January 2014  

Dear Colleagues, 

The start of the year is a good time to take stock of where we are and our goals for the future. As a state, Michigan has spent the last few years digging out of a decade-long recession driven by a decline in the manufacturing sector and compounded by the national financial crisis. 

The good news is that manufacturing is bouncing back and leading our economic recovery. Growth in MI employment, per capita income, and per capita GDP has outpaced most states in the last two years. Our state leaders have made MI more competitive by eliminating the uncompetitive Michigan Business Tax and have put the state on sound financial footing by reducing long-term unfunded liabilities and building up the state's Rainy Day Fund.

While MI has improved its competitive position, other states are not standing still. If we want to thrive, we must play to WIN.  The cost of doing business is just one factor considered by those looking to locate or expand their business.  Just as important is having a strong base of innovation, infrastructure, talent and unique assets. This will require MI becoming a more welcoming place, investing in transportation, making college more affordable and focusing on what makes MI unique, like our location, engineering and automotive assets.

Follow Business Leaders for Michigan this year as we work to grow our economy and create more good jobs!

Sincerely, 

Doug Rothwell

President & CEO

Michigan Poised to be Global Center of Mobility

Business Leaders for Michigan recently released its recommendations on how to grow one of its 6 New Michigan opportunity areas - Global Center of Mobility. To ensure that MI remains the leader of the auto sector as it transitions into a mobility industry, the strategy identifies action steps, including fostering stronger public-private leadership, aggressive marketing of MI's assets and the auto industry, attracting more mobility conferences, developing a stronger talent pipeline, establishing facilities that enable OEM-supplier collaboration and increasing mobility-focused venture capital. Read more. . . 

Click here to download the full report.

Recent coverage:

Detroit News: Auto research, development a new battleground for jobs

Crain's Detroit Business: Business Leaders for Michigan unveils strategy to grow auto industry potential, add 100,000 jobs

Detroit Free Press: Michigan could add 100,000 jobs as auto technologies hub, study says

Column from BLM President Doug Rothwell 

Our view: As Michigan is the home to the world's largest automotive cluster and the most automotive production/research facilities, the automotive industry is one of our state's six most significant economic assets. BLM supports actions that grow MI's market share of this growing industry sector and position our state as the Global Center for Mobility.

Lawmakers: Law that allows self-driving vehicles tests on Michigan roads will boost auto industry

Lansing State Journal | December 29, 2013

A new law that will allow companies to test driverless cars on Michigan roads will be a boost for the state's auto industry, according to Gov. Rick Snyder and the sponsor of the legislation. Snyder signed the bills Friday, saying the legislation, which requires a person to be in the driverless vehicle to take the wheel if necessary, was needed to keep Michigan in the lead in vehicle research and design. "Michigan is the automotive capital of the world," he said in a statement. "By allowing the testing of automated, driverless cars today, we will stay at the forefront in automotive technological advances that will make driving safer and more efficient in the future." Read more. . .

Comparing State Personal Income Tax Structures

The Tax Foundation reports that Michigan is like most states that either have a statutorily flat or non-cost of living adjusted personal income tax rate.  Read more. . .

State Budget Cuts Linked to Higher Tuition

A House Fiscal Agency report shows state budget cuts over the past decade are a primary driver of higher tuition costs.  The report shows that while the Michigan Legislature does not directly set the rates of tuition that students pay, the level of funding appropriated to universities does play a major role in the tuition setting process.  Further, universities have held costs to the rate of inflation over the past decade.  Read more. . . 

Michigan Universities = $29B Annual Economic Impact 

The  Presidents Council, State Universities of Michigan completed a statewide
economic impact study that shows Michigan's 15 public universities support over 121,000 direct and indirect jobs (nearly equal to the size of the auto industry) and have an overall annual economic impact of $29 billion.   Read more. . .

Michigan Incarceration Rate: Above Average

Governing Magazine reports that Michigan's incarceration rate has declined in recent years, but still remains above the national average and most northern states.  Read more. . .

GM to invest $1.3 billion in new equipment, expansions mostly in Michigan

Detroit Free Press | December 16, 2013  

General Motors' $1.3-billion investment, mostly in three Michigan plants, will retain or add about 1,000 jobs, many of which are in the company's Flint birthplace that has endured the bumpy road of GM's decades-long contraction.

The expansion plans, announced Monday, include $600 million for a paint shop at the Flint truck assembly plant; $493 million for a new 10-speed transmission at the Romulus Powertrain plant, and $121 million at the Detroit-Hamtramck plant where workers assemble the Chevrolet Malibu, Impala and Volt. Read more. . .

MSX morphs into Detroit growth story

Detroit Free Press | December 13, 2013 

Fred Minturn runs MSX International, perhaps the biggest Detroit company you've never heard of. MSX has 5,000 employees, does business in 51 countries, and will rack up around $500 million in revenues this year. Oh, and last month MSX became the latest company to move its headquarters from the suburbs to downtown Detroit, as Minturn and about a dozen other executives occupied new C-suite offices on the 19th floor of the One Detroit Center building, with panoramic views of the city and the Detroit River. Read more. . .

4 Michigan companies make Fortune's list of 100 best companies to work for

Fortune | January 2014 

Four Michigan companies are listed in the 2014 edition of Fortune's 100 Best Companies to Work For. Quicken Loans moved from its previous ranking of 13 up to #5 on the new list, with Plante Moran at #23, Stryker at #42 and Credit Acceptance at #52. Read more. 

Editorial: Lansing must get Michigan's priorities straight

Detroit Free Press | January 5, 2014 

It's not exactly raining money in Lansing these days, but news that state revenues are up about $1.3 billion over three years leaves lawmakers with an interesting question - how to spend the windfall? State House Speaker Jase Bolger, R-Marshall, thinks tax cuts (for people, not businesses) are the way to go, but also says early childhood education and roads are priorities. House Minority Leader Tim Greimel, D-Auburn Hills, echoes Bolger's interest in tax cuts and educational investment. Read more. . .

Michigan's slow growth, aging population could mean worker shortage 

MLive.com | January 5, 2014

The latest sign that Michigan has emerged from its "lost decade" is news that the state's population is growing again and that the rate of people leaving for other places is slowing. Michigan's population grew in 2013 for the second year in a row as the state added 13,103 new residents last year, according to estimates released Monday by the U.S. Census Bureau. Read more. . .

Michigan sees another year of population gain

Detroit News | December 30, 2013 

After years seeing residents leave the state, Michigan posted a second consecutive year of population increase, according to new figures released Monday by the U.S. Census Bureau.

The federal agency estimates Michigan's population was 9,895,622 as of July 1, 2013. That's up 13,103 from the same time in 2012. Prior to last year, Michigan had seen seven straight years of declining population. Read more. . .

Top 10 Michigan Business stories of the year: Think cars, redevelopment, bankruptcy and rebirth 

Detroit Free Press | December 28, 2013

GM was freed from government ownership, and Mary Barra was promoted to be the automaker's CEO. Vehicle sales continued a hot streak, and metro Detroit home prices continued their rebound. Billionaire Dan Gilbert bought more downtown buildings, the Red Wings could have a new hockey arena and Pete Karmanos, cofounder of Compuware, openly feuded with management over the firm's future. Read more. . .

Cutting our universities, harming our future

Bridge Magazine | December 16, 2013

There's no doubt about one thing: Michigan needs a better educated workforce, more now than ever. Yet one of the abiding mysteries of the past dozen years is the strange reluctance of our state's leaders to invest in our future by investing in our citizens' brain power at colleges and universities.

"Reluctance," in fact, isn't the right term. Thinly veiled hostility is more like it. That's a puzzle, because on the surface it looks like shortchanging higher education is cutting off our nose to spite our face. After all, Michigan employers say they've got jobs for 70,000 people - if only they could find applicants with the proper skills. Read more. . .