economy

Michigan Governor-elect Rick Snyder
wikimedia commons

Governor-elect Rick Snyder told a crowd in Detroit today that Michigan will beat analysts’ economic growth expectations in the coming years.

Snyder spoke to a group of accounting students at Wayne State University. He recounted an experience at a recent National Governors Association meeting.

Snyder says the investment firm Moody’s ranked each state for projected job growth. He described what he saw when he opened the folder for Michigan.

"The first number from 2009 to 2011 was 47," Snyder said. "The number from 2009 to 2014 was 50."

But the governor-elect called those projections "a piece of fiction."

"We’re going to beat the living daylights out of that number."

Snyder added that he plans to use his background as a CPA to put Michigan’s finances in order.

Downsizing Detroit

Dec 9, 2010
City of Detroit
Pablo Costa - picasa user

Detroit is a city built for 2 million people, but now has around 800,000. It's ruins have become famous. And some people, like artist Lowell Boileau, have said the problems Detroit faces are like a "slow moving Katrina."

Detroit Mayor Dave Bing is leading a plan, called the Detroit Works Project, to shrink the city down to size. To make the city's 139 square mile footprint more manageable for city services like police, fire, sanitation, and water.

Jennifer Granholm
flickr user auberon

3 million jobs in 3 years. That's what soon-to-be-former-Governor Jennifer Granholm called for in her article in the Huffington Post.

Granholm calls for a "Jobs Race to the Top" modelled on the education "Race to the Top" program.

Dangle large sums of money in front of cash strapped states and see if you can get them to change their policies.

Colorful used cars
Zelda Richardson

Perhaps another sign that the 'Great Recession' is thawing. Lending to people with a so-so credit score is on the uptick - at least in the car market.

The Associated Press reports "the percentage of loans going to subprime buyers rose 8% in the third quarter, their first year-over-year increase since 2007, according to a report issued Tuesday by Experian, a credit reporting agency."

Cranes life a wind turbine blade
Stephanie Hemphill / MPR

The Detroit Free Press reports that a large scale wind turbine manufacturer plans to locate in Saginaw.

Northern Power Systems of Barre, Vt., intends to use a facility in Saginaw to manufacture its next-generation large wind turbines, expected to be the first ones built in the U.S. using 100% American-made parts.

Building wind turbines has been touted as a way to diversify a manufacturing base built around the automobile. Many auto suppliers in the state are also building parts for wind turbines. No report yet on how many jobs will be created.

But the future of wind power is uncertain. Tax credits and grants to develop wind energy are expiring at the end of the year. And with an ethic of austerity moving into Washington, there are little signs that they'll be renewed.

Photo courtesy of www.governorelectricksnyder.com

Governor-elect Rick Snyder will talk about economic issues at Wayne State University later this week, according to The Detroit Free Press.

Snyder will deliver the annual George R. Husband Distinguished Lecture Series keynote address on Thursday from 1-2PM.

The Series' website says the lecture is open to the public but reservations are required.

The runways at Detroit Metro Airport
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.

Striking workers' sign
Steve Rhodes/Flickr

Michigan Radio has been covering stories from across the state regarding labor and contract disputes. From the strike of the Detroit Symphony Orchestra to the dispute between the City of Flint and its Firefighters Union, it seems that workers and management are having a difficult time finding common ground these days.

So, we wondered, do strikes increase during a down economy?  We assumed they did.  Well, as they say, that's we get for assuming.  As it turns out, the struggling economy may have actually reduced the number of labor disputes resulting in strikes. According to the Bureau of Labor Statistics, there were fewer work stoppages affecting 1,000 or more workers in 2009 than in any other year since 1947, when the collection of this data began.

The White House is ramping up its efforts to get Congress to approve extended unemployment benefits for out-of-work Americans. Michigan's unemployment rate in October was the second-highest in the nation, at 12.8%.

The president's Council of Economic Advisers released a report that touts the need for extending benefits. The report says for the typical person getting unemployment, the benefits make up a third of the household income.  As Presidential adviser Cecilia Rouse noted:

And in those 42% of households where the unemployed person was the sole wage earner, it's about 90 percent of the income. So it's quite an important source of income for these families.

The report says about 620,000 people in Michigan received benefits through October.

Republicans in Congress say the cost of extending the benefits is too high. They want to look at budget cuts and tax cut extensions first.

Job search seminar in Ohio
flickr user Daniel Johnson / Flickr

We all know Michigan has been going through tough times. An unemployment rate of nearly 13%. Jobless benefits expiring for tens of thousands of people. Deep spending cuts coming to state and local governments.

But it may be tougher than you've thought.

 The Detroit New reports:

Michigan’s economy stumbled in October. 

Comerica Bank’s monthly gauge of Michigan’s economic activity shows a slight dip in October.   The state’s economy spiked up in September. 

Comerica Bank chief economist Dana Johnson says Michigan’s economy has essentially been flat for the past four months.  Johnson says:

 As has been the case in the national economy over the second half of the year, growth in Michigan has been sluggish and uneven. Looking ahead, the Michigan economy is poised to make modest gains in coming months, against a background of gradually accelerating national growth.

The Michigan Economic Activity Index weighs nine, seasonally-adjusted indicators of real economic activity.

These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays.

Willow Run Factory and B-24 bombers
U.S. Army Signal Corps

It was ground zero for the "arsenal of democracy" in the 1940s. Henry Ford built the giant Willow Run factory to manufacture B-24 bombers in World War II. Later GM took over the building making everything from Chevy trucks, the Caprice, the Nova, Corvairs, and transmissions.

Today, the materials inside the plant are being auctioned off as part of the "Old GM's" bankruptcy reorganization (old GM is now known as the Motors Liquidation Company).

Car lot
Lester Graham / Michigan Radio

Ford sales are up 24%, Chrysler sales are up 17%, and GM's are up  11%. It's been a good news week for the "Big Three" (can we still call them that?). Chrysler and GM also announced they plan to hire more workers in Michigan, and the Brookings Institution says Metro Detroit is recovering.

Here are some figures from a number-laden Detroit News article on auto sales:

  • Sales for Chrysler's Jeep brand were up 58 % for November compared to a year ago
  • Ford's year-to-date sales total 1.74 million vehicles - growing at a pace double the industry average
  • Ford's F-Series trucks were up 26 %
  • GM's big brand Chevrolet was up 18 % for the month compared to a year ago, its sales strengthened by the new compact Cruze and popular Equinox and Silverado
Chrysler headquarters in Auburn Hills, Michigan
flickr user fiatontheweb / creative commons

Today executives at General Motors announced they plan to add 1,000 jobs in Michigan.

Now, Chrysler executives have announced they also plan to add 1,000 jobs.

The Wall Street Journal reports:

Seniors find meaning in music

Nov 29, 2010
Kyle Norris / Michigan Radio

In the basement of a church in Grand Rapids, there's a rehearsal for the Beginners Swing Band.

Most of the musicians here are in their sixties and seventies.

Michigan retailers have been busy this weekend with the beginning of the holiday shopping season. But Monday could be a very big day as well.

The National Retail Federation coined the term ‘Cyber Monday’ five years ago to describe the growing trend of holiday shoppers flooding store websites on the Monday following thanksgiving.  A recent survey found more shoppers planned to shop online  Monday than stand in line on the Friday after Thanksgiving.  

Volunteers serve Thanksgiving at DeVos Place
Lindsey Smith / Michigan Radio

More than 600 volunteers served people in need a hot Thanksgiving meal today in Grand Rapids. Thousands of homeless, elderly, sick and downtrodden came for the feast.

Michigan retailers are optimistic that holiday sales will be better this year.

The first real test comes this week. 

 Thanksgiving is such a pivotal time for Michigan retailers many aren’t waiting for their customers to finish their turkey dinners.

K-Mart, Sears and other retailers plan to be open on Thanksgiving day.   Many other stores, like Banana Republic and the Gap will open their doors Thursday night.

Unemployment line in California
Michael Raphael / Flickr

The Associated Press reports that the state "will stop taking new extended unemployment benefit applications after Saturday because Congress has failed to renew the program."

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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