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Dear Michigan Ambassador, 
While much of the news has been focused on the financial restructuring of Detroit, there's been much less focus on the economic rebuilding of Detroit and as a Michigan as a whole. After years of job losses, budget shortfalls, and economic decline, Michigan's economy is at a 10-year high, with about 200,000 jobs restored and personal income levels that are back up to the national average. Detroit has been a big part of Michigan's revival with $12 billion in new investment and 12,000 new jobs moving downtown in the past few years.
And best of all, we're still growing. We've prepared ourselves for continued economic expansion, using smart strategies to transform our business and regulatory environments. Under the leadership of Governor Rick Snyder and a forward-looking Legislature, we've implemented common-sense tax policies, budget changes, and management practices.
Take a look at what's been done:
- Michigan's tax environment has been overhauled. After the state's job-killing business tax was replaced by the new Corporate Income Tax, Michigan's tax ranking jumped from 49th in the nation to 7th.
- The state budget has been brought back in balance, saving taxpayers a long-term liability of $20 billion, or $2,000 per Michigan resident. Policymakers plugged a $1.5 billion budget hole without the use of accounting gimmicks or borrowing. The state's rainy day fund is being replenished, and is now up to $505 million.
- Bureaucracy is being eliminated. The Governor has deployed a systematic strategy for examining every aspect of the state's regulatory structure. Red tape is being swept aside and the bright light of day is being shone on state agencies and the results they achieve.
- The state's unemployment rate has been reduced from more than 14% to 8.8%.
- Personal income jumped by 3.5% in 2012 alone.
This is all good news. However, in addition to keeping you apprised of this progress, a portion of this newsletter is dedicated to keeping you informed on Detroit's recovery. Like many of us in Michigan, you may be asked for your take on Detroit. It is our hope that this edition of The Michigan Ambassador will be helpful in explaining to friends and colleagues "what exactly is going on in Detroit?"
Also, we have scheduled a conference call for September 11, 2013 at 1:00 p.m. eastern time to provide more details about Detroit. If you are able to participate in the call, please call Donna Salive at donnas@businessleadersformichigan.com or 313-259-5400.
Our state is going the distance and I invite you to travel along with us. We've set our sights on making Michigan a Top Ten state and, bit-by-bit, we are going to make it happen.
Doug Rothwell,
President & CEO, Business Leaders for Michigan
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DETROIT LOOKS TO A NEW BEGINNING, NOT AN ENDING
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Sometimes the right choices are the hardest ones. In our view, Detroit's bankruptcy is a defining moment in the life of a great city. While no one can say for certain what lies ahead, there's more reason to believe this is the start of a new beginning, not a final chapter with a sad ending. Bankruptcy gives the city the opportunity to restructure its finances so it can deliver better police, sanitation and transit services. One can only imagine how much additional growth Detroit could experience if it was cleaner and more effective given the unprecedented level of private investment, foundation support and influx of young professionals occurring today.
Governor Snyder said it best when he called on us all to look at bankruptcy not as an end, but the beginning of improving the lives of the 700,000 people living in Detroit and those who come to work there every day. We ask that you support the Governor, the Emergency Manager and the people of Detroit during this critical time by sharing the enthusiasm that all Michiganders have for Detroit's future.
Additional resources for Detroit information:
- Governor Snyder's video on his decision
- Governor Snyder's news release announcing his decision
- The Emergency Manager's recommendation letter to the Governor
- Next steps in the process
- A video on what happens in Chapter 9
- A cover story in Time that says other cities face similar threats
- A story by noted urbanist Richard Florida in the Atlantic saying Detroit is on the verge of a major recovery
- A Harvard Business Review story on lessons cities can learn from Detroit
- An essay in New Geography describing a renewal of "rust belt" pride often mentioned in other stories on Detroit
- An article in Governing magazine, a publication seen by state and local government officials nationwide, describing bankruptcy's implications
- A story in USA Today about the myths and truths about Detroit's bankruptcy
- Creative director at Lowe Campbell Ewald invites you to take a look at Detroit
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OUR WORK TO ADVANCE THE MICHIGAN TURNAROUND PLAN
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Detroit Aerotropolis is Open for Business! New CEO rolls out marketing strategy
The development of the Aerotropolis, now titled VantagePort,was identified as a key component for accelerating growth in Southeast Michigan in Business Leaders for Michigan's New Michigan strategy. The strategy calls for becoming a Gateway to the Midwest by leveraging key MI assets, including its world class airport, available land, unique geographic location and skilled workforce.
- The new CEO has deep knowledge of the project, a strong relationship with the airport and a successful track record attracting business to the area.
- The brand "VantagePort" was selected to broaden business attraction beyond air cargo and to complement an aggressive business attraction and marketing plan that outlines short-term actions to accelerate development. BLM helped support development of the plan.
Read the press release here. In the past few years, over 2,000 jobs and $300 million in new investment has quietly occurred at VantagePort. Learn more here.
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New Michigan Summit and the 2013 Report
At the March Leadership Summit, Business Leaders for Michigan released the New Michigan Report, which provided an update on the progress made on the 2012 New Michigan Strategy, to nearly 450 business and policy leaders from across the state. Discussion followed on recommended strategies to grow Michigan's economy focused around six key areas of opportunity - Natural Resources, Mobility, Engineering, Logistics, Higher Education and Life Sciences.
Doug Rothwell, BLM President & CEO, said BLM's first annual New Michigan report offers an important first step to help the state track its progress. "This gives us a clear idea of how we stack up to our competitors on key outputs: GDP, employment, and earnings," Rothwell said. "It also tells us about our inputs in six critical opportunity areas. Each year, we'll report how we're doing, where we can grow, and what's next." Read the full New Michigan Report here.
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Renaissance Venture Capital Fund invests. MI businesses grow.
The Renaissance Venture Capital Fund (RVCF), Michigan's venture capital fund-of-funds, was formed in 2008 by Business Leaders for Michigan to bring together the state's venture capital, business, industrial and entrepreneurial communities in a way that would help the state grow and diversify. Since RVCF's formation in 2008, venture capital has grown 3 percent nationally, while venture capital investment in new Michigan companies has grown 69 percent - making Michigan the fastest growing state for venture capital.
The RVCF recently announced that its initial investment of $16.7 million has led to a total venture capital investment of nearly $300 million in 20 new MI companies and the creation of hundreds of high-wage jobs. Find out more about the Renaissance Venture Capital Fund here.
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DATA SUPPORTING THE TURNAROUND PLAN
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Federal R & D as % of State GSP: MI ranks 13th
The National Science Foundation tracks Federal R&D expenditures and ranks Michigan as the 13th top state receiving these funds when adjusted for the size of a state's Gross State Product. Michigan has consistently ranked as a top ten state for total R&D expenditures (university, private and federal) which positions the state well to grow new companies and industries.
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Total Effective Business Tax Rate: MI Among Ten Best
A new study by Ernst & Young and sponsored by the Council on State Taxation shows that Michigan's total effective tax rate on business (including state and local taxes) is among the ten lowest in the nation. Another finding of the study shows that Michigan businesses receive over a 3 to 1 rate of return on their taxes when considering the degree to which business uses public services, such as transportation, health care, the courts and public safety. The rate of return drops to 1 to 1 if 50% of public education expenses are attributed as a business benefit.
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Start-ups on the Rise in U.S.: MI > National Average
The Kauffman Foundation reports that new business formation picked-up in 2011 after years of decline. The geography of start-up concentration is scattered across the U.S., but Michigan ranks above the national average. Read more...
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Why Detroit's Bankruptcy isn't Scaring Away West Michigan Businesses
MLIVE | July 29, 2013 Retailer Meijer Inc. celebrated the opening of its first Detroit store last week as the city  made its debut in bankruptcy court to begin the process of clearing billions of dollars of debt. Although bankruptcy is expected to take years and make it harder for the state's biggest city to borrow money, the move isn't scaring away West Michigan companies. Meijer's $20 million investment is the most recent show of support from the other side of the state. Just eight miles from the new Meijer store, down Woodward Avenue in downtown Detroit, another Grand Rapids business quietly opened its first location within the city limits this month. Read more. . . |
Michigan Leads in Manufacturing Job Growth
AnnArbor.com | July 27, 2013 
Michigan is leading the way in a resurgent American manufacturing sector, according to a report from CNBC. An Information Technology & Innovation Foundation report released last year found United States manufacturing declined more in the last 10 years than it did during the Great Depression, losing approximately 5.7 million jobs. In January 2012, fewer than 12 million Americans worked in manufacturing. Read more. . . |
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Experts Rank Michigan 8th Most Competitive State for Economic Development
May 9, 2013 |CBS Detroit 
Site Selection magazine has named Michigan the 8th most competitive state for achieving success in job creation and economic development, Gov. Rick Snyder announced Thursday.
"More companies are choosing to grow their futures in Michigan and that is reinforcing our well-earned reputation as America's comeback state," Snyder said. "The best way to boost our state's economy and improve the quality of life for all is to create an environment that encourages business investment, job growth and innovation." Read more...
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MICHIGAN AMBASSADOR PROGRAM
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The objective of the Michigan Ambassador Program is to engage business leaders who formerly lived, worked or graduated from school in Michigan, and now are executives in companies that span the nation and globe - to help with Michigan's recovery efforts.
Thanks to BLM's Michigan Ambassador Program champion William Clay Ford, Jr. and BLM's chair, James B. Nicholson, the membership has continued to grow. BLM has hosted several in- and out-of-state events, including convening alumni "chapter" meetings in cities with substantial numbers of MI alumni such as Chicago and New York. Not only are these great networking opportunities, but they also allow you to provide valuable feedback on how to turn Michigan around.
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Michigan Ambassador participants have included high level executives from the following:
* Amazon Marketplace
* Arizona State University
* BDO
* BPI Group North America
* Chemtura Corporation
* ConAgra Foods, Inc.
* CMP Entertainment Group, Inc.
* CPP Global; C Enterprises
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* DeVry University
* Draftfcb
* Early Stage Partners
* Engineered Materials, Inc.
* Evergreen Ventures, Ltd.
* FTN Financial
* Gladson Interactive, Inc.
* Glencoe Capital LLC
* IBM - SPSS
* Ingersoll-Rand
* JAM! ...Just Add Marketing
* JetBlue Airways Corp.
* JPMorgan Chase
* Keeler Ridge Associates
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* McDermott, Will & Emery
* Microsoft Corporation
* Miller Buckfire
* Miller, Canfield, Paddock and Stone, PLC
* Morgan Stanley
* National Automatic Merchandising Assn.
* Navigator Executive Advistors
* Neuberger Berman
* PMA Consultants LLC
* Procyon Advisors
* Quality Systems, Inc.
* Spencer Stuart Management Consultants
* Stout Risius Ross, Inc.
* The Coca-Cola Company
* The Hallman Group
* US Airways
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BLM Contact Info
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Business Leaders
for Michigan
600 Renaissance Center,
Suite 1760, Detroit, MI, 48243-1802
Phone: 313.259.5400
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About Us
Business Leaders for Michigan, the state's business roundtable, is dedicated to making Michigan a "Top Ten" state for job, economic and personal income growth. The organization is composed exclusively of the chairpersons, chief executive officers or most senior executives of Michigan's largest companies and universities, which contribute nearly 25% of the state's economy and provide over 320,000 jobs in Michigan, generate over $1 Trillion in annual revenue and serve over 135,000 students.
Find out more at: www.businessleadersformichigan.com
Business Leaders for Michigan
600 Renaissance Center, Suite 1760, Detroit, MI 48243-1802
Phone: 313.259.5400
E-Mail Address: info@businessleadersformichigan.com |
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