Business & Economy

Craft beer brews economic growth

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By CELESTE BOTT
Capital News Service
LANSING – Want to boost Michigan’s job growth and economy? Treat yourself to a cold craft beer. Michigan’s craft beer industry grew by 20 percent in 2012, according to a “state of the industry” report from the Demeter Group Investment Bank of San Francisco. Michigan added 17 breweries last year, and outpaced the average national industry growth rate by 12 percent. New breweries opened in Big Rapids, Grand Rapids, Marquette and Lake Leelanau, for example.

Business & Economy

Removing barriers for gays could boost state economy

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By CELESTE BOTT
Capital News Service
LANSING – Discrimination against gays and lesbians hurts Michigan’s economy, according to a new report by the Department of Civil Rights. Emily Dievendorf, director of policy for Equality Michigan, said that reducing widespread discrimination will improve the economy because more people are likely to live and work in a state that promotes tolerance. “Bright, skilled workers no longer flock to a location just because a business puts down roots,” Dievendorf said. “The best and the brightest are most attracted to communities that are also safe and open to all families. “The solution isn’t to kick out our eager young workers who want Michigan to thrive.

Business & Economy

Homelessness down statewide, but higher in the Northern Lower Penninsula

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By SAODAT ASANOVA-TAYLOR
Capital News Service
LANSING – While improving economic conditions have reduced homelessness overall in the state, the numbers are still rising for some regions, including the Northern Lower Penninsula. A total of 94,033 people were homeless in Michigan sometime in 2011, according to the Michigan Coalition Against Homelessness. That is down 6 percent from the previous year. That reduction is strong evidence of successful work by programs such as the Michigan Campaign to End Homelessness, said Eric Hufnagel, executive director of the coalition. This campaign was launched in 2006 to prevent homelessness and support people at risk of becoming homeless.

Business & Economy

Growth seen in alternative energy jobs

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By EDITH ZHOU
Capital News Service
LANSING –Michigan manufacturers employ 498,000 people, and more than 20,700 of them are in the alternative energy industry. According to the Michigan Manufacturers Association, these alternative energy production jobs account for 4.1 percent of all manufacturing jobs. The state Bureau of Labor Market Information counted less than 9,000 jobs in the alternative energy industry in 2009. The number of jobs grew by 133 percent in three years, partly because Michigan is home to the continent’s largest lithium ion battery manufacturer. The bureau found the wind energy industry is the biggest economic winner among renewable energy technologies.

Business & Economy

Government programs support small businesses services

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By XINJUAN DENG
Capital News Service
LANSING – Small businesses are getting more chances to access capital, spur job growth and boost exports under recent federal and state initiatives. These include the Small Business Administration (SBA), Michigan Economic Development Corp. (MEDC) and Michigan Small Business and Technology Development Center. U.S. Sen. Debbie Stabenow, D-Lansing pointed to resources to increase access to capital for Michigan small businesses. 
“Small businesses are the backbone of our economy, creating the majority of new jobs,” Stabenow said. “We continue to make sure our small businesses have access to the capital they need to grow their companies and hire new workers.”
Small businesses in Oakland, Macomb and Wayne counties have received $395 million in financing since 2010 under the Small Businesses Jobs Act, Stabenow said.

Business & Economy

Michigan leads Great Lakes states in personal income growth

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By WEI YU
Capital News Service
LANSING – Michigan’s personal income grew 5.2 percent in 2011 – the highest per capita level in a decade – and ranks 15th in the nation, according to a new report by the U.S. Bureau of Economic Analysis. And that’s just one indicator of an economic recovery, said experts at Grand Valley State and Oakland universities. Tricia Kinley, senior director of tax and regulatory reform at the Michigan Chamber of Commerce, said, “Undoubtedly, the state’s overall job growth would have to be the main factor that is pushing our residents’ personal income in a positive direction.”
Kinley said the state’s primary industry, manufacturing, is showing signs of recovery – particularly auto manufacturing – and job providers overall express more confidence in the direction that Michigan is heading. Earnings, one of three major components of personal income, rose 5.2 percent in Michigan from 2010 to 2011, but was below peaks reached in 2007 or 2008, according to the federal report. Although Michigan appears to be turning the corner, there is still significant work to be done to improve the business climate, which would, in turn, motivate employers to expand their businesses, Kinley said.

Business & Economy

Experts dispute glowing tax ranking

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By PATRICK HOWARD
Capital News Service
LANSING – Economic experts are divided after a tax advocacy group’s study jumped Michigan from 49th to 7th place in corporate tax rankings. The Tax Foundation, a nonprofit research group based in Washington D.C., also cited the state’s upgrade from 18th to 12th in overall business climate. According to Mark Robyn, an economist with Tax Foundation, the criteria for a state’s positive ranking include low taxes and a broad tax base while keeping tax policy as simple as can be. “Essentially, the ranking is intended to indicate how business friendly state corporate taxes are,” Robyn said. Robyn noted the foundation’s decision to update Michigan’s ranking is based on the state’s current tax policy, which went into effect Jan.