Wednesday, January 24, 2007

We Did Not Need This

Michigan's already staggering economy is going to have to absorb another blow, and this time it is not the auto industry, but the much praised high-tech high-paying jobs that are supposed to be our future.

Pfizer, the drug giant, is closing an operation in Ann Arbor which will cost the state another 2410 jobs, not to mention taxes, and the effect on service jobs that depend on the soon to be displaced workers. There really is no bright spot in this news. The fact that even more Pfizer jobs will be lost in New York is certainly no consolation. They will still have 4000+ employees in Michigan but the loss of more than a third of them will be felt in the state.

Part of the reason, but not the entire reason, was problems with the drug torcetrapib, which was supposed to replace lipitor. Plus they have lost the patent on two other key drugs. That is a problem that all companies face; they need to keep developing new products and technologies to compete and stay profitable; R&D is part of the life blood of many companies, some of whom have stock-holders and board members who don't seem to understand that.

Another point this brings up is that the state and its communities cannot depend on one business or one company or even one industry to save them. Flint and Saginaw are economic sinkholes because they were towns that depended entirely, not only on one industry, but only one company. When a company town loses its company it dies; industrially diverse communities such as Lansing, Grand Rapids and Ann Arbor are doing considerably better than the cities that depended entirely on cars. (Though I am not saying they are prosperous.)


Blogger Lone Pony said...

I think part of the problem with Pfizer and other companies is that they are tightening their belts getting ready for what the Dems are going to do to them.

9:00 PM  
Anonymous Anonymous said...

Just hang in there, Jenny's got a five year plan to put the fix in. S / off

LP hit the nail on the head.

10:21 PM  
Anonymous Anonymous said...

Oh man, that sucks ... sorry to hear that Shoprat. Have to side with LP on this one, and if they start hitting heavier with corporate taxes, you'll see a lot more closing, then moving offshore.

8:41 PM  
Blogger Crazy Politico said...

While LP is somewhat right, losing their patents is the big hit. When the generics come out the "name brand" drugs stop bringing in big bucks.

Considering they spent close to a billion on the lipitor replacement they cancelled it's not unexpected to have to tighten things up some.

8:58 PM  
Blogger BB-Idaho said...

I'm still digesting Ford posting
a $4 billion loss, laying off 30,000 and thinking of awarding
executive bonuses.....

9:41 PM  
Blogger Gayle said...

It sure doesn't look good, Shoprat. Perhaps you should move to Texas. No, nevermind. It's not so good down here either; too many illegals. Seems everything is getting the shaft everywhere in one way or the other.

12:31 AM  

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