President Trump's proposed tariffs are sparking debate across the country as local businesses and industries prepare for potential impact.

Meanwhile, new legislation posed in Lansing aims to boost entrepreneurship, spur innovation and strengthen Michigan's economy.

But how do these different factors intersect, and what does it all mean for the local job market?

Job creation, economic growth and workforce development.

Joining us today to break down these issues are two key voices in Southwest Michigan business community.

Arthur Havlicek is president and CEO of the Southwest Michigan Regional Chamber.

Ryan Booth school is executive director of the Greater Niles Chamber of Commerce.

Arthur and Ryan, welcome to the set.

I'm so glad that you're here.

I want to start by asking about these proposed tariffs.

How are businesses responding at this point?

And are there particular industries in Southwest Michigan that are most likely to be affected?

Sure.

And, Elizabeth, if I could take a moment just to take a step back.

You know, this isn't the first rodeo we've had with tariffs.

In fact, we've had some strong impact from tariffs in the past as well.

Going back to President Trump's first term, there was an issue with, the Chinese steel being dumped into America.

By way of cheap intermodal chassis.

These are the trailers that would transport, the shipping containers across the country.

And we are seeing a massive influx of those.

President Trump put a tariff on those.

And what we saw very quickly were companies in the state, in the state side who were already in that, industry flourish.

They knew how to do the work, but they were dealing with unfair trade practices across the sea.

And once President Trump level that playing field, we had two companies that burst, intermodal chassis was in Niles and went from about 60 employees to about 260 employees and started delivering amazing product and to the point where they were just sold out continuously.

And they're still doing great work today.

President Biden continued that tariff because he saw that it worked, and it continues today.

So, you know, we have seen a local impact and sometimes targeted tariffs, worked out really well for us.

That's a good point.

He's saying we don't have to think theoretically.

We can think about what we know happened locally based on that particular targeted tariff in the past as we think about possible impact.

Any thoughts or anything there in terms of other industries that might be affected?

Sure.

So sure.

So, when you look at Southwest Michigan in particular, the the concentration of manufacturing and AG specifically, in terms of industries that are going to be affected, there's probably going to be some short term pain.

But ultimately, as as Ryan mentioned, there's long term gain as the leaving, as we level the playing field.

Other countries have been applying tariffs on American goods for a really long time.

They do that because it protects their manufacturers, their farmers, their products.

And and so what what President Trump is really trying to do is level that playing field and make it easier for American manufacturers and American workers to compete in a global economy.

So as you talk about short term pain, long term gain, and can you explain what that means?

So a lot of it has to do simply with the uncertainty.

It's been a rapidly evolving situation, and it's a very difficult when things change so quickly for some of these businesses to do the appropriate financial forecasting.

Because of that, they typically hunker down and take somewhat of a wait and see approach.

The the businesses, particularly in manufacturing, that import a lot of raw materials to make their goods think steel and aluminum.

They're going to see probably more of that, that immediate financial burden before some of the, the intended positive effects, occur, at which point that will level out and their production will be able to rise.

The whole goal is to bring manufacturing back to this country, and to encourage both domestically and internationally more people to purchase American goods.

Now, Ryan, we've seen President Trump talk about tariffs and then pulling back on some of those tariffs and reintroducing or delaying them as we think about manufacturing coming back to the United States, how much certainty is needed for people to actually invest, which is sort of a long term commitment?

Sure.

One of the one of the impacts, certainly this week, this month has been, an initiation of a conversation with the manufacturers of, okay, now what's going to happen next week, next month?

This year we need to start thinking strategically about how do we bring manufacturing back home so that we can insulate ourselves from the effects of future tariffs.

And so it is kind of a nice benefit that we're having to have these conversations now about how do we plan to to onshore some of this manufacturing.

And that's a positive conversation to have.

And are there how do we balance or think about because your business owners are often living in the community as well.

Some possible higher prices for concern members related to the tariffs.

Like how does that balance against those jobs that we want to see here?

Sure.

So, I think one thing that's been made clear from the messaging around this, even from President Trump himself, is, is that American consumers are going to have to brace for potentially higher prices, at least again, in the short term.

The goal, though, is, by by achieving this, this global reset of trade to ultimately bring prices down, even some of the, the, we'll say, market fluctuation and market confusion, the uncertainty, that's pushing folks from the stock market to treasuries, which ultimately pushes, the feds to lower the interest rate.

And when the interest rates are lower, everything becomes a little bit cheaper.

When you go to, take out a mortgage and buy a home that's a little bit cheaper, a car cheaper, even the United States, when it goes to refinance its debt later this year, can do so more economically.

So this reset is something that in some ways needed to happen.

And particularly for working families, middle class families, I think that's a target population that, that all of this is occurring for, they're pinched because a lot of these a lot of these factors and some of these actions on a global stage, will eventually level things out and make life a little bit easier for them.

So, again, just look at one factor in isolation.

You have to look at the way it affects other factors that will affect the economy and ultimately affect prices.

Correct.

Okay.

Now, have you been seeing immediate shifts in strategy of businesses already or not yet?

Okay.

Oh, yeah.

Probably every purchasing person for every manufacturer, in town is on the phone right now.

Buying the parts, buying the ingredients that they source outside of this country.

They're stockpiling right now.

And they have been for for weeks and months since this conversation has started.

In hopes to maintain an inventory that will potentially get them past, you know, the next 4 to 6 months while we have this, this internal debate in our country about, you know, as Arthur was saying, kind of resetting the conversation with trade with with our partner countries.

Okay.

I see you're nodding your head to that's the same thing that you've been seeing.

Absolutely.

So, along the campaign trail, President Trump talked a lot about this.

This is one of his primary economic strategies.

And so, you know, when the American, public elected him, we kind of knew we were getting into this to some extent, even with the uncertainty that's around it.

And, and business owners, they they look as far ahead as they possibly can to try to predict, at least within some, some range, what they need to do to keep their business viable.

And as Ryan said, a lot of that had to do with, pre purchasing and stockpiling some of these commodities that are imported into this country to try to keep their prices as level as they can for as long as they can before they can shift to American manufacturers, domestic manufacturers, and eventually, be able to level that out.

So, we've seen a lot of businesses do that.

Not all can.

Especially those who export, back to AG, you know, you've got farmers who may not have the same elasticity in their pricing, so they'll have to absorb some of this impact.

But ultimately, as, as the administration renegotiate some of these trade deals with other countries, even even, good partners like Canada, Canada has tariffs and have had tariffs on American, consumer products, particularly, groceries for a long time.

And, and level setting those it will only be good for American farmers in the long run.

Now, as you think about what businesses you'd like to see move to Southwest Michigan as a result of these tariffs or other economic policies.

What do you have in mind or what do you expect?

So, manufacturing is again, it's the largest, sector in Southwest Michigan in terms of employees.

We actually have about 140% more employees in the manufacturing space than we should for a community, our size and our our demographics, because of that, that's where that short term pinch comes in, as as all of these corrections happen.

But in the long term, that positions us to be able to, take advantage of more of that, those domestic contracts, as people try to buy American, we're in a good position to sell those American manufactured goods.

That labor pool already being in Southwest Michigan as companies look to invest, today's day and age, companies go to where the talent is.

And we have that high concentration of talent, here in southwest Michigan already.

So we stand a good chance, as, as other companies look to shift to American production.

And as you think about Niles specifically, what kind of things would you like to see happen?

And what is Niles doing to try to entice businesses to do business there?

Sure.

One of the amazing developments that is happening right now is in automation.

So one of the challenges bringing manufacturing back to the states is that we do have a workforce shortage.

And how do we increase our manufacturing capacity when we do that through automation?

And Niles is blessed to have two companies that are moving and have moved to the Niles area in recent years, where co and envision that they help our manufacturing companies with that automation process and help them grow their capacity.

And so we're helping those two, businesses grow and develop so that our manufacturers can grow and develop.

So try to create that ecosystem within that community.

That's right.

I mean, just yesterday we had a lunch and learned that the chamber sponsored, where we're giving digital storefront, $10,000 grants to small businesses and helps to develop their e-commerce.

And one of those companies that attended was where co they are doing great, but they want to grow and they need help with their website and their e-commerce and the whole back end.

And so I'd be surprised if they didn't get one of those $10,000 grants, because that's exactly what we set up the grant, to, to help.

And so that's how we're helping, nurture that, that automation industry.

Yeah.

As you think about the role of the chamber in helping businesses adapt now and just more generally, I mean, what are the things that your organization can actually do?

And what is it that business owners and prospective business owners are asking for?

Sure.

So, chambers to me have, they can play a lot of different roles.

They can wear a lot of different hats to the main ones.

Actually, it's, the vent.

Ryan.

Just reference is a good example of it.

It's it's educational.

Right.

So it's the chamber explaining what the environment's going to be, what to anticipate.

What corrections can be made to put yourself in a competitive advantage.

And it's also just a convening role.

It's getting the stakeholders together that you need in order to create that ecosystem for businesses to thrive.

In the labor shortage front, an example of both probably is, is our organizations collaborated on what's called the burying Talent Collaborative, which is an innovative workforce development solution in Marion County to increase the number of apprenticeships.

So middle school or.

I'm sorry, juniors and seniors in high school, doing on the job training, graduating with an apprenticeship, to a local employer into a high wage job without any debt, without having to pursue a four year degree.

It was the chamber's convening business and our educational partners to make that collaborative happen.

Is there anything that the legislature can do or you hope that they will do?

That could make that job.

And the chamber's job more generally easier things that you think would help business owners, either of you working on any kind of advocacy and specific bills that you'd like to see the Michigan State Legislature passed?

Well, there's two initiatives that I think we had planned to talk about today, and that was the Michigan Innovation Fund and the DX tax credit.

There were legislations were, voted on, passed this January.

So, two major initiatives to help startups.

And that was the Michigan Innovation Fund, $60 million fund, run through our, our, state universities to help, nurture and develop the startups, with desperately needed influx of cash to, to make that happen.

Then secondly, the R&D tax credit to help our existing manufacturers, with some additional funds to, to help them, you know, with that side of their operation, great, great ideas, great tools in the toolbox for the state of Michigan.

At the end of the day, I think our chambers and probably all chambers are really just advocating for a competitive environment.

Right?

Michigan.

Doesn't operate in a silo.

It's competing with 49 other states.

It's competing with countries across the globe.

And I know for the R&D tax credit in particular, but I think 30 other states had something similar.

And so, you know, as we look at how to put our best foot forward, particularly in that innovation space, which is always going to be more capital intensive.

Some of these incentive programs are very important.

And chambers broadly advocate for those incentives to be widely accessible.

Right.

Sometimes it's targeted by industry, but it shouldn't matter what size business you are.

There certainly shouldn't be any insider deals.

No picking winners and losers.

You should be able to qualify based on what you're doing, how you're doing it, and whether or not you're doing it in Michigan.

And so in order to get a competitive advantage, you need to be innovative.

You need to have then that R&D money.

But it might be hard as a new business in particular, to be able to afford that.

It is it is, it's capital intensive.

And when you look at, in terms of ecosystems, you see some of these, more innovative companies flocking to where there's, a higher concentration of what we call knowledge economy jobs.

So I think where populations are shifting in this country, you've got, certainly Silicon Valley, you've got Dallas, Denver, Orlando, places, in different states that have created these hubs of entrepreneurship and innovation.

Michigan needs to compete directly with those hubs.

And to do that, we have to back to tariffs, level the playing field.

If some of these other states and communities have, competitive incentive programs, Michigan needs to look at doing something similar.

Not in a not in a way that puts us maybe over our skis financially, but levels the playing field and makes this an attractive place to do business when in reality you can do business anywhere.

So looking at things that would have a high return on investment.

So that is that I mean, there you're going to be budget conscious about what money you can give, but things that would then have a return on investment.

Correct.

So, in a past life I worked for the Michigan Legislature.

I was on staff, I wrote one of the things I wrote was, I assisted on the higher education budget at that time was about $1.5 billion.

And one of the things I remember clearly was Michigan has some of the best research institutions there are in this country.

It's part of why the R&D credit gives you a little bit of a bonus if you partner with the university.

When we were looking at sending them state dollars, there's always that ROI calculation because we want to make sure we're spending every single taxpayer dollar efficiently and effectively.

On average, you can get anywhere from a five to a $25 return on your investment for every dollar spent in research and development.

And we want to do that here in Michigan, as opposed to elsewhere, depending on the industry.

Sometimes you can get a $65 return on investment for every dollar that you spend.

And so that partnership with these businesses and universities, which have that that knowledge base, they're, critically important in the fact that Michigan identified that as a good thing.

It seems to me that this is mutually beneficial to the universities and to the business is particularly in a climate where the public looks, with some skepticism on universities, to show the community impact that they can have if they direct their research in this way.

Correct.

The role of universities, I think, are changing why folks are pursuing a four year education, is changing.

But that research and development piece, there's really no alternative to that.

Universities are typically the best place for some of that work to occur in Michigan.

We're very fortunate.

Several of ours, rank very highly across the country out of all universities, indeed globally.

Now, as far as we you're right.

I was a junior high and high school in Ann Arbor.

So a lot of friends I went to Michigan.

As we think about entrepreneurship, are there specific areas where you see entrepreneurs, including young people, showing great interest at this time?

You know, they seem to be gravitating toward particular roles.

Yes.

In the the CTE classrooms, the in particular the skilled trades.

We have a lot of talent coming out of our schools in Brandywine and the Niles Community School systems.

But what we've detected is that there has been a really big disconnect between those programs and their associated, you know, industries in the community.

And Governor Whitmer had created a kickstarted a program called Emerge Net that aimed to help these, first time job seekers in the community, these these graduating seniors, for instance, who don't have much of a resume that aren't really being serviced by LinkedIn and indeed, but are still looking for that first on ramp in that first experience.

And they're just grasping, trying to figure out what, what is out there for them.

And so this emerged that can be deployed, you know, by any local community.

The Niles Chamber has wrapped both arms around it.

And we've been working on this for a year straight, and we're starting to see some traction where, we've, registered over 400 students, in these CTE programs locally who've created a profile that have expressed a general interest in a general industry.

And now we're going to those businesses saying, look, you've got all this local, young, bright talent in your industry that's looking for something.

It's on you.

Now, let's let's fashion something.

And we're working with them to figure out what does that look like, a job shadow, an apprenticeship.

Just a plain internship.

We're very excited that the energy plant, you know, created out of thin air a paid internship program, that now we've got multiple applicants on a nice Niles high school, applying for.

And those are the kinds of opportunities that weren't there yesterday, but they're there today because of a program like emerge.

Net.

Trying to connect these these students with these local opportunities.

Would you encourage young people or interested in starting their own business to work for an established business first and see what it is they do and, and sort of do their own analysis, investigate and get a better sense of what it looks like.

They absolutely need to.

And there's not enough job shadow opportunities right now.

And there need to be more, because these students that have an idea of what they want to do once they find out what it's really like, oh, I want to be a veterinarian, but I'm really not thrilled about some of the, tougher work that has to be done as a veterinarian.

Maybe this isn't the work for me.

You know, they have second thoughts we need to do.

A dog didn't thank me for giving that, vaccine.

Right.

We need to do a better job exposing these students to multiple career paths.

Earlier on so that they can make more informed decision earlier.

And.

And that's been their wheels.

And make good, informed decisions.

Yeah.

Other thoughts about attracting entrepreneurs or supporting them in their work.

I go back to the ecosystem.

It's a term that I use all the time.

There has to be a supportive environment that wraps their arms or arms around these entrepreneurs, regardless of age or even stage of the business.

Capital can be deployed anywhere.

It can be anywhere across the country.

And in Michigan's case, we see a lot of capital, a lot of brain drain leaving for other places across the country.

And until Michigan, presents itself as a place of opportunity, a place that folks, who want to hang their own shingle should flock to to increase their likelihood of success and lower their risk.

We're just not going to get there.

And so a lot of the work Ryan's talking about bridging education and and business, that gap helps eliminate that risk.

And today, one of the nice things is you can apprentice any job.

So those job shadowing opportunities don't exist.

Because I think a lot of folks don't realize you can be a social media apprentice.

I didn't realize that at first, but you can.

And so we need to think out of the box about some of these time tested tools in today's economy.

And that's a lot of the work I think both of our organizations are doing and collaborating on it.

And where are those kinds of apprenticeships fitting into the required curriculum for the K through 12 system?

At this point, it's part of the challenge.

So, our state standards, often lag behind the needs of the private sector, which is part of where that business and education disconnect come from.

One of the things that we have in Michigan is an extremely strong community college base, and that those community colleges are essentially there to upskill the talent pool that exists locally and equip them with the skills they need for the jobs that there are today.

And so that's the place we most often direct, students.

I literally had a conversation about six months ago with the manufacturer.

I said, is community college really matching the needs of what you need in the trenches?

And the answer was no.

I'm like, well, tell me more.

And when he explained exactly the kind of, you know, apprenticeships and who's looking for maintenance techs, we've got all this automation now and machines that are going to need repair and are going to need to be fixed, like, okay, well, let's work that out.

And we brought the community college and said we need a maintenance tech apprenticeship program.

And lo and behold, six months later they created one.

And that's where, you know, the chamber serve that purpose of kind of filling in the gap.

We convene, we connect, we get people together in the room and work these problems out.

It's fun to really make sure that there's programs that say they will prepare you for careers, and jobs are matching those needs like let's okay, job skill gab.

Now, beyond government and educational support, what is it that members of a community more broadly can do?

I mean, do you see the chamber is playing a role outside of the business owners in terms of setting expectations community wide or, you know, what do you hear from just, you know, people who are teachers, people who are doctors, people who are just living in the communities of what they would like to see in terms of the businesses in their community and how that sort of demand or need gets registered.

I think, at least in my opinion, chambers have a large role to play.

Given how where they're situated right there, these I call it a they're like an ecosystem enabler, right?

They're they're kind of in the middle of the public private nonprofit sectors able to connect those dots.

And so when we look at the needs of, of employers, you hear things that might be considered nontraditional chamber things like housing and child care and even talent.

Talent wasn't always a chamber function.

Right.

But in today's day and age, our organizations need to attack those issues.

We need to be at the table for those issues.

We need to represent business in terms of those issues so that we can eliminate those barriers to prosperity, make it easier for residents, no matter who you are, to live in southwest Michigan, to work in southwest Michigan to raise a family in southwest Michigan.

To me, the chamber represents the private sector and you can't separate the private sector from some of those conversations.

And so we really bring that angle to those, to those conversations and eliminate those barriers, meaning Thank you both so much for being here.

Unfortunately, that's all the time we have for this week's Politically Speaking.

I want to thank our guests, Arthur Havlicek, president and CEO of the Southwest Michigan Regional Chamber, and Ryan Booth, school executive director of the Greater Niles Chamber of Commerce, for helping us understand the challenges and opportunities facing businesses in Southwest Michigan.

Today, I'm Elizabeth Bennion reminding you that it takes all of us to make democracy work.

We'll see you next time.

This WNIT local production has been made possible in part by viewers like you.

Thank you.