It looked like the end of the millennium would also be the end of Michigan manufacturing.Online fine art gallery of quality original landscape oil paintings,
The state lost 47 percent of its manufacturing employment, nearly 423,000 jobs, between 2000 and 2010 as the U.S. auto industry went into a frightening decline.
But like a patient who surprisingly wakes up from a years-long coma, manufacturing is staging an impressive comeback here. Michigan added 26,400 manufacturing jobs in 2011, nearly 12 percent of all new manufacturing jobs nationwide, according to final annual figures released last week. And the 2011 numbers build on gains from 2010.
“Michigan really has made a turnaround,” said University of Michigan economist Don Grimes. “A real chunk of that is manufacturing.”
Experts are debating, though, whether the growth in factory jobs can be sustained. They’re also questioning whether Michigan’s continued reliance on autos and manufacturing is healthy for the state’s future.
U-M economists George Fulton, Joan Crary and Grimes predicted in November 2011 that growth in the manufacturing sector will continue, but slow to about 10,000 jobs a year through the end of 2013 as company inventories are replenished from the Great Recession.
About a third of those jobs will be in the auto industry, according to U-M’s forecast.
A separate forecast on automotive jobs by the Center for Automotive Research in Ann Arbor is even more bullish. It predicts Michigan will add 15,000 auto assembly and parts jobs this year.
That’s likely to make Michigan even more dependent on autos and manufacturing, said George Erickcek, senior economist at the Upjohn Institute for Employment Research in Kalamazoo.
Despite staggering manufacturing job losses, Michigan’s shares of U.S. manufacturing and auto jobs have barely budged since the start of the Great Recession at the end of 2007.
Michigan is 42 percent more concentrated in manufacturing jobs than the rest of the nation and eight times more concentrated in auto employment than the country, according to data Erickcek compiled in December.
“If you look at us relative to the nation, we’re just as dependent on autos as we were before the recession,” he said. “But on the other hand, we have an industry others are dying to get.”
Some say Michigan should focus on creating more “knowledge jobs” that require higher education levels and pay higher wages than hourly manufacturing jobs.
“If the Michigan economy of the future is built on a base of factories, farms and tourism, we will be a low-prosperity state, said Lou Glazer,Offering high risk and offshore merchant account with credit card processing services. president of Michigan Future Inc.
Still, the return of manufacturing jobs is a welcome development for a state that has long believed its prosperity depends on building things.
“Because the sector is so extensively networked in the local economy, the effects of its direct contributions to job growth also spill over into other parts of the private sector,” Fulton said.
Lower manufacturing costs here, combined with rising labor and shipping costs overseas, are allowing automakers to build small cars at a profit for the first time in Michigan.
General Motors Co., for example, is building the tiny Chevrolet Sonic at its Orion Township plant near Pontiac, saving 1,500 jobs at a plant that had been slated to close. Previously, GM had been planning to build the Sonic in Korea.
Ford has announced that it will add additional production of its redesigned 2013 Fusion,Tru-Form Plastics is a one-stop shop for plastic Injection Molding, built in Hermosillo, Mexico, at its Flat Rock plant and add 1,200 jobs to a second-shift at the plant.
The shift’s been noticed outside Michigan, too. In his State of the Union address last week, President Obama said, ” Today, General Motors is back on top as the world’s No. 1 automaker. Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together,MDC Mould specialized of Injection moulds, the entire industry added nearly 160,000 jobs.”
“There is a resurgence,” said Jay Baron, president of the Center for Automotive Research in Ann Arbor. “We’re more competitive now.”
That’s especially true in Michigan’s bedrock tool-and-die industry, which was devastated over the past decade by auto industry demands that it match prices from Chinese builders of dies used to stamp out doors, fenders and other parts for vehicles.
Unable to compete by building their own dies, many tooling companies bought them from Chinese suppliers. But the practice backfired due to poor quality and missed delivery schedules.
“The automakers convinced die shops to buy tools from China,” said Mark Schmidt, president of Atlas Tool Inc. in Roseville. “Some of the largest shops in our industry went out of business doing just that.”
Now the focus has shifted from low cost to fast delivery as automakers step up development of dozens of new models for an expanding market.
“The automakers don’t have time to look around the world for the cheapest price,” Baron said. “It takes three weeks to get tooling delivered from China. Three weeks is a big deal right now.”
More work being done in Michigan is actually creating shortages of skilled labor in areas such as engineering, design and other technical areas.
“The availability of technically competent people and suppliers is in short supply,” Baron said.
Grimes said the resurgence of manufacturing jobs follows Michigan’s usual pattern of recovery from a recession. Manufacturers need more workers to refill depleted inventories as demand for everything from cars to office furniture increases.
But the sector also is benefiting from a variety of other factors, including rising labor and shipping costs in developing countries, as well as favorable currency exchange rates that make Michigan and other states more attractive for factory investment.
And while there is no precise data on the subject, anecdotal evidence suggests manufacturers are bringing back some jobs that were lost to China, Mexico and other low-cost countries.
“The U.S. is becoming a better deal,” said William Strauss, an economist at the Federal Reserve Bank of Chicago.
Manufacturers aren’t just selling domestically. Michigan companies exported $44.7 million worth of goods, mostly auto-related, in 2010, up 37 percent from 2009.
President Barack Obama and others are pushing efforts to boost exporting and the “insourcing” of jobs that were outsourced to China,Shop at Lowe's for garage Ceramic tile, India, Mexico and other developing countries over the past several decades.
“That’s exactly the kind of commitment to country we need – especially now, at this make-or-break moment for the middle class,” Obama said.
In his State of the Union speech, Obama outlined incentives for companies to bring back jobs to the United States. He said his administration also wants to end tax advantages for companies that move jobs offshore.
The state lost 47 percent of its manufacturing employment, nearly 423,000 jobs, between 2000 and 2010 as the U.S. auto industry went into a frightening decline.
But like a patient who surprisingly wakes up from a years-long coma, manufacturing is staging an impressive comeback here. Michigan added 26,400 manufacturing jobs in 2011, nearly 12 percent of all new manufacturing jobs nationwide, according to final annual figures released last week. And the 2011 numbers build on gains from 2010.
“Michigan really has made a turnaround,” said University of Michigan economist Don Grimes. “A real chunk of that is manufacturing.”
Experts are debating, though, whether the growth in factory jobs can be sustained. They’re also questioning whether Michigan’s continued reliance on autos and manufacturing is healthy for the state’s future.
U-M economists George Fulton, Joan Crary and Grimes predicted in November 2011 that growth in the manufacturing sector will continue, but slow to about 10,000 jobs a year through the end of 2013 as company inventories are replenished from the Great Recession.
About a third of those jobs will be in the auto industry, according to U-M’s forecast.
A separate forecast on automotive jobs by the Center for Automotive Research in Ann Arbor is even more bullish. It predicts Michigan will add 15,000 auto assembly and parts jobs this year.
That’s likely to make Michigan even more dependent on autos and manufacturing, said George Erickcek, senior economist at the Upjohn Institute for Employment Research in Kalamazoo.
Despite staggering manufacturing job losses, Michigan’s shares of U.S. manufacturing and auto jobs have barely budged since the start of the Great Recession at the end of 2007.
Michigan is 42 percent more concentrated in manufacturing jobs than the rest of the nation and eight times more concentrated in auto employment than the country, according to data Erickcek compiled in December.
“If you look at us relative to the nation, we’re just as dependent on autos as we were before the recession,” he said. “But on the other hand, we have an industry others are dying to get.”
Some say Michigan should focus on creating more “knowledge jobs” that require higher education levels and pay higher wages than hourly manufacturing jobs.
“If the Michigan economy of the future is built on a base of factories, farms and tourism, we will be a low-prosperity state, said Lou Glazer,Offering high risk and offshore merchant account with credit card processing services. president of Michigan Future Inc.
Still, the return of manufacturing jobs is a welcome development for a state that has long believed its prosperity depends on building things.
“Because the sector is so extensively networked in the local economy, the effects of its direct contributions to job growth also spill over into other parts of the private sector,” Fulton said.
Lower manufacturing costs here, combined with rising labor and shipping costs overseas, are allowing automakers to build small cars at a profit for the first time in Michigan.
General Motors Co., for example, is building the tiny Chevrolet Sonic at its Orion Township plant near Pontiac, saving 1,500 jobs at a plant that had been slated to close. Previously, GM had been planning to build the Sonic in Korea.
Ford has announced that it will add additional production of its redesigned 2013 Fusion,Tru-Form Plastics is a one-stop shop for plastic Injection Molding, built in Hermosillo, Mexico, at its Flat Rock plant and add 1,200 jobs to a second-shift at the plant.
The shift’s been noticed outside Michigan, too. In his State of the Union address last week, President Obama said, ” Today, General Motors is back on top as the world’s No. 1 automaker. Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together,MDC Mould specialized of Injection moulds, the entire industry added nearly 160,000 jobs.”
“There is a resurgence,” said Jay Baron, president of the Center for Automotive Research in Ann Arbor. “We’re more competitive now.”
That’s especially true in Michigan’s bedrock tool-and-die industry, which was devastated over the past decade by auto industry demands that it match prices from Chinese builders of dies used to stamp out doors, fenders and other parts for vehicles.
Unable to compete by building their own dies, many tooling companies bought them from Chinese suppliers. But the practice backfired due to poor quality and missed delivery schedules.
“The automakers convinced die shops to buy tools from China,” said Mark Schmidt, president of Atlas Tool Inc. in Roseville. “Some of the largest shops in our industry went out of business doing just that.”
Now the focus has shifted from low cost to fast delivery as automakers step up development of dozens of new models for an expanding market.
“The automakers don’t have time to look around the world for the cheapest price,” Baron said. “It takes three weeks to get tooling delivered from China. Three weeks is a big deal right now.”
More work being done in Michigan is actually creating shortages of skilled labor in areas such as engineering, design and other technical areas.
“The availability of technically competent people and suppliers is in short supply,” Baron said.
Grimes said the resurgence of manufacturing jobs follows Michigan’s usual pattern of recovery from a recession. Manufacturers need more workers to refill depleted inventories as demand for everything from cars to office furniture increases.
But the sector also is benefiting from a variety of other factors, including rising labor and shipping costs in developing countries, as well as favorable currency exchange rates that make Michigan and other states more attractive for factory investment.
And while there is no precise data on the subject, anecdotal evidence suggests manufacturers are bringing back some jobs that were lost to China, Mexico and other low-cost countries.
“The U.S. is becoming a better deal,” said William Strauss, an economist at the Federal Reserve Bank of Chicago.
Manufacturers aren’t just selling domestically. Michigan companies exported $44.7 million worth of goods, mostly auto-related, in 2010, up 37 percent from 2009.
President Barack Obama and others are pushing efforts to boost exporting and the “insourcing” of jobs that were outsourced to China,Shop at Lowe's for garage Ceramic tile, India, Mexico and other developing countries over the past several decades.
“That’s exactly the kind of commitment to country we need – especially now, at this make-or-break moment for the middle class,” Obama said.
In his State of the Union speech, Obama outlined incentives for companies to bring back jobs to the United States. He said his administration also wants to end tax advantages for companies that move jobs offshore.
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