The Michigan Daily-Friday, November 21, 1980-Page 5
Shapiro sees relief
By NANCY BILYEAU
The growth of non-automotive
dustry spells long-term recovery fr
Michigan's 1979-1980 recession, Univ
sity President Harold Shapiro s;
yesterday at the 28th annual Confer,
ce on the Economic Outlook.
A slight decrease in unemploymi
coupled with increases in personal
come were among the economet
forecasts announced in Shapiro's '"I
Michigan economy in 1981" addre
which was delivered at Rackham A
HOWEVER, long-term employm4
will increase only if Michigan becorr
a more competitive place for industri
"If it's true that adversity cleans I
soul, then we in the Midwest have bE
well-laundered," Shapiro said afi
outlining the damage done by l,
Employment outlooks for the comi
year were, if not bright, at least 4
couraging, he said.
"TQTAL EMPLOYMENT in t
state will be up 2 percent - nearly
thousand jobs - in 1981, a substant
improvement compared with the fi
percent decline in 1980," Shapiro said
Personal income in the state is a]
due to rise by about 10.8 percent,
sharp increase from the 1980 estimc
of 4.7 percent.
However, the state's econom
prospects, in the short term, "are ve
dependent. not only on 'the developi
strength of the economic expansion
now believe to be under way, but also
national economic policy as it relates
Daily Photo by LISA KLAUSNER'
UNIVERSITY PRESIDENT Harold Shapiro speaks at the 28th annual Con-
ference on the Economic Outlook at Rackham Amphitheater yesterday. He
encouraged the growth of non-automotive industry to take Michigan out of
its economic troubles.
the domestic automobile industry,"
ALTHOUGH Shapiro said the auto
industry "will not only recover, but
prosper," he warned against state em-
ployment rates becoming dependent on
the car companies in the future.
Job increases could only materialize
"if the auto companies and their sup-
pliers locate the manufac'ture of the
new high technology components
(computer controls, robotic equip-
ment) here in Michigan. To date they
have not done so," he said.
Shapiro stressed that "it may now be
absolutely critical that we be concerned
and realistic about the long-term
viability of the automobile industry in
FUTURE ECONOMIC growth hinges
on the provision of better initiatives for
new industries to locate in Michigan,
However, increases in the em-
ployment base "are more likely to
come from the establishment of small
and medium-size firms in such areas as
the health care industry, service, in-
dustry, and other industries using new
technology in a major way," he said.
"We must ask ourselves what federal
and/or state economic policies we can
adapt, if any, that would be conducive
to such a development," Shapiro said.
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industry may pick up
(Continued from Page 1).
Whitman characterized the major
challenge of the 1980s for the auto in-
dustry as "achieving economic effec-
tiveness through worldwide develop-
ment within the structure of gover-
,THIS WILL require enormous
amounts of capital; that is one reason
for the current trend of pooling resour-
ces through mergers," she said, citing
Chrysler-Peugeot and Honda-British
Leyland as examples.
As for General Motors, Whitman said
the company will be launching a $40
billion program aimed at refurbishing.
existing plants as well as building new
ones in countries such as Spain and
Austria. "There has also been activity
in Brazil and Australia," she added.
Whitman was hesitant about predic-
ting the future of unemployed Detroit-
area auto workers.
"It's a matter of time on the
horizon," she said, when workers will
eventually be replaced with "robots."
"Obviously, that won't happen in the
coming 12 months."
Michigan National Bank President
Larry Grace said he was not surprised
by Whitman's remarks regarding GM
expansion in the face of a recession. "If
there's any growth in the automotive
industry, GM will be part of it," he said.
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