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VIEWPOINT


January 2016
New Year, New Goals, New Michigan

Michigan's turnaround to date has been the result of a lot of hard work by businesses and people across our state. It's also been facilitated by state tax, fiscal and regulatory changes that created a better business climate.  But there's a stark difference between turning the state around and being a Top Ten state - especially when being Top Ten could mean up to 120,000 more jobs and higher incomes for every Michigander.

That's why we can't let our recent success allow us to become complacent.  We need better tools to attract business.  More educated and skilled workers.  A laser-like focus to ensure MI maintains its signature automotive industry as it becomes increasingly based on technologies developed across the globe.  

If we want to attract more jobs and businesses, MI needs better tools to compete.  We have a good business climate, but so do most of the states we compete against and they offer more incentives to locate there.  That needs to change.

It will take the state getting more serious about making the investments needed to make a college and university education in our state affordable.

Finally, it will take a recognition that while recent tax and fiscal reforms stabilized our finances, we still have more than 1,800 units of government, too little service sharing across these entities and too much debt that could sidetrack our future growth. In fact, we still routinely pass legislation without knowing its potential future costs. 

As we enter a new year, we should be proud of our recent progress.  But looking forward, we should be mindful that our work is far from over.   Let's work together to build a New Michigan.

OUR WORK


Michigan Universities Show Compelling Growth
 
Michigan's public universities are showing impressive gains, according to the 2015 update of Business Leaders for Michigan's Performance Tracker for Public Universities. BLM has identified higher education as both critical to producing the talent MI needs and a key economic sector that has the potential to build a New Michigan economy.
 
This year's key findings include:
  • 12 of 15 institutions increased their enrollments
  • 10 of 15 have six-year graduation rates better than their peer average, and 11 have increased their graduation rates in the past year
  • 10 of 15 institutions have student retention rates better than their peer average, and nine have increased their retention rates over the past year
  • 10 of 15 awarded more total degrees than their peer average, and 12 have increased their total number of degrees awarded
Michigan Higher Education Partnership Council to Help Boost Educational Attainment
 
A group of public, private and postsecondary institutions are joining forces to increase educational attainment across MI. Spearheaded by the Michigan Higher Education Partnership Council,  the "Keep Learning, Michigan. For All It's Worth." campaign launched recently, aimed at heightening awareness of the need for teens and adults to continue their education and training beyond high school. These are the first elements of a comprehensive media campaign planned for launch in 2016. Read more. . .

OUR EVENTS 


Michigan CEO Summit 

Thank you to all who attended the Michigan CEO Summit last month in Detroit. You can download conference materials, photos and video at www.businessleadersformichigan.com/events

Save the date for our 2016 Michigan CEO Summit!
Thursday, November 10, 2016

 ADVANCING THE MICHIGAN TURNAROUND PLAN & THE NEW MICHIGAN STRATEGY



The Michigan Turnaround Plan reflects the significant progress that has been made in making MI more competitive.  It identifies areas where we can compete, invest and grow in order to make our state stronger for generations to come.

 

INVEST: Talent 


Our view: To fill the jobs of today and tomorrow, Michigan needs to fill its pipeline with an educated and skilled workforce. BLM supports making strategic investments in areas that make college more affordable, grow the state's talent pipeline and harness the innovation of MI's higher education system.
When it comes to talent, Michigan needs more of everything

When it comes to building a brighter future for MI, no factor is more important than providing our state's residents the education and training they need to be successful. Children and adults become poised for success when they have the knowledge and skills they need to grow, thrive and contribute to MI's overall prosperity. But as a recent Michigan Postsecondary Credential Attainment Workgroup report reminds us, many in our state haven't obtained an education beyond high school or lack the technical skills necessary in today's economy.  Read more. . . 

GROW: New Michigan - Global Center of Mobility


Our view:
BLM supports leveraging MI's distinctive assets to grow good paying jobs and accelerate MI's economic growth in areas where our state demonstrates unparalleled strengths or expertise such as the automotive/mobility sectors. To that end, MI should market its expertise in these areas to position our state as the Global Center of Mobility.
Mahindra Bets on Detroit Engineering
Wall Street Journal | January 10, 2016

Decades ago, Japanese car companies traveled to Detroit to learn to be like the Big Three. Today, one of India's top auto makers is following in their footsteps. Mahindra & Mahindra Ltd., a Mumbai-based conglomerate with a thriving tractor business and information technology operation in the U.S., quietly has amassed an engineering staff about a dozen miles north of Detroit.  
Ford-Backed Techstars Mobility, Driven by Detroit Providing Funding, Training
Business Wire | January 5, 2016

Ford-sponsored Techstars Mobility, Driven by Detroit recently began accepting applications from startups interested in developing future mobility solutions. Up to 12 startups will receive $120,000 in funding and three months of mentoring and training to develop ideas and solutions aligned with Ford Smart Mobility, the plan to take Ford to the next level in connectivity, mobility, autonomous vehicles, the customer experience, as well as data and analytics.  Read more. . .

GROW: New Michigan - Gateway to the Midwest


Our view:
BLM supports leveraging MI's distinctive assets to grow good paying jobs and accelerate MI's economic growth in areas where our state demonstrates unparalleled strengths or expertise such as the logistics sectors. To that end, MI should market its expertise in these areas to position our state as the Gateway to the Midwest.
Detroit Metro Airport ranked 9th best in nation
The Detroit News | December 16, 2015 

A study released Wednesday by J.D. Power has ranked Detroit Metropolitan Airport as ninth best in terms of overall traveler satisfaction. Now in its 10th year, the North America Airport Satisfaction Study rates large and medium-sized airports on six factors, including: terminal facilities; airport accessibility; security check; baggage claim; check-in/baggage check; and terminal shopping. Read more. . .

DATA SUPPORTING THE TURNAROUND PLAN


Michigan earns "C-" on K-12 education

A respected annual report card on the quality of state education programs ranked Michigan slightly below average - a ranking that is affirmed by BLM's own benchmarking report.  Education Week's Quality Counts Report-Called to Account: New Directions in School Accountability examines how new state and federal strategies are transforming the assessment of school performance and reshaping the consequences for poor results. Read more. . .
Michigan #1 state for spending more on corrections than higher education

The American Academy for Arts and Sciences  released data showing that Michigan has the dubious distinction of being the state with the greatest gap between what it spends on corrections versus higher education - a difference of $650M/year.  Read more. . . 

SPOTLIGHT ON OUR MEMBERS


Automakers strike back at Silicon Valley disruptors
Business Insider | January 6, 2016

General Motors will invest $500 million in ride-hailing company Lyft, its most aggressive move yet into a future where on-demand ride services threaten to replace auto ownership and robots could unseat human drivers. GM's move and others underscore Detroit's determination to battle Silicon Valley for dominance of clean urban transport.    Ford Motor Co used the Consumer Electronics Show in Las Vegas to announce that Toyota Motor Corp. will use Ford software to connect smart phones to dashboards and join Ford in promoting that SmartDeviceLink system to other automakers.  Read more. . .
10 companies that want to hire former Michigan residents
MLive | December 15, 2015

Hello West Michigan is putting out a call for former Michigan residents who want to return home, but need to land a job first. The organization recently held an online job fair aimed at helping Michigan employers tap into talent currently beyond the Mitten State's borders. The employers participating include Amway, Blue Cross Blue Shield of Michigan, Haworth, Herman Miller, and Meijer. Companies are hiring for a wide range of fields including healthcare, IT, supply chain, finance, marketing, HR and banking, with a high demand for candidates with experience in manufacturing and skilled trades.  
Lear targets I-94 park site for Detroit plant
Crain's Detroit Business | December 13, 2015

Lear Corp. plans to double down on its investment in Detroit by establishing a new manufacturing plant in the next two years, joining a city-led effort to create a hub with at least four other automotive suppliers. The push, supported by the Detroit 3 automakers - seeks to restore manufacturing capacity - and jobs - at the I-94 Industrial Park near the junction of I-94 and I-75 near the American Axle & Manufacturing Holdings Inc. headquarters. Read more. . .

IN THE NEWS


Our Editorial: Auto industry must stay nimble
Detroit News | January 10, 2016

General Motors' recently announced partnership with Lyft is a big bet for an automaker that just eight years ago was bankrupt. But it shows GM - and the Detroit Big Three - have not just recovered from mistakes, but learned from them as well. The industry's success is pivotal to the future of Detroit and the entire state. It's promising to see automakers take technological disruptions to their industry seriously and try to lead in their development instead of follow.  Read more. . .
5 trends to watch in Michigan's economy
Detroit Free Press | January 2, 2016

U-M forecast extends Michigan's economic growth through at least 2017 with 61,100 jobs in 2016 and 64,800 the following year.

If the prognosticators are right, Michigan's still recovering economy is poised for another round of substantial growth by riding an expected banner year for auto sales. The nation's 10th largest state by population is still making up ground on real estate prices, average personal income and the level of education afforded to its key group of young workers. Read more. . .
Detroit named first American "City of Design" by UNESCO
Architectural Digest | December 16, 2015 

Detroit recently became the first American city to be named a UNESCO City of Design, an honor that recognizes a city's design legacy and commitment to promote cultural and creative industries, joining a total of 116 cities in UNESCO's Creative Cities Network. The application to UNESCO was put forth by the Detroit Creative Corridor Center, a five-year-old business accelerator founded by Business Leaders for Michigan committed to fostering creative fields in the state. Read more. . .
Why investors are coming to Michigan
Crain's Detroit Business | December 7, 2015
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There are a lot more reasons for investors to come to Michigan than there used to be. After a decade of steady, consistent growth in the state's venture capital industry, the Great Lakes State is becoming a destination for venture capital firms. Read more. . .

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Phone: 313.259.5400
info@businessleadersformichigan.com

About Us

 

Business Leaders for Michigan, the state's business roundtable, is dedicated to making Michigan a "Top Ten" state for jobs, personal income and a healthy economy. The organization is composed exclusively of the chairpersons, chief executive officers, or most senior executives of Michigan's largest companies and universities.  Our members drive 32% of the state's economy, provide nearly 375,000 direct in Michigan, generate over $1 Trillion in annual revenue and serve nearly one half of all Michigan public university students. Find out more atwww.businessleadersformichigan.com