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MiMfg Magazine
December 2017
our next generation to prosper right here in Michigan.
(Learn about talent-related legislative efforts MMA
is pursuing in 2018)
“The PRIME® program, Governor’s Summit,
Skilled Trades Training Fund, Career Pathways
Alliance and MMA’s legislative efforts all combine to
ensure Michigan is a top state for talent development,”
said Johnston. “To address the current shortage, we
must increase awareness of rewarding manufacturing
careers and allow Michigan students every opportunity
to develop the skills to achieve them.”
Michigan Manufacturing Stats
Manufacturers contributed $2.18 trillion to the U.S. economy in 2016
Total manufacturing output in Michigan in 2015 was $92.55 billion
Michigan manufacturers exported $52.05 billion in goods in 2016
The average wage and benefits in manufacturing are 27.4%
higher than the average of all industries
Manufacturing’s multiplier effect – the impact an industry has on
people and businesses outside the industry — is the largest in the
nation with every $1 spent in manufacturing generates $1.81
in additional economic activity
Over the past 25 years, U.S.-manufactured goods exports
have quadrupled
Manufacturers pay $19,564 per employee on average to comply
with federal regulations, or 95.8% higher than the average cost
across all businesses
According to the Department of Treasury, manufacturing employs
over 9% of the total U.S. workforce, yet is responsible for 60% of
exports and 69% of R&D spending
Reducing Regulations
for a Competitive Michigan
Manufacturers aren’t limited in choosing where
to locate their business. For Michigan to thrive, it
must be competitive with Ohio, Indiana and Wisconsin
in the Midwest, with California, Pennsylvania and
Texas nationally, and with every nation in an
increasingly global market.
“Manufacturers don’t simply compete with the
business across the street or the company one city
over, today’s manufacturer competes with the lowest
cost locations anywhere in the world,” said Johnston.
“When a manufacturer can make significant cuts to
its bottom line by going somewhere else, that’s bad
for our state and bad for local communities.”
Review and Elimination
of Unnecessary Regulations
During the lost decade, manufacturers faced
countless regulatory burdens — barriers between
them and economic success — and Governor
Snyder made eliminating unnecessary regulations
a focal point of his first months in office.
The creation of the Office of Regulatory
Reinvention (ORR), now the Office of Performance
and Transformation (OPT), dedicated Michigan
to the reduction of obsolete and burdensome rules.
The ORR oversees the administrative rulemaking
process for each department in the State of Michigan
Manufacturing directly employs more than 608,500 Michiganians
Manufacturers in Michigan account for 19% of the state GDP —
6th highest in the nation
Michigan’s 9.3% drop in unemployment since June 2009 is the
largest improvement of any state
Employment in Michigan’s manufacturing sector has increased by
more than 175,600 jobs since the state’s June 2009 — an increase
of 40.6% in 8 years
Michigan accounts for 22% of all U.S. auto-related jobs
For every 1 worker in manufacturing, there are another 4
employees hired elsewhere
Over the next decade, nearly 3½ million manufacturing jobs will
likely be needed, and 2 million are expected to go unfilled due
to the skills gap
Engineering is just one example of the high skill level required for
many advanced manufacturing careers — 40% of all engineers
in Michigan are employed by a manufacturer
Women represent approximately 25% of manufacturers in Michigan
Sources: National Association of Manufacturers, U.S. Bureau of Labor Statistics, U.S. Bureau
of Economic Analysis, Michigan Department of Technology, Management & Budget