Business Leaders for Michigan: Michigan Has a Ways to Go to Get to Top 10
Summary
Business Leaders for Michigan, the state's business roundtable, gave testimony to the Economic Development Committee with data on the state's economy. It says members drive 40% of the state's economy and employ more than 540,000 people, and that Michigan is ranked 31st, slipping two spots from 29th last year, against a goal of a Top 10 state. It cites Federal Reserve per capita income data from 1980-2021 and Bureau of labor and statistics projections for professional and business services. It then presents a Holistic Economic Development Framework under which Michigan becomes the Scale-Up State.
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“Business Leaders for Michigan: Michigan Has a Ways to Go to Get to Top 10.”
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Economic Development
Committee
1
Who We Are
Who We Are
Business Leaders for Our members:
Michigan, the state’s
Drive 40% of the state’s economy
business roundtable, is
dedicated to making Generate over $1 trillion in annual
Michigan a Top 10 state revenue
for jobs, education,
Employ more than 540,000 people
widely shared in Michigan
prosperity and a
healthy economy. Educate more than half of all
Michigan public university students.
Michigan has a ways to go to get to Top 10
We are ranked
31st
slipping two spots
from 29th last year
37 -2
Michigan’s income has not kept pace with US
US:$66,555 70,000
Per capita income ($) 1980-2021
60,000
Michigan MI:$56,494
50,000
US
$39,887
40,000
$30,344 $35,760
30,000
$30,015
20,000
MI: $10,230 This divergence coincides with a decline in
manufacturing jobs in MI and lack of new 10,000
US: $9,843 Professional and Business services jobs
0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025
Source: Federal Reserve 5
Professional and Business Services has seen one of the largest
growth rates in the US, but not in Michigan
Professional and Business Services Michigan
Jobs (indexed on 2000 # of jobs) US
140 135%
129%
120
110%
100%
100% 100%
100
100%
80 90%
77%
60
40
01/00 01/02 01/04 01/06 01/08 01/10 01/12 01/14 01/16 01/18 01/20 01/22 01/24
US is projected to see an additional 2 million jobs in
this area in the next 10 years
6
Source: Bureau of labor and statistics
Knowledge Economy Jobs will make up most of future growth
Projected employment change 2020-2030 (K)
Annual
US projections wage ($)
Professional and
2,020 73,263
business services
Construction 315 70,007
Financial activities 303 80,184
Information 283 87,310
Manufacturing 144 64,768
Logistics 141 70,493
Michigan’s largest portion of Professional and Business Services, is
Research, Engineering and Design, a sector ripe for growth
Source: Bureau of labor and statistics 7
Michigan is losing talent to knowledge
economy hubs
Top 10 net worker migration destinations (2010-2021)
Seattle
3,800
San 9 of top destinations are
Francisco Top 10 for knowledge
2,800 Denver economy jobs
3,000
Los Nashville
Angeles Phoenix 3,000
3,500 5,100 Atlanta
3,900
Dallas
5,800 Tampa
Houston 5,500
3,500
These jobs require higher education, creating an income
gap for those without post-high school education
US weekly income 1981-2021 (adjusted for inflation)
1981 2021
1,452
+31%
+8% 1,049 1,057
925
794 835 809
737
618 626
No H.S. Degree Only H.S. Degree All workers Some College/Associates Bachelors or more
Source: UofM RSQE 9
K-12 education improvement supports
economic development
Voters rank Michigan’s K- Actual Rankings:
12 system
February 2022 Kids Count ranking 40th
26.5 out of 50
September 2022
Fourth grade reading 40th -1
26.2 out of 50
High school graduation 42nd -1
Michigan’s educational attainment rankings
are last in Midwest
Educational attainment rate
(% of adults with degree or certificate)
62
Michigan Minnesota
60
Target 60%
58
Illinois
56
Wisconsin
54
Indiana
52 Ohio
50 Michigan (37th)
48
46
44
Michigan (32nd) 42
40
2014 2015 2016 2017 2018 2019 2020 2021
~170K jobs at stake with the electric vehicle transition
169K jobs at risk
123K indirectly
impacted jobs
46K directly
impacted
jobs
California has announced a commitment to ban sale of new gasoline cars by 2035.
Washington, Massachusetts, New York, Oregon and Vermont are likely to follow suit
* Source: CAR analysis of data provided by MEDC (D&B Hoover’s)
In 2021 Michigan was underperforming for battery plants,
but has landed 33% of new battery plants
Sept. 2021: NAM Feb. 2023: NAM Recently announced plants
battery plants battery plants
Jan.
4,000 new jobs; $7B investment
2022
10 +15
25 Mar.
1,200 new jobs; $1.7B investment
2022
Sept.
2,350 new jobs; $2.4B investment
2022
2 +5
7 Oct.
2,112 new jobs; $1.6B investment
2022
Michigan has ~25% internal combustion
Feb.
engine job share and 28% of announced 2,500 new jobs; $3.5B investment
battery plants 2023
13
* Source: Press search, previous data CAR research
Holistic Economic Development Framework
Defend and expand the core +
Diversify our state
Entrepreneurs/ Customer Competitive
Place Talent Innovation Service Incentives
• Industrial • 4-yr degrees • Spark and • Make it easy for • An effective
• Community • CC improvement Anchor businesses and toolbox
development • K-12 reform institutions entrepreneurs (SOAR, Payroll
• Housing • Attraction/ • VC, seed & to grow (Local tax credit, R&D
retention angel funding gov’t, MEDC, tax credit)
• Employer led • Ecosystem for EGLE, etc.)
collaboratives growth
Michigan becomes the Scale-Up State
14
The Why– Building a future that inspires
• Opportunities for our kids so they don’t have to OR WANT TO move away
• A welcoming state that acts as a magnet for talent and entrepreneurship
from across the world
• World class education and pathways to prosperity for all residents
• High quality and affordable childcare, healthcare, housing and a feeling of
security
• Vibrant, safe communities with high quality of life, supported downtowns
and small business growth
15
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