State Spotlights
Spotlight on the State of Michigan - August 2010
The Michigan Economic Development Corporation was formed in 1999 through an alliance between the State of Michigan and several local communities. It was the successor to the Michigan Jobs Commission, the state's economic development department, and was created to be a one-stop resource for business retention, expansion and relocation projects. As a public corporation created through an inter-local agreement between state and local governments, the MEDC is a liaison with local communities and agencies across the state. It is guided by a board comprised of members who represent a cross section of the state economy: business owners and executives, local economic developers and college presidents.
Despite a difficult economy, 2009 capital investment and new job creation was quite robust in Michigan. Some $11 billion of investment was committed for nearly 250 projects that will directly create 36,000 new jobs and retain another 56,000. Applied REMI multipliers indicate an impact of 163,500 jobs. These results ellipse the averages for prior years of this decade, perhaps indicating that there is an economic turnaround and Michigan’s strategies are working.
Long dependent on the auto industry for jobs and its tax base, Michigan’s list of top projects is refreshingly diversified. And, those that remain automotive-focused represent the future of the industry including new battery technology research and production. Specifically, two projects initiated in 2009 focus on production of new lithium-ion batteries for mass-marketed electric vehicles. Other key 2009 projects in Michigan focus on renewable energy (both wind and solar) defense and biomaterials. Some of Michigan’s iconic companies (GM and Dow Corning as examples) are participating in new initiatives supported by the state’s manufacturing experience, universities and infrastructure. These assets are being applied to further develop the sectors of Alternative Energy, Automotive Engineering, Life Sciences, Homeland Security and Defense, Advanced Manufacturing and Film.
In June, 2010, Michigan received the Silver Shovel award from Area Development. The State has also been a regular contender for top spot in Site Selection’s Governor’s Cup, finishing 3rd in the most recent competition. Michigan was also recognized by Trade & Industry Development magazine, leading all states with six awards for Corporate Investment, including four in the clean energy sector, and one for Community Impact for a General Electric’s advanced technology and training center in metropolitan Detroit.
Michigan remains the center of the global automotive industry and is where many companies are comfortable with their R&D operations due to access to OEMs and major suppliers and university support.
Synergies from Michigan’s automotive legacy contribute to advantages in alternative energy and advanced manufacturing, and generally the Michigan labor force and universities support firms with the level of skilled workers and professionals they need to succeed.
INDIANA SPOTLIGHT - January 2010
WISCONSIN SPOTLIGHT - February 2010
NEBRASKA SPOTLIGHT - March 2010
OHIO SPOTLIGHT - May 2010
MINNESOTA SPOTLIGHT - June 2010
NORTH DAKOTA SPOTLIGHT - July 2010