Category: Analysis

Michigan State

Michigan State is located in Midwestern in the Lake region of America. It is ranked the ninth populous among the fifty States in America characterized by its extensive area that is the biggest state in the eastern part of Mississippi River. The name Michigan originated from Southern Peninsula that recognized by its mitten shape. The Northern Peninsula is divided from the Lower area by the Mackinac Channels eight-kilometer channel joining Lake Michigan to Lake Huron (Farmer 2005).  It has the longest coastline with freshwater and it is bounded by other four Great Lakes thus becoming the leading American states in recreational boating. Though Michigan forms the center of the American automotive industry, its economy has faced various challenges that when they are not solved with immediate effect, may drag down the states (Stoll 2009). The investments in the Southern and Northern Peninsula make the mainstay of the economy of the state and they are faced by various problems that may thrive to worsen the state in future.

The American Administration

The American administration for economic development gave an estimate of the Michigan gross product to be four hundred and eight dollars ranking it as the thirteenth of the fifty states in America. The remarkable status of the economy is as a result of the sustained growth in various parts and cautious management of the resources. The state gross product may face tremendous decline when some of the factors facing the economy will not be embarked upon fast to safeguard the development of the state. Agriculture has maintained to be a crucial pillar to the economy of the state; however, it is being faced with various challenges that may deteriorate its status. Vegetables and fruits production in the region has declined due to various disease infections that have emerged and drastically pulled down the productivity of the farms. Efforts have been done to curb the problem but it with little yield of the solutions.

Farming is facing massive competition transpiring from California State. The competition had facilitated to flagging of the economy of the region with an excessive margin due to the unlimited loss. The fifty-five thousand farms of the state are facing the hiccups beginning from the year 2009. Milk production that forms the most valuable product of the state has lessened due to the mismanagement of the manufacturing companies. The farmers are also facing the disease challenge on their cattle causing mysterious deaths hence affecting the whole production of the dairy products in the state (Ayanian 2013). Crops like the soya beans, corn, wheat, potatoes and sugar beets have registered reduction in production because of glut in the market that has forced the prices to go down to the disadvantage of the farmers. Farmers have channeled their efforts of production to other areas thus affecting negatively the economy of the state. The products from livestock that accounted for thirty-eight percent of the totality value of the agricultural products, it has reduced to the rate of thirty-five percent. The crops still remain to account the majority but at a reduced rate.

The state has massively concentrated in the production of particular fruits like the cherries and grapes to the expense of other fruits like pears and plums that are produced at a lower rate. The uneven production of fruits in the region has caused deficiency of some of the produce in the market that has led to outsourcing. The state has failed to maximize the production of the other kind of fruits that are equally critical to the economy of the state. The occasional adverse climate of the West Michigan in the lake region has unfavorably affected the production of fruits in the region. It has caused a decrease in the total out-put hence affecting the economic status of the state.

The fertility of the land in the Flint-Tri Cities and the Thumb areas has reduced thus reducing the production of navy beans, corn, soya beans and sugar beets. The sugar beets production has made an outstanding drop in the manufacturing of white sugar in the factories. Michigan Sugar Company, being the largest refiner in the eastern part of river Mississippi, faces a major risk if precautionary measures are not taken. Innovative plans on substitutes ought to be considered in the production of sugar in order to safeguard the economic status of the state (Miyares 2007). Efforts in the production should be exerted uniformly in every line of production in order to keep the economy of Michigan safe from deterioration. There should be increased production of other products like potatoes, cucumbers and asparagus in order to boost and catapult the economy of the state to greater heights.

Tourism Sector

Tourism sector is another area affecting the economy Michigan state. The states government is spending over seventeen billion annually in support of the tourism jobs in the region that may affect the returns when the sector is not handled prudently. The lakes and the thousands of kilometer beaches that form a fortune for the state are facing a decline in attraction. The tourism events like the festival of National cherry and the Tulip Time are gradually fading away from the sites. The poor maintenance of the beaches has triggered the problem by large margins thus affecting the whole economy of the state.

The management of the beaches has led to the depreciation of the standards that were set in the previous years. The significant hotel in the island of Mackinac that formed a distinctive image to the tourism of Michigan has deteriorated its standards. The number of tourists from outside the state has decreased to the rate of below thirty percent. A large percentage of the tourist business is domestic thus posing a threat to the income from the tourist from other areas. The domestic tourism takes a rate of approximately seventy percent of the total tourist visitation in the state. Measures made to escalate the tourism industry are not employed in the sector effectively thus threatening the position of the economy in the area. The institute of arts and the zoo of Detroit are facing a decline in attraction because of the reduced number of foreign attraction on the sites. The maintenance of the museums located in the community education brook and in the American Arab national museum has been poorly done thus causing a danger to the economy of the state.

The Holland Park in Lake Michigan that used to contribute to more than two billion dollars to the economy of the state annually, it has lessened to below the two billion mark.The natural resources department has failed to curb hunting access in the commercial forest and the illegal cutting of Christmas trees hence causing the decline in job creation that used to be two hundred thousand annually. The department is currently contributing to less than twelve billion dollar mark to the economy (Farmer 2005). The attendance in the golf clubs that are essential in contribution to the domestic product has gone down terrifically. The road system connecting the great lakes has depreciated in its standards hence affecting negatively the transport system thus eventually affecting the economy of the region. The ships that are used in transportation of bulk cargo and people are deteriorating in their condition. It poses endangerment to the economy of the area since transport system is a vital pillar for the development of a state. The diving destination in scuba is threatening to come out of the world-class status because of the reduced popularity.

The Transport System

The transport system in the region is creating a shakeup to the economic status of the state. The rate of improvement of the transport sector has been slow in comparison to other states as the Illinois and Ohio. The rail way lines in the area have remained to be four in number and the short rail way lines have not advanced in their standards. There is no evidence of addition rail way lines to Norfolk, pacific, the national railway and the CSX that have been there since the time immemorial. The augmentation of the rail way lines will automatically enhance the fast movement of goods and services thus accelerating the economy of the state. Some of the small rail way lines need to be advanced to the standards of the Norfolk and pacific rail roads in order to increase the efficiency of the factors that enhance the economy of Michigan (Miyares 2007). The competition the state is facing from other states; it may reduce its status if it fails to take appropriate actions in improving the rail roads. There ought to be a commuter rail in the Detroit city and its suburbs in order to enabled efficient movement of people and increase efficacy in the transport system.

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The roadways of the state are gradually declining in their standards thus exhibiting a possible danger to the transportation of goods and services hence a danger to the economy. The system of trunk line highway and the highways that are county designated when not kept under watch, may affect the future of the economy of the Michigan state (Farmer 2005). The road system permits interstate business transitions to take place commendably thus enhancing the communication between different regions in the United States of America. Occasional maintenance needs to be done on the branching highways in flint and Saginaw in order to facilitate smooth running of trade industry and improve the economy of the state. The combination of the improved road and railway systems will enable reduction in the cost of transport and fast delivery of items to the consumers at the right time. It will change the current status of economy hence keeping it in the status of global competition. Bridges need to be added to the existing ones in order to keep the economy of Michigan accelerating and at the front line. The condition of the bridges as in the blue water that is crossing to Sarnia, Ontario, and the Mackinac Bridge ought to be occasionally checked and restored to their original status. The recent road transport challenge facing the state will be terminated when the much attention will be drawn on the expansion of the network.

The fast growth of the economy of the Michigan state is inhibited by the air transport system in the region. The state principally depends on the Detroit Metropolitan airport in the Wayne County, the airport in Grand Rapids and the Flint Bishop airport for air transportation. With the increased interstate trade transactions, the air transport has not been upgraded to commensurate the busy industry (Farmer 2005). More international airports need to be added in the state to meet the needs of the whole American state. Airlines need to be increased in the state, hubs, the local and regional airports located in the islands expanded to international airports. The endangerment and the competition evident in the state will be minimized through the improvement of all transport sectors in the region.

In conclusion, although Michigan State has world-class industries, the products produced and the services in the area that include automobiles are facing major world competition (Stoll 2009). The deterioration aspect is primarily affecting the fast growth of the economy in the region. Failure to take corrective measures, the situation might lead to a declined or stagnant economy. The factors of production ought to be evaluated and upgraded and all the aspects that contribute to the progress of the economy regularly enhanced.  Food security in the state should never be ignored and ways of circumventing and curing the emanating diseases in crops and animals (Ayanian 2013). The tourism sector administration should be improved and measures taken to increase the output in the sector through encouraging foreign tourist and maintaining the domestic tourism standards.      

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