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In this issue:
BLM Quarterly Economic Survey Results
New Michigan - Higher Education Marketplace
Data Supporting the Michigan Turnaround Plan
BLM Member Stories
In the News. . .

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VIEWPOINT


Common Core is Right for Michigan

 

Now more than ever, Michigan's economic future is closely tied to the education of its workforce.  Good paying jobs increasingly require more education and the jobs will go where educated workers can be found. We have to make sure our children leave the 12th grade ready to advance with a solid foundation of education in reading, math and science no matter whether they choose to enter the workforce or continue their education. 

 

The Common Core State Standards offer a useful ruler for schools as they work to ensure students are career- and college- ready when they leave high school. The Common Core does not prevent schools or states from teaching in innovative, individualized ways. Michigan still gets to decide the curriculum that should be taught and teachers get to decide how to teach. It helps schools, students and parents know how our students are doing against what will be expected of them once they leave school and if they are keeping up with their peers.

 

Business Leaders for Michigan supports Common Core State Standards. We believe they will help ensure that all Michigan children have the skills to succeed after high school and have a bright economic future in Michigan.

OUR WORK


Business Leaders Forecast: Michigan Will Continue to Grow Faster Than U.S. Economy

Long-term outlook better than short-term; More hiring planned for 2013

 

Business Leaders for Michigan (BLM)  continues to forecast that Michigan's economy will grow faster than the U.S. economy over the next six to eighteen months.  The forecast is reinforced by 43 percent of BLM members planning to increase hiring in Michigan in just the next six months. "Michigan's business leaders continue to be more bullish towards the state's economic outlook than the nation's again this quarter," said Doug Rothwell, President & CEO. "While Michigan's business climate continues to improve, no significant federal policy reforms have been adopted amidst the slowdown in global growth." Read more. . .

 

2013 1Q Survery 

BLM Social Networks

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Business Leaders
for Michigan 
600 Renaissance Center, Suite 1760, 
Detroit, MI, 48243-1802

Phone: 313.259.5400

ADVANCING THE MICHIGAN TURNAROUND PLAN & THE NEW MICHIGAN STRATEGY


 


MTP chart simple 6 steps
   

Step 6: New Michigan - Higher Education Marketplace


Our view:  Michigan's higher education system is one of our state's most significant assets to drive economic growth. BLM supports boosting investments in higher education to make college more affordable and grow the state's talent pipeline; and leveraging the innovative strengths of MI's higher education system.

Business Leaders Host National Research Council Workshop To Explore Future Of Universities In Fueling Michigan's, Nation's Economy National Academies Report

 

Top state and national leaders in business and academia recently met to discuss strategies to maintain the preeminence of America's public research universities and the role states can play in this effort. The workshop was an opportunity to provide input to the National Research Council on recommendations designed to ensure that American research universities are able to maintain the excellence in research and doctoral education needed to help the nation compete and prosper globally in the 21st century. 

  National Academies Logo

The featured guest was Chad Holliday, Jr., Chairman of the board of directors of Bank of America, former CEO of DuPont Corporation and chair of the National Academy of Engineering. Discussion focused on the importance of higher education to the nation, business and citizens; how to better connect the needs of businesses with universities; and strategies for making college more affordable on a long-term basis.  Read more. . . 

DATA SUPPORTING THE TURNAROUND PLAN


MI Slightly Below Average For  Governing Logo

E-Government Transactions

 

Michigan scores well on a number of factors evaluating the effectiveness of digital government services but lags other states in utilizing technology to provide state customer services.  Governing magazine calculated that Michigan has a below average number of online transactions on a per capita basis.  The Turnaround Plan identified increasing Michigan's relatively low use of customer service technology as a way to improve the productivity of state government. Read more. . .

 

Governing e-govt chart
 

 

Site Consultants & CEOs Identify Site Location Factors Area Development Logo

 

The latest survey by Area Development magazine of site consultants and CEOs concluded the following:

  • Labor, costs, taxes and incentive-related factors top the site location priority list.  Skill shortages pushed the availability of skilled labor factor up the most from last year.  Quality of life factors ranked lowest as site location priorities.
  • 38% of all new investments are being made south of the Mason-Dixon line
  • High taxes and excessive regulation are the main drivers behind relocation decisions, followed closely by proximity to markets and suppliers
  • 70% of CEOs rank incentives very or somewhat important in making site location decisions, with tax credits being the most preferred form of incentive
  • 61% of site consultants say incentives have always been of great importance and 31% say the importance is growing in consideration

MI Ranks Average To Above Average on Most Tax Metrics

 

The latest annual report from the Tax Foundation shows that Michigan ranks about average to above average on most tax metrics.  Highlights include:

*     Average per capita tax burden: 29th

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*     Overall business tax climate: 12th

*     Corporate tax: 7th

*     Sales tax: 7th

*     Income taxes: 11th

*     Property taxes: 31st

*     UI taxes: 44th

 Read more. . . 

Michigan Not Yet At Pre-Recession Economic Performance Brookings logo

 

We still have a long way to go.  That's what the latest Brookings data says about the Michigan economy.  Measuring our economic performance from the peak pre-recession level to today, the Grand Rapids metro performed about the same as the other Top 100 regions, but the Detroit region performed among the bottom 20 metros.  Read more. . .

 

Brookings Pre-recession chart

MI Ranks in Top 10 For Percent of Gross State Product Tied to Manufacturing  ISM Logo

 

According to the Institute of Supply Management, using federal Bureau of Labor Statistics data, Michigan ranked 10th for the share of its Gross State Product that was contributed by the manufacturing sector.  Michigan ranks 5th or 6th in manufacturing employment. If you use GSP to measure the relative value-add of the sector to the state's economy, the fact that Michigan manufacturing ranks lower in GSP share than employment contribution can reflect either a greater diversification of the Michigan economy, a slightly lower value of manufacturing good produced in Michigan or both relative to the other nine states above us.   Read more. . .

 
manufact chart

New Company Formation Drops As Economy Improves 

  Kaufmann Logo

The Kauffman Foundation identified that new company formation dropped by nearly 10% in the past year as the economy continues to improve.  The Foundation says that new company formation rose to record highs during the recession and that current formation rates are near normal levels.  The map below shows the rate of business formation by state with darker green indicating higher rates of formation.  Michigan's rate is among the lowest in the nation. Read more. . . 

 

Kauffmann New Company map

SPOTLIGHT ON BLM MEMBERS


Plan to turn Detroit schools into neighborhood hubs gets boost from bank

MLive.com | April 29, 2013 Chase logo

 

A set of grants from JPMorgan Chase will boost community services at three Detroit public schools in an effort to make them more vital neighborhood hubs, district and state officials announced Monday.

 

And more money for expansion of the effort could be on the way.

 

The $1.5 million will help community groups implement job training, foreclosure protection and financial literacy programs based at three southwest Detroit schools, Western International High School and Harms and Maybury elementary schools. Read more. . .

Michigan Women's Foundation honors leaders in Grand Rapids banking and philanthropy  FifthThird Bank Logo

MLive.com | April 25, 2013

 

The Michigan Women's Foundation honored Grand Rapids community leaders Michelle VanDyke and Diana Sieger on Wednesday, April 24, as "Women of Achievement and Courage."

 

VanDyke, regional president of Fifth Third Bank, and Sieger, president of the Grand Rapids Community Foundation, were honored at a luncheon at the Frederik Meijer Gardens and Sculpture Park. Read more. . .

Mike Jandernoa's business mentoring program looking for next class of entrepreneurs Jandernoa Video

MLive.com | April 16, 2013

 

When Wayne Visbeen asked about joining Jandernoa Entrepreneurial Mentoring, founder Mike Jandernoa asked him if he was interested in a mentor role.

 

But the successful architect felt there was a lot he could still learn from the former Perrigo CEO and other business executives.  Read more. . .

IN THE NEWS


Tom Walsh: For Michigan to succeed, Detroit and Grand Rapids must work together  Detroit Freep Logo

Detroit Free Press | April 7, 2013

 

If ever a place was the embodiment of Rudyard Kipling's poetic assertion that "East is East and West is West and never the twain shall meet," it was Michigan for many a decade, right? Not anymore.

 

In a post-recession Michigan, business leaders from Grand Rapids and Detroit realize they must cooperate like never before to survive and grow. Together, they're providing money to fledgling start-ups, helping each other with sister initiatives to recruit and retain young talent, infusing respective city cores with new development and retail, and recognizing they are stronger if East and West are both thriving.  Read more. . .

Pure Michigan generates best ROI yet despite diminished regional returns PureMichiganLogo

MiBiz.com | April 15, 2013

 

The Pure Michigan tourism campaign generated its best return ever in 2012, drawing an estimated 3.8 million people to the state that spent more than $1.1 billion during their stay, according to new research data.

 

Last year's campaign brought in $5.76 in state tax revenue collected for every $1 spent on tourism promotion, up from $4.88 in 2011 and the best ROI since the state launched the Pure Michigan brand in 2006. The improvement for the overall promotion came on the strength of the national advertising campaign and was despite a lower ROI from a regional campaign in Great Lakes states. Read more. . .

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About Us

 

Business Leaders for Michigan, the state's business roundtable, is dedicated to making Michigan a "Top Ten" state for job, economic and personal income growth. The organization is composed exclusively of the chairpersons, chief executive officers, or most senior executives of Michigan's largest companies and universities.  Our members drive over 25% of the state's economy, provide over 325,000 direct and 820,000 indirect jobs in Michigan, generate over $1 Trillion in annual revenue and serve nearly one half of all Michigan public university students. 

 

Find out more at:  www.businessleadersformichigan.com

 

Business Leaders for Michigan
600 Renaissance Center, Suite 1760, Detroit, MI  48243-1802
Phone: 313.259.5400
E-Mail Address: [email protected]