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Report shows growth in E.L., Lansing jobs

January 30, 2012

The Lansing and East Lansing metropolitan area has been ranked top in the country among 100 metropolitan areas for job creation in manufacturing, goods producing and transportation and utilities, according to data from The Urban Institute released last week.

The institute, which researches American social and economic issues, released an interactive map Jan. 26 ranking the city in job creation since the end of the economic recession in June 2009 to October 2011.

The Lansing and East Lansing metropolitan area has added 23.3 percent more jobs in manufacturing since the end of the recession, and 17.1 percent more jobs in goods production.

The Lansing area also ranked last out of 100 metropolitan areas in job creation for the leisure and hospitality sector, according to the map and accompanying rankings.

East Lansing Planning and Community Development Director Tim Dempsey attributed the increase in manufacturing jobs in the metropolitan area to the resurgence of the automobile industry in nearby Lansing.

General Motors Co. operates two assembly plants in Lansing, according to its website.

“The primary driver goes back to the resurgence of the automobile industry,” Dempsey said. “New car sales has driven that improvement.”

Karl Dorshimer, the president and CEO of the Lansing Economic Development Corporation, 401 S. Washington Square, in Lansing, said in an email the quick rebounding of GM has helped drive the area’s job market.

“These plants can compete and win to bring vehicle production work to Lansing,” he said in the email.

Education senior Gina Wilkins said the increase in manufacturing jobs probably won’t have too much of an impact on driving economic growth in the region.

Growth in information technology jobs might stimulate the economy more than an increase in just the manufacturing industry, she said.

Dorshimer said the metropolitan area’s low ranking in leisure and hospitality job creation is because of fewer people “splurging” on vacations.

“However, with the rebound of the economy … these industries should be on the mend in the near future,” he said.

Joel Heberlein, general manager of Kellogg Center, said the hotel and conference center has not been subject to as many struggles as other similar hotels in the area.

“We really never were hit with the highs and the lows,” he said. “We … didn’t have to play the rate game and do severe discounting like other parts of the industry did.”

Dempsey said MSU drives most of the region’s hospitality and leisure industries, including customer traffic at restaurants as a result of MSU sporting events.

“From our perspective, MSU is certainly the main driver of that business,” he said. “I think hopefully, what you’ll see is the resurgence of that (industry) driven by GM.”

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