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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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Auto/Economy
1:37 pm
Tue January 25, 2011

Chicago Auto Show organizers like Detroit's trend

It seems they've always been big. The Chicago Auto Show in 1938. "Musical skits...featured the new models. In the photo is the 40-foot revolving globe."
Chicago Auto Show

For the second year in a row, attendance at the North American International Auto Show increased.

It's not just good news for Detroit. It could also be good news for Chicago.

The 2011 Chicago Auto Show kicks off in two weeks.

Its organizers say they’re encouraged by the figures out of Detroit where 735,000 people attended this year’s show.

That’s about 20,000 more than last year.

It's not a huge increase, but it is a change from years of steady decline.
Paul Brian works with the Chicago Auto Show, which attracts a lot more people than the Detroit Auto Show. Brian says regional rivalries aside

"It's kind of like whether you’re Army, Navy, Air Force or Marines - everybody’s playing on the same team. If it’s good for the Detroit show, it’s good for Chicago, and New York, and LA, and it’s good for the industry."

After all, buzz is buzz.

Transportation
10:45 am
Tue January 25, 2011

Part of terminal at Detroit Metro Airport evacuated

Inside the Detroit Metropolitan Airport
Phil H Flickr

UPDATE 10:45 a.m.:

A suspicious package forced the evacuation of part of the Detroit Metro Airport today.

Mike Conway is an airport spokesman. He says baggage handling workers alerted security officials after a box containing electronic equipment and loose wiring entered the building. The box was being moved from one airplane to another.

Conway says the security officials closed 8 gates in the McNamara Terminal while they investigated the box.

 “The area below that is where the nuts and bolts where all the processing of all the luggage, packages and stuff like occur…this package was on a belt…in the bag makeup area for that section of gates.’"

Conway says the box did not originate in Detroit. He says the shipper is being contacted.

9:15 a.m.:

Part of a terminal at Detroit Metropolitan Airport has been evacuated, the Associated Press reports. Authorities say the evacuation occurred after a suspicious box was found at an area for loading cargo and luggage onto planes.  According to the AP:

Airport spokesman Mike Conway says the box was found about 7:15 a.m. Tuesday and passengers were removed from part of Concourse B at the McNamara Terminal out of "an abundance of caution." Conway says planes that were to use gates at the concourse were using other gates at the airport. The concourse at the airport in Romulus primarily is used by regional aircraft.

He says details about why security officials determined the box to be suspicious weren't immediately available.

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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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
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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Auto/Economy
4:38 pm
Fri January 21, 2011

IRS won't process some returns until Feb. 14

Taxpayers who itemize deductions have to delay filing their returns until February 14 because of changes in the federal tax law.
levistaxes.com

Some Michigan taxpayers getting ready to tackle their returns may have to wait before filing because last-minute federal tax law changes caused a delay in processing.

If you file a simple federal tax return – that is, you don’t itemize your deductions -- you can do that right now.

Otherwise, you’ll need to wait a few weeks.

Luis Garcia is with the Detroit office of the IRS. He says the agency is updating its programs to reflect the tax law changes.

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Auto/Economy
10:44 am
Fri January 21, 2011

Will more ethanol in gas lead to more engine damage?

An ethanol plant in Iowa. The EPA is allowing more ethanol to be mixed into gas.
Fred Thompson Flickr

The farm lobby has been pushing hard to increase the amount of ethanol allowed to be mixed into gasoline. And it seems like the Obama Administration is obliging.

The vast majority of today's ethanol comes from corn. The alcohol is mixed in gasoline to make it burn more cleanly.

Right now, the standard is 10% (a 10% ethanol, and 90% gasoline mix is most likely in your gas tank right now).

The EPA increased the allowed amount of ethanol to a 15% mix last fall for cars made after 2007.

Now, the Associated Press reports the EPA is poised to allow the 15% mix for more cars. From the AP:

Two people familiar with the decision said late Thursday the agency is expected to announce on Friday that 15 percent ethanol in gasoline is safe for cars manufactured between 2001 and 2006. Both officials requested anonymity because they were not authorized to speak publicly about the decision.

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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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Unemployment
6:36 am
Thu January 20, 2011

State jobless rate declines in December

Michigan's December unemployment rate was 11.7 percent
Khalilshah Flickr

Michigan's unemployment rate dropped in December to 11.7 percent. But, as Rick Pluta reports, the decline in the jobless rate was due mostly to people who have stopped looking for jobs:

Michigan’s unemployment rate dropped steadily throughout 2010. But there are still 555,000 people in Michigan who are out of work and looking for jobs. Half of them have been looking for six months or more.

There was little new hiring last month. The number of people who simply stopped looking for work is the biggest reason for the decline in the jobless rate. The state Department of Energy, Labor, and Economic Growth says the number of people who say they are available to work fell by 37,000.

When people who are looking for jobs, those who’ve quit looking, and part-time workers who’d like to be full-time are rolled together, Michigan’s rate of unemployment and under-employment is 21 percent.

Michigan’s unemployment rate in 2010 was 13.6 percent. That’s a drop of half a percentage point from the 2009 average.

State of the State
10:24 pm
Wed January 19, 2011

Gov. Snyder supports new Detroit River bridge (and he says he's got a way to pay for it)

A downstream view of the Ambassador Bridge and downtown Detroit from the proposed location of the new bridge crossing
(photo by Steve Carmody/Michigan Radio)

The controversial plan for a new bridge linking Detroit with Windsor, Ontario has a new very high profile supporter: Michigan’s new governor.

Rick Snyder voiced support for the Detroit River bridge project in his State of the State address last night. Last year, Republican state lawmakers rejected Canada’s offer of $550 million to help pay for Michigan’s share of the bridge.

But the Republican governor says he’s come up with a way to make the bridge a reality.  

Transportation Director Kirk  Steudle and I have secured a unique agreement with the federal Highway Administration to use this $550 million investment in our infrastructure towards the matching funds required for all federally funded highway projects across our state.

The bridge still faces opposition. The owners of the Detroit’s Ambassador Bridge have waged a long fight against a new bridge built and operated by anyone other than them.

Economy
10:13 pm
Wed January 19, 2011

U of M, MSU and Wayne State to work with Procter & Gamble

U of M will partner with Procter & Gamble on future research for consumer products
(photo by Steve Carmody/Michigan Radio)

Consumer products giant Procter & Gamble is teaming up with Michigan’s three leading research universities.

The University of Michigan, Michigan State and Wayne State Universities will work with P&G to develop new products.

Daryl Weinert is the executive director of U of M’s Business Engagement Center. He says the collaboration will allow university researchers to move ‘at the speed of industry’.

It sends a message to the world when a company like P& G chooses a state like Michigan to do a collaboration like this.

Weinert says the state of Michigan will benefit because of the ripple effects of business investment. The program will eventually expand to other Michigan universities. Procter & Gamble has a similar research corridor in Ohio.

Auto/Economy
5:18 pm
Wed January 19, 2011

Chrysler to build experimental hybrid minivans

There’s more than one kind of hybrid vehicle. But most people only know about electric hybrids that use batteries.

The U.S. Department of Energy has poured several billion dollars into helping companies develop advanced lithium-ion batteries.  But to hear Chrysler CEO Sergio Marchionne describe the effort, that's tantamount to picking a technology winner, before the race is finished.

The big problem with advanced batteries, says Marchionne, is they're really expensive. A big battery can increase the cost of a vehicle by a third.  

"And I don’t think we should prejudice the discussion by saying electrics are the answer," Marchionne said at a press event held at the U.S. Environmental Protection Agency's National Vehicle and Fuel Emissions Laboratory in Ann Arbor.  "They may be part of the answer."

Enter hydraulic hybrids. They tap into energy stored in high pressure canisters filled with fluid and nitrogen. They’re cheaper than electric hybrids, and already used in some big rigs and garbage trucks.

Now, using technology developed by the U.S. EPA., Chrysler will build and test a set of hydraulic hybrid minivans. The company hopes to see the same improvement in fuel efficiency as battery hybrids - about 30 to 35% -  but at a much lower cost.

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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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Detroit Auto Show
6:59 am
Tue January 18, 2011

Attendance up at the Detroit Auto Show

Attendence is up at the North American International Auto Show in Detroit this year
Jdpowers65 Flickr

Attendance is up at the North American International Auto Show so far this year, the Detroit Free Press reports. The Freep says:

Attendance Monday was 64,520, up from 61,112 from the same day last year, said NAIAS spokesman Sam Locricchio. On opening day Saturday, 86,622 attended the show, compared with 83,715 on the opening Saturday last year, he said. Sunday's attendance was 99,111 -- up from 96,623 for the opening Sunday in 2010, he said.

The show, at Detroit's Cobo Center, is open until Sunday.

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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