LANSING – Employers are not as optimistic in the 2009 Michigan Chamber of Commerce survey as they were in 2006 or 2007, with a majority (70 percent) now saying the economy is in a decline rather than holding steady. The slide in optimism started 2008 when 63 percent said the economy was declining.
Other Key Findings:
Michigan’s shrinking manufacturing sector continues to be ranked as the biggest problem impacting the state’s economy (72 percent). The new MBT & 22 percent surcharge was a close second at 67 percent. Approximately half of the members also thought state government regulations and government employee unions were also a major problem.
When asked to rank the effect of Michigan’s new business tax, a decisive 63 percent agreed it is worse for my company. Others felt it didn’t affect their company (14 percent) or they were not sure how it affected their company (18 percent).
Aggressive approaches will be taken to address the negative effects of the new business tax, including delay or cancel wage increases (30 percent); absorb the cost (27 percent); delay or cancel capital investments (17 percent); layoff employees (16 percent); and move or cancel Michigan location/expansion (10 percent).
Confidence in Michigan’s economy is lower this year as 70 percent of business surveyed said their region’s economy is declining. That is an increase from 2008 when 63 percent said their region was declining. This year, 24 percent thought growth is flat, and 6 percent felt their region was growing slowly.
Thirty-three percent said their company is expanding in other states to stay competitive. Thirty-two percent will take a more time-honored approach to address a weak economy by retooling the products or services they provide. The remaining 34 percent are waiting out.
When asked to pick between increasing MEGA credits or phasing out the MBT surcharge as ways to spur growth, a resounding 65 percent chose an MBT phase-out. Thirty-two percent were unsure, and only 3 percent thought increasing MEGA credits would be beneficial.
The following five items are ballot proposals the Michigan Democratic Party is considering for the November 2010 general election. Members were asked what impact they believed each proposal would have on Michigan’s economic competitiveness.
1. Require all Michigan employers, regardless of size, to offer affordable health insurance to their employees and dependents and pay a fine or penalty if they did not. Results: Very Negative 65 percent, Negative 28 percent, No Impact 3 percent, Positive 2 percent, Very Positive 2 percent.
2. Make all Michigan workers eligible for unemployment benefits, increase the minimum weekly benefit by $100 and add an additional six months of eligibility.
Results: Very negative 56 percent, Negative 37 percent, No impact 5 percent, Positive 1 percent, Very positive 2 percent.
3. Impose a one-year moratorium, or halt, to all home foreclosures.
Results: Very negative 21 percent, Negative 26 percent, No impact 25 percent, Positive 23 percent, Very positive 5 percent.
4. Roll back utility rates by 20 percent. Results: Very negative 12 percent, Negative 14 percent, No impact 11 percent, Positive 41 percent, Very positive 22 percent.
5. Raise the minimum wage to $10 an hour and cover all workers.
Results: Very negative 52 percent, Negative 34 percent, No impact 10 percent, Positive 4 percent, Very positive zero percent.
For the sixth year, the Michigan Chamber of Commerce invited Michigan employers (chamber members) to share their views on the current challenges of doing business in the state.
The survey was posted online by a commercial service. Members of the Michigan Chamber of Commerce were alerted to the survey and were invited to participate. Members will also be offered to participate in the survey at this
year’s Future Forum. Since the respondents were not randomly selected, the survey did not adhere to strict scientific survey procedures.
The survey was done by Communications & Research, a public relations company. For more information, click on PrCR.Biz
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