22 MiMfg Magazine December 2017
Manufacturing at Heart of Michigan ’ s Long-Term Growth
By Jeff Mason • Michigan Economic Development Corporation
When it comes to understanding the economic path ahead , history is a great teacher .
Michigan has unique assets and a heritage of innovation that will serve us well as we enter a time of great change and challenges in manufacturing ; and , a time of emerging opportunities for entrepreneurs and businesses venturing into emerging industries , such as cybersecurity , mobility , agribusiness , aerospace and defense .
After the great increase in privatesector investment and job growth in the state over the past six years , now is not the time to be complacent . Perhaps the greatest goal is elevating the expectations of what we can accomplish when we work together .
The power of innovation and creativity along with a clear vision of Michigan ’ s strengths will determine the state ’ s economic future . Success in the everchanging global economy requires an uncanny sense of doing what it takes to stay competitive . And , in Michigan , we ’ re doing just that . In November , Site Selector magazine ranked Michigan as the top state in the Midwest for competitiveness . That impressive ranking is another affirmation of the state ’ s policies to foster a businessfriendly , sustainable economy . Distinctive features of the Michigan economy include lower taxes , less burdensome regulations , fiscal accountability and a bolstered automotive industry that is the preeminent global capital for research and development , innovation and autonomous-vehicle engineering .
Michigan ’ s world-class R & D assets are at the core of the state ’ s economic strengths and growth potential . No other place in the world can boast the range of physical assets , talent and clear vision shaping the autonomous-vehicle mobility revolution than Michigan , where more than 75 percent of all automotive R & D in North America is conducted .
With the advent of PlanetM and the American Center for Mobility ( ACM ), Michigan is widely acknowledged as a global mobility leader . PlanetM is an
The team at Dow Chemical is one of the many assets that set Michigan apart for innovation .
umbrella term that refers to the state ’ s broad range of initiatives to attract and develop companies engaging in the autonomous-vehicle technology space . Meanwhile , ACM is the first testing and validation site for autonomous vehicles . Located at the historic Willow Run facility , ACM stands as a testament to the foresight of Michigan-based automotive industry along with civic and economic-development leaders who understand the arc of economic history and future of transportation .
Lightweight Innovations for Tomorrow and the Institute for Advanced Composites Manufacturing Innovation ( located in Detroit ’ s Corktown ) are developing advanced lightweight materials for manufacturing technologies . No other state has the capacity to conduct this type of extensive , rigorous research on materials that will be used in tomorrow ’ s manufacturing industries .
Positioning Michigan to compete successfully on a global scale requires an awareness of economic trends , emerging industries , and renewed commitment to the state ’ s economic strengths . Building the state ’ s manufacturing capacity is at the heart of this effort .
Approximately 608,500 residents work in manufacturing , including a range of jobs , from engineering to skilled professions . In addition , Michigan manufacturers contributed nearly
$ 93 billion to the state ’ s economy in 2015 , about 19 percent of state GDP . Clearly , investing in manufacturing is an investment in the Michigan economy since every $ 1 spent in manufacturing generates $ 1.81 in additional economic activity .
As a state , our aim is to address engineering and material issues while improving competitiveness in all areas of manufacturing . Primarily , this is accomplished in three ways :
1 . Attracting private investment and supporting the creation of manufacturing jobs using a range of economic development tools
2 . Facilitating the next stage of manufacturing through support of research and development that anticipates consumer trends , and direction of automotive engineering
3 . Training workers with in-demand skills .
Since the Recession of 2009 , manufacturing sector employment has increased by more than 175,600 jobs , a growth of 40.6 percent . Gov . Snyder ’ s prescient decision to commit $ 50 million to skilled trades training at the state ’ s community colleges is among the many plans to prepare tomorrow ’ s manufacturing workforce .
Growth of manufacturing employment occurs within the context of more than 500,000 private-sector jobs added since December 2010 , including more than 227,300 new automotive industry jobs since 2009 .
Today , the challenge is to continue to improve the state ’ s competitiveness , reinvigorate manufacturing prospects , and spread the word Michigan has a clear vision and path to 21 st -century economic opportunities .
The economic path ahead is shaping up to be historic . 6
Jeff Mason is chief executive officer at Michigan Economic Development Corporation . He may be reached at 517-241-1400 and masonj4 @ michigan . org . Learn more about the MEDC at www . michiganbusiness . org .