Grand Rapids Brewers Create Tree Beer To Support Community Parks

GRAND RAPIDS, MICH.  (July 30, 2013) – Seventeen area breweries have joined forces to create tree inspired beer in support of Friends of Grand Rapids Parks and their Urban Forest Project, an initiative to maximize the tree canopy in all parts of the city.

Each brewery has produced its own version of the craft tree beer, which will be offered on tap starting Sunday, Aug. 4 through Saturday, Aug. 10. Breweries will use ingredients such as maple, oak, cherry, etc. to make their tree inspired beer. Area breweries will be celebrating this initiative in a multitude of ways including, donating $1 per pint sold of its entire batch of tree-inspired beer, others will host release parties and some are even looking at keeping different brewers options on tap at their brewpub. The money collected by each brewery will go into a Tree Bank that will be used to purchase an official "brewers grove" within the city. 

Participating breweries include:

• Crankers Brewery, 213 South State Street, Big Rapids 49307
• Schmohz Brewing Co., 2600 Patterson Ave SE, Grand Rapids 49546
• Mitten Brewing Co.,  527 Leonard St NW, Grand Rapids 49504
• BOB’s Brewery, 20 Monroe Ave NW, Grand Rapids 49503
• Jaden James Brewery, 4665 Broadmoor, Grand Rapids 49512
• Founders Brewing Co., 235 Grandville Ave SW, Grand Rapids 49503
• Hopcat, 25 Ionia Ave SW #100, Grand Rapids 49503
• Brewery Vivant, 925 Cherry St SE, Grand Rapids 49506
• Harmony Brewing Co., 1551 Lake Dr. SE, Grand Rapids 49506
• Grand Rapids Brewing Co., 1 Ionia Ave SW, Grand Rapids 49503
• Rockford Brewing Co., 12 E Bridge St, Rockford 49341
• Perrin Brewing Co., 910 Comstock Park Dr Comstock Park 49321
• White Flame Brewing Co., 5234 36th Ave, Hudsonville 49426
• Pike 51 Brewery, 3768 Chicago Dr, Hudsonville 49426
• Hideout Brewing Co., 3113 Plaza Dr NE, Grand Rapids 49525
• Cellar Brewing Co., 500 E Division St., Sparta 49345
• The People’s Cider Co., 600 Maryland Ave NE Grand Rapids 49505

"We were looking for a tangible way to give back to the city that has been so supportive and enthusiastic about our industry,” said Barry VanDyke of Harmony Brewing Company. “All the brewers are having a blast coming up with tree themed beers; I think folks will see some ridiculously delicious beers come out of this!"

"Grand Rapids is becoming a national leader on urban forest issues, and I can't think of another city in the country that could pull off such a unique way for the community to show their support of trees and parks," said Friends of Grand Rapids Parks’ Executive Director Steve Faber. Friends of Grand Rapids Parks was recently awarded the national Excellence in Urban Forest Leadership Award from the Arbor Day Foundation.

Grand Rapids secured the title of Beer City USA via an online poll in 2012 and 2013. Experience Grand Rapids pays tribute to the area’s craft beer community on its Cool City. Great Beer page. Here visitors can easily find area breweries, local beer events and navigate a craft beer tour throughout West Michigan.

A public kickoff for the Brewers Grove Beer will take place with City Commissioners on Aug. 5th at Harmony Brewing Co. at 4:30 P.M.  A ceremony and planting event for the Brewers Grove will take place on Oct. 17 at Riverside Park. Community members, city officials and media will be invited to plant trees as part of the official ceremony. An open containers permit has been obtained for the event so fans and volunteers can bring growlers. There will also be a large inflatable screen showing a beer movie at dusk.

Quenching The Thirst tells the stories of the entrepreneurs who are driving the growth of Michigan's new craft-brewing industry. Quenching The Thirst is part of the Restore The Roar: Manufacturing Renaissance ebook essay series. To get yours, click here.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids were able to build a new "cluster of prosperity" called the Medical Mile, while the rest of Michigan was crumbling around them.

Last Chance Mile: The Reinvention of an American Community is available wherever books are sold online, as well as on the shelves of Barnes & Noble-Woodland Mall, Schuler Books & Music-28th Street, West Coast Coffee-Monroe Center and the Grand Rapids Public Library in downtown Grand Rapids.

Quenching The Thirst, Chapter Four: The Future

Quenching The Thirst

Chapter Four: The Future

By Rod Kackley

The Michigan craft brewing industry has gone through some “hyper growth” the past five years, according to Mark Stevens, the chief executive officer and co-founder of  Founders Brewing Company in Grand Rapids, Michigan. Surprising? Not to him. “I think the momentum will stick around for the next five years.”

Can we ever have enough or even too many craft breweries?  “I think that is a little different topic than just the growth topic. I do believe we will double the market share but everyone talks about this being a bit of a bubble’” said Stevens.” You can get to the point where there are too many brewers. We could confuse retail a bit with too many SKUs (stock keeping unit) out there on the shelf. Eventually, retail operations like Meijer or Spartan are going to throw their hands up and say ‘Enough. We can’t get any more on the shelf.’”

Stevens really doesn’t see that happening in the near future either. He predicts the “strong will survive, and that is good for the industry. It means you have to pay attention to your product. You have to pay attention to your business. You have to mind what you are doing and make good, sound decisions. Then you will be okay.”

Tom Suprise the chief executive officer and co-founder of Arcadia Brewing in Battle Creek, Michigan is also optimistic about the Michigan craft brewing industry’s potential. He is another brewer who didn’t see this level of success coming. “I don’t think any of us had any clue as to the extent and manner the craft brewing industry would grow. At least from my one perspective, we are pleasantly surprised to be in this position 16 years after we started the company.”

The industry is in good shape, nationwide. “There is a tremendous amount of support and enthusiasm for the craft beer culture,” Suprise said. “Our national goal as a community of craft brewers is a 10 percent share or more. There are 18-hundred to 19-hundred breweries in planning now.”

(For the latest figures on the numbers of craft breweries in the U.S., please click here.)

Could we ever have too many breweries in the industry? “As long as the breweries that are coming online and those that are in an existing state of operation keep the primary focus on quality and good, sound business practices, there is plenty of room for continued growth,” he said.

Suprise shares the passion for beer and brewing that is expressed by others in the field. “We work every day to make the beer better,” he explained.

However, there is a problem that is looming over the Michigan beer industry liked the fabled Sword of Damocles. It is a challenge facing factories, breweries, and food processors across the state. Dan Lennon told us about it in Farm to Fork, (the fourth essay in the Restore The Roar: Manufacturing Renaissance series.)

Beer brewing is really manufacturing. The people brewing beer sing the same song of woe as do people working with heavy metal. Manufacturers are constantly complaining about a lack of talent. Craft brewers in Michigan have he same problem. You read about it in Restore The Roar: Where Are The Workers, and you are reading about it again, here. Suprise said it is no different for his industry and will only get worse as the number of breweries multiplies. “All of us are in search of good, qualified, motivated and passionate people.”

There you have what manufacturing really needs. Passion. That is how you really Restore The Roar. With Passion.

Restore The Roar: Manufacturing Renaissance is a five-part ebook essay series that begins with The Great Collapse. To order any or all of the Restore The Roar essays, please click here.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids created a new cluster of prosperity, the Medical Mile, while Detroit and Flint were become two of the most miserable, crime-ridden cities in America.

Autographed editions can be ordered by click on the Add To Cart button on the Welcome Page of www.rodkackley.com.

Last Chance Mile: The Reinvention of an American Community is also available wherever books are sold online including Abbott Press, as well as the shelves of Barnes & Noble-Woodland Mall,   Schuler Books & Music-28th Street, West Coast Coffee on Monroe Center, and the Grand Rapids Public Library in downtown Grand Rapids, Michigan.

How Much Is Too Much? When Does The Bubble Burst or The Beer Go Flat?

The steady growth of American craft brewing continued during the first half of 2013, according to mid-year data released by the Brewers Association.

During the first six months of 2013, American craft beer dollar sales and volume were up 15 percent and 13 percent, respectively. Over the same period last year, dollar sales jumped 14 percent and volume increased 12 percent.

During the first half of 2013, approximately 7.3 million barrels of beer were sold by small and independent craft brewers, up from 6.4 million barrels over the first half of 2012. American craft beer continues to grow despite decreased overall beer sales, which were down two percent through the first six months of the year.

There are 2,538 breweries operating in the U.S. as of June 30, 2013, an increase of 446 breweries since June 2012. The Brewers Association  also lists an additional 1,605 breweries in planning at the year’s midpoint, compared to 1,252 a year ago.

As of June 30, 2013, the count of craft breweries was at 2,483, showing that 98 percent of U.S. brewers are craft brewers. Craft brewers currently employ an estimated 108,440 full-time and part-time workers, many of which are manufacturing jobs, contributing significantly to the U.S. economy.

We haven’t seen this many breweries in America since the nineteenth century. But, how many is too many? How much is too much? Are we close to a bubble or the beer going flat?
For some insight into that and how two Michigan craft-brewing entrepreneurs feel about the future, please click here for Quenching The Thirst, Chapter Four: The Future.

Quenching The Thirst is the fifth ebook essay in the Restore The Roar: Manufacturing Renaissance series. To download your copy for 99 cents, please click here.

Last Chance Mile: The Reinvention of an American Community tells the story of Grand Rapids, Michigan's desperate race not to be the next Detroit and is available wherever books are sold online. For an autographed hardcover or softcover book please visit Barnes & Noble-Woodland Mall, West Coast Coffee-Monroe Center or Schuler Books & Music-28th Street.

Personally autographed copies can be ordered by clicking the Add To Cart button on the Welcome Page of www.rodkackley.com.

Quenching The Thirst, Chapter Three: The Entrepreneurs

Quenching The Thirst

Chapter Three: The Entrepreneurs

(An excerpt)

By Rod Kackley

Entrepreneurs are the dreamers who create a solution, or come up with a way to satisfy a demand, or dare I write it, a thirst.

It is only right that Michigan is growing so many new breweries, so many new craft beers and so many new entrepreneurs in this space. We like our beer. That is our history.
Detroit has Frederick Ams to thank for bringing lager to what would become the Motor City.

The German brewer moved to Detroit in 1848. He was followed by another German, Bernhard Stroh, who also established himself in Detroit. Anyone with any history in Michigan knows how important that name, Stroh, was to Michigan and especially to Detroit. The name “Stroh” was right up their with Chrysler, Dodge, Ford, and General Motors. Two more of their countrymen would follow and Detroit soon had four breweries.

For a couple of centuries beer had a better reputation than water in America. It was certainly safer to drink. Same thing was true for whiskey. Yet, beer did develop a bad name for years in Detroit, in Michigan and across the nation.  Same thing happened to whiskey and that was followed by Prohibition. However, once that legislative mistake was erased from the U.S. Constitution, the beer industry was soon flourishing again in Detroit.

Michigan’s 40 breweries were pumping out 3.25 million barrels of beer every year by 1940, with 15 of them operating  in Detroit.

Those good times did not last.

By 1962, only two breweries were left in Detroit thanks to a wave of consolidation, acquisition and failure. Soon that number would be down to one. Stroh’s—created by the family of Bernhard Stroh, was the last to fall.

Last Chance Mile: The Reinvention of an American Community shows how the people of Grand Rapids, Michigan created a cluster of prosperity while the rest of Michigan was crumbling around them.
Last Chance Mile: The Reinvention of an American Community is available wherever books are sold. 

For an autographed edition, click here





John Pannell, an Englishman, built the first brewery in Grand Rapids in 1836. Christopher Kusterer followed him in 1847 and he was followed by the Gottlieb brothers.

Grand Rapid Brewing Company—remember that name it will pop up again—was incorporated in 1892. Prohibition forced a name change and a new business direction for Grand Rapids Brewing Company in 1918. The new name: Grand Rapids Products Company. The new product: a soft drink called Silver Foam.

Furniture City Brewing, even though the name was anything but appetizing, was another of the early players that had to shift direction because of Prohibition selling a non-alcoholic beer known as Nu-Bru.  Petersen Brewing changed its name to Petersen Beverage, pushing a drink called Vita.

Just like in Detroit, when Prohibition ended in 1933, beer started flowing again in Grand Rapids and the brewers went back to work making what they loved. Furniture Brewing and Grand Rapids Brewing merged under the latter name, only to become part of Michigan Brewing Co. in 1936. 

Four years later, Michigan Brewing would be producing 500,000 to 600,000 barrels of beer a year.

~RTR~

Sixty years later, a new generation of craft-brewing entrepreneurs would bring new life to the tradition of making beer in Michigan. For a preview of that story, please click here.

Quenching The Thirst is the ebook essay in the Restore The Roar: Manufacturing Renaissance series that tells the stories of the new wave of entrepreneurs driving the creation of the craft brewing industry in Michigan.
You can download your copy of Quenching The Thirst for just 99-cents by clicking here.

Other excerpts are available on this blog, feel free to scroll through them, or at www.rodkackley.com.

Quenching The Thirst, Chapter Two: The Brewers

Quenching The Thirst

Chapter Two: The Brewers 

(An excerpt)

By Rod Kackley

As with any supplier in any supply chain, the Steinman family’s success will be limited to a large degree by the success of their customers, the craft brewers in Michigan. That success is not a given. Even though beer is something of a food staple in Michigan and the Great Lakes region,  brewing beer is not a license to print money.

The Steinmans and everyone in this book may  love beer, but the fact is that beer’s popularity has been falling faster than the foam in an  open bottle of suds left on a picnic table during a July heat wave. According to a story printed in the October 21, 2012 edition of Advertising Age the brewing industry had been on a real downward slide since 2008 until it began picking up in 2012. 

Beer volume sales were up 1.4 percent for the fiscal year ending Sept. 25, as compared to year ago numbers. Here’s good news for Jeff and Bonnie Steinman. Most of that bounce back came from the craft brewing industry. The mega-brewers like Anheuser Busch were still in a spiral.

It is not that the world isn’t thirsty for beer. It is. The world likes its beer, with China leading the way, according to a survey commissioned by one of the largest brewers in Japan. 

The United States is thirsty for beer, just not as thirsty as China. Kirin Holdings puts the U.S. second in the world, consuming 11 percent of the world’s beer. However, China drank 25 percent of what the world’s brewers put out, which was a total of close to 60 billion gallons of beer.

Michigan is falling in love with craft-brewed beer. Michigan Brewers Guild Executive Director Scott Graham believes Jeff and Bonnie Steinman have made a good bet. The state is fifth in the nation in the number of breweries, microbreweries and brewpubs. He said sales of Michigan-made beer in Michigan—he doesn’t track sales outside the state—were  up about 27-percent in 2012 as compared to the previous year. He also pointed out that follows year after year of double-digit growth.

Michigan doesn’t have any brewer on the scale of Anheuser-Busch. However, beer is still more than a cottage or hobby industry for Michigan’s economy. Graham  said the craft brewing industry pumps  for more than $24 million in wages with an economic contribution of well over $133 million. State officials said that Michigan collected $42.1 million in beer tax revenue in FY 2010-2011. Admittedly that pales in comparison to liquor tax revenue ($135 million) and does not even come close to the tobacco tax revenue collected that fiscal year of more than $974 million. Yet,  Graham doesn’t see any problem with labeling Michigan, “The Great Beer State.” 

With 118 craft breweries in the state, Jeff and Bonnie would seem to have plenty of customers in Michigan. However, that might be a problem. Could  it be that the industry is doing too well? Is it possible to have too many craft breweries?  Could this be a craft-brewed beer bubble that is in danger of exploding

“I think at some point, it probably is possible,” admitted Graham. “But, right now we have about three-and-a-half-percent of the market. That is lagging behind the national trend. We have a goal of achieving a 10 percent share.”

Quenching The Thirst, part of the Restore The Roar: Manufacturing Renaissance ebook essay series, tells the story of Michigan’s craft brewing entrepreneurs. For a free preview and download, please click here.

Last Chance Mile: The Reinvention of an American Community tells the inspirational story of how the people of Grand Rapids, faced with the worst economy Michigan had ever seen, changed the way the world sees their community and the way they see the world.

Last Chance Mile: The Reinvention of an American Community is available wherever books are sold online including Abbott Press. Autographed editions are available by clicking on the Add To Cart button on the Welcome Page of www.rodkackley.com.

Quenching The Thirst,Chapter One:The Farmers By Rod Kackley

Quenching the Thirst 

Chapter One: The Farmers

(An excerpt)

By Rod Kackley

Jeff and Bonnie Steinman (pictured above) are betting their farm on Michigan’s craft brewing industry. The Barry County, Michigan couple spent several years experimenting before launching Hop Head Farms LLC in the summer of 2012.  They are growing hops that brewers need on a 40-acre lot with 15-acres of new plants.

They also have a small test yard that the Steinmans started in 2009.

This is perfect for these two. Jeff and Bonnie are just what they say they are and you can feel their enthusiasm for their craft even in a conference call phone interview. I spoke with them from the patio of a Starbucks near Kalamazoo, Mich. while they took a break from their farming operation on a hot summer day

You have to believe her when Bonne says that she and Jeff are “plant people” who are always looking for new crops to grow. Perhaps more importantly, they don’t just like beer. They love beer. Bonnie said they are “beer enthusiasts, especially (for) Michigan-brewed beers.”

How could there be any business more perfect for this couple? 

They are targeting craft  and home brewers who Jeff said are having a hard time getting the hops they need, especially locally grown hops. Large hop farms are locked into long-term contracts with the macro-brewers, the giants of the industry. “So we are trying to reopen  the market to some of the smaller guys,” he said. “Very few have large barrel capacity in any one state. The small breweries have a hard time. We would like to work with larger breweries but would like to help the smaller breweries with supply issues.”

The smaller breweries are really a victim of their own success, or better said, they are a victim of their own recipes. They have supply issues because the micro- and craft-brewers use a lot more hops to make barrels of beer than do macro-brewers, according to Jeff. “Even though is a small percentage, the craft brewers have really impacted the supply of hops.”

  

Jeff and Bonnie got down and dirty when it came time to ignite their passion. With a business model in the works for several years , Jeff said that close to 15,000 plants were hand-planted in hand-crafted hop hills augmented with local compost and covered in organic weed control paper over a period of three and a half weeks.  Five varieties of hops were planted of which three were in short supply for the 2012 season already when I spoke with the Jeff and Bonnie.  

More than 20 volunteers came from as far away as the Chicago and Detroit areas to assist the Steinmans  in the planting of the hops.  They converted a  corn field located in downtown Hickory Corners to a hop farm  of nearly 15,000 plants grown on a trellis system reaching over 20 feet high in merely four months.  

“The farm and facilities were developed with the assistance of several different contractors contributing their expertise to the project including a trellis contractor, well drillers, irrigation contractor, and Morton Buildings and their subcontractors  as well,” Jeff said.  Nearly all materials and work are from Michigan businesses including treated pine poles, wire, compost, and starter plants.”

He also said they planned to receive additional assistance with the work still ahead of them  through University of Illinois interns, paid seasonal employees and continual volunteer assistance that has proven invaluable.  

Jeff and Bonnie's story continues in Quenching The Thirst, part of the Restore The Roar: Manufacturing Renaissance ebook essay series.

Quenching The Thirst is available now at Amazon and Vook.com

Light Vehicle Assembly Numbers Forecast To Grow, But It's OK To Keep Your Fingers Crossed

Global light vehicle assembly is expected to reach 81 million units in 2013, an increase of 2.3 percent compared to 2012, according to Autofacts, PwC's automotive analyst group. While the global market is expected to see positive growth overall, there are a number of mixed signals at the regional level. North America and Developing Asia-Pacific markets are driving most of the growth, while Developed Asia-Pacific is expected to see continued declines as assembly is localised abroad. The European Union, meanwhile, is not expected to see volume recovery until 2014.

Auto isn't the only manufacturing sector driving Michigan's economy. Take a look at what the new entrepreneurs in craft brewing are doing with beer.

Quenching The Thirst is part of the Restore The Roar: Manufacturing Renaissance ebook essay series. For a preview, please click here.

"Economic performance is anticipated to remain mixed through the remainder of 2013," said Rick Hanna, PwC's global automotive leader.  "However, we do see light at the end of the tunnel and are forecasting a global compound annual growth rate of approximately 5 percent, double the 2013 rate, through 2017."

Strong growth in Developing Asia-Pacific, improving stability in the EU and investment in new technologies will drive the industry forward.  

Autofacts forecasts annual global light vehicle assembly to reach 101 million by 2017.

Megatrends driving the global automotive industry:

• European Union - While assembly was expected to recover in 2013, Autofacts is forecasting a year-over-year drop of 4 percent to approximately 15.3 million units in EU assembly. The long awaited rebound is now not expected until early 2014 at the earliest, as we see decrease in light vehicle assembly drop (-500k) in the first half of 2013. New vehicle demand fell by 4.7 percent in June, and 8.1 percent year-to-date, while the light commercial vehicle sector continues to decline, with registrations down 7.3 percent in May and 6.2 percent for the first five months of the year.
• North America - While the world is waiting for the recovery of the EU, North American sales and assembly increased through the first half of 2013, contributing 13.4 percent to global growth. The region is forecasted to contribute approximately 770 thousand units to the global topline growth in 2013. One regional manufacturing trend sparking interest is the "3-crew" or "3-2-120" shift pattern (wherein three crews work two shifts at 10 hours for six days a week) being implemented at selectDetroit 3 plants to help meet the excess demand, which allows for increased assembly utilisation.
• Developing Asia-Pacific - Light vehicle sales showed strong growth in 2013 compared to 2012, with Developing Asia-Pacific delivering an increase of 2.24 million units. Particularly notable are SUVs and MPVs, up 45.1 percent and 26.8 percent, respectively, compared to last year. Although 2013 has started off well for vehicle assembly, Autofacts is forecasting a modest 9.7 percent growth in assembly for the full-year, and jumping to 13.2 percent in 2014, despite global economic climate constraints.
• Research and Development Growth - R&D continues to grow as the industry approaches a new era of innovation and collaboration. Autofacts forecasts a steady release of new technologies into vehicles over the coming years, while others are not expected to reach mass production for some time. Hybrid, electric and fuel cell vehicle production accounted for roughly 2.8 percent of global light vehicle assembly in 2012.  This is expected to increase to approximately 5 percent by 2017, as industry collaboration drives costs down and performance metrics are simultaneously improved. The development and integration of new technology into vehicles to improve safety, fuel efficiency, communications and infotainment continues to accelerate and proves to be an increasing trend in the auto industry.

For more details about PwC's quarterly forecast update, download the July issue of PwC's Analyst Note at: www.autofacts.com or download the Autofacts iPad application.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids, Michigan have changed the way the world sees their community and the way they see the world.

Last Chance Mile: The Reinvention of an American Community is available wherever books are sold online including Abbott Press and www.rodkackley.com, as well as on the shelves of Barnes & Noble-Woodland Mall, Schuler Books & Music-28th Street and West Coast Coffee on Monroe Center, Grand Rapids, Michigan.

For a free preview, please click here.

Are U.S Manufacturers Confident Enough To Begin Hiring Again?

U.S. industrial manufacturers are feeling better about the domestic economy according to the PwC Q2 2013 Manufacturing Barometer that was released July 18, 2013. However, they are still nervous about the global economy and what new regulations might come down from Washington.

As a result, expansions in the third quarter are expected to be cautious.

According to the latest survey, 42 percent of industrial manufacturers plan to add employees to their workforce over the next 12 months, off three points from the first quarter. 

Only five percent plan to reduce the number of fulltime equivalent employees, and 53 percent will stay about the same. The net workforce projection stayed at plus 0.9 percent, similar to last quarter's plus one percent, indicating some new hiring continuity among several of these industrial manufacturing companies. The most sought-after employees will be production workers (23 percent), skilled labor (23 percent) and professionals/technicians (18 percent).

Similar to levels recorded in the first quarter, second quarter survey respondents highlighted legislative/regulatory pressures (53 percent) and lack of demand (47 percent) as the biggest barriers for growth over the next 12 months. Oil/energy prices were viewed by 22 percent as a barrier to growth, a significant drop from 35 percent in the first quarter and 48 percent in last year's second quarter.

"We're seeing a significant moderation in concerns regarding energy costs among industrial manufacturers, consistent with other recent PwC studies. It appears that the increase in shale oil and gas production domestically is having a positive effect on energy costs and is now impacting strategic planning among some industrial manufacturers. This is a welcome development for management teams given the moderately growing economy and the continued emphasis on controlling costs.”

Restore The Roar: Manufacturing Renaissance tells the story of the collapse and rise of Michigan manufacturing by showcasing the entrepreneurs who are driving twenty-first century growth.

Manufacturers are hiring again. However, they are having trouble finding qualified employees. Where are the Workers? is the second essay in the Restore The Roar series. For a free preview of Where Are the Workers: Finding the Lost Generation, please click here.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids, Michigan — with the help of two of the richest families in the world — are creating the Medical Mile and changing the way the world sees their community.

Last Chance Mile: The Reinvention of an American Community is available wherever book are sold online, including Abbott Press, as well as on the shelves of Barnes & Noble-Woodland Mall, Schuler Books & Music-28th Street and West Coast Coffee on Monroe Center in Grand Rapids, Michigan.

Autographed editions are available on the Welcome Page of www.rodkackley.com

U.S. Manufacturers Optimistic About Domestic Economy, Not Sure About Global Outlook

82 Percent of Industrial Manufacturers Surveyed Predict Revenue Growth in 2013

Sentiment toward the Global Economy Remains Guarded; Uncertainty Prevails

Optimism among U.S. industrial manufacturers regarding the domestic economic outlook rose to 63 percent during the second quarter of 2013, up from 55 percent in the first quarter and representing the highest level since the first quarter of 2012, according to the Q2 2013 Manufacturing Barometer, released July 18 by PwC US. In addition, 72 percent of respondents believed the U.S. economy grew in the second quarter, up 10 points from the prior quarter. At the same time, sentiment pertaining to the world economy remains guarded with only 31 percent expressing optimism and 59 percent voicing continued uncertainty.

The spread between those optimistic about the domestic economy versus those optimistic about the global economy over the next 12 months was 32 percent, representing the second highest quarterly total since these questions were first asked in the third quarter 2003 survey. At the same time, PwC's Global Manufacturing Current Assessment and Outlook indices show a reduction in overall pessimism among manufacturing executives compared to the first quarter, which appears to be driven by more bullishness over total sales, driven by the U.S., offsetting in part increasing bearishness over international sales.

"There remains a persistent dichotomy in viewpoints regarding the outlooks for the U.S. and world economies. Optimism regarding the domestic economy has increased, while worldwide economic sentiment remains restrained, with global uncertainty reaching the highest level in the past 12 months," said Bobby Bono, U.S. industrial manufacturing leader for PwC. 

"The U.S. is starting to show signs of healthy demand trends and improving pricing power, supporting positive overall sentiment in the year ahead,” he said. 

“However, as a result of the mixed global outlook, combined with the moderate domestic recovery and the specter of increased legislative and regulatory pressures, management teams are continuing to carefully manage their costs, while maintaining a focus on growing profitably."

What does this level of optimism mean for hiring? That question will be answered tomorrow.

Restore The Roar: Manufacturing Renaissance tells the story of the collapse and rise of Michigan manufacturing by showcasing the entrepreneurs who are driving twenty-first century growth.

This ebook essay series is available for immediate download, by clicking here.

Last Chance Mile: The Reinvention of an American Community tells the story of how the people of Grand Rapids, Michigan — with the help of two of the richest families in the world — are creating the Medical Mile and changing the way the world sees their community.

Last Chance Mile: The Reinvention of an American Community is available wherever book are sold online, including Abbott Press, as well as on the shelves of Barnes & Noble-Woodland Mall, Schuler Books & Music-28th Street and West Coast Coffee on Monroe Center in Grand Rapids, Michigan.

Autographed editions are available on the Welcome Page of www.rodkackley.com

Auto Sales Expected To Stay Strong In Second Half Of 2013

J.D. Power and LMC Automotive Report: July New-Vehicle Retail Sales -- Let the Good Times Roll

WESTLAKE VILLAGE, Calif., July 19, 2013 /PRNewswire/ -- New-vehicle sales are kicking off the second half of 2013 in very strong fashion, with new-vehicle retail sales in July expected to increase by 12 percent from a year ago, according to a monthly sales forecast developed jointly by the Power Information Network^® (PIN) from J.D. Power and LMC Automotive.

Retail Light-Vehicle Sales
New-vehicle retail sales in July 2013 are projected to come in at 1,127,100 vehicles, a 12 percent increase from July 2012.  The seasonally adjusted annualized rate (SAAR) in July is expected to be 13.2 million units, nearly the same robust level exhibited in June 2013. Retail transactions are the most accurate measure of true underlying consumer demand for new vehicles.
PIN data shows that in the first half of 2013, new- and used-vehicle transaction prices have increased 3 percent.  In addition, there has been an increase in the utilization of longer-term vehicle loans and an increase in leasing, when compared with the same period a year ago.
The customer-facing transaction prices for new vehicles are averaging $28,824, and incentive spending per vehicle is averaging $2,847 in the first half of 2013. The average used-vehicle price is $18,751 in 2013.
"Elevated new vehicle transaction prices are being enabled by the availability of longer-term loans, affordable leases and strong used vehicle values, compounded by the availability of low interest rates," said John Humphrey, senior vice president of the global automotive practice at J.D. Power.
Loans of 72 months or longer are accounting for 30 percent of new-vehicle retail transactions in the first half of 2013, up from 29 percent in the first half of 2012. Additionally, leasing has increased to 24 percent in the first half of 2013, compared with 21 percent in the same period of 2012.
"The rise in new-vehicle leasing, where the typical lease term is just three years, is providing a counterbalance to the rise in extended-term financing, where a vehicle may be financed for 5 or 6 years," said Humphrey.
Total Light-Vehicle Sales
Total light-vehicle sales in July 2013 are expected to grow to 1,336,700, an 11 percent increase from July 2012. Fleet sales, which typically average between 15 and 16 percent of total sales in July, are expected to fall within the lower end of the average, with volume projected at 209,600 units.
J.D. Power and LMC Automotive U.S. Sales and SAAR Comparisons

	July 20131	June 2013	July 2012
New-Vehicle Retail Sales	1,127,100 units (12% higher than July 2012)2	1,128,935 units	969,983 units
Total Vehicle Sales	1,336,700 units (11% higher than July 2012)	1,402,408 units	1,152,351 units
Retail SAAR	13.2 million units	13.3 million units	11.5 million units
Total SAAR	15.9 million units	15.9 million units	14.1 million units

¹Figures cited for July 2013 are forecasted based on the first 10 selling days of the month.
²The percentage change is adjusted based on the number of selling days in the month (25 days in July 2013 vs. 24 days in July 2012).
Sales Outlook
LMC Automotive is raising its forecast for both retail and total light-vehicle sales in 2013. The outlook for total light-vehicles is now at 15.6 million units—previously 15.4 million units—while the retail light-vehicle sales forecast increases to 12.8 million units from 12.6 million units.
"The overall trend in vehicle demand has outshined economic growth, and looking forward, the improving economic fundamentals should hold demand at the current level, if not accelerate it over the next several months," said Jeff Schuster, senior vice president of forecasting at LMC Automotive. "With a strong tailwind, it is not unreasonable to think about a 16-million-unit level of demand in 2013."
North American Production
North American light-vehicle production in 2013 is up 4 percent through June, compared with the same period in 2012. For the high-volume producers, Ford retains the strongest year-over-year increase at 14 percent, with robust demand continuing for the Fusion. Fiat-Chrysler holds steady in positive territory with a 1 percent increase. General Motors volume is off by 4 percent, compared with a year ago due to weaker large SUV volume ahead of the upcoming redesign and competitive pressure in the midsize car segment.
The European brands are tracking consistent with the industry growth, averaging a 4 percent growth rate from 2012. Despite a slowdown in demand for Hyundai, production growth remains robust at 15 percent year-to-date, while Toyota is on a 3 percent growth rate from a year ago.
Vehicle inventory in early July is at a 61-day supply, up slightly from 57 days in June. The inventory level has increased to 3.3 million units in July from the 3.2 million units in June.
LMC Automotive's forecast for 2013 North American production remains at 16.0 million units, a 4 percent increase from 2012. Excess capacity is very lean across the region, with some manufacturers and vehicle segments in short supply. Capacity utilization is expected to remain above 90 percent for 2013 and into 2014.

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