Can you spare a dime? Local economy gives mixed signals

Jeff Broddle | Cadillac News Ryan Sodergren zips around on the Lake Cadillac on a personal watercraft at Laura LeeΥs Landing.

CADILLAC - If your pockets seem to have a hole in them these days, you're not alone. Area unemployment is above state averages, tourism is flat and even human service agencies are running on empty.

“It breaks your heart,” said Cheryl Mosse, clearinghouse coordinator for Love, INC., a charitable organization operating in Wexford and Osceola counties.

“We have so many calls from people asking for help with utility bills,” she said. “We can't help them and the human service agencies are out of funds. You feel helpless and hopeless for the people.”

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Love, INC reports requests for assistance up 10 percent over a year ago and those requests reflect deeper needs.

“Everyone feels they're in the boat alone,” Mosse said. “The whole town, state and nation are in it.”

“I think we're in a recession,” said Cadillac resident Mary Hudgins.

Hudgins said there's definitely less money at the end of the month in her household than in previous years.

“I watch everything I spend and don't buy anything unless I need it,” she said.

In the business community, the picture isn't looking a lot better. Owner of McGuire's Resort, Mike McGuire, describes the summer's tourism performance as flat. Tourists are making last minute decisions to travel and shortening stays.

“There's a lot of apprehension about what's happening in the state,” McGuire said.

A stronghold in the local economy, tourism is a broad commercial engine.

“Tourism is not just the hotels and golf courses and restaurants,” McGuire said. “When I talk about tourism that includes retail. The tourism industry has a big influence on dollars put into the economy from retail.”

The outlook isn't all gloom for greater Cadillac. While the June unemployment rate in Wexford County was 7.1 percent, above the state average of 6.5 percent, several indictors create reason for an optimistic picture. Since 2000, the population in Wexford County is up 4.6 percent. Missaukee County saw a 5.7 percent population growth. Statewide, the average growth for the period was 1.8 percent.

“If an area is sluggish, you're going to see flat population growth,” said Jim Rhein, state economic analyst.

In the long run, Cadillac's diverse economic base may be its saving grace. A solid tourism, manufacturing and agriculture infrastructure provide a cushion against a decline in any one sector.

“If your economy is diversified, it softens the blow if you have a downturn,” Rhein said.

“The northern economy has been doing alright because they always have the fallback to tourism and agriculture.”

Statewide, we're “stuck in the mud,” he said. The future strength of local and state economies depends on whether business is nimble enough to outgrow its dependency on manufacturing.

“Can other sectors make up for it with decent pay?” Rhein said. “That's the question for the next five years.”

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Area employment projections:

A cross-section of Cadillac employers was asked to forecast their employment needs through September. (The survey was conducted by Manpower employment service.)

€ Construction: 1 company reports no change

€ Manufacturing-durable: 1 company reports slight increase, 1 slight decrease, 5 no change

€ Manufacturing-nondurable: 3 companies report no change

€ Education: 1 institution reports no change

€ Retail: 2 companies report moderate increase, 1 slight increase, 4 no change, 2 uncertain

€ Services: 2 companies report slight increase, 1 moderate decrease, 3 no change

€ Finance/insurance/real estate: 1 company reports no change

€ Public administration: 1 company reports moderate increase

Area June jobless rate ranking among Michigan's 83 counties.

(Most recent figures available)

€ Missaukee: 28 (6.1 percent)

€ Osceola: 32 (6.3 percent)

€ Wexford: 59 (7.1 percent)

€ Lake: 72 (7.9 percent)

Wexford-Missaukee labor market jobless rate history

€ June 2006: 6.8 percent

(Annual averages)

€ 2005: 7.3 percent

€ 2004: 8.2 percent

€ 2003: 8.7 percent

€ 2001: 7.8 percent

sbarber@cadillacnews.com | 775-NEWS (6397)