Even before the national recession hit, Michigan was struggling, mostly because of manufacturing issues and the auto industry.
A new report has surfaced bringing hope that this year and the next three years will be positive ones for the auto industry, Michigan's biggest business.
A recent J.D. Power and Associates report says two major factors are giving the auto industry a boost.
First, energy prices are down and stable.
Northwood University's Dean of Graduate Studies Tim Nash says, "If you go back to July of 2008, oil hit its all time record high of $147.28 a barrel. Today, oil is hovering around $80."
Lower oil prices mean lower gas prices and lower prices for transportation of automotive components, which translates into lower costs of consumers.
The second factor is emerging markets overseas.
J.D. Power and Associates expects a global sales improvement of 31% from 2009 to 2013.
The main reason are what are called BRIC countries, which represent the fastest growing industrialized countries, Brazil, Russia, India, and China.
Nash says, "General Motors looks at the Chinese market and says 'Here's 1.3 billion people and there are very few automobiles.' They have one of the lowest automobiles to people ratios in the world and one of the highest per capita growth rates and per capita income."
It's not only growth overseas, the report shows the rate of growth in the US as well. From 2009 to 2012, growth is expected to increase 44.2%.
Nash says, "We are still the largest economy in the world. We are still one of the most productive economies in the world, and there's absolutely no reason in my mind that we can't once again be the shining light of economic prosperity in the world."
Nash says, the U.S. automotive recovery would be even faster if the tax structure was more beneficial for companies.
