Why Michigan, USA?

Michigan has transformed into a dynamic hub for innovation, manufacturing, and technological advancements. Once heavily reliant on the automotive industry, the state has diversified into technology, life sciences, aerospace, and more, making it an attractive option for businesses seeking to expand.

Market Opportunity in Michigan

Economic Growth: Michigan’s GDP in 2022 was $608.1 billion, ranking it 13th among U.S. states. The state has demonstrated steady economic growth, with key contributions from sectors like advanced manufacturing, technology, healthcare, and logistics. The Michigan Economic Development Corporation (MEDC) reports that Michigan’s economy grew at an annual rate of 3.1% from 2021 to 2022.

Diverse Industry Sectors:

• • Automotive: Michigan is the automotive capital of the U.S., home to 96 of the top 100 automotive suppliers. In 2023, the automotive industry contributed over $225 billion to the state’s economy, accounting for nearly 20% of Michigan’s GDP. Michigan is also leading the transition to electric vehicles (EVs), with over $16 billion in EV-related investments announced between 2020 and 2023.
  • Technology: Michigan is quickly becoming a tech hub, with 31% growth in IT jobs over the past decade. Detroit and Ann Arbor have become centers for innovation, particularly in sectors like artificial intelligence, mobility, and cybersecurity. Grand Rapids ranks as one of the top emerging tech cities in the Midwest.
  • Healthcare & Life Sciences: Michigan’s healthcare and life sciences industry employs over 400,000 workers and is supported by world-class research institutions like the University of Michigan and the Van Andel Institute. The healthcare sector contributes $65 billion annually to the state’s economy.
  • Aerospace & Defense: The state is home to 600 aerospace companies, contributing $10 billion to the economy annually. Michigan is a major player in defense contracts, ranking among the top 10 states in the U.S.
   

Proximity to Key Markets: 

Michigan’s location provides easy access to both U.S. and Canadian markets. Michigan handles $73.7 billion in annual trade with Canada, its largest international trading partner. Detroit, situated on the U.S.-Canada border, offers a strategic advantage for companies looking to access North American markets.

Workforce & Talent Pool

Michigan has a highly educated and skilled workforce, particularly in engineering, manufacturing, and tech sectors.

Workforce Size: Michigan has a labor force of 4.8 million workers, and a STEM workforce of 358,000 professionals. This ranks Michigan in the top 10 states for STEM graduates, making it an ideal location for industries that rely on technical expertise.

Education and Training:

• • University of Michigan ranks 3rd globally in R&D spending, with $1.7 billion annually, contributing to the state’s highly skilled workforce.
  • Michigan State University and Wayne State University are also leading research institutions contributing to workforce development and innovation.
  • Michigan’s network of community colleges and technical schools offers $30 million in annual workforce training grants, further enhancing the skill sets of its workers.

Competitive Labor Costs: Michigan offers a lower cost of living compared to coastal states, translating to more competitive wage rates. The median annual wage for STEM jobs in Michigan is $89,780, making it cost-effective for companies to hire top talent without the wage inflation seen in states like California or New York.

Incentives and Tax Environment

Michigan provides several tax incentives and credits designed to attract and retain businesses:

Michigan Business Development Program (MBDP): Offers grants and loans for businesses investing in job creation and facility expansion. In 2022 alone, the program supported 8,000 new jobs and $3 billion in private investment.

Michigan’s Corporate Income Tax: Set at a flat rate of 6%, one of the lowest in the Midwest.

Renaissance Zones: Businesses operating within designated Renaissance Zones receive substantial tax exemptions, including property tax and state business tax relief for up to 15 years.

Pure Michigan Business Connect (PMBC): A public-private initiative that has facilitated $12 billion in contracts between Michigan-based companies since its inception.

Infrastructure and Logistics

Transportation: Michigan boasts a highly integrated transportation network that includes 11,000 miles of highways, 4,500 miles of rail, and several major international airports. Detroit Metropolitan Airport (DTW) is one of the busiest U.S. hubs for international trade, and the Port of Detroit is a key asset for shipping on the Great Lakes.

Energy Infrastructure: Michigan’s energy costs are competitive, with a growing focus on renewable energy sources. The state has invested over $14 billion in renewable energy projects, including wind and solar.

Broadband Access: Michigan has invested in high-speed internet infrastructure, with 94% of households having access to broadband, critical for businesses in the tech and digital sectors.

Expanding operations in Michigan offers clear strategic benefits. With its robust economy, skilled workforce, competitive tax incentives, and access to critical North American markets, Michigan is an ideal location for businesses in advanced manufacturing, technology, healthcare, and more.