economy

Economy
2:44 pm
Tue January 25, 2011

Grand Rapids Mayor responds to Newsweek's "Dying Cities" post

Grand Rapids Mayor George Heartwell was irked by Newsweek's "Dying Cities" designation.
user stevendepolo Flickr

After Newsweek named Grand Rapids as one of its ten "Dying Cities," Mayor George Heartwell sat down to express his feelings about the magazine's designation.

In a letter to Newsweek editor Tina Brown, Heartwell said "the citizens of Grand Rapids were astounded when you declared our city...to be a 'dying city.'"

From the letter:

Dying city? Surely Newsweek must be joking! Would a major medical School (Michigan State University School of Human Medicine) move its campus to a dying city? Would a dying city have seen $1.4 Billion in downtown construction in the past seven years?...Would a dying city have more LEED certified buildings per capita (2009) than any other American city?

The mayor might have been wise to ask whether rapper 50-cent would consider moving to a dying city as well.

He did invite Newsweek's Tina Brown to visit the city saying, "I'm afraid our timing is off to get you to a Kid Rock concert...that happens tonight. But if you want to see Lady GaGa at our Van Andel Arena there's still time; she's comes this spring."

Economy
2:04 pm
Tue January 25, 2011

Great recession slows Midwest's "brain drain"

The preferred moving truck for young people.
user dvs Flickr

For much of the last decade, cities across our region have watched their recent college graduates flee to cities like Phoenix.

It what might be good news for our region, new census data show the recession has significantly changed where young people are moving.

People, especially people in their early twenties, go where the jobs are.

That’s why Michigan is so concerned about being the only state in the census to lose population

And cities like Cleveland and Detroit have been fretting about "brain drain" to other areas.

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Culture
11:27 pm
Mon January 24, 2011

Grand Rapids officials discuss pros, cons, of week-long biker event

lehcar1477 Creative Commons

Organizers of the proposed “River City Bike Week” expect the five-day event will attract between 50,000 and 60,000 people. But some worry the group is overestimating the economic benefits and underestimating the noise, traffic and potential crime they say is associated with biker clubs.

Kyle Davis is an avid Harley rider from the Grand Rapids suburb of Wyoming. He’s been missing the annual biker week in Sturgis, MI and would be thrilled to have something like that in Grand Rapids.

“It’s going to be noisy I can tell you that but for the most part, a lot of the Harley community around here gives back to the community a lot. I know my brother has muscular dystrophy and they do a big huge fundraiser every year. So they’re really misunderstood in my point of view.”

If the city allows the event, River City Bike Week organizer Tracy Holt says part of the proceeds would benefit the Grand Rapids Student Advancement Foundation that helps give Grand Rapids students the tools they need to succeed. She says they'll have bike builders, vendors, stunts, races, and concerts by ZZ Top, the Steve Miller Band and the Doobie Brothers.

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Auto/Economy
5:13 pm
Mon January 24, 2011

Retailers have item pricing law in their sights

Steve Carmody

Retailers say they are more hopeful than they’ve been in many years that Michigan is close to repealing the law that requires them to put a price sticker on every item they sell. But unions and Democrats say they will put up a fight to preserve what they say is a significant consumer protection.

James Hallan is the president of the Michigan Retailers Association. He says store-owners were pleased to hear in Governor Rick Snyder’s State of the State address that he is on their side. And Hallan says retailers hope the Legislature’s large Republican majorities will go along with scrapping the 35-year-old law.

“We have a new administration that is progressive. We have a legislative body that is progressive, and technology has come a long ways from where it was in 1976. Cell phones were not around in 1976. You look at all the new technology, and it’s time we embrace this and not walk away from it."

But not everyone is on board. Chris Michalakis is with the United Food and Commercial Workers union. He says the item-pricing law remains popular with the public.

“What we’re hoping is our Republican governor and our Republican majorities in the House and the Senate will listen to consumers and members of their community and when they look to change this law, do it in a way that voters are comfortable with and do it in a way that protects consumers and protects jobs.”

Employee unions say the law remains popular with the public for a reason and, if anything, the item pricing law should be more strongly enforced.

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Politics
4:32 pm
Mon January 24, 2011

Lawmakers seek a 2-year budget cycle for Michigan

The Michigan House of Representatives
Lester Graham Michigan Radio

The state could be headed toward a two-year budget cycle.

Governor Rick Snyder and many lawmakers say they need to start thinking farther into the future when putting together a budget.

However, creating a two-year budget cycle would require an amendment to the Michigan Constitution. The Legislature would have to put it on the ballot for voters to approve.

State Senator John Proos says that could and should happen, but it will take time. He says in the meantime lawmakers can create a two-year projection:

"That’s something that every year instead of scrambling to fix a budget hole and not really telling the whole story about what our budget will look like out into the future, this will give us the time instead to say our revenue picture and expenditure picture is going to look like X. Once we’ve made that determination, then we can say are we actually getting value for the tax dollars that we’re spending."

Proos is expected to introduce a measure that would amend the constitution to create a two-year budget cycle as well as a part-time Legislature.

Proos says for now it’s important to complete work on the budget by Governor Snyder’s May 31st deadline.

Population
3:50 pm
Mon January 24, 2011

"America's Dying Cities" - 3 are in Michigan

The old train station in Detroit has become the city's poster child of decay.
Kate Mereand Flickr

In case you missed it, Newsweek Magazine put out a Top Ten list last Friday. This top ten list was called "American's Dying Cities."

There's nothing like a provocative headline to get people to peek in.

For Michigan, it's the usual suspects: Flint and Detroit.

But many will be surprised that Grand Rapids also made the list.

No doubt about it, there are many urban areas around the country that are in decay. The question is, how do you measure the decay?

The writers at Newsweek said they looked at the latest census numbers (it's difficult to tell who at Newsweek looked at the numbers because there's no byline as far as I can tell):

We used the most recent data from the Census Bureau on every metropolitan area with a population exceeding 100,000 to find the 30 cities that suffered the steepest population decline between 2000 and 2009. Then, in an attempt to look ahead toward the future of these regions, we analyzed demographic changes to find which ones experienced the biggest drop in the number of residents under 18. In this way, we can see which cities may have an even greater population decline ahead due to a shrinking population of young people.

It's also difficult to tell which direction this list goes.

The cities are listed in their scrolling widget in one direction, and in their "view all" list in the opposite direction. So, for what's it's worth, here's the list (from their "view all" view):

  1. Grand Rapids, Michigan
  2. Flint, Michigan
  3. South Bend, Indiana
  4. Detroit, Michigan
  5. Pittsburgh, Pennsylvania
  6. Cleveland, Ohio
  7. Rochester, New York
  8. Hialeah, Florida
  9. Vallejo, California
  10. New Orleans, Louisiana
Auto/Economy
11:30 am
Mon January 24, 2011

Report: GM to add more jobs at Flint Assembly Plant

An announcement at Flint Assembly this morning.
Steve Carmody Michigan Radio

Update 11:30 a.m.:

Steve Carmody called in with this update from the news conference:

GM announced that it will add 750 jobs to its Flint Assembly Plant by adding a third shift. No new hires will be made. The pool of workers will come from two places:

  1. people being reactivated from various layoff pools
  2. workers who would like to return to Flint after they were transferred to another plant

10:21 a.m.:

GM is planning a news conference at 10:30am this morning.

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Auto/Economy
11:05 am
Mon January 24, 2011

Report: GM sells more cars in China than in U.S.

General Motors headquaters in Detroit. GM says it sold more cars in China last year than it did in the U.S.

More signs that China's economy is growing.

The Associated Press reports:

General Motors says it sold more cars and trucks in China last year than it did in the U.S. for the first time in its 102-year history.

The company sold 2.35 million vehicles in China. That's about 136,000 more than it sold in the U.S.

The AP report says GM sold 2.35 million vehicles in China - 136,000 more vehicles than it sold in the U.S. in 2010.

The country's population is 4 times bigger than the U.S. population (according to World Bank numbers):

  • China's population: 1,331,460,000
  • U.S. population: 307,006,550
Politics
9:56 am
Sat January 22, 2011

Snyder: communities that innovate will be rewarded

In the world of corporate business, bonuses, perks and cash incentives rule the day. They're used to drive productivity.

Governor Snyder, a former corporate president, is bringing that mentality to Lansing.

Now, he says he wants to reward local governments that find better, cheaper ways to provide services.

Rick Pluta, of the Michigan Public Radio Network, says Snyder's budget proposal will call for cash incentives that encourage cities and townships to innovate.

Rick filed this report saying the Governor's announcement was a small bit of welcome news to local officials bracing for more budget cuts from the state:

Governor Snyder outlined his idea at a drop-by with local government officials meeting in Lansing.

He says local governments provide most of the services that people use, and the state should reward the ones that find ways to consolidate, cut costs, and innovate:

"So it's really to create an environment to say, here's a positive incentive to be the very best...so people first and foremost in Michigan and then people around the country and the world will look at Michigan are going to look and say, these people have their act together, this is the place to be, this is the place to have your kids grow up and succeed."

The governor provided few details.

He says those will wait for his budget proposal next month, and a special address on government reform that he will deliver in March.

homelessness
5:31 pm
Fri January 21, 2011

State agencies to receive less money in 2011 to prevent homelessness

Officials from Community Rebuilders with a number of people who've gone through thier programs for the homeless.
Lindsey Smith Michigan Radio

The federal department of Housing and Urban Development announced this week its granting $56 million dollars to Michigan to prevent homelessness. The money funds 269 separate programs all over the state.

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Economy
5:07 pm
Thu January 20, 2011

Will price tags be a thing of the past in Michigan?

A law in Michigan requires retailers to label each product in their stores with a price tag.
Christopher Matson Flickr

Price tags? We don't need no stinkin' price tags.

In his State of the State address last night, Governor Rick Snyder said the legislature should get rid of or modify "antiquated laws."

One law he used as an example was the state's "Item Pricing Law." The law, he said, is an undue burden on retailers. From Snyder's State of the State outline:

"Requiring 'stickers' over other forms of price-marking costs Michigan’s economy over $2 billion dollars a year. Let’s use the technology we have to protect customers."

Michigan Radio news intern, Sarah Alvarez, filed a report on the state's Item Pricing Law.

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Economy
2:58 pm
Wed January 19, 2011

Dow chief meets with President Obama and China's President Hu Jintao

Andrew Liveris, CEO of Dow Chemical speaking at the ground breaking of Dow Kokam, an advanced battery manufacturing plant in Michigan.
Dow Chemical

The CEO of Dow Chemical, Andrew Liveris, met with President Obama and China's President Hu this afternoon along with leaders from 17 other businesses in the U.S. and China.

President Obama says he's stressing the importance of  increasing exports to China and increasing investment in the United States, "both critical to supporting millions of American jobs." 

President Obama and President Hu made statements to the press before their meeting. From the press pool report:

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Economy
12:53 pm
Wed January 19, 2011

West Michigan economy in the middle of “significant turnaround”

GVSU economist Hari Singh tells business leaders "last year there was a glimmer of hope, today the sun is rising"
Lindsey Smith Michigan Radio

The annual West Michigan Economic forecast was held today in Grand Rapids. Hari Singh is an economist at Grand Valley State University. He expects employment will increase 2% in the region this year .

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Economy
2:42 pm
Tue January 18, 2011

Michigan manufacturers call for tax cuts

You don't see these being built anymore. A model of an assembly line in the Detroit History Museum.
flickr - user harry_nl

The Michigan Manufacturers Association (MMA) says Michigan is getting it's "butt kicked" when it comes to taxes.

In the Detroit Free Press, the MMA's vice president for government affairs, Mike Johnston, was quoted when talking about personal property taxes on equipment.

From the article:

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Economy
7:37 am
Mon January 17, 2011

Two chambers of commerce promoting online coupon deals

Two communities in West Michigan are trying an online coupon program to help spur the economy. The program called ‘Try it local’ is similar to Group-on.

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Food
5:03 pm
Fri January 14, 2011

Report: Infamous "La Shish" name coming back to Michigan

La Shish Restaurants were once famous in Michigan for good middle eastern cuisine. But the restaurants closed when La Shish's owner got into legal trouble and fled the country.

Now, Jeff Karoub reports for the Associated Press that the La Shish name will come back to Dearborn:

Restaurateur Carmel Halloun said Friday that he's acquired the rights to use the La Shish name and plans to open a restaurant in March in the former chain's first location in Dearborn.

The name doesn't come without baggage. The La Shish chain of restaurants closed when the former owner, Talal Chahine, fled the U.S. Karoub writes that in 2005 Chahine "was charged with multiple counts of tax evasion and citizenship fraud."

The new owner of the La Shish name says he thinks enough time has passed. From Karoub's article:

Halloun said he knows people loved the food and is willing to take a chance. He said he wouldn't reopen at La Shish's first location without the restaurant's original name. "I want people to come back," he said.

Auto
2:09 pm
Fri January 14, 2011

Auto Week's "Best in Show" at the Detroit Auto Show

The Porsche 918 RSR concept, named "Best in Show" by the editors of AutoWeek.
Roger Hart Auto Week

Editors at Auto Week perused the offerings at the 2011 North American International Auto Show and named their top picks.

Executive Editor of Auto Week, Roger Hart, said the show had more than two dozen new models on display, and most had one thing in common:

 "There were no fancy, pie-in-the-sky, dreamlike concept cars. Nearly everything billed as a concept looked as if you could buy one tomorrow at your local dealership and drive it home."

Here are their picks:

BEST IN SHOW: Porsche 918 RSR Concept

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Economy
11:08 am
Fri January 14, 2011

Report: Borders close to financing deal

Borders has been on the brink. The company has been trying to secure financing to stave off bankruptcy.
Flickr - Ruthanne Reid

The headlines for the Michigan-based Borders Group Inc. have not been good lately:

And my personal favorite speculative headline:

It seems everyone has been on a death watch for the bookseller.

Today, Julie Bosman writes in the New York Times Borders may be close to a financing deal that might help the company reorganize. From the article:

Borders executives told publishers that they were close to securing refinancing from GE Capital and other lenders, these people said, speaking only on condition of anonymity, and that the company intended to reduce costs, improve liquidity and expand marketing efforts, as well as sell some assets.

Earlier this month, we  posted on a Reuters report that said Borders was working with publishers to work out a deal. Borders is in debt to the publishers for past shipments and the company reportedly wants to restructure that debt as a loan.

Meanwhile, the company is cutting costs. The Detroit News reported yesterday that Borders is closing a big distribution center in Tennessee:

Borders will consolidate the processing and delivery of books, movies, music and other products to two distribution centers in Carlisle, Pa., and Mira Loma, Calif. It is part of a long-term effort to cut costs and make the distribution of products to bookstores more efficient, Borders Group said in a statement.

So will borders survive? What would your future headline say?

Auto/Economy
4:43 pm
Thu January 13, 2011

Report: Profit-sharing checks coming to Ford and GM workers

GM plans to issue profit-sharing checks to workers, the NYT reports.
Steve Carmody Michigan Radio

At the Detroit International Auto Show, domestic automakers are celebrating a comeback of their industry. GM and Ford both saw profits last year, and the car makers are expecting a good year this year.

As more proof of the comeback, Bill Vlasic and Nick Bunkley report in the New York Times about profit-sharing checks that are expected to go to GM and Ford workers:

The two big Detroit carmakers will announce profit-sharing checks this month for their hourly workers, perhaps the largest in a decade, company officials and industry analysts say.

The checks are expected to top out at $5,000 at Ford, less at GM.

They report these checks "would be the biggest payout since the $8,000 checks that Ford handed out in 2000." Chrysler, the report says, is not expected to issue bonus checks this year.

Economy
10:46 am
Thu January 13, 2011

Company buys shuttered GM manufacturing plant

Motors Liquidation real estate manager Mike Deighan announces the sale at a press conference Thursday. (Wyoming mayor Jack Poll at left, and The Right Place President Birgit Klohs at right.)
Lindsey Smith Michigan Radio

Motors Liquidation, the official name of “old General Motors”, has a buyer for its 2-million-square-foot former GM stamping plant in the Grand Rapids suburb of Wyoming.

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