A Puzzle: Jobs Down, Manufacturing Up

By B. Candace Beeke
Business Review Western Michigan




June 24, 2007

So many western-Michigan manufacturers maintain a quiet presence, it's hard to determine how industry is doing, except through the voices of a few.

As well, the numbers are conflicting. Although employment in manufacturing continues to slide in the region, that doesn't necessarily mean industry has declined overall. The Chicago Federal Reserve's monthly index of manufacturing activity, the Chicago Fed Midwest Manufacturing Index, increased in March by 0.8 percent.

That followed a 0.7 percent gain in February, according to the W.E. Upjohn Institute for Employment Research in Kalamazoo.

The index measures the activity levels of four regional industry sectors -- resources, steel, auto and machinery -- all of which advanced during the first quarter of 2007.

``These advancements, in light of the continued shedding of production workers, clearly show the productivity gains being made in these industries as they compete in the global marketplace,'' W.E. Upjohn reported in its most recent Business Outlook.

Also hinting at an upturn, industrial real estate in the greater Grand Rapids area showed marked improvement in certain categories, said Duke Suwyn, president and CEO of Grubb & Ellis|Paramount Commerce. When he broke out industrial sales to users -- not speculators or investors -- buildings larger than 50,000 square feet showed only five sales in 2005. That number jumped to 21 in 2006, Suwyn said. The trend continues for 2007.

``These are typically entrepreneurial, nonunion, high-skill, low-volume manufacturing,'' Suwyn said. ``We're seeing food, medical, auto, office furniture.''

Manufacturing construction also has increased at First Cos. Inc. in Grand Rapids, said Dean Rosendall, vice president of construction.

``Because we own property around (State Route) 6 -- a lot of industrial property -- we are seeing a fair amount of activity,'' Rosendall said.

That includes Commerce Corp., based in Maryland, which is expanding its Grand Rapids distribution plant by 100,000 square feet. The lawn-and-garden-products distributor will double the size of its space, after acquiring Grand Rapids-based J. Mollema & Son Inc. in March 2006. The project should wrap up in November.

First Cos. also is construction manager for G&T Industries's new 205,000-square-foot manufacturing-and-distribution headquarters in Byron Township. G&T includes four divisions, which will come under one roof when the project is finished in April 2008 -- Decorative Surfaces Inc., World Resource Partners, Global Product Solutions and Foam Products Group.

http://www.mlive.com/business/kzgazette/index.ssf?/base/business-4/1182659490234460.xml&coll=7

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