E very year brings new legislative challenges and opportunities for Michigan manufacturers , and 2023 promises a lot of both . However , making an impact on critical policies to support economic development , improving the talent pipeline and helping streamline complex environmental policies to help speed the permit process remain top-ofmind for MMA ’ s Government Affairs team .
Partisan changes in the State Legislature may have bearing on legislative actions this year but MMA ’ s team is prepared to quickly engage . We have already established key relationships in order to move the needle on policies and administrative items that will benefit manufacturing and the state and we remain prepared to defend against potential unraveling of positive longstanding policies . Year after year , MMA remains the tip-of-the-spear in driving solutions for manufacturers .
“ The biggest change is the fact that the majority parties in both the House and the Senate have flipped ,” says David Q . Worthams , Director of Employment Policy for MMA . The Democrats hold a 56-54 majority in the House and a 20-18 majority in the Senate . The Democrats have not held full control of Legislature and the Executive branch since 1982 .
Mike Johnston , MMA Executive Vice President of Government Affairs and Workforce Development , says with so many new faces in the Legislature , a lot of their initial efforts in the first quarter of 2023 will be focused on engagement and education . But , at the end of the day , he has high hopes about working with the new legislative leaders .
“ We are optimistic about moving MMA ’ s Legislative Agenda as Democrats are generally supportive of our top two priorities , talent development and economic development ,” said Johnston .
Economic Development
The state ’ s role in economic development is an important one as the Michigan manufacturing sector competes on a global scale that grows a little more complex each year . Johnston says Michigan has had its ups and downs when it comes to growth incentives but the recently enacted SOAR ( Strategic Outreach and Attraction Reserve ) fund has led to significant economic impact in the state as it attracts new business opportunities and provides the right environment for expansion . MMA was one of the main drivers for the creation of the fund and the initial $ 1 billion appropriations , he says .
“ We ’ ve since led the charge for an additional $ 850 million in 2022 in economic development incentives to help save the state . The results have been very successful . In the last year , we ’ ve attracted five transformational investments , totaling $ 13.575 billion in capital investment and 12,800 jobs ,” says Johnston .
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“ That is a tremendous return on the state ’ s investment , and clearly justifies our strong support for economic development efforts in the future .”
Manufacturing is different than other sectors of the economy in that we don ’ t compete across city streets or down the block or even across county lines . We compete with the lowest-cost location anywhere in the world . We ’ re a globally competitive sector by definition . Our companies must be able to compete globally on the basis of price from their Michigan location .
— Mike Johnston , MMA Executive Vice President of Government Affairs & Workforce Development
Competition with other states gains steam every year but MMA aims to position Michigan and Michigan manufacturers for long-term success so that growth occurs here .
Caroline Liethen , Director of Environmental & Regulatory Policy for MMA , says that a large part of being competitive is making it easier for businesses to physically build or expand properties here . At the very least , increasing awareness of permitting procedures handled through the Michigan Department of Environment , Great Lakes , and Energy ( EGLE ).
“ Companies must have confidence they will get permits in a timely and predictable manner for Michigan to be competitive for new investment and even retaining existing businesses ,” says Liethen . “ Business investment capital sits idle waiting for permits and , if other states can issue permits quicker , it is by definition cheaper to invest in other states . Permitting is an economic development issue .”
Economic Development Incentives
Since its bipartisan creation in December 2021 , the Strategic Outreach and Attraction Reserve ( SOAR ) Fund has led to significant economic impact in the state as it attracts new business opportunities and provides the right environment for expansion .
• $ 1.8 billion in investments made by the state
• Attracted 5 transformational projects totaling $ 13.575 billion in capital investment and 12,800 jobs to Michigan in the last year
• Assuming a conservative average wage of $ 50,000 , these jobs will generate $ 640 million annually injected into local communities