Business

Education
3:16 pm
Mon July 25, 2011

University of Michigan to offer entrepreneurship masters degree

The University of Michigan will offer a year-long masters degree in entrepreneurship starting fall 2012. The joint program between the College of Engineering and Ross School of Business aims to combine the wealth of technological ideas with business expertise.

David Munson is the College of Engineering dean at the University of Michigan. He believes the partnership is the first of its kind.

"The uniqueness really stems from the quality on both sides and bringing that quality together to try to produce what we hope will be the best program of its kind in the country," Munson said.

Munson expects many engineering students to enroll in the entrepreneurship program after they graduate. Entrepreneurship will likely have a place in each department at the university in coming years.

- Amelia Carpenter - Michigan Radio Newsroom

Changing Gears
10:38 am
Mon July 25, 2011

What company towns look like today: Kohler, Wisconsin (Part 1)

The name you see in many bathrooms around the country has its roots in Kohler, Wisconsin.
Niala Boodhoo Changing Gears

From Pullman in Chicago to Firestone in Akron, these employers loomed large in everyone's daily lives.

But what does a "company town" look like today?

The Changing Gears team hit the road to find out.

All this week, we’re looking at how these places are coping with economic change.

For our first story, I visited the village of Kohler, Wisconsin.

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Economy
5:11 pm
Thu July 21, 2011

Lemonade economics

The recession has taken its toll on the neighborhood lemonade stand.
Amelia Carpenter Michigan Radio

(Here's a version of the story that aired on Michigan Radio.)

Turns out even lemonade stands aren’t immune to Michigan’s economic recession.

Molly and Lucy Prochaska have been in the lemonade business for the past five years. They sell lemonade, iced tea, and Arnold Palmers (50 cents for a small cup, $1.00 for a large.)  They also sell popsicles at fifty cents a piece, which is a new addition this year.

They’ve got a cash register, lots of signage. They're also located close to downtown, so there's a good amount of foot traffic from the Ann Arbor Art Fairs.

But 12-year old Molly says business just isn’t what it used to be:

MOLLY PROCHASKA: The first year was really nice, we got lots of money. But after that, when the economy started to go down we didn’t get as much money.

JENNIFER GUERRA: You think it had to do with the economy?

MOLLY PROCHASKA: Probably. People didn’t want to spend as much. They wanted to save their money.

The girls made around $200 their first year. Molly is saving up her lemonade money to buy a camera; Lucy wants to buy an iPad.

But it's not all doom and gloom at the lemonade stand. Molly says business this year is picking up a bit. She says that could mean one of two things: the economy's picking up, or more people are coming because it's "super hot out."

Also, side note, it looks like Molly and Lucy might have to step up their game now that a new lemonade stand popped up a block away. Not only is the new stand charging less for a cup, but they also use fresh lemons.

Economy
11:02 am
Thu July 21, 2011

Whirlpool reports second quarter loss

thewildinvestor.com

Whirlpool is reporting a loss in its second quarter. The company says the loss is the result of a legal settlement. The company announced in June that it would pay $603 million to Brazilian bank Banco Safra S.A. to settle the 20 year old dispute.

From the Associated Press:

Whirlpool Corp. is reporting a second-quarter loss largely due to the settlement of Brazilian collection dispute, but its adjusted results topped Wall Street's expectations.

But the world's biggest appliance company said Thursday that it now expects full-year earnings at the low end of its previously reported range and shares dipped 3 percent in premarket trading.

Whirlpool lost $161 million, or $2.10 per share in the past quarter. That compares with a profit of $205 million, or $2.64 per share, a year ago. Excluding the settlement and other items, adjusted earnings were $2.76 per share. Revenue climbed 4 percent to $4.73 billion from $4.53 billion. Analysts expected earnings of $2.73 per share on revenue of $4.74 billion.

Whirlpool, whose other brands include Maytag and Kitchenaid, is based in Benton Harbor. Mich.

Business
3:26 pm
Tue July 19, 2011

Michigan high-tech start-ups get funding

Andrew Magill Flickr

Michigan Smartzones and Ann Arbor SPARK helped eight high-tech start-up companies get money to help accelerate their businesses. The Michigan Pre-Seed Capital Fund program matched 1-point-8-million-dollars in outside investments with hopes that the companies create jobs and stimulate the economy. They have invested more than 13-point-4-million-dollars in 62 Michigan companies to date.

Skipp Simms manages the Michigan Pre-Seed Capital Fund at SPARK. He says the program has made great use of state capital.

"It’s 21st century jobs fund money and we think that it certainly is one of the programs that is already delivering some pretty significant returns to the state on this economic development type investment," Simms said.

The Michigan Pre-Seed Capital Fund is in its third year.

The eight companies getting funding are:

- Amelia Carpenter - Michigan Radio Newsroom

Arts/Culture
5:07 pm
Mon July 11, 2011

Detroit's new biz accelerator focuses on creative sector

New business accelerator focuses on creative industries
Dani Davis

A unique business accelerator opens today in Detroit. 

A lot of business accelerators, generally speaking, focus on internet startups and biotech companies. But with the new Creative Ventures Acceleration Program in Detroit, the spotlight is on creative industries:

"The industrial design world, the interior design world, fashion design, music production, video production and architecture."

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Health Care
3:54 pm
Fri June 24, 2011

Governor Snyder to talk health care reform in September

Governor Snyder says health care reform should focus on underlying costs, not insurance
Governor Rick Snyder

Governor Snyder has stayed pretty quiet on the subject of federal health care reforms. He is the nation’s only Republican governor who has not specifically called for repealing the law.

But he said this week that the new rules don’t pay enough attention to wellness and prevention. The governor told a group of small business owners that he will propose a health care reform plan for Michigan later this year that will focus on containing costs by encouraging people to get healthier.

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Politics
5:52 pm
Mon April 11, 2011

Snyder calls on “silent majority” to express support for his plans

Governor Rick Snyder on the protests against his plans: "I got the response I expected, there's no surprise here."
Russ Climie Tiberius Images

Over the last few weeks, thousands have protested against Snyder’s budget plans. There were a few hundred at a rally in downtown Grand Rapids last week. Outside the Amway Grand Plaza Hotel where Snyder addressed a group of business leaders Monday, just a handful of people held signs.

Inside the hotel, Snyder told the crowd he respects the protestors, and he says he expected them.

“Are they all going to get on board? No. Will some people stay upset for a very long time? Yes. But I believe the vast majority of Michiganders are already being very supportive of what we’re doing.”

Snyder encouraged what he called the ‘silent majority’ to speak up – to friends and co-workers, to the media, and to those they elected.

“This is the time to speak. Staying quiet does not help.”

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Commentary
11:01 am
Mon March 28, 2011

Why Business Leaders Support the Budget

The changes Governor Rick Snyder wants to make with his proposed budget are hugely controversial. But everyone agrees on this: They are designed to bring new business to Michigan.

The governor believes there is no other way to revitalize our state’s economy. But what does business really think of the governor’s budget? People in business aren’t monolithic. General Motors doesn’t have a lot in common with the mom-and-pop restaurant in my neighborhood with five employees.

So last week, I talked to two business leaders who each represent a broad cross-section of somewhat dissimilar interests. Doug Rothwell is president and CEO of Business Leaders for Michigan, a group of seventy-six of the state’s largest employers.  Rob Fowler has the same title with the Small Business Association of Michigan, sometimes known as SBAM.

SBAM has more than ten thousand members, many of whom have fewer than a hundred employees. Fowler and Rothwell don’t always see eye to eye -- but they do on the governor’s budget.

They support it, right down the line. “I think the governor’s tax plan is the right thing to do, even though some of our members are going to pay more,” said Rothwell, who ran Detroit Renaissance before it evolved into Business Leaders two years ago.

Rob Fowler, who has also had small business leadership positions in Indiana and Ohio, put it this way: “You have to understand the moment in time we are in.”

“Sure, there are things in the governor’s plan I am sure, standing by themselves, our members would not support.”

But both men said it was vitally important to pass the plan as a whole, that if lawmakers started picking off pieces, it would fall apart.

I talked to each man separately, and discovered that what both liked most about the plan was that it offers a coherent, comprehensive strategy for Michigan’s long-term economic recovery. Rothwell noted that this was not a budget of quick fixes and one-time solutions, but one with vision.

Critics have said that the governor is just betting an hunch, gambling that slashing taxes will bring new business into the state.

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Business
7:03 am
Fri March 25, 2011

Senator Levin to attend small business summit in Detroit

Michigan Senator Carl Levin (D) will be in Detroit today along with federal officials
Jeffrey Simms Photography Flickr

Michigan Senator Carl Levin and officials from the White House, the Department of Defense, and the City of Detroit will host a small business summit at Cobo Center in Detroit today. As the Associated Press reports, the event is, “designed to help Michigan small businesses explore contracting opportunities with the defense industry. Small business representatives are to learn about the defense acquisition process, meet defense contracting officials and explore contracting opportunities at the Department of Defense."

Levin, a Democrat from Detroit, is Chairman of the Senate Armed Services Committee.

Environment
2:59 pm
Thu March 10, 2011

Potential large scale wind farms coming to West Michigan

Industrial scale wind turbines could begin to pop up in West Michigan.
warrenski Creative Commons

There’s been a lot of talk in West Michigan lately about how wind power could boost the region’s economy. The area, particularly along the Lake Michigan shore, could be home to several potential wind projects.

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Arts/Culture
2:36 pm
Thu March 3, 2011

Kalamazoo art attracts patrons & business

Taking in some art in Kalamazoo
Arts Council of Greater Kalamazoo

Restaurants, businesses and galleries will showcase local art in downtown Kalamazoo at the city's monthly art hop. It happens on the first Friday of the month. (This month the gig runs from 5-9 pm.)

Colorful paintings will hang on the walls of businesses and galleries, musicians will be playing inside and outside, and restaurants feature special menus for the evening.

Beth McCann is with The Arts Council of Greater Kalamazoo. She says art hop is about showcasing local talent. But she says it’s also a great economic development tool.

 “We hear it coming back from the artists themselves, because obviously they sell their art. So we hear a lot of positive feedback from artists. And we also hear it from the business community that this is a night they count on for sales.”

McCann says so far, several nearby towns have picked up on the art hop idea including Paw-Paw and Plainwell. Normally there are 20 places to visit during art hop. But the March event is a super-sized version and 51 sites will have art on display.

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Business
5:15 pm
Fri February 18, 2011

Businesses form Michigan Black Chamber of Commerce

User zizzybaloobah Flickr

Michigan now has its first-ever statewide advocacy group devoted to black-owned businesses.

The Michigan Black Chamber of Commerce will introduce its leaders and goals at a press conference in Detroit Monday.

Ken Harris is the group’s president and CEO. He says the number of black-owned businesses in Michigan is growing at three times the national rate:

"We want to identify emerging markets that we’re successful in currently, and then more importantly we want to move into areas where we’re not participating."

Harris says the organization will also lobby in Lansing and Washington DC, and there are plans for local branches in several Michigan cities. The group plans a convention in Detroit in June.

Commentary
1:16 pm
Thu February 17, 2011

The Budget

Well, the governor’s budget has landed, and people are  shocked. They shouldn’t be. This is what we bargained for. This budget is, in part, a legacy of the last thirty years.

Starting with Ronald Reagan, we’ve been told repeatedly that taxes were bad. Not that they were sometimes too high, but that they were bad, period. So we cut them, and cut them again.

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Business
10:34 am
Thu February 3, 2011

Strong 4th quarter for Dow Chemical

Dow Chemical released its fourth quarter earnings report today and it was a good fourth quarter for the chemical giant. Its earnings nearly tripled. From the company's website:

  • The Company reported earnings of $0.37 per share, or $0.47 per share excluding certain items. This compares with earnings of $0.08 per share in the year-ago period, or $0.18 per share excluding certain items.
  • Sales of $13.8 billion rose 22 percent versus the same quarter last year.

The Wall Street Journal reports:

[Dow Chemical] has seen sales rebound in recent quarters on volume growth in basic chemicals, agriculture products and other units. Dow, whose chemicals are used in a wide range of products including diapers and products in the auto industry, has been restructuring to focus on higher-margin specialty products from commodities chemicals, which are more vulnerable to energy-price fluctuations.

Bloomberg News says the earnings are more than some analysts anticipated and come "amid increasing profit from caustic soda and plastics."

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
11:33 am
Thu January 6, 2011

Is Borders Group Inc. headed for bankruptcy?

Paying rent is just one of the problems for Borders Group.
flickr - brewbooks

Sales at Borders Book stores have been slipping for several years as more buyers go to places like Amazon.com to find their titles, and as more people move into the digital reader market. Last month, the company reported that its third quarter sales were down 17.6% from the same period a year ago.

So the company is struggling to find a way to pay its bills. One way it's trying to preserve cash is to suspend its payments to publishers.

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Economy
2:46 pm
Fri December 3, 2010

Legislature approves tax credits for Michigan "Aerotropolis"

The runways at Detroit Metro Airport. Willow Run Airport is nearby creating an opportunity for business incubation.
travelpod.com

The current lame-duck Michigan legislature passed a tax incentive package this morning to encourage the development of a Michigan Aerotropolis. 

So what is it? Here's how the Detroit Region Aerotropolis explains the idea:

An Aerotropolis is an emerging type of urban form comprised of aviation-intensive businesses and those businesses that need to be readily connected to their customers. These businesses, and related enterprises, extend outward from a major airport.

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Obit
10:45 am
Mon November 29, 2010

Grand Rapids philanthropist, businessman Peter Cook dies

Peter Cook
gvsu.edu/buildinglegacies Grand Valley State University

Peter Cook was born in Grand Rapids in 1914. He grew up relatively poor, enlisted in the army after graduating high school and worked for less than a dollar an hour on an assembly line. He went to college and studied business and became an accountant. He made his fortune selling imported cars beginning in the 70s.

Business
3:09 pm
Mon November 22, 2010

Grand Rapids bar owner wants to 'monetize' the Titanic

RMS Titanic at the docks
author unknown creative commons

Chris Knape has a piece in the Grand Rapids Press about hedge fund manager and bar owner, Mark Sellers.

Sellers moved back to Grand Rapids around three years ago where he owns the bars Hopcat, Stella’s Lounge and Viceroy.

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