West Michigan Economy Articles

[GRDadof3]

Fulton Innovations (eCoupled technology) has now partnered with Energizer Battery Inc.. I think they're on the cusp of really taking off.

http://www.marketwatch.com/news/story/Ener...8-46CAA31DEA73}

Especially with this new consortium they have formed that includes Sanyo, Philips, Logitech, Olympus, National Semiconductor, Sang Fei and TI:

http://www.wirelesspowerconsortium.com/

[fotoman311]

This is only tangentially related to the West Michigan economy, but what do you think would happen to Schuler's Books and Music if Borders were to declare bankruptcy. It is my understanding that Borders is their main book supplier. Is this correct, incorrect? Are there alternative suppliers that they could purchase from? There is a large independent bookstore similar to Schulers in Urbana, IL, called Pages for All Ages. There must be other suppliers for larger scale independent bookstores.

I was just pondering this today as I read in the WSJ about Borders' attempts to cut their costs and remain solvent during this recession.

http://online.wsj.com/article/SB123116358050653669.html

[suydam]

This is only tangentially related to the West Michigan economy, but what do you think would happen to Schuler's Books and Music if Borders were to declare bankruptcy. It is my understanding that Borders is their main book supplier. Is this correct, incorrect? Are there alternative suppliers that they could purchase from? There is a large independent bookstore similar to Schulers in Urbana, IL, called Pages for All Ages. There must be other suppliers for larger scale independent bookstores.

I was just pondering this today as I read in the WSJ about Borders' attempts to cut their costs and remain solvent during this recession.

http://online.wsj.com/article/SB123116358050653669.html

[fotoman311]

Yes, Borders is the supplier for Schulers. Hopefully they would just switch to someone else.

There are still a smattering of high-quality, large-scale independents across the country.

Powell's is my personal favorite. I've even ordered from them online.

[mpchicago]

I'm surprised by this announcement from Wolverine. Even companies that seem to be "doing well" are cutting.

[GR Jackson]

I'm surprised by this announcement from Wolverine. Even companies that seem to be "doing well" are cutting.

[Yankee Fan]

I don't understand the wage freeze and bonus cuts if they have record profits.

[GRDadof3]

I know there's a lot of other economic news right now, but two local healthcare related companies are in the buying mood:

Grand Rapids medical equipment maker buys Philadelphia-based competitor

by Matt Vande Bunte {sodEmoji.{sodEmoji.|}} The Grand Rapids Press

Friday January 09, 2009, 10:05 PM

GRAND RAPIDS -- A local manufacturer aims to expand its reach into the sterile-grade medical packaging market by acquiring a Philadelphia-based competitor.

Oliver Medical Packaging has purchased TOLAS Healthcare Packaging, the company announced.

http://www.mlive.com/grpress/business/inde..._equipment.html

Ranir, LLC Announces the Acquisition of Placontrol, Inc.

GRAND RAPIDS, Mich., Jan. 12 /PRNewswire/ -- Ranir, LLC, a leading consumer products oral care company, announced today that it has acquired Placontrol, Inc., a foremost manufacturer and marketer of interdental oral care products under the Plackers

[Yankee Fan]

I thought that this was pretty interesting.

Good for these guys for giving it a go.

http://www.mlive.com/business/west-michiga..._dont_like.html

[GRDadof3]

This is interesting. A company that has licensed its residential wind turbine technology to Honeywell is looking to open a plant in Muskegon, creating about 200 jobs:

http://www.mlive.com/news/muskegon/index.s...nd_turbine.html

The really interesting aspect of this technology is that the turbine produces power at the tips of the blades, which are moving much faster (producing more efficient power), than the slower spinning hub. It can produce power at as little as a 2mph wind. It was developed by the previous director of MAREC in Muskegon.

The article mentions that they only provide about 15% of an average household's electricity of 10,000 KWH/Yr. We only use 5000 KWH/Year in our household.

[GRDadof3]

LED light manufacturer Hilux in Hudsonville is expanding and adding 32 new jobs:

http://www.mlive.com/business/west-michiga..._in_jamest.html

[RegalTDP]

WM Business News has a piece analyzing a recent GVSU study on Grand Rapids' entrepreneurship compared with other cities:

DIY Attitude Won't Help Draw Entrepreneurs - MLive

[GRDadof3]

WM Business News has a piece analyzing a recent GVSU study on Grand Rapids' entrepreneurship compared with other cities:

DIY Attitude Won't Help Draw Entrepreneurs - MLive

[RegalTDP]

Call me a cynic, but I've seen enough economic reports about what's wrong with Michigan and West Michigan that I could vomit. A lot of times, these economic reports cause legislators to enact policies that actually increase bureaucracy. Just make West Michigan an attractive place for business and the entrepreneurs will be thick enough, and college grads will stick around to fill the jobs that need to be filled.

[GRDadof3]

Well, I didn't see this particular article as calling for more legislative action, but was rather calling out the community for not taking advantage of all the money outside West Michigan - including from federal policies that are already in place.

I'm pretty happy with GR's direction, but I'm one of those "never satisfied" types.

[Yankee Fan]

I thought that I would share some facts on employment trends to add a little substance to the economic conversation:

1. College-Level Unemployment is at 4.3% which is much lower than the numbers for those without a degree. This is resulting in a shortage of degreed candidates in many major markets, including in Grand Rapids.

2. While there has been an obvious slowdown in hiring over the past year, most companies did not over hire in previous years. Because most companies have continued to run lean, the concern is that everyone will start hiring all at once, driving up the salary marks at a ridiculous pace. (Think baseball free agency)

3. As baby boomers begin to retire (and they will, at some point, begin to retire), the workforce will stop growing. The U.S. has always been able to count on an expanding labor force. But as the boomers are replaced by a smaller generation, the number of workers between the prime working ages of 25-54 will stagnate creating additional workforce shortages.

4. They are expecting there to be a college educated workforce shortage of 14 million by 2020.

5. Combining the projected workforce shortage with the retirement of baby boomers will actually create a significant opportunity for sectors of our population that in the past have struggled with receiving a fair chance because of discrimination or other reasons. It also will create quite a problem at higher levels of management as inexperienced employees will have to take on responsibilities that they may not be ready for.

6. Highly skilled niches are in high demand/ limited supply. Competition by companies for top-talent in these areas continues to escalate.

Needless to say, these numbers represent a good reason to go home and talk to our children tonight about the importance of a college education. While a degree does not assure you of success, these facts are pretty convincing that it can make a big difference. And, with the projected shortage coming, the more educated you are, then in theory the more you can expect to see in opportunities and in compensation.

[BGIII]

I thought that I would share some facts on employment trends to add a little substance to the economic conversation:

1. College-Level Unemployment is at 4.3% which is much lower than the numbers for those without a degree. This is resulting in a shortage of degreed candidates in many major markets, including in Grand Rapids.

2. While there has been an obvious slowdown in hiring over the past year, most companies did not over hire in previous years. Because most companies have continued to run lean, the concern is that everyone will start hiring all at once, driving up the salary marks at a ridiculous pace. (Think baseball free agency)

3. As baby boomers begin to retire (and they will, at some point, begin to retire), the workforce will stop growing. The U.S. has always been able to count on an expanding labor force. But as the boomers are replaced by a smaller generation, the number of workers between the prime working ages of 25-54 will stagnate creating additional workforce shortages.

4. They are expecting there to be a college educated workforce shortage of 14 million by 2020.

5. Combining the projected workforce shortage with the retirement of baby boomers will actually create a significant opportunity for sectors of our population that in the past have struggled with receiving a fair chance because of discrimination or other reasons. It also will create quite a problem at higher levels of management as inexperienced employees will have to take on responsibilities that they may not be ready for.

6. Highly skilled niches are in high demand/ limited supply. Competition by companies for top-talent in these areas continues to escalate.

Needless to say, these numbers represent a good reason to go home and talk to our children tonight about the importance of a college education. While a degree does not assure you of success, these facts are pretty convincing that it can make a big difference. And, with the projected shortage coming, the more educated you are, then in theory the more you can expect to see in opportunities and in compensation.

[BGIII]

Oh, don't get me wrong. I think we can do way better. But as I said, a lot of times these reports call for more government action (diversify the economy, new state programs, new federal programs, etc.) instead of advocating for reducing business challenges (fixing the screwed up MBT, reducing bureaucracy, etc.). You're right that this report doesn't specifically ask for any new programs. But then, what are reports like this used for?

[suydam]

I thought that I would share some facts on employment trends to add a little substance to the economic conversation:

1. College-Level Unemployment is at 4.3% which is much lower than the numbers for those without a degree. This is resulting in a shortage of degreed candidates in many major markets, including in Grand Rapids.

2. While there has been an obvious slowdown in hiring over the past year, most companies did not over hire in previous years. Because most companies have continued to run lean, the concern is that everyone will start hiring all at once, driving up the salary marks at a ridiculous pace. (Think baseball free agency)

3. As baby boomers begin to retire (and they will, at some point, begin to retire), the workforce will stop growing. The U.S. has always been able to count on an expanding labor force. But as the boomers are replaced by a smaller generation, the number of workers between the prime working ages of 25-54 will stagnate creating additional workforce shortages.

4. They are expecting there to be a college educated workforce shortage of 14 million by 2020.

5. Combining the projected workforce shortage with the retirement of baby boomers will actually create a significant opportunity for sectors of our population that in the past have struggled with receiving a fair chance because of discrimination or other reasons. It also will create quite a problem at higher levels of management as inexperienced employees will have to take on responsibilities that they may not be ready for.

6. Highly skilled niches are in high demand/ limited supply. Competition by companies for top-talent in these areas continues to escalate.

Needless to say, these numbers represent a good reason to go home and talk to our children tonight about the importance of a college education. While a degree does not assure you of success, these facts are pretty convincing that it can make a big difference. And, with the projected shortage coming, the more educated you are, then in theory the more you can expect to see in opportunities and in compensation.

[Yankee Fan]

I would say these are primarily opinions.

Just one example: A worker shortage is a "maybe" not a fact... we have immigrants, and if there are fewer people in the workforce maybe companies will shrink to meet the needs of the aging population (for example, will we need as many teachers if there are fewer kids?).

[walker]

. . . College-Level Unemployment is at 4.3% which is much lower than the numbers for those without a degree. This is resulting in a shortage of degreed candidates in many major markets, including in Grand Rapids.

[Yankee Fan]

I'm one of those baby boomers that's about to retire soon so I'm out of the loop on the employment seeking scene but I'm curious - for what degreed fields is there a shortage right now of candidates to jobs in the Grand Rapids area? Just anecdotal, I know several degreed persons both just out of college and with years of experience that are struggling right now finding anything in their fields. I'm sure you're right and there are some areas that are hot right now but what are they?

[GRDadof3]

Shares of UFP soar

NEW YORK -- Shares of Universal Forest Products Inc. shot up Thursday after the producer of lumber, wood packaging and building products posted strong second-quarter earnings that far surpassed Wall Street's expectations.

After the market closed Wednesday, the Grand Rapids, Mich., company said profit for the period jumped 38 percent, despite a 27 percent drop in sales as UFP cut costs and debt.