10 growing firms pick Michigan

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

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

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

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

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

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

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.