Business

Politics
10:44 am
Fri January 20, 2012

Governor Snyder gives State of the State, business edition

Michigan Governor Rick Snyder.
Rick Snyder for Michigan Facebook

DETROIT (AP) - Gov. Rick Snyder is offering a business-focused version of his State of the State address to a commerce-friendly crowd.

The Republican told business leaders Friday at a Detroit Regional Chamber-hosted event that the state made great progress last year. He says more must be done to fix transportation and more should be invested in fixing roads and bridges.

His remarks come two days after his State of the State speech.

The former businessman has praised business for helping improve Michigan's economy last year by adding 80,000 jobs. That helped push the unemployment rate to about 2 percentage points lower than when he took office last year.

He says the cost of doing business has been lowered, encouraging businesses. Democratic lawmakers say businesses have been helped at the workers' expense.

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Arts/Culture
12:05 pm
Thu January 12, 2012

Artpod: Work, reimagined

user ronnieb morgueFile

Today's Artpod is all about work...or rather, re-imagining what work can be.

Many people view Michigan as ground zero when it comes to job loss and unemployment. Yet despite the tough economy, some people are quitting their jobs in an effort to pursue their creative passions, which are often unpaid.

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Indictment
1:56 pm
Wed September 28, 2011

Three corporate executives indicted in compressor price-fixing case

A refrigerator compressor. The thing that makes your refrigerator cold. Three executives have been indicted by a Detroit federal grand jury on charges of conspiring to fix the price of compressors.
Dave Matos Flickr

The U.S. Department of Justice announced that a federal grand jury in Detroit has indicted three former executives from a Whirlpool Corporation subsidiary, a Panasonic Corporation, and a Tecumseh Products Company subsidiary for conspiring to fix prices on refrigerant compressors.

The compressors are used in refrigerators and freezers.

From the DOJ's press release:

The indictment, returned today in U.S. District Court in Detroit, charges Ernesto Heinzelmann, former president and chief executive officer of Empresa Brasileira de Compressores S.A. (Embraco), a division of Whirlpool S.A.; Gerson Veríssimo, former president of Tecumseh do Brasil Ltda., a subsidiary of Tecumseh Products Company; and Naoki Adachi, general manager of global sales & SE group, refrigeration devices division at Panasonic Corporation, with conspiring to suppress and eliminate competition by coordinating price increases for refrigerant compressors to customers in the United States and elsewhere.

Sharis A. Pozen, Acting Assistant Attorney General from the DOJ's Antitrust Division said:

“Cracking down on international price fixing cartels has been and will continue to be among the most significant priorities for the Antitrust Division. Our investigation into the refrigerant compressors industry has already resulted in two companies – Panasonic and Embraco North America – pleading guilty and paying a total of $140.9 million in criminal fines. Our investigation is continuing.”

The three are being charged for price fixing under the Sherman Act. The maximum penalty they each face is 10 years in prison and a $1 million fine.

The DOJ reports that their investigation led to guilty pleas in 2010 from Panasonic and Embraco North America Inc:

On Nov. 15, 2010, Panasonic Corporation pleaded guilty and was sentenced to pay a $49.1 million criminal fine, and on Dec.16, 2010, Embraco North America Inc. pleaded guilty and was sentenced to pay a $91.8 million criminal fine.

Investigative
6:00 am
Mon September 19, 2011

A city 'reinventing' itself with less money from the state

The Michigan legislature and the governor are working to make Michigan a more business-friendly state by changing the tax structure.  But, while businesses are benefiting from already passed tax reductions --and anticipate more--  the change is costing communities. 

I went to one city to see how it was handling those changes.

When I visited, it was a beautiful day in downtown Monroe.  The city is situated on the River Raisin in the southeast corner of the state, right on Lake Erie.  It’s just 19 miles north of Toledo, Ohio.

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Investigative
6:00 am
Mon September 12, 2011

Another tax break for Michigan businesses?

Large corporations such as automakers and their suppliers say they need tax relief at the state level.
Lester Graham Michigan Radio

Michigan lawmakers are considering eliminating the Personal Property Tax.  That’s a tax businesses pay on equipment.  The money goes directly to local units of government.  Businesses say it’s a complicated tax that punishes them for investing in equipment.  Cities, townships, counties and schools say if the tax is eliminated, that revenue has to be replaced. 

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Business
2:10 pm
Thu September 1, 2011

Stores in Michigan no longer need individual price tags as of today

No more individual price tags in Michigan stores as of today.
user walmart stores Flickr

Governor Snyder called for it last January during his first State of the State address, the law passed the legislature, and now it's in effect.

Individual price tags on each item are no longer in Michigan stores as of today.

From the Associated Press:

For the first time in decades, price tags no longer are required on most retail items in Michigan stores.

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Economy
1:01 am
Thu August 25, 2011

Michigan retailers turning more optimistic

(photo by Steve Carmody/Michigan Radio)

A new survey finds Michigan retailers are growing more optimistic that they will see their sales improve over the next three months.    

Tom Scott is with the Michigan Retailers Association.   He says the survey’s results are the most optimistic state retailers have been about the economy since the end of last year.

 "I think we’re scratching our heads a little bit over why there’s so much optimism out there…given the mixed economic news we’ve been getting. "

Politics
10:56 am
Wed August 24, 2011

Governor Snyder, Going to China

The other day, Gov. Rick Snyder’s office announced he would be going to China next month. Actually, he will be going to both China and Japan, on a whirlwind, week-long trip that will begin with his attending a trade association meeting in Tokyo.

This will be a high-powered trip. Along with him, the governor will be taking Mike Finney, the director of the Michigan Economic Development Corporation, known as MEDC; the state agriculture director, and four other economic development officials.

The reason for the trip, the governor’s communications director said, was to talk about why investment in Michigan is a good idea, and also to promote our state’s farm products.

Politicians often get criticized for taking junkets abroad -- sometimes rightly so. But not only is this trip a good idea, it is terribly necessary and way overdue.  In Toledo, just to our south, Chinese businessmen have spent millions to buy land along the Maumee riverfront, which they plan to develop for a variety of uses.

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Economy
1:52 pm
Sun August 21, 2011

Using "Pure Michigan" campaign to rebrand the state's business climate

MEDC President Michael Finney (left) listens as Michigan Gov. Rick Snyder talks to reporters at the Michigan International Speedway prior to the start of the Pure Michigan 400
(photo by Steve Carmody/Michigan Radio)

The “Pure Michigan” tourism campaign targeted a new audience over the weekend….NASCAR fans.   The state tourism marketing campaign sponsored the nationally televised “Pure Michigan 400” race on Sunday at Michigan International Speedway.   It's part of the state’s 25 million dollar tourism promotion budget.  

Michael Finney is the President the Michigan Economic Development Corporation.  He says the NASCAR sponsorship is part of an evolution of the marketing campaign.  

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Changing Gears
11:26 am
Fri July 29, 2011

Road Trip: Orrville, more than a company town (Part 5)

John Schmid vice president of Smith Dairy in Orrville, OH. The family adopted the business name Smith before World War I—a time when the German-sounding Schmid was not an asset.
Dan Bobkoff Changing Gears

Our Changing Gears team has been on the road this week traveling to some of our company towns in the Midwest.

Changing Gears is a Michigan Radio project looking at the economic transformation of the industrial Midwest.

Our final stop is Orrville, Ohio: A place that seems like a company town, but there’s long been a whole lot more going on in Orrville.

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Changing Gears
10:16 am
Thu July 28, 2011

Road Trip: Norwalk saves its company (Part 4)

Saving Norwalk Furniture means about 150 locals have jobs again.
Dan Bobkoff Changing Gears

When a company bears the name of its hometown, it can be hard to separate the two. Such is the case with Norwalk Furniture and the town of Norwalk in Northern Ohio. Sue Lesch is the town’s mayor.

“It really is our flagship company,” said Sue Lesch, Norwalk’s mayor. “It’s the company we’re proud of. We’re known for furniture all over the country.”

For more than a hundred years, Norwalk Furniture made custom-order sofas and chairs in its Ohio factory. For a long time, it was the biggest business in town, employing about 700 in this town of 17,000.

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Economy
12:21 pm
Tue July 26, 2011

Michigan businesses to receive boost from new public-private program

Governor Rick Snyder is expected to announce details of a public-private grant program aimed at small to medium sized businesses.
Russ Climie Tiberius Images

UPDATE 4:30 p.m.

One hundred thirty million will be available to Michigan businesses as part of a new grant program. The money is the first of the Small Business Association’s Impact Investment Initiative. The goal is to help grow and create jobs through public-private partnerships. The InvestMichigan! fund is a partnership between the SBA, Dow Chemical Company and state funds.

Karen Mills is with the SBA. She says Michigan was the perfect place to start the program.

“Michigan has great assets. It has one of the highest engineers per capita for any state. It has a well-trained workforce, it has great universities and it has extraordinary entrepreneurs,” Mills said.

The program will distribute 1-point-5-billion-dollars to businesses nationwide throughout the next five years.

- Amelia Carpenter - Michigan Radio Newsroom

ORIGINAL POST: 12:21 p.m.

Details on a public-private grant program aimed at helping small to medium sized businesses in Michigan will be announced during a press call at 1 p.m. today.

Governor Snyder will discuss the new program along with Karen Mills of the U.S. Small Business Administration, Andrew Liveris, Chairman and CEO of Dow Chemical Company, State Treasurer Andy Dillon, and Kelly Williams of Credit Suisse's Customized Fund Investment Group.

Andrew Dodson of Booth Mid-Michigan reports that Dow Chemical's investment in the program is expected to facilitate investment from the federal and state government:

According to a source close to the information, the program's impact will be "quite substantial." Dow Chemical is expected to provide funds and help facilitate bringing federal and state funds to bear upon local markets."It's meant for businesses who need financing, but can't get loans or financing right now," the source said.InvestMichigan! is a group with a series of funds focused on growing the next generation of Michigan companies, according to its website, and is one of the partners involved in today's announcement. It's federal counterpart, ImpactAmerica, is also involved.

Amelia Carpenter in the Michigan Radio Newsroom will be on the call and will have more for us later.

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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