Michigan's economy should bottom-out during early 2011 - the same conclusion reached in the 4th quarter survey.  However, the forecast still calls for Michigan to lag the nation's economic performance over the next eighteen months and, as a result, only modest hiring gains will be seen. 

• Approximately 20% forecast increased hiring in Michigan in the next 6 months.  Over seventy percent forecast flat or lower capital investment in Michigan during the same period.  The hiring forecast is lower than the last quarter, while the capital investment forecast is a slight improvement.
• 75% believe Michigan’s economy will be the same or deteriorate over the next 6 months, about a 15% improvement over the 4th quarter survey.  This is in contrast to nearly 100% thinking the US economy will be the same or get better.  
• 55% think Michigan’s economy will get better 18 months from now, an improvement from the 4th quarter survey results.  However, most still believe the US economy will be stronger than Michigan’s at this time.  
• Most Michigan companies expect to perform better than their sector competitors.

Click here to read the full press release.

You probably noticed that our e-newsletter has changed slightly. As the majority of our work centers around the Michigan Turnaround Plan, much of the focus of this e-newsletter is to update you on issues directly related to advancing the Plan. In addition to keeping you informed, there will be opportunities for you to take action to move the Plan forward.

Today, we launched an  advertising campaign, called “The Power of Many,” to increase voter awareness and support for the need to end political partisanship and advance efforts like the Michigan Turnaround Plan to grow the state’s economy. The positive message of the ad demonstrates the power that comes from many people working together for a common cause.  

Polling we conducted recently shows that nearly 30% of voters are already aware of the Plan and nearly 3 out of every 4 that have an opinion of the Plan support some or all of it.

Results of public opinion surveys clearly show that voters are eager for a plan that moves Michigan forward. In a recent survey, 88% of voters are aware the state has a $1.5 billion dollar budget deficit. By a margin of 69% or higher across demographics such as race, age, party affiliation, and geographic location, voters support a holistic approach to addressing Michigan’s budget problems that includes changes to both tax and spending policies. The Michigan Turnaround Plan advocates such a holistic approach to job growth.

The ad will run on approximately 40 TV and radio stations statewide April 14 through May 9. It is also viewable at: MichiganTurnaroundPlan.com.

To read our press announcement, click here. 

When the Michigan Legislature returns from recess on April 13, they will continue deliberations on the state’s FY 2011 budget, including Corrections.  Business Leaders for Michigan urges our state leaders to pass a budget that reduces Michigan’s annual per prisoner incarceration costs from over $32,000 to $25,000, the average for surrounding states.

Michigan is smaller and poorer today than it was in past decades and cannot support the same level of state spending it once did.   Please take a moment to contact your legislators to let them know that we can’t continue to spend money we don’t have and to bring corrections spending under control now. This would amount to roughly $350 million in savings for the state.

Our venture capital fund has established itself as the nation’s largest privately funded, regional venture capital fund of funds. The fund invested in four venture capital funds during its first year of operation, including:

• Arboretum Ventures, an Ann Arbor-based fund that principally focuses on early stage medical device companies.
• TGap Ventures, a Kalamazoo fund that invests in various areas, including medical products and services, information technology and software
• RPM Ventures, an Ann Arbor fund that has a national reputation for its work in information technology, particularly IT with industrial applications
• 5AM Ventures, a fund based in California and Massachusetts that is one of the nation’s leading investors in early stage drug development companies

The fund had strong financial results in the first year. While the nature of venture capital investing typically results in negative returns in the early years, our first year resulted in a 9% appreciation in our investments, well above industry averages. We have also begun our work of utilizing the RVCF as a bridge between the venture capital/start-up company community and the state’s strong business and industrial base.