Indianapolis, Ind. -- Indy Partnership Business Development Director Kristie McKillip departs for Germany today on a trade mission promoting the 10-county Indianapolis Region. It is McKillip’s third trip to Germany in 10 months.
According to a July 2009 Indiana University Kelley School of Business report for the Indiana Economic Development Corporation (IEDC), more than 65 percent of the foreign direct investment in the state of Indiana comes from Europe, and Germany-based employers represent about 14 percent of all companies and all dollar investment of foreign origin in the Indianapolis Region.
Indy Partnership President & CEO Ron Gifford—who just returned from traveling with Governor Daniels on the state’s trade mission to China and Japan—said Indy Partnership is directing its economic development resources toward those areas that offer the greatest potential return on investment as well as have the highest likelihood for bringing new jobs to Central Indiana.
“More than 14,000 new Indiana jobs have come from Europe since 2004,” Gifford said. “Maintaining good working relationships with current partners and introducing new European companies to the Indianapolis Region is both prudent and proactive.”
The trade mission has been planned in cooperation with IEDC’s Director of International Development Steve Akard, Michael Krueger and Mariya Gandzhova with IEDC Europe, and Duke Energy and the Northeast Indiana Regional Partnership (NEIRP) who are also sending representatives on the trip.
McKillip has 23 confirmed meetings with German advanced manufacturing companies and renewable energy firms over the 11-day mission, including meetings with several prospects who already have sales offices in Central Indiana.
“My goals in Europe are the same as they are domestically: to deliver the message that the Indianapolis Region is one of the world’s most competitive locations for business and to back it up with data and case studies,” McKillip said.
In addition to the prearranged meetings with manufacturers, chambers of commerce and other economic development prospects, McKillip will represent the Indianapolis Region at three different trade shows. These trade shows include Motek 2009 international exhibition for industrial automation in Stuttgart, RENEXPO 2009 renewable energy trade fair in Augsburg, and FachPack 2009 packaging and labeling technology exhibition in Nuremburg.
Similar to Ron Gifford’s daily blog and frequent Twitter updates from Governor Daniels’ trade mission to China and Japan, McKillip will take advantage of both technologies to keep Indy Partnership investors and community partners apprised of her economic development activities while in Germany. Visit http://blog.indypartnership.com/blog/news-from-the-road- to read McKillip’s blog and http://twitter.com/KDMcKillip to receive her Twitter updates.
Tuesday, September 22, 2009
Economy divides Ohio politicians
By Julie Carr Smyth
The Associated Press
Posted Sep 22, 2009 @ 12:05 PM
COLUMBUS — Ohio can breathe a sigh of relief. Gov. Ted Strickland finally appointed a permanent replacement last week to succeed Lee Fisher at the helm of the Ohio Department of Development.
Economic development ship righted. Yellow brick road to the Emerald City of prosperity straight ahead.
Right? Well, not exactly.
No sooner had Strickland answered attacks from the Ohio Republican Party over the state’s many months without a development director by appointing Lisa Patt-McDaniel than GOP lawmakers called a series of press conferences across the state Monday.
Their focus was to attack him and fellow Democrats in the Ohio House for being lackadaisical about tackling Ohio’s economic woes.
Republican lawmakers pointed out that one economic competitiveness index places Ohio 49th of 50 states. Forbes rated the state 47th in its prospects for growth in areas such as job creation, income growth, business openings and venture capital investments (despite another ranking that put Ohio tops in the nation in such investments two years in a row).
The lawmakers took particular aim at the House Economic Development Committee, which they say has failed to conduct regular hearings or pass a single substantive bill.
“So far, Democrats have not shown that they are willing to make any important decisions regarding economic development within our state,” said state Rep. Dave Hall. “How many more businesses and young people need to flee the state before the Democrats decide they need to act?”
Republicans, who control 46 of 99 House votes, laid out a series of proposals they believe could help create jobs and stop businesses from leaving the state.
Among them are offering tax credits to companies that hire unemployed Ohioans, creating a small business resource portal online, tracking job placement success and collecting data from companies that leave the state.
The lawmakers failed to note that few bills on any topic have been passed since the session began in January. And chances are, with Democrats leading the House and Republicans leading the Senate, few will.
Another thing that gets lost in the dustup over the state’s development efforts is that the Ohio Department of Development and the House Economic Development Committee may have “development” in their names, but they are far from the only engines of Ohio’s economy.
Some argue they aren’t even the main places where transformative ideas are likely to start.
Joe Shure, deputy director of the State Fiscal Project at the non-partisan Center on Budget and Policy Priorities, said state development departments tend to lead states’ PR efforts — not their economic comebacks.
“In a lot of states, it’s really a marketing office, it sends the signal to other states that we’re ’Open for Business,”’ Shure said. “What really matters to a state’s economic prosperity is the quality of education, the transportation network, its environmental regulations, a tax system that’s adequate to raise needed revenue. Those are not really the things development directors deal with.”
Being without a permanent development director for nearly eight months during this historically abysmal economy is certainly unfortunate for the state. And it can’t be ignored that the development directorship is only one of several within Strickland’s administration that have been sidetracked by controversy.
However, according to Shure, the GOP may be overstating the case when it characterizes the Development Department as central to Strickland’s strategy for improving Ohio’s economy.
“Gov. Strickland clearly doesn’t consider job creation a priority,” Ohio Republican Chairman Kevin DeWine wrote in one of his many attacks over the open directorship.
Then DeWine took aim at Lt. Gov. Lee Fisher, who stepped aside as development director to run for a coveted U.S. Senate seat. “The Strickland-Fisher administration has checked out. It’s no wonder Ohio’s economy is spiraling out of control when the guy responsible for turning it around has no idea what’s going on.”
Shure said whether or not a state has a development director, or even a Development Department, isn’t highly relevant to its economic competitiveness.
“It’s kind of in vogue for states to have highly visible economic development people out there marketing and basically trying to take jobs from other states,” he said. “But no state should think doing that is going to replace slogging it out in the areas that make the most difference. There’s no replacement for doing economic development the old-fashioned way.”
The Associated Press
Posted Sep 22, 2009 @ 12:05 PM
COLUMBUS — Ohio can breathe a sigh of relief. Gov. Ted Strickland finally appointed a permanent replacement last week to succeed Lee Fisher at the helm of the Ohio Department of Development.
Economic development ship righted. Yellow brick road to the Emerald City of prosperity straight ahead.
Right? Well, not exactly.
No sooner had Strickland answered attacks from the Ohio Republican Party over the state’s many months without a development director by appointing Lisa Patt-McDaniel than GOP lawmakers called a series of press conferences across the state Monday.
Their focus was to attack him and fellow Democrats in the Ohio House for being lackadaisical about tackling Ohio’s economic woes.
Republican lawmakers pointed out that one economic competitiveness index places Ohio 49th of 50 states. Forbes rated the state 47th in its prospects for growth in areas such as job creation, income growth, business openings and venture capital investments (despite another ranking that put Ohio tops in the nation in such investments two years in a row).
The lawmakers took particular aim at the House Economic Development Committee, which they say has failed to conduct regular hearings or pass a single substantive bill.
“So far, Democrats have not shown that they are willing to make any important decisions regarding economic development within our state,” said state Rep. Dave Hall. “How many more businesses and young people need to flee the state before the Democrats decide they need to act?”
Republicans, who control 46 of 99 House votes, laid out a series of proposals they believe could help create jobs and stop businesses from leaving the state.
Among them are offering tax credits to companies that hire unemployed Ohioans, creating a small business resource portal online, tracking job placement success and collecting data from companies that leave the state.
The lawmakers failed to note that few bills on any topic have been passed since the session began in January. And chances are, with Democrats leading the House and Republicans leading the Senate, few will.
Another thing that gets lost in the dustup over the state’s development efforts is that the Ohio Department of Development and the House Economic Development Committee may have “development” in their names, but they are far from the only engines of Ohio’s economy.
Some argue they aren’t even the main places where transformative ideas are likely to start.
Joe Shure, deputy director of the State Fiscal Project at the non-partisan Center on Budget and Policy Priorities, said state development departments tend to lead states’ PR efforts — not their economic comebacks.
“In a lot of states, it’s really a marketing office, it sends the signal to other states that we’re ’Open for Business,”’ Shure said. “What really matters to a state’s economic prosperity is the quality of education, the transportation network, its environmental regulations, a tax system that’s adequate to raise needed revenue. Those are not really the things development directors deal with.”
Being without a permanent development director for nearly eight months during this historically abysmal economy is certainly unfortunate for the state. And it can’t be ignored that the development directorship is only one of several within Strickland’s administration that have been sidetracked by controversy.
However, according to Shure, the GOP may be overstating the case when it characterizes the Development Department as central to Strickland’s strategy for improving Ohio’s economy.
“Gov. Strickland clearly doesn’t consider job creation a priority,” Ohio Republican Chairman Kevin DeWine wrote in one of his many attacks over the open directorship.
Then DeWine took aim at Lt. Gov. Lee Fisher, who stepped aside as development director to run for a coveted U.S. Senate seat. “The Strickland-Fisher administration has checked out. It’s no wonder Ohio’s economy is spiraling out of control when the guy responsible for turning it around has no idea what’s going on.”
Shure said whether or not a state has a development director, or even a Development Department, isn’t highly relevant to its economic competitiveness.
“It’s kind of in vogue for states to have highly visible economic development people out there marketing and basically trying to take jobs from other states,” he said. “But no state should think doing that is going to replace slogging it out in the areas that make the most difference. There’s no replacement for doing economic development the old-fashioned way.”
Monday, September 14, 2009
Campaign focuses on plight of Rust Belt
'I will stay if ...' party to be held here
Monday, September 14, 2009
By Diana Nelson Jones, Pittsburgh Post-Gazette
Two friends in their 20s, after working together on a political campaign in Manhattan, decide to leave in favor of their hometowns: Pittsburgh and Detroit.
If you're expecting a punch line, you're a step behind. Sarah Szurpicki and Abby Wilson -- the founders the Great Lakes Urban Exchange, or GLUE -- can make you believe the Rust Belt is the place to be, not the place to leave.
A loose network of people in Pittsburgh, Detroit, Milwaukee, Cleveland, Toledo, Ohio, and Buffalo, N.Y., GLUE started two years ago after Ms. Szurpicki, a Detroit native, and Ms. Wilson, a Pittsburgher, left New York to take their enthusiasm for urban living to their own hometowns.
In the spring, they launched the first GLUE campaign -- a series of "I Will Stay If ..." parties that kicked off in Detroit in June. The second party, reframed with the theme "Why Pittsburgh?" is from 6 to 9 p.m. Thursday at the Shadow Lounge, 5972 Baum Blvd., East Liberty.
One need not be affiliated with GLUE or of a certain age to participate.
Carrie Hagan, a graduate student in history and policy at Carnegie Mellon University, met Ms. Wilson through the League of Young Voters and joined the party committee "and the next thing I know I am throwing the party," said Ms. Hagan. "I couldn't stand the idea of not being part of something like this."
She said East Liberty was chosen because of its convergence of economic development and minority population.
"We want a comprehensive conversation," she said. "A lot of people are feeling pride in being here right now, but for a lot of people, Pittsburgh has not been the most livable city, and we want feedback from them. We want to know what has made people stay, but we realize quality of life varies."
Ms. Szurpicki said GLUE is an experiment in driving urban policy from the roots up. Every party results in photographs of participants holding signs that tell what it is about their city that would make them stick with it. The photos will be data for GLUE to play a part in reviving and setting urban policy.
Read more
Monday, September 14, 2009
By Diana Nelson Jones, Pittsburgh Post-Gazette
Two friends in their 20s, after working together on a political campaign in Manhattan, decide to leave in favor of their hometowns: Pittsburgh and Detroit.
If you're expecting a punch line, you're a step behind. Sarah Szurpicki and Abby Wilson -- the founders the Great Lakes Urban Exchange, or GLUE -- can make you believe the Rust Belt is the place to be, not the place to leave.
A loose network of people in Pittsburgh, Detroit, Milwaukee, Cleveland, Toledo, Ohio, and Buffalo, N.Y., GLUE started two years ago after Ms. Szurpicki, a Detroit native, and Ms. Wilson, a Pittsburgher, left New York to take their enthusiasm for urban living to their own hometowns.
In the spring, they launched the first GLUE campaign -- a series of "I Will Stay If ..." parties that kicked off in Detroit in June. The second party, reframed with the theme "Why Pittsburgh?" is from 6 to 9 p.m. Thursday at the Shadow Lounge, 5972 Baum Blvd., East Liberty.
One need not be affiliated with GLUE or of a certain age to participate.
Carrie Hagan, a graduate student in history and policy at Carnegie Mellon University, met Ms. Wilson through the League of Young Voters and joined the party committee "and the next thing I know I am throwing the party," said Ms. Hagan. "I couldn't stand the idea of not being part of something like this."
She said East Liberty was chosen because of its convergence of economic development and minority population.
"We want a comprehensive conversation," she said. "A lot of people are feeling pride in being here right now, but for a lot of people, Pittsburgh has not been the most livable city, and we want feedback from them. We want to know what has made people stay, but we realize quality of life varies."
Ms. Szurpicki said GLUE is an experiment in driving urban policy from the roots up. Every party results in photographs of participants holding signs that tell what it is about their city that would make them stick with it. The photos will be data for GLUE to play a part in reviving and setting urban policy.
Read more
Thursday, September 10, 2009
Editorial: Going with the wind
By John Phipps
August 26, 2009, 9:00AM
One good thing about hard times is they force innovation. And here's an invigorating example: West Michigan is rigging itself to set sail in the emerging wind energy industry.
Grand Rapids Community College, encouraged by The Right Place economic development group, has succeeded in getting eight West Michigan community colleges -- from Traverse City all the way down to Kalamazoo, Saint Joseph and Battle Creek -- to cooperate on one big idea to promote wind energy in West Michigan. Grand Valley State and Ferris State universities are also on board.
So are key local industries working in wind, such as Rockford Berge, Cascade Engineering, Applied Technology Systems, the Holland Board of Public Works and others.
The big idea: A $16 million wind energy training and testing center supported by all 10 schools.
The center would train skilled workers to service the turbines and wind farms that are popping up like summer sunflowers throughout the country. The centerpiece of the training school could be a 300-foot tower, the kind a major power supplier would operate. But it likely would have a variety of other wind towers, smaller home wind machines, and solar and other renewable energy training equipment. Testing labs also are planned, with an eye toward having the wind industry pay to use them.
This groundbreaking college collaborative should be considered a statewide example for aggressively recruiting a new industry, while cutting costs by sharing resources. Lawmakers, policy makers and the governor's office should support the effort as the schools finalize planning and begin applying for federal and state green-energy grants to make it happen. Alternative energy is a good way to diversify our economy. If new, well-paying jobs are going to be created, the state must be committed to supporting bold endeavors like this testing and training facility.
Right Place President Birgit Klohs estimates there's a window of just a few years for West Michigan to prove itself a player in the wind market. She is working with industries to position the region, following the road map in a 52-page report she released 18 months ago. The report calls wind West Michigan's best opportunity for growth over the next five years.
The community college training center could become nationally known, she said.
"My long-term dream is that if someone in Montana says 'wind energy technicians' they say 'Oh, those people in West Michigan -- they have the best programs.'รข€‰"
The center will need a 50-acre site to call home, The most promising area, organizers say, is in or around northern Allegan County, which is one of the best regions in Michigan for harvesting wind energy, according to a study by Michigan State University's Land Policy Institute. The policy report also concluded Allegan County, which has a unique proximity to urban areas, eventually could support up to 300 turbines as wind farm demand grows. The Traverse City and Thumb regions also are flagged as top on-shore wind-capturing locations.
Planning for wind turbines won't be a breeze. There is hard work ahead, and policy makers should prepare to address environmental, community and business issues thoroughly and openly.
But the wind industry is truly taking flight. Nationally, its jobs now total 85,000, already outnumbering coal mining jobs, according to a new American Wind Energy Association study. Within just a few years, Michigan may have 1,000 wind turbines turning to meet demands of the state's renewable portfolio standards, rules that require electric suppliers by 2015 to get 10 percent of electricity from renewable sources.
Wind is a rare example in these tough times of where West Michigan's assets seem to align perfectly with an up-and-coming industry. The Great Lakes are among the nation's best wind factories. The region is already a proven leader in making things, with a strong work force and infrastructure.
We are, for once, in the right place, Klohs said. In this economy, that's a blast of fresh air.
August 26, 2009, 9:00AM
One good thing about hard times is they force innovation. And here's an invigorating example: West Michigan is rigging itself to set sail in the emerging wind energy industry.
Grand Rapids Community College, encouraged by The Right Place economic development group, has succeeded in getting eight West Michigan community colleges -- from Traverse City all the way down to Kalamazoo, Saint Joseph and Battle Creek -- to cooperate on one big idea to promote wind energy in West Michigan. Grand Valley State and Ferris State universities are also on board.
So are key local industries working in wind, such as Rockford Berge, Cascade Engineering, Applied Technology Systems, the Holland Board of Public Works and others.
The big idea: A $16 million wind energy training and testing center supported by all 10 schools.
The center would train skilled workers to service the turbines and wind farms that are popping up like summer sunflowers throughout the country. The centerpiece of the training school could be a 300-foot tower, the kind a major power supplier would operate. But it likely would have a variety of other wind towers, smaller home wind machines, and solar and other renewable energy training equipment. Testing labs also are planned, with an eye toward having the wind industry pay to use them.
This groundbreaking college collaborative should be considered a statewide example for aggressively recruiting a new industry, while cutting costs by sharing resources. Lawmakers, policy makers and the governor's office should support the effort as the schools finalize planning and begin applying for federal and state green-energy grants to make it happen. Alternative energy is a good way to diversify our economy. If new, well-paying jobs are going to be created, the state must be committed to supporting bold endeavors like this testing and training facility.
Right Place President Birgit Klohs estimates there's a window of just a few years for West Michigan to prove itself a player in the wind market. She is working with industries to position the region, following the road map in a 52-page report she released 18 months ago. The report calls wind West Michigan's best opportunity for growth over the next five years.
The community college training center could become nationally known, she said.
"My long-term dream is that if someone in Montana says 'wind energy technicians' they say 'Oh, those people in West Michigan -- they have the best programs.'รข€‰"
The center will need a 50-acre site to call home, The most promising area, organizers say, is in or around northern Allegan County, which is one of the best regions in Michigan for harvesting wind energy, according to a study by Michigan State University's Land Policy Institute. The policy report also concluded Allegan County, which has a unique proximity to urban areas, eventually could support up to 300 turbines as wind farm demand grows. The Traverse City and Thumb regions also are flagged as top on-shore wind-capturing locations.
Planning for wind turbines won't be a breeze. There is hard work ahead, and policy makers should prepare to address environmental, community and business issues thoroughly and openly.
But the wind industry is truly taking flight. Nationally, its jobs now total 85,000, already outnumbering coal mining jobs, according to a new American Wind Energy Association study. Within just a few years, Michigan may have 1,000 wind turbines turning to meet demands of the state's renewable portfolio standards, rules that require electric suppliers by 2015 to get 10 percent of electricity from renewable sources.
Wind is a rare example in these tough times of where West Michigan's assets seem to align perfectly with an up-and-coming industry. The Great Lakes are among the nation's best wind factories. The region is already a proven leader in making things, with a strong work force and infrastructure.
We are, for once, in the right place, Klohs said. In this economy, that's a blast of fresh air.
Saturday, August 15, 2009
Shuttered factories, shattered lives in US rust belt
By Mira Oberman (AFP) – Aug 2, 2009
DETROIT, Michigan(AFP) — Weeds have not had time to overtake factories shuttered in the wake of recent bankruptcies at General Motors, Chrysler and a host of suppliers, but the signs of shattered lives are spreading as the economically devastated region, dubbed "the rust belt" after its steel industry, fails to absorb the collapse of the auto industry.
Long lines at the unemployment offices. Empty shelves at the food banks. Boarded up businesses. Homes lost to foreclosure, their contents strewn on the street.
Michigan, the birthplace and home of the US auto industry, is the hardest hit.
"There's just no doubt that region has faced an incredible tsunami of events," said Mark Partridge, an economist at Ohio State University.
"It's really tough on the psyche... they've had one failure after another."
In the past ten years, Michigan has lost half its manufacturing jobs as the Detroit Three saw their share of US auto sales slide from 70 to 45 percent.
That's more than 543,000 people forced out of plants where the wages were usually good enough to pay for a nice house, a college fund for the kids and maybe even a cottage.
Most blame management for pumping out ugly, unreliable cars people simply didn't want to buy.
Some blame the union and its gold-plated benefits, while others say it's the government's fault for shifting the burden of healthcare costs to employers.
But simply put, GM, Ford and Chrysler had been losing market share to Asian automakers for decades.
They managed to post record profits in the 1990s by developing gas-guzzling sport utility vehicles, but were slow to match the smaller crossovers introduced by Toyota and Honda.
When fuel prices soared, the Big Three tanked.
The plant closures started in 2005 and the restructuring plans deepened as the economy slowed in 2007. The union made historic concessions. Management got focused on fuel efficiency and quality.
And then -- just when it looked like they might pull through -- the credit crunch and financial crisis hit in the fall of 2008. US auto sales fell to lows not seen in decades.
Ford survived with the help of massive loans it secured before credit dried up, but GM and Chrysler were forced into bankruptcy protection and a 50-billion-dollar government bailout.
Michigan went from having one of the lowest unemployment rates in the country -- 3.3 percent in June of 2000 -- to topping the list every single month for over three years.
More than 740,000 people here were actively looking for work in June as the unemployment rate hit 15.2 percent. An untold number have moved away or simply given up.
"I think there's a lot of hope," said Andy Levin, deputy director for Michigan's department of energy, labor and economic growth.
Governor Jennifer Granholm -- a charismatic and energetic speaker with close ties to President Barack Obama -- has been traveling the globe to pitch the state's resources to prospective employers.
She's making a major push to draw alternative energy jobs, touting the state's experience with advanced manufacturing and engineering its easy access to the shipping lanes and wind power of the Great Lakes.
State officials have also devoted millions of dollars to an innovative retraining program for unemployed and low-income residents and have launched a major tourism campaign promoting Michigan's miles of pristine shorelines.
"It's an incredibly beautiful place and we have all these incredible water resources and our manufacturing process and know-how," Levin said in a telephone interview.
"We can make things cheaper, faster, better than other places because we have the highest concentration of engineering talent."
The success stories fill 12 pages of a website set up by the state's economic development corporation to tout the "Michigan Advantage."
A 2.9-million-dollar investment by a medical device firm (108 jobs). An 84-million-dollar expansion by an insurance company (1,600 jobs). A new, 220-million-dollar plant to build batteries for hybrid cars (498 jobs).
They pale in comparison to the 337,600 jobs Michigan has lost in the past year alone.
"The fallout from the shrinkage of the auto industry -- even in the best scenario -- we will be feeling that for years," said Charles Ballard, an economics professor at Michigan State University.
"The downward trend has been going on for 60 years, so it's not going to be fixed by Thursday. Even if they do the right things it'll take years before they bear fruit."
Copyright © 2009 AFP. All rights reserved.
DETROIT, Michigan(AFP) — Weeds have not had time to overtake factories shuttered in the wake of recent bankruptcies at General Motors, Chrysler and a host of suppliers, but the signs of shattered lives are spreading as the economically devastated region, dubbed "the rust belt" after its steel industry, fails to absorb the collapse of the auto industry.
Long lines at the unemployment offices. Empty shelves at the food banks. Boarded up businesses. Homes lost to foreclosure, their contents strewn on the street.
Michigan, the birthplace and home of the US auto industry, is the hardest hit.
"There's just no doubt that region has faced an incredible tsunami of events," said Mark Partridge, an economist at Ohio State University.
"It's really tough on the psyche... they've had one failure after another."
In the past ten years, Michigan has lost half its manufacturing jobs as the Detroit Three saw their share of US auto sales slide from 70 to 45 percent.
That's more than 543,000 people forced out of plants where the wages were usually good enough to pay for a nice house, a college fund for the kids and maybe even a cottage.
Most blame management for pumping out ugly, unreliable cars people simply didn't want to buy.
Some blame the union and its gold-plated benefits, while others say it's the government's fault for shifting the burden of healthcare costs to employers.
But simply put, GM, Ford and Chrysler had been losing market share to Asian automakers for decades.
They managed to post record profits in the 1990s by developing gas-guzzling sport utility vehicles, but were slow to match the smaller crossovers introduced by Toyota and Honda.
When fuel prices soared, the Big Three tanked.
The plant closures started in 2005 and the restructuring plans deepened as the economy slowed in 2007. The union made historic concessions. Management got focused on fuel efficiency and quality.
And then -- just when it looked like they might pull through -- the credit crunch and financial crisis hit in the fall of 2008. US auto sales fell to lows not seen in decades.
Ford survived with the help of massive loans it secured before credit dried up, but GM and Chrysler were forced into bankruptcy protection and a 50-billion-dollar government bailout.
Michigan went from having one of the lowest unemployment rates in the country -- 3.3 percent in June of 2000 -- to topping the list every single month for over three years.
More than 740,000 people here were actively looking for work in June as the unemployment rate hit 15.2 percent. An untold number have moved away or simply given up.
"I think there's a lot of hope," said Andy Levin, deputy director for Michigan's department of energy, labor and economic growth.
Governor Jennifer Granholm -- a charismatic and energetic speaker with close ties to President Barack Obama -- has been traveling the globe to pitch the state's resources to prospective employers.
She's making a major push to draw alternative energy jobs, touting the state's experience with advanced manufacturing and engineering its easy access to the shipping lanes and wind power of the Great Lakes.
State officials have also devoted millions of dollars to an innovative retraining program for unemployed and low-income residents and have launched a major tourism campaign promoting Michigan's miles of pristine shorelines.
"It's an incredibly beautiful place and we have all these incredible water resources and our manufacturing process and know-how," Levin said in a telephone interview.
"We can make things cheaper, faster, better than other places because we have the highest concentration of engineering talent."
The success stories fill 12 pages of a website set up by the state's economic development corporation to tout the "Michigan Advantage."
A 2.9-million-dollar investment by a medical device firm (108 jobs). An 84-million-dollar expansion by an insurance company (1,600 jobs). A new, 220-million-dollar plant to build batteries for hybrid cars (498 jobs).
They pale in comparison to the 337,600 jobs Michigan has lost in the past year alone.
"The fallout from the shrinkage of the auto industry -- even in the best scenario -- we will be feeling that for years," said Charles Ballard, an economics professor at Michigan State University.
"The downward trend has been going on for 60 years, so it's not going to be fixed by Thursday. Even if they do the right things it'll take years before they bear fruit."
Copyright © 2009 AFP. All rights reserved.
Healthy Lake Erie means stronger economy
Congress is getting ready to vote on legislation that could pump up to $475 million into funding for Great Lakes restoration.
With blue skies and the temperature in the 80's, this was a perfect day on Lake Erie. At Edgewater Beach in Cleveland, lots of kids were playing in the shallow water near the warm sand.
With 10,000 miles of freshwater coastline, millions treasure the freshwater seas known as the Great Lakes. Patty Palyu and her daughter Christine were walking back to their car after a great day in the sunshine at Edgewater.
"I grew up with the tradition of going to the beach whenever our family had the chance to get to Lake Erie," said Patty. "And it's free, it's close and beautiful."
Christine Palyu added, "the water today was very clean. I just hope people in Washington understand how important this is for all of us."
In downtown Cleveland, U.S. Senator Sherrod Brown talked about the impending vote in Congress to provide $475 million in funding for Great Lakes restoration.
Senator Brown said, "this federal money just makes great sense. Investing in the Great Lakes region is an important way to promote economic development."
The economists at the Brookings Institute think tank estimate that the Great Lakes region would see at least a $2 economic benefit for every $1 invested in restoring Lake Erie and the other Great Lakes.
Kristy Meyer, director of Clean Water Programs for the Ohio Environmental Council said, "we need to send a clear message to Congress. Stand up for the millions of people who depend on the Great Lakes for their jobs, drinking water, and way of life."
Calvin Jefferson was taking his wife Anne and their three children to the lake this afternoon.
Said Jefferson, "I'd pay to get $2 dollars back for a $1 investment if it's something worth it, like the beaches here."
Across Northeast Ohio boaters and fishermen know the treasure that we have with our billions of gallons of fresh water.
Fishing charter captain, Mike Blankenship walked off his dock at the Inner City Yacht Club and said, "Look around. This is the walleye capital of the world. Let's get it together and use it right".
But invasive species like the goby are a constant threat.
Getting rid of them could be part of the federal funding package. The federal restoration plan would include cleaning up the rivers and tributaries that flow into Lake Erie.
Carol Caruso, Vice President of the Greater Cleveland Partnership said, "in terms of jobs, the economy, the lifestyle and the attraction of people to this wonderful city. I can't think of a city that's better positioned to take advantage of this federal funding."
Cleveland understands the need and the priority of restoring the sweet water seas. And many hope that Congress won't miss the boat when the Senate votes on the Great Lakes appropriation in September.
© 2009 WKYC-TV
With blue skies and the temperature in the 80's, this was a perfect day on Lake Erie. At Edgewater Beach in Cleveland, lots of kids were playing in the shallow water near the warm sand.
With 10,000 miles of freshwater coastline, millions treasure the freshwater seas known as the Great Lakes. Patty Palyu and her daughter Christine were walking back to their car after a great day in the sunshine at Edgewater.
"I grew up with the tradition of going to the beach whenever our family had the chance to get to Lake Erie," said Patty. "And it's free, it's close and beautiful."
Christine Palyu added, "the water today was very clean. I just hope people in Washington understand how important this is for all of us."
In downtown Cleveland, U.S. Senator Sherrod Brown talked about the impending vote in Congress to provide $475 million in funding for Great Lakes restoration.
Senator Brown said, "this federal money just makes great sense. Investing in the Great Lakes region is an important way to promote economic development."
The economists at the Brookings Institute think tank estimate that the Great Lakes region would see at least a $2 economic benefit for every $1 invested in restoring Lake Erie and the other Great Lakes.
Kristy Meyer, director of Clean Water Programs for the Ohio Environmental Council said, "we need to send a clear message to Congress. Stand up for the millions of people who depend on the Great Lakes for their jobs, drinking water, and way of life."
Calvin Jefferson was taking his wife Anne and their three children to the lake this afternoon.
Said Jefferson, "I'd pay to get $2 dollars back for a $1 investment if it's something worth it, like the beaches here."
Across Northeast Ohio boaters and fishermen know the treasure that we have with our billions of gallons of fresh water.
Fishing charter captain, Mike Blankenship walked off his dock at the Inner City Yacht Club and said, "Look around. This is the walleye capital of the world. Let's get it together and use it right".
But invasive species like the goby are a constant threat.
Getting rid of them could be part of the federal funding package. The federal restoration plan would include cleaning up the rivers and tributaries that flow into Lake Erie.
Carol Caruso, Vice President of the Greater Cleveland Partnership said, "in terms of jobs, the economy, the lifestyle and the attraction of people to this wonderful city. I can't think of a city that's better positioned to take advantage of this federal funding."
Cleveland understands the need and the priority of restoring the sweet water seas. And many hope that Congress won't miss the boat when the Senate votes on the Great Lakes appropriation in September.
© 2009 WKYC-TV
Dow battery factory will have ripple effect on area's economy
by Eric English | The Saginaw News
Thursday August 06, 2009, 7:15 AM
MIDLAND - Construction of a huge new factory in Midland to make advanced batteries for the automotive industry will break ground in October or early November, a spokeswoman for the Dow Chemical Co. said Wednesday. When completed, the factory will employ an estimated 800 people.
"It's entirely our intention to move quickly on this, to get it up and operational and hire people as soon as possible," Dow spokeswoman Kristina Schnepf said Wednesday.
Dow will build the 800,000-square-foot factory as a joint venture with batterymaker Kokam America Inc., which currently produces batteries used in electric vehicles and by the military, Schnepf said.
The location of the factory will be on Dow property at the corner of Saginaw Street and Bay City Road, near the Genji restaurant in Midland.
Local leaders say the project will help the entire Great Lakes Bay Region's economy.
"The impact is going to be enormous," said JoAnn T. Crary, president of the economic development agency Saginaw Future Inc.
Dow officials were in Detroit on Wednesday to hear Vice President Joe Biden, who announced a $161 million Department of Energy grant to support the proposed battery venture between Dow and Kokam.
The grant was among $2.4 billion in federal dollars awarded for manufacturing and developing advanced batteries for electric vehicles.
The federal money was the last major piece of financing Dow and Kokam needed to start the estimated $665 million project. Dow and Kokam are putting in an amount at least equal to the federal money, Schnepf said.
The Michigan Economic Growth Authority previously approved about $145 million in tax credits for the joint venture. Crary said Saginaw Future worked with other area economic development groups to change state law and lift the $25 million limit on such state credits in order to get the larger amount approved for the Dow project.
The project is likely to create hundreds of construction jobs to build the factory, which Dow expects to be up and running by 2011. That's welcome news to Tom Ryder, president of the 2,000-member Tri-County Building and Construction Trades Council.
"We're very hopeful. We could really use the jobs," said Ryder, adding that each local trade union currently has about 30 percent of its work force unemployed. The Saginaw electrician's local, for example, has 48 of its 130 members out of work, he said.
Ryder said the Dow Kokam project would be the third big employment opportunity, after work at Hemlock Semiconductor in Saginaw County and a planned expansion of Consumers Energy's Karn-Weadock generating complex in Bay County.
Schnepf said Dow hasn't announced any contractors or a bidding process for the new factory. It also isn't taking job applications for people to work at the new plant; more information will be available as the project gets under way, she said.
"It's extremely exciting. This is a huge vote of confidence in Michigan companies, especially Dow," Schnepf said.
The new Dow Kokam factory would replace some of the 400 to 500 jobs Dow is cutting in the Midland area as part of staff reductions announced in 2008.
When completed, the plant will make up to 60,000 batteries a year for electric or hybrid electric vehicles.
"I applaud President Obama and the DOE for helping ensure the next generation of advanced battery technology is developed and built right here in America," said Andrew N. Liveris, Dow's chairman and chief executive officer.
"Dow is excited to begin using our expertise in chemistry to help overcome the technical challenges of developing and commercializing the next generation of advanced automotive batteries," he said.
Kokam America Inc. is based in Missouri and is the U.S. affiliate of South Korea-based Kokam Co.. The company makes a patented product called a Superior Lithium Polymer Battery. Kokam claims its product is one of the highest energy and power density batteries available.
Thursday August 06, 2009, 7:15 AM
MIDLAND - Construction of a huge new factory in Midland to make advanced batteries for the automotive industry will break ground in October or early November, a spokeswoman for the Dow Chemical Co. said Wednesday. When completed, the factory will employ an estimated 800 people.
"It's entirely our intention to move quickly on this, to get it up and operational and hire people as soon as possible," Dow spokeswoman Kristina Schnepf said Wednesday.
Dow will build the 800,000-square-foot factory as a joint venture with batterymaker Kokam America Inc., which currently produces batteries used in electric vehicles and by the military, Schnepf said.
The location of the factory will be on Dow property at the corner of Saginaw Street and Bay City Road, near the Genji restaurant in Midland.
Local leaders say the project will help the entire Great Lakes Bay Region's economy.
"The impact is going to be enormous," said JoAnn T. Crary, president of the economic development agency Saginaw Future Inc.
Dow officials were in Detroit on Wednesday to hear Vice President Joe Biden, who announced a $161 million Department of Energy grant to support the proposed battery venture between Dow and Kokam.
The grant was among $2.4 billion in federal dollars awarded for manufacturing and developing advanced batteries for electric vehicles.
The federal money was the last major piece of financing Dow and Kokam needed to start the estimated $665 million project. Dow and Kokam are putting in an amount at least equal to the federal money, Schnepf said.
The Michigan Economic Growth Authority previously approved about $145 million in tax credits for the joint venture. Crary said Saginaw Future worked with other area economic development groups to change state law and lift the $25 million limit on such state credits in order to get the larger amount approved for the Dow project.
The project is likely to create hundreds of construction jobs to build the factory, which Dow expects to be up and running by 2011. That's welcome news to Tom Ryder, president of the 2,000-member Tri-County Building and Construction Trades Council.
"We're very hopeful. We could really use the jobs," said Ryder, adding that each local trade union currently has about 30 percent of its work force unemployed. The Saginaw electrician's local, for example, has 48 of its 130 members out of work, he said.
Ryder said the Dow Kokam project would be the third big employment opportunity, after work at Hemlock Semiconductor in Saginaw County and a planned expansion of Consumers Energy's Karn-Weadock generating complex in Bay County.
Schnepf said Dow hasn't announced any contractors or a bidding process for the new factory. It also isn't taking job applications for people to work at the new plant; more information will be available as the project gets under way, she said.
"It's extremely exciting. This is a huge vote of confidence in Michigan companies, especially Dow," Schnepf said.
The new Dow Kokam factory would replace some of the 400 to 500 jobs Dow is cutting in the Midland area as part of staff reductions announced in 2008.
When completed, the plant will make up to 60,000 batteries a year for electric or hybrid electric vehicles.
"I applaud President Obama and the DOE for helping ensure the next generation of advanced battery technology is developed and built right here in America," said Andrew N. Liveris, Dow's chairman and chief executive officer.
"Dow is excited to begin using our expertise in chemistry to help overcome the technical challenges of developing and commercializing the next generation of advanced automotive batteries," he said.
Kokam America Inc. is based in Missouri and is the U.S. affiliate of South Korea-based Kokam Co.. The company makes a patented product called a Superior Lithium Polymer Battery. Kokam claims its product is one of the highest energy and power density batteries available.
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