Business Legacy Institute

Auto sector continues to buoy Michigan economy

2011-10-25T13:00:00.000-07:00

Comerica Bank's chief economist comments on the Michigan economy in an article on M-Live.

See it here!

Analyst to give 2011 economic forecast

2011-10-25T11:15:00.000-07:00

Mr. George Erickcek, regional analyst with the W.E. Upjohn Institute for Employment Research, to share his vision on December 8th.

For details click here!

Markets and the Economy | Week of October 17, 2011

2011-10-17T11:13:00.000-07:00

Below is the most recent Economic Review from JPMorgan's Chief Economist, James Glassman.

Markets and the Economy | Week of October 17, 2011

THIS WEEK

Forecasters are looking for an improvement in new home construction and more declines in jobless claims.
The spring flurry of price increases is passing, as energy prices retreat. Inflation readings are a reminder that not all price changes are about inflation. Price changes are about relative prices and not inflation, if they are not supported by robust aggregate demand.
Manufacturing production likely rose at a moderate rate in September.

FOCUS: Consumer Spending Gains to Quicken

The economic news since Labor Day has been pointing to a quickening in the pace of the US economy, counter to the pessimism that permeates national mood. How can that be a surprise, with monetary policy very friendly, inflated housing values now history, the global economy mending, and businesses enjoying record profitability and booming capital investment evidence that they get the message?
Recent impressive strength in business capital spending, motor vehicle production, exports, and housing related activity comes from esoteric reports and might not be so visible. It is hard to ignore the quickening in the pulse of the consumer, however, that is visible in the latest retail sales figures.
It might be tempting to dismiss this news as an aberration, because it doesn’t square with the popular story. Still, it isn’t a surprise that the consumer spending pace is quickening, with the shocks that squeezed household budgets this spring passing. The return of the consumer in the third quarter is just the first step. An even better fourth quarter is in store, thanks to the relief at the gasoline pump seen in recent days.

Smart Business Briefs

2011-10-05T11:33:00.000-07:00

This article is brought to you by Jim Coyle at Nexus Business Solutions:

So What Can We Do About a Tough Economy?

No More Steroids Needed

2010-10-12T07:39:00.000-07:00

This piece is provided by Cliff Hodgman, a Financial Advisor at Oppenheimer & Co. Inc. in Kalamazoo:

Taking steroids or weight loss pills can help people look buff. However, working out and eating less are better ways to get sustainable results. The problem is that this takes time and dedication, which for many people seems to be lacking.

The reason we bring this up is that this same “results now…give me drugs” attitude is affecting our economic policy these days. Elections force politicians to have a short-term focus. They want faster growth no matter how they get it. Our opinion: things are better than they seem, drugs aren’t needed, and a more healthy and durable approach should be employed.

Three things are working to lift the US economy – productivity, easy money and the natural economic healing process. Two things are working to hold back the economy – massive increases in government spending and heavy-handed government interference in economic activity. The net-net of all this is that the US could grow faster if it stopped spending so much and interfering, but it is growing nonetheless.

Private-sector payrolls are up 96,000 per month so far this year and civilian employment – an alternative measure of jobs that surveys workers themselves rather than employers – is up 205,000 per month. Yes, that’s right the household survey shows 1.8 million net new private sector jobs this year. And, even though few believe it, consumption is at an all-time high.
But, people want even faster growth. Many want another round of quantitative easing, while some want even more government spending. This is the “it’s not working…I need steroids” attitude we mentioned above.

Unfortunately, progress that comes from steroids is artificial, potentially dangerous and temporary. Easy money cannot create long-term increases in wealth and more government spending hurts the economy.

The United States would be much better off with a patient attitude towards growth. The election is poised to change the course of government interference with economic activity, while current budget problems are already forcing austerity at the state and local level. All of this is good news for the future and will help solidify the economic progress we have already made.

Consumer purchasing power is accelerating. After falling in 2008 and most of 2009, worker pay is rising again. Total “cash” earnings in the private sector are up at a 4.4% annual rate in 2010. Meanwhile, consumers are still paying down debt, just more slowly than they were before.

It’s important to notice that if someone makes $50,000 and pays down $10,000 in debt, he has $40,000 left over to spend. If he then makes $52,000 and pays down $5,000 in debt, his spending capacity jumps to $47,000. In addition, the share of after-tax earnings that households need to service their debts and make other recurring payments (rent, car leases, property taxes, etc.) soon will be at relatively low 1995 levels.

Similarly, businesses have both motive and opportunity for a substantial increase in equipment investment. In the past fifteen months, we’ve gone from using 68% of our industrial capacity to 75%. The long-term average is about 80%, and with current growth rates we should be there in a year.

Partly, this is because industrial capacity itself is declining. When money was cheap in the 2000s, we built too many houses. But business investment was not excessive. And because high-tech investment tends to depreciate more rapidly than the “low-tech” industrial equipment of prior decades, US companies will use their near-record profits and balance sheet cash to expand capacity very soon.

Lastly, many believe that housing will be weak for years. But, even if excess inventories do not get worked down to normal levels until 2013, home builders are going to have to increase housing starts by about 150% over the next few years so that when the excess inventory is gone they are meeting normal demand with normal supply. Builders can’t wait much longer, or they will fall behind and ultimately generate a shortage of homes.

None of these reasons for optimism require the Federal Reserve to ratchet up its “quantitative easing.” We don’t need more steroids. Waiting for the recovery and removing the things that are holding it back (wasteful spending and regulation) is the healthiest way to create sustainable growth.

Consensus forecasts come from Bloomberg. This report was prepared by First Trust Advisors L. P., and reflects the current opinion of the authors. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

By the Numbers...

2010-09-28T10:01:00.000-07:00

Contributed by Clif Hodgman of Oppenheimer & Co. Inc. in Kalamazoo
September 27, 2010

1. AVERAGES VS. ACTUALS - Over the last 20 calendar years (i.e., 1990-2009), the best performing month for the S&P 500 was May, up +2.08% on average (total return). Over the same 2 decades, the worst performing month for the S&P 500 was September, down 0.72% on average. The actual result for the stock index during May 2010 was a loss of 7.99%, its worst monthly performance in 2010 (so far). The actual result for the stock index during September 2010 through last Friday (9/24/10) has been a gain of +9.57%, its best monthly performance in 2010 (so far). The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: BTN Research).

2. WHO GOT WHAT - The top 5% of households accounted for 21.7% of all pre-tax income in the United States in 2009. The top 20% of households accounted for 50.3% of all pre-tax income in the United States last year (source: Census Bureau).

3. SOME INCENTIVE?! - Americans filing a joint tax return in 1953 paid a top marginal tax rate of 92% on taxable income above $400,000 (source: Internal Revenue Service).

4. PUTTING IT INTO PERSPECTIVE - $400,000 of taxable income in 1953 is equivalent to $2.8 million in today’s dollars (using CPI data). The consumer price index (CPI) is a measure of inflation compiled by the US Bureau of Labor Studies (source: Department of Labor).

5. STAY THE COURSE - The Fed voted 8-1 last Tuesday (9/21/10) to leave short-term interest rates unchanged, its 14th consecutive meeting over the last 20 months that has ended in no change (source: Federal Reserve).

6. GET YOUR OWN PLACE - As of the end of 2009, there was an average of 2.6 people in every American household. There are just under 118 million total households nationwide (source: Census Bureau).

7. DECLINING MEMBERSHIP - 1 out of every 3 American workers (34%) was in a union in 1945, i.e., just after World War II. 1 out of every 8 American workers (12%) was in a union in 2009 (source: Department of Labor).

8. JUST FOUR STATES - 62 of the 125 banks that have failed YTD in the United States (i.e., 50%) as of 9/17/10 are located in 4 states. Florida leads with 23 failures, Illinois is 2nd with 15, Georgia is 3rd with 14 and California is 4th with 10 bank failures (source: Federal Deposit Insurance Corporation).

9. JUST FOUR STATES, PART TWO - 160,592 of the 338,836 properties that received a foreclosure filing in August 2010 (i.e., 47%) are located in 4 states. California led with 69,143 problem properties, Florida was 2nd with 56,877, Michigan was 3rd with 17,764 and Illinois was 4th with 16,808 (source: RealtyTrac).

10. BAD BANK - The largest commercial bank failure in US history (Washington Mutual) took place on 9/25/08 or just over 2 years ago. Washington Mutual had assets of $328 billion at the time it failed (source: FDIC).

11. HEALTH INSURANCE STATS - Over the last 20 years (i.e., 1989-2009), the number of Americans that receive their health insurance through the government (i.e., Medicare, Medicaid, or military health care) has increased +62% to 82 million folks. Over the same 2 decades, the number of Americans that receive their health insurance through their employer or through their own direct purchase of coverage has increased +7% to 171 million folks (source: Census Bureau).

12. IT’S FINALLY OVER - It was announced last Monday (9/20/10) that the US recession that began in December 2007 officially ended in June 2009, resulting in an 18-month downturn for the economy. It was the longest running recession in our country since the Great Depression of 1929-33, an economic slump that lasted 43 months. The 9/20/10 announcement came 447 days after the recession officially ended (source: National Bureau of Economic Research).

13. WHY GROWTH IS NEEDED - An individual living on a fixed income over the 20 years from the end of 1989 to the end of 2009 would have suffered a 40% loss of purchasing power over the 2 decades using the CPI as a gauge of his/her inflation (source: Department of Labor).

14. WHY GROWTH IS NEEDED, PART TWO - A husband and wife both aged 62 have a 47% chance of at least 1 of them living to age 90 or older (source: Government Accountability Office).

15. FOOTBALL - The 10th most valuable NFL franchise (Denver Broncos) is worth an estimated $1.05 billion. The 10th most valuable stock in the S&P 500 index as of 8/31/10 (i.e., based upon total market capitalization) was worth $144 billion (source: Forbes, S&P).

Markets and the Economy | Week of September 27, 2010

2010-09-27T10:24:00.000-07:00

Here is the most recent Economic Review from JPMorgan's Chief Economist, James Glassman plus the September Recap report, provided by Darren M. Timmeney of Chase in Kalamazoo.

HIGHLIGHTS
August consumer spending figures will spell out why double dip worries are a little off base. Then September’s auto sales figures (expected to improve on August) will set the consumer tone for the final month of the quarter.

Jobless claims disappointed last week, but the underlying trend seems to be favorable and points to another ok month on the employment front (the September jobs report will be released on October 8).

FOCUS: UPSIDE DOWN
Recessions are random and each one is triggered by unique factors. In its long-running battle to restore low inflation, the Federal Reserve has assumed that inevitable but unexpected recessions would over time create opportunities to bring inflation down, if it could prevent inflation from rising much during good times. The strategy worked and by the 2000s, the Fed had met its inflation mandate.

Enough is enough. Inflation already is below the Fed’s long-run goal of 1.5-2.0% and with the economy operating roughly 10% below potential—or, unemployment double the desirable level—inflation seems likely to fall further.

The Fed’s main focus right now is to help restore the economy to full employment. That will happen in time, over the coming decade.

If inflation drifts lower, as expected, the Fed’s job will not be complete, even if the economy fully recovers. The Fed’s inflation mandate, to which it pointed this last week, will pose a unique challenge. It will require interest rates to remain lower than normal for longer than many still assume. And it will require more growth than many have in mind, a constructive backdrop for stocks.

September Recap
NOTABLE DEVELOPMENTS
First impressions are hard to alter. A round of downbeat economic indicators in August (describing the state of the economy in July) sparked fears of a double dip and that also led to the Fed’s August decision to reinvest mortgage principal payments back into Treasury securities to prevent its balance sheet from shrinking. And it sparked a bond market rally.

Nonetheless, September’s news has indicated that the first impressions were far off the mark. Market perceptions seem unfazed. Despite the suggestion of the data that the economy might have weakened in July, which fueled speculation of a double dip recession, real GDP rose 1.2% in July, according to Macroeconomic Advisers (page 201). That was the best monthly performance since December 2001 when the economy sprang back from the 9/11 terrorist attacks and shook off the recession. July real GDP stands 3.9% annualized above June 2009, the bottom of the recession, according to the NBER academic referees who date business cycles (page 160).

Real GDP could fall back in August and September, but if it is flat in those months, it will have increased 3.3% annualized in the third quarter, double the current consensus forecast.
In fact, September’s data flow points to a pretty decent performance in August. Chain store sales surged 2.1% in August (page 207), the best showing since this spring and the best August report since before the recession. Retail sales jumped in August, with the “core” measure that excludes sales of autos, gasoline and building materials rising 3½% annualized in the most recent three months (page 206). That’s back in the 2-7% range that this measure floated in during the good times in the 2000s. Economists focus on “core” retail sales, which excludes items that are poorly measured in the retail sales survey and so are not used in the estimation of GDP or that reflect changes in prices more than volumes, in the case of gasoline. Home sales began to rise again, implying that the distortions related to the earlier home buyer credit had run their course.

Shipments of nondefense capital goods were strong and capital goods spending, including outlays for aircraft and software (excluded from the analysts’ focus on core capital goods indicators) continues to expand at a double-digit pace in the current quarter. The trade deficit narrowed sharply dampening fears about the arithmetic behind Q3 GDP estimates. Purchasing managers saw better trends than was reflected in many business surveys conducted by the Federal Reserve banks. Payroll gains surprised to the upside and have expanded by 90,000 monthly on average this year. Private employment, which excludes the distortions related to Census employment, rose 78,000 on average this summer and that was only slightly less than 95,000 average monthly pace so far this year.

Employment reflected in the survey of households (adjusted to be comparable to the payroll concepts) is better yet and has increased 221,000 on average this year. Layoffs fell back to earlier levels, implying that the brief spike to 500,000 in August that “sealed” predictions of a double dip was an aberration (pages 164 and 186-187).

Trade flows with China continue to underscore the benefits of the economic ties between the two countries, with US exports to China growing 30% from year earlier levels and still accelerating. Exports to China account for 6.7 percent of all US goods exports. That is up from 5.5% a year ago, 5.3% a year before that, and 1.9% in the summer of 1999. It requires little imagination to see the opportunities that lie ahead for both sides in the rapid development of Asia’s economies (page 229). The political focus on China’s currency, which will evolve toward a more flexible currency in time when China is able to reform her financial system and continue to modernize misses the big picture.

Mortgage refinancing (page 113) and purchase activity is beginning to turn around (page 115).
Bank lending is heading back in a positive direction (pages 134-138).

The federal deficit totaled $1,305 billion over the 12 months that ended in August (the 2010 fiscal year ends in September). That was down from $1,416 billion at the same point last year. The deficit likely will hold near that level, if sunsetting tax cuts are extended.

Estimates of household balance sheets reflected in the Flow of Funds accounts may not reflect an accurate picture until all of the loan modifications that will be working through the pipeline are completed.

The expansion in industrial activity is maturing as inventory adjustments stabilize and final demand trends take over (page 194).

Core CPI inflation continues to edge down, to 0.9% on a year-over-year basis most recently. With the economy severely underemployed and a long road ahead before the economy will return to full employment, inflation is likely to fall further. Notably, the Fed drew attention to its inflation mandate in the FOMC statement, introducing an idea that increasingly will come to dominate the market’s thinking about the future direction of Fed policy.

Odds Brightening for Tax Cut Extension

2010-09-16T11:19:00.000-07:00

Contributed by Clif Hodgman of Oppenheimer & Co. Inc. in Kalamazoo
(click image to enlarge)

Markets and the Economy

2010-09-14T08:30:00.000-07:00

Markets and the Economy Week of September 13, 2010
From JPMorgan's Chief Economist, James Glassman

HIGHLIGHTS
Main Street apparently went on a shopping spree in August even as Wall Street began talking about a double dip. This week’s retail sales report, like the other reports coming in this month, probably will put the double-dip talk back in the bottle.

With one month left in the fiscal year, the federal budget deficit is closing in on $1.340 trillion from $1.416 trillion last year. Next year’s tally is expected to fall to $1 trillion but passage of new stimulus could alter that.

Readings on the manufacturing sector—the Philly and New York Fed surveys and the Board’s industrial production indexes—likely will indicate that the industrial sector continues to grow, although somewhat slower than earlier this year.

August’s inflation data likely will indicate that price changes remain tame. Core CPI inflation has come down to 1% on a year-over-year basis.

FOCUS: WHEN DATA DON'T SQUARE, TRUST LOGIC
The logic for a recovery is compelling and the weaknesses and vulnerabilities that were evident toward the end of the last expansion are no longer present.

Against that backdrop, the bar should be higher than usual for interpreting the flow of economic data. For one thing, economic data are unreliable. And in any case, the broadest, most comprehensive perspectives on the economy, including GDP, GDI, household employment, payrolls, aggregate hours worked, unemployment rate, and withheld employment taxes, are sending conflicting views about the pace of the economic recovery.

If this summer’s economic data implies that the economy has slowed, that impression should be questioned until a clear pattern over several months has been established. At this juncture, logic should trump data.

Read the full article below:

Downtown Kalamazoo Inc. retail incubator takes Innovation Michigan award

2010-08-03T06:18:00.000-07:00

In an article from the Kalamazoo Gazette:

"Downtown Kalamazoo Inc. was named a 2010 Innovation Michigan award winner by Business Review West Michigan.

Business Review West Michigan, a Kalamazoo Gazette sister publication, selected DKI from a pool of 38 finalists representing companies and organizations across the state. The award, in its fifth year, recognizes new and innovative ideas, products or collaborations in the business world.

DKI, a private not-for-profit organization contracted by Kalamazoo’s Downtown Development Authority, launched the retail incubation program in 2009 to help create new shops in Kalamazoo’s central business district.

Three stores on the South Kalamazoo Mall have opened thanks to the program, which provides business training, mentoring and subsidized rent for 18 months, said Rob Peterson, DKI’s director of business recruitment and retention. A fourth store is planning to open this fall.

The incubation program was one of eight winners in this year’s Innovation Michigan awards. Also recognized were Quaeris, of Grand Rapids; AL Software, of Detroit; PiSAT, of Grand Rapids; Dynamic Computer Corp., of Farmington Hills; GRid70, of Grand Rapids; Crystal Clean Auto Detailing, of Grand Rapids; and Heart of West Michigan United Way, of Grand Rapids.

In addition, Business Review honored Amway Corp. of Ada with the Lifetime Achievement Award for Innovation. Past Lifetime Achievement for Innovation winners include Herman Miller Inc., Kellogg Co., Stryker Corp. and Meijer Inc."

Muskegon Area Chamber of Commerce pushing for new business startups

2010-08-02T09:12:00.000-07:00

Click here to read an inspiring article from the Muskegon Chronicle profiling a new startup business in Muskegon, MI.

Included are business tips for beginners:

"Bob Scolnik, a Muskegon County commissioner who has owned several businesses, suggests:

New business owners must not be looking for instant gratification; profits must be reinvested in the business for long-term growth.
As the business grows, live simply and cheaply, putting resources of time and money into growing the business.
Be prepared to work long, hard hours as business ownership is not for those just wanting to "punch the clock."

Jennifer Cross, owner of Continuity, a new business, suggests:

Take the time to write a comprehensive business plan.
Build a growing network of family and friends to develop the business and bring in customers.
Be realistic; not every idea is bound for business success."

Survey suggests West Michigan has above average work force

2010-06-24T10:17:00.000-07:00

It's nice to have hear some positive news about Michigan labor. An article from the Grand Rapids Press details survey results confirming West Michigan's above average workforce...

"The West Michigan workforce long has been touted as one of the area's key resources. Now a survey echoes that perception, showing the area has a higher-rated workforce than other parts of the U.S.

"A whopping 59 percent of local executives rated the 'quality of the workforce' in this area at the highest two points on a seven-point scale. Nationally, workforces were only rated that high by 31 percent of companies on a national survey," Lakeshore Advantage Business Services Director Bruce Adair said.

"This verifies what people have always said about the West Michigan labor market. We've got a strong work ethic and people here are industrious."

Adair surveyed 81 West Michigan corporate leaders and compared their answers with results from a 2008 national survey of 25,000 executives on an array of topics, including workforce quality.

Adair's comparison found 13 percent of company leaders nationally rated their workforce in the two lowest categories. No West Michigan company gave its workers that low a rating."

Read the full article here.

Southwest Michigan professionals to celebrate official American Marketing Association status

2010-06-22T10:10:00.000-07:00

From the Kalamazoo Gazette:

"Marketing professionals, educators and marketing service providers are being invited to celebrate the recognition of the Southwest Michigan Chapter of the American Marketing Association as a professional chapter of the American Marketing Association.

The chapter has grown in several months from a seven-person organizing committee to nearly 60 members, chapter president Wes Martz said in a press release. The organization held its inaugural networking event to develop the chapter on Jan. 27 in downtown Kalamazoo. The celebration is scheduled for 5 p.m. Thursday at the University Roadhouse, 1332 W. Michigan Ave.

Martz, who is also vice president of marketing at Kadant Inc. and a part-time marketing instructor at Western Michigan University, said demand for a local chapter serving Southwest Michigan marketing professionals is “clearly evident.”

“We look forward to offering opportunities to marketing professionals to improve their marketing skills and knowledge through a variety of educational programs and networking events in the coming months.”

The American Marketing Association is a 30,000-member professional organization for those in the practice, teaching and study of marketing. It is also a source for information, training, education and professional networking.

The Southwest Michigan chapter includes Allegan, Barry, Branch, Calhoun, Eaton, Kalamazoo, St. Joseph and Van Buren counties. More information is available at info@amaswmichigan.com."

Kalamazoo event will explain impact of healthcare reform on businesses

2010-06-08T14:10:00.000-07:00

As noted in an article in the Kalamazoo Gazette:

Local business owners have the opportunity to learn how healthcare reform legislation passed earlier this year will affect their companies.

The Kalamazoo Regional Chamber of Commerce will host “Healthcare Reform — What You Need To Know Now” from 10:30 a.m. to noon Thursday, June 10 at the Kalamazoo Country Club.

Gary Kushner, president and CEO of employee-benefits consulting company Kushner & Co., will lead the event.

“This is a great opportunity for the business community to have the effects of the healthcare reform legislation explained without the jargon,” said Steward Sandstrom, president and CEO of the chamber.

Find more details in here in the full MLIVE article.

Social Media & Web Marketing Course

2010-05-13T06:38:00.000-07:00

The Michigan Small Business & Technology Development Center Region 11 chapter is offering an informative class for small business owners looking to make a footprint with today's technology: How to utilize Social Networking Sites to Drive Business to Your Website.

When: Monday, May 17th
Time: 9:00-11:00 AM
Where: Western Michigan University, Haworth College of Business
Cost: $30

This course, intended for beginning users, focuses on how to set-up Internet networking sites like Facebook, Twitter, LinkedIn and YouTube for the small business owner. Learn about different social networking sites and determine which ones suit your business needs. The presenter will show you how to navigate around within these sites, market your business information, learn about branding and how to cohesively connect your business website and social networking sites together.

Course Presenter: Chris McDermott, Owner of Save My Computer, LLC

Find more information here.

The "Twin Cities" Team Up to Bring Top-Notch Marketing Expert, Speaker and #1 Best Selling Author, to Business Community Members

2010-04-19T08:44:00.000-07:00

Tough economic times call for more collaboration, cooperation, creativity, and pooling of resources to have greater impact to the most people. That is why both Otsego and Plainwell's ecomomic development teams are coming together to bring a widely recognized author, speaker and marketing expert directly to our business communities, recognizing the similar obstacles and needs our businesses have.

On Tuesday, May 18, 2010, all businesses - retail, service and manufacturing - are invited to attend a seminar by Tony Rubleski, president of Mind Capture Group. His message is designed to help people "Capture" more minds and profits.

This free seminar, hosted by the cities of Otsego and Plainwell, Otsego DDA, and the Plainwell Chamber of Commerce are bringing Tony Rubleski to town. Tony will help all businesses discover:

How to generate more referrals and repeat business
Secrets to capturing the attention of the 21st century customer
Proven ways to grow your business even during a slow economy
The concept of "Mind Capture" and how top marketers use it to get the edge
The power of content and ways to improve your online marketing

Tony Rubleski, president of the Mind Capture Group which focuses on direct marketing, advanced PR, and sales and marketing strategies, has been featured in various media outlets ranging from Bottom Line Magazine, The Detroit Free Press, CNN Radio, Fox TV, Entrepreneur Magazine Radio, and most recently MiBiz Main Street Strategies. In this publication, Tony notably says, "I believe that fear is the silent, yet number one enemy to most people when it comes to growing their business." One short 1.5 hour session will help any business attack the "fear virus" he refers to by creating a focused retention plan for engaging your best customers.

In addition, he's a faculty member at the US Chamber of Commerce where he teaches in the target areas of marketing and technology topics for chamber and association executives.

Seminar Details
Tuesday, May 18, 2010

7 PM - 8:30 PM

Otsego Middle School, 540 Washington Street

Cost: Free but registration is required.

To register, call (269) 694-6146 or email econ@ci.otsego.mi.us.
Please register by May 11, 2010. Light refreshments will be served.

GVSU Seminar to Focus on Business Sustainability

2010-04-15T11:21:00.000-07:00

As part of Grand Valley State University's Executive Education program, a two-day workshop titled "Understanding and Implementing Sustainability as a Real Practice" is being offered on April 23 and 24. It is intended for executives, managers, and supervisors from all areas of an organization who wish to better understand what “sustainability” in all its facets means and how leading businesses are using it to create jobs, new products, and profit.

It will be led by Fred Keller, CEO of Cascade Engineering, GVSU professors Jaideep Motwani and Kelly Parker, and Norman Christopher, director of GVSU's Sustainable Community Development Initiative.

When: Friday, April 23, from 1-5 p.m., and Saturday April 24 from 8:30-Noon (breakfast served).

Where: Pew Campus, Grand Valley State University.

Fees: $595.00.

More information is available here.

Article highlights mid-life career changes for women

2010-04-12T12:30:00.000-07:00

According to a Grand Rapids Press article, the recent slump in the economy has provided an catalyst for career changes and entrepreneurial opportunities for women in Southwest Michigan.

Sharon Caldwell-Newton, executive director for the Women’s Resource Center, has seen a 20 percent increase in the number of women in their 40s, 50s, and 60s tapping into the expertise offered at the center.

“The increase is directly tied to the downsizing of the economy,” Caldwell-Newton said. “These are women who were in management and have worked for 15 to 20 years, but who have lost their jobs.

“Women often come to us a bit shell-shocked. They are grieving a loss in their lives, whether it’s a job, a divorce, a death. But when they can get past that initial shock of life falling apart, many women have taken this as an opportunity for reinvention.”

Read the Grand Rapids Press article in full here.

Business Outlook for West Michigan

2010-04-12T11:55:00.000-07:00

Read the March 2010 "Business Outlook for West Michigan" from the Upjohn Institute here. This newsletter is published quarterly by the W.E. Upjohn Institute for Unemployment Resesarch, a non-profit research organization. Articles in this issue include a 2010 Employment Forecast for West Michigan, saying, "it has to be better than last year."

MEGA Tax Credit Program a Plus for Michigan's Economy

2010-04-08T12:10:00.000-07:00

New report points to considerable job creation and a relatively low cost per job created

Michigan's MEGA tax credit program has yielded considerable job creation for the state, at a reasonable cost per job created, say Upjohn Institute researchers Tim Bartik and George Erickcek in a study released today.

They estimate that by 2007 MEGA had increased Michigan's employment by at least 18,000 jobs, compared to what most likely would have happened had MEGA never existed and the funds instead been used for greater government spending.

Bartik and Erickcek also find that this job creation has come at a relatively low net fiscal cost to the state. The report finds that over the period of 1996 to 2007, MEGA's net cost is no more than $3,500 per job created. According to Bartik, "The net cost of MEGA's job creation is modest compared to the likely economic and social benefits of higher employment rates for Michigan residents."

The report shows that by boosting Michigan's economy, MEGA has increased tax revenues faster than it has increased public service costs. "These fiscal benefits for the state offset about two-thirds of the financial costs of the MEGA credits," said Erickcek.

Michigan's MEGA tax credit program, created in 1995, awards discretionary tax credits to businesses, to encourage them to add or retain jobs in Michigan. The Bartik-Erickcek study estimates that at least 8 percent of the jobs subsidized by MEGA were induced by the program.

"Even though MEGA induces a modest percentage of all the jobs it subsidizes, the program has high economic benefits because of its high multiplier effects," says Erickcek. The report finds that by 2007 MEGA's multiplier effect stood at 3.88—that is, for each job induced by MEGA, an additional 2.88 jobs are created elsewhere in the Michigan economy.

The report's baseline estimates compare the economic impact of MEGA with the alternative of devoting the resources used for MEGA credits to increased government spending. This comparison yields the 18,000-plus jobs figure mentioned above.

The report also analyzes the impact of MEGA versus using the same resources for cuts in Michigan's main state business tax. In that comparison, the report finds that by 2007 MEGA had created 16,700 more jobs than would have been created by using the same resources to cut the Michigan business tax rate. According to Bartik, "MEGA is more targeted at business investment decisions with high multiplier effects."

The report concludes that there would be gains to making the MEGA program more selective. MEGA's benefits would increase by choosing more projects with high multiplier effects, or projects where the MEGA credit would be more likely to influence the location decision. The report's findings suggest that although MEGA already passes a benefit-cost test, reforms could make it even more cost-effective.

Read the report in its entirety here.

Unique business community book club brings distinguished authors to Southwest Michigan

2010-04-02T07:17:00.000-07:00

Ron Kitchens, president and CEO of Southwest Michigan First and an exclusive columnist for Business Review, announced a new program for the business community, First Readers, that aims to "support to our region’s commitment of being a talent-driven community with a voracious hunger for knowledge and education."

The program seeks to "make sure you know what we are reading and are able to obtain a copy. We encourage you to read and discuss the book with your coworkers, your spouse, your neighbors and your own book clubs. Every two months, we will invite a distinguished author to the area to share his or her book, area of expertise and distinctive personality with us. Then, we invite you to come and listen to the author when he or she arrives in town. Our intention is to become the most well-read and best-educated community in the nation."

He adds, "Those who read know the right moves to make in life and business and rise to the top during times of crises through strategic planning and innovation. Our team reads and discusses, as a group, at least 12 books a year."

Read the full article here.

World Financial Markets: Second Quarter 2010

2010-03-19T12:21:00.000-07:00

Below is the JP Morgan Chase quarterly World Financial Markets update - a summary of their research group view (highlights summarized below) on the global economy and foreign currencies. With the many changes that occur daily in our global economy, this information is intended to help you better navigate the world.

The global recovery will be maintained in 2010, lifting GDP at an above-trend 3.4% pace. The booming recovery in manufacturing will broaden to the service sector. The US will continue to outperform most other developed economies, reflecting more aggressive policy support and previous corporate cost-cutting. The EM will lead the recovery as strengthening external demand boosts exports while highly accommodative policies and generally healthy banking sectors support domestic demand.
A continued positive feedback loop between financial markets, confidence, and consumer and business spending will drive the expansion in 2010. As fiscal stimulus wanes, improving labor markets that generate sizable gains in wage income and ongoing monetary stimulus will support final demand growth. Ongoing household deleveraging, corporate caution, and lingering banking problems in the US and Europe will keep the global recovery modest relative to the depth of the downturn.
Massive output gaps will reduce developed market core inflation to 0.5%oya in 2010. This will prompt the Fed, ECB, and BoJ to leave policy rates on hold. Disinflation pressures are more limited in the EM, where there is less slack. EM policymakers will normalize cautiously; they are skeptical about the G-3 economic recovery and do not want to add to upward pressure on FX rates.
The FX recovery trade faltered in midwinter. EUR and high-beta G-10 currencies were weighed down versus USD and JPY by concerns about Euro-area sovereign risk, policy tightening in China, and soft data, but Greece’s aggressive budget cuts and healthier data already have turned the tide in risk sentiment.
We forecast a broad USD sell-off in the spring and summer followed by a rebound in the fall. The global upturn and strong profits will feed US cyclical capital outflows, and the Fed’s low-for-long policy encourages use of USD as a funding currency. But, shifting Fed rhetoric and liquidity withdrawals should prompt a USD rally in the fall and early 2011. With the BoJ lagging the global tightening cycle, rising capital outflows will undercut JPY in 2011. GBP likely will underperform, as a hung parliament breeds policy uncertainty, and continue to do so in 2011 amid budget cuts and private sector deleveraging. As global growth underpins commodity prices, commodity FX will continue to outperform, led by AUD and CAD.
We expect US Treasury yields to drift higher as QE draws to a close and seasonal patterns play out. We target 2-year yields at 1.25% by midyear and 10s at 4.10%, and we expect the curve to flatten gradually over the course of the year.
EM FX appreciation should endure through end-2010 as central banks tighten. EM growth is on track to reach 6.1%, above our 5.5% estimate for the long-term potential GDP growth rate, and 3.5%-pts higher than G-7 growth. Both EM Asia (7.9%) and Latin America (4.6%) are forecast to grow by more than 1%-pt above their potential growth rates; CEEMEA will grow slightly below potential at 4.2%. Watch rising inflation in EM, particularly in Asia and Latin America. Strong growth and increasing inflation pressures are prompting EM central banks to tighten monetary policy well ahead of their G-3 counterparts. We expect rate hikes in Brazil, China, India, Israel, Malaysia, Peru, the Philippines, and Thailand by June.
We are overall positive on commodities. The outlook for energy turns more bullish in 2Q, when we expect an acceleration in price gains. We hold a positive view on base and precious metals in 1H, but do not expect further price appreciation in 2H as funding costs should start to rise.

Chairman Levin Unveils Small Business and Infrastructure Job Creation Bill

2010-03-16T12:30:00.000-07:00

U.S. House of Representatives Ways and Means Committee Chairman Sander M. Levin (D-Mich.) presented a bill which would provide tax relief to small businesses and extend effective financing measures to create jobs.

“The Ways and Means Committee is acutely focused on legislation that will help spur job growth in our communities,” said Levin in a statement. “Small businesses are an important engine of our economy and this bill combines a number of proposals to help them grow and free up resources to hire new workers.”

Read the full Detroit News article

Read Congressman Levin's press release

Read the draft legislation "Small Business and Infrastructure Jobs Tax Act"

Michigan's Hot 50 Job Outlook

2010-03-12T09:34:00.000-08:00

The Michigan Department of Energy, Labor and Economic Growth recently posted the state's top 50 hottest high-wage, high-demand career options through 2016.

Topping the list are Engineering Managers, Construction Managers and Postsecondary Education Administrators. See the whole list here... http://www.milmi.org

Free workshop "Communicating Skills & Dealing with Difficult People" set for March 16

2010-02-26T10:28:00.000-08:00

Good news for independent retailers: "Buy Local" campaigns are working

2010-02-26T09:56:00.001-08:00

In an article posted on MiBiz.com, a national survey finds that independent retailers are outperforming many larger chains. Read the full article here.

Eight-week workshop for entrepreneurs offered at a discount

2010-02-26T08:57:00.000-08:00

FROM WMU NEWS:

The regional Michigan Small Business and Technology Development Center based at Western Michigan University is teaming up with the Michigan Economic Development Corp. to host an eight-week entrepreneurial workshop next month at a reduced cost.

Gov. Jennifer Granholm announced this month that the MEDC has contributed funding to make the FastTrac New Venture workshop on how to start a business available at MI-SBTDC sites statewide for only $100 during 2010. The program, which teaches participants how to successfully launch and grow a small business, normally costs $700.

The region 11 MI-SBTDC based at WMU covers the nine counties comprising southwest Michigan and is located in Schneider Hall, home to WMU's Haworth College of Business. It will offer an eight-week version of the workshop from March 18-May 13.

Classes will meet Thursdays from 9 a.m. to noon in Room 3150 of Schneider Hall. No class will be held May 6. To qualify for the $100 fee, participants must attend one orientation session, and one MI-SBTDC class on either the Fundamentals of Starting a Business or the Fundamentals of Writing a Business Plan.

Orientation session:

Thursday, March 4--9 to 11 a.m. in 3150 Schneider Hall

Several sections of the two MI-SBTDC classes have been scheduled in the local area, as well as elsewhere around Michigan during the next few weeks.

The orientation session will give attendees a detailed overview of FastTrac New Venture, which is a program of the Ewing Marion Kauffman Foundation that is designed and facilitated by entrepreneurs for entrepreneurs.

One of America's leading entrepreneurial training programs, this practical, hands-on business development workshop helps entrepreneurs hone the skills needed to create, manage and grow a successful business.

Participants work on their own business ideas or ventures throughout the program--moving their ventures to reality or new levels of growth. The training includes a combination of classroom, small group, online and hands-on coaching along with guest speakers and learning from other entrepreneurs.

Pre-registration is required for all three components of the training. Registrations will be accepted until all seats are filled at the workshop as well as the orientation sessions and MI-SBTDC classes. Seats are filling quickly, so those wishing to participate in the FastTrac New Venture workshop are encouraged to make their reservations today.

To register or obtain more information, visit MI-SBTDC Training online or contact the center at sbtdc-kzoo@wmich.edu or (269) 387-6004. Questions should be directed to Buffy Nespodzany, training coordinator for the region 11 MI-SBTDC, at (269) 387-6004.

Corporate restructuring is the topic when well-known corporate strategists returns to WMU on Friday

2010-02-23T10:50:00.000-08:00

Sheldon L. Stone will be the next speaker in the Keystone Breakfast Speaker Series at Western Michigan University. His topic will be “Strategic Corporate Restructuring: 2010 and Beyond,” held in the Dean’s Conference Room of Schneider Hall (the Haworth College of Business) at 7:30 a.m. this Friday, February 26, 2010.

Click here for more details and to read the full story on MLive.com

Quarterly Newsletter - Nexus Business Solutions

2009-11-24T08:40:00.000-08:00

Nexus Business Solutions has published their latest newsletter, helping businesses stay "on top of their game".

Click here to read further...

Representative Pete Hoekstra

2009-11-02T12:33:00.000-08:00

Representative Pete Hoekstra

Business Loan Guarantee Workshops - Through the months of November and December.

MiBiz® Article: WMU enrolled in crash course on change management published Monday, October 12, 2009©

2009-10-15T06:19:00.001-07:00

MiBiz® Article: WMU enrolled in crash course on change management published Monday, October 12, 2009©

Posted using ShareThis

Kalamazoo As A Success Model

2009-09-21T11:39:00.000-07:00

At a recent meeting, local leaders discuss the successes in Kalamazoo as an example to innovate during a tough economy. Read on...

Kalamazoo's economic successes

could be blueprint for

state, lawmaker says

Positive Psychology

2009-09-21T11:25:00.000-07:00

Jim Coyle from Nexus Business Solutions contributed this article to help entrepreneurs keep healthy businesses in times of turmoil. Read the Business Week article here:

How Positive Psychology Can Boost

Your Business

Cash Value of Life Insurance Policies

2009-09-09T06:38:00.000-07:00

Dale DeHaan from Creative Benefit Systems contributed the following article regarding the cash value of Life Insurance and related issues. Many people are utilizing a policy to guarantee the payment necessary to keep the death benefit in place until age 120 for their Irrevocable Life Insurance Trust (ILIT).

Dale notes:

"you don't want to put one dollar more than necessary into a policy like this... We are seeing seniors cash the policies in for the cash value when they are in poor health and do not believe they need their life insurance any longer. We have found that these policies may be worth several times the cash value if they are sold, and everyone should check out this option before they let a cash value contract lapse."

To read further see the Life Concepts Newsletter.

Bronson Signs with Priority Health

2009-08-25T13:30:00.000-07:00

Dale DeHaan from Creative Benefits highlights new cost saving options for health care coverage for local employers considering the announcement that Priority Health has contracted with Bronson Healthcare Group. This contract has added the related hospitals and 200+ physicians to the existing network starting September 1, 2009

Contact Dale DeHaan or your insurance agent for more information and to obtain a quote for your business. See more information here:

Priority Health deal with Bronson

fills Kalamazoo market gap

Articles: What Leaders Really Do

2009-08-20T11:26:00.000-07:00

This timeless article published in the Harvard Business Review by John P. Kotter, was submitted by Jim Coyle from Nexus Business Solutions and can be read in full here. Although it was written over thirty years ago, it is just as relevant today as it was then....

"LEADERSHIP IS DIFFERENT from management, but not for the reasons most people think. Leadership isn't mystical and mysterious. It has nothing to do with having "charisma" or other exotic personality traits. It is not the province of a chosen few. Nor is leadership necessarily better than management or a replacement for it.

Rather, leadership and management are two distinctive and complementary systems of action. Each has its own function and characteristic activities. Both are necessary for success in an increasingly complex and volatile business environment....."

MBT Debate...Continues

2009-08-20T07:50:00.000-07:00

In an article published yesterday, business groups continue to discuss the Michigan Business Tax and legislation regarding the status of tax revenues in Michigan. Included in this article is comment from Charles Owens, from NFIB Michigan, our BLI guest speaker in March of 2008:

Business groups target the MBT

Employment Research - W.E. Upjohn Institute

2009-08-20T07:14:00.000-07:00

W.E. Upjohn Institute published their current research regarding employment. It can be viewed here:

Employment Research

These articles present some insight and opinions on recent topics in the news locally and abroad, including an article entitled "How Can a Community Respond to the Economic Downturn?".

Southwest Michigan First - Newsletter

2009-08-16T07:32:00.000-07:00

The August edition of "The Community Capitalist" gives a brief update of the newly announced and progressing additions to the business environment of Southwest Michigan, published by Southwest Michigan First.

View it here:

July/August 2009

Quarterly Business Outlook

2009-07-27T09:00:00.000-07:00

Each quarter the W.E. Upjohn Institute publishes a quarterly business outlook for West Michigan. The most recent is found here:

June 2009 Business Outlook

State of the Economy

2009-07-20T09:00:00.000-07:00

On October 24, 2008 the Business Legacy Institute held a seminar regarding the State of the Economy at Western Michigan University. The panel was composed of the following distinguished business experts and professionals from the Kalamazoo area.

Mr. George Erickcek, Senior Regional Analyst, W.E. Upjohn Institute
Dr. Christopher Korth, Professor of Finance, Haworth College of Business
Mr. Darren Timmeney, Community President of Chase Bank
Mr. Rich Noreen, Tax Partner, BDO Seidman
Mr. Jim Coyle, Chief Advisor, Nexus Business Solutions

The Kalamazoo Gazette was there and published an article about the event.

Time Management

2009-07-17T09:00:00.000-07:00

Sally Pitt-Van Buren from New Directions Coaching and Consulting, LLC provided this helpful information on time management.

Time Management

Identify your Values:

__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________

Sample list of Values:

Competence, Compassion, Contribution, Diversity, Fame, Family, Financial Security, Friends, Generosity, Health, Honesty, Innovation, Knowledge, Learning, Order, Personal Growth, Possessions, Productivity, Respect, Self-sufficiency, Spirituality, Travel, Work

Goals evolve from values - Develop SMART goals:
S - Specific
M - Measurable
A - Attainable
R - Realistic
T - Timely

Begin to define your SMART goals based on your most important values.

1. _________________________________________________

2. _________________________________________________

3. _________________________________________________

Weekly Planning:
Will you make a commitment for 21 days to take 20-30 minutes each week to plan?

Daily Planning:
Will you make a commitment for 21 days to take 15-20 minutes each day to plan?

What is your current system for managing your Core Four (Plan Daily, Plan weekly, Goals, Values)?

Ways to organize your work:
___________________________________________________
___________________________________________________
___________________________________________________

Time Savers:
___________________________________________________
___________________________________________________
___________________________________________________

What are you going to implement right away?
___________________________________________________
___________________________________________________
___________________________________________________

Success Tidbits

2009-07-10T09:00:00.000-07:00

"When it comes to the success of any new business, you -- the business owner -- are ultimately the "secret" to your success. For many successful business owners, failure was never an option. Armed with drive, determination, and a positive mindset, these individuals view any setback as only an opportunity to learn and grow. Most self-made millionaires possess average intelligence. What sets them apart is their openness to new knowledge and their willingness to learn whatever it takes to succeed."
Source Patricia Schaefer, "The Seven Pitfalls of Business Failure and How to Avoid Them"

Time and Cash Flow Management

2009-07-03T09:00:00.000-07:00

On September 18, 2009 BLI met and discussed Time and Cash Flow Management. Our panel consisted of the following local business professionals:

Jeff Ross, Jeff K. Ross Financial
Brian Bleeker, Ken Bleeker Insurance Agency
Sally Pitt-VanBuren, New Directions
Kelly Duggan, Kelly Duggan Image Consulting
Dan Villwock, Chase Bank

There are many tools and resources for business professionals in regards to this topic including the links provided below:

5 Ways to Protect your Cash Flow
Cash Flow Projections Made Easy
Twelve-Month Cash Flow

Sally Pitt-Van Buren provided helpful information regarding time management. See the post here.

Preparing Your Business for Growth

2009-06-26T09:00:00.000-07:00

Below are a few of the questions that our panel answered at our event on June 12, 2008.

Growth Overview

What is the biggest risk involved in growing a business?
Kurt Kenyon, CPA

Not studying your marketplace and demographics.
Making Assumptions about your business success

What is the most common hurdle an owner or manager needs to overcome?
Dana Nulty-Beals, Nulty Insurance Agency

Delegating responsibilities
Communication

Creating Effective Growth

While managing a schedule, how does a owner/manager best utilize their time?
Jeff Matson, Creative Group

Stay focused on the areas of business that lead to growth

Utilizing Growth Tools

When Considering financing growth and expansion, what do banks require?
Dan Villwock, Chase Bank

Do you understand your business?
Historically what has your business "done"?
Prove your business success
Differentiate yourself from your competition

How does marketing play into growing a business, and what steps are necessary?
Jeff Matson, Creative Group

What is your position in the market
What are your strengths and weaknesses
How are your competitors marketing
Brand Yourself

How do you best manage cash flow and facilitate growth?
Kurt Kenyon, CPA

Step 1: Increase your cash reserves
Step 2: Accelerating your debt pay-off
Step 3: Reinvesting your profit

Cone of Learning

2009-06-23T09:00:00.000-07:00

This diagram is a great reference for business professionals of implementing their education and how we process information based on the level of involvement.
Source

Workplace Productivity

2009-06-19T09:00:00.000-07:00

Our event on April 24, 2009 was about Workplace Productivity. Our panel included:

Kelly Duggan, Kelly Duggan Image Consulting
Brian Bleeker, Ken Bleeker Insurance Agency
Monty Wilson, Payroll Plus
Jeff Ross, Jeff K. Ross Financial
Anthony Clark, Clark Technical Services

Workplace productivity takes into account both the direct and indirect correlation of workplace components including: employees, technology and management. Here is an excerpt of our discussion regarding employee productivity.

How do you get the most out of your employees?

"You will be amazed how far a gas card, free lunch, game tickets or a massage will get you. These things are inexpensive but are of more benefit to the moral of an employee than any 50 cent raise will ever get you. Reward your staff regularly with something fun or a gift they would never get themselves. It is very hard to give a big enough raise to make your employee work more efficiently but give them a set of tickets to the MSU Football Game and you will get a happy employee that will work even harder and spend the time wiser for the organization because of it." Brian Bleeker, Ken Bleeker Agency

Launch Event

2009-06-12T09:00:00.000-07:00

The Business Legacy Institute held it's launch event at the Kalamazoo Air Zoo on March 6, 2008. View the video highlights of this event provided by Kzoom Video Solutions.

Charles Owens from the National Federation of Independent Business was our guest speaker. Charles focused on the new tax laws in Michigan, specifically the Michigan Business Tax.

Here is a helpful calculator to estimate your MBT total.

Michigan Business Tax Calculator

For more detailed information about NFIB and many topics regarding business, please visit their website.

What Is BLI?

2009-06-05T09:00:00.000-07:00

Our tagline, is "Success for Generations". Obviously, "success" means different things to different people. Our intention of this phrase is to get you to think beyond your situation today, this week, or even this year, and instead start creating a plan for success that will stand the tests of time. To quote a time honored cliche, "If you fail to plan, you plan to fail."

One thing that we understand is that the ultimate success of an enterprise is not determined by the idea of the enterprise alone, nor is it determined by the skill or qualifications of people operating it. Although competence and experience are irreplaceable in the marketplace, success is many times based upon mastering financial administration, organizational management, and marketing of our enterprises.

We want BLI to assist you before a problem arises. If we can learn from our own mistakes, and build on our earlier failures; would it be better to learn from others so that we can avoid the problem entirely. As Sir Isaac Newton said in 1676, "If I have seen further than others it is by standing on the shoulders of giants." This is what we are creating here, a group through which we capitalize on the knowledge of others, allowing us to "see further."

Business Legacy Institute

2009-06-01T09:00:00.000-07:00

The Business Legacy Institute is an educational tool and resource for small and local businesses. We aim to create a continued stream of information to local business owners and managers. Keep up to date by subscribing or following.