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A Welcoming Community
"When I came to investigate this community, I was overwhelmingly welcomed by the city, staff, the Chamber of Commerce, the government representatives. The director of economic development walked me right through what I needed..."
- Ted Fricano
Fricanos Muskegon Lake

IN THE NEWS

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July 2010 Muskegon Market Report

Power play! New Lumberjacks spreading the wealth
 
When the Muskegon Lumberjacks announced the move from semi-pro hockey to the top junior hockey league in February, owner Josh Mervis talked about the positive economic impact the new league would have on Muskegon.

It didn’t take long for lakeshore businesses to become believers in the United States Hockey League. During a one-week hockey camp in June, players, families, officials and scouts spent an estimated $87,000 in Muskegon.

The Lumberjacks hosted two tryout camps at the LC Walker Arena.  More than 100 players and their families visited from as far away as Russia. They stayed at local hotels, ate at local restaurants and shopped in local stores.

The camps led to more than 500 hotel bookings by players, families, college
scouts, league officials and others. With a $79 average stay per night, the hockey league netted more than $39,500 for local hotels.

According to a survey of the hockey campers, the players and their families ate more than 3,600 meals at Muskegon restaurants – worth an estimated $48,000.

The team’s economic impact will continue to grow. Eventually, the Lumberjacks will host Showcase Tournaments for teams looking to get their players scouted to play junior and college level hockey.

A great plus for Muskegon was the impact the community made on these visitors.

“Comments were often heard about how much people enjoyed the area and that they wanted to come back on vacation,” said Alicia Roberts, director of marketing for the Lumberjacks.
 
Businesses working harder than ever

Here’s a positive newsflash: The Employers Association of West Michigan has learned the number of manufacturers and service agencies increasing shifts and overtime opportunities is on the rise.

The expanded workload is good for workers, companies and the overall economy. But there are important laws and regulations to consider – as well as tips for helping workers push through warm summer months.

The Fair Labor Standards Act (FLSA) requires that covered, nonexempt employees in the United States be paid at least the federal minimum wage per hour worked and receive overtime pay at one and one-half times the employee’s regular rate of pay for all hours worked over 40 in a work week. 

The overtime pay requirement cannot be met through the use of compensatory time off except under special circumstances. The Department of Labor is a great resource for overtime rules, exemptions and offers a new overtime calculator.

The Overtime Calculator Advisor has several of pages with explanations of FLSA terms as well as a series of questions about pay scales, additional compensation, pay periods and hours worked that the person using the calculator must answer.

When the questions have been answered, the calculator provides a detailed and easy to understand outline of what regular pay should be and a calculation of any overtime based on the information provided. 


County applies for entrepreneur grant

With the number of start-up businesses rising in Muskegon County, a local initiative is gaining momentum to help entrepreneurs succeed and grow.

For the past eighteen months, the E-Coordinating Council – a group of non-profit, business, educational and financial institutions – have been working on a continuum of services for entrepreneurs.

Their efforts are leading to a stronger Muskegon. From January to May of this year, 255 new businesses registered in Muskegon County; that’s up from 237 for the same period in 2009.

The Muskegon County Department of Employment and Training has applied for a $148,808 grant from the Michigan Department of Energy, Labor, & Economic Growth (DELEG). The funds would cover start-up costs as well as subsequent operational costs for a period not to exceed eighteen months.

The Council plans on using the grant, if awarded, to jumpstart the implementation of activities set forth in its strategic plan, which include hiring a part-time (E-Promoter) staff person, develop a centralized web-based clearinghouse where entrepreneurs can get “knowledge on demand,” underwrite entrepreneurial seminars and media support.

The grant also will help create a comprehensive database of professional consultants who specialize in start-ups and business growth needs, develop business roundtables for peer-to-peer learning, and develop a system for service referrals for entrepreneurs to have access to all regional small business support programs.

Members of the E-Coordinating Council currently include the Muskegon Area Chamber of Commerce, Muskegon Area First, Muskegon Community College, Baker College, Muskegon Inventor’s Network, Michigan Small Business & Technology Center, MiBiz, Michigan Alternative & Renewable Energy Center, West Michigan Shoreline Regional Development Commission, Michigan State University Extension Office, SCORE, Muskegon Heights Downtown Development Authority, Michigan/Oceana Consortium-Michigan Works!, The Starting Block, Community Foundation for Muskegon County, several banks, and others. 

 

COUNTY STATISTICS

New Business Starts

2010
Jan  = 39
Feb  = 53
Mar = 59
April = 58
May = 46

2009
Jan = 44
Feb = 45
Mar = 61
Apr = 49
May 38

Business Counseling
Appointments

SCORE &
MI-SBTDC

March = 42
April = 54
May = 56
June 60

Muskegon County Airport

Passenger Activity
(Jan. - June 2010)

Passengers = 12,072
Arrivals = 6,248
Takeoffs = 6301

Employment

May 2010
Employed = 74,232 (86%)
Gain = + 2.4% since Feb 2010


market report archives

2010 editions


Powering up Muskegon’s market!
Hundreds of new jobs in new-tech manufacturing firing up Muskegon

With the news of 700-plusjobs coming to an advanced battery plant fresh in everyone’s mind, Muskegon received a second jolt of positive energy on May 3, 2010, with the announcement of a major expansion at Johnson Technology Inc.

The jet engine parts manufacturer has promised 90 new jobs and a $50 million investment to aid its high-tech coating processes in Muskegon County. The company is expected to start hiring in 2011.

Johnson Technology is a subsidiary of General Electric; the company hopes to create 1,100 jobs in Michigan over the next five years.

"We love what we've seen and want to accelerate our growth,” GE Vice Chairman John Rice said in a story posted on mLive. "The exceptional number of talented, experienced professionals — coupled with the state's strong advanced technology manufacturing capabilities — makes putting additional jobs here an easy decision.

“Growing jobs in Michigan means growth for GE," said.

Johnson Technology manufactures jet engine parts for commercial airlines and the military. Specialty coating is needed to protect those parts against extreme heat produced by the engines.

Earlier this year, the German-Swiss-based fortu PowerCell announced its plans to invest $623 million in Muskegon County to build a state-of-the-art advanced battery manufacturing plant. The company plans to hire more than 700 people over the next several years.

People interested in applying for the high-tech jobs at Johnson Technology are encouraged to contact Michigan Works!

Investing in people can
give you the competitive edge

Many Muskegon firms are showing their resilience to the economy and have received additional work from their existing customers or diversifying into new markets and products.  But in order to stay competitive, employee training has become more important to maintain and increase the skill level of their workforce.

Companies such as Fleet Engineers Inc., Production Fabricators Inc. and Michigan Spring & Stamping will be conducting employee training programs to improve the quality their products. This is done by providing access to  certifications, incorporating lean manufacturing practices and increasing employee skill levels on specific equipment.  (link all businesses to our directory.)

To help offset the cost of these trainings, the companies are tapping into an Incumbent Working Training Grant Program being offered through the County of Muskegon Department of Employment and Training.  The program is designed to avert layoffs through specific retraining or skills upgrades, and each company can receive a grant of up to $15,000 for classroom training, customized training, and employee skills assessment testing.  The grant can cover direct training costs, instructor wages, and resource materials.  The employer must provide a 50% match of the total cost of the training.

For more information and an online application for the Incumbent Worker Training Program, go to the Michigan Works! website.  Select public document download Muskegon/Oceana Consortium – Business Services Incumbent Worker Training Program Grant Application PY 2009/2010.

Employers: Knowledge is power

Taking advantage of tax cuts under new legislation and addressing compliance regulations are impacting employers’ bottom lines. Knowing the ins-and-outs can lead to job creation and prosperity in the marketplace.

HIRE Act

Companies can receive a 6.2% credit on the employee’s portion of the Social Security Tax for new employees hired between February 3, 2010, and January 1, 2011.

Healthcare Reform

Business owners with fewer than 25 employees can take advantage of a tax credit up to 35% on healthcare premiums.

Children with pre-existing health conditions can no longer be denied insurance coverage. Meanwhile, children can be covered under their parents’ policy through the age of 26.

Companies with 50 or more employees must provide nursing mothers “reasonable break time” for up to 1 year after giving birth. Employers also are required to furnish a private space, but not restrooms.

Statewide Smoking Ban

The statewide smoking ban, which includes restaurants and bars, went into effect May 1. For more information, contact the Employers’ Association at 759-0916 or online at www.eawm.net

 

Muskegon County
Market at a Glance 

Prime Rate

The prime rate for April was 3.25% and has remained steady since December 2008

 

Consumer Price Index

March 2010 = 2.3%

February 2010 = 2.1%

March 2009 = -0.4%  

 

Business Counseling

Appointment

SCORE &

MI-SBTDC

Feb '10... 47

Mar '10... 42

Apr ’10… 54

 

New Business Permits

Apr ’09… 49

Apr ’10… 58

Mar ’09… 61

Mar ’10… 59

 

Employment Numbers

 

Workforce

Feb ’10 = 85,088

Mar ’10 = 84,947

Mar ’09 = 87,765

 

Employment

Feb ’10 = 71,188

Mar ’10 = 70,901

Mar ’09 = 74,989

 

Unemployment

Feb ’10 = 13,900

Mar ’10 = 14,046

Mar ’09 = 12,776

 

Jobless rate

Feb ’10 = 16.3

Mar ’10 = 16.5

Mar ’09 = 14.6

 

 

New Construction

Permits (1st Qtr)

 

2010

Commercial = 10

Residential = 19

 

2009

Commercial = 5

Residential = 6


 

April 2010 Muskegon Market Report

Getting Energized: Battery Plant Gets Green Light


This isn't a pie-in-the-sky proposal; the green light is shining brightly for a multimillion dollar battery plant in Muskegon County.

Advanced battery manufacturer Fortu PowerCell will invest $623 million in a new state-of-the-art facility in Muskegon Township. The German-Swiss based manufacturer will create more than 700 jobs over the next several years.

The company, which produces advanced battery technology for vehicle propulsion, will have its facility open by 2012, at which time 126 people will be employed there.

The company's presence in the community will be felt here almost immediately. In coming months, infrastructure will be installed to accommodate the site in the Bayer CropScience Industrial Park in Muskegon Township.

The Muskegon Area Chamber of Commerce is maintaining a list for the company of people hoping to work there and service providers that want to do business with Fortu. Those interested in being on the list are encouraged to email the Chamber at macc@muskegon.org.

The Muskegon Chamber, Muskegon Area First and government leaders have embraced a shared economic vision to move Muskegon into the forefront of advanced manufacturing. Bringing Fortu to Muskegon is a giant step in that direction.

"The vision for Muskegon County is quickly becoming a reality as we see investment and job creation throughout the community," said Janessa Stroud, Vice President of Government Affairs for the Muskegon Chamber. "This project will be an anchor company in the area for an emerging industry which means more companies and more jobs moving to West Michigan."

A number of community leaders have been involved in increasing the number of State of Michigan battery cell manufacturing credits from four to five and extending the deadline.

Fortu chose to locate here because of access to Muskegon's resources, namely a dedicated workforce, rail and port access. The Michigan Economic Growth Alliance Board unanimously approved two state tax credits worth $112.6 million to make the project a reality.
 

Entrepreneurs Create Jobs, Opportunities 


Here's a stat that jumps off the page - an estimated 80 percent of the Muskegon Area Chamber's 1,200 members are small businesses, defined by having 25 or fewer employees. These small businesses are the backbone of Muskegon County's economy, bringing valuable products and services into the market.

The entrepreneurs who launch these startup businesses face enormous risk to reach their dreams. Along the way, entrepreneurs create jobs, expand the tax base for essential government services and contribute services and financial contributions to worthy community outreach projects.

Committed to supporting small businesses grow and prosper, the Chamber has been a driving force behind a strategic economic development plan for the Muskegon area known as the "Blueprint for Job Creation," also known as the "Entrepreneur Driven Community."

The Chamber values the lakeshore's larg e employers like Alcoa Howmet and Mercy Health Partners, who give back to the community in a myriad of ways. After all, today's startup business may become tomorrow's major employer.

Want to learn more about the business resources available to the community? To view all the business resource links, visit the Chamber's Start Today  page. 

 

Reviewing Best Hiring Practices 


Word on the street is that employers in Muskegon County are starting to hire again. So it's important for hiring managers to brush up on effective hiring practices.

Making sure a candidate fits into a company's work environment is an important part of the hiring process. But verifying work experience, education and work ethic isn't as easy as it was once upon a time...

Fearing libel or slander lawsuits, some companies don't give employment recommendations - good, bad or indifferent.

But that should not stop hiring managers from trying to get as much information as possible about the top candidate. Contact the direct supervisor of the candidate's most recent place of employment - he or she will know best about work ethic, abilities and personality.

Human resource managers usually are less forthcoming with information than direct supervisors. The human resource department usually only releases salary history and attendance figures, but it can't hurt to ask, "Would you rehire this person?"

Meanwhile, when giving a reference for a former employee, the letter should be written by the human resource manager or direct supervisor on company letterhead. The letter should include date of hire, job duties and achievements.

The Employer's Association of West Michigan has resources including a conference in April on Best Hiring Practices which looks at background checks and other resources. For more information about the conference, contact 231-759-0916 or visit www.eawm.net.


Manufacturer's Council Activity on the Rise 


The Muskegon Manufacturers Council, a program of the Muskegon Area Chamber of Commerce and Muskegon Area First, reorganized this year and increased its member participation by 50%.

"We are excited to see the growth and participation from the many valuable companies that have contributed to the economic development of Muskegon County," said Ed Garner, president of Muskegon Area First.

The Economic Vision for Muskegon County clearly states that Muskegon will be a global leader in advanced manufacturing with specialization in metal, plastics, alternative energy, and agricultural products. The purpose of the Manufacturers Council is to bring manufacturers together to learn about one another and the resources available in the community.

Here's a rundown of 2010 initiatives for the Muskegon Manufacturers Council:

• Continue to educate manufacturers on the benefits of sharing resources and best practices

• Spread awareness and participation in the "Quality Made in West Michigan" logo campaign

• Conduct group tours of companies that have been successful in lean manufacturing and sustainability programs

• Promote diversification efforts in the state of Michigan in industries such as aerospace, government contracting, medical devises and alternative energy

For information about how to get involved with the manufacturer's council, contact Janessa Stroud at the Muskegon Area Chamber of Commerce, or Gina Brown of Muskegon Area First, by calling 722-3751.
 
Muskegon Market:
At a Glance

March Prime Rate
3.25%, a figure that has remained steady since late 2008.

Consumer Price Index

Feb '10... 2.1%
Jan '10... 2.6%
Feb '09... 0.2%

SCORE &
MI-SBTDC
Business Counseling
Appointments

Jan '10... 27
Feb '10... 47
Mar '10... 42
 
New Business Starts
and Renewals
Jan '10... 84
Feb '10... 94
Mar '10... 82
 
EMPLOYMENT

January 2010

Total non-farm... 56,500

Total private... 47,600

Goods producing... 10,500

Service providers... 46,000

Private service... 37,000

Natural Resources... 1,300

Manufacturing... 9,200

Transp/utilities... 12,500

Retail trade... 10,400

Information... 700

Financial... 1,900

Business services... 2,800

Education & health services...
11,100

Leisure/hospitality... 5,500

Accommodations/food service... 5,100

Government... 8,900

Other... 2,600

-- Source: Michigan Dept. of Labor

 
Home sales in
Muskegon Co.

Jan '10... 102
Feb '10... 133
Mar '10... 101*
*data through March 20

Comparing
Unemployment

February, 2010

Nationwide... 8.9%
Michigan... 14.6%
Muskegon-Norton Shores... 16.3%
Grand Rapids-Wyoming... 12.4%
Holland-Grand Haven... 13.7%
Oceana County... 21.5%
 

 


March 2010 Muskegon Market Report

Fighting for Muskegon's Future 

Organizations like Muskegon Area First and the Muskegon Area Chamber of Commerce will continue aggressively recruiting companies to locate here. 
 
At the end of  2009, exciting new broke that  fortu PowerCell, a lithium ion battery manufacturer, is looking to invest more than $600 million to establish a battery plant in Muskegon Township that will employ up to 726 people. The final incentive package totaling more than $200 million is scheduled for approval by the Michigan Economic Growth Authority (MEGA) Board on March 16. 
 
In addition, other confidential projects being worked on by Muskegon Area First could result in the creation of another 400-plus jobs. 
 
These projects range from film production to heavy manufacturing, include private investments of more than $200 million and a minimum of $38 million in tax and other incentives to compete against other states. 
 
Muskegon County should be proud that it is the only community in the state being considered for some of these tremendous opportunities. 
With our workforce, infrastructure, natural resources, quality of life and "can do" attitude, Muskegon has much to offer. 
 
For additional economic development news visit our website at www.muskegonareafirst.org. 
 

Hotels, Winter Sports Complex
Report Brisk Business 

So you think Muskegon's just a summertime hotspot?
 
Think again. The proof is in the numbers.
 
Jill Emery, manager of the Muskegon County Convention & Visitors Bureau, said bookings at the Shoreline Inn & Suites in downtown Muskegon jumped 400 percent this January. Many of the hotels across Muskegon County experienced similar successes, including the Holiday Inn Muskegon Harbor.
 
National news stories about the Muskegon Winter Sports Complex boosted tourism activity in Muskegon County, thanks to hometown hero Mark Grimmette's prominent role on the U.S. Olympic Luge Team.
 
Travel Michigan publicized the Muskegon Winter Sports Complex to media outlets across the country. An Associated Press story on the facility was posted to the official U.S. Olympic Team web site. Meanwhile, the Chicago Sun-Times published a story on the Winter Sports Complex's adaptive luge clinic.
 
"After that, the phones were ringing off the hook," Emery said. "People were booking rooms at our hotels like crazy. The editorial coverage really did make an impact on our area."
 
Emery said tourism revenues are looking promising for this spring and summer as well.
 
"We consider ourselves fortunate," she said. "The Winter Sports Complex has had a record year and having the (USBC Men's State Bowling Tournament) in town hasn't hurt things, either." 
 

Muskegon is starting to hire again 

There are rumblings of a little hiring and a definite up-tick of activity for temporary placement agencies. Now is a great time to review hiring processes. 
 
Review job descriptions and pay structures. Everyone has taken on more responsibilities, but your job descriptions may not reflect those changes.  Talk to the hiring manager regarding what is truly expected of the candidate and ensure that is reflected in the job description.
 
West Michigan has some of the most talented and educated employees in the state. Tap into local resources such as Workforce Development Centers, Higher Education and Temporary Placement Agencies.
 
Also, check references and credentials. 
 
Dust off and invigorate your procedures for getting new employees off to a great start. 
 

By the Numbers

Employment: 
Muskegon Co. 
 
Dec '09 
Labor Force = 86,818 
Employed = 72,7767 
Unemployed: 14,051  
Unemployment  % = 16.2 
 
Nov '09 
Labor Force = 87,939
Employed = 74,150
Unemployed = 13,789
Unemployment % = 15.7 
 
Dec '08
Labor Force = 87,986
Employed = 74,150
Unemployed = 10,193
Unemployment % = 11.6 
 
SCORE & 
MI-SBTDC 
 
Business Counseling 
Appointments 
Dec '09 = 28
Jan '10 = 27
Feb '10 = 47 
 
New Business Starts
Countywide 
Dec '09 = 25
Jan '10 = 39
Feb '10 = 53 
 
Building Permits: 
Muskegon Co. 
 
2009
1st Quarter
Commercial = 5
Residential = 6
 
2nd Quarter 
Commercial = 10
Residential = 40
 
3rd Quarter 
Commercial = 10
Residential = 25
 
4th Quarter 
Commercial = 7
Residential = 26
 
Year-end Total 
Commercial = 32
Residential  = 97 
 
Home sales: 
Muskegon Co. 
 
Jan '08 = 123
Jan '09 = 101
Jan '10 = 102 
 
 
Prime Rate 
 
The current prime rate of 3.25 % has remained steady since 12/16/08 
 
Consumer Price Index (CPI) 
Jan '10 = 2.6 %
Dec '09 = 2.7 %
Jan '09 = 0.0 % 
 
November/December 2009
October 2009

September 2009

August 2009
July 2009
June 2009
May 2009
April 2009
March 2009

February 2009
 
 

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