Thursday, March 13, 2008

GREAT ECONOMIC NEWS!

In case you missed it, there’s been encouraging southwest Michigan employment news in the Kalamazoo Gazette lately. It even showed up on page one!

The first news article reported a speech delivered to the Kalamazoo Rotary Club by George Erickcek, economist at the W.E. Upjohn Institute for Employment Research. According to Mr. Erickcek, the Kalamazoo area is headed in the right direction: job growth is bucking national and state trends with 600 jobs gained in 2007; we rank third in the state (behind Ann Arbor and Lansing) in the percentage of residents aged 25 to 34 who are college graduates; Western Michigan University, Kalamazoo college and the Kalamazoo Promise all contribute to our potential for creating a “knowledge-based economy”, a key element to economic growth.

This assessment was followed two weeks later by twin employment announcements, one by long-time local employer Fabri-Kal and one by new player Kaiser Aluminum. Fabri-Kal stated it will add 160 to 200 new jobs to its current local work force of 115. It will move into a facility previously occupied by Mead Paper which has been vacant since 2001. Kaiser announced it will create 300 new jobs in aluminum extrusion, using 435,000 s.f. at the Mid-Link Business Park.

Next came an announcement by AT&T that it will expand its customer service center in downtown Kalamazoo and add 110 workers. Then one by K&M Machine-Fabricating Inc. in Cassopolis that it hopes to fill 120 positions in the next 18-24 months. K&M will manufacture housings for wind turbines as demand for wind generated electricity continues to grow.

What’s more, new jobs have a “ripple effect.” Mr Erickcek states that each manufacturing job usually creates one additional local job. All of this supports the argument that the Kalamazoo area will manage well and prosper into the future. As the economic contribution of Upjohn-Pharmacia-Pfizer continues to diminish from its historic levels, diversification in employment is very welcome news indeed!

www.jaredarnold.com

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