Sparked by the success of a referendum in Ohio earlier this month to enlarge bonding for economic development by $700 million, there is a growing interest in a similar initiative in Wisconsin.
By a solid margin of 62%-38%, voters in Ohio authorized the four-year expansion. The plan builds on the creation in 2002 of a $1.4 billion bonding program to promote innovation and long-term growth.
Ohio's economy, which has lost 635,000 jobs since 2000, is just as challenged as Wisconsin's, and voters there bit the bullet and supported a large-scale initiative called the Ohio Third Frontier. The commitment of more than $2 billion for economic development in that state dwarfs all job-creation initiatives in Wisconsin.
The Third Frontier leaders rolled out some impressive statistics to make the case for the additional $700 million of investments in promising industries, technologies and entrepreneurs. They did not use the normal metrics for investing, like return on equity. Instead, they looked at creation of companies and jobs and the amount of tax revenue flowing from the new economic activity. More here.
Saturday, May 22, 2010
Friday, May 21, 2010
Minnesota starts to shake off unemployment blues
Employers add 10,200 workers in April; jobless rate at 7.2%
By Julie Forster jforster@pioneerpress.com
Kristin Johnson was laid off in October from a marketing job at Target Corp. after six years with the retailer. When she started her job search, the market was grim. But in recent months, Johnson noticed a marked change in promising job postings. Last week, she clinched a new job at better pay and with similar benefits.
"I couldn't be happier," said Johnson, 30, who on Monday starts her job as a consumer marketing manager for a custom jewelry company in the Minneapolis warehouse district.
Johnson's story replayed thousands of times illustrates a labor market in recovery as employers start to hire again. Minnesota went into the recession ahead of the U.S., starting with an earlier downturn in the housing market. Now, it is coming out ahead of the nation.
Minnesota employers added 10,200 jobs in April, the state reported Thursday, helping to push the unemployment rate down slightly to 7.2 percent, versus 9.9 percent for the nation. That is the largest gap between the two on record.
The trend represents a return to normal. At the end of 2006, Minnesota had lost the historic advantage of having an unemployment rate better than the U.S. rate. Traditionally, Minnesota's rate had been 1.5 to 2.5 percentage points lower. For some of 2007, its jobless rate actually jumped above the national rate. In May 2009, the state had a full percentage point advantage, and the spread has been widening since.
In Minnesota, more people are finding work across a broad base of industries. Consumers are starting to spend again, and retail employers are hiring. The retail and wholesale trade sector showed strong signs of job growth. Manufacturers added jobs for the fourth month in a row, as factories ramped up to meet an increase in orders. Those sectors were particularly weak during the recession and are typically the first to lead a recovery.
Minnesota's economy wasn't as damaged as the economies of states such as California and Florida, which had more severe downturns in the housing and construction markets, said Scott Anderson, senior economist with Wells Fargo. More here.
By Julie Forster jforster@pioneerpress.com
Kristin Johnson was laid off in October from a marketing job at Target Corp. after six years with the retailer. When she started her job search, the market was grim. But in recent months, Johnson noticed a marked change in promising job postings. Last week, she clinched a new job at better pay and with similar benefits.
"I couldn't be happier," said Johnson, 30, who on Monday starts her job as a consumer marketing manager for a custom jewelry company in the Minneapolis warehouse district.
Johnson's story replayed thousands of times illustrates a labor market in recovery as employers start to hire again. Minnesota went into the recession ahead of the U.S., starting with an earlier downturn in the housing market. Now, it is coming out ahead of the nation.
Minnesota employers added 10,200 jobs in April, the state reported Thursday, helping to push the unemployment rate down slightly to 7.2 percent, versus 9.9 percent for the nation. That is the largest gap between the two on record.
The trend represents a return to normal. At the end of 2006, Minnesota had lost the historic advantage of having an unemployment rate better than the U.S. rate. Traditionally, Minnesota's rate had been 1.5 to 2.5 percentage points lower. For some of 2007, its jobless rate actually jumped above the national rate. In May 2009, the state had a full percentage point advantage, and the spread has been widening since.
In Minnesota, more people are finding work across a broad base of industries. Consumers are starting to spend again, and retail employers are hiring. The retail and wholesale trade sector showed strong signs of job growth. Manufacturers added jobs for the fourth month in a row, as factories ramped up to meet an increase in orders. Those sectors were particularly weak during the recession and are typically the first to lead a recovery.
Minnesota's economy wasn't as damaged as the economies of states such as California and Florida, which had more severe downturns in the housing and construction markets, said Scott Anderson, senior economist with Wells Fargo. More here.
Wednesday, May 19, 2010
GLIDE receives $75K to help budding companies
State Rep. Matt Lundy (D-Elyria) and State Sen. Sue Morano (D-Lorain) announced May 10 that the state will spend $75,000 to help a local program that encourages new high-tech companies to create jobs. The Great Lakes Innovation and Development Enterprise (GLIDE) will use the state funds to expand their services to more budding companies.
“To compete for high-tech jobs for Ohio the state must continue to invest in GLIDE. By helping the companies grow, we are able to grow new jobs for Ohio,” Lundy said.
GLIDE was founded in 2001 as a partnership between Lorain County Commissioners, Lorain County Community College and the Ohio Department of Development. Their mission is to promote job creation and economic growth in Lorain County and northern Ohio. GLIDE serves as a business incubator to support all facets of the start-up, development and growth of technology based companies. More here.
“To compete for high-tech jobs for Ohio the state must continue to invest in GLIDE. By helping the companies grow, we are able to grow new jobs for Ohio,” Lundy said.
GLIDE was founded in 2001 as a partnership between Lorain County Commissioners, Lorain County Community College and the Ohio Department of Development. Their mission is to promote job creation and economic growth in Lorain County and northern Ohio. GLIDE serves as a business incubator to support all facets of the start-up, development and growth of technology based companies. More here.
Chrysler to rehire 379 in Kokomo
Chrysler says it will rehire 379 laid-off workers and hire 20 new supervisors to build transmissions at its operations in Kokomo, Ind.
The company said Tuesday that it will invest $43 million in equipment to expand the Kokomo operations, which include casting and transmission plants.
Some of the workers have already been brought back, said Chrysler spokeswoman Jodi Tinson.
The factories will build components and transmissions that accompany four-cylinder engines in Chrysler, Dodge and Jeep small and midsize vehicles.
Chrysler says the investment was made possible because of a tax abatement granted by the City of Kokomo.
The company said Tuesday that it will invest $43 million in equipment to expand the Kokomo operations, which include casting and transmission plants.
Some of the workers have already been brought back, said Chrysler spokeswoman Jodi Tinson.
The factories will build components and transmissions that accompany four-cylinder engines in Chrysler, Dodge and Jeep small and midsize vehicles.
Chrysler says the investment was made possible because of a tax abatement granted by the City of Kokomo.
Business-friendly bills signed into law in Green Bay
BY NATHAN PHELPS •
nphelps@greenbaypressgazette.com • May 10,
2010
In an area continuing to weather the lingering effects of one of the worst economic downturns since the Great Depression, Gov. Jim Doyle on Monday signed several pieces of legislation aimed at creating and retaining jobs and industry in the state. More here.
nphelps@greenbaypressgazette.com • May 10,
2010
In an area continuing to weather the lingering effects of one of the worst economic downturns since the Great Depression, Gov. Jim Doyle on Monday signed several pieces of legislation aimed at creating and retaining jobs and industry in the state. More here.
Friday, May 14, 2010
Mich. economic agency defends itself after audit
By TIM MARTIN
LANSING, Mich.
The head of Michigan's economic development agency said it will defend itself Wednesday from lawmaker criticism after an audit said some companies that received tax incentives didn't live up to agreements on how much they would pay workers.
Michigan Economic Development Corp. CEO Greg Main said agency officials will detail their review and audit practices for the tax credits at a House Tax Policy Committee hearing.
The MEDC has been under fire since the auditor general report on Michigan Economic Growth Authority tax incentives was released last month. State Sen. Nancy Cassis, R-Novi, wants the auditor general to do a more thorough review of tax credits for the 2008 and 2009 tax years because much of the audit focused on earlier years.
Cassis called the report "troubling" and said further investigation is needed.
"To put Michigan back on the right track, we must regain confidence in state programs, like MEGA," Cassis said in a statement. "This is done by being watchful and accountable with taxpayer dollars."
But Main said the follow-up report Cassis ordered will just duplicate a similar review already has started within the MEDC.
MEDC officials are upset they didn't get a chance to testify at last week's hearing of the Senate Finance Committee, which Cassis chairs.
Main said the agency agreed with much of the audit, but he has issues with how it and the MEDC have been portrayed by some lawmakers.
"I think there was an attempt to impugn the integrity of this organization and the companies who have used this program," he said.
MEDC started audits of every tax credit awarded since 2006 before the auditor general report was released last month. Those audits, done with the help of an outside firm, are to verify job creation numbers reported by companies. The audits should be finished this year.
MEDC also began conducting pre-audits before issuing tax credit certificates to companies this year and doing criminal background checks on many types of tax credit applicants. Pre-audits include on-site visits and reviews of documentation needed for verifying the number of employees hired and wages paid by companies receiving tax credits.
Gov. Jennifer Granholm ordered the background checks after a convicted embezzler out on parole was awarded a $9 million tax incentive in March. The credit was rescinded before RASCO CEO Richard Short got any money, and he would up in jail.
LANSING, Mich.
The head of Michigan's economic development agency said it will defend itself Wednesday from lawmaker criticism after an audit said some companies that received tax incentives didn't live up to agreements on how much they would pay workers.
Michigan Economic Development Corp. CEO Greg Main said agency officials will detail their review and audit practices for the tax credits at a House Tax Policy Committee hearing.
The MEDC has been under fire since the auditor general report on Michigan Economic Growth Authority tax incentives was released last month. State Sen. Nancy Cassis, R-Novi, wants the auditor general to do a more thorough review of tax credits for the 2008 and 2009 tax years because much of the audit focused on earlier years.
Cassis called the report "troubling" and said further investigation is needed.
"To put Michigan back on the right track, we must regain confidence in state programs, like MEGA," Cassis said in a statement. "This is done by being watchful and accountable with taxpayer dollars."
But Main said the follow-up report Cassis ordered will just duplicate a similar review already has started within the MEDC.
MEDC officials are upset they didn't get a chance to testify at last week's hearing of the Senate Finance Committee, which Cassis chairs.
Main said the agency agreed with much of the audit, but he has issues with how it and the MEDC have been portrayed by some lawmakers.
"I think there was an attempt to impugn the integrity of this organization and the companies who have used this program," he said.
MEDC started audits of every tax credit awarded since 2006 before the auditor general report was released last month. Those audits, done with the help of an outside firm, are to verify job creation numbers reported by companies. The audits should be finished this year.
MEDC also began conducting pre-audits before issuing tax credit certificates to companies this year and doing criminal background checks on many types of tax credit applicants. Pre-audits include on-site visits and reviews of documentation needed for verifying the number of employees hired and wages paid by companies receiving tax credits.
Gov. Jennifer Granholm ordered the background checks after a convicted embezzler out on parole was awarded a $9 million tax incentive in March. The credit was rescinded before RASCO CEO Richard Short got any money, and he would up in jail.
Sunday, October 11, 2009
One year after ribbon cutting, Valley company closes it doors
By Arthur Foulkes
The Tribune-Star
A local company that expanded into a new 37,500-square-foot facility one year ago near the airport has closed its doors.
Reel Time Logistics officially opened a new warehouse and distribution facility just west of the Terre Haute International Airport–Hulman Field in October 2008. Now the doors of that business are locked and no truck or other traffic is visible at the facility.
“Reel Time Logistics, to our knowledge, is closed,” said Lisa Johnson, marketing and communications manager for the Terre Haute Economic Development Corp.
One year ago, Reel Time Logistics had a ribbon-cutting ceremony at its new facility on South Hunt Street to expressions of optimism about the company’s future.
At the time, the company was providing third-party logistics services for companies such as Dicks Sporting Goods, Clabber Girl, Great Dane Trailers, Scott Pet Products and Cummins-Consolidated Diesel Co., a company official said at the time.
Reel Time Logistic employed about 50 people in October 2008, mostly full-time truck drivers, another company official said.
The Reel Time Logistics property, which includes the 37,500-square-foot warehouse and distribution facility and 20 additional undeveloped acres, is listed for sale with an Indianapolis real estate company. The property includes a little more than 30 acres in total with an asking price of $2.25 million, according to the Turley Martin Tucker Web site.
Local contractor Thompson Thrift built the Reel Time Logistics facility. Reel Time was founded 51⁄2 years ago in Terre Haute and operated out of offices south of the city while its truck fleet was based on Margaret Avenue prior to opening the Hunt Street warehouse and distribution building.
Company officials for Reel Time Logistics could not be reached Friday for comment.
The Tribune-Star
A local company that expanded into a new 37,500-square-foot facility one year ago near the airport has closed its doors.
Reel Time Logistics officially opened a new warehouse and distribution facility just west of the Terre Haute International Airport–Hulman Field in October 2008. Now the doors of that business are locked and no truck or other traffic is visible at the facility.
“Reel Time Logistics, to our knowledge, is closed,” said Lisa Johnson, marketing and communications manager for the Terre Haute Economic Development Corp.
One year ago, Reel Time Logistics had a ribbon-cutting ceremony at its new facility on South Hunt Street to expressions of optimism about the company’s future.
At the time, the company was providing third-party logistics services for companies such as Dicks Sporting Goods, Clabber Girl, Great Dane Trailers, Scott Pet Products and Cummins-Consolidated Diesel Co., a company official said at the time.
Reel Time Logistic employed about 50 people in October 2008, mostly full-time truck drivers, another company official said.
The Reel Time Logistics property, which includes the 37,500-square-foot warehouse and distribution facility and 20 additional undeveloped acres, is listed for sale with an Indianapolis real estate company. The property includes a little more than 30 acres in total with an asking price of $2.25 million, according to the Turley Martin Tucker Web site.
Local contractor Thompson Thrift built the Reel Time Logistics facility. Reel Time was founded 51⁄2 years ago in Terre Haute and operated out of offices south of the city while its truck fleet was based on Margaret Avenue prior to opening the Hunt Street warehouse and distribution building.
Company officials for Reel Time Logistics could not be reached Friday for comment.
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