Macomb economy rebounding faster than expected

There’s something in the air.
It’s almost like spring in January, at least from an economic perspective.

The local auto dealers’ showrooms were crowded in December. The malls were as packed as ever during the Christmas season. And they’re starting to build homes again in Macomb Township.
The dreary economic doldrums that we’ve experienced for nearly a decade seem to be fading, giving us hope as we view the horizon.

Home foreclosures were down by more than 30 percent in Macomb County last year. While jobs are not plentiful, the county’s unemployment dipped to 9.5 percent. That’s nothing to celebrate, except that it is nearly half of the Macomb jobless level of 17.3 percent in the summer of 2009 when the effects of the Wall Street meltdown and the subsequent collapse of the auto industry hit home.

It’s 2012 and optimism is becoming contagious.

The economic rebound is starting to take hold all across Michigan as the state’s job growth in 2011 exceeded the national average. In addition, Site Selection magazine named Michigan the No. 1 destination in the nation for research and development firms.
The magazine said that Michigan’s strong base of engineering talent and the strength of its research universities are cited as the biggest reasons for the strong R&D activity. Michigan ranks No. 5 on the magazine’s list of top 12 states for bachelor’s degrees conferred in engineering.

That certainly establishes a way forward.

Many media reports have noted the buzz at this year’s auto show in Detroit, an intangible upbeat vibe that could translate into higher car sales in 2012 and numerous ripple effects to follow.

In Macomb we have more concrete data on which to draw sanguine conclusions about the future.
A new report released by the federal Bureau of Labor Statistics found that, of the nation’s largest 322 counties (roughly the top 10 percent), Macomb ranked 22nd in job growth from June 2010 to June 2011.
Who could have imagined that kind of rejuvenation just a couple of years ago?

What’s more, the latest survey of Macomb County business owners and executives, conducted by Oakland University and the local chambers of commerce, offers several sweet pieces of news. The online poll of 550 business leaders, conducted during a three-week period in December, produced these nuggets:

* More than 80 percent report that business conditions are equal to or better than they were one year ago. About four in 10 say their revenue growth and “bottom line” have improved over the past 12 months.

* Half believe that conditions for their firm will rise in 2012, and manufacturing firms are even more optimistic.

* Approximately one-third expect to hire employees this year, a figure that may increase if more skilled workers return to the manufacturing sector. Industrial firms are experiencing difficulty filling blue-collar vacancies, particularly for positions that require specialized technical skills.

* While wage rates remain depressed over the entire spectrum of the local economy, nearly one in four employers expects their employees’ pay to get a boost in 2012.

* Among “second stage” companies — those that have emerged from start-up status and are looking to grow — roughly 50 percent say their financial condition has jumped and will be higher a year from now. The number of workers is up and will continue heading in that direction. These sophomore-class firms, closely watched by county officials for their ability to spur growth, are defined as those companies with a work force between nine and 99 employees and $750,000 or more in annual sales.

* Meanwhile, the freshmen — young businesses that have existed for less than two years — are the most gung-ho of all. Three-fourths say their prospects will rise in 2012 and nearly half say they will be hiring.