U adopts robust role in boosting Michigan's economic recovery

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In response to the declining manufacturing sector in Michigan, the University will launch three initiatives to bolster the state's economic recovery.

Lawrence Molnar and Marian Krzyzowski of the U-M Business and Industrial Assistance Division (BIAD) discussed the three $5 million projects at a Wolverine Caucus forum. Jan. 24 in Lansing. The caucus is a group of alumni who work in government and public policy.

The projects will assist Michigan communities facing major plant closures, help manufacturing firms survive in a highly competitive environment and identify Michigan companies that are creating jobs of the future for which dislocated workers can be trained.

"The combination of these three initiatives forms a strong economic development program that will directly address the adverse impacts of economic transition and provide positive results that will help the people of Michigan navigate the road to economic growth and recovery," says Molnar, associate director of BIAD and director of the EDA University Center for Economic Diversification, that is funded by the U.S. Department of Commerce, Economic Development Administration (EDA).

The first project, funded by the state of Michigan Department of Labor and Economic Growth (DLEG) for $3 million over three years, is an automotive manufacturing assistance program that will provide technical and management help to Michigan's small and midsized automotive suppliers hurt by the current wave of downsizing in the auto industry.

The second initiative, also funded by the DLEG for $1.2 million over three years, will identify growth areas of the Michigan economy and link them to companies, jobs and skills that will be in demand. By working with growth companies, BIAD will develop curriculum design packages that will be used by education and job-training organizations to help dislocated workers and others acquire skills needed for jobs of the future.

The third initiative, funded by the U.S. Department of Commerce EDA for $800,000 over two years, is a pilot project that will assist Michigan, Ohio and Indiana communities adversely affected by automotive manufacturing and supplier plant closures that have resulted in significant job losses.

The scope of the work will include communicating with community leaders, representatives of federal agencies and management of corporations that are closing plants; conducting workshops on assistance programs and providing assistance for strategic plan development; and monitoring ongoing plant closings and economic adjustment activities in communities at risk.

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