Business Community Weighs in on What the Next President Should do For Michigan
The two major presidential candidates are listening to Michigan – particularly to the auto industry. So, now that we have their attention what do you want them to hear?
Last week, presumptive Democratic presidential nominee Sen. Barack Obama got an earful from General Motors Corp. CEO Rick Wagoner about how to save the U.S. auto industry. Obama also recently met with a group of business leaders that included Ford Motor Co. CEO Alan Mulally.
Obama’s Republican rival, Sen. John McCain, likewise, has been courting the auto industry – notably by proposing a $300 million government prize to anyone who can develop an auto battery that far surpasses existing technology.
All of this attention highlights the importance of the auto business to the U.S. economy – and Michigan’s importance in the November general election. With that in mind, the Daily Dash asked some business leaders to tell us what they want from the new presidential administration.
Todd A. Anderson
Vice president, government relations, Small Business Association of Michigan
Anderson said that, among the issues the Lansing-based association would like to see the next administration address, “I can think of none that are more important than health care.”
Anderson said SBAM would like to see the government provide incentives for more competition and consumerism in the health care system, which could reduce costs. Along those lines, Anderson says, John McCain’s health care plan – which gives individuals a tax credit for buying health care, but eliminates it for employers – is a step in the right direction. Such a plan, he said, might be beneficial for small businesses because many are sole proprietorships and not purchasers of group coverage.
Taxes are another issue SBAM feels strongly about. And the estate tax is of particular interest.
“On principle, we just don’t believe in the estate tax,” Anderson said. While SBAM does not think that tax is going away any time soon, reducing its impact as much as possible is high on the association’s wish list.
He said SBAM also firmly believes that small companies benefit from free trade pacts such as the North American Free Trade Agreement. He said the association would like to see a new administration commit itself to opening up more markets abroad and making sure U.S. trading partners play fair.
Subir Chowdhury
Chairman and CEO of ASI Consulting Group LLC
Chowdhury said Michigan needs one thing from the White House more than anything else. The next president, he said “must believe in manufacturing and the automotive industry.” Furthermore, he said, the president must “walk the walk” by doing what it takes to help U.S. manufacturing survive and thrive.
He says the U.S. needs to change its mindset and stop assuming that it will lose its status as a leader in manufacturing, and that includes the auto industry. If we commit ourselves to the idea that we can and should maintain our manufacturing prowess, Chowdhury said, Michigan – and the U.S. as a whole – will compete successfully.
ASI Consulting Group, based in Bingham Farms, is a consulting firm that specializes in quality, engineering, and process innovation.
Sarah Hubbard
Vice president of government relations, Detroit Regional Chamber
Hubbard said there are numerous things the chamber would like to see the next administration address. But, there are five broad areas that are its top priorities:
Immigration reform: “Making sure we can get the skilled workers we need into the region and into Michigan,” is a high priority for the Detroit Regional Chamber, Hubbard said. Toward that end, the business group favors raising – or even eliminating – limitations on the issuance of visas for foreign workers. Currently, the government limits to 65,000 per year the number of H-1B visas issued to skilled workers. The same cap applies to H-2B visas, which typically are used by less-skilled seasonal employees. Those limitations, Hubbard says, leave many Michigan businesses without the help they need to expand and grow.
Border issues: The chamber wants the the federal government to improve efficiency on the economically vital Canadian border in ways that "balance national security with economic prosperity," Hubbard said. That, she said, could involve creating more border crossings and adding more Border Patrol and customs agents.
Transportation: Hubbard said Michigan should work hard to get the kinds of transportation resources it deserves, Currently, she said, Michigan gets back only about 93 cents out of every transportation-related tax dollar it sends to Washington. That, she says, has to change in order to make Michigan more competitive.
The Great Lakes: Hubbard said the chamber wants the new president to commit to protecting the Great Lakes. She said the availability of fresh water gives Michigan and other Great Lakes state a key economic advantage over states where water is scarce. Thus, protecting the lakes from water diversion and other threats is a priority of the chamber.
Encouraging innovation: Hubbard said the chamber feels Michigan is in a position to benefit greatly from a national “innovation agenda,” thanks largely to the state’s top-notch research universities and manufacturing expertise. That agenda, she said, could take the form of such things as greater federal funding for basic research and defense-related research, much of which could be done here.
Rajesh U. Kothari
Co-founder and managing director, Seneca Partners
In the next presidential administration, Kothari said: “There has to be a renewed focus on supporting entrepreneurial development.”
Kothari said a strong commitment to encouraging entrepreneurship should be a priority because, in the long run, innovation and new business formation have a bigger impact on economic health than anything else. He said innovation is a “core resource” – both in Michigan and in the U.S. as a whole. Nurturing that, he said, starts with a commitment to the educational system, which remains one of our state’s key assets.
“If you educate smart people here and create opportunity for them here, they will stay here,” Kothari said.
In addition to funding education, he said, the feds can help Michigan by increasing its commitment to U.S. Small Business Administration programs that help business start-ups through tax incentives aimed at encouraging innovation. But, Kothari added, the federal government should not be expected to save Michigan and we should not fall into the trap of blaming outside forces, such as federal policies, for the state’s economic problems.
Seneca Partners is an investment banking and venture capital firm based in Birmingham.
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The two major presidential candidates are listening to Michigan – particularly to the auto industry. So, now that we have their attention what do you want them to hear?
