Manufacturing can lead the way in new economy

Call it the "knowledge economy" or the "innovation economy" or just the "new economy."
Whatever it's called, as Grand Rapids wades into it, manufacturing is well positioned to lead the way, a trio of economic experts said Thursday. But that's not to say those Electrolux jobs are coming back.

In fact, the W.E. Upjohn Institute for Employment Research forecasts a 1.6 percent decline in goods-producing jobs next year for the Grand Rapids area, followed by a 0.5 percent decline in 2009. An increase in service jobs will help the work force hold steady overall.

"We'll be facing flat employment (in 2008)," said George Erickcek, senior regional analyst for the Kalamazoo-based think tank. "We cannot expect job gains in manufacturing. Productivity improvements simply require us to hire fewer workers with higher skills."

Still, "the good stuff is the labor dynamics behind those net figures," he said. Although robust productivity is eliminating many jobs, the manufacturing sector in West Michigan continues to create jobs at the rate of at least 1,500 per quarter.

Speaking at The Right Place Inc.'s annual economic outlook at the Amway Grand Plaza Hotel, Erickcek said data show manufacturers are meeting marketplace demand for inventive products.

"The fastest-growing areas have job losses. The difference between fast- and slow-growing areas is job creation," he said.

"These jobs can only be created in manufacturing if we're innovative. Routine production is going to leave."

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