February 2014  

Investing to Accelerate MI's Growth

The Michigan Turnaround Plan recognizes the importance of making investments to grow the economy, but also the need to prioritize them on growing talent and building infrastructure while paying down debt.  The Governor's FY15 Budget Recommendation will give more kids a chance to start school ready to learn, increase college affordability, provide more workers the technical training they need, fix more of our roads and reduce future fiscal liabilities.

The Executive Recommendation recognizes that MI needs more workers with an education beyond high school than ever before by strategically investing in higher education. It proposes increasing funding for our colleges and universities by $8.9 million and $80.3 million, respectively - tied to performance measures, including controlling college costs.  The additional dollars would be allocated based on how well each meets rigorous performance metrics. 

Our View: Michigan's geographic location is one of our state's six most significant assets to drive economic growth. Passenger hub airports have the ability to become major business centers and air cargo is projected to experience significant growth. BLM supports policies, infrastructure and programs that leverage our geographic location to become a Gateway to the Midwest.

Detroit Metro Airport: generates $10.2 billion economic impact, more than 86,000 jobs 

A recent study of the Detroit Metropolitan Wayne County Airport (DTW), an integral part of the New Michigan: Gateway to the Midwest growth strategy, concluded that DTW is responsible for more than 86,000 jobs and about $10.2 billion in total economic impact throughout MI.  The study was conducted by the University of Michigan-Dearborn and the Wayne County Airport Authority. Read more. . .

Our view: Michigan's higher education system is one of our state's most significant assets to drive economic growth. BLM supports boosting investments in higher education to make college more affordable and grow the state's talent pipeline; and leveraging the innovative strengths of MI's higher education system.

University Research Corridor: #2 of Top 8 University Clusters

Michigan's University Research Corridor (URC) ranks high among eight university innovation clusters in a new measure that examines R&D spending, research commercialization and talent production, according to a new Economic Impact Report. The URC - consisting of Michigan State University, the University of Michigan and Wayne State University - ranked second in the Innovation Power Ranking when compared to seven other major university research clusters in six states, including well-known hubs such as North Carolina's Research Triangle Park, California's Innovation Hubs and Massachusetts' Route 128 Corridor. Read more. . .

Ten Year Growth Projections: Great Lakes Lags All U.S. Regions

Michigan's ability to grow is complicated by the fact that we reside in a region that continues to under-perform the rest of nation.  That trend is projected to continue through 2023 based on an independent analysis of labor, economic and census statistics.  Read the story in Forbes here and check out a larger version of the map here.

Higher Education Funding: MI Lags National Average by Over 50%

The Chronicle of Higher Education reports that states increased funding for higher education by 5.7% on average in FY14.  This compares to a 2.3% increase in Michigan.  Read more. . .

Venture Capital: MI Ranks #11 for Deals, #19 for Investments  

PriceWaterhouseCoopers and the National Venture Capital Association report that MI had a strong 2013 for venture capital activity consummating 68 deals (11th best) that attracted $102 million in investments (19th best).  This marks another year of positive momentum for MI, as the state ranked 15th highest in the number of deals and attracted the 16th most investments in 2012.  Read more. . . 

MI Ranks #6 in R & D Spending

The State Science and Technology Institute reports, using National Science Foundation data, that Michigan ranks 6th for having the highest amount of research and development spending from all sources relative to gross state product.  Our ranking is more impressive considering we have no major federal research facilities like other states ranking above us like New Mexico and Maryland.  Our performance is driven by the auto industry and University Research Corridor.  Read more. . .

Site Selectors: Prefer South & Incentives

Site Selection magazine reports that the nation's site selectors and their business clients prefer southern locations and a flexible incentives package when making site location decisions.  There was a strong correlation between the how a state's business climate was ranked by site selectors and a state's ability to craft attractive incentives packages.  Read more. . .

Days State Can Run on Reserve (Rainy Day) Funds: MI #18

The Pew Center for the States reports on MI's progress building up the Budget Stabilization Fund over the past few years.  The state could now run off those reserves for about 32 days - 12 days longer than the U.S. average.  That places MI as having the 18th largest reserve fund among the 50 states.  Read more. . .

Road Funding: MI 10th Most Reliant on User Fees

Most economists support paying road building and maintenance expenses with user fees, such as tolls or fuel taxes, because it aligns the cost with those who use gain the benefit.  The Tax Foundation finds that MI is the 10th most reliant state on this method of road funding based on 2011 data. The state's inability to pass a comprehensive road funding bill not only results in a poorer economic model of supporting roads, it also crowds out the ability to fund other important functions to accelerate economic growth.  Read more. . .

Detroit Manufacturing inspires Obama's job training push in State of the Union address 

MLive.com | January 28, 2014

President Barack Obama, announcing an "an across-the-board" effort to reform job training programs in America, highlighted a Detroit business owner who attended the 2014 State of the Union address as a guest of First Lady Michelle Obama.

"The good news is, we know how to do it," the president said Tuesday night, addressing a joint session of Congress. "Two years ago, as the auto industry came roaring back, Andra Rush opened up a manufacturing firm in Detroit. She knew that Ford needed parts for the best-selling truck in America, and she knew how to make them.  She just needed the workforce.  Read more. . .

New president offers strong vision for U-M

Detroit News | January 28, 2014

Mark Schlissel has big shoes to fill. As the incoming president of the University of Michigan, he will take the reins from retiring Mary Sue Coleman in July. Coleman has set a high bar as a fundraising powerhouse and university leader. U-M's new president seems prepared for the challenge.  Schlissel earned the unanimous support of the Board of Regents when they named him president on Friday. Read more. . .

Roger Penske's views on Detroit's bankruptcy, M1 rail, Grand Prix, more 

Detroit Free Press | January 17, 2014

Gov. Rick Snyder: Detroit should have 'very strong and thoughtful' logistics hub

MLive.com | February 8, 2014

An average of $1.6 billion in goods cross the border between the U.S. and Canada each day, and on Friday Gov. Rick Snyder said a logistics hub in southeast Michigan would help the region and the state capitalize on international trade while boosting local economies. "We should do something very strong and thoughtful in logistics, in Detroit essentially," he said at a Detroit Regional Chamber luncheon. Read more. . .

Editorial: Michigan throws out the welcome mat

Detroit News | January 22, 2014

Michigan is shifting from a state that once led the country in unemployment and population loss to a place where people are starting to find work and opportunity. Now Gov. Rick Snyder is working to tie immigration to the state's economic recovery. That's a good idea. The more individuals who would call Michigan home, the merrier. That's especially true of those who aspire to invest in Michigan and create jobs. This state should be first in line when it comes to attracting investors and business owners. Read more. . .

Michigan's exports continue following positive trend

GRBJ.com | January 14, 2014

According to the latest international trade numbers, worldwide merchandise exports edged up 0.6 percent in November from the previous month to $1.4 trillion, seasonally adjusted, following a monthly increase of 0.2 percent in October.  On an annual basis, worldwide exports in November 2013 were 3.6 percent higher than in November 2012. This monthly data is compiled by the World Trade Organization based on information from 70 reporting countries that account for more than 90 percent of world trade and is adjusted for seasonal factors by e-forecasting.com. Read more. . .