In last year’s “Burning Questions,” we pondered pressing topics related to the approaching 2022 elections. There may be no controversial campaigns or hotly contested races in store for the coming year, yet somehow, the political climate seems as fervent as ever. The sense of calm that settled in a few months back, once the ballots were cast and victors declared, has already begun to recede as we contemplate what 2023 might hold. Among the topics making us sweat this January: mercurial gas prices, rising tensions around school safety, the looming threat of recession — and of course, the roads. The “R-word” seems to have become a constant presence in our lives. For months now, the Federal Reserve has been announcing interest-rate hikes on what feels like a daily basis, thus fueling already extensive debate on whether our financial fears will be realized (and whether they already have been). But for all the discourse, a concrete answer has remained elusive. According to the International Monetary Fund, that answer is: probably. The organization predicts that, barring swift action on inflation from policymakers, a recession is imminent — at least on a global scale. Wayne State University economics professor Michael Belzer is less concerned. “Unless something bad happens, I don’t personally think we’ll really get into a full recession,” he says. While multiple factors, such as the Russian war on Ukraine and the enduring disruptive effects of the COVID-19 pandemic on global markets and supply chains, continue to drive inflation, there is cause for optimism. In particular, Belzer points to falling unemployment rates and persistent job availability as signs that the labor market is continuing down the road to recovery. However, he is wary of the Fed’s “aggressive tight-money policies” potentially knocking it off course. Rather than curbing inflation, he thinks steep increases in interest rates could actually serve to stifle economic improvement. “I don’t think that high interest rates will reduce inflation, because the inflation we’re experiencing in this moment isn’t caused by demand shock, like it is in most recessions.” Belzer also discusses gas prices and the international intricacies making fuel prices are particularly difficult to predict. “It’s important to understand that gas prices are not local — oil is a commodity traded on the global market.” However, he suspects that the root of the initial price relaxation — the global economic downturn and resulting reduction in fuel demand — will also “keep the lid on fuel prices” … at least for the next year or so. 

By Kalea Hall  The United Auto Workers' success this week in organizing its first joint-venture battery plant owned by a Detroit Three automaker will aid the union in its fight to organize other similar plants and bolster its position in the changing industry, experts say. Workers at the General Motors Co. and LG Energy Solution joint-venture Ultium Cells LLC plant in Warren, Ohio, this week overwhelmingly voted in favor of UAW representation, with 710 voting for the union and 16 voting against it. The plant is one of four U.S. facilities the companies are planning to open. Production launched first at the Warren facility this past summer. The Warren Ultium facility is the first of several battery plants the UAW will look to organize as the Detroit automakers progress with their EV plans. The organization efforts come less than a year before the UAW starts national contract talks with the automakers, which are likely to focus on preserving union jobs in the move to EVs. "The successful organizing of the new wave of electric battery manufacturing is essential to the UAW's future position," said Marick Masters, a professor at Wayne State University's Mike Ilitch School of Business, in a statement. The UAW's challenge now will be "to meld the representation of these workers into the overall fabric of the auto negotiations so as (to) protect jobs and wages," Masters said. "These workers should become ambassadors for the UAW's efforts to replicate this success in other facilities in the offing and in the facilities of the nonunion electrical vehicle manufacturers such as Rivian and Tesla." 

By Jamie L. LaReau     The hourly workforce at Ultium Cells LLC, the joint venture owned by General Motors and battery maker LG Energy Solution, has voted to unionize its plant in northeast Ohio after the union and the company spent months at odds over the organizing process. About 1:30 Friday morning, the UAW released the results of a two-day vote that started Wednesday and ended at 11 p.m. Thursday. The workers at the plant, located near GM's former Lordstown Assembly plant in Ohio, voted in favor of joining the UAW by a vote of 710 to 16, the UAW said. Experts say the victory is significant for the UAW's future. It should enhance the UAW's bargaining power with the Detroit Three automakers later next year, for example, and it signals that Ultium's two other plants — one being built in Spring Hill, Tennessee, and the other in Lansing — will likely also vote yes for union representation. "If the UAW draws the important lessons from this win and uses the knowledge to replicate success in other comparable situations of joint ventures, then it will have performed its mission well," said Marick Masters, a professor of business at Wayne State University and an expert on unions. "The ultimate objective of unionizing is to improve the working conditions of people and build a stronger middle class. This victory is another signal that there is considerable support for unions that can result in bargaining representation if workers are given a fair chance to exercise their voice without undue employer interference." 

Assistant professor of teaching in global supply chain management at Wayne State University Kevin Ketels discusses the acceleration of Apple’s plans to shift some of its production outside China, which has long been the company’s dominant country in the supply chain. About 85% of iPhones are built and assembled in China. The pandemic, civil unrest and COVID authoritarian rule have revealed that consolidating manufacturing centers for American companies in the volatile country is now becoming more risky and less sustainable. Apple is rethinking its strategy after worker protests related to China’s zero-COVID policies. “We’ve seen police beating workers at Foxcon’s facility in China, which is the world’s biggest site making Apple smartphones…” Ketels said. “Now Apple says ‘we need more facilities and places to avoid supply chain nightmares.’ In the past, people didn’t worry too much about product coming from one location to another. Free trade seemed pretty normal and predictable, but we have entered a whole new world, and Apple is waking up to that…”     

By Eric D. Lawrence and Jamie L. LaReau  UAW members don't yet know if they will have a new president or whether incumbent Ray Curry will hold his seat following the union’s first direct election of top leaders, but one thing is certain: Change is on the horizon. Marick Masters, a business professor and labor expert at Wayne State University, said the vote, with rank-and-file members mostly selecting opposition candidates where they had the choice, revealed a great deal of dissatisfaction with the current leadership. Masters said, noting that some of the reforms in budgeting and personnel that the union is required to implement as a result of the fallout from the corruption scandal are “works in progress.” “They have an opportunity if they are firm and aggressive and thoughtful about it to make sweeping changes,” Masters said of the new voices. The corruption scandal, which exposed a culture where some top leaders helped themselves to a “fat cat” lifestyle, amplified the dissatisfaction among many members, but Masters said the discontent had its roots in other causes, such as unhappiness with the union’s stance in bargaining and a perceived willingness to cooperate too much with management. Looking ahead, the union will need to prioritize where it puts its organizing resources, Masters said. If the union wants to show its ability to make progress on some of the issues members care about, then it will need to demonstrate that it can unionize workers at electric vehicle battery plants and at auto plants not controlled by the Detroit Three, he said, noting that it won’t be easy. “These companies are not going to roll over and allow this to happen without a fight, so they’re going to have to be more resourceful overall in how they approach organizing these new battery facilities and these foreign-based plants in the United States,” Masters said. 

By Phoebe Wall Howard  Ford shattered a sales record for the month of November after reaching a record-setting pace of 52,518 new orders for the 2023 Super Duty pickup in the last five days of October, when it averaged more than 10,000 trucks a day, according to monthly sales data. But the November sales report nearly triples that figure. The Super Duty pickup has a base price of $43,970 that often climbs past $90,000, depending on amenities selected by the buyer. Options include type of engine, wheels, tires, cloth or leather interior, display screen size and massaging seats. Ford now has orders for 151,870 Super Duty trucks since the order bank opened Oct. 27, the company revealed Friday. Marick Masters, a business professor at Wayne State University, said Ford has a high-stakes interest in maintaining the appeal of the Super Duty that goes beyond just happy customers who want a pickup with a traditional internal combustion engine that pulls enormous loads of weight. These are the products that fund the future at Ford in electrification and technology research, he said. "This bodes well for the company's future," Masters said. "The sheer volume of orders is particularly surprising. It's very important for the company to have high levels of sales in these profitable areas." 

Marick Masters, professor at Wayne State University’s Mike Ilitch School of Business, shares insights about the types of jobs that may be most threatened by automation, fields expected to experience a high rate of job growth, and more. “The sectors in which the most growth is expected are healthcare, leisure and hospitality, advanced technology, data and information analysis, and alternative energy. Jobs that involve the provision of care and services for the elderly and infirm are like to grow considerably. Included among the specific jobs expecting growth are nurse practitioners, statisticians, health services managers, data analysts, and technicians working in alternative energy,” Masters said.  

The city of Ferndale has become the target of jokes and complaints on social media by fans of Taylor Swift because the vinyl records, CDs, sweatshirts, jewelry and other official merchandise sold on the singer's website are shipped from the Metro Detroit city by record label Universal Music Group NV through a company called Artist Endeavor LLC. And some fans who preordered her 10th studio album, "Midnights," released on Oct. 21 say they aren't coming, well, swiftly enough. Central parts of the country, like Michigan, often can be attractive to distributors for ease of access to customers nationally. Metro Detroit also is home to a major international airport, though it's still 30 minutes from Ferndale. Michigan may offer less costly real estate and labor than other states like Massachusetts, noted Hakan Yildiz, associate professor of supply chain management at Wayne State University. It also has a low risk for natural hazards like hurricanes, tornadoes and wildfires. 

Three energy companies, a fertilizer firm and a drug maker have all been suping super well while most of the rest of the U.S. grapples with soaring prices. There’s a silver lining to the worst inflation since the 1980s. Just ask the companies that are making bank on higher prices. Hiking prices gets easier during inflation, when everyone seems to be doing it. Sometimes charging more makes sense. Inflation raises the cost of production, and most companies pass on the cost to customers. Sometimes, however, the higher prices go above and beyond the extra expenses companies incur. Operating margin is a fair indicator because it excludes borrowing, Wayne State University finance professor Mai Iskandar-Datta said. “Essentially, you’re trying to have a broader picture of company performance. You’re trying to see how they’re doing without considering financing. It separates financing and investment decision-making.”

By Minnah Arshad  As the “glory days” of widespread, generalist master of business administration degrees fizzle out, Michigan universities are finding new ways to attract students across the globe. At the start of the COVID-19 pandemic, some universities saw a decrease in graduate business program enrollment, which could be attributed to health concerns or deferrals for international students. Fall 2022 data shows a rebound to pre-pandemic numbers for some universities in the region. For others, the slump continues. While colleges in Michigan have offered numerous options for how to earn an MBA, from fully virtual to in person, the question of why has changed over the last couple of decades. Over the years, accrediting bodies and business colleges have shifted focus as the world evolves, said Jeff Stoltman, director of entrepreneurship and innovation programs at Wayne State University’s Mike Ilitch School of Business. With the collision of the digital revolution and societal shift, entrepreneurial academics are facing another moment of “soul-searching criticism,” Stoltman said. Wayne State faculty approved some revisions to the MBA program on Sept. 30, Stoltman said, adding new courses in supply chain and emerging technology issues, which reflect the growth of the digital economy. As a Detroit university, Wayne State has responded to the auto giants by way of building a strong supply chain program. Over the last few years, Wayne State has offered courses in varying lengths and formats, from four-week classes to weekend classes, and asynchronous, synchronous, hybrid and in-person formats. Most of the MBA students are part-time, so the university has worked to offer a variety of schedules to accommodate working students.  

By Brandon Kochkodin    When it comes to inflation, there’s no shortage of blame to go around. First, the pandemic broke the global supply chain. Then stimulus payments set off a frenzy of consumer spending at a time when finding toilet paper at the local grocery store wasn’t a given. But from the halls of Congress to Main Street, fingers also point at corporate America. Greedy companies, by this telling, have raised prices above and beyond their rising costs of production. Companies, of course, deny this. “Operating margin excludes financing costs,” Wayne State University finance professor Mai Iskander-Datta said. “Essentially, you’re trying to have a broader picture of company performance. You’re trying to see how they’re doing without considering financing. It separates financing and investment decision-making.”    

By Jamie L. LaReau  General Motors is reinstating health care benefits to its U.S. salaried employees' same-sex domestic partners and their kids and, in a first for the automaker, is also going to allow employees to add opposite-sex, unmarried partners and their children to their health plans. GM's move, part of an effort toward its goal to be the most inclusive company in the world, will also expand the medical benefits it already offers to transgender salaried employees in the United States. The initiatives start January 1, 2023. GM's strategy, while significant for its goal, is not groundbreaking. This time a year ago, Stellantis reinstated its offering of domestic partner benefits for same-sex couples, adding it to the inclusion of employees with opposite-sex partners, which was not the case previously. The offering is still in effect. Stellantis has also offered similar medical benefits to transgender people. Similarly, Ford Motor Co. provides domestic partner benefits in the states that require it. Since 2021, Ford has covered various transgender-related medical procedures and it will add new services next year. GM's newest offerings are more "in the middle of the curve" than ahead of it, said Marick Masters, a business professor at Wayne State University who specializes in business, labor, human resource management, conflict resolution and employee relations. "They are essentially catching up," he said of GM. "Recruitment and retention are difficult in auto because of the waves of technological change, continual restructurings due to electrification, and portending demand for product challenges, domestically and globally, on the heels of supply (chain) difficulties." 

By Rasha Almulaiki  Economists have long lamented the shrinking of the American middle class. In Detroit, the economic crises of the Great Recession, the COVID-19 pandemic and the persistent instability of an accessible real estate market has exacerbated the strain on the growing socio-economic divide between the top one percent and the struggling majority. In an economic climate that is steadily growing stronger, residents need to think about ways to build generational wealth to sustain themselves and the future of their family’s financial health. Ranjan D’Mello, professor of finance at Wayne State University, discussed how Detroiters can begin securing their future. “The idea is that you have to begin saving early,” said D’Mello. “For those that spend on things they don’t really need, there must be restraint and a long-term goal in mind.”  

By Alexander Davidson  Alexander Davidson, assistant professor of marketing at Wayne State University, wrote an article for The Conversation about disparities in Airbnb earnings between male and female hosts. He highlights recent research that found female Airbnb hosts in the United States earn on average about 25% less per year than their male counterparts for their rentals, and that, in general, women offer lower rental prices than men on the site. “It’s not yet clear whether or why male and female hosts take different approaches to setting Airbnb rates – although other research suggests some clues,” he writes. “A 2007 study found that compared to women, men negotiate for higher payments in bargaining situations. And a 2009 study of gender differences in setting professional fees found that women typically charge less than men for the same services because they tend to be more relationship-oriented toward their clients, which can lead them to charge lower prices.”  

Kevin Ketels, assistant professor of teaching global supply chain management at Wayne State University, joins in a conversation about Twin Metals’ lawsuit challenging the Biden administration’s cancelation of two key federal mine leases and the government seems to be pushing toward electric vehicles and wind and solar power. The suit is the latest step in a longstanding back and forth over controversial proposed mines that’s now spanned three presidential administrations. “There is definitely going to be some tension in the upcoming years as we try to navigate electric vehicles and producing the batteries and materials for them. There’s no easy way to do this. Opening up these mines in some of these areas – there will be questions about the impact on local communities and the environment. We definitely feel that tension…" 

By Dorothy Hernandez  Marick Masters, a management professor at Wayne State University and labor expert, joins Detroit Today to discuss unions in America. He said corporations and labor both played a role in the decline of union membership, but the trade policies driving the U.S. economy are the primary culprit. While union membership has continued to decline in recent years, last month saw an increase in momentum for labor movements in Michigan. Both state congressional staffers and nursing home workers continued formal efforts toward unionization, continuing a spike in union worker petition filings nationally this year. “I would say the principal blame lies in the structure of the U.S. economy, which is dominated by the wealthy and those who have supported free trade policies, which has led to the exodus and off-shoring of jobs,” said Masters. “Treaties like NAFTA and our trade relations with China have cost lots of manufacturing jobs, which have resulted in the decline of unionized workers.” “I’d say that if we’re looking to place blame on the unions, it wouldn’t be so much that they did a poor job representing members. In fact, the opposite is probably the case,” he said. “They probably did too good a job in trying to raise wages and raise benefits to where the companies could not remain competitive with the onslaught of international competition with unfair trade rules.” 

By Kurt Nagl Wayne State University sociology students will be conducting a demographic study for the North American International Auto Show in September to give organizers a better idea of its audience. In addition to this student project, the university’s Mike Ilitch School of Business will host an executive speaker series with an emphasis on the issue of recruiting diverse talent in the automotive industry. The Detroit auto show, scheduled for September 14 to 25 will return to downtown Detroit for the first time since 2019. The new indoor-outdoor format seeks to attract a new type of audience and raises questions about how the event will fit in the industry’s show circle going forward. “Our partnership with Wayne State University is a great example of the community outreach we are undertaking this fall as part of the auto show,” Rod Alberts, executive director of the show, said. “Students will be directly engaged with the show, managing and completing a demographic study of the various audiences that the show attracts.”