Michigan Business Climate Showing Signs of an Uptick, Competitiveness Still Lags

Business Leaders for Michigan’ 2011 new “Economic Competitiveness Benchmarking Report” compares Michigan against other states.


LANSING — While strides have been made in recent months to right Michigan’s economic ship and state business leaders are seeing a glimmer of hope for a stronger economy, Michigan’s competitiveness position vis-à-vis other states will continue to require work. That’s the message of the 2011 Economic Competitiveness Benchmarking Report conducted by Business Leaders for Michigan (BLM).

Findings of the study were unveiled today before a gathering of more than 300 Michigan business, civic and community leaders convened in Lansing for a half-day session specifically focused on Michigan’s position relative to key economic benchmarks. Nationally recognized experts and local business executives provided context on the measurements and insight on the steps Michigan needs to take to propel its economy forward.

The annual report offers a robust assessment of Michigan’s economic position relative to other states and nations, and is used by BLM to prepare and update its Michigan Turnaround Plan. The Michigan Turnaround Plan contains strategies aimed at making Michigan a top ten state for economic growth and job creation.

“Our benchmarking data shows that Michigan is starting to recover from our decade-long and deep recession, but we have a long way to go to reach our goal of being a Top Ten state for job and economic growth,” said Doug Rothwell, president & CEO of l, president & CEO of Business Lrts and local business executivesphy. I should handle the lead-in as to why these are on the agBLM. “Benchmarking shows how we compare to our peers based on actions taken in the past. This year’s report doesn’t reflect recently enacted state tax and regulatory reforms or changes being made to grow entrepreneurism and improve Michigan’s position in the future. The report is evidence that Michigan’s turnaround will take years of hard work and we need to build on recent state progress.”

The 2011 Benchmarking Report shows:

  • Michigan’s economic performance has started to show modest improvement in GDP and per capita income growth, but the long-term trend of growing less than the national average continues.
  • The cost of doing business in Michigan continues to remain higher than the national average, driven by corporate taxes and labor costs. These costs exacerbate Michigan’s relatively weak rankings on economic development efforts, regulatory environment and infrastructure. (Note: The benchmarking data does not reflect recently enacted state tax reforms which are expected to significantly improve Michigan’s rankings in the future.)
  • Michigan’s innovation and entrepreneurial environment has strong assets that continue to be underleveraged compared to new economy peers, but the number of high growth companies and overall level of venture capital is relatively low.
  • Michigan has strong quality of life assets, yet negative attributes— below average K-12 student test scores, a relatively high crime rate in some major Michigan cities and negative image — detract.

“Michigan has tremendous potential. Site Selection Magazine consistently ranks Michigan as a top ten state for corporate plant investments. Michigan’s university system ranks second in the country in total federal R&D expenditures. And in 2010, Wayne County EDGE in Wayne County ranked as a top ten performing economic development organization, based on jobs and capital investment created in its service area,” said Ron Starner, General Manager of Site Selection Magazine and Conway Data, Inc. “Couple these types of accomplishments with additional reforms, effective marketing strategies and a collaborative regional approach to economic development, and you have a compelling case for locating businesses in Michigan.”

The benchmarking report reaffirmed the core elements included in the Michigan Turnaround Plan, BLM’s definitive approach to improving the state’s economic climate and attracting new business growth.

“The Governor and Legislature have already acted to address many key elements of the Michigan Turnaround Plan, including fiscal, tax and budget reforms,” said BLM board chair David Joos. “But a turnaround doesn’t happen overnight, so we need to remain vigilant and build on this recent success by continuing these reforms. Concurrently, we need to move forward on other aspects of the Plan that would prioritize investments in higher education and infrastructure and begin building the foundation of the New Michigan.”

The 2011 Benchmarking Report was prepared by BLM with assistance from McKinsey & Company, a global management consulting firm that is an advisor to the world’s leading corporations, governments and institutions; and the Anderson Economic Group, a research and consulting firm with expertise in economics, public policy, finance and industry analysis. The report was prepared using the latest information available for each metric. The full report is available at http://www.businessleadersformichigan.com/research-and-reports.

Edit Module
Edit Module Edit Module
Edit ModuleShow Tags

Related Articles

Detroit Tigers Announce Partnership With Uber

With only two days until Tigers Opening Day at Comerica Park, the Detroit Tigers today announced a partnership with mobile ridesharing company Uber, naming them the team’s official ride-sharing company. This season, there will be a dedicated pick-up and drop-off zone for fans choosing to Uber to and from Comerica Park, located on the northbound side of the I-75 service drive, between John R and Brush Street.

Detroit Pistons and Henry Ford Health System Partner on Training, Rehab, and Sports Medicine Complex  

The Detroit Pistons and Henry Ford Health System today announced plans to build a new 100,000-square-foot training, rehabilitation, and sports medicine complex in Detroit’s New Center area. The site is bordered by Amsterdam Street, Second and Third Avenues, and a set of railroad tracks to the north. Construction is expected to begin this summer.

Ford Invests $1B in Argo AI, Works Towards Leading Autonomous Vehicle Market

Dearborn-based automaker Ford Motor Co. today announced a $1 billion investment in Pittsburgh-based Argo AI over the next five years, to develop a virtual driver system for the autonomous vehicle Ford has planned for 2021, and for potential licensing opportunities.

Meridian Winter Blast Set to Coincide With North American International Auto Show

The thirteenth annual Meridian Winter Blast, presented by Quicken Loans, has been moved up several weeks and is now scheduled to coincide with the final weekend of the North American International Auto Show — January 20-22.

Detroit Pistons to Move to Downtown in 2017, will Generate Additional $596.2M in Economic Impact

Agreements under which the Pistons will move to downtown Detroit and begin playing next season at the new Little Caesars Arena in The District Detroit, a $1.2 billion sports and entertainment development, have been announced today.
Edit ModuleShow Tags

Most Popular

  1. Nino Salvaggio to Open Bloomfield Township Location on Dec. 28
    Nino Salvaggio International Marketplace is opening a new location on Friday, Dec. 28 in...
  2. Detroit Neighborhoods Receive $35M in Commitments for Improvements
    Detroit neighborhoods will get $35 million in commitments from seven companies, Mayor Mike Duggan...
  3. Bedrock Breaks Ground on Detroit’s Monroe Blocks Mixed-use Project
    Detroit’s Bedrock today broke ground on its 1.4-million-square-foot Monroe Blocks project,...
  4. Dearborn’s Ford Motor Co. Begins First Phase of Construction at Michigan Central Station
    Ford Motor Co. in Dearborn Tuesday announced it began renovation of Michigan Central Station, the...
  5. DoubleTree by Hilton Opens New Luxury Hotel in Bloomfield Hills
    Metro Detroit’s newest luxury hotel, the DoubleTree by Hilton that was redeveloped from the...
  6. Denso in Southfield Invests Nearly $100 Million in Startups to Advance Mobility
    Denso, which operates its North American headquarters in Southfield, says it has invested nearly...