TheMichigon poily-Wednesday, June 17, ,1Qh-Page 3% Engin. School plans co-op By JOHN ADAM Daily staff writer In what appears to be a shift in policy, the new dean of the College of Engineering, James Duderstadt, is moving ahead with plans to establish a cooperative education program for engineering students. Such an education program would allow students both to attend classes and hold down a job in their field of industry on alternating semesters. Co-op programs are already offered on a small scale by a few departments, but Duderstadt said he believes "it's appropriate; to address (the co-op issue) in a centralized fashion." "We have to accommodate those students who want co-ops," said Duderstadt, who said he hopes to have a co-op program set up by January, 1982. This change is sure to please both engineering students and industry. According to the Michigan Technic, a publication published by University engineering students, there is a definite interest among students in a co-op program. From the students' viewpoint, a co-op program of- fers practical experience to complement the theoretical knowledge gained in school. As Associate Chairman of Aerospace Engineering Harm Buning said, "It helps tremendously in the motivation of the student. The co-op program is part of an educational experience and not just a summer job." New program to offer practical work experience BUNING, WHOSE department has a small co-op program, said about 75 percent of the people who ap- ply are placed, working for such institutions as NASA, Lockheed, and the Air Force. From industry's point of view, the co-op program provides potential employees. "It's a very important aspect of Bechtel Corporation," said James Smith, employment manager at Bechtel Power Corporation in Ann Arbor. But he added that students also get benefits from the experience, probably more than from summer work experience. Bechtel currently has about 75 co-op students in its program from 10 universities throughout the Mid- west. Some schools even give credit for working, said Smith, adding that currently there are no University students working at Bechtel through a co-op program. ' "BEING ONE OF the best engineering schools, it would behoove them (the University) to have a co-op program," said Smith. Asked if Bechtel would par- tially subsidize the costs of such a program, Smith said, "there's no question about it (that they would subsidize). And I've talked to other companies that feel the same way." The expense of administering a co-op program is what has kept the University from implementing the system before, officials said. As Associate Engineering Dean Maurice Sinnott said: "The students come through every three years and push it, but it costs too much to run." Richard Wilson, chairman of Industrial and Operations Engineering, said there is room for par- tial co-oping but that "finding co-oping opportunities for 4,000 students is a bit staggering." Duderstadt agrees "it will cost something," and he said he doesn't foresee large numbers of students taking part in the co-op programs because students are more interested in finishing early (the co-op program adds at least a year onto a student's schooling) to get the lucrative salary offers. "I can't imagine it would be over 5 percent par- ticipating (in the co-op program)," said Duderstadt, who downplayed the decision as a major change in policy. Decline in building permits reflects area's slow economy By MARK GINDIN Daily business reporter A leading economic indicator - residential building permits - registered a 51 percent drop since last year in southeastern Michigan, accor- ding to a report issued by the Southeast Michigan Council of Governments. The effects of the drop in housing construction is being felt by a slowdown in business, said Richard, Fry of F-P Development Co., Inc., a local con- struction and architectural fim. "BUSINESS SUCKS," said Gene Katz of Argo Development Corp. Argo is presently building only one house, far below the business level of previous years, Katz said. Pat Lehotsky of Lukes Homes of Ann Arbor said her company has had to lay off workers, reduce purchases of materials, and reduce overhead costs to stay in business. "We are holding our own, "she said. Most companies and government of- ficials blamed high interest rates for the building slowdown. Interest rates primarily determine business activity, said a spokesman for R.E. Davis Con- struction, and high rates mean it is harder for consumers to buya house. "I WOULD speculate that the interest rate is a cause of the drop in housing because it is harder to geta mortgage," said Jack Donaldson, director of the city Building Department. "Commercial construction has not dropped," said Donaldson, while alterations and additions to present housing have increased. It would be impossible to determine the future im- pact on the city as a result of the decline in housing permits, Donaldson said. However, a building contractor can- not live on just alterations, additions, and other "little jobs," said Katz of Argo Construction, who said his firm supports three families. THE CITY IS trying to make the situation look good by implying the numbers of issued permits balance, Katz said. "If you think the auto in- dustry is bad, we are worse," he said. The lowest full-year total of residen- tial building permits in the twelve years of records kept by SEMCOG was recor- ded in 1980. The number of permits - 10,562 - issued in 1980 is 51 percent below the 1979 figure of 21,526 permits. Katz termed 1978 a "good year," 1979 a "not so good year," 1980 a "horrible year, and 1981 is worse." THE SEVEN counties of southeastern Michigan were included in the report issued recently by SEM- COG with Washtenaw County registering a decline of more than 33 percent. Ann Arbor has registered a 53 percent decrease in new housing units since 1978, according to figures from the city Building Department. Because of the drop in permits issued in the area, firms report an increase in competition. "Detroit companies have been bidding" on contracts usually filled by local organizations, said the representative from Davis Construc- tion, THE INTEREST rate has reduced housing starts 14 percent on the national level, according to a report released yesterday by the Commerce Department. The seven counties in the SEMCOG region are Livingston, Macomb, Monroe, Oakland, St. Clair, See SLOW, Page 4 "'y0Noto Dy JACLIE BELL New perspectives A different view of the State Street area is presented from the roof of the Maynard Street parking structure.