Story first appeared in The Detroit Free Press.
The Michigan Governor said Monday that he considers talent to be the state’s most valuable resource and said his goal is to keep people in the state who have valuable skills, including foreigners who study at the state’s colleges. He told a group of about 40 recently hired Chrysler employees that he is probably the most pro-immigration governor in the United States.
The United States became economically strong in part because immigrants who came to America seeking a better life became entrepreneurs and sought degrees in higher education.
There are now immigration laws set up in the U.S. that say we’re going to educate these really bright people, and then basically tell them to get out.
Snyder’s comments came in response to a question about the promotion of diversity in Michigan from a Chrysler employee. The governor spoke to employees for about 10 minutes before fielding questions about tourism, the state’s unemployment outlook and the quality of available jobs in the state.
Michigan’s unemployment rate has dropped from a high of 14.2% in August 2009 to 8.5% in March as the automotive industry has begun to recover and hire more workers. But the Michigan governor feels that the rate is still too high.
Chrysler’s progress under majority owner Fiat is a model that the state should follow as the state works to reinvent itself.
Under majority owner Fiat, Chrysler reported its first profit in years in 2011 and its first quarter earnings of $473 million were nearly four times its earnings for the same period last year. As Fiat and Chrysler get closer to a full merger it is hoped that the state’s available talent and proposal to reform the state’s personal property taxes will encourage the company to pick Auburn Hills as its global headquarters.
They are an industrial company that is dong fabulous work, that reform would actually make Michigan a much more competitive place and really encourage them to be here.
The governor declined to provide any specific updates to his efforts to reach an agreement to build a new international bridge across the Detroit River.
Snyder met in Windsor Thursday with the Canadian Transport Minister to work on a plan with Canadian officials, despite a lack of support from the Michigan Legislature.
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09 May 2012
Auction of Michigan Oil & Gas Leases Attracts Protesters
Story first appeared in The Detroit Free Press.
An auction of state-owned oil and gas leases attracted a throng of protesters and bidders Tuesday, the latter shelling out more than $3.6 million for the drilling rights to more than 90,000 acres across Lower Michigan.
All of the 18,347 acres on the auction block in Oakland County -- some surrounding popular and exclusive lakes in West Bloomfield and Commerce Township -- were sold, bringing in more than $616,000.
A representative of the company that obtained much of the Oakland County acreage, Jordan Development of Traverse City, said discussion of development plans was premature.
Jordan has operating oil and gas wells in Jackson and Calhoun counties but has no immediate plans for new wells in southeast Michigan. All of the Oakland County acreage is classified as nondevelopment, meaning that no drilling would be permitted on the surface; any extraction would have to be through directional drilling from nearby.
The auction also featured 23,419 acres in Barry County in west Michigan, much of it in and around the Yankee Springs state recreation area. That brought out a crowd of protesters to Constitution Hall in Lansing and resulting in several brief disruptions.
One protester, who stood up as bids were being taken and began to talk over the auctioneer, was taken into custody.
The focus of much of the opposition was on a drilling technique called hydraulic fracturing, or fracking, which opponents believe can lead to contamination of water resources.
One of those carrying an anti-fracking sign outside the hall was worried about the health impacts.
State regulators counter that Michigan has some of the most stringent safety rules in the country, and decades of relatively problem-free experience with fracked wells.
Tuesday's auction prices were far short of the record $178 million two years ago.
Any proposed drilling in the West Bloomfield area around Cass Lake will meet with stiff opposition. West Bloomfield is slated to take up a proposed resolution Monday that would ban drilling and fracking in the township.
Jordan Development said that the company hoped to avoid conflict if plans proceeded to drill. They have done a lot of development in northern Michigan in areas with residential and resort development, and price themselves on getting along with people.
For more local and Michigan business related news, visit the Michigan Business News blog.
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For healthcare and medical related news, visit the Healthcare and Medical blog.
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An auction of state-owned oil and gas leases attracted a throng of protesters and bidders Tuesday, the latter shelling out more than $3.6 million for the drilling rights to more than 90,000 acres across Lower Michigan.
All of the 18,347 acres on the auction block in Oakland County -- some surrounding popular and exclusive lakes in West Bloomfield and Commerce Township -- were sold, bringing in more than $616,000.
A representative of the company that obtained much of the Oakland County acreage, Jordan Development of Traverse City, said discussion of development plans was premature.
Jordan has operating oil and gas wells in Jackson and Calhoun counties but has no immediate plans for new wells in southeast Michigan. All of the Oakland County acreage is classified as nondevelopment, meaning that no drilling would be permitted on the surface; any extraction would have to be through directional drilling from nearby.
The auction also featured 23,419 acres in Barry County in west Michigan, much of it in and around the Yankee Springs state recreation area. That brought out a crowd of protesters to Constitution Hall in Lansing and resulting in several brief disruptions.
One protester, who stood up as bids were being taken and began to talk over the auctioneer, was taken into custody.
The focus of much of the opposition was on a drilling technique called hydraulic fracturing, or fracking, which opponents believe can lead to contamination of water resources.
One of those carrying an anti-fracking sign outside the hall was worried about the health impacts.
State regulators counter that Michigan has some of the most stringent safety rules in the country, and decades of relatively problem-free experience with fracked wells.
Tuesday's auction prices were far short of the record $178 million two years ago.
Any proposed drilling in the West Bloomfield area around Cass Lake will meet with stiff opposition. West Bloomfield is slated to take up a proposed resolution Monday that would ban drilling and fracking in the township.
Jordan Development said that the company hoped to avoid conflict if plans proceeded to drill. They have done a lot of development in northern Michigan in areas with residential and resort development, and price themselves on getting along with people.
For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
For law related news, visit the Nation of Law blog.
For real estate and home related news, visit the Commercial and Residential Real Estate blog.
For technology and electronics related news, visit the Electronics America blog.
For organic SEO and web optimization related news, visit the SEO Done Right blog.
07 May 2012
Detroit May Have to File Bankruptcy
Story first appeared in The Detroit News.
Some Lansing Bankruptcy Lawyers contend bankruptcy still is possible for Detroit, despite a recently signed agreement with the state to financially restructure the city.
Many don't want to openly talk about the possibility, but others contend a Chapter 9 bankruptcy is possible if the economy further stalls or efforts falter to control municipal legacy costs and expenses.
Strategically, bankruptcy has to be kept on the table. There is no less probability of bankruptcy than there was previously. As a practical matter, the collateral damage from a bankruptcy may be so great that in the end the governor simply would simply not allow it to happen.
By law, Michigan cities can't file for bankruptcy unless they are under an emergency manager. The threat of one last month prompted the Mayor and the City Council to sign a consent agreement this month to create a nine-member financial advisory board and hire a chief financial officer and program management director to manage key reforms.
Last week, the Michigan Governor repeated his opposition to bankruptcy, but he refused to take it off the table should the consent agreement fail.
That's a hypothetical. As a practical matter, to say absolutely anything is a very dangerous proposition. The idea is to try to avoid it by working together but that's depending on us progressing.
The governor said he wants the reforms in Detroit to take place quickly so that issue starts going into the background and not becoming relevant.
The mayor has said repeatedly that he opposes bankruptcy but argued any restructuring would fail without some extra financial assistance from the state.
A State Rep. who serves on the House appropriations committee, said there's still some fear that Detroit could have to file Chapter 9. He noted the city faces incredible challenges with the consent agreement, including approval of a three-year budge for the first time in history. But he said some restructuring is necessary to keep the city from bankruptcy.
If the city doesn't get any money, the answer to that question is, yes, there is a possibility that that could happen.
Whispers of bankruptcy began late last year when the mayor announced that the city could run out of cash by April.
That prompted the governor to order a fiscal review of the city and create a financial review team to pore through the city's books. Its review prompted the governor to press for a consent agreement.
To solve its immediate cash crunch, the city borrowed $137 million in state-backed bonds.
The city has long-term liabilities of $12 billion and risks losing millions more if its credit rating is downgraded, according to Traverse City Bankruptcy Lawyers.
Bankruptcy would be a costly alternative that would cost taxpayers millions as the process could take up to five years, experts say. One advantage: Unlike an emergency manager, a bankruptcy judge could restructure bonds or debts to vendors.
Should it happen, Detroit would be the largest city to file for bankruptcy. Cleveland defaulted on its bank loans in the late 1970s but never filed, say Chicago Bankruptcy Lawyers.. There were bankruptcy filings in Orange County in 1994 and Vallejo, Calif., in 2008 and both came through Chapter 9 after their finances were restructured.
A former chief of the Detroit Police Department who recently served on the governor's financial review board for the city, said there's no danger of bankruptcy unless Detroit fails to adhere to the financial agreement. That's unlikely because of consent agreement safeguards including the hiring of a chief financial officer and program management director. If there's a failure in any of those areas, there's that possibility.
The hard decisions still have to be made, and they are going to have to be made on things like how many employees can the city afford, what functions are going to have to be spun off to other providers, what functions are simply going to be eliminated altogether.
For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
For law related news, visit the Nation of Law blog.
For real estate and home related news, visit the Commercial and Residential Real Estate blog.
For technology and electronics related news, visit the Electronics America blog.
For organic SEO and web optimization related news, visit the SEO Done Right blog.
Some Lansing Bankruptcy Lawyers contend bankruptcy still is possible for Detroit, despite a recently signed agreement with the state to financially restructure the city.
Many don't want to openly talk about the possibility, but others contend a Chapter 9 bankruptcy is possible if the economy further stalls or efforts falter to control municipal legacy costs and expenses.
Strategically, bankruptcy has to be kept on the table. There is no less probability of bankruptcy than there was previously. As a practical matter, the collateral damage from a bankruptcy may be so great that in the end the governor simply would simply not allow it to happen.
By law, Michigan cities can't file for bankruptcy unless they are under an emergency manager. The threat of one last month prompted the Mayor and the City Council to sign a consent agreement this month to create a nine-member financial advisory board and hire a chief financial officer and program management director to manage key reforms.
Last week, the Michigan Governor repeated his opposition to bankruptcy, but he refused to take it off the table should the consent agreement fail.
That's a hypothetical. As a practical matter, to say absolutely anything is a very dangerous proposition. The idea is to try to avoid it by working together but that's depending on us progressing.
The governor said he wants the reforms in Detroit to take place quickly so that issue starts going into the background and not becoming relevant.
The mayor has said repeatedly that he opposes bankruptcy but argued any restructuring would fail without some extra financial assistance from the state.
A State Rep. who serves on the House appropriations committee, said there's still some fear that Detroit could have to file Chapter 9. He noted the city faces incredible challenges with the consent agreement, including approval of a three-year budge for the first time in history. But he said some restructuring is necessary to keep the city from bankruptcy.
If the city doesn't get any money, the answer to that question is, yes, there is a possibility that that could happen.
Whispers of bankruptcy began late last year when the mayor announced that the city could run out of cash by April.
That prompted the governor to order a fiscal review of the city and create a financial review team to pore through the city's books. Its review prompted the governor to press for a consent agreement.
To solve its immediate cash crunch, the city borrowed $137 million in state-backed bonds.
The city has long-term liabilities of $12 billion and risks losing millions more if its credit rating is downgraded, according to Traverse City Bankruptcy Lawyers.
Bankruptcy would be a costly alternative that would cost taxpayers millions as the process could take up to five years, experts say. One advantage: Unlike an emergency manager, a bankruptcy judge could restructure bonds or debts to vendors.
Should it happen, Detroit would be the largest city to file for bankruptcy. Cleveland defaulted on its bank loans in the late 1970s but never filed, say Chicago Bankruptcy Lawyers.. There were bankruptcy filings in Orange County in 1994 and Vallejo, Calif., in 2008 and both came through Chapter 9 after their finances were restructured.
A former chief of the Detroit Police Department who recently served on the governor's financial review board for the city, said there's no danger of bankruptcy unless Detroit fails to adhere to the financial agreement. That's unlikely because of consent agreement safeguards including the hiring of a chief financial officer and program management director. If there's a failure in any of those areas, there's that possibility.
The hard decisions still have to be made, and they are going to have to be made on things like how many employees can the city afford, what functions are going to have to be spun off to other providers, what functions are simply going to be eliminated altogether.
For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
For law related news, visit the Nation of Law blog.
For real estate and home related news, visit the Commercial and Residential Real Estate blog.
For technology and electronics related news, visit the Electronics America blog.
For organic SEO and web optimization related news, visit the SEO Done Right blog.
Dow Chemical Expands into Africa
Dow Chemical Co., the largest U.S. chemicals producer, said it expects sales in Africa to at least double within three years as demand for its products including water-purification systems and building materials grows.
The company, based in Midland, Michigan, inaugurated an office in Nairobi yesterday that will serve the East African region, the Chief Executive Officer said yesterday in an interview in the Kenyan capital. Dow, which has an annual capital investment budget of $2.5 billion, will initially spend an average of $30 million per year in Africa on areas including manufacturing facilities to grow its sales.
Dow has been reviewing opportunities in Africa and really reinforcing our commitment to the continent. This is a multibillion dollar opportunity for Dow. We are less than a billion dollars revenue today and most of that is centered in southern Africa and northern Africa.
Economic growth in Africa may average 5 percent over the next two decades as the continent boosts its manufacturing capacity, diversifies trade by reducing its reliance on agriculture and invests in infrastructure including power supply, the United Nations Economic Commission for Africa said in a report in March. Growth averaged more than 5 percent between 2000 and 2010, helped by improved economic management and rising prices for its commodities, it said.
Dow has manufacturing facilities in 37 countries and sales offices in 160 nations. It spends $1.7 billion on research and development annually, with two thirds of sales generated outside the U.S.
Growing Manufacturing
Strategies are in place to continue growing outside the U.S., by utilizing manufacturing facilities, value add and over time, research and development.
Dow, founded in 1897 as a bleach maker, is the world’s biggest producer of ethylene, chlorine, epoxy resins and linear low-density polyethylene plastic. It’s the world’s second- biggest chemical maker by revenue behind Germany’s BASF SE.
The strategy to grow sales in eastern Africa will begin with importing products into the regional market, warehousing and working with global supply chains, Liveris said. Over time, the company may introduce manufacturing and eventually research and development facilities in the region, he said.
In partnership with Saudi Arabian Oil Co., a state-owned energy supplier, Dow is currently building the Sadara Chemical complex in Saudi Arabia at a cost of $20 billion. The plant is expected to begin production in 2015 with 40 percent of output being exported to Asia and as much as 35 percent to the Middle East and Africa.
For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
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The company, based in Midland, Michigan, inaugurated an office in Nairobi yesterday that will serve the East African region, the Chief Executive Officer said yesterday in an interview in the Kenyan capital. Dow, which has an annual capital investment budget of $2.5 billion, will initially spend an average of $30 million per year in Africa on areas including manufacturing facilities to grow its sales.
Dow has been reviewing opportunities in Africa and really reinforcing our commitment to the continent. This is a multibillion dollar opportunity for Dow. We are less than a billion dollars revenue today and most of that is centered in southern Africa and northern Africa.
Economic growth in Africa may average 5 percent over the next two decades as the continent boosts its manufacturing capacity, diversifies trade by reducing its reliance on agriculture and invests in infrastructure including power supply, the United Nations Economic Commission for Africa said in a report in March. Growth averaged more than 5 percent between 2000 and 2010, helped by improved economic management and rising prices for its commodities, it said.
Dow has manufacturing facilities in 37 countries and sales offices in 160 nations. It spends $1.7 billion on research and development annually, with two thirds of sales generated outside the U.S.
Growing Manufacturing
Strategies are in place to continue growing outside the U.S., by utilizing manufacturing facilities, value add and over time, research and development.
Dow, founded in 1897 as a bleach maker, is the world’s biggest producer of ethylene, chlorine, epoxy resins and linear low-density polyethylene plastic. It’s the world’s second- biggest chemical maker by revenue behind Germany’s BASF SE.
The strategy to grow sales in eastern Africa will begin with importing products into the regional market, warehousing and working with global supply chains, Liveris said. Over time, the company may introduce manufacturing and eventually research and development facilities in the region, he said.
In partnership with Saudi Arabian Oil Co., a state-owned energy supplier, Dow is currently building the Sadara Chemical complex in Saudi Arabia at a cost of $20 billion. The plant is expected to begin production in 2015 with 40 percent of output being exported to Asia and as much as 35 percent to the Middle East and Africa.
For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
For law related news, visit the Nation of Law blog.
For real estate and home related news, visit the Commercial and Residential Real Estate blog.
For technology and electronics related news, visit the Electronics America blog.
For organic SEO and web optimization related news, visit the SEO Done Right blog.
Michigan Tourist Economy Gets Boost from Early Spring
Story first appeared in The Detroit News.
The Grand Hotel on Mackinac Island officially opens this weekend, signaling the beginning of Michigan's spring-summer tourism season. Its staff is already smiling wide, not only because this year marks the 125th anniversary for the iconic hotel, but because reservations for the 385-room hotel are up 4 percent over this period last year. Some summer weekends are nearly sold out.
Guests are ready to vacation and planning earlier, which bodes well for the travel industry.
So, too, are other businesses that make up Michigan's $17 billion tourism industry. The state expects a 6 percent jump in tourism spending this year, according to a forecast by Michigan State University tourism professors Dan McCole and Sarah Nicholls. That's even after last year's busier-than-expected travel season, marking a third consecutive year of a travel spending recovery.
Furthermore, average gasoline prices statewide fell below $4 a gallon during the past month, lightening the travel budget burden.
Even if fuel costs spike above the sensitive $4-a-gallon threshold, the impact will be low. People are going to vacation no matter what, they will find a way to afford it. They will cut back on souvenirs or dinners out to offset any rising gas prices.
Mother Nature will be the driving force behind a superior season. Just as Michigan's warmer-than-usual winter weather hurt the snowmobiling and ski industry this year, a rainy or cool summer can scare off the all important last minute traveler.
Research finds that 30 percent of travelers book trips six days or fewer before departure, allowing them to consult the weather forecast. If the traveler is affluent, the number climbs to 38 percent.
The weather has already helped businesses in Saugatuck, a western Michigan arts community. March's warm temperatures brought vacationers to Saugatuck earlier than usual. People began planning earlier because of the early spring.
It helps, too, that there is pent-up demand to take an escape, since many winter jaunts were canceled after lack of snow.
Michiganians also will be competing for reservations with tourists from other states.
The Tim Allen-voiced Pure Michigan ad campaign brought record numbers of out-of-state visitors to Michigan in 2011, a study by Longwoods International shows. It motivated an estimated 3.2 million trips to Michigan last year, with 1.2 million tourists crossing borders to get here.
Those visitors spent $1 billion at Michigan businesses, paying $70 million in Michigan taxes. Michigan increased the advertising budget to $12 million this year, so those numbers should be even bigger.
For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
For law related news, visit the Nation of Law blog.
For real estate and home related news, visit the Commercial and Residential Real Estate blog.
For technology and electronics related news, visit the Electronics America blog.
For organic SEO and web optimization related news, visit the SEO Done Right blog.
The Grand Hotel on Mackinac Island officially opens this weekend, signaling the beginning of Michigan's spring-summer tourism season. Its staff is already smiling wide, not only because this year marks the 125th anniversary for the iconic hotel, but because reservations for the 385-room hotel are up 4 percent over this period last year. Some summer weekends are nearly sold out.
Guests are ready to vacation and planning earlier, which bodes well for the travel industry.
So, too, are other businesses that make up Michigan's $17 billion tourism industry. The state expects a 6 percent jump in tourism spending this year, according to a forecast by Michigan State University tourism professors Dan McCole and Sarah Nicholls. That's even after last year's busier-than-expected travel season, marking a third consecutive year of a travel spending recovery.
Furthermore, average gasoline prices statewide fell below $4 a gallon during the past month, lightening the travel budget burden.
Even if fuel costs spike above the sensitive $4-a-gallon threshold, the impact will be low. People are going to vacation no matter what, they will find a way to afford it. They will cut back on souvenirs or dinners out to offset any rising gas prices.
Mother Nature will be the driving force behind a superior season. Just as Michigan's warmer-than-usual winter weather hurt the snowmobiling and ski industry this year, a rainy or cool summer can scare off the all important last minute traveler.
Research finds that 30 percent of travelers book trips six days or fewer before departure, allowing them to consult the weather forecast. If the traveler is affluent, the number climbs to 38 percent.
The weather has already helped businesses in Saugatuck, a western Michigan arts community. March's warm temperatures brought vacationers to Saugatuck earlier than usual. People began planning earlier because of the early spring.
It helps, too, that there is pent-up demand to take an escape, since many winter jaunts were canceled after lack of snow.
Michiganians also will be competing for reservations with tourists from other states.
The Tim Allen-voiced Pure Michigan ad campaign brought record numbers of out-of-state visitors to Michigan in 2011, a study by Longwoods International shows. It motivated an estimated 3.2 million trips to Michigan last year, with 1.2 million tourists crossing borders to get here.
Those visitors spent $1 billion at Michigan businesses, paying $70 million in Michigan taxes. Michigan increased the advertising budget to $12 million this year, so those numbers should be even bigger.
For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
For law related news, visit the Nation of Law blog.
For real estate and home related news, visit the Commercial and Residential Real Estate blog.
For technology and electronics related news, visit the Electronics America blog.
For organic SEO and web optimization related news, visit the SEO Done Right blog.
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