Thursday, April 20, 2006

Midwest losing clout as one of world's major automaking hubs,

The Detriot News reports:
Michigan has lost nearly 1 in 3 manufacturing jobs since 1999 and impending factory closures by automakers and suppliers could further erode the state's position as a major global automotive hub, according to a new analysis by the Center for Automotive Research in Ann Arbor.

Michigan faces a confluence of forces that threaten its bread-and-butter industry, including overseas competition, the rise of the auto industry in the American South and the continued loss of U.S. market share by Detroit's Big Three automakers.

"So this brings up the natural question: Where the heck is the business?" said Sean McAlinden, chief economist for the Center of Automotive Research. "It's really not developing here."

McAlinden spoke Wednesday at the Federal Reserve Bank of Chicago's automotive conference in Detroit. His report -- "The New Geography of Auto Production" -- came the same day Michigan reported its jobless rate rose to 6.8 percent in March while the nation's unemployment remains at a healthy 4.7 percent.
Unions mean the decline of jobs in the private sector.How long before the South overtakes the North in auto jobs?