Home : Blogs : Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate : Ann Arbor and Saline Michigan Real Estate

Automotive Workers In Michigan Not the Only Industry Hit by Lay Offs.

Michiganders are feeling the crunch from the almost 350,000 automotive workers layed off since 2001. Although it came in waves that is close to the total number.

One other group has also been hit by tremendous layoffs and that is the Construction Workers and trades. Since May 2006 to current over 15,000 people who work in building, drywall, painters, framers, electricians, plumbers and builders have cut there work force.

The number of building permits fell almost 51% from this time last year. January 2006-May 2006 vs January 2007-May 2007. Pulte Homes has cut 16% of its work force throughout the United States, with many, many from the state of Michigan due to the decline in new construction.

For more information you can read the Detroit News Article.

I'm not even going to mention Pfizer leaving as I have posted on it before many times as it was a direct hit for us in Ann Arbor.

According to Joan Crary a U.M. Economist, she sees job losses bottoming out in 2009 and a turn around later that year. Only 13% of Michigan residents have a positive outlook for the state which has been heavily weighted in the automotive industry. That is a scary figure. Three-fourths of all Michigan job loses are automotive related.

The last good news in Michigan came last summer, when Google announced they were bringing in 1000 jobs over the next 5 years. Currently they have about 50 employees. They are here for 2 reasons, Larry Page graduated from U.M. with his undergrad degree and they are digitalizing the library at U.M.

We are in a state that desperately needs to diversify its labor force. We must STOP being so dependant on the automotive industry. With that many job losses since 2001, it is my opinion Detroit had every opportunity to correct the changes that needed to happen years before. This crisis in confidence and down-turn did not happen over-night.

We need NEW business models to move to Michigan. Although I am a transplanted Southerner and long to return, I have lived here 24 years and raised my 5 children here. I am worried about their future should they decide to stay. Well, 2 have already said good-bye and are pursuing college and careers in TN.

I know Michigan is not the only state struggling right now.

What about your state ?

What is causing the slowing of the market in other states, localities.

Maybe your state is doing fantastic, let me know.

I need some Good News !!

Posted by Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate on 06/26/2007 06:40 AM

Comments (14)

michigan, economy, jobs

Originally posted at: Ann Arbor Undressed : Automotive Workers In Michigan Not the Only Industry Hit by Lay Offs.

This post has been included in Michigan Information

14 Comments on Automotive Workers In Michigan Not the Only Industry Hit by Lay Offs.

JUN

2007

Missy - We are in the same boat here in Indiana! There are new jobs being created, a few new automotive plants - none in the Indianapolis area. I hope to see our area pick up late next year. We have the new airport opening the end of 2008 which will create some jobs. The city is looking to bring new businesses to the area - downtown and the surrounding area is undergoing some revitalization. Good things happening - our biggest obstacle to homeownership is the lack of reform or relief in Property Taxes.

Missy - I have been a long time follower of the Auto industry, and it has amazed me for years and years how the people at the big 3 refused to pull their heads out of the sand and realize that they had to do something. They way they have been running things, and refusing to do what needed to be done to be competitive and I don't just mean price wise, I mean product wise is the equivalent of corporate suicide.

Here in North East New Jersey, the economy is very good right now. We have some towns which though I would not call them sellers markets, things are selling at a healthy clip, then just 5 miles down the road you find towns or 20,000 people or less with 150 or more homes on the market and in the last 90 days 25 or less went under contract, to me that is a ice cold market. There is one neighborhood where the last 3 sales were all in the 720K to 780K range and now there are 5 homes which are similar to the last 3 sales all priced between 650K and 680K and just sitting, hardly even getting shown according to the listing agents.

Just goes to show that Real Estate is very local.

Jim

Paula, our taxes are so unbelievable in Michigan. On a 200,000 home around 6-7

James, I so agree, it is a dinausaur. It's not like they didn't know in the early 70's right? Opps told my age. Haa

I am afraid that Michigan and that area are in for a long term rebuilding experience. Michigan needs to figure a way to get some alternative industry running. Capital investment is not going to the auto industry as long as they can't compete. Seems to me that diversification is the answer. That's what made the Northern Virginia economy so dynamic. High tech rocks here.

You are so right Lenn, what are they thinking ? All they want to do is raise our taxes. The luxury tax, the business tax and God Forbid a tax on services. Me, hairdressers, all trades, you got it ridiculous !! Tax and Spend.

Missy

I am trying to be optimistic, but we have known we were too dependent on the auto industry for 10 years now and nothing has been done. How much lower do we have to sink?

JUN

2007

Terry, when I moved here 25 years ago, I had no idea Michigan was so top heavy in the automotive industry. Even with my dad being a Buick dealer my entire life. The Big 3 need to do something and quit burying their heads in the sand. I heard one of them say recently, " We need to get back to building good cars". Yes that and lots of other things. I think people are leaving here because of the Union control. Just my opinion.

Missy

I agree the unions are part of the problem. There was an article in the Detroit News yesterday about a bus driver with more than 30 accidents and violations and the city couldn't fire her because the union wouldn't allow it. I don't think it matters what the Big 3 decide to do, we need to diversify our economy. They have been sending jobs overseas, so I think we would have this problem even if they weren't having the problems they are.

Same thing in the schools, Terry. They can't fire tenured teachers. I still maintain one reason Pfizer left was due to the city not letting them cut down a TREE on their property. Oh, well, 24 miles surrounded by reality over here.

Nissan left California and is moving to Nashville, they are widening I65 to give them a ramp! Arms out and very welcoming !!

Missy, In our State, Ca, we are probably in a better situation than Michigan and that is probably because our large state has allowed a variety of industries to grow and also let's not forget Hollywood!!!!

My brother is an electrican on the other side of the state and owns his own business - I know is affected by construction being down--sometimes I don't know how he does it. We had a meeting in our office today and were creatively figuring out how to team up and sell for a builder for his custome homes--I am quite busy just now but it will be an opportunity to learn more about new construction - and Iknow the ups and downs in this business come and I want to keep creating.

I'm glad your busy, Cathy. I am too finally. Wouldn't you know right at 4th of July?

Mana, Yes you do have Hollywood ! !!

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?