MICHIGAN AUTOMOTIVE JOB LOSS NOW EXCEEDS 50%

CHICAGO FED – MICHIGAN AUTO JOB LOSSSpecial CFL cover

Chicago Fed says “the number of automotive jobs Michigan has lost now exceeds the number of Michigan workers still employed in the sector.”

From 1999 to 2009, Michigan’s motor vehicle and parts manufacturing employment declined 72%, more than any other automotive dependent state.

While some auto sector recovery is anticipated, this recovery will not replace the total number of automotive jobs of the “good-old” days.

Today, 38% of Michigan’s auto assembly plant capacity is in use.  Only 84% of the capacity will be used in a most optimist auto recovery scenario.

This raises a number of questions?  How can workers be retrained for new employment opportunities?  What are the new businesses that will create new jobs?  Where are the businesses that will provide these jobs?  What do we do with excess auto manufacturing plant capacity?

What programs are needed and what is the role of locally sponsored economic development programs?

Does this auto workforce have a set of skills that can be transferred to other jobs – what I have termed workforce skill set mobility.

An example of workforce skill set mobility occurred in a recent interview with a Mid-Michigan job shop welding business.  “We’re hiring carpenters. I can teach someone to weld the metal but I need people who understand dimensions and  fractions to layout the work pieces.”  The carpenter’s skill set being transferable to a job shop welding position.

My opinion is that economic developers will be focusing on the notion that some areas have a distinct competitive advantage due to the number of workers and availability of workforce skill sets offering this to the new economy business that will need these skill sets.

Advertisements

Tags: , , ,

One Response to “MICHIGAN AUTOMOTIVE JOB LOSS NOW EXCEEDS 50%”

  1. RECONDITIONED AUTO COMMUNITIES “ON A CLEAR DAY YOU CAN SEE GENERAL MOTORS AGAIN” * « ChuckEckenstahler's Blog Says:

    […] The second reader conclusion drawn will challenge the notion that all former “auto towns” will be repopulated with Richard Florida’s “creative class”. With projections of sizable excess auto plant capacity well into the future, only those “auto towns” with schools, crime rates, cost of living, taxation and transportation access advantages will be attractive to the young  highly educated young people – families needed to renew the neighborhood community social structure necessary for economic sustainability (See blog post Michigan Auto Job Loss Now Excess 50%  at https://chuckeckenstahler.wordpress.com/2009/12/10/michigan-automotive-job-loss-now-exceeds-50/).  […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: