With auto industry slide, no reprieve in sight for Michigan economy

[Ming]

With auto industry slide, no reprieve in sight for Mich. economy
TIM MARTIN
Associated Press
3/3/07

HARRISON, Mich. - Laid-off factory worker Bob Rose fiddles with an unlit cigar and strokes his salt-and-pepper beard as he contemplates his future in Michigan.

He's not sure he has one.

Rose, 53, lost his job when an auto supplier closed nearly two years ago. His unemployment benefits run out in early April. None of the 20-plus jobs he has applied for has panned out. And when he asks headhunters about manufacturing employment options in his home state, the news isn't good.

"I say I'd like to stay in Michigan, and they say there is no work in Michigan," says Rose, taking a break from a worker retraining class at Mid Michigan Community College in Harrison. "You have to go to Tennessee, Illinois, Indiana - anywhere out of the state of Michigan."

As the home of Ford Motor Co., General Motors Corp. and the domestic division of DaimlerChrysler AG - as well as many suppliers - Michigan has borne the brunt of domestic automakers' decisions to close factories and cut workers. Efforts to lure high-tech and life science companies haven't been enough to offset the loss of auto-related jobs.

Rose lives in Prudenville, surrounded by the plentiful lakes and forests of the state's northern Lower Peninsula. Several counties in the region have unemployment rates near or above 10 percent, causing a swarm of job seekers whenever a new opportunity arises.

About 3,000 people applied for 150 available jobs at a Menards home improvement store opened in Mount Pleasant in February. Employers are seeing similar waves of applicants for many types of jobs.

But Michigan isn't creating many new positions. Unlike other states that more closely mirror the January national unemployment rate of 4.6 percent, Michigan's unemployment rate has largely hovered around 7 percent for the past four years. In December, the latest state rate available, it hit 7.1 percent - second-highest in the nation behind Mississippi.

Even if things turned around tomorrow, economists say it will take years before Michigan regains the jobs lost since state nonfarm seasonally adjusted employment peaked in June 2000. The state has lost more than 300,000 jobs - mostly in manufacturing - since then. The job loss has slowed in recent years but is expected to continue into 2008 as auto companies continue to cut back.

Per-person personal income has been below the national average since 2000. The housing market has struggled, with sales of existing homes dipping by more than 20 percent in some parts of the state last year. Foreclosures and personal bankruptcies have soared. Michigan has lost an estimated 22,500 people between the ages of 18 and 24 since 2000, one of the nation's highest outmigration rates.

Even the satire publication The Onion piled on recently in a mock article about Michigan closing its statewide unemployment offices. The benefits branches, the article joked, had "formed the backbone of the state economy" by providing jobs and outlasting the state's auto and manufacturing sectors.

Source: http://www.sunherald.com/mld/sunhera...s/16827428.htm



Mock Article: http://www.theonion.com/content/news...bs_as_michigan

Thousands Lose Jobs As Michigan Unemployment Offices Close

LANSING, MI—In another devastating blow to the state's already fragile economy, the Unemployment Insurance Agency of the state of Michigan permanently shuttered its nine branch offices Monday, leaving more than 8,500 unemployment employees unemployed.

Announcing the closings at a press conference, Michigan Gov. Jennifer Granholm called them "a tragic coda" to a once-vibrant industry that until this week defined the Michigan economy and served almost one-fifth of the state's employable population.

"This is a sad day for the people of Michigan," Granholm said to a crowd of part-time reporters and former assembly-line workers Tuesday. "Our state has a long, hallowed history of unemployment, and with these closings, we have lost a vital part of our economic and social fabric."

Since its inception in 1937, Michigan's unemployment benefits system has been among the nation's most productive, outlasting the state's automotive and other industrial and manufacturing sectors to become Michigan's most enduring job-provider.

For many, the closing of UIA marks an end of an era. Flint resident Martha Ayers recalled the "glory days" of the 1980s when the line of workers waiting to get inside each morning stretched around the block.

[hunchman]

I got to hand it to ya Ming ......you sure like to post threads that stir up controversy even if they are true.........I can see this one turning nasty

[unkillsam]

Does this mean that Toyota really isn't single-handedly saving the US economy by planning to build an 8th plant here?

My god, how can that be true?

[Slack]

And to think, this was mostly caused by people wanting to better themselves and their families financially and a few automotive giants riding the high tide and keeping their blinders on. The UAW and GM, in their quests' for wealth, and through greed and ignorance, are unraveling their greatest accomplishments at an alarming pace. (see second part of sig) I wouldn't blame anyone in particular, but there is enough blameto go around. It's terrible thing when people are out of work, but I just can't bring myself to feel sorry for them.

[plane]

Don't worry.
Don't give it a second thought.
Don't even consider purchasing a domestic vehicle.
Just go purchase that foreign vehicle.
Jump in that import.
Feel the rich leather and magnificent logo.
It won't affect you at all.
Don't worry about your country.
After all, it's really all about you.

(Baby Captain America approves this selfish message.)

[unkillsam]

Originally Posted by plane

Don't worry.
Don't give it a second thought.
Don't even consider purchasing a domestic vehicle.
Just go purchase that foreign vehicle.
Jump in that import.
Feel the rich leather and magnificent logo.
It won't affect you at all.
Don't worry about your country.
After all, it's really all about you.

(Baby Captain America approves this selfish message.)

Yeah, I'm wondering what those people drive up there. I'm sure domestic ownership is higher in Michigan then the rest of the country, but I have traveled thru that state and saw a fair amount of imports driving around as well.

[Angry Dad]

Originally Posted by Slack

And to think, this was mostly caused by people wanting to better themselves and their families financially and a few automotive giants riding the high tide and keeping their blinders on. The UAW and GM, in their quests' for wealth, and through greed and ignorance, are unraveling their greatest accomplishments at an alarming pace. (see second part of sig) I wouldn't blame anyone in particular, but there is enough blameto go around. It's terrible thing when people are out of work, but I just can't bring myself to feel sorry for them.

What blinders?

What ignorance?

If any it's trusting a government that pledges itself to serve the people, lives by the line "we the people" but instead only cares about keeping their own job.

There's no denying there are flaws in in union management and management itself. But there is beyond any doubt an effort by some countries to exploit the richest market while insuring themselves no exposure to risk. You want to place blame, there's plenty. But you better be willing to say and prove it's a level playing field and there's no way you can. Let's face it, the unions have proven themselves to being flexible, management is willing to accept blame, some countries refuse to change policy. I'd say thats the biggest problem.

[Slack]

Originally Posted by Angry Dad

What blinders?

What ignorance?

If any it's trusting a government that pledges itself to serve the people, lives by the line "we the people" but instead only cares about keeping their own job.

There's no denying there are flaws in in union management and management itself. But there is beyond any doubt an effort by some countries to exploit the richest market while insuring themselves no exposure to risk. You want to place blame, there's plenty. But you better be willing to say and prove it's a level playing field and there's no way you can. Let's face it, the unions have proven themselves to being flexible, management is willing to accept blame, some countries refuse to change policy. I'd say thats the biggest problem.

GM management and the UAW were blind to the fact that competition was coming. Blind to the fact that half ass badge engineering in the late 70's, 80's and 90's was making money in the short term by financing their future. GM showed complete ignorance in what customers wanted by building the same car and changing the grill and a few interior bits to justify their differences. Ignorance by lettting the bean counters undo anything that might have been accomplished by design teams or engineering. I'm not saying bean counters are unnecessary, but success requires everyone to have a seat at the table.

Expectation of a level playing field is the surest way to failure.

[1G6]

Originally Posted by plane

Don't worry.
Don't give it a second thought.
Don't even consider purchasing a domestic vehicle.
Just go purchase that foreign vehicle.
Jump in that import.
Feel the rich leather and magnificent logo.
It won't affect you at all.
Don't worry about your country.
After all, it's really all about you.

(Baby Captain America approves this selfish message.)

Awesome.

[PRO_USA1776]

nah, doesn't matter where your car is made and by whom....DEC 8 1941, what would you have driven?

[WishIhadatruck]

Originally Posted by unkillsam

Yeah, I'm wondering what those people drive up there. I'm sure domestic ownership is higher in Michigan then the rest of the country, but I have traveled thru that state and saw a fair amount of imports driving around as well.

Depends on where you go in the state. Some areas are 90+% domestic I would guess but if you get into certain areas it is largly imports it seems. I work in a town along Lake Michigan and you see a lot more imports there than towards the middle of the state where I grew up. Of the 4 houses on my street there is one import, a Kia. The rest are GM or Ford.

Back in 1995 I went to the only NASCAR race a I've ever been to at Michigan International Speedway. We parked in somone's field within walking distance along with a few hundred other cars. I noticed when we pulled out and were sitting in the traffic jam that there was not a single import brand car to be seen. I wonder if it is still like that? I'm not a huge race car fan but I'd almost be willing to go back just to see how things have changed.

Luckily I'm no longer in the auto industry but the job market sure sucks here in MI. Luckily I'm on the west side of the state where things are better. The Delphi plant I used to work at should be closed up by the end of the year. Most of the engineers I used to work with have found jobs and some of them near where I work now so we still get together for lunch at times. I'm glad I left 6 years ago when jobs were easier to come by. It is sad to see. There used to be 1000 people working at that plant and soon it will be empty. It was in a smaller town and made up much of the towns tax income. The town will be hurting as well but they have been planning for it for couple of years. Sad.

[paul8488]

Many suggest Toyota is making up for the loss of domestic plants... why don't these people just go work for all the new Toyota plants opening up in Michigan?

[LAMRONH]

Japan is an island nation whose only significant resource is its people.
England is an island nation with ditto resources. Brittania used to rule the waves, and the world.

There has to be a solution to Michigan's problem.
The same old corrupt, finger pointing CYA political "leadership" is not part of it IMO. Michigan will need far, far better than Jennifer and Kwafami to lead them out of this mess.

It sounds like a defeated state in an economic and emotional depression. Hoping a Home Depot or Wal Mart will move into town isn't the solution. Getting out ahead of the curve, researching and manufacturing items like solar panels and windmills and cheap, efficient building materials like styro-cement blocks...

The leadership at the auto companies, as some here have said, was and is still focused on quarterly profits and short term "results" that are meaningless or counter-productive for long term economic strength.

When the voters keep returning ciphers to high office, they will continue to get what they got. Politicians who appeal to the free money mentality and the them vs. us mindset are not the way out of this mess.

[DuSpinnst]

People in Michigan are for the most part stupid. People who live here who buy imports (specifically Camry and Accord owners) DO NOT think they are hurting themselves. They don't realize that in Michigan there is only ONE INDUSTRY, the domestic auto in dusty. If you don't support it, then in the long term you are slitting your own throat in this state.

How you ask, well higher unemployment causes demand for housing to go down, causing the price of housing to plummet. Since most people expect to get more out of the house than they paid, a market such as this can be devastating.

But whatever the way we vote and the way our government is just proves that our state is a bunch of retards. Of course I refuse to leave, because it can't get much worse than it is now (and my life is pretty good).

[CBGTO24]