economy

Medicine
10:16 am
Mon July 25, 2011

UM Flint secures $2.1 million for nursing programs

UM Flint gets federal funding for nursing programs.
user meddygarnet Flickr

UM Flint received around $2.1 million in grants from the U.S. Department of Health and Human Services for nursing programs geared toward minority groups.

The university highlighted three programs that will receive funding.

  1. $1.2 million will go to a program call UM-FIND (UM-Flint Initiatives for Nursing Diversity) to continue its work aimed at "increase nursing education opportunities for students from disadvantaged backgrounds." The grant provides funding to the program for the next three years.
  2. $700,000 will go to UM-FISCUP (UM-Flint Initiative to Strengthen Care to Underserved Populations). The program educates graduate nursing students about poverty and health care disparities among medically underserved populations. "It will allow an increase in student clinical placements with underserved populations and in the number of minority nurse practitioners, and that will lead to improvements in the by and large health of Flint and Genesee County residents."
     
  3. $221,000 will be used for scholarships for disadvantaged student scholarships and $32,000  will be used for graduate student stipends for Nurse Practitioner and Nurse Anesthesia students.
Offbeat
1:28 pm
Fri July 22, 2011

Local lemonade stand goes for "Michigan Radio Bump"

Local lemonade stand kicks its marketing machine into high gear.
Jennifer Guerra Michigan Radio

As Michigan Radio's Jennifer Guerra reported yesterday, even lemonade stands are not immune to the down economy.

Guerra talked with Molly and Lucy Prochaska who have been in the lemonade business for five years.

They described how they stopped getting "lots of money" once the economy took a dive.

But the pair is not giving up. Especially with a competitor setting up nearby.

As you can see in the photo above, the lemonade duo is working to capitalize on their public radio appearance.

It's too early to tell whether the "Michigan Radio Bump" will pay off, but don't count these kids out.

Economy
11:04 am
Fri July 22, 2011

Borders says goodbye after 40 years

A going out of business sale at a Borders bookstore in Washington D.C.
Martin Kalfatovic Flickr

CEO Mike Edwards sent a goodbye note to customers today as going out of business sales start at Borders Book stores across the country.

In his note, Edwards explained why the company couldn't keep their doors open:

We had worked very hard toward a different outcome. The fact is that Borders has been facing headwinds for quite some time, including a rapidly changing book industry, the eReader revolution, and a turbulent economy. We put up a great fight, but regrettably, in the end, we weren't able to overcome these external forces.

Over the last decade, the company made many missteps that led to its demise. One of the most notable was the company's failure to invest early in online book sales. Analysts say other problems included being overextended in real estate holdings for the bookstores, and a lack of leadership.

The shuttering of the company means 10,700 will be out of a job. 400 here in Ann Arbor will lose their jobs at Borders Headquarters (a place that once had 1,800 workers).

We asked our Facebook friends what they will miss when the Borders bookstores are gone.

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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.

Auto/Economy
3:20 pm
Thu July 21, 2011

U.S. government ends Chrysler investment; Fiat takes over

The U.S. government is no longer invested in Chrysler.
Ricardo Giaviti Flickr

WASHINGTON (AP) - The Treasury Department says it has ended its investment in Chrysler LLC after Italian automaker Fiat SpA purchased the U.S. government's remaining holdings in the auto company.

Fiat paid $560 million to the Treasury Department for the government's 98,000 shares. Fiat has run the company since it emerged from bankruptcy protection in June 2009.

Treasury provided a total of $12.5 billion to Chrysler and its financing arm after the recession hampered auto sales and sent Chrysler and General Motors to the brink of collapse. The funds came from the government's $700 billion bank bailout fund.

Since then, $11.2 billion of the assistance has been repaid, Treasury says. Chrysler repaid $5.1 billion in loans from the government in May. Treasury said it likely won't recover the remaining $1.3 billion.

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.

Changing Gears
9:28 am
Thu July 21, 2011

Growing the region's clean economy

Algal Scientific's demo project at an Ohio landfill.
Photo courtesy of Geoff Horst

The clean economy is touted as a future economic driver of the region. But a new report shows that while Ohio and Illinois have added jobs to the clean economy, Michigan is the only state to have lost them. Changing Gears visited one scientist in Plymouth, Mich., who’s trying to nudge that number back up.

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Politics
2:07 pm
Tue July 19, 2011

Polls say voters optimistic about economy, negative about some politicians

The Lansing-based polling firm, EPIC-MRA, released a couple of polls today. 600 "likely Michigan voters" responded for each one (margin of error is +/- 4%)

One poll indicates that more voters are optimistic about the economy. From the Associated Press:

40%...  say the state economy has bottomed out and is starting to improve, while a third say it has
bottomed out but isn't getting any better...

In May 2010, when Michigan's jobless rate was 2.5 percentage points higher than now, only 35% said the economy was starting to improve.

The other polls show Senator Debbie Stabenow's (D-MI) and Governor Rick Snyder's (R-MI) negative job ratings.

57% gave Governor Snyder a negative job rating.

51% gave Senator Stabenow a negative job rating.

From the Associated Press:

The poll released Tuesday says 38 percent gave the Democrat a positive job rating and 11 percent were undecided...

Stabenow's favorability rating was at 47 percent. Her unfavorable rating was 35 percent and 17 percent were undecided.

Senator Stabenow faces re-election in 2012. So far, the candidates who have lined up for the Republican nomination to challenge her are:

  • John McCulloch - Oakland County Water Resources Commissioner
  • Randy Hekman - Former West Michigan judge Randy Hekman
  • Peter Konetchy - northern Michigan businessman
  • Chad Dewey - a businessman who is a "self-described constitutional conservative."

Former Former Republican Congressman and gubernatorial candidate, Pete Hoekstra, is reconsidering his decision not to run against Senator Stabenow.

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Economy
12:47 pm
Tue July 19, 2011

AP analysis: Economic stress rises in Midwest

WASHINGTON (AP) - Counties in the Midwest and South that have a high number of autoworkers have seen a jump in economic stress levels, according to an Associated Press monthly analysis.

But Midwestern states also have seen the largest decreases in economic stress since the recession ended. That's primarily because of growth in manufacturing. Ohio has added 7,600 factory jobs in the past year.

The AP's Stress index calculates a score from 1 to 100 based on unemployment, foreclosure and bankruptcy rates. A higher score signifies more economic stress.

Under a rough rule of thumb, a county is considered stressed when its score exceeds 11. By that standard, about a quarter of the nation's 3,141 counties were stressed in May, roughly the same as in April.

Economy
12:16 pm
Mon July 18, 2011

Michigan's Best campaign expands

Scott Schopieray Flickr

Some grocery store shelves are being filled with more Michigan-made products. Grand Rapids based Spartan Stores recently expanded its Michigan’s Best program by stocking more Michigan products in more stores. Spartan Stores started the Michigan’s Best campaign in 2009 to stimulate local businesses and farms. Alan Hartline is an executive at Spartan Stores. He says the campaign is great for Michigan.

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Politics
5:47 pm
Thu July 14, 2011

Michigan politics: debt ceiling talks and the federal budget

United States Capitol
whitehouse.gov

Negotiations over the debt ceiling and federal budget continue in Washington D. C. 

Here in Michigan the still fragile state economy seems to be slowly improving with a recent uptick in job growth. But if the nation defaults on its debt, how is Michigan affected? Economically and politically?

In our weekly political conversation we talk with Susan Demas, political analyst for Michigan Information and Research Service and Ken Sikkema, former Senate Majority Leader and senior policy fellow for Public Sector Consultants.

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Auto/Economy
11:46 am
Wed July 13, 2011

Developing electric vehicle charging stations (and where you can find them now)

The location of electric charging stations online now in Michigan.
Google Maps and the U.S. Department of Energy

One group in west Michigan wants to encourage more people to buy electric cars by building more charging stations.

From the Grand Rapids Press:

The West Michigan Strategic Alliance is proposing the development of at least 4,000 charging stations across eight counties. Alliance President Greg Northrup is seeking approval from county boards in Kent, Ottawa and Muskegon for the project, which would be financed through the sale of bonds and be repaid over a 10-year period.

“We’ve got $3 billion invested in battery projects in West Michigan,” Northrup said. “Why shouldn’t we have the infrastructure to go with it?”

So those are 4,000 proposed electric charging stations.

How can you find charging stations that are online now?

Google and the U.S. Department of Energy to the rescue. You can enter your address on the DOE's website to find alternative fueling stations near you.

Fast Company says "eventually, this Google/DOE partnership will serve as the primary EV charging station data source for GPS and mapping systems (like the one that may be in your car already)."

Economy
11:15 am
Thu July 7, 2011

Pfizer may sell animal health, nutrition units

NEW YORK (AP) Pfizer says it may sell its animal health and nutrition business in the next two years so it can focus on expanding its low-cost pharmaceuticals unit.

Pfizer says it will also consider transactions including spinoffs and may pursue different strategies for each business. It said any transactions could take one to two years to complete.

The businesses brought Pfizer Inc. $5.5 billion in revenue in 2010, about 8 percent of its total. The Animal Health unit makes vaccines, medicines, diagnostics and other items to prevent and treat diseases in livestock and pets, and the nutrition unit makes infant and pediatric products.

The New York drugmaker say it will focus on its established products business, which makes drugs that are off-patent or are losing patent protection.

Changing Gears
10:57 am
Thu July 7, 2011

Canadian oil is boosting midwest economy, but at what cost?

Marathon is upgrading its Detroit refinery to process more heavy crude from the Canadian oil sands.
Adee Braun Changing Gears

Green energy is often said to be the future of the Midwest economy. But old fashioned fossil fuels could be having a bigger effect on the region’s jobs and corporate bottom lines.

This is not conventional oil, though.

It’s a thick, tar-like crude from the oil sands in Alberta, Canada.

It’s sent here by pipelines, many which cross our rivers and the Great Lakes, and that has some worrying about a bigger risk to the region.

Read more
Auto/Economy
11:27 am
Wed July 6, 2011

Dow Chemical teams up to make battery electrolytes

Midland, Mich. (AP) - Dow Chemical Co. and Japanese chemical company Ube Industries Ltd. said Wednesday they've agreed to form a joint venture to manufacture electrolytes for lithium-ion batteries
which are increasingly being used in cars among other things.

The 50-50 joint venture, named Advanced Electrolyte Technologies LLC, is expected to be finalized later this year pending regulatory approval.

Dow said the joint venture will allow it to expand its alternative energy offerings.

"The growing demand for alternative energy production and energy storage systems places technologies such as advanced batteries for electric/hybrid vehicles and power generation at the very center of the global mega-trends," said Heinz Haller, Dow executive vice president and chief commercial officer.

The joint venture's first manufacturing facility is expected to be built at Dow's home base in Midland, Mich. for startup next year.

Changing Gears
10:27 am
Tue July 5, 2011

Great Lakes harbors threatened by dredging backlog

The Great Lakes form a sprawling ecosystem of nature and industry.  In a strong economy, ships can transport up to 200 million tons of cargo across these waters each year.  But now the shipping industry has declared a state of emergency.  The cause is a region-wide dredging backlog.  Shippers worry sediment buildup threatens to choke some navigation channels.

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Economy
1:10 pm
Thu June 30, 2011

Report: unemployment down in Michigan, but food assistance up

A chart from the Michigan League for Human Services showing Michigan's unemployment rate over the last four years.
MLHS

The Michigan League for Human Services (MLHS) released its "Economic Security Bulletin" today.

The report showed the unemployment rate dropping in 82 of Michigan's 83 counties when comparing the 1st quarter of 2010 with the 1st quarter of 2011 (Ontonagon was the only county that did not show a drop - going from 16.9% to 18.0%).

But despite the improvement in employment, the need for food assistance is rising.

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Economy
9:21 am
Mon June 27, 2011

AAA Mich.: Gas prices down 16 cents in past week

A Suncor Energy refinery in Sarnia, Ontario. Problems with refineries are partly to blame for the recent spike in gas prices. AAA Michigan says prices are dropping again.
Suncor Energy

DEARBORN, Mich. (AP) - AAA Michigan says gasoline prices are down 16 cents per gallon over the past week to a statewide average of $3.56.

The auto club says Monday the statewide average is about 71 cents per gallon higher than last year at this time. But the price has fallen 56 cents in three weeks.

Of the cities it surveys, AAA Michigan says the cheapest price for self-serve unleaded fuel is in the Lansing area, where it's $3.41 a gallon. The highest average can be found in the Ann Arbor and Marquette areas at $3.62.

Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily.

The Two-Way
1:41 pm
Fri June 17, 2011

International: 'Turmoil' In Europe Continues To Trouble Markets

Originally published on Fri June 17, 2011 7:15 am

While Greek Prime Minister George Papandreou struggled to bring calm to his country today by shuffling his cabinet, The New York Times warns that:

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Historical
4:51 pm
Thu June 16, 2011

The Ambassador Bridge: Looking back, looking forward

Patricia Drury / Flickr

In his state of the state address, Governor Rick Snyder urged the legislature to approve the construction of a new bridge span between Detroit and Windsor, Ontario.

Michigan Radio’s Political analyst Jack Lessenberry sat down with Michigan Radio’s Jennifer White to talk about the role the Ambassador Bridge has played in its 82 year history, and the reasons why a new bridge may be necessary. 

Billions of dollars a week move across the Ambassador Bridge. “It’s the most important trade crossing between the United States and Canada, and perhaps in the world,” says Jack.

The Ambassador Bridge was built largely as a beacon of prestige for Detroit in the roaring twenties, and would eventual grow to be a massive economic asset.

Jack would remind us though that “nothing lasts forever.” While the Ambassador Bridge was state of the art in 1929, it’s no longer adequate for the amount of traffic or the size of today’s tractor trailers.

--Cade Sperlich, Michigan Radio Newsroom

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