An Aerospace Manufacturing Attractiveness Index compiled by global professional services network PricewaterhouseCoopers (PwC) ranked Michigan second nationwide behind Georgia based on a weighted score of category and subcategory rankings including labor, infrastructure, industry, economy, cost, tax policy, and geopolitical risk. Rising six rankings after falling to eighth place last year, Michigan’s improvement was attributed to the state’s strong performance in the economy, infrastructure, and cost categories.
Additionally, in the costs subcategories, Michigan ranked second in labor productivity and sixth in cost of materials. Michigan also showed a slight improvement in tax policy rankings, which the report indicates is a reflection of its policy to phase out personal property tax for most businesses. The state’s infrastructure ranking was also bolstered by the quality of electricity supply.
The Michigan Aerospace Manufacturing Association (MAMA) in Sterling Heights also continues to support the industry through research and development in the aerospace supply chain. While identifying opportunities for cost savings, the association has been proactive regarding the development of additive manufacturing technology and battery logistics, which have also helped attract investment in Michigan’s aerospace industry. Specifically, the report mentions the acquisition of Wixom-based Moeller Aerospace by AE Industrial Partners in 2016.
“Michigan is on the rise because of its ability to demonstrate how the supply chain works together in aerospace,” says Gavin Brown, executive director of MAMA. “By showing that there’s a collaborative process to take costs out, the supply network is demonstrating a demonstrably better network of value to the primes than other individual states that have companies that contribute on an individual basis.”
Brown also attributes Michigan’s rise to the state’s aerospace supply chain and its focus on adding value through both additive manufacturing as well as the processes needed to bring costs down.
“We provide the biggest advantage to primes to utilize our manufacturing and engineering capabilities, including 3-D metal production and modeling and simulation,” Brown adds. “Michigan can be ranked number one if we have the foresight to understand the value the industry is going to demand, which is cost savings and on-time delivery.”
A full copy of the report can be found here.