economy

Politics
10:55 am
Wed May 30, 2012

This Week in Michigan Politics

The Grand Hotel on Mackinac Island.
Lester Graham Michigan Radio

Each Wednesday I check in with Michigan Radio's Political Analyst, Jack Lessenberry, for a round up of state politics.

This week Jack is on Mackinac Island (he's promising not to eat any fudge) for the annual Mackinac Policy Conference.

The 3-day conference is billed as a time for state business and political leaders to talk about and shape the state's future.

Lessenberry said they are talking this year about the comeback Michigan has been on. He says Governor Synder talked about how Michigan has the right to be proud of that fact.

"In some years people at the conference have been almost in the fetal position talking about some of the problems we've had," said Lessenberry. "This is an acknowledgment that people want to be more upbeat about the future."

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Environment & Science
10:27 am
Wed May 30, 2012

Invasive species hit your pocketbook

Sea lamprey cost taxpayers millions every year to control.
user drow_male wikimedia commons

The Nature Conservancy has released an analysis saying that invasive species such as zebra mussels and sea lamprey cost businesses and consumers hundreds of millions of dollars each year, besides damaging the environment in the Great Lakes region.

Power companies spend $130 million annually removing mussels from electric plants.

The report out yesterday said tourism and other industries lose $50 million a year in reduced demand because of invasive species.

The study conducted by Anderson Economic Group of East Lansing says the situation will get worse if Asian carp reach the Great Lakes.

News Roundup
8:54 am
Wed May 30, 2012

In this morning's news...

Brother O'Mara Flickr

State AG reviewing McCotter's petition signatures for possible elections fraud

U.S. Representative Thaddeus McCotter (R-Livonia) announced last Friday that his campaign found irregularities in his petion signatures to get his name on the upcoming primary ballot. The state is looking into more than just irregularities. From the Detroit Free Press:

Photocopies of petitions, dates that were cut and pasted onto the petition forms and different-colored ink on identical petitions were just a few of the tactics used to try to fool state election officials into believing that U.S. Rep. Thaddeus McCotter had enough signatures to get on the Aug. 7 primary ballot.

"This wasn't anything that was an innocent mistake," Lansing political consultant Tom Shields said Tuesday. "It was purely an attempt to make up for a lack of signatures, which is politically criminal."

Snyder calls Michigan the "Comeback State," urges businesses to hire veterans

At the opening of the Mackinac Policy Conference, Gov. Rick Snyder said the state's economic recovery is something that should be talked about. From MLive:

"Michiganders are too humble. We don't brag well," Snyder said Tuesday as he opened the Detroit Regional Chamber's 2012 Mackinac Policy Conference. "We have to speak up more. We are the comeback state in the United States right now."

During his remarks, he also asked businesses to reach out and hire more veterans. MPRN's Rick Pluta reports:

The governor says returning veterans face an unemployment rate of about 30 percent, something he calls “unacceptable.”

“So we need to help these people,” Snyder said. “So I ask you to do everything possible to make the session and to hire ‘em. That would be great. Thank you.”

More than 12,000 to lose jobless benefits

The Detroit News reports on looming unemployment benefit cuts.

Even though Michigan's unemployment rate has dropped to 8.3 percent, 205,044 workers in the state still collect unemployment benefits. But after June 23, up to 12,212 of those long-term unemployed workers will lose their emergency federal benefits under a formula that automatically cuts them off when the state's jobless rate drops.

Newsmaker Interviews
4:18 pm
Tue May 29, 2012

Rep. John Dingell: Stronger Michigan means better dialogue, reaching out

John Dingell.

This week, legislators, policy makers, and business leaders are gathering for the annual Mackinac Policy Conference.

The conference is sponsored by the Detroit Regional Chamber and this year organizers say they hope the conference will "spur a comprehensive dialogue on innovation, collaboration and the 21st century global market."

John Dingell is a Democrat representing Michigan's 15th Congressional District in the U.S. House.

He wrote an op-ed about the conference. It appeared in the Detroit News today.

In the op-ed, Dingell wrote about his desire for lawmakers to come together in a more bi-partisan way. He told Michigan Radio's Jenn White that there are a number of barriers to the bi-partisanship.

"Excessive partisanship is something which is both a reality and an end in itself to a lot of people who participate," Dingell said. "It's encouraged by media and 10-15 second soundbite and it is encouraged by the fact that politics has become a blood sport. Cheap shots are the way of the day and that we have somewhat forgotten the original intention of the founding fathers that we are to work together in the broader public interest."

He says the people have to understand that this is "our" country.

Dingell quotes his father who used to to say "we cannot look at the other fellow in the boat and say 'pardon me sir, but you're end of the boat is sinking.' We are all in this thing together."

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Auto
2:28 pm
Thu May 24, 2012

Canadian railway strike could affect U.S. automakers

Ian Britton creative commons

A strike by Canadian railway workers threatens to slow or shut down production at some U.S. auto plants.

5,000 Canadian Pacific Railway workers walked off the job early Wednesday because of a dispute with management over a new contract.

Large numbers of finished vehicles and auto parts come to U.S. factories via Canadian Pacific.

Ford and General Motors say they don't expect the strike to affect production - at this time.

Chrysler says it is actively working to mitigate any impact to its operations through alternative shipment methods, such as trucks.

The longer the strike goes, the greater the chance it could affect the U.S. auto industry.  The Canadian Labor Ministry says it has the authority to intervene and will do that if the two sides haven't reached a deal by Monday.

Business
1:11 pm
Thu May 24, 2012

Amway to build new facility, add jobs, in Michigan

Headquarters of Amway in Ada, Michigan
amyway.com

Amway plans to spend up to $81 million to build a new facility in West Michigan.

The direct-sales company says it received a $1.6 million grant from the Michigan Economic Development Corporation for the project. The new facility will manufacture and process vitamins and supplements for Amway's Nutrilite brand.

From their press release:

This investment includes a new $81 million nutrition plant at the company's Spaulding Avenue site in Ada, Michigan, near Amway World Headquarters. The new plant is expected to create 200 jobs over the next three years.

The Michigan Economic Development Corporation (MEDC) today approved a $1.6 million Michigan Business Development Program incentive from the Michigan Strategic Fund (MSF) to support construction of this nutrition products manufacturing facility for Access Business Group LLC, an affiliate of Amway.

Amway says it employs 4,000 people in Michigan. Amway was started in 1959 by Rich DeVos and Jay Van Andel.

Economy
2:10 pm
Thu May 17, 2012

White House hosts forum for urban entrepreneurs in Detroit

Screengrab from White House video stream

Small business owners and hopeful entrepreneurs are in Detroit today to get advice on  starting or improving a business.

The Urban Economic Forum, held by The White House Administration, hopes to help entrepreneurs in Detroit connect to resources and network with other business leaders.

The White House Administration said it is committed to supporting the Detroit area’s small businesses.

CBS Detroit reports:

Among the topics of discussion were the resources available to minority and urban entrepreneurs who are trying to access capital for their businesses. Mentors were also available to provide advice to business owners.

In a press, release the White House Administration wrote that other Urban Economic Forums will be held in Chicago, Illinois, and Columbus, Ohio.

Commentary
11:03 am
Thu May 17, 2012

Commentary: Falling unemployement rates

There are people who lose their jobs during the best of times, and those who are wildly successful even during a depression.

But what really matters is the overall trend. When you look at that, and at a flurry of new numbers that came out yesterday, it seems clear that Michigan is in fact doing better than a year ago.

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Economy
5:02 pm
Wed May 16, 2012

Michigan residents more upbeat about Gov. and economy

Michiganders are becoming more optimistic about the economy and that positive thinking is adding a bit of extra shine to Gov. Rick Snyder's image.

That's according to new results out today from Michigan State University's State of the State Survey.

An MSU press release says state residents haven't been this positive about the economy since 2005, with 54 percent of survey participants  characterizing their financial situation as "good" or "excellent" and 61 percent expecting things to get even better in the year to come.

More from MSU:

"The Michigan economy has added 150,000 jobs since the job market bottomed out at the end of 2009," said Charles Ballard, MSU economics professor and director of the State of the State Survey. "The improvement in the economy is reflected in the brighter mood in our latest survey."

The findings are based on the latest quarterly phone survey conducted from Feb. 14 to April 15. A total of 963 Michigan adults were questioned in the survey which has an error rating of +3.16 percent.

In the fall 2011 survey, conducted from mid-September through early November, only 46.2 percent of those answering the survey called their financial situation "excellent" or "good."

Gov. Snyder's approval ratings also improved amongst those surveyed, rising to 33 percent compared with 19.3 percent last fall.

- John Klein Wilson, Michigan Radio Newsroom

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Economy
4:34 pm
Wed May 16, 2012

Survey measures how Michigan residents feel about the economy, Gov. Snyder and Pres. Obama

The findings are based on the latest quarterly phone survey conducted from Feb. 14 to April 15. A total of 963 Michigan adults were questioned in the survey which has an error rating of +3.16 percent.

Every quarter, Michigan State University releases its State of the State survey. The survey questioned 963 Michigan adults about issues such as the economy, taxes, and Michigan’s financial future.

Charles Ballard is Michigan State University Professor of Economics. He said Michigan residents are more optimistic about the economy.

Those responding to the survey, 54% said their current financial situation was excellent or good. And, 61% of  said they believe they will better off a year from now.

When people are feeling better about the future, Ballard said “they are more likely to make an investment, they’re more likely to spend money and that can have a positive effect on the economy.”

But according to Ballard, trust in government is not so good.

“State government – 16% said that they think they can trust the state government all of most of the time. Twelve percent said they could trust the federal government all or most of the time. It’s a little better for local governments, it’s up in the 30’s, but still those numbers for all levels of government have trended downward, which I think is a reflection of some dissatisfaction at grid lock in Lansing and in Washington.”

Learn more about the approval rating for Governor Snyder and President Obama here.

The findings are based on the latest quarterly phone survey conducted from Feb. 14 to April 15. A total of 963 Michigan adults were questioned in the survey which has an error rating of +3.16 percent.

Economy
12:09 pm
Wed May 16, 2012

Moderate economic growth forecast in Michigan

The Michigan State Capitol.
Jimmy Emerson Flickr

A UM economic forecaster is predicting moderate economic growth for the state until 2014.

The Detroit Free Press reports that George Fulton, director of the Research Center on Quantitative Economics at the University of Michigan, gave the forecast at today's revenue estimating conference at the state Capitol.

From the Freep:

Private sector job growth will continue in 2013 and 2014 but at a more moderate pace than the rapid growth seen in 2011 and the early part of 2012, Fulton said.

"We see a sustained but moderately paced recovery from now until 2014," he said.

The revenue estimating conference is part of finalizing the state's 2013 budget.

Officials try to reach consensus on how much revenue the state can expect in the coming years.

MPRN's Rick Pluta is covering the conference and will have more for us later.

Economy
10:46 am
Mon May 14, 2012

Employers having trouble filling IT jobs in Michigan

Seeking qualified technology workers in Detroit.
Detroit Venture Partners, LLC YouTube

New technology jobs are coming to Detroit.

Quicken Loans founder and chairman Dan Gilbert has been buying buildings and looking for technology tenants as part of a business he co-founded with Earvin "Magic" Johnson, and  Brian Hermelin called Detroit Venture Partners LLC.

In a promotional video, Detroit Ventures Partners say their goal is to transform Detroit.

"This is our time to turn a crumbled city into a new beacon of hope."

But the self-proclaimed "creative business builders" and "street-fighters" are having a tough time finding talent in Michigan.

The Detroit News reports today Quicken Loans and other tech companies are looking to fill positions with people from out of state.

Online mortgage company Quicken Loans Inc., looking to fill more than 300 information technology positions, has taken its search outside Michigan to find qualified candidates. The Detroit-based company recently launched a website aimed at recruiting laid-off Yahoo workers.

GalaxE.Solutions, a project management firm known for its "Outsource to Detroit" banner on its Woodward Avenue building, has stumbled trying to fill 500 IT jobs.

"There is a shortage nationwide of good IT talent," said Ryan Hoyle, director of global recruiting for GalaxE, which has 150 IT workers in Detroit and hopes to add 350 in the next few years. "There just aren't a lot of top students going into IT."

Michigan's Bureau of Labor Market Information & Strategic Initiatives lists several IT jobs on its Michigan's Hot Jobs List. These are "high demand and high wage" careers in Michigan that are expected to continue to be in demand through 2018.

Economy
1:05 pm
Thu May 10, 2012

Hostess Brands says layoffs could be coming in Michigan

GRAND RAPIDS, Mich. (AP) - Hostess Brands Inc. has notified state officials it may have to lay off about 380 Michigan workers as part of its plan to get out of bankruptcy. Possible cuts include 70 jobs in Detroit and 65 in Troy. Hostess filed for Chapter 11 protection in January.

Economy
11:24 am
Thu May 10, 2012

Moving up the economic ladder in Michigan

Despite a tough state economy, people in Michigan are better able to move up the economic ladder than people in almost every other state. That's according to a report released by the Pew Research Center today.

The study found overall economic status doesn't change much over people's lives.

Erin Currier is from the Pew Center. She says the study did not look at why certain states did better than others. But she says there are some general lessons.

“Certain drivers of mobility are extremely powerful and those drivers include things like educational attainment, savings and asset building, and neighborhood poverty during childhood among others,” Currier.

The study found states with the most economic mobility are New York, New Jersey and Maryland.

Commentary
11:12 am
Wed May 9, 2012

Commentary: Slight increase in manufacturing jobs in Detroit

There’s a phenomenon that happens sometimes after a major stock market crash which is known by the ghastly name, “Dead Cat Bounce.”  We saw a lot of that back in the fall of 2008.

The Dow Jones averages would plunge 500 one day. The next day, they’d recover, say, 50 points, before falling even further later in the week. What was that brief rally all about? Well, it wasn’t about any real improvement in the market.

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Auto/Economy
11:26 am
Thu May 3, 2012

Auto parts maker to buy plant in Saline, Michigan, employ 500 people

The Saline, Michigan parts plant acquired by Faurecia.

A French auto parts maker says it plans to buy a parts plant in Saline, Michigan. Faurecia SA says the interior components plant will be part of a joint venture.

From the Associated Press:

Faurecia and Rush Group announced Thursday that they're creating Detroit Manufacturing Systems, a joint venture to build and automotive interior components in Detroit.

The companies say the venture expects to employ about 500 people in Detroit within the next three years and will make parts at first for Ford Motor Co.

Here's more from a Faurencia SA press release:

Faurecia will acquire the Saline business, which generates $1.1 billion annual sales supplying cockpit modules, instrument panels, door panels and center consoles for 12 vehicle programs assembled at eight Ford plants throughout North America. With this acquisition, Faurecia’s objective is to create a new operation that is optimized for efficient production, in line with the Faurecia Excellence System.

In conjunction with the Saline acquisition, Faurecia will enter into a new joint venture with Rush Group Ltd., one of the Rush Group of companies that together comprise one of the largest Native American and woman-owned businesses in North America. The joint venture, called Detroit Manufacturing Systems (DMS), will do injection molding, assembly and sequencing of interior trim components from a new facility in Detroit. Rush Group will hold the majority of the capital and the management of DMS, while Faurecia – with 45% of the capital – will bring its technology and manufacturing expertise to the joint-venture. As a result, the Saline plant will focus in the future on core technologies such as injection molding, skin manufacturing and foaming operations with annual revenues of nearly $400 million.

Commentary
11:51 am
Tue May 1, 2012

Commentary: More companies betting on Detroit

There’s an old Russian saying that, even, if you covered the world with asphalt, eventually a crack would form.

And in that crack, grass would grow. I was reminded of that yesterday by an Italian businessman my age, a man who is betting on green shoots coming through a town caked with many layers of asphalt. His name is Sergio Marchionne, and he is the CEO of a company called Fiat. Three years ago, he did something many at the time thought stupid. He took over a dying bankrupt company.

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Auto/Economy
11:23 am
Mon April 30, 2012

Chrysler begins producing the Dodge Dart this week

Chrysler unveiled the Dodge Dart at the North American International Auto Show earlier this year.
Mark Brush Michigan Radio

The Dart will help make Chrysler a full-line auto company once again. It's a compact car, or so-called "C-segment," car.

It's the first vehicle to combine a U.S. design with a Fiat chassis or platform.  The last small car Chrysler made was the Dodge Caliber and that was not very successful.

Chrysler and Fiat CEO Sergio Marchionne thinks the Dart will do much better.

"We are looking forward to a successful launch of a C-segment sedan, which is a piece of the market that we've been absent from for a long period of time, so we're expecting great volumes in terms of the Dart for the remainder of the year," said Marchionne.

A version of the Dart that gets 41 miles per gallon is expected later this year.

Auto/Economy
2:39 pm
Mon April 23, 2012

Changing Expectations: A second income is essential, but what about a third?

Josh Eikenberry
Josh Eikenberry

Changing Gears is partnering with Michigan Radio to collect stories about how people are planning ahead in light of the recession. 

Josh Eikenberry writes:

Because I got through college, I’ll probably be slightly better off economically than my parents, who only graduated high school.

On the other hand, the generation after me is doomed; college tuition and a rapidly changing economy requiring less workers means no chance to improve or make money, and the (probable) lack of a social safety net just adds to the gloomy picture facing my generation’s kids.

A second income is essential to any household. We have three. I work, my wife works, and on the weekends I work as a photographer. I’m iffy about kids, primarily because I don’t think I could realistically afford them. Maybe someday I’ll have enough saved to buy a house, but I’m not holding my breath. 

All I ever wanted was an office job. I have that now, so now I just want to pay of my debt and enjoy my life with my wife.

 

This story was informed by the Public Insight Network. If you want to learn how to be a part of our network, click here.

Auto/Economy
10:33 am
Thu April 19, 2012

U.S. auto production might struggle to meet demand

A Ford assembly plant.
Ford Motor Company

U.S. auto companies are faced with pent up demand from consumers at a time when their supplies for parts and materials are getting squeezed.

The Associated Press reports the shortages could limit the number of vehicles companies can sell, and squeeze a historic turnaround for the U.S. auto industry.

The most immediate problem — a shortage of a crucial plastic resin, caused by an explosion March 31 at a plant in Germany — could surface in a few weeks. And later this year or beyond, automakers could be confronted with an even bigger crisis, running short of parts simply because there aren't enough factories and people to make them.

The AP points out that the new process for manufacturing makes automakers vulnerable to these kinds of disruptions because auto suppliers don't stockpile parts the way they used to.

Instead, to hold down warehouse and inventory costs, they rely on a "just in time" system in which parts are delivered just days or hours ahead of when they are needed.

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