Muskegon County's growth in economic activity some of the best in Michigan for 2011

By Dave Alexander | This e-mail address is being protected from spambots. You need JavaScript enabled to view it  
on February 25, 2013 at 3:38 PM, updated February 25, 2013 at 3:50 PM

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MUSKEGON, MI – That good vibe some are feeling in the Muskegon-area economy of late was backed up late last week with the federal government’s release of gross domestic product numbers for metro areas.

A new day dawns on Muskegon Lake with a spectacular sunrise over Muskegon Lake and the harbor entrance.Marge Beaver | Muskegon Chronicle 

Real GDP change from 2010 to 2011 was a healthy 2.82 percent for Muskegon County, according to the 2011 GDP data released Friday by the U.S. Bureau of Economic Analysis.

Muskegon County sat third among 14 metro areas in Michigan for GDP growth for 2011. Only Detroit at a 3.49 percent increase and Ottawa County at a 4.23 percent hike were higher than Muskegon County.

West Michigan was shown to be on the upswing because, along with state-leading growth in Ottawa County, the Grand Rapids-Wyoming metro area was fourth in the state with a 2.33 percent GDP growth.

“I think this bodes well for our community and the diversity we have in our economy,” said Ed Garner, president of Muskegon Area First, the local economic development agency. “We are seeing most sectors of our economy are up except for the defense industry.”

View full sizeU.S. Bureau of Economic Analysis 

Not all Michigan communities are doing as well in economic activity as West Michigan. Kalamazoo, Lansing, Bay City, Monroe, Battle Creek and Benton Harbor actually lost GDP in 2011. GDP is the monetary value of all goods and services produced within, in this case, the federal metropolitan statistical areas, including both public and private consumption, according to federal economic analysts.

“The growth is mixed across metro areas in Michigan and I would say that most of all, the diversity of the industry mix of the local economies is going to be a key determinant into whether or not the metro area is going to grow or see declines in real GDP,” federal economist Sharon Panek told MLive with the release of the latest statistics.

Garner said Muskegon’s economy has diversified nicely over the past few decades going from an economy relying on heavy industry to one that now shows a balance across a half dozen sectors.

MUSKEGON COUNTY GDP GROWTH BY SECTORS, 2011

Trade: 0.33 percent

Construction: 0.31 percent

Information technology: 0.3 percent

Education/health: 0.27 percent

Business services: 0.22 percent

Leisure/hospitality: 0.08 percent

Transportation: -0.11 percent

Financial services: -0.26 percent

Government: -0.35 percent

Manufacturing: (not available)

Source: U.S. Bureau of Economic Analysis

Muskegon County’s economic activity equally is being generated through health care, manufacturing, leisure/hospitality, retail and business services, Garner said. In the all-important manufacturing sector, Muskegon continues to be led by metal fabrication but also has strong automotive parts, aerospace and furniture sector companies.

Construction, trade and information technology sectors grew the largest in 2011 with government showing the steepest decline, according to the federal analysis.

“We are keeping things in a balance,” Garner said. “People are becoming more optimistic about our local economy.”

Muskegon Area First has been working on a projects list of more than 20 developments in the Muskegon-area in the past few months, Garner said. Those developments range from residential projects in downtown Muskegon to industrial expansions of existing companies and new retail investments near The Lakes Mall, he said.

“Companies continue to keep adding investment, but we have not seen a ton of jobs for those projects,” Garner said.

As Muskegon’s economy has reached back to more activity prior to the Great Recession, jobs have not followed the same path.

Muskegon County’s economy was valued at $4.52 billion in 2008 as the recession took hold. The local GDP dipped to $4.3 billion in 2009 before shooting up to $4.82 billion by 2011, according to the government’s latest data.

Job creation has not been as fortunate. Muskegon County is down about 1,000 jobs since the beginning of the recession: 73,756 at the end of 2012 vs. 74,738 at the end of 2008.

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Want a good paying job in Muskegon? Simply get a college degree, labor statistics show

By Dave Alexander | This e-mail address is being protected from spambots. You need JavaScript enabled to view it The Muskegon Chronicle
on January 26, 2013 at 7:23 AM

MUSKEGON, MI – Muskegon Heights High School students who were guests at a Muskegon Lakeshore Chamber of Commerce breakfast Friday received a clear message on their prospects for the future.

Enlarge Jon Garcia | MLive.com George Erickcek gives a presentation on the forecast of Muskegon's economic future in 2013 on Friday, January 25, 2013 at the Holiday Inn Muskegon Harbor as part of the annual Business for Breakfast hosted by the Muskegon Lakeshore Chamber of Commerce. George Erickcek and Michael Finney forecast the economic future of Muskegon gallery (8 photos)

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Regional labor economist George Erickcek’s analysis showed the importance of finishing school and getting a college degree – a graduate level degree if possible.

Higher education is the surest way to have a job and make a comfortable income in Muskegon County, Erickcek’s economic analysis showed Friday morning at the Business for Breakfast event of the Muskegon Lakeshore Chamber of Commerce.

Erickcek looked at the effect of educational attainment on unemployment and income with some graphs that showed a blunt truth. It is a truth that business and community leaders hope all high school students in Muskegon County contemplate as they chart their futures.

AVAILABLE MUSKEGON COUNTY JOBS

Here are the top 10 jobs posted in the Muskegon area in the past 12 months:

• Retail salesperson

• Registered nurse

• Retail supervisor

• Wholesale sales rep

• Customer service rep

• Mechanical engineer

• Nursing assistant

• Heavy-duty truck driver

• Maintenance and repair worker

• Cashier

Source: Burning Glass/Upjohn Institute

The age-old message was driven home to the chamber audience at the Holiday Inn Muskegon Harbor: Education pays and higher education pays higher.

From 2011 statistics, those in Muskegon County without a high school education had a 52 percent unemployment rate compared to 17 percent for high school graduates, 14 percent for those with some college, 10 percent for those with an associate’s degree and 5 percent for those with bachelor’s and graduate degrees.

“And those with a 52 percent unemployment rate with less than a high school education are those kids that don’t move,” said Erickcek, of the W.E. Upjohn Institute for Employment Research. “They are the ones that are staying here. That’s scary.”

Likewise, total income for those in Muskegon County with a graduate degree averages more than $70,000 a year. Bachelor’s degree holders earn about $34,000, associate degree holder $28,000, those with some college $21,000, high school graduates $18,000 and high school dropouts $10,000 a year, according to Erickcek’s analysis.

A look at the educational requirements of Muskegon-area job postings is much different than the educational attainment of those in the Muskegon County job market. For example, some 41 percent of the workforce has some college education less than a bachelor’s degree but only 8 percent of the job postings are calling for such “middle-skilled” workers.

Likewise, 35 percent of the job postings in the Muskegon area call for a bachelor’s degree while only 15 percent of the current work force has a four-year college degree. Erickcek suggests that Muskegon County, like much of Michigan and many places in the United States, has a skills gap that points to a need to prepare young people for the jobs of the future and to retrain old workers for new careers.

Erickcek was at the Friday chamber breakfast to give his 2013 economic forecast for Muskegon County. Also speaking to the business group was Michael Finney, president of the Michigan Economic Development Corp.

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MEDC President Michael Finney touts Michigan as being business-friendly at Muskegon Chamber breakfast

By Stephen Kloosterman | This e-mail address is being protected from spambots. You need JavaScript enabled to view it The Muskegon Chronicle
on January 25, 2013 at 1:43 PM, updated January 25, 2013 at 3:06 PM

MUSKEGON, MI -- Even as he acknowledged it was too soon to tell if recent controversial reforms were working, Michigan Economic Development Corporation President and CEO Michael A. Finney said the state has improved its climate as a business-friendly state.

Finney spoke Friday morning, Jan. 25 to about 400 people at the Muskegon Lakeshore Chamber of Commerce’s Business for Breakfast event at the Holiday Inn in downtown Muskegon.

In January 2011, when Governor Rick Snyder took office and asked Finney to come to the MEDC, Michigan was ranked as 49 out of 50 states for its business-friendly climate, he said.

“We now have climbed to number 12 overall,” he said. “We’re feeling pretty good about where we are.”

MEDC efforts in recent months have been overshadowed by controversial efforts to help businesses in the state, including right-to-work legislation that helps businesses bypass unions and the end of the personal property tax that hit businesses’ expensive equipment but helped fund municipalities.

RELATED: George Erickcek: Muskegon County job picture for 2013-14 first positive forecast since recession

“It’s a little too early to measure the impact of those,” he said. “But we are getting very positive messaging from the businesses we’re talking to.”

Finney outlined other efforts, programs of the MEDC that seem to be having an effect.

MEDC has $150 million available for grants to all kinds of businesses, and also posts collateral for business loans at roughly the rate of one a day, he said. In Detroit, MEDC has also partnered with an international crowd-sourcing platform, Kiva, to bring small loans of a few thousand dollars to individuals with small business projects that traditional banks wouldn’t look at.

Through its Pure Michigan Business Connect program, MEDC has also solicited commitments from companies to do business with Michigan companies, including hundreds of millions of dollars in commitments from Consumers Energy and DTE Energy.

Enlarge Jon Garcia | MLive.com George Erickcek gives a presentation on the forecast of Muskegon's economic future in 2013 on Friday, January 25, 2013 at the Holiday Inn Muskegon Harbor as part of the annual Business for Breakfast hosted by the Muskegon Lakeshore Chamber of Commerce. George Erickcek and Michael Finney forecast the economic future of Muskegon gallery (8 photos)

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Asked about how his organization valued lake access points like Muskegon’s deep water port, Finney said: “We think that the Great Lakes represent one of the significant transportation, logistics resources that we have.” He said the Great Lakes would be a “significant part” of a shipping and logistics strategy report headed for the governor’s desk in the next 30 days.

As the question-and-answer session continued, Whitehall Mayor Pro Tem Steve Sikkenga asked Finney about how funds lost by the personal property tax would be replaced. More than 40 percent of Whitehall’s revenue comes from the tax.

“Because it’s such a large percentage of our budget, even an 80 percent replacement – which they haven’t done by the way – would mean a large gap,” Sikkenga said later. He said he could see both sides though – his employer may do more business as a result of the tax being gone.

Finney told Sikkenga he wasn’t involved in the legislative process to replace the funds, and advised him to contact his representatives.

Asked about the right-to-work legislation, he said it was too early to tell how it would affect the economy, but the word from the business executives that select new location sites, and at least one of their trade publications, was that Michigan had become a better destination.

“They’re saying this has got Michigan on the radar screen,” he said.

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Whitehall couple nears dream of opening community brewery in their hometown by summer

Published: Friday, January 04, 2013, 7:20 AM Updated: Friday, January 04, 2013, 7:21 AM

By Dave Alexander | This e-mail address is being protected from spambots. You need JavaScript enabled to view it The Muskegon Chronicle

WHITEHALL, MI – Local craft beer fans have doubled their chances of having the first Muskegon County microbrewery opening this year with a recent new business announcement from a Whitehall couple. 

Dan and Jen Hain of Whitehall have been planning a microbrewing business for three years and have decided on opening their Fetch Brewing Co. in the old State Bank building, 100 Colby St. in Whitehall.

The couple’s dreams of the craft beer business are coming together in their hometown, as work completing a roster of investors and consulting with a lawyer and accountant should allow Fetch Brewing to open in late spring or early summer.

That is the same time frame that the owners of Unruly Brewing Co. of Muskegon have plans to open in the burgeoning Russell Block Market in downtown Muskegon. Muskegon County, known as a good beer drinking community, is still awaiting its first microbrewery.

“The location has a high traffic count for a small community,” Dan Hain said of the vacant bank building in the center of Whitehall’s downtown business district. “And even in our little town, the bars and party stores sell a lot of craft beers over the big national brands. When people taste our beer, I think this business is going to do real well. I see us becoming a destination.”

One of the hurdles in the Hains’ business plan has been cleared, as the potential small business owners have a land contract to purchase the State Bank building, which has been planned for a restaurant in the past decade but no business has made the building that dates back to 1912 its home.

Hain said the couple explored other locations for Fetch Brewing Co., including in downtown Muskegon but settled on the State Bank building because it was in their hometown and minutes from their house. Hain, 45, said he and his wife have three small children.

“We want to teach our kids to be self-starters,” the Montague native said of the family’s entrepreneurial spirit. “This will put us out there on the line. It is a long-term dream.”

The Hains now need to secure a state liquor license for Fetch Brewing Co. and complete raising $200,000 in investor’s capital. Hain said he is about 70 percent toward raising the investment funds needed to open and the state license could take up to six months.

The Fetch Brewing Co. is being designed to have 65 seats in the lobby area of the old bank building, Hain said. The bank’s vault is expected to remain as a place where customers can purchase hats, shirts, glasses and other merchandise, he said. Reconstruction is expected to begin this month, he said.

Fetch Brewing Co. hopes to open with the ability to serve snacks and “hand-craft” sandwiches in addition to the locally brewed beverages. Hain said the plan is to have at least eight beers on tap at any time with a rotation of a dozen brews being offered.

A 20-year home brewing veteran, Hain said Fetch’s signature beer will be a red rye called “Lazy Eye Rye.” Fetch Brewing Co. will have a seven-barrel brewing system.

The company name comes from a nautical term – fetch – which is the path of the wind across a length of water, Hain said. It is a sailing expression that is perfect for a brewery so near White Lake, he indicated.

The historic State Bank building in downtown Whitehall at 100 Colby St. as it looked in 2006 when a potential Italian restaurant owner had plans for the building. Chronicle file photo

White Lake Area Chamber of Commerce President Amy VanLoon has heard of the Fetch Brewing Co. plans and is thrilled that the new business development has progressed to the announcement stage.

“It is just awesome,” VanLoon said of the Hains’ plans. “I am thrilled for them and for our community. This will add a different element to the community. I think it will do well. Build it and they will come.”

Dan Hain, who will be the head brewer, has a degree in natural resources management and is currently working in manufacturing operations for a small company in Grand Haven. Jen Hain will provide the business and bookkeeping support for Fetch Brewing Co. A native of North Muskegon, she is in personal banking in Muskegon.

Fetch Brewing Co. hopes to be open this summer seven days a week from 11 a.m. to midnight with reduced hours on Sundays. Off summer season hours could be reduced to five days with the business closed on Mondays and Tuesdays.

“With a large swath of West Michigan’s lakeshore being devoid of a brewery, we want to open a community brewery which would help bridge that gap,” Dan Hain said. “We are confident we can find enough committed investors to make our small business dream a tasty reality and find enough local customers to keep the facility up and running for the foreseeable future.”

Dan Hain can be contacted by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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Brunswick helped form Muskegon's industrial foundation; bowling headquarters continues here

 By Dave Alexander | This e-mail address is being protected from spambots. You need JavaScript enabled to view it The Muskegon Chronicle
on January 11, 2013 at 6:46 AM, updated January 11, 2013 at 8:17 AM

MUSKEGON, MI – Brunswick Bowling sits among the companies that are the titans of Muskegon’s famed industrial history.

Enlarge Dave Alexander | This e-mail address is being protected from spambots. You need JavaScript enabled to view it Brunswick has made making bowling equipment in Muskegon since 1906. Photo: Brunswick Brunswick history gallery (9 photos)

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Just as the Sealed Power Corp., Continental Motors and Central Paper Co. (most recently Sappi Fine Paper) have done in the past, the worldwide leader in bowling equipment and products is taking down its local, historic manufacturing facilities.

Brick-by-brick, the 280,000-square-foot bowling equipment manufacturing plant on the north side of Laketon Avenue at Seaway Drive is being demolished by crews from Clifford Buck Construction Co. and Melching Inc. By spring, gone will be the any vestige of the production facilities that began in 1906 when Brunswick moved its bowling and billiards manufacturing operations to Muskegon with 87 employees.

But the large office and warehouse complex on the south side of Laketon Avenue will keep Muskegon at the center of Brunswick’s bowling world. Some 175 employees remain working for the company in Muskegon, where the worldwide management, research and development, marketing and warehousing of Brunswick Bowling Products are headquartered.

Brunswick came to Muskegon in 1906 as part of the economic development in the post-Lumber Era. Community leaders at that time sought industries to replace the wealth from lumbering, which had fled West Michigan by the turn of the century.

Brunswick was lured to Muskegon, as were other historic Muskegon industrial firms, through the community’s famed Industrial Fund, which offered the company $62,000 toward the construction of a new plant for the promise of industrial jobs. One-time Muskegon lumber baron Thomas Hume was instrumental in bringing Brunswick to Muskegon.

RELATED: Century-old Brunswick bowling plant in Muskegon to be razed as land is cleared for redevelopment

Brunswick was founded by a young Swiss immigrant in Cincinnati in 1845 and quickly became a maker of billiard tables, then known as the Brunswick-Balke-Collender Co.

Today, Brunswick is a global corporation headquartered in Lake Forest, Ill., north of Chicago. Besides bowling and billiards, the company also has brands in fitness equipment, marine engines and recreational boats.

Brunswick owns equipment maker LifeFitness, 32 recreational boat brands including Lund, SeaRay and Bayliner, along with boat engine makers Mariner and Mercury. The publicly-traded corporation has $3.7 billion in annual sales and 15,350 worldwide employees.

“Over its history, Brunswick was a huge corporation here,” said Anne Dake, curator of the Muskegon Heritage Museum. “They have made billiard tables, records and even toilet seats out of Muskegon.”

Muskegon operations peaked with 2,700 workers in 1929, when the the company had 1.3 million square feet of facilities. To survive the Great Depression, the local workers began to produce radios, soda fountains, school furniture and other products.

During the World War II production era, Brunswick produced guided missiles, fuel cells and assault boats. But by 1960, the plant was basically back to bowling technology, producing the latest in automatic pinsetters.

The slide in Muskegon manufacturing during the Rust Belt years in the Upper Midwest also hit Brunswick. The company began to pull its manufacturing operations out of Muskegon in the 1980s, making pins, pinsetters and scoring equipment elsewhere – many times overseas.

The last bowling ball was made in Muskegon in 2006 as the final 110 production workers lost their jobs. Ball manufacturing was moved to Mexico, where it remains today. The pinsetting equipment is now being made in Hungary, according to Vice President of Operations Brad Gandy.

A piece of Brunswick’s Muskegon industrial history will remain here with a display in the Muskegon Heritage Museum in downtown Muskegon.

Last winter, museum volunteers were given an A2 automatic pinsetter that was produced in Muskegon in 1961. The working unit was assembled in the industrial-oriented museum and remains a working reminder of the precise craftsmanship of Muskegon workers.

“The company has been marvelous as they designed, installed and will maintain the pinsetter,” Dake said. “But we must realize that they will still have a big presence in Muskegon.”

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