The Retention Monthly

Quotables


“A quick comparison of projected growth rates for the next two years makes it obvious that we can no longer depend on our traditional markets... If Canada is to exceed expectations... we have to put our energy and resources that will give us the biggest return. I am convinced that means Asia.”
Eric Siegel, president and CEO of Export Development Canada adds his voice to the growing chorus of experts who are pointing to China and India as logical markets for Canadian companies. Just 7% of Canada’s exports go to Asia (excluding Japan) while 75% go to the U.S. Fortunately, the trend is in the right direction. Exports to China are expected to grow 17% this year while trade between Canada and India has increased 70% since 2004. In comparison, trade with the U.S. is forecasted to grow just 7%. Source: “Asia may be key to Canada’s growth as U.S. and Europe falter” by Sharon Singleton. The London ON Free Press. June 9, 2010.

“Prior to these articles, the story used over and over was that we are a dying Rust Belt city. I think it will be impossible to tell that dying Youngstown story ever again.”
Jim Cossler, chief executive of the Youngstown OH Business Incubator (YBI), comments on a flurry of positive publicity about the city’s homegrown revitalization efforts. A few years ago, the city and its young, can–do Mayor, Jay Williams, became a national leader in the “shrinking city” movement in response to a population decline from 170,000 in 1930 to 82,000 today. Now, the YBI is making news for nurturing tech startups, creating jobs and momentum. It was recently featured by BBC World News America as part of their “Rust Belt Revival” series (also featuring Rockford IL and Kokomo IN). And, Youngstown and its incubator were highlighted in a 10–page feature in a May 2010 issue of Inc. magazine. To read the article, visit the YBI website at: www.ybi.org Source: “BBC uses Youngstown as setting for ‘Rust Belt Revival’” by Grace Wyler. The Youngstown OH Vindicator. June 28, 2010.

“We just had our sixth consecutive month of double–digit growth and we are on pace for the 2010 calendar year to be a record for us. I don’t want to claim the recession is over throughout the U.S. But it’s pretty remarkable that we’ve fully recovered the loss of volume at our ports.”
Let’s hope the increased activity at the various seaports in Georgia are a harbinger of a full–blown global economic recovery. According to Curtiz Foltz, executive director of the Georgia Ports Authority, business is back to normal –– and then some –– at the ports in Savannah and Brunswick. Containers handled at the two ports to date in 2010 exceed volume for each of the previous four years. The two ports generate 129,000 full and part–time jobs in the state. Source: “Ga. Ports booming –– will economy follow?” by Dan Chapman. The Atlanta GA Journal–Constitution. June 30, 2010.

“What we are experiencing this decade is a structural change to Michigan’s foundations. This is not a cycle that we’re in... What has happened to Michigan is a complete and utter transformation of our economy. We have to change too.”
Outgoing Michigan Governor Jennifer Granholm describes the economic challenges and changes that Michigan has endured during the past eight years of her administration. Granholm believes that the solution to these changes is more international investment, increased high school graduation rates and a more diverse economy. Granholm is also calling for a constitutional convention to redo the state’s out–dated constitution. Source: “Granholm defends her leadership, says farewell” by Kathy Gray. The Detroit MI Free Press. June 4, 2010.

“I knew something big was going to happen there, but not this big....If anyone had any doubts that Kokomo wasn’t a viable place to do manufacturing business, from all we’ve heard from Chrysler and Delphi, they ought to put those notions to rest.”
Michael Hicks, director of the Center for Business and Economic Research at Ball State University, celebrates the news that two of Kokomo IN’s major auto manufacturers are reinvesting in the community. In June, Chrysler Group LLC, announced a $300 million investment in two transmission factories in Kokomo, preserving 1,200 jobs. In April, Delphi Corporation announced a $50 million expansion of its Kokomo operation that will preserve 72 jobs and create 118 new positions. Kokomo is the last major auto manufacturing center in the state; 25% of its workforce is engaged in manufacturing. Source: “Chrysler spends $300 million to build new transmissions” by K.O. Jackson. The Kokomo IN Tribune. June 9, 2010.

“There is going to be more capacity put into North America –– and Mexico is going to get more than its fair share.”
Automotive consultant Dennis DesRosiers predicts that automobile production in Mexico will grow at the expense of U.S. plants. He forecasts that Mexico’s share of North American auto production will increase from 12% in 2009 to 19% in 10 years. Canada’s share will remain the same at 16% which means that the U.S. share will drop 7% to a 65% share of production. One reason: Mexican auto workers earn less than $4/hour while GM and Ford workers earn $55/hour with benefits. Source: “More Car Jobs Shift to Mexico” by Thomas Black. Bloomberg Businessweek. June 28 – July 4, 2010.

“This used to be an old empty rail yard. Now it’s a distribution facility for a modern–day gold rush.”
Dave Montz, manager of Green Tree borough in western Pennsylvania, comments on the economic impact from companies beginning to tap natural gas from the Marcellus Shale, the biggest natural gas field in the U.S. The Marcellus Shale encompasses 61 million acres across Ohio, West Virginia, Pennsylvania and New York. The natural gas industry is expected to create 200,000 jobs in the region over the next 10 years according to a Pennsylvania State University report. Source: “Natural gas could fuel job boom” by Candy Woodall. The Pittsburgh PA Post Gazette. June 10, 2010.

“Since Volkswagen’s announcement in 2008, we’ve focused our job creation efforts on maximizing the jobs created by that $1 billion investment. We’re working to expand the ripple effect.”
Tennessee Governor Phil Bredesen recently explained why his trip to Germany and Spain is so important for his state’s economy. The Governor and his economic development team are trying to attract further business and trade with the two nations. According to state data, Germany is the state’s sixth largest trading partner and Spain is in the top twenty. Source: “Bredesen, Kisber Going to Germany, Spain to Recruit Business,” by Randy McClain. The Nashville TN Tennessean. June 4, 2010.

“I want to make it clear that Chrysler strongly supports the proposed DRIC. Each day Chrysler moves more than 1,300 shipments, some 2,000 cars and trucks, and makes 1,600 entries per day at the Detroit–Windsor border. Hundreds of our employees cross the border to work in the U.S. or Canada.”
While addressing business and political leaders at an annual Michigan conference, Chrysler CEO Sergio Marchionne emphasized the need for a second bridge across the Detroit River to link Detroit MI to Windsor ON. Marchionne views the proposed Detroit River International Crossing (DRIC) bridge as essential for both his company and Michigan’s economy. Currently, there is just one bridge linking the two cities, the privately owned and operated Ambassador Bridge. Chrysler now has around 20,000 employees in Michigan with about $1.8 billion in annual wages. Source: “Chrysler Boss Marchionne: We’re in it Together,” by Tom Walsh. Detroit MI Free Press. June 4, 2010.