Here is an article from the Detroit Free Press by Tom Walsh:
Shahid Khan left his homeland of Pakistan at age 16 to study at the University of Illinois at Urbana-Champaign, where he also worked at a small automotive parts firm, Flex-N-Gate, as he earned his degree in industrial engineering.
In 1980, nine years after graduation, the 30-year-old Khan bought Flex-N-Gate, which he has since grown into the 14th-largest U.S. auto supplier with 48 plants and sales of $3.4 billion last year, according to a ranking published this week by Automotive News.
Oh, and Khan bought the Jacksonville Jaguars NFL football team in January for $760 million. Today, Khan and Flex-N-Gate will be singled out for praise by Ford, for codeveloping a two-shot molding process to produce plastic parts for the 2013 Ford Fusion and Lincoln MKZ models to go on sale later this year.
Ford says it bought $5.1 billion in goods and services from tier-one minority-owned businesses last year, up 34% from 2010, and $1.1 billion from female-owned businesses, a 22% increase. Some gains were because of higher car and truck sales, but some sprung from a so-called Joint Technology Framework, in which Ford has shared technology and helped develop products and processes with minority suppliers. Flex-N-Gate was able to mold two different materials in a single press cycle.
"You can get rid of some of the fasteners, some of the assembly, and you have a superior product for less cost," Khan told me in a phone interview Wednesday. "It's a great example of looking in Ford's vault, us bringing something to the party and getting their help and mentoring and developing something that's new and adds value for them and business for us."
As a minority-owned supplier, Khan said Flex-N-Gate has been able to take advantage of training and mentoring programs from Ford and other automakers. "You've got to meet the same metrics, obviously, as anybody else," he added, "and to be successful in this business, you've got to be paranoid. Everybody's disposable, and you've got to innovate. You've got to add value."
About 60% of Khan's $3.1 billion of North American business is with the Detroit Three, split about evenly among Ford, General Motors and Chrysler. Chrysler and GM also reported big increases in purchases from tier-one minority suppliers: Chrysler's reached $2.15 billion last year; GM's total was $3.2 billion.
For most of his manufacturing career, Khan kept a low profile. That changed when he bought the Jaguars. "It's a big change, because football is huge," he said. "In automotive, you have (a) few significant customers, and you talk to them in private. In football, you've got thousands of fans, and they have an opinion, a viewpoint, and you have to respect that. It's a different way of listening to the customer."
The notoriety can be awkward, too, as Khan discovered when workers from a Highland Park plant -- idled since 2009 -- sought attention last month by staging a protest at NFL offices in New York about alleged chemical contamination by Khan-owned plants in the Midwest. Khan said Wednesday his plants are in compliance with environmental standards.
He's matter-of-fact about the tradeoffs of a higher profile. "It kind of goes with the territory," he said. "That's the nature of the beast, and I think you have to accept it for what it is."
I hope the business people in the Rogers City area read this article. The line: "you've got to innovate. you've got to add value." is a powerful statement. We have smart creative business people in our area. Innovation is not reserved for the businesses down state. We can do it too!
Friday, May 25, 2012
Thursday, May 24, 2012
Top Workplaces Make Better Communities
Here is a story about two Michigan companies among the top 10 places to work. Make your business a great place to work and Rogers City will become a more attractive in place to live and work! Each business is important to the community!
Two MI companies among
top 10 U.S. workplaces
The Detroit Free Press reported that two Michigan companies –
Plante Moran and Quicken Loans – have made the list of America's Top 10
Workplaces, a national ranking of employee satisfaction at large companies
around the U.S.
Plante Moran, a Southfield-based accounting and business
advisory firm, was No. 7 out of 805 companies with more than 1,000 U.S.
employees. Quicken, the Detroit-based online mortgage lender, was No. 8, the
Free Press reported.
The 2011 Top 10 list was compiled by WorkplaceDynamics, which
designs and conducts annual employee satisfaction surveys for the Detroit Free
Press and 29 other major newspapers in the country.
"We care about our people," Gordon Krater, managing
partner of Plante Moran, told the Free Press. "All we are is people."
Tuesday, May 22, 2012
Growing Economic Optimism Reported
Walsh College Economic Sentiment Survey Reveals Growing Optimism
May 21, 2012 8:02 PM
Reporting Matt RoushFiled under
Tech
TROY — Optimism concerning expectations regarding economic, business and household conditions for the U.S. and the state of Michigan is on the rise, according to preliminary findings just released from the third Walsh College Economic Sentiment Survey conducted during the first quarter of 2012.
Designed and implemented by members of the finance and economics faculty at Walsh College, participants include a representative group of Walsh College alumni responding to a variety of economic and business-related topics.
“While there are many studies that measure economic sentiment, this study is distinctive in that it targets a population with graduate and undergraduate degrees in business disciplines,” said Walsh College Finance and Economics Chair Dr. Linda S. Wiechowski. The survey has been conducted semi-annually, beginning in the first quarter of 2011.
In general, respondents are cautiously optimistic about the country’s economic outlook, but fairly guarded concerning the state of Michigan. While 48 percent expect the national economy to experience “good” or “mostly good” times over the next five years, only 37 percent expect the same for Michigan. The Walsh Economic Sentiment Ratio — a weighted ratio of positive-to-negative responses, with a value greater than 1.0 representing an optimistic stance and a value less than 1.0 denoting a pessimistic outlook — was 1.62 for the country as a whole, but only .75 for the state.
The outlook regarding business conditions is relatively positive for the country, with 31 percent of survey participants expecting an improved business environment during the next 12 months. In contrast, 30 percent expect “continuously good” or “mostly good” times for Michigan during the same period. The Walsh Business Condition Sentiment Ratio for general business conditions was 1.22 for the country and only .74 for Michigan, indicating a significant disparity in expectations for the nation as opposed to the state.
Respondents appear to be very optimistic about their household financial situation 12 months from now, with 36 percent expecting conditions to improve and only 10 percent expecting a decline in their household finances. The resulting Walsh Household Finance Sentiment Ratio of 3.46 indicates a positive outlook, which is encouraging when considering the majority of those surveyed reside within the state of Michigan and expressed a negative outlook for the state’s economy.
In general, the results reflect a more optimistic outlook than measured in the previous survey conducted in the third quarter 2011. The results are also slightly better overall than the levels of confidence exhibited in the first survey conducted in the first quarter 2011. Moreover, respondents are more optimistic now than six months ago, with each ratio improving substantially from the second to the third survey.
Walsh College, one of southeast Michigan’s largest graduate business colleges, is a private, non-profit, upper-division all-business college where 4,500 students study for bachelor’s, master’s, and doctoral degrees as well as professional certificates. The college offers courses at two campuses, three southeast Michigan university centers, and online. Faculty members integrate application and theory to prepare students for successful corporate and entrepreneurial careers, and employers value and seek out Walsh graduates for their practical business education. Walsh cultivates student and alumni entrepreneurs through the Blackstone LaunchPad and furthers education among the business community through The Walsh Institute.
Walsh College is accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools (www.ncahlc.org; phone: 312-263-0456). Specific degree programs are accredited by the Accreditation Council for Business Schools and Programs (ACBSP, www.acbsp.org) and the International Assembly for Collegiate Business Education (IACBE, www.iacbe.org).
More at www.walshcollege.edu.
As economic optimism grows Rogers City's economy will too!
Designed and implemented by members of the finance and economics faculty at Walsh College, participants include a representative group of Walsh College alumni responding to a variety of economic and business-related topics.
“While there are many studies that measure economic sentiment, this study is distinctive in that it targets a population with graduate and undergraduate degrees in business disciplines,” said Walsh College Finance and Economics Chair Dr. Linda S. Wiechowski. The survey has been conducted semi-annually, beginning in the first quarter of 2011.
In general, respondents are cautiously optimistic about the country’s economic outlook, but fairly guarded concerning the state of Michigan. While 48 percent expect the national economy to experience “good” or “mostly good” times over the next five years, only 37 percent expect the same for Michigan. The Walsh Economic Sentiment Ratio — a weighted ratio of positive-to-negative responses, with a value greater than 1.0 representing an optimistic stance and a value less than 1.0 denoting a pessimistic outlook — was 1.62 for the country as a whole, but only .75 for the state.
Respondents appear to be very optimistic about their household financial situation 12 months from now, with 36 percent expecting conditions to improve and only 10 percent expecting a decline in their household finances. The resulting Walsh Household Finance Sentiment Ratio of 3.46 indicates a positive outlook, which is encouraging when considering the majority of those surveyed reside within the state of Michigan and expressed a negative outlook for the state’s economy.
In general, the results reflect a more optimistic outlook than measured in the previous survey conducted in the third quarter 2011. The results are also slightly better overall than the levels of confidence exhibited in the first survey conducted in the first quarter 2011. Moreover, respondents are more optimistic now than six months ago, with each ratio improving substantially from the second to the third survey.
Walsh College, one of southeast Michigan’s largest graduate business colleges, is a private, non-profit, upper-division all-business college where 4,500 students study for bachelor’s, master’s, and doctoral degrees as well as professional certificates. The college offers courses at two campuses, three southeast Michigan university centers, and online. Faculty members integrate application and theory to prepare students for successful corporate and entrepreneurial careers, and employers value and seek out Walsh graduates for their practical business education. Walsh cultivates student and alumni entrepreneurs through the Blackstone LaunchPad and furthers education among the business community through The Walsh Institute.
Walsh College is accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools (www.ncahlc.org; phone: 312-263-0456). Specific degree programs are accredited by the Accreditation Council for Business Schools and Programs (ACBSP, www.acbsp.org) and the International Assembly for Collegiate Business Education (IACBE, www.iacbe.org).
More at www.walshcollege.edu.
As economic optimism grows Rogers City's economy will too!
Friday, May 18, 2012
Bridge Magazine Reports Michigan Exports Jump
By Rick Haglund/Bridge Magazine correspondent
The 2012 Michigan Scorecard ranked exporting as “good,” up from “average” in 2010.
But the state’s performance in selling Michigan-made goods around the world has improved even more since the 2012 Scorecard data was compiled.
Michigan exports of goods last year totaled $50.8 billion, a 55 percent increase since 2009, when the future of the state’s auto industry was in doubt.
State exports grew from $32.7 billion in 2009 to $44.8 billion in 2011, years measured in the 2012 Scorecard.
Michigan was the seventh-largest exporting state in 2010, but slipped to eighth last year. Louisiana jumped to seventh place as oil exports recovered from the 2010 BP Deepwater Horizon oil spill in the Gulf of Mexico.
The majority of Michigan’s exports last year were cars, trucks and motor vehicle parts. But experts say the Great Recession forced many smaller companies to look for new global markets.
A total of 11,210 Michigan companies — 10,169 of them small businesses — were engaged in exporting in 2009, the latest available data from the U.S. Commerce Department.
“Companies realized in the downturn that they don’t have much choice anymore but to export,” said Patrick McRae, director of international programs at the Prima Civitas Foundation in Lansing.
Exporting supported 6.2 percent of all Michigan jobs in 2009 and 26.9 percent of all manufacturing jobs in the state, according to the latest Commerce Department figures.
Michigan’s agricultural exports grew from $1.18 billion in 2006 to $1.75 billion in 2010, a 48 percent increase, according to the latest data from the U.S. Department of Agriculture.
Michigan is the nation’s 25th largest agricultural exporter.
Demand for Michigan soybeans and other commodities is likely to grow as the economies of China and other developing countries expand.
“The world is hungry,” said Jim Byrum, president of the Michigan Agri-Business Association “We will see new markets develop for Michigan producers.”
McRae, a former U.S. and Foreign Commercial Service officer, said Michigan is benefiting from a renewed focus by the Michigan Economic Development Corp. on helping smaller companies export.
“The MEDC completely rebuilt its export promotion department,” he said. “They’re providing assistance in conjunction with the U.S. Export Assistance Centers” in Detroit, Grand Rapids, Pontiac and Ypsilanti.
But more awareness of those services is needed by small businesses that want to start exporting, according to a recent Michigan State University survey of 66 companies in several economically distressed, Northern Michigan communities.
The survey found that 73 percent of those companies were unaware of federal agencies providing free and low-cost exporting services.
“If companies knew about these resources and used them, it would make a big difference,” said J.D. Snyder, a researcher in MSU’s Center for Community and Economic Development.
The survey also found that 90 percent of those companies want to export more of their goods and services.
MSU created the International Business Center in its Broad Graduate School of Management in 2010 to help Michigan businesses get started in exporting. It has provided assistance to about 50 companies.
Rick Haglund has had a distinguished career covering Michigan business, economics and government at newspapers throughout the state. Most recently, at Booth Newspapers he wrote a statewide business column and was one of only three such columnists in Michigan. He also covered the auto industry and Michigan’s economy extensively.
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19
The 2012 Michigan Scorecard ranked exporting as “good,” up from “average” in 2010.
But the state’s performance in selling Michigan-made goods around the world has improved even more since the 2012 Scorecard data was compiled.
Michigan exports of goods last year totaled $50.8 billion, a 55 percent increase since 2009, when the future of the state’s auto industry was in doubt.
State exports grew from $32.7 billion in 2009 to $44.8 billion in 2011, years measured in the 2012 Scorecard.
Michigan was the seventh-largest exporting state in 2010, but slipped to eighth last year. Louisiana jumped to seventh place as oil exports recovered from the 2010 BP Deepwater Horizon oil spill in the Gulf of Mexico.
The majority of Michigan’s exports last year were cars, trucks and motor vehicle parts. But experts say the Great Recession forced many smaller companies to look for new global markets.
A total of 11,210 Michigan companies — 10,169 of them small businesses — were engaged in exporting in 2009, the latest available data from the U.S. Commerce Department.
“Companies realized in the downturn that they don’t have much choice anymore but to export,” said Patrick McRae, director of international programs at the Prima Civitas Foundation in Lansing.
Exporting supported 6.2 percent of all Michigan jobs in 2009 and 26.9 percent of all manufacturing jobs in the state, according to the latest Commerce Department figures.
Michigan’s agricultural exports grew from $1.18 billion in 2006 to $1.75 billion in 2010, a 48 percent increase, according to the latest data from the U.S. Department of Agriculture.
Michigan is the nation’s 25th largest agricultural exporter.
Demand for Michigan soybeans and other commodities is likely to grow as the economies of China and other developing countries expand.
“The world is hungry,” said Jim Byrum, president of the Michigan Agri-Business Association “We will see new markets develop for Michigan producers.”
McRae, a former U.S. and Foreign Commercial Service officer, said Michigan is benefiting from a renewed focus by the Michigan Economic Development Corp. on helping smaller companies export.
“The MEDC completely rebuilt its export promotion department,” he said. “They’re providing assistance in conjunction with the U.S. Export Assistance Centers” in Detroit, Grand Rapids, Pontiac and Ypsilanti.
But more awareness of those services is needed by small businesses that want to start exporting, according to a recent Michigan State University survey of 66 companies in several economically distressed, Northern Michigan communities.
The survey found that 73 percent of those companies were unaware of federal agencies providing free and low-cost exporting services.
“If companies knew about these resources and used them, it would make a big difference,” said J.D. Snyder, a researcher in MSU’s Center for Community and Economic Development.
The survey also found that 90 percent of those companies want to export more of their goods and services.
MSU created the International Business Center in its Broad Graduate School of Management in 2010 to help Michigan businesses get started in exporting. It has provided assistance to about 50 companies.
Rick Haglund has had a distinguished career covering Michigan business, economics and government at newspapers throughout the state. Most recently, at Booth Newspapers he wrote a statewide business column and was one of only three such columnists in Michigan. He also covered the auto industry and Michigan’s economy extensively.
Grant helps Community
Below is a success story for our community:
Moran Iron Works manufactures finished products for a global market that are typically too large to ship under standard utility lines. Specializing in one-of-a-kind industrial fabrication and conversion, the company produces large custom welding products that require a high-wire corridor for shipment.
A high-wire corridor was created more than 10 years ago between Moran Iron Works outside of Onaway and the deep water port in Rogers City. The company chose to invest $2.5 million to expand and add 60 new positions by 2015, in part due to the location of the high-wire corridor. However, several roads on the corridor have deteriorated over time and are now subject to seasonal weight restrictions. To assure future access to the port, three roads will be reconstructed to all-season condition: CR 638 from M-33 to Glasier Road, Glasier Road from CR 638 to M-68, and Petersville Road from Heythaler Road to US-23.
The estimated cost of these transportation improvements is $1,948,184, including $1,484,272 in state TEDF funds and $463,912 from the Presque Isle County Road Commission.
Enacted in 1987 and reauthorized in 1993, the TEDF was created to provide funding for highway, road and street projects that encourage private investment in Michigan that will create or support jobs. The TEDF "Category A," or "Target Industries Program," provides state funding for transportation improvements that will help accommodate increased traffic and provide commercial routes that are safe and more efficient for new and expanding companies.
Eligible road agencies include MDOT, county road commissions, cities and villages. "The road improvements funded with these grants will encourage major companies to invest in our state, creating jobs and contributing to increased economic development across both peninsulas," Steudle said.
The City of Rogers City is grateful to Moran Iron Works, the Presque Isle County Road Commission, and MDOT for helping our community!
Moran Iron Works manufactures finished products for a global market that are typically too large to ship under standard utility lines. Specializing in one-of-a-kind industrial fabrication and conversion, the company produces large custom welding products that require a high-wire corridor for shipment.
A high-wire corridor was created more than 10 years ago between Moran Iron Works outside of Onaway and the deep water port in Rogers City. The company chose to invest $2.5 million to expand and add 60 new positions by 2015, in part due to the location of the high-wire corridor. However, several roads on the corridor have deteriorated over time and are now subject to seasonal weight restrictions. To assure future access to the port, three roads will be reconstructed to all-season condition: CR 638 from M-33 to Glasier Road, Glasier Road from CR 638 to M-68, and Petersville Road from Heythaler Road to US-23.
The estimated cost of these transportation improvements is $1,948,184, including $1,484,272 in state TEDF funds and $463,912 from the Presque Isle County Road Commission.
Enacted in 1987 and reauthorized in 1993, the TEDF was created to provide funding for highway, road and street projects that encourage private investment in Michigan that will create or support jobs. The TEDF "Category A," or "Target Industries Program," provides state funding for transportation improvements that will help accommodate increased traffic and provide commercial routes that are safe and more efficient for new and expanding companies.
Eligible road agencies include MDOT, county road commissions, cities and villages. "The road improvements funded with these grants will encourage major companies to invest in our state, creating jobs and contributing to increased economic development across both peninsulas," Steudle said.
The City of Rogers City is grateful to Moran Iron Works, the Presque Isle County Road Commission, and MDOT for helping our community!
Thursday, May 17, 2012
Michigan Employment Improves
MI employment rate rises, economy continues to improve
Michigan’s economic
health continues to improve as the employment outlook brightens for Michigan
residents, according to forecasts by University of Michigan economists and the
House and Senate Fiscal Agencies.
“Michigan is in its
third year of recovery after a debilitating recession,” said U-M economist
George Fulton at a state revenue-estimating conference in Lansing on May 16.
“We see a sustained but moderately paced recovery from now through 2014.”
High-wage jobs in
industries such as auto manufacturing, metalworking, engineering and computer
services, and the insurance sector have shown the strongest growth in the job
gains Michigan has seen over the last two years, according to Fulton.
Fulton’s announcement
was followed by data released from the Michigan Department of Technology,
Management and Budget showing that Michigan’s unemployment rate for
April was at 8.3 percent, down from 8.5 percent in March and 10.5 percent in
April 2011.
Michigan’s April 2012
jobless rate was the lowest for the state since the 8.2 percent rate recorded
in July 2008. From April 2011 to April 2012, the number of unemployed in
Michigan dropped by 102,000 or nearly 21 percent. Nationally, unemployment
declined by 9 percent since April 2011.
Job growth in three
major sectors – manufacturing, professional and business services, and
education and health services – accounted for the majority of the state’s
gains.
The summer jobs outlook for teens is brighter too.
About 211,500 Michigan teens ages 16 to 19 are expected to find work this
summer, up 6,700 from summer 2011, according to DTMB. Teens still need to work
hard to compete for a limited number of summer jobs, but the chances are better
than in recent years.
“The teen summer labor
market is highly competitive,” said Rick Waclawek, director of the Bureau of
Labor Market Information and Strategic Initiatives. “Large numbers of teens
enter the workforce in a short time period seeking a limited number of summer
job openings, and this summer may face additional competition from older
workers. However, if teens start looking early and remain persistent, their
chances of obtaining summer jobs can improve.”
In more good news,
Michigan's budget will have about $300 million more this year than state
economists predicted in January. That money is the result of
greater-than-expected tax payments and fewer people receiving Medicaid and
other state services. The money will be used for one-time solutions, according
to state Budget Director John Nixon. Visit here to read more about Michigan's budget surplus.
Wednesday, May 16, 2012
Free Fishing Weekend Soon!
Here is a great good bit of news for fisherfolk!
| Enjoy Michigan's 'Summer Free Fishing
Weekend' June 9-10
Contact: Elyse Walter, 517-373-9719 or Ed Golder,
517-335-3014 Agency: Natural Resources | |
May 9, 2012 The Department of Natural Resources reminds everyone the annual Summer Free Fishing Weekend is scheduled for Saturday and Sunday, June 9-10. On that weekend, everyone - residents and non-residents alike - can fish without a license, though all other fishing regulations still apply. Since 1986, Michigan has annually celebrated the Summer Free Fishing Weekend as a way to promote awareness of the state's vast aquatic resources and the sheer fun of fishing. With more than 3,000 miles of Great Lakes shoreline, 36,000 miles of rivers and 11,000 inland lakes, Michigan and fishing go hand in hand. "This summer's Free Fishing Weekend is a great way to get outdoors and experience some of the finest freshwater fishing in the world," said DNR Director Rodney Stokes. "Fishing is such an affordable activity - anyone can pursue it - so get out this June and try it yourself, for free!" To encourage involvement in Free Fishing Weekends, organized activities are being scheduled in communities across the state. These activities are coordinated by a variety of organizations including constituent groups, schools, local and state parks, businesses and others. There's still plenty of time for communities to plan their own Free Fishing Weekend events, or to find an activity occurring nearby. Visit www.michigan.gov/freefishing for all things related to this unique weekend, including help on event planning and promotion, a registration form for official events, and a chart identifying activity locations. The Michigan Department of Natural Resources is committed to the conservation, protection, management, use and enjoyment of the state's natural and cultural resources for current and future generations. For more information, go to www.michigan.gov/dnr. |
Monday, May 7, 2012
Regional Economic Innovation
In the
winter of 2012, the REI Network submitted more than twenty innovative economic
development ideas and topics of interest. The REI team, in consultation with
the Consultative Panel and key partners, evaluated the ideas and selected the
most promising. In the next phase of the REI cycle, we are calling for authors
and experts to research and develop these topics into co-learning plans and
webinars, and prepare presentations for the Innovate Michigan! Summit on
Thursday, September 6, 2012.
Are you an expert on one of the following current topics that we're working on?
- Young
Professional Attraction and Retention
- Open
Educational Resources
- Strategies
to Support State and Local Microenterprise Development
- Innovation
Brokering
- Internship
Programs in Distressed Communities
- Cooperative
and Business Incubators
- Exporter
Networking Events and Programs
- Entrepreneurial
Curriculum for Secondary Education
- Economic
Development and Small Business Coordination
- Business
Dream to Business Reality
Are you interested in authoring a co-learning plan? Apply now!
Practicum Projects
Completed
Congratulations to Eastern Michigan University, Wayne State University, and Michigan State University student practicum project teams for successfully completing your feasibility studies/practicum projects! You can read the reports and view the presentations on the Current Projects page at reicenter.org.
Social Media Guides
If
you're having trouble with our Twitter
feed or LinkedIn
group, please check out our Introduction to Twitter
and Introduction to
LinkedIn for detailed instructions on how to set up an account and ways to
use those services.
Wednesday, May 2, 2012
Tourism Grows--Let's Get Rogers City Going!
Lizzy Alfs Local hotel industry: Room tax revenue sets record in 2011 as occupancy strengthens
Posted: Sun, Apr 29, 2012 : 5:59 a.m.
Washtenaw County’s hotel occupancy rate grew by nearly 16 percent in 2011, helping to rake in a record-setting $4 million in room tax revenue.
The average daily occupancy rate in the county jumped from 54 percent in 2010 to 62.5 percent in 2011 — indicating that the local hotel industry is strengthening, but not quite back to its 2006 levels of 68 percent occupancy.
“Washtenaw County has come back very strongly,” said Chuck Skelton, president of the Hospitality Advisors Group of Ann Arbor. "In 2011, it had the highest occupancy in the state, and really, in any major Midwestern metropolitan area.”
At the same time, the 2011 hotel room tax collections mark a 13 percent increase over 2010 when revenue totaled $3.5 million, and a 31 percent increase over 2009’s $3 million.
The tax — which is imposed on all hotel guests in the county’s 51 lodging establishments — was increased to 5 percent in 2009 from 2 percent.
Guests pay the 5 percent accommodation tax based on their room costs and that money goes to both the Ann Arbor Area Convention and Visitors Bureau and the Ypsilanti Area Convention and Visitors Bureau for tourism marketing efforts.
The 2009 tax hike, said Skelton, has helped generate enough revenue to put Washtenaw County in a national advertising spotlight via a new Pure Michigan campaign.
The $1 million campaign, which was announced in February, features Washtenaw County in national cable TV ads and on the state’s Pure Michigan website. Four articles will appear on the site throughout the year, written by the local Convention and Visitor Bureaus (CVBs) and featuring various local attractions.
A 30-second TV spot featuring Ann Arbor was posted to the Pure Michigan YouTube channel in March. The ad’s message: “Ann Arbor does it up different.”
“I think this is a huge deal,” Skelton said. “Now we’re on every major cable network out there, when we never would have been able to have that variety and exposure without that increase in funding.”
He added: “People see that ad everywhere and they get this picture of Ann Arbor in their minds.”
The Michigan Economic Development Corp. plans to contribute $500,000 to the campaign, with Ann Arbor SPARK allocating $70,000. The CVBs are allocating the remaining $430,000, which will come directly from the county’s hotel room tax revenue.
“In years past, (the CVBs) wouldn’t even have been able to consider contributing that money,” Skelton said. But the county’s increasing room tax revenues made it a feasible option.
Aside from the Pure Michigan campaign, the tax revenue increase is paying off in additional marketing campaigns by the bureaus, said Mary Kerr, president of the Ann Arbor Area CVB and Debbie Locke-Daniel, executive director of the Ypsilanti Area CVB. The CVBs also:
-- Brought nearly 50 travel journalists to the county, generating 300 stories and an estimated $2.6 million in media publicity.
-- Ran online sweepstakes on visitannarbor.org and visitypsinow.com while increasing the number of unique visitors to the sites.
-- Developed a Japanese language micro website. . -- Serviced hundreds of conventions and events.
Locke-Daniel attributed those marketing campaigns with helping to drive up the county’s occupancy.
“You have to say some of it is helping,” she said. “You have to spend money to make money, and I think the tax revenue is very critical. It puts us on a more level playing field with our competitors.”
With the launch of the Pure Michigan campaign this year, she said, she hopes to see the county’s hotel occupancy rates continue to increase in 2012.
Skelton agreed: “What we’re hoping is that by making this investment in Pure Michigan and other campaigns, that we are going to be able to look at solid growth going into 2012 and moving forward into 2013.”
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
Great report from Lizzy Alfs! Now let's get Rogers City going!
“Washtenaw County has come back very strongly,” said Chuck Skelton, president of the Hospitality Advisors Group of Ann Arbor. "In 2011, it had the highest occupancy in the state, and really, in any major Midwestern metropolitan area.”
At the same time, the 2011 hotel room tax collections mark a 13 percent increase over 2010 when revenue totaled $3.5 million, and a 31 percent increase over 2009’s $3 million.
The tax — which is imposed on all hotel guests in the county’s 51 lodging establishments — was increased to 5 percent in 2009 from 2 percent.
Guests pay the 5 percent accommodation tax based on their room costs and that money goes to both the Ann Arbor Area Convention and Visitors Bureau and the Ypsilanti Area Convention and Visitors Bureau for tourism marketing efforts.
The 2009 tax hike, said Skelton, has helped generate enough revenue to put Washtenaw County in a national advertising spotlight via a new Pure Michigan campaign.
Downtown Ann Arbor's Nickels Arcade was featured in a recent Pure Michigan 30-second TV spot.
Ryan J. Stanton | AnnArbor.com
The $1 million campaign, which was announced in February, features Washtenaw County in national cable TV ads and on the state’s Pure Michigan website. Four articles will appear on the site throughout the year, written by the local Convention and Visitor Bureaus (CVBs) and featuring various local attractions.
A 30-second TV spot featuring Ann Arbor was posted to the Pure Michigan YouTube channel in March. The ad’s message: “Ann Arbor does it up different.”
“I think this is a huge deal,” Skelton said. “Now we’re on every major cable network out there, when we never would have been able to have that variety and exposure without that increase in funding.”
He added: “People see that ad everywhere and they get this picture of Ann Arbor in their minds.”
The Michigan Economic Development Corp. plans to contribute $500,000 to the campaign, with Ann Arbor SPARK allocating $70,000. The CVBs are allocating the remaining $430,000, which will come directly from the county’s hotel room tax revenue.
“In years past, (the CVBs) wouldn’t even have been able to consider contributing that money,” Skelton said. But the county’s increasing room tax revenues made it a feasible option.
Aside from the Pure Michigan campaign, the tax revenue increase is paying off in additional marketing campaigns by the bureaus, said Mary Kerr, president of the Ann Arbor Area CVB and Debbie Locke-Daniel, executive director of the Ypsilanti Area CVB. The CVBs also:
-- Brought nearly 50 travel journalists to the county, generating 300 stories and an estimated $2.6 million in media publicity.
-- Ran online sweepstakes on visitannarbor.org and visitypsinow.com while increasing the number of unique visitors to the sites.
-- Developed a Japanese language micro website. . -- Serviced hundreds of conventions and events.
Locke-Daniel attributed those marketing campaigns with helping to drive up the county’s occupancy.
“You have to say some of it is helping,” she said. “You have to spend money to make money, and I think the tax revenue is very critical. It puts us on a more level playing field with our competitors.”
With the launch of the Pure Michigan campaign this year, she said, she hopes to see the county’s hotel occupancy rates continue to increase in 2012.
Skelton agreed: “What we’re hoping is that by making this investment in Pure Michigan and other campaigns, that we are going to be able to look at solid growth going into 2012 and moving forward into 2013.”
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
Great report from Lizzy Alfs! Now let's get Rogers City going!
Tuesday, May 1, 2012
Students Help Make Community Better
Here is an article from the Tribune by Karrie Koceba about how MSU Business Students are studying Port Austin to help it improve. Rogers City would love to host these students next year to hear their suggestions regarding making Rogers City a better community.
MSU business students study ways to make Port Austin a special place
Published:
By Karrie Koceba
For the Tribune
PORT AUSTIN — Four teams of Michigan State University students promoted a “third place” concept to community members at the Port Austin Visitor’s Center.
The students from a commercial recreation and tourism business class along with MSU Professor Dan McCole, an expert in Michigan tourism, were in town last week at the request of Bad Axe attorney and Port Austin Kayak owner Chris Boyle.Boyle, who is scheduled to finalize his purchase of the marina in Port Austin later this month, said he enlisted the help of McCole and his students after reading about author Ray Oldenburg’s concept of the “third place.” According to Oldenburg, the “third place” is an informal gathering place beyond home and work where people can relax, share ideas and support each other.
Presentation ideas featured expanding the marina business to include a future roof-top café or lounge, an indoor museum featuring local artists, and retail areas for selling Michigan-made items, as well as housing the kayak business that Boyle already owns.
Boyle and his wife worked together to define the core values that would guide their vision of providing the community with a “third place” and came up with the acronym C.R.E.A.T.E., which stands for community, recreation, environment, arts, tourism and entertainment.
“We started the kayak business six years ago on a whim,” Boyle said. “Since then, I’ve attended every tourism related meeting about the Thumb, and other places, that I could attend.”
Boyle said he was introduced to McCole when he started attending Michigan Sea Grant meetings a little more than two years ago.
The Michigan Sea Grant, a collaborative program with the University of Michigan and Michigan State University, is part of a federally funded national college program that promotes better understanding, conservation and use of Michigan’s coastal resources.
One of the projects funded by the Michigan Sea Grant is the Southern Lake Huron Assessment.
According to the Michigan Sea Grant website, the purpose of this assessment is to determine current conditions and identify possible opportunities for coastal communities in the Thumb. Carl Osentoski, executive director of the Huron County Economic Development Corp., who has also been working with the Michigan Sea Grant program, said he enjoyed the fresh perspective the students provided.
“A lot of times, we do not see our own benefits, and it is very helpful to see the area through fresh eyes,” said Osentoski. “We have such beautiful geography here in the Thumb.”
Osentoski explained that part of the function of the EDC is to match businesses with the appropriate resources.
“This was a focused effort that displayed the resources available for a specific business,” Osentoski said. “This event is an example of how small businesses can receive very valuable information by enlisting the help and resources of universities and colleges.”
McCole concluded the event by sharing his beliefs that tourism in Michigan is improving and so is Michigan’s economy.
“The economy is getting better, so there are a number of people who are now in a better financial position to travel,” McCole said. “People are also very protective of their vacations, so they make financial changes which will allow them to overcome travel barriers, like higher gas prices.”
McCole also spoke about the success of the Pure Michigan Campaign, which is in its third year.
“The Pure Michigan Campaign is drawing more visitors from out of state, a trend which I expect to continue this year,” he said. “The Thumb is unique because of its geography, which is enticing to those who are looking for an interesting or new place to visit.”
Boyle said he is looking forward to implementing some of the ideas presented by the students.
“I love the idea of a roof-top restaurant or bar that serves Michigan micro brews and wines,” Boyle said. “I like the idea of making the property comfortable for anyone to come down and relax and enjoy.”
Maybe this could help improve tourism and the economy in Rogers City.
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