resources to encourage region-wide collaboration. Each business accelerator has developed particular strengths, and by sharing them we will all be stronger. Among the areas where we can help each other is in helping small- to medium-sized companies drive their export business. At the same time, we will work collaboratively to attract mature businesses from overseas that will bring jobs to the region," according to Randal Charlton, executive director of TechTown. "At TechTown, we are developing close collaboration with our NAFTA partners, Canada and Mexico, and we also have developing business relations with Israel and other countries in the Middle East and Europe. It's important to share these relationships for the benefit of the entire region."

"We applaud the New Economy Initiative's collaborative efforts to identify, incubate and accelerate Michigan businesses, ideas and entrepreneurs," said Greg Main Michigan Economic Development Corporation president and CEO. "Their hard work on behalf of southeast Michigan's most promising businesses will serve them well."

MI economy softened in April

2010-06-21T07:26:00.000-07:00

Comerica Bank's Michigan Economic Activity Index fell two points in April, to a level of 82. However, April's reading is up 11 points from the same period a year ago, marking the third consecutive double-digit increase in the Index on a 12-month basis. April marks the first monthly dip in the Index since March of 2009. Year-to-date, the Index is up nine points, or 12%, from the average for all of 2009

"Following an impressive increase over the first quarter of 2010, our Index softened a bit in April," explains Dana Johnson, Chief Economist at Comerica Bank. "April's Index was driven lower by weak energy sales, steel production and housing activity. The upward trend in motor vehicle production remained strong in April, as did car sales, reflecting the consumer demand and production dynamics that have thus far driven the recovery both nationally and in Michigan. Looking ahead, persistent and broad-based gains in the national economy are highly likely to result in sustained moderate job growth in Michigan and 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.

SE economy picking up steam

2010-06-15T06:00:00.000-07:00

Improvement in the Southeast Michigan economy is accelerating and showing greater signs of recovery, according to a monthly survey of purchasing managers by Wayne State University's School of Business Administration and the Southeast Michigan chapter of the Institute for Supply Management.

The Southeast Michigan Purchasing Managers Index -a composite index of local economic activity calculated from the survey data-improved in May to 62.1. Up from 57.3 in April, the increase is a result of growth in production and new orders, and improvement in employment activity.

"According to the Purchasing Managers Index, employment was flat or going down for a long time and now we've seen a big improvement over the last four months," said Nitin Paranjpe, an economist and faculty member in WSU's business school. "That tells us that we should see the unemployment rate coming down over time, and in fact it has started to decline. It reached a high of about 14.9% in January and it's come down to about 14% now," he said.

Nationally, the employment index grew to its highest level in six years, suggesting that a sustained recovery in jobs is taking place. The U.S. jobless rate for May was 9.9%.

As factors such as production, new orders and employment have improved over the last quarter, so has purchasing managers' confidence that the local economy will continue to trend in a positive direction. More than 95% of purchasing managers surveyed in May expect that the economy will remain the same or become more stable over the next six months. Less than four percent expected conditions to get worse.

Paranjpe pointed out that the debt crisis in Europe, and how it might affect the Michigan economy, appeared to be the greatest concern for purchasing managers in May. "There is some concern that the turmoil in Europe might spill over into economic activity in Michigan, but we don't know yet," he said.

The complete Purchasing Managers Index report for May is available online at
http://www.ism-sem.org/uploaded_pics/pdf-20100603082111.pdf.

MI economic security linked to homeland defense

2010-06-09T07:19:00.000-07:00

U.S. homeland security will be a pillar of Michigan’s New Economy, provided that business leaders, entrepreneurs, academic researchers and others quickly step forward to fill recently identified technology gaps in the nation’s domestic defense.

That’s the message authorities are seeking to get out as it becomes increasingly clear the health of the Michigan economy and that of U.S. security are closely intertwined. This business sector – along with clean energy, life sciences, advanced manufacturing and film/tourism – has long been touted as a key to economic diversification. More recently, however, federal officials have outlined concrete areas that might allow Michigan to become a market leader and win a significant share of the projected $60 billion in potential state-distributed spending on homeland security.

Specifically, the U.S. Department of Homeland Security’s Science & Technology Directorate fired off a 23-page report outlining technology gaps that need to be plugged fast. Those “High Priority Technology Needs” include support for these areas:

1. First Responder
2. Border Security
3. Cargo Security
4. Maritime Security
5. Cyber Security
6. Information Sharing
7. Interoperability
8. Transportation Security
9. Counter-IED
10. Chemical/Biological Defense
11. People Screening
12. Infrastructure Protection
13. Incident Management

In essence, that’s a shopping list DHS officials are this summer bringing to Michigan, appealing to businesses and individuals in the automotive, defense and technology industries for help. And they appear ready to dole out jobs in exchange for rapid-implementation products and solutions to their problems.

The edge for Michigan in supplying those solutions lies partly with the state’s proven engineering and scientific talent, globally respected research universities, and the nation’s largest commercial border crossing. Perhaps the most compelling advantage for Michigan, however, might actually be its rich automotive heritage and knowledge base. Experts believe that retooling auto manufacturing plants and utilizing existing facilities – in many cases with relatively minor adjustments – would allow Michigan to supply many items on the DHS wish list. That, however, assumes the right people step up and step forward to meet with federal officials.

“Meeting with industry leaders and technology providers to share information and ideas is an important step in providing the best solutions to border security challenges,” says Mark Borkowski, executive director of DHS Customs and Border Protection Secure Border Initiative.

Borkowski will be one of the speakers and participants at the Northern Border Security Conference scheduled for July 27-28 at the Hyatt Regency Dearborn. Other featured participants include Brad Buswell, deputy under secretary of the DHS S&T Directorate; David Cole, chairman of the Center for Automotive Research, Neal Belitsky, CEO of Detroit Windsor Tunnel LLC, and; Thomas Jeffers, vice president, OnStar.

“This conference is a major opportunity for many Michigan companies to put their best foot forward and shine – and help meet our nation's critical national security needs in the process," according to Leslie Touma, Founder and CEO of Michigan Security Network, the event organizer. “For individuals and companies who primarily service the defense and automotive industries, it provides a tremendous opportunity to highlight dual use, multi-functional technology that can provide important solutions for the homeland security market.”

Companies and individuals wishing to review and respond to technology gaps in the DHS High Priority Technology Needs document can do so at the web site http://www.michigansecuritynetwork.com/, where there is also information about the July conference in Dearborn.

MEDC forming two new investment funds

2010-06-08T06:36:00.000-07:00

The Michigan Economic Development Corporation (http://www.michiganadvantage.org/) is forming two $6 million funds that plan to invest in 12 to 24 Michigan companies in four industries as part of the group's overall 21st Century Jobs Fund

True to the MEDC's mission of promoting economic diversification for Michigan, the investments will flow to businesses in the high growth potential sectors of life sciences, alternative energy, advanced manufacturing and homeland security and defense.

Each fund will be run by experienced professional investors on the verge of creating their own venture capital firms. These investors will partner with established venture capital firms in the state, who will be able to provide additional capital to the new companies as they mature, Ned Staebler, an MEDC vice president, explained to the Detroit Free Press. A panel of investment experts will select the managers for the two funds from among the 13 applications received by the MEDC.

Not everyone agrees that the new funds are the best way to spur economic growth. Ken Rogers, executive director of Troy-based Automation Alley, Michigan's largest technology business association, advocates putting the money to use at existing funds that have already produced good results, such as the one his group runs. "Why not fund what works?" he told the Free Press.

But Staebler argues that existing funds lack professional portfolio managers and strong links with venture capital firms. "It's a different piece of the puzzle," he said.

GR lauded in Fortune magazine

2010-06-04T06:16:00.000-07:00

Eyes continue to open across the country: Fortune magazine editors, for example, were surprised to find a "model for other cities looking to engineer new growth after the decline of old-economy industries" smack in the middle of "the Rustbelt of Michigan."

An article in the magazine highlights Grand Rapids as an example of a successful city and points to locally developed and supported institutions: Van Andel Institute, Medical Mile healthcare and research complex, DeVos Place convention center, JW Marriott Hotel, renovation of Civic Theatre into the Meijer Majestic Theater, the new Grand Rapids Art Museum and Frederik Meijer Gardens and Sculpture Park. The newest project under development is an urban market designed to attract visitors and businesses downtown.

MI Perspective: As the saying goes, any publicity is good publicity. Still, we look forward to the day when business thought-leaders are no longer shocked -- shocked, do you hear! -- to find shining examples of new economic growth in Michigan. Follow this link to view the Fortune article:
http://money.cnn.com/2010/05/11/autos/michigan_success_story.fortune/index.htm

Spotlight on security coming to Dearborn

2010-06-02T10:31:00.000-07:00

Details are emerging on what could be a breakout event for the homeland security industry in Michigan.

Organizers with Michigan Security Network are still fleshing out the program and speakers for the Norther Border Security Conference, slated for July 27-28 at the Hyatt Regency Dearborn. However, they offer this additional information on efforts to boost economic development via this business sector.

What differentiates the Northern Border Security conference from other events?
First, it features high-level officials and decisionmakers from the U.S. Department of Homeland Security and U.S. industry, including OnStar, General Dynamics and possibly Google. Second, DHS has already released – intentionally prior to the conference start - very detailed technology "gaps" or challenges in order to find companies who can offer products and solutions. It is a tremendous business opportunity for companies and individuals to showcase their products and creativity.

Who should attend this conference?
While individuals and companies who primarily service the automotive and defense industries should absolutely attend, so too should manufacturers, high-tech providers, entrepreneurs, law enforcement & border security, first responders, the National Guard and those in academia, science, research and government. The key growth areas of the Homeland Security market are vast and, thus, present multiple business opportunities for the private sector.

What makes Michigan unique in terms of border security?
The Homeland Security market is one of the fastest growing markets in the U.S. economy, with $60 billion in potential spending among the states. We believe Michigan is uniquely qualified to be a national leader in key growth areas of the Homeland Security market based on our accomplished engineering and scientific communities and workforce, our globally respected universities, our committed business leaders and our indisputable geographic advantage, including the largest commercial border crossing in the country. We absolutely see the Homeland Security market as a major job growth area and being a major part of the new Michigan economy.

Where can people register to attend?
Visit: events.esd.org; or: the Michigan Security Network at: michigansecuritynetwork.com and click on the conference link. Or attendees may call Leslie Smith at: 248/353-0735 ext. 152.

Conditions good for summer of Pure Michigan

2010-05-27T05:34:00.000-07:00

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.

Motivate Michigan contest winners named

2010-05-26T08:47:00.000-07:00

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.

More med ed coming to Midland

2010-05-18T08:32:00.000-07:00

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/.

Detroit to host stem-cell education event

2010-05-14T08:01:00.000-07:00

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.

Holland area tops for basic needs

2010-05-12T05:44:00.000-07:00

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.

Kalamazoo Central wins Obama commencement

2010-05-10T09:29:00.000-07:00

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.

Ford advances battery pack production

2010-05-10T09:12:00.000-07:00

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.

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.

Top economist: brighter days ahead

2010-05-03T07:16:00.000-07:00

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.

West Michigan regional leadership touted

2010-04-30T06:19:00.000-07:00

A model of collaboration between business, government and allied organizations dedicated to quality of life improvements is gaining high marks from those who measure and promote regionalism.

Kudos came for The West Michigan Strategic Alliance prior to celebration of its 10th anniversary at its annual State of the Region event, with findings on how West Michigan measures up against 26 other regions and is a model national case study of regional collaboration.

WMSA was formed in 2000 by a group of community leaders from across West Michigan who viewed collaboration among businesses and institutions and across municipal and county lines to be a key to the quality of life in the region. WMSA's pursuit of its mission “to be a catalyst for regional collaboration” and resulted in a number of successful initiatives, including: Green Infrastructure, WIRED (Workforce Innovation in Regional Economic Development), West Michigan Internship Initiative, Regional Indicators, Regional Sustainable Manufacturing, and Clean Cities.

“Over the past decade, we've formed thousands of trusting relationships across the region and across government, business and institutional sectors,” said James Brooks, the Holland businessman who is one of the WMSA founders. “Our capacity to work together to respond to common challenges and opportunities has improved immensely.”

WMSA's success in regional leadership was noted in a report by the Washington, DC-based Council on Competitiveness (http://www.compete.org/). The report, “National Prosperity/Regional Leadership,” features WMSA as one of five case studies of regional collaboration in the United States. WMSA was specifically praised for its 2002 “Common Framework” report that started creating a regional mindset in West Michigan.

“The new tasks of regional leadership start with telling the region's story and concludes with establishing metrics to keep score of how you are doing,‟ said Samuel Leiken, vice president of the Council and keynote speaker at the State of the Region event. “West Michigan has done those things particularly well.”

The Council analysis ranks West Michigan ranks 9th overall among 26 similar U.S. regions on key social, economic, and environmental indicators. West Michigan was 17th on economic indicators, 10th on social indicators, and 6th on key environmental indicators. This years report added achievement targets for 2015 on each of the 15 indicators. In keeping with the axiom that you can't measure, WMSA is also at work creating metrics for more specific initiatives.

“The achievement targets for five years down the road are new this year,” reports Greg Northrup, WMSA president. “Our first several reports were benchmark data. We added the 26 peer regions last year. Now we want to not only know where we stand but set specific targets to improve our quality of life on these key indicators.”

The West Michigan Strategic Alliance fosters collaboration among the businesses, institutions and governmental units serving more than 1.4 million people living in a eight-county region including: Allegan, Barry, Ionia, Kent, Montcalm, Muskegon, Newaygo and Ottawa. WMSA works to encourage a regional mindset and foster collaboration on critical issues that impact how residents live, learn, work and play. Additional information is available at http://www.wm-alliance.org/

Innovation buzz being noticed nationwide

2010-04-28T10:29:00.000-07:00

Shaking the rust from it's rep, Michigan continues to draw nationwide attention for diversified business innovation.

Example: the technology and business online news network Xconomy (http://www.xconomy.com/) recently launched its fourth local channel, for Detroit, complementing others in Boston, Seattle and San Diego. That's impressive company to be keeping, considering the Motor City doesn't rev nearly as high in terms of venture capital and favorable climate for entrepreneurs.

But Xconomy Founder and Editor-in-Chief Robert Buderi says that, while other cities have more robust activity in key areas such as information technology and life sciences, "the innovation story playing out in Michigan is just as important, and in fact, the stakes may be far higher. To compete globally and thrive far into the future, the American auto industry will need to continue to reinvent itself. At the same time, entrepreneurs and government leaders recognize that the region needs a much broader economic base." That innovation, Buderi notes, has led to a profusion of investments in areas outside or peripherally related to the automotive industry, including biotechnology, biofuels, batteries, medical devices, software, and homeland security.

Xconomy Detroit will cover business investment, innovation and exponential economic growth (the xconomy factor) in Motown, much of the rest of Michigan, and northern Ohio.
Announcing the launch of the Detroit channel, Bruderi said, "scores of creative businesspeople and entrepreneurs are waiting to tell their stories and share their insights. And because we believe in the power of innovation and entrepreneurship to transform regional economies, we want to be on the ground in Detroit to hear what they have to say and watch the progress of their incredibly important efforts."

MI perspective: The juxtaposition of Detroit, even on a web page nav bar, with innovation hothouses such as Boston and San Diego can only help change the city's imprint on the nation's psyche. And the timing couldn't be better, considering general media coverage such as the recent "Dateline" special highlighting Mayor Bing's plan for downsizing the city. Xconomy, which also gained attention in the Wall Street Journal with it's new Detroit edition, gives greater voice to the descriptions of new economic beginnings, and a new day dawning, in Michigan.

Ford posts $2B quarterly net profit

2010-04-28T03:00:00.000-07:00

Ford Motor Company yesterday reported first quarter 2010 net of $2.1 billion, or 50 cents per share, a $3.5 billion improvement from first quarter 2009, boosted by strong-selling products, improvements in its global Automotive operations, and higher profits at Ford Credit.

Excluding special items, Ford reported pre-tax operating profit of $2 billion, or 46 cents per share, an improvement of $4 billion from a year ago. It marked Ford’s highest quarterly pre-tax operating profit in six years.

Ford North America posted first quarter pre-tax operating profit of more than $1.2 billion, a $1.9 billion improvement from first quarter 2009, as a result of higher volume and mix and favorable net pricing. Ford operations in South America, Europe and Asia Pacific Africa as well as Ford Credit also posted pre-tax operating profits in the first quarter and improved results over the same period in 2009.

“The Ford team around the world achieved another very solid quarter, and we are delivering profitable growth,” said Ford President and CEO Alan Mulally. “Our plan is working, and the basic engine that drives our business results – products, market share, revenue and cost structure – is performing stronger each quarter, even as the economy and vehicle demand remain relatively soft.”

Kalamazoo lands software firm's new office

2010-04-27T12:15:00.000-07:00

A Houston-based analytic software company that counts some of the nation's leading firms among its clients will open a new office May 1 at Western Michigan University's Business Technology and Research Park.

The software solutions company, PolyVista, will open a business development office in Kalamazoo and will immediately hire and train 10 to 20 young recruits who will become part of a customer interface and business development team.

"Our top priority is finding talent," says PolyVista's Jim Willard, who will lead the Kalamazoo office. "I'll be building a team that can focus on finding new homes for our technology."

PolyVista, which has a close relationship with Microsoft, currently counts among its client list such firms as Hewlett Packard, Southwest Airlines and Trane. Launched in 1995 with technology developed by scientists from the former Soviet Union, the company has put its patented engine to work analyzing data in such areas as trade compliance, reliability, marketing and operations and in such industries as finance, energy, transportation, insurance and manufacturing. It provides businesses with access to a search engine capable of analyzing data and discerning patterns and issues in a way that exceeds the scope of normal business intelligence operations

The PolyVista engine, Willard says, can focus on any combination of data --structured or nonstructured -- and can point to data relationships that were not previously defined for analysis.

"What you don't know is in the data is what PolyVista is all about," Willard says. "Sometimes it's not about finding the answers to questions in the data as much as it is about knowing what questions should be asked. Our engine can center on any kind of data and it can read and find meaning in such things as word patterns on blogs and customer comments. We're capable of the same kind of data analysis and text mining that is done for national security reasons, but we're able to do it within the budget constraints most companies can afford."

Southwest Airlines, for instance, uses PolyVista’s text and data-mining analysis tools to enhance the analysis capability for data in its pilot reporting program. Trane uses PolyVista tools for early detection of warranty-related issues. The company can then correct them and pass the information on to its engineering and design teams to avoid problems in future products.

The move to Kalamazoo is a strategic move to expand PolyVista's base, says Willard, who is a Michigan native. Although the company was originally focused on expansion in Northern Virginia, Michigan proved to be an attractive alternative because of the relatively low cost of doing business in the state and the focus on growth and business outreach. The opportunity to locate in a university community also was high on the company's wish list for expansion.

"Five years ago, this wouldn't have worked for us," Willard says, "but there's been a major culture shift in Michigan and a move away from the legacy thinking that was once dominant. We really like the environment and the entrepreneurial spirit we find here now."

According to Willard, staffing needs for the new operation are his top priority in the coming weeks. The young people he hires, he notes, are likely to be recent grads ready for a career-launching experience. He's looking for graduates particularly in the areas of sales and promotion, marketing and public relations.

"We are looking for talented kids who will be able to interact with very senior level executives and serve as liaisons between those execs and the rest of our company. They’ll be exposed to what is really a high-level consulting business."

WMU's Business Technology and Research Park focuses on the life sciences, advanced engineering and information technology. Information is available at www.wmich.edu/btr.

Home sweet home

2010-04-27T09:02:00.000-07:00

Conference to explore security opportunities

2010-04-23T06:13:00.000-07:00

Michigan companies will this summer get a hot new opportunity to explore growth initiatives at the Northern Border Security Conference, scheduled for July 27–28 in Dearborn.

At the conference, officials with the U.S. Department of Homeland Security will be exploring relationships with Michigan companies that can meet high-priority needs and fill technology gaps identified by DHS. Target attendees include entrepreneurs, scientists and advanced technology providers, as well as those in law enforcement/border security, heavy manufacturing and automotive industry businesses. The conference will include government decision-makers and industry leaders from around the country.

“More than any other state in the country, Michigan is best suited for a Northern Border Security Conference," according to Leslie Touma, founder and CEO of the Michigan Security Network. "Our accomplished engineering and scientific community, our committed business leaders, our globally respected universities and our indisputable geographic advantage — which includes the largest commercial border crossing in the country — make Michigan uniquely qualified to be a national leader in key growth areas of the homeland security market."

Conference registration opens Monday, April 26. For information regarding sponsorships and exhibitor information, phone Leslie Smith – MiSN Conference Manager, at 248/353-0735 (x152). The MiSN web address is http://www.michigansecuritynetwork.com/index.html.

School pact builds in-state pharma talent

2010-04-20T07:06:00.000-07:00

The University of Michigan and Grand Valley State University have inked an agreement that should help develop employees for the state's health care industry.

A new initiative, dubbed the Pharmacy Preferred Admission Program, will offer preferred admission into the U-M doctoral pharmacy program to a small number of promising Grand Valley freshmen. The U-M College of Pharmacy will reserve up to eight positions annually in its four-year PharmD doctoral program for admittance of Grand Valley freshmen who complete a rigorous undergraduate program of pre-pharmacy coursework and other requirements.

"This is an exciting example of two Michigan institutions of higher education working together to address mutual goals," said Frank Ascione, dean of the U-M College of Pharmacy.

"This program allows the U-M College of Pharmacy to tap into a new pool of in-state talent," Ascione said. "At the same time, it creates opportunities for outstanding Grand Valley students who may not have considered this to be a possible career path."

The agreement was signed Friday by U-M President Mary Sue Coleman and Grand Valley President Thomas J. Haas at a meeting of the U-M Board of Regents in Grand Rapids.

Grand Valley State University does not have a pharmacy school. But it offers graduate-level programs in health-related fields that include nursing, physical therapy, physician assistant, occupational therapy, health science, and health administration.

"This partnership further expands the breadth of health profession program offerings available to students by bringing together two premier institutions," said Jean Nagelkerk, Grand Valley's vice provost for health.

"As Grand Valley contributes to the development of the future pharmacy workforce, this agreement will enhance our presence as a partner in Michigan's growing health care community," Nagelkerk said. "It also benefits Grand Valley's students, who will have access to one of the top pharmacy educational programs in the nation."

The U-M College of Pharmacy receives about 500 applications annually for 80 openings in its highly regarded PharmD doctoral program. Under the new agreement, up to eight of those positions will be reserved for Grand Valley students who successfully complete the Preferred Admission Program.

It is the first collaboration of its kind that the U-M College of Pharmacy has formed with another university. The first group of participating freshmen will be admitted to the program in the fall of 2011.

"We don't have an undergraduate program on the western side of the state. But this initiative allows us to work with Grand Valley to identify talented, motivated students from western Michigan who are eager to pursue careers in pharmacy," U-M's Ascione said. "Grand Valley will identify those high-potential students, then we will work together to make sure they meet our high standards."

This is the second preferred-admission agreement between U-M and Grand Valley. A 2009 agreement enables selected U-M kinesiology students to enter Grand Valley's master's degree program in occupational therapy.

Wind-power potential lauded

2010-04-16T01:00:00.000-07:00

The trade group American Wind Energy Association affirms that wind power is a natural fit for Michigan's natural and human resources.

Projects across the state already generate more than 143 megawatts of electricity -- enough to power some 40,000 homes, according to the Association. Another 20 megawatts are already under construction, and a total of more than 2,500 megawatts of capacity are reportedly being planned. Michigan ranks 26th among states for current capacity, and 14th in potential capacity.
That potential stems both from Michigan's natural resources -- particularly offshore along the west coast of the Lower Peninsula.

The AWEA's new annual report says many of Michigan workers' skills "easily transfer to wind energy manufacturing, providing thousands of new jobs and spurring billions in investment.” It's estimated that wind power initiatives currently support more than 3,000 jobs in Michigan, with growth coming as more state manufacturers enter the market to support projects nationwide.

And just how big is that nationwide potential? Far from a pipedream of tree-huggers, the AWEA annual report shows wind power is a serious, and growing, business:

•All 50 states have jobs in the wind industry.
•Approximately 85,000 people are employed in the wind industry today and hold jobs in areas as varied as turbine component manufacturing, construction and installation of wind turbines, wind turbine operations and maintenance, legal and marketing services, transportation and logistical services, and more.
•To ensure a skilled workforce across the wind energy industry, 205 educational programs now offer a certificate, degree, or coursework related to wind energy. Of these 205 programs, the largest segments are university and college programs (45%) and community colleges or technical school programs (43%).
•Despite the economic downturn, the demand for small wind systems for residential and small business use (rated capacity of 100 kW or less) grew 15% in 2009, adding 20 MW of generating capacity to the nation. Seven small wind turbine manufacturing facilities were opened, announced or expanded in 2009.

"Jobs, business opportunities, clean air, energy security—wind power is delivering today on all those fronts for Americans," said AWEA CEO Denise Bode. "Our annual report documents an industry hard at work and on the verge of explosive growth if the right policies—including a national Renewable Electricity Standard (RES) -- are put in place. A national RES will provide the long-term certainty that businesses need to invest tens of billions of dollars in new installations and manufacturing facilities which would create hundreds of thousands of American jobs."

Grants will help transition disabled youth

2010-04-14T06:44:00.000-07:00

Three Michigan chapters of The Arc of the United States are among 45 localities sharing a $3 million grant supporting a new initiative to help youth with intellectual and developmental disabilities.

The sub-grants, to The Arc Downriver (Wyandotte), The Arc of Kent County and The Arc of Northwest Wayne County, are being awarded as part of the Walmart Foundation School-to-Community Transition Project. The project aims to increase transition outcomes and to build inclusion and involvement of youth with intellectual and developmental disabilities in independent living, employment, post-secondary education or vocational training, and community, social and civic affairs.

The sub-grants "represent dynamic, new and innovative projects of chapters of The Arc – they will set a high standard in best practices for youth to adult transition initiatives for years to come,” said Peter V. Berns, Chief Executive Officer of The Arc.

Such initiatives help Michigan benefit and grow by developing all of its natural resources as they even as they help people lead richer and more fulfilling lives.

“The Walmart Foundation is committed to improving the lives of people with disabilities and ensuring they have opportunities to live better,” said Margaret McKenna, president of the Walmart Foundation. “Our recent grant to The Arc reinforces our commitment by supporting programs of The Arc across America.”

Report: tax credit boosts economy

2010-04-12T09:56:00.000-07:00

Michigan's MEGA tax credit program has yielded considerable job creation for the state, at a reasonable cost per job created, say Upjohn Institute researchers Tim Bartik and George Erickcek in a study released today.

They estimate that by 2007 MEGA had increased Michigan's employment by at least 18,000 jobs, compared to what most likely would have happened had MEGA never existed and the funds instead been used for greater government spending.

Bartik and Erickcek also find that this job creation has come at a relatively low net fiscal cost to the state. The report finds that over the period of 1996 to 2007, MEGA's net cost is no more than $3,500 per job created. According to Bartik, "The net cost of MEGA's job creation is modest compared to the likely economic and social benefits of higher employment rates for Michigan residents."

The report shows that by boosting Michigan's economy, MEGA has increased tax revenues faster than it has increased public service costs. "These fiscal benefits for the state offset about two-thirds of the financial costs of the MEGA credits," said Erickcek.

Michigan's MEGA tax credit program, created in 1995, awards discretionary tax credits to businesses, to encourage them to add or retain jobs in Michigan. The new study estimates that at least 8 percent of the jobs subsidized by MEGA were induced by the program.

"Even though MEGA induces a modest percentage of all the jobs it subsidizes, the program has high economic benefits because of its high multiplier effects," says Erickcek. The report finds that by 2007 MEGA's multiplier effect stood at 3.88—that is, for each job induced by MEGA, an additional 2.88 jobs are created elsewhere in the Michigan economy.

The report's baseline estimates compare the economic impact of MEGA with the alternative of devoting the resources used for MEGA credits to increased government spending. This comparison yields the 18,000-plus jobs figure mentioned above.

The report also analyzes the impact of MEGA versus using the same resources for cuts in Michigan's main state business tax. In that comparison, the report finds that by 2007 MEGA had created 16,700 more jobs than would have been created by using the same resources to cut the Michigan business tax rate. According to Bartik, "MEGA is more targeted at business investment decisions with high multiplier effects."

The report concludes that there would be gains to making the MEGA program more selective. MEGA's benefits would increase by choosing more projects with high multiplier effects, or projects where the MEGA credit would be more likely to influence the location decision. The report's findings suggest that although MEGA already passes a benefit-cost test, reforms could make it even more cost-effective.

"The Employment and Fiscal Effects of Michigan's MEGA Tax Credit Program" is available at http://www.upjohninstitute.org/publications/wp/10-164.pdf.

Reminder on job-search tax deductions

2010-04-12T09:18:00.000-07:00

Amid the scramble to meet the April 15 tax deadline, unemployed Michiganders should be reminded not to overlook deductions for job hunting expenses.

If these expenses, along with other miscellaneous expenses, including unreimbursed employee expenses and professional association membership dues, add up to 2% of the taxpayers’s adjusted gross income, the amount above the 2% threshold becomes eligible for deductions. Many people overlook job search expenses, assuming that they won’t add up to much, according to officials with the outplacement firm Challenger, Gray & Christmas Inc. However, for the long-term unemployed with a significantly reduced adjusted gross income, it is much easier to reach the 2% limit. Add expenses related to professional resume services, job-search related travel, or employment agencies fees and one’s expenses could soar well beyond the 2% level.

More than 3.8 million people joined the ranks of the U.S. unemployed in 2009. About 3.6 million were added to the roles of long-term unemployed (jobless for 27 weeks or longer).

Three firms ranked Best Places to Work

2010-04-07T10:46:00.000-07:00

Three Michigan-based companies made Fortune Magazine’s 2010 “100 Best Companies to Work For” list. The companies include: Quicken Loans, Livonia (#29), Plante & Moran, Southfield (#66), and Herman Miller, Zeeland (#97).

The results were lauded by Dan Mulhern, founder of the Michigan’s Next Great Companies initiative, which promotes the connection between business results and strong corporate culture.

"The Michigan companies featured on Fortune's '100 Best Companies to Work For' list recognize that being a great place to work creates a strategic advantage. The most successful companies understand and unleash the power of their employees,” said Mulhern. "These companies demonstrate that particularly in tough times it’s essential to create a culture that brings out employees’ best.”

The Great Places to Work Institute compiles results from employee responses to its proprietary “trust and culture” survey, as well as information from applicant companies. To be eligible for Fortune’s “100 Best Companies to Work For” list, companies must have at least 1,000 employees. (For more information, visit http://www.greatplacetowork.com/.)

“We work with these companies regularly, see them up close, and know their success is founded on corporate cultures that emphasize shared values, innovation and trust,” said Greg Main, president and CEO of the Michigan Economic Development Corporation.

In addition to companies headquartered in Michigan, others on the 2010 list with significant operations in the state were: Google, Ann Arbor (#04), and SC Johnson, Bay City (#83).

The complete list of 2010 “100 Best Companies to Work For” is available at www.fortune.com/bestcompanies and includes profiles of each company.

Contest offers shot at free semester tuition

2010-04-07T08:19:00.000-07:00

The Michigan Education Trust (MET) prepaid tuition program is calling on all adults in the state to enter to win a tuition-free semester at any Michigan public college or university. Michigan residents 18 years of age and older can enter to win a one-semester, Full Benefits MET contract. MET contracts are also portable to Michigan private and out-of-state institutions.

Entries are being accepted now through Aug. 31, 2010, at MET's Web site SETwithMET.com. MET will announce the winner of the random drawing during College Savings Month in September.

"This contest is a great way to remind families about the importance of planning now for future college expenses," said State Treasurer Robert J. Kleine. "We encourage people entering to win to take a moment to learn more about MET and the many benefits of pre-paying for college tuition. With MET, you get tomorrow's tuition at today's prices and take the guesswork out of saving for your child's future education."

No purchase is necessary to win the MET semester giveaway. The winner will have 60 days from notification to name a beneficiary. The beneficiary does not need to be related to the winner, but must be a Michigan resident and must not have four years of MET already purchased.

Since its debut in 1988 as the nation's first prepaid tuition program, MET has sold more than 91,000 contracts. Not only are MET contracts portable to Michigan private and out-of-state colleges and universities, they may be transferred to other eligible family members. Since 1988, more than 90 percent of high school graduates with MET contracts have gone on to attend a college or university.

Registrants can visit SETwithMET.com or call 1-800-MET-4-KID (800-638-4543) for all contest rules and more information about MET contracts.

Poor business grades show need for extra credit

2010-04-05T08:56:00.000-07:00

Michigan's grades on a benchmarking study of economic competitiveness show strong need for back-to-basics tutoring. However, report analysts suggest that leaves plenty of room for improvement with a return to good work habits.

The study, released by Business Leaders for Michigan (http://www.businessleadersformichigan.com/), assessed more than 100 factors important to job creation. It was conducted by the Detroit office of McKinsey & Company, a global management consulting firm. Among the findings:

• Michigan’s economic performance has eroded significantly, with both GDP growth over the past 18 months and unemployment last among the 50 states.

• The state’s business costs are uncompetitive, with the cost of doing business 4% above the
national average - driven by high corporate taxes and total labor costs.

• Michigan is delivering average to above average results from innovation and
entrepreneurism, but additional work is needed to become a leading state.

• The state’s quality of life has strong fundamentals, but has a very poor perception.
Hans-Werner Kaas, a managing partner at McKinsey & Company, said Michigan has been an growth underachiever in 90% of economic sectors since 1990. Still, he observes, "there are genuine strengths that Michigan could better leverage to turn this situation around, like our engineering talent base, universities, manufacturing skills, and quality of life. We need to find ways to build on these advantages, and we need a well-diversified strategy for scaling economic development into adjacent industries with attractive growth potential”

Adds Mark Murray, president of Meijer Inc. and Co-Chair of the Business Leaders
Benchmarking Committee: “The 4 percentage point penalty businesses pay in Michigan can be the entire profit margin for many companies – whether they stay in business or not. We have to do a better job getting competitive on costs to leverage our strengths in a more powerful way.”

The benchmarking data informed many of the recommendations in the Business Leaders Turnaround Plan, which can also be viewed at http://www.michiganturnaroundplan.com/.

Apartments cheaper than shelters in Kazoo

2010-04-01T09:06:00.000-07:00

A new federal study brings into question the best use of resources for bringing newly homeless persons back into the fight for Michigan's economic growth.

The report from the Department of Housing and Urban Development found that many cities and states pay more to provide the homeless with short-term shelter and services that what it would cost to rent permanent housing. A total of 9,000 families and individuals were studied in six cities, including Kalamazoo. While it was not the widest discrepancy uncovered, officials found the average monthly cost for emergency shelter in Kalamazoo was $1,614, compared with $813 for transitional housing and $881 for permanent housing.

The highest emergency shelter costs were noted in Washington, DC, at $3,530 and Upstate, S.C., at $2,269. The cites to be studied were selected based on their track record for providing services to the homeless. Apples-to-apples comparisons are difficult, however, because of the wide range of services that might be provided in the shelter costs. Those services sometimes include drug and alcohol treatment, mental health care, family counseling and help obtaining government benefits. Other cities reviewed were Des Moines, Iowa, Jacksonville, FL, and Houston, Texas.

"These studies expand our knowledge of the true cost of homelessness and raise other questions far beyond dollars and cents," said HUD Secretary Shaun Donovan. "Now we need to have a serious discussion over what strategies are not only the most cost effective, but how we can help individuals and families fall into homelessness in the first place."

Targeting an appropriate level of service delivery is considered essential for keeping the first-time homeless off a slippery downward slope into shame, despair and chronic need for assistance. It's also vital for retaining the talent and productivity of workers who have fallen into homelessness amid the economic recession -- and those who remain but a paycheck or two away from losing their homes.

Toward those ends the 2009 federal stimulus package provided $1.5 billion in funding to help prevent individuals and families from becoming homeless, and to help those experiencing homelessness to be quickly re-housed and stabilized. From the fall of 2008 to 2009, the interagency Kalamazoo Affordable Housing Partnership obtained nearly $400,000 in support of those goals as one of 23 HUD pilot projects.

Employees take new attitudes toward work

2010-03-30T12:03:00.000-07:00

The Great Recession has fundamentally altered the way workers view the employment relationship and left them yearning for stability over mobility, according to a new study by consulting firm Towers Watson.

Specifically, U.S. employees have dramatically lowered their career and retirement expectations for the foreseeable future. On-the-job advancement now takes a back seat to a growing desire for workplace security and stability -- at the very point in time when traditional employment safety nets are eroding.

"For many employers, the recession has put the final nail in the coffin of the traditional 'deal' that once existed between employees and employers," says Max Caldwell, a leader of the Towers Watson Talent & Rewards division. "Not only have people seen many coworkers, friends and family members laid off, but they know they are increasingly on their own for everything from health care, to managing their career, to planning for a secure retirement. This represents a profound shift for employers and employees alike."

The results also confirm how far the nation has moved from the "free agent" concept hyped as a new approach to work just a decade ago. In the Towers survey, eight out of 10 respondents said they want to settle into a job, with roughly half saying they want to work for a single company their entire career and the rest wanting to work for no more than two to three companies. This move toward workplace "nesting" appears influenced by a perceived dearth of job opportunities, coupled with employees' lower appetite for the risks inherent in changing jobs.

MI Perspective: While the cause and circumstances are painful, the shift is not necessarily a bad labor market trend for Michigan. The job-hopping, "free agent" mentality has been a particular characteristic of Gen X and Gen Y workers ascending in the workplace. If these employees are now more inclined to choose from a growing number of exciting opportunities in cutting-edge business sectors -- and stay put for awhile -- it could lend the state a measure of workforce stability needed for those businesses to take root and thrive.

Employment forecast: it's all relative

2010-03-24T10:57:00.000-07:00

West Michigan job growth for the remainder of 2010 into 2011 isn't likely to send the region's economic hopes soaring, but 2009 proved things can always be worse.

New analysis from economists at the W.E. Upjohn Institute (http://www.upjohninst.org/) projects regional gross domestic product will rise 2.4% in 2010 and then 3.1% in 2011.

"It's a forecast that, like most, generates only modest employment growth during 2010," according to the March issue of the Institute's Business Outlook. Specifically, employment for the region's six metropolitan areas (Battle Creek, Grand Rapids, Holland-Grand Haven, Kalamazoo, Muskegon and Niles-Benton Harbor) is predicted to be down 1.5% from 2009, then up slightly, .2%, in 2011.

Employment in the region's struggling goods-producing sector is expected to drop 3.4%. Auto suppliers continue to cut workers in line with lower production volumes, and the region's office furniture industry is also expected to have a slow year. New manufacturing orders are likely to be filled by increases in productivity and overtime hours, and the use of temp workers.

Economists expect employment in the region's service providing sector to drop 1.2% in 2010.

"Growth is expected in health care fields and professional and business services, which will help buffer expected losses in both the trade/leisure and hospitality sectors," according to the Outlook.

One answer is blowin' in the wind

2010-03-22T08:19:00.000-07:00

A multi-billion dollar development project could help harvest the natural wind resource on Lake Michigan to produce clean renewable energy -- and thousands of new jobs.

That's the vision from Scandia Wind Offshore (http://www.scandiawind.com/), a clean-energy development company that outlined an expanded wind farm proposal for West Michigan in a series of meetings last week.

With an investment estimated at $4 billion, the projects could add 3,000 permanent industrial jobs to the region. While construction could be five or more years away -- and wind turbine operations might not begin for nearly 10 years -- there could be strong economic advantages to being first to develop a business hub that facilitates growth. That is, a business cluster might build out a supply chain of parts and services to support find farm developments in a way not unlike the businesses that sprouted to support the auto industry in years past.

"We believe in the 'first mover' advantage, but it is not going to happen by itself," according to Scandia project manager Harald Dirdal as quoted in meeting coverage by the Muskegon Chronicle. "There is a window of opportunity for us to attract a wind turbine manufacturer to build a plant here. The race is on."

The new vision would build on designs for the Aegir 500-megawatt wind farm four miles offshore from Pentwater. Aegir II would be a similarly sized farm six miles from the shore of Grand Haven, and Aegir III would put a smaller farm at the Muskegon County Wastewater Management System, accoring to the Chronicle. In a sum of 50 square miles there would be 50 to 100 wind turbines ranging from 300 to 450 feet in height -- a consideration community planners will weigh heavily when examining potential effects on tourism and overall aesthetics.

Experts say the West Michigan coast is exceptionally well positioned to harvest strong prevailing South/Southwest winds normally registered only in states such as North Dakota and Texas. The region's proximity to major energy consumption centers in Chicago and Detroit also make the transfer of energy efficient an economical. As such the area could become a major industrial hub for harnessed wind energy in decades ahead.

Book shelf: Easing the shock of job loss

2010-03-21T10:11:00.000-07:00

A new book on the self-help scene offers some practical advice on how workers can cope with job loss, and steps they can take toward re-employment.

"Blindsided: Surviving Career Meltdown," may be a resource of note to Michigan workers in transition, their friends, families and organizations that seek to support them. It offers methods designed to minimize destructive and non-productive behavior of unemployment and provides constructive exercises for those who have lost their jobs.

Author Roger E. Hawkins, Ph.D., an industrial organizational psychologist with more than 30 years of experience in the field, compares the aftermath of termination to the physical pain of those needing emergency medical treatment. He says employees who confront sudden job loss must face consequences more damaging than just the loss of income. His workbook, he explains, "provides processes to help people deal with the psychological trauma of sudden unemployment, while guiding them through the steps of an intense career search in today's terrible economy."

The book's six parts include sections on self-assessment, resume preparation, identifying career objectives, how and where to search for jobs, interviewing and record keeping. It is available from Amazon.com as well as retail locations.

Muskegon health plan draws interest

2010-03-16T15:45:00.000-07:00

A Muskegon County effort to increase health care coverage for the uninsured was highlighted in a March 16 article in USA Today.

The article focused on community-based efforts to boost coverage at a time most attention is focused on Washington, where an historic vote on trillion-dollar federal legislation is expected this weekend. The USA Today article cited Muskegon as an example of a "three-share" approach in which a worker's monthly insurance premium is split equally between the employer, the employee and the community.

Muskegon County's version of the three-share, called Access Health, started in 1999 and now has 1,100 participants in the community of 175,000 people. It grew out of a grant from the W.K. Kellogg Foundation and receives it community contributions from Mercy Health Partners. Despite early successes, however, enrollment has reportedly stayed flat during the past two years as both the number of uninsured, and unemployed, have spiked.

The stakes are becoming increasingly high: Despite a highly rated health care delivery system, Muskegon ranked 80th out of 82 Michigan counties in unhealthy behaviors such as tobacco and alcohol use as well as poor diet and lack of exercise. That analysis was recently released by the Robert Wood Johnson Foundation and the University of Wisconsin's Population Health Institute. Moreover, the Muskegon County Health Project estimates that 23.5% of county residents aged 18 to 64 lack health insurance -- about 25,000 people.

Undaunted, county officials appear intent on continuing their efforts to grow the program.

"This is no silver bullet, but the impact we have on people's lives cannot be overstated," Jeff Fortenbacher, executive director of Access Health, is quoted as telling USA Today.

Granholm searches for Google

2010-03-15T08:17:00.000-07:00

Governor Granholm last week met with Google executives in California to promote Michigan as a location for testing Google fiber, the company's new ultra-high speed fiber optic broadband network. She also met with venture capitalists and high-tech company representatives in Menlo Park, Calif., to persuade them to bring investment and business to Michigan.

Google has asked communities across the nation to submit proposals by March 26 for consideration as a Google fiber network trial location. It is expected to deliver Internet speeds more than 100 times faster than typical current access. The fiber-to-home connections of more than one gigabit per second will be offered at a competitive price to a community of at least 50,000 and up to 500,000 people.

"Google fiber is a perfect fit here, as no state can match the exploding new technology investment in Michigan in recent years," Granholm said. "Google fiber would spark economic acitivity and job creation as Michigan entrepreneurs and businesses stand to gain enormous economic advantages through this extraordinary innovation."

Granholm is encouraging communities to submit applications for the trial network, and several are already at work. They include Ann Arbor, Grand Rapids and Lansing/East Lansing. Those applications are supported by citizens through social media sites including Facebook and Twitter.

In July 2006 Google announced it would open a sales and operations center for Goodle's AdWords online advertising program. Hiring is ongoing at the Ann Arbor location projected to employ 250 persons. At the time, Google co-founder and Michigan native Larry Page commented, "We hope to establish as wonderful a home in Michigan for Google as I enjoyed while growing up.

More information on the Google fiber network is available at http://www.google.com/appserve/fiberrfi/. Citizens and municipal officials can visit the site to express support for Google fiber in their communities.

Recovery effort enlists student ideas

2010-03-15T07:42:00.000-07:00

Inspiration for the next generation of mainstay employers may well come from the next generation of Michigan workers, or so hope organizers of the "Motivate Michigan" online competition.

The objective is 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.

The ideas will be judged on creativity, originality, practicality and the potential economic impact on the state of Michigan. General public voting on the ideas will take place April 12-30. The winning idea will be developed into a project plan and presented to an appropriate owner for funding and support. Prizes are expected to be a $40,000 scholarship for first place, $25,000 for second and $15,000 for third. Sponsors of the competition include Comerica Bank, Michigan Economic Development Corp. and Meijer.

MI perspective: Whether or not the competition yields brilliant solutions for Michigan's future business base, the process involving students in the collective thought process and tapping their creativity can only help enhance their self-image and buy-in as rising stakeholders in the state economy.

The Big Picture

2010-03-14T10:21:00.000-07:00

Michigan ranks third for corporate expansion

2010-03-11T10:09:00.000-08:00

Site Selection magazine this month ranked Michigan the #3 state in the nation for new corporate facilities and expansions in 2009.

The global business publication verified 371 projects that met capital investment, job-creation or size standards, up from 296 is 2008, in its annual Governor's Cup ranking (http://www.siteselection.com/). It was the second consecutive year that Michigan has ranked in the top three positions. This year, Michigan was 10 projects behind first place Ohio -- which won for the fourth consecutive time -- and three in back of second-place Texas. Pennsylvania finished fourth, with 333 projects. Great Lake states were also well represented in states rounding out the top 10: Tennessee, New York, North Carolina, Illinois, Virginia and Indiana.

Major new corporate projects for Michigan in 2009 included: advanced energy storage and solar firms such as Xtreme Power and Clairvoyant Energy on the site of the former Ford Wixom assembly plant; advanced-battery development and manufacturing firms A123 Systems (Ann Arbor), Johnson Controls-Saft Advanced Power Solutions (Holland), Dow Kokam (Midland); and major expansions by General Motors and Ford for electric and hybrid vehicle production.

Site Selection also recognized Detroit-Warren-Livonia as the nation's No. 4 metro area with a population of one million or more for new and expanded corporate facilities. Among metro areas with population between 200,000 and one million, Grand Rapids-Wyoming tied for third; Holland-Grand Haven was fifth, and; Ann Arbor and Lansing-East Lansing tied for sixth.

Comments Governor Granholm: "We just witnessed a thrilling global competition where many times the difference between winning a gold or bronze medal was a mere fraction of a second. The same holds true for Michigan in this important 50-state contest. We take pride in winning the bronze, but won't rest until we win the gold. We will continue to push or go anywhere, do anything, to accomplish that goal."

The strong showing seen in a publication read by corporate real estate and site selection professionals puts Michigan in a "strong and enviable position in the face of economic distress," says Michigan Economic Development Corporation President and CEO Greg Main. "These rankings reinforce that Michigan is a top-tier location for growing companies because of our aggressive initiatives, strong business climate and hard-working and talented workforce."

Unemployment looking up from bottom

2010-03-10T07:22:00.000-08:00

New numbers released this morning by the U.S. Labor Department show Michigan still has the highest unemployment rate among states, but also show signs of an upward bounce.

The Bureau of Labor Statistics data put state unemployment at 14.3% for January 2010, up from 11% a year earlier. However, the rate was down from the 14.5% level posted in December 2009, and Michigan was one of 31 states that reported employment gains on a month-to-month basis. From December to January, Michigan added approximately 6,000 persons to nonfarm payrolls, to a total of more than 3.85 million. Manufacturing, construction and trade transportation and utilities were all among the sectors contributing to the monthly increase.

States recording the highest month-to-month increases were California (+32,000), followed by Illinois (+26,000) and New York (+25,000). States recording the highest losses were Missouri and Ohio (-12,000 each), followed by Kentucky (-11,800), New Jersey (-9,100) and Florida (6,100).

Over the year, jobless rates increased in all 50 states. The national unemployment rate fell from 10.0% in December to 9.7% in January, but was up from 7.7% a year earlier.

Services aim to plug brain drain

2010-03-08T09:23:00.000-08:00

Community-based matchmaking services are working to help Michigan retain the best and brightest students emerging from its colleges and universities.

The "brain drain" affecting Michigan, as well as many other states, was quantified in a survey of public-university graduates conducted by S.E. Michigan WIRED (Workforce Innovations in Regional Economic Development) and the Michigan Municipal League. It found that 46% of 2007 graduates had left the state by Spring 2008. It also showed that 56% cited the inability to find a job as a significant reason for leaving. Though more recent data is lacking, the drain has almost certainly worsened along with state economic conditions in the past two years.

Still, the research also underscores a substantial opportunity to retain students through services that qualify and help connect them with potential employers.

One such organization moving into the void is Intern Michigan (http://internmichigan.com/), supported by groups such as the Detroit Regional Chamber, Traverse City Area Chamber and the Presidents Council, State Universities of Michigan. Focusing on entry-level opportunities, Intern Michigan creates an exchange on which employers can post internship opportunities that can be shopped by college students and soon-to-be graduates. It seeks to match a student's hard skills with other intangibles that align with an employer's values, guidelines and branding.

Other services attempt to delve even deeper into the softer side of a potential intern's profile. For example, the recently launched Hearts and Smarts (http://heartsandsmarts.com/) queries job seekers on personality traits an employer might find important. Approximately 50 questions in the profile probe areas such as, What makes you most comfortable in a work environment?

Together, such organizations and services improve Michigan's prospects for retaining the eager young minds it helps educate. Once they have foot in the door, studies show qualified interns have a solid chance of converting to permanent employment: According to the National Assoication of Colleges and Employers, the share of interns converted to full-time employment rose from 35.6% in 2001 to 50.5% in 2008.

Benefit excise tax could pose problems

2010-03-05T12:06:00.000-08:00

Ever since it became known that Chrysler was spending more on health care benefits than the steel in its cars, efforts to reform the system have periodically crystallized in Washington.

Few have come closer to being enacted than the plan currently backed by President Obama, a modified version of changed approved by the Senate last December. At this writing, it appeared quite possible the Democratic majority in Congress might win approval for the plan through the side-door process of legislative reconciliation sometime in April.

While much of the debate this year has centered on lightening-rod issues such as funding for abortion and the degree of government control over an industry the size of health care, other provisions of the bill carry even more direct implications for Michigan workers and the employers who provide benefits.

Among the most potentially troubling is a 40% excise tax on expenditures for employer-sponsored health benefits above a set threshold, starting in 2018. The limits are set at $10,200 for individual coverage and $27,500 for family coverage. These thresholds easily exceed the national average premium costs of $5,000 for singles and $13,200 for a family. However, total plan expenditures would be defined to include employer contributions for vision, dental and other ancillary benefits, as well as funding for flexible spending accounts and health savings accounts.

If an excise tax is approved, it could force employers to choose between passing the cost along to employees, or cutting benefits. Estimates of how many employer-sponsored plans would be subject to the tax vary from 13% to 18% currently. However, at current rates of inflation it is estimated that one-third to one-half of all plans would face an excise tax unless rates are further adjusted by 2018.

Ironically, the excise tax was first presented as a means of controlling expenditures on so-called "Cadillac" health plans for the rich. Now, however, it appears it could hit the people who built the Cadillacs -- autoworkers enjoying collectively bargained benefit plans -- as well as many middle income workers in Michigan and across the nation.

Employers staunch job-loss bleeding

2010-03-04T10:20:00.000-08:00

Mounting data suggest job losses in Michigan have hit a substantial slowdown in the past year.

Among the new numbers, analysts at global outplacement consultancy Challenger, Gray & Christmas say Michigan cut 2,024 jobs last month. That still places Michigan among the top five job-loss states, but shows a dramatic improvement from the 50.212 jobs Michigan shed in February 2009.

TOP 5 JOB-CUT STATES

February 2009/February 2010
New Jersey 17,613/502
California 8,779/12,943
Kentucky 2,500/1,800
Illinois 2,142/3,665
Michigan 2,042/50,212

Part of the improvement can be pegged to the auto industry. By this time last year the industry had already announced 70,058 job cuts nationwide. As of last month, these firms planned just 7,334 cuts -- a 90% drop. While Michigan's long-term growth depends on industry diversification, the interim step of staunching the bleeding in the automotive sectors could provide some near-term relief.

Analysts say the numbers indicate downsizing activity peaked nearly a year ago, and that economic recovery is well underway.

"It may be a couple of more months before hiring begins to surge, but it is clear that employers have shifted away from downsizing and are poised to start adding workers," says John Challenger, CEO of the Chicago-based Challenger, Gray & Christmas.

Businesses unite for health education

2010-03-03T11:44:00.000-08:00

Whirlpool Corporation and other organizations in the Benton Harbor/St. Joseph area are attempting to improve worker health and productivity through an innovative "Communities of Health" pilot program.

The group of employers, health stakeholders, educators, political and faith leaders was brought together by Whirlpool along with the Consortium for Community Development and health insurer Cigna. They hope to identify and break down community and social barriers that affect the health of local residents. By broadening the conversation to go beyond the traditional scope of health care payment and access, they hope to improve the health and overall wellness of workers and the population at large.

The premise is that employees live and breathe in a community beyond the work space; therefore, they are affected by that environment, which carries over into health and productivity costs.

Since the pilot began two years ago, Communities of Health has successfully educated citizens about myriad health issues and begun setting measurable goals for residents of the Benton Harbor area.

"Our strategy is to move individuals to take personal responsibility for their health, which means trying to help them understand their present health conditions while moving them toward preventive care, building a personal relationship with a physician in the community and understanding how their surroundings affect their health," explains Susan Pavlopoulos, manager, global medical management at Whirlpool.

Pavlopoulos says that Whirlpool would not be able to meet the same goals if they relied solely on the company's health benefit plan design. By utilizing resources in the larger community, and by partnering with other business, faith and health care leaders in the area, the firm believes it will be able to have a much greater impact on the Michigan community.

"From an employer standpoint there hasn't been much of a connection between employer plans and the home, the community itself," she observes.

To change the equation, Communities of Health recently hosted a Town Hall two-day event that brought together 500 participants to learn how the community affects their health. The following day, a group of health stakeholders and faith leaders drafted a plan of action which included steps such as having faith leaders set and measure a body mass index goal for their congregants.

To learn more about such projects being started in Detroit and other parts of the nation, visit http://www.communitiesofhealth.org/.

New filings for unemployment slow

2010-02-26T13:21:00.000-08:00

The number of people filing initial claims for state unemployment benefits dropped by 1,621 for the week ended Feb. 20, the U.S. Labor Department reported Thursday. The total of 15,111 filings continued a significant slowdown in new claims since the beginning of 2010, although Michigan still has the sixth highest rate of unemployed persons receiving insurance benefits nationwide, at 5.9%. The total number of claimants is nearly 3.9 million.

For the United States as a whole, initial claims of unemployment took a surprise jump of approximately 22,000, to 496,000. The U.S. insured unemployment rate stands at 3.5%. The four-week moving average of jobless claims, which smooths out weekly volatility, increased 6,000 to 473,750.

New numbers on state and national unemployment rates will be released by the Labor Department on March 5. Analysts will be closely watching the data as Congress advances work on various job creation measures and economic stimulus funds currently being considered.

Food sector adds jobs to menu

2010-02-25T11:55:00.000-08:00

Food companies are increasingly serving up business investment and job growth on the Western side the state.

This past week, for example, officials at Request Foods indicated its expansion plans could bring more than 250 new jobs to the Holland Township area over the next five years. The company, which makes nearly 800 different custom frozen entrees, side dishes appetizers, sauces, desserts and soups, currently has a 370,000 square-foot Township facility that employs 524 people.

Subject to government approval, Request Foods intends to invest $35.5 million in a new facility spanning more than 200,000 square feet. The company would pay no taxes on the new facility for 12 years but would assume a progressive tax bill up to 100% of its assessment in year 15, according to a report by the Holland Sentinel. Some 150 jobs would be created in the first three years, averaging $10.31 per hour plus benefits for entry level positions.

"To me, this puts them on that 20-year path to growth," Randy Thelen, president of the economic development group Lakeshore Advantage, told the Sentinel. "In terms of economic recovery, it has to be one step at a time. Today, this project represents a major step in the right direction."

According to Thelen, automotive, office furniture and food production are the three major components of the area's manufacturing sector. The local food industry has also seen expansion from firms including Boar's Head, Sara Lee, Hudsonville Ice Cream and Quincy Street Meats during the past two years.

Home prices may be stabilizing

2010-02-25T11:34:00.000-08:00

Home prices in the Detroit metropolitan area increased .2% on a seasonally adjusted basis in December 2009, according data released Tuesday from the Standard & Poor's Case-Shiller Home Price Index, a closely watched measure of housing market strength in 20 cities and the United States as a whole.

Detroit was still only one of three cities, along with Las Vegas and Tampa, that showed double-digit annual rates of decline at the end of 2009. Detroit's one-year change was -10.3%. Still, the December increase, combined with a .3% gain for the U.S. index, gives rise to hopes that the housing market is stabilizing.

"As measured by prices, the housing market is definitely in better shape than it was this time last year, as the pace of deterioration has stabilized for now," says David M. Blitzer, chairman of Standard & Poor's Index Committee.

Across the U.S., prices remained 3.1% lower than they were in December 2008. But the December 2009 result was the seventh consecutive month in which housing prices increased. While the numbers could inspire greater confidence in the economic recovery, they might also reflect a trend toward equilibrium in supply and demand. Rock bottom-prices in areas hard hit by foreclosures, such as Detroit, tend to energize sales. As buyers snap up the bargains, they help shrink the excess supply housing, which contributes to price stabilization.

Consumer confidence still ebbing

2010-02-23T09:34:00.000-08:00

Michigan consumers are in a definite winter funk, data released today by The Conference Board http://www.conferenceboard.org/ indicates.

The New York-based business research group's U.S. Consumer Confidence Index dropped to its lowest point in 10 months, falling to 46.0 in February from 56.5 in January. Readings in the 90s reflect belief that the economy is on solid footing, while anything above 100 indicates consumers believe the economy is growing. The index is based on surveys of 5,000 households nationwide.

Some of the increased gloom came from the Middle and South Atlantic regions, which were recently slammed by blizzard-induced business slowdowns and other hardships. Softness also showed up in the Mountain and Pacific regions.

Still, ground-zero for pessimism remains the East North Central region that includes Michigan and four other Great Lake states. This region's consumer confidence reading now stands at 41.0. As components of the overall Index, their confidence in the Present Situation dropped from 17.9 to 8.7, and confidence in Expectations for the future declined from 76.0 to 62.5.

The Board's Index is a closely watched indicator of consumer psychology -- an essential aspect of economic recovery because consumer spending accounts for an estimated 70% of all U.S. economic activity.

Nationwide, the share of consumers claiming conditions are "good" declined from 8.5% to 6.2%, while those calling conditions "bad" increased from 44.7% to 46.3%.

"Consumers short-term outlook also took a turn for the worse, with fewer consumers anticipating an improvement in business conditions and the job market over the next six months," says Lynn Franco, Director of the Conference Board Consumer Research Center. "Consumers also remain extremely pessimistic about their income prospects. The combination of earnings and job anxieties is likely to continue to curb spending."

Across the U.S., the share of consumers expecting fewer jobs over the next six months increased from 18.9% to 24.6%. Those anticipating more jobs will become available in the months ahead declined to 13.4% from 15.8%. Those saying jobs are "hard to get" rose from 46.5% to 47.7%, while those who think jobs are "plentiful" fell from 4.4% to 3.6%.

MI perspective: Economists are watching these metrics carefully because, traditionally, job growth comes after a recovery in investor confidence, improved market performance and increased consumer spending. In these regards, economic recovery is in part a self-fulfilling prophecy. Until investor and consumer confidence establish firmer footing, data indicating economic recovery are likely to remain choppy.

Biz leaders oppose state pay hike

2010-02-19T08:28:00.000-08:00

C-suite executives from many of the state's largest employers today called on Michigan lawmakers to reject a 3% pay raise for state workers set for Oct. 1.

The Civil Service Commission has already rescinded the 3% raise scheduled for non-exclusively represented state employees. Now, Business Leaders for Michigan (http://www.businessleadersformichigan.com/) wants the legislature to do the same for all other state employees, exercising its option to reject the increase within 60 days of the Governor's budget presentation. That option expires April 1.

Governor Granholm defends her record on state-employee spending and her requests for Fiscal Year 2011, noting that Michigan has cut nearly 11,000 jobs since 2001. She also says state employees have contributed more than $650 million in savings through unpaid days off and increased cost sharing of health insurance premiums.

However, Business Leaders representatives suggest the government needs to swallow the same medicine as private-sector employers.

"At this time when our state's revenues continue on a downward spiral and when government programs and services are being cut or eliminated in order to help balance the state's budget, it is inappropriate for government workers to receive an increase in pay," says group president and CEO Doug Rothwell.

The 3% adjustment was agreed upon during prior labor negotiations, but Business Leaders says the current and projected financial condition of the state should now be taking into account. The group's most recent quarterly survey of 70 of top Michigan executives found that 89% believe the state economy will remain the same or deteriorate over the next six months. However, 42% forecast increased hiring in Michigan during the same time frame.

The group is seeking attention for its "Michigan Turnaound Plan" it says will help make Michigan a Top Ten state for job and economic growth. The pillars of the plan are:

Changing the way the state manages it finances.

Right-sizing and enacting structural budget reforms.

Getting Michigan competitive to attract and retain jobs.

Making investments to create a great job environment.

Accelerating job growth through innovation and entrepreneurship.

Business Leaders for Michigan, formed last year, is an outgrowth of Southeast Michigan CEO group Detroit Renaissance. Members represent companies and universities that provide some 300,000 jobs in Michigan and generate more than $1 trillion in annual revenue.