Plante & Moran Announces Results of Business Survey of More Than 100 Middle Market Executives in Michigan, Ohio and Illinois

Leaders Describe the Wins and Woes of Doing Business in the Great Lakes Region

Companion White Paper Champions the Great Lakes’ Overlooked Treasures

Southfield, Mich. — December 19, 2006 — A survey released today by accounting and consulting firm Plante & Moran, PLLC reveals that business leaders are more positive than negative about their chances for success in the current economy. Further, despite persistent claims that an entitlement mentality is pervasive among the region's workers, the more than 100 executives interviewed agreed that the region’s labor force – its work ethic, availability, experience, training and skill set – tops the list of benefits of doing business in the region.

Plante & Moran contracted with the Center for Urban Studies (CUS) at Detroit-based Wayne State University to survey middle-market businesses ($20 million to $200 million in annual revenue) about the advantages and disadvantages of doing business in the economically challenged Great Lakes Region encompassing Michigan, Ohio, and Illinois. Plante & Moran, which has served the middle-market business niche throughout its 82-year history, emphasizes that companies in the middle market form the backbone of the economy, though their role is often over-shadowed by larger business concerns.

"This survey gives insight into the voice of the middle market. It contains the views of CEOs, COOs, and business owners from critical market segments in Michigan, Ohio, and Illinois," says Plante & Moran Managing Partner Bill Hermann, CPA. "It’s heartening to find a consensus among these employers that the region’s workforce is one of the greatest strengths for doing business, in the Great Lakes."

Hermann also cites survey statistics that nearly 56% of respondents are optimistic or very optimistic about the continued growth of their organization, while more than 71% are optimistic or very optimistic about the improvement of their organization’s performance.

"These leaders do not have their heads in the sand; they are positive about the future of their businesses despite the current economic downturn of the region," affirms Hermann. "Although survey respondents expressed concern over the rising costs of health care, high costs of doing business and the decline of the automotive/manufacturing sector, these macro trends don’t stop medium-sized businesses from moving forward."

"There’s an urgency in the Great Lakes sector," offers Hermann. "It’s time to reconsider the Great Lakes Region with a longer-term focus on potential, on enduring values, and on key resources that make this area a potential powerhouse for North America over the next quarter-century."

The survey includes 102 respondent companies, with 53% headquartered in Michigan, 30% in Ohio, and 17% in Illinois. Interviews were conducted by phone in September and October of 2006. A companion white paper also compiled by Plante & Moran offers assessments on the woes and wins of the Great Lakes Region, including the abundance of water, a base of entrepreneurship, leading research institutions of higher learning, and the opportunities for greater regional economic development and coordination of services.

The executives who participated represent a cross-section of the region's leading industries. Thirty-one percent of the companies were in manufacturing and distribution, 17% in health care, 15% were financial institutions, 10% were in construction and real estate, 8% were service companies, and 7% were automotive dealerships. Five percent were public sector organizations, and 7% were in other business segments.

"Plante & Moran believes the future of the Region and continued success of its middle-market companies depends largely upon adopting a 'win-win' approach vs. a 'me-win' approach," explains Hermann. "We favor coopetition between interests who will be better served by working together, whether it is within government groups, regional partnerships, or between the states in the Great Lakes."

Plante & Moran, PLLC is one of the country’s leading accounting and business advisory firms providing clients with financial, human capital, operations, strategy, technology, and family wealth management services. With more than 1,500 staff members, the firm has offices throughout Michigan, Ohio, and Illinois, and in Nashville, Tennessee and Shanghai, China. Plante & Moran has been recognized by a number of organizations, including FORTUNE magazine, as one of the country’s best places to work.