Economy

Economy
4:18 pm
Thu June 7, 2012

Pfizer spinning off animal health division

About 750 Pfizer employees in Kalamazoo are going to have a new boss.

Pfizer announced today it's spinning its “animal health” division off into its own company.

The new company’s name will be Zoetis. An odd, though appropriate name for the company. The Z-O in Zoetis is supposed to stand for ZOO, or zoetic, which means "pertaining to life".

Pfizer’s animal health division is a major employer in Kalamazoo. Damien Conover expects that will stay the same under the new company. Conover is an analyst with Morningstar Financial.

“There’s probably going to be some consolidation with the new business,” says Conover,  “but for the most part I’m not anticipating a big shakeup of the business.”

Conover expects Zoetis will be worth more than eleven billion dollars. That would make it the largest stand-alone company focused on animal pharmaceuticals in the world.

Commentary
10:11 am
Thu June 7, 2012

Commentary: Blow to Mass Transit

Back in the days when the Big Three really were the BIG Three, Detroit may have been the most hostile place in the nation to mass transit. The city existed to create private transportation for all. You were expected to have your own wheels. Well, the world has changed, and estimates indicate that more than a third of Detroiters have no cars these days, and many more would like to take mass transit when they can -- especially downtown.

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Economy
3:50 pm
Tue June 5, 2012

Report: Michigan's food and beverage businesses are hiring

(courtesy of snakesayan.blogspot.com)

A new study says the “Help Wanted” sign is out at Michigan’s food and beverage businesses.

The National Restaurant Association predicts food and beverage businesses will hire nearly a half million summer workers this year, the highest since 1993.    The association says more than 20 thousand of those jobs will be in Michigan.

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Commentary
10:19 am
Mon June 4, 2012

Commentary: Two States of Michigan

I heard some interesting ideas about our economic future on Mackinac Island last week at the Detroit Regional Chamber of Commerce's annual conference of the state's movers and shakers. 

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Camp Take Notice
11:22 am
Fri June 1, 2012

Alternative housing for residents of tent city

Tent city in Ann Arbor, Michigan.

 Residents of a tent city near Ann Arbor could soon have more permanent housing arrangements.

The state's affordable housing agency is working to find places to live for the roughly five dozen people who live at "Camp Take Notice."

Sally Harrison is with the Michigan State Housing Development Authority (MSHDA). She says this effort is part of a broader initiative to end homelessness in Michigan by 2017.

"For some people who can get into apartments and housing immediately, we will do that immediately, because we have rental assistance available," says Harrison.

She says that for those campers who need more assistance to get housed, they will be relocated to hotels and shelter beds.

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Economy
4:57 pm
Tue May 29, 2012

Gov. Snyder urges Michigan businesspeople to hire veterans

Gov. Rick Snyder tours the Detroit auto show.
Rick Pluta Michigan Radio

Governor Rick Snyder today asked  businesspeople to make a special effort to hire veterans returning from overseas duty. It’s the topic of one of the sessions this week at the Detroit Regional Chamber’s annual Mackinac Island conference.  It’s attended by 1,500 of the state’s business and political leaders.

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.”

The governor recently returned from a trip to the Middle East to visit Michigan National Guard units. He’s made job training and connecting veterans to jobs a part of his workforce development initiative.

Economy
2:20 pm
Mon May 28, 2012

Michigan's economy showing signs of improvement, but there are "headwinds" coming

(Steve Carmody/Michigan Radio)

A Comerica Bank economist says Michigan's economy is making a comeback.   But clouds could be on the horizon.

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Economy
1:19 pm
Fri May 25, 2012

Poorest city in Michigan hosts Senior PGA Championship

Protestors gather in front of Benton Harbor city hall before a silent march.
Lindsey Smith Michigan Radio

The Senior PGA Championship is underway today in Benton Harbor.

The city is home to the Whirlpool Corporation, the largest appliance manufacturer in the world; and it's also the poorest city in Michigan. In 2010 the average household in Benton Harbor earned just $17,000 a year.

Whirlpool's plan to turn Benton Harbor into a tourist destination

Recently, a steady stream of tour busses and a fleet of silver Mercedes with the PGA logo cruised through town.

At times you could see people inside the cars point at boarded up buildings as they drove by.

The Harbor Shores golf course sits in sharp contrast to the city’s poverty. But near the golf course there are plans for condos, two luxury hotels (to be completed by 2014), and a marina.

Whirlpool executives came up with this concept in the 1980s. They wanted to turn more than three million square feet of old manufacturing space near the Lake Michigan shore into a destination for golfers.

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Economy
10:50 am
Fri May 25, 2012

Supporters of a tent city near Ann Arbor fear eviction

John Wagner (left) is a volunteer and supporter of Camp Take Notice. Alonzo Young is a camper. He's been attending classes at Washtenaw Community College.
Mercedes Mejia Michigan Radio

About 70 people took part in a rally to show support for a tent city near Ann Arbor.

It's called "Camp Take Notice," and it's been on state-owned land for more than two years. The 65 people who live there are worried their days there are numbered.

David Williams has been staying at the camp for a year. "If we lose this camp it would be difficult for me to find another safe environment to live. And I hope that people understand that. Anyone can be homeless. Homelessness is not prejudice," he said.

Organizers want a commitment from the state to allow people to continue living at the site. But one neighbor, who asked not to be named, said he'd like to see the camp gone.

"There have been reports of stolen property down there. You don't necessarily feel comfortable being outside or outside alone towards the evening. And like I said, they are not bad people, that's not the problem. It's the element that goes along with it," the neighbor said.

Jeff Cranson, a spokesperson for the Department of Transportation said the state has been working with the camp's organizers for a couple of years. He said there are no immediate eviction plans, but that the tent city is not safe and residents will need to relocate. Cranson said a fire broke out a few months ago and emergency crews had difficultly getting water to the site. 

He said another state agency is working to find alternative housing for the camp's residents.

Michigan Radio visited the camp in the fall of 2011.

Commentary
10:14 am
Thu May 24, 2012

Commentary: Budget Follies

There is something to be said for one party controlling both the executive and legislative branches of government. This year, for the second year in a row, the state budget will apparently be passed by the beginning of June. That’s a big change from a few years ago.

Twice during the Granholm years, the parties were still squabbling over the books when the fiscal year expired at the end of September. And bad last-minute choices were made.

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Economy
10:05 am
Thu May 24, 2012

Dow Chemical gets $2 billion award for canceled Kuwait project

Dow Chemical's headquarters in Midland.
wikimedia commons

Dow Chemical says an international court has awarded it $2.16 billion in damages from its dispute with Petrochemical Industries Co., a subsidiary of state-owned Kuwait Petroleum Corp.

Dow shares are up 4 percent in trading Thursday before the opening bell.

Midland, Mich.-based Dow, one of the world's largest chemical companies, formed a $17.4 billion joint venture with the Kuwaiti company in 2008 to produce plastics for consumer products, automotive parts and drug processing. But the deal was scrapped later that year by that country's government following lawmaker criticism that could have led to a political crisis in the small oil-rich state.

"This outcome brings resolution and closure to the issue," Andrew Liveris, Dow`s chairman and chief executive officer, said in a statement.  "We remain focused on continuing to move forward with our transformation and profitable business partnerships -- both in Kuwait and around the world."

Dow has Chemical Co. been doing business with Kuwait for nearly 40 years.

Economy
9:00 pm
Wed May 23, 2012

"Work share" program could help curb layoffs

Work share programs allow employees who see their hours cut collect partial unemployment benefits
Bytemarks flickr

Some Michigan workers who get their hours cut would be able to keep working and draw partial unemployment benefits, under a bill approved by the state Senate. The legislation would create what's called a "work share" program - similar to ones in about two dozen other states.

The idea is to avoid layoffs, and help maintain a skilled workforce.

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Farming
12:06 pm
Wed May 23, 2012

Financial help could be coming for Michigan's fruit farmers

Blooms on a cherry tree.
William Schmitt Flickr

Fruit growers and processors in Michigan might get some help in the form of low interest loans if an expected package of bills moves through the legislature.

The loans are aimed at providing relief to those who lost most of their fruit crops after an unusual spring warm spell was followed by extended freezing temperatures.

MLive reports Michigan Department of Agriculture Director Keith Creagh said today the bills would create "five-year low interest loans":

The loans, which will be administered by banks and agricultural lenders, will meet an estimated total economic need of some $300 million in the state’s fruit growing and processing industry, Creagh said while attending the Michigan Food Processing and Agribusiness Summit.

Securing the loan guarantees at a low interest rate of 1 percent or 2 percent could cost the state about $15 million, Creagh said. The 5-year loans would be structured so borrowers would only pay interest in the first two years, he said.

Creagh says he'll also seek federal financial support for Michigan fruit growers and processors.

Economy
1:23 pm
Tue May 22, 2012

Report: Michiganders will use less gasoline and electricity this summer

Will you be filling up as often this summer?
(Steve Carmody/Michigan Radio)

Michiganders will use less gasoline and electricity this summer, that's according to the Michigan Public Service Commission.

The state utility regulatory agency issued its annual Summer Energy Appraisal today.

Judy Palnau is the agency’s spokeswoman. She says there are a couple reasons why the public service commission expects gasoline sales will decline about 2 percent this summer in Michigan.

“Part of that is a economy. But part of that is we are also driving more energy efficient vehicles,” says Palnau. 

Palnau says the economy is also a reason why they expect electricity use will dip slightly this summer.

“Our sluggish economy is still a factor in decreasing use of electricity,” says Palnau, though the MPSC expects residential electric use will increase. 

The MPSC study also predicts natural gas sales will decline nearly 5 percent this summer. A mild winter drove down demand among both business and residential natural gas customers.

Economy
12:57 pm
Tue May 22, 2012

Benton Harbor hosts 2012 Senior PGA Championship

Professional golfers practice at Harbor Shores golf course in Benton Harbor.
Lindsey Smith Michigan Radio

The Senior PGA tournament for professional golfers is in Benton Harbor this week.

Famous golfers began practicing on the course Monday afternoon. Harbor Shore golf course was partially built on city owned land. Elected city leaders agreed to lease the property with the hope of attracting jobs and tourists to the region.

Herb Caldwell is Vice President of the Consortium for Community Development. The non-profit group tries to improve the community’s workforce skills. He says the group has helped more than 260 people get temporary jobs for the tour.

But Caldwell says the tournament is also bringing a sense of excitement and pride to its residents.

“People will walk away from this – not only the people internally who live here – with a different perspective on their community but the people who will visit here will now have a different picture of Benton Harbor,” Caldwell said.

But not everyone is pleased.

Benton Harbor is the poorest city in Michigan with an average household income of $17,000 a year. The city government is under the control of an emergency manager.

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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.

Economy
9:06 am
Thu May 17, 2012

Banks turn to "short sales" in Michigan as home foreclosure rates continue to decline in April

The number of foreclosure filings dropped 28 percent in April compared to a year ago.

Daren Bloomquist with Realty Trac said a big reason for the decline of homes being repossessed is that banks are turning more and more to "short sales."  A short sale is where a mortgage lender allows a property to be sold for less than the amount owed on a mortgage and takes a loss.

“Based on other data we’re looking at that’s a trend that’s going to continue this year. Short sales are going to become a much more attractive alternative to more lenders," said Bloomquist.

The nation’s five largest mortgage lenders Ally Bank, Citibank, Bank of America, Wells Fargo and JP Morgan Chase have significantly stepped up their use of  "short sales."

Earlier this year the five mortgage lenders agreed to pay $25 billion as part of a national settlement of claims of abuse in the mortgage and foreclosure process.

Michigan is getting about $800 million from the settlement.

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
4:35 pm
Wed May 16, 2012

Michigan court district ranks No. 1 in lawsuits filed against student loan defaulters

wikimedia commons

Federal data show that a federal court district in Michigan ranks number one in the country for the number of federal lawsuits filed against individuals who default on their student loans.

Relative to population size, defaulters in the Eastern District of Michigan (Detroit) were prosecuted at a rate about 10 times the national average during March 2012.

The Central District of California (Los Angeles) came in second, and the Northern District of New York came in third.

Out of the 279 suits filed in March, 57 were filed in the Eastern District of Michigan, 140 in the Central District of California and 13 in the Northern District of New York.

The report, published by the Transactional Records Access Clearinghouse (TRAC) at Syracuse University, compared the total number of civil filings per month since March 2007. The number remained relatively stable (between 200 and 250) until Spring 2009, when it dipped slightly, bottoming out at 168 in December of that year.

The number then rose substantially to 598 in April 2011 before declining again towards the early 2009 average.   

The Eastern District of Michigan’s leadership in per capita student debt lawsuits is nothing new. The court topped the ranks five years ago and came in second last year, according to the TRAC report.

The Institute for College Access & Success, a non-profit research and policy organization, reported that 60 percent of 2010 Michigan graduates carried student debt, owing an average of $25,675 — the 11th highest average in the nation.

- Suzanne Jacobs, Michigan Radio Newsroom

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.

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