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Home Sponsor Content Bridging the Gap: The Importance of Exports to Michigan’s Economy
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Bridging the Gap: The Importance of Exports to Michigan’s Economy

The Gordie Howe International Bridge stands as a powerful symbol of Michigan’s growing position in global trade, connecting the Great Lakes State with nearby Windsor, Ontario – and ultimately the world. 
By
Wensdy Von Buskirk
-
June 3, 2023
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    The Gordie Howe International Bridge will increase the flow of trade at America’s busiest international crossing.

    The Gordie Howe International Bridge stands as a powerful symbol of Michigan’s growing position in global trade, connecting the Great Lakes State with nearby Windsor, Ontario – and ultimately the world.

    As construction continues, massive tower legs rise into the sky, 16 of 216 planned stay cables connect to the bridge deck and steel girders take shape on both sides of the Detroit River.

    When it’s completed — estimated to be in mid-August 2025  — it will join the Ambassador Bridge and Detroit-Windsor Tunnel as passages for the busiest international crossing in the U.S.

    According to Natalie Chmiko, Senior Vice President of Small Business Solutions at the Michigan Economic Development Corporation (MEDC), the Detroit-Windsor border provides a gateway for Michigan businesses to expand.

    “Canada is Michigan’s largest trading partner,” Chmiko says. “The Gordie Howe International Bridge will support improved flow of trade and business travel, further strengthening bilateral ties.”

    Detroit bridges are not Michigan’s only connection to Canada. The Upper Peninsula boasts the International Bridge, which spans Sault Ste. Marie, Michigan and Sault Ste. Marie, Ontario, while Port Huron’s Blue Water Bridge links the city to Point Edward, Ontario.

    Together with the state’s major waterways and trade routes, the crossings provide easy access to Canada and beyond, making Michigan well-positioned to capitalize on its potential as a hub for international commerce.

    BRIDGING THE GAP

    According to the International Trade Administration, Canada is Michigan’s largest trading partner, with $72.3 billion in bilateral trade per year — the second-largest trading relationship in America.

    Michigan’s exports to Canada totaled $26.3 billion in 2022, accounting for 43% of the state’s total exports.

    The MEDC often recommends to companies wishing to export to start with their nearest neighbor.

    “Canada is an entry point because of its proximity and its lack of a language barrier,” Chmiko says. “It’s often a springboard to other opportunities around the world.”

    The MEDC stands ready to help with a myriad of programs.

    Great Lakes Sound & Vibration.

    GOING GLOBAL

    MEDC’s International Trade Program provides support and funding for small businesses, from consultations with international trade managers and access to foreign offices to State Trade Expansion Program (STEP) grants for export-related projects.

    Great Lakes Sound & Vibration (GLSV) is among the many Michigan businesses the MEDC has supported.

    GLSV, which manufactures defense solutions from facilities in Houghton and Calumet, started exporting to Canada in 2014 and has expanded its relationships to Norway, Japan, Sweden and Iceland. So far, GLSV has grown its exports to 13% of total sales.

    “Exporting can help diversify a company’s customer base, stabilize sales and grow their business, which ultimately leads to new and higher paying jobs in the state of Michigan,” Chmiko says.

    CONCIERGE SERVICE

    The MEDC has a team of International Trade Managers (ITMs) who help companies identify their export objectives and recommend appropriate resources.

    Businesses interested in exporting are encouraged to get in touch with one of the five ITMs covering distinct geographic regions within Michigan.

    “Our International Trade Managers are the first and best contact for businesses within a specific region,” says Alyssa Tracey, MEDC’s director of international trade. “They’re boots on the ground to help companies discover and enter global markets.”

    MEDC also maintains International Trade Centers.

    These foreign offices offer free customized market research, business matchmaking, pricing analysis and market entry strategy for Michigan small businesses looking to break into 135+ markets across the globe.

    STEPPING STONES

    It takes money to grow, and the MEDC facilitates financial assistance for businesses to expand their markets across the Canadian border and overseas. Eligible Michigan businesses can receive capital for export-related activities, helping them access global markets and buyers while improving their bottom line.

    For example, the MEDC offers STEP grants of up to $15,000 a year to small businesses to offset the cost of eligible export activities. The grants are funded by federal dollars through the Small Business Administration (SBA) and matching state dollars.

    “We compete nationally for SBA dollars to support Michigan’s small business community and grow the number of active exporters in our state. Michigan has been the top awardee of STEP dollars in 10 of the past 11 years,” Tracey says.

    The grants reimburse companies 75% of their expenses for specific activities like travel, attending or exhibiting at foreign trade shows, international certifications, compliance testing, digital marketing, and more.

    “It lowers the barrier to access new international customers,” Tracey says.

    RCI Adventure Products used STEP grants to attend two trade shows in the Middle East last year.

    Based in Allegan, Michigan, the company designs and installs a wide variety of attractions like colorful Sky Trail ropes courses and Clip ’n Climb gyms.

    According to RCI Vice President Mark Forbes, the events led directly to sales.

    “We had big projects come in from the UAE and from Kuwait. Many other promising projects are in the designers’ and engineers’ hands for Saudi Arabia and UAE as a result of our attendance at these shows,” Forbes says. “This success is attributed to the MEDC STEP grant assistance which has offset the cost of promoting our business in the Middle East.”

    According to Tracey, STEP grants have led to more than $5 billion in new export sales for Michigan companies.

    “It’s a pretty remarkable achievement,” she says.

    Michigan companies at the 2022 Eurosatory defense trade show in Paris, utilizing Michigan’s booth at the event.

    MICHIGAN: AN INTERNATIONAL TRADE POWERHOUSE

    Ninety-five percent of the world’s consumers, and 85% of purchasing power, are located outside the U.S.

    In 2022, $61 billion in total goods were exported from Michigan, and there is ample room for expansion.

    The ability to grow and compete globally is crucial to Michigan’s small businesses and the state’s economy as a whole. Currently, Michigan’s inbound-outbound trade accounts for 33% of its GDP, ranking seventh in the nation for the highest percentage of trade as a portion of GDP. With MEDC’s help, these numbers are destined to rise.

    For more information on all the programs the MEDC offers to help businesses expand exporting operations, visit MichiganBusiness.org/export.

     






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