economy

Investigative
6:00 am
Thu August 25, 2011

Collapse of salmon in Lake Huron (Part 3)

C. J. Baker operates a salmon fishing charter boat for Puddle Jumpers Charters. He moved his boat from Lake Huron to Lake Michigan after the salmon fishing collapsed in Lake Huron.
Lester Graham Michigan Radio

Part 3 of 3 part series -

Salmon fishing has meant a lot of tourism dollars for cities along the coasts.  But, changes in Lake Huron have caused a collapse of salmon.  But, what if other Great Lakes lose their salmon?

Fishing for salmon on some parts of Lake Huron is still a big deal.

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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. "

Environment and Economy
4:48 pm
Wed August 24, 2011

EPA wants to hire unemployed for Great Lakes clean-up

There are 30 pollution hotspots or "areas of concern" on the U.S. side of the Great Lakes (four of the "areas of concern" are shared with Canada). A new EPA project aimed at employing workers could lead to clean up in some of these areas.
U.S.E.P.A.

The U.S. has suffered from a bad economy for the last three years.

Parts of the Great Lakes have suffered from bad pollution problems for the last several decades.

Now, the U.S. Environmental Protection Agency wants to use money from the Great Lakes Restoration Initiative (GLRI) to put people to work cleaning up pollution in the region.

From an EPA press release:

The U.S. Environmental Protection Agency today announced that the Great Lakes Restoration Initiative is setting aside approximately $6 million for federal agencies to sign up unemployed workers to implement restoration projects in federally-protected areas, on tribal lands and in Areas of Concern in the Great Lakes basin. EPA will fund individual projects up to $1 million. To qualify for funding, each proposed project must provide jobs for at least 20 unemployed people.

“These projects will help to restore the Great Lakes and put Americans back to work," said EPA Great Lakes National Program Manager and Regional Administrator Susan Hedman. "In a sense, we will be using these funds to create a small-scale 21st century Civilian Conservation Corps."

The AP reports that Congress has appropriated $775 million over the past two years for the GLRI.

One of the GLRI's main goals is to clean up toxic hot spots known as "Areas of Concern" around the Great Lakes.

These Areas of Concern have been identified for decades, but clean-up efforts have stalled as funding for clean-up has been scarce.

EPA officials say they will award funding for these new clean-up projects by the end of September.

Economy
4:09 pm
Wed August 24, 2011

Detroit might close six libraries

The Richard Branch of the Detroit Public Library system. It's one of six being proposed for closure.
Detroit Public Libraries

As Michigan Radio's Sarah Cwiek reported last February, "libraries face a tough paradox.  People tend to use them more when the economy is bad. But a bad economy also means they get fewer resources to work with."

Cwiek was reporting on the Detroit public library system which at the time was facing a $17 million budget shortfall.

This past spring, the city proposed closing 18 libraries, but then backed away from that proposal.

Staffing cuts were made, and now, according to the Detroit News, the city is proposing to close six of its 23 libraries because the "layoffs of about 40 staffers in spring hurt service and forced some branches to temporarily close on some days."

The News visited one library slated for closure and talked to people there:

Erin Carter...searches for jobs using computers at the Chase branch in northwest Detroit that is recommended for closure.

"There is so much stuff closing down," said Carter, 22. "I don't know where to go."

The small library at Seven Mile and Southfield Freeway was packed Tuesday afternoon and every computer was in use. Fifteen-year-old Brandon Thomas and his neighbor, 12-year-old Kalan Lewis, rode their bikes to the library for the first time Wednesday to pick up some books and look for the Civil War movie, "Glory."

"They shouldn't close it," Kalan said. "It's for kids. We need to be able to learn what we don't learn in school."

The libraries on the list for potential closure:

Politics
3:33 pm
Wed August 24, 2011

Michigan Legislature approves new welfare limits

LANSING, Mich. (AP) - Residents involved in roughly 12,500 welfare cases in Michigan could lose benefits under a stricter, four-year lifetime limit that has received final approval in the Michigan Legislature.

The Republican-led House passed the legislation with 73-34 votes Wednesday mostly along party lines.

The measures will go to Gov. Rick Snyder.

The welfare limit already has been approved as part of the state budget that kicks in Oct. 1. Lawmakers plan to put the cap in a separate state statute to help implement the budget plan. The state's current four-year limit on welfare benefits would expire Sept. 30 unless the Legislature revises or extends the limitations.

The revised welfare limits have fewer exemptions than the four-year limit now in state law.

Changing Gears
11:32 am
Wed August 24, 2011

Foreclosures decline, while foreclosure businesses thrive

Frank Oliver clears out a foreclosed home in Roseville, Michigan.
Kate Davidson Changing Gears

Foreclosure activity dropped by more than a third this past year, according to the group RealtyTrac. But despite the national slowdown, regional companies that take care of foreclosed homes are still thriving. Their job is to keep empty houses clean and safe from the forces that depress local property values: squatters, thieves and decay.

Dawn Hammontree probably never expected to see their work firsthand.

The first part of Hammontree’s story is familiar in Michigan. Her unemployment ran out in December.

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Investigative
7:17 am
Wed August 24, 2011

Big returns for subsidized fish (Part 2)

U.S. Fish and Wildlife fish hatchery in Brimley, MI on Lake Superior. The trailers are 'mass marking trailers,' used to tag every hatchery fish introduced into the Great Lakes.
Lester Graham Michigan Radio

Part 2 of a 3 part series -

Fishing in the Great Lakes would not be what it is today without stocking Pacific salmon in the lakes.  But it costs a lot of money.  Michigan fisheries managers say it’s worth every dime.  In the second report of the series 'The Collapse of the Salmon Economy," we look at the economic benefits of subsidizing salmon fishing in the Great Lakes.

In the 1960s, the state of Michigan first put salmon into the Great Lakes.  It was a gamble to create world-class recreational fishing. 

Michigan spends about $8-million a year stocking salmon and other types of fish.  But the Department of Natural Resources doesn’t really know how many fish we’re catching for those millions of dollars.

Gary Whelan is in charge of the Michigan Department of Natural Resources fish hatcheries. 

“I wouldn’t say we have no idea.  I think we have a ballpark.  We don’t have a great estimate.  We would like to have a lot better estimates than we have now.  I would absolutely agree with that.”

A Michigan Watch analysis found the cost for each fish caught in Michigan waters ranges from a couple of dollars to $150 per fish caught, depending on species and depending on year.  We use catch estimates used by some other Great Lakes states.

The Michigan DNR’s Gary Whelan questions those estimates and our calculations.

And… he says besides, we’re looking at it all wrong.  It’s not about the cost per hatchery-raised fish caught; it’s about what those salmon mean to Michigan’s economy. 

“You have lots of people, for example, who are catch-and-release fishermen who will never take fish home.  But, they’re spending a lot of money to go fishing for this fish or the opportunity to fish for them.”

And stocking Pacific salmon does attract anglers from all over.

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Investigative
7:51 am
Tue August 23, 2011

Collapse of the salmon economy (Part 1)

Headed out to go salmon fishing on Lake Michigan near Grand Haven.
Lester Graham Michigan Radio

To understand why salmon are so important to the Great Lakes and the Michigan economy, you first have to understand some history.

It used to be the lake trout was the fish to catch.  It was big.  It was tasty.  But, by the late 1950s, that fish and others had been severely over-fished.  And, an eel-like, blood-sucking parasite called the sea lamprey further reduced lake trout numbers.

Those weren’t even the worst problems for lake trout.  A fish called the alewife invaded the Great Lakes through manmade canals.  Lake trout starting feeding on alewives.  But  alewives caused a thiamine deficiency in lake trout.  A lack of vitamin B-1.

Mark Gaden is with the Great Lakes Fishery Commission

“The thiamine deficiency that the alewives cause is one of the top reasons why natural reproduction has been very slow to occur over the decades in the Great Lakes of these species.”

Catching a lake trout became rare.

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Economy
6:39 am
Tue August 23, 2011

Report: Traffic crashes add up to $4.8 billion a year in economic costs

ChazWags Flickr

A new State Police report says traffic crashes in Michigan carry a price tag of $4.8 billion dollars a year. The report says the cost of traffic crashes in Michigan exceeds the cost of crimes.

Researchers used data from 2009, when the human toll of traffic crashes was 937 deaths and more than 70,000 injuries. They put the economic damage for those crashes at $4.8 billion dollars. That includes the cost of medical care, property damage, and lost earnings, among other things.

The institute also used data on jury awards to put a value on pain and suffering caused by traffic crashes, which put the number over $9 billion dollars. The study compared the dollar loss from crashes to the cost of violent and property crimes that are tracked by the state, and found the costs of crime are dwarfed by the costs of traffic crashes.

The report was commissioned by the state Office of Highway Safety Planning and was conducted by the University of Michigan Transportation Research Institute.

Economy
11:10 am
Fri August 19, 2011

Group seeks to create Detroit Jewish neighborhood

The Ellington Lofts in Midtown Detroit. The AP reports a rent program is aimed at bringing young Jewish professionals back to Detroit's Midtown area or to the downtown area.
user dig downtown detroit Flickr

DETROIT (AP) - A group of young Jewish professionals attracted to the vitality of Detroit's evolving downtown wants to bring others into the city decades after their parents and grandparents left.

CommunityNEXT Director Jordan Wolfe says the 25 people targeted through a rent program would help return Jewish culture to Detroit and contribute to the city's revitalization.

Subsidies of $250 per month for a year will be offered. Wolfe says he is seeking to bring in people "who get a kick out of building a community."

The rent program piggybacks offers major corporations and businesses are making to entice their employees to relocate downtown or to Detroit's growing Midtown area.

A dodgeball tournament fundraiser is scheduled for Saturday in Detroit and will be followed Sunday by a kickball tournament in Los Angeles.

Economy
6:19 am
Fri August 19, 2011

Ag business strained finding good crop of employees

Hamilton Farm Bureau Chief Operating Officer Wade Blowers says he hopes to recruit sales people that will make investing in more storage and processing capacity at his co-op worthwhile.
Rick Pluta Michigan Public Radio

Originally published on Fri August 19, 2011 12:01 am

Last of a five-part series

In Michigan, one in 10 people who want work can't find a job, and that number doubles if you include people who are underemployed or who have just given up on their job search.

But despite high unemployment, some employers are still finding that the search for talent can be a challenge.

At the Hamilton Farm Bureau cooperative in southwest Michigan, a 50-ton truck is taking in a load of grain that will go to feed cattle.

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Economy
1:38 pm
Mon August 8, 2011

President Obama will make a statement on the downgrading of US credit

user: Beverly & Pack flicker.com

The White House has announced President Obama will make a statement shortly. We expect the president to address the downgrading of US credit. Click the "listen live" button above, to stream special coverage from NPR. 

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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Detroit
11:11 am
Thu July 28, 2011

Detroit Works Project, Mayor Bing's Plan to improve the city

Nobody can dispute that Detroit doesn’t work very well anymore. There is vast poverty, unemployment, and blight. Plus a litany of other problems, most of which are well-known.

The question is, what do we do about them? What can anyone do about them? Within the last few years, the city has also been forced to face another unpleasant truth. There are too few people.

Too few, that is, for a city of Detroit’s physical size. You could tuck Manhattan and Boston within its borders and still have room left over. Once, Detroit was a bustling city of nearly two million people.

They weren’t packed together like sardines, but were spread out, largely in well-maintained single-family homes. That was sixty years ago, and pretty much everything is different now.

The census showed that there are barely seven hundred thousand people left. In some cases, one of two families remain on blocks otherwise filled with vacant or burned-down homes. There began to be talk about “shrinking” or “consolidating” the city.

People talked about ways to get people to move from the worst areas to more hopeful neighborhoods, to make it easier to provide city services. The mayor announced that his team would identify four to ten stable neighborhoods as part of a project he called “Detroit Works,” and then build up and further strengthen them.

This all made good, sound logical sense.

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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
6:53 am
Thu July 28, 2011

Rating agency moves state’s economic outlook from ‘stable’ to ‘positive’

In the midst of a heated debate in Washington D.C. over the U.S. debt limit and with the country facing a possible credit downgrade, Michigan’s economy is getting a pat on the back. Fitch Ratings has revised its outlook for Michigan bonds from ‘stable’ to ‘positive,’ the Associated Press reports. From the AP:

The New York ratings agency left the state's overall bond rating unchanged Wednesday at AA-, an investment-grade rating that's three steps below the top AAA rating.

Gov. Rick Snyder met with analysts at Fitch, Moody's and Standard and Poor's on June 13 to discuss the state's growing economy and how the 2011-12 budget eliminates ongoing deficits without one-time fixes.

Fitch took note of the budgeting changes. It says its positive outlook also reflects efforts to put away more in the state's rainy day fund and "grow reserve levels."

The state lost its top AAA bond rating from Standard and Poor's in 2003.

As the Detroit News reports, on Tuesday Governor Snyder told reporters that, "Lawmakers in Washington should look to Michigan 'as a good role model for success' as they try to resolve a battle over raising the national debt ceiling that is approaching a crisis."

Economy
1:50 pm
Wed July 27, 2011

Delta profit falls, 2,000 taking buyouts

Delta Airlines is cutting back.
Andrey Belenko Flickr

Delta Air Lines says some 2,000 workers have taken voluntary buyouts. In a cost-cutting move in response to high fuel prices, it will scale back its flight schedule more than planned this year.

The high cost of jet fuel was the main reason Delta's second-quarter net income fell by 58 percent compared to a year ago. It earned $198 million, or 23 cents per share. Fuel costs were up 36 percent.

At the same time, revenue rose 12 percent as Delta raised fares to try to pay the increased fuel costs.

Delta would have earned 43 cents per share if not for one-time items including severance costs and reducing its facilities. On that basis, profit was below forecasts.

Economy
1:10 pm
Tue July 26, 2011

List of Post Offices in Michigan being studied for closure

The USPS says customer habits have made it clear that they no longer require a physical post office.
DeWitt Clinton Flickr

UPDATE  1:45pm

The leader of thousands of rural mail employees says she’s worried about a U.S. Post Office proposal that could close many small town post offices.  The national postal officials say they need to make cuts to reduce red ink.  The postal service lost eight billion dollars last year.  

Cindy Opalek is the president of the Michigan Rural Letter Carriers Association.   She says closing small town post offices will hurt rural communities. 

“The people who work there get a little more connected…a little more bonded with the people that they serve.   That will be a shame if they lose that.    Does the (U.S.) Post Office care?   I couldn’t tell you." 

ORIGINAL POST: 1:05pm

The U.S. Postal Service has released a list of 62 Post Offices in Michigan that they're studying for closure.

The potential closures could affect smaller cities like Kingsford, Baron City, and North Star. And they could also affect bigger cities like Grand Rapids, Detroit, and Lansing.

In a statement, Postmaster General Patrick Donahue said closed offices could be replaced by "expanded access locations" - similar to how some pharmacies are now located in your grocery store:

“Today, more than 35 percent of the Postal Service’s retail revenue comes from expanded access locations such as grocery stores, drug stores, office supply stores, retail chains, self-service kiosks, ATMs and usps.com, open 24/7. Our customer’s habits have made it clear that they no longer require a physical post office to conduct most of their postal business.”

The U.S. Postal Service currently operates 32,000 retail offices (the largest retail network in the country). It's studying the potential closure of 3,700 offices.

The USPS suffered $8.5 billion in losses in 2010.

Is your city on this list? How would you feel if your local post office was closed?

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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.

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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