1. society
2. work
3. unemployment

LAYING THE FOUNDATION TO BUILD A NEW MICHIGAN
Who We Are
Dedicated to making Michigan a “Top Ten” state for job, economic and personal income growth.
The state’s business roundtable: composed of the chairpersons, chief executives or most senior
executives of the state’s largest job providers and universities.
www.BusinessLeadersForMichigan.com
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Driving nearly one-quarter of the state’s economy: provide over 320,000 direct jobs in Michigan,
generate over $1 trillion in annual revenue, and serve over 135,000 students.
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2
Letter from the Chairman and CEO
3
Executive Summary
4
The Case for Change
5
The Impact on Michigan
7
Michigan’s Competitive Position
12
Progress
14
2012 Michigan Turnaround Plan Overview
25
The Six Step Turnaround Plan
27
Where We Could Be
Business Leaders for Michigan (BLM) is an organization dedicated to making Michigan a “Top Ten” state for job and
economic growth. We serve as a catalyst for change, a visionary organization that supports its ideas with careful
research, thorough planning, and accountability for results.
In 2009, we unveiled the Michigan Turnaround Plan (MTP), an aggressive agenda to make Michigan a Top Ten State
for job and economic growth. The Plan set forward the case for change, naming achievable goals, identifying action
steps and explaining the potential impact of change. The Plan is organized around a five-step strategy: improving the
way the state manages its finances, improving the efficiency and effectiveness of the public sector, getting Michigan
competitive to attract and retain jobs, making investments that will create a great job environment and accelerating
job growth through innovation and entrepreneurship.
We have worked closely with government, policy and business leaders to affect meaningful advancement of each
MTP objective. Citizens and stakeholders have rallied around the MTP. Thanks to policy makers in Lansing, the past
twelve months have been game-changers for our state and many components of the MTP are now in place.
Using our Michigan Turnaround Plan as a checklist, we can see how much has been done to strengthen our state
and reshape its economy. Our state finances are managed better, our tax policy has been improved, our regulatory
environment makes more sense, and the conditions are right to foster growth in our state, creating new jobs and
bringing life to our communities. As you read this report, we think you’ll see that much has been done to strengthen
Michigan’s economic environment. Our economy might not be a Top Ten State yet, but we’re well on our way.
In the 2012 Michigan Turnaround Plan, we identify what work remains in Steps 1-5 to further strengthen our state’s
competitiveness and put our state on a solid path to prosperity.
Now that our foundation is more solid, it is time to add a sixth step to the MTP – Leveraging Assets to Grow the New
Michigan. We identify existing Michigan assets that we believe, based on solid data, can be leveraged to accelerate
growth and transition to the New Michigan. It’s a 10+ year vision that builds on the first five steps of the Plan. We
detail the possibilities we see in each “growth opportunity” to reshape and strengthen the Michigan of tomorrow.
But this will require a shared vision for the future, one that allows us to effectively allocate resources, evaluate plans, and
maintain a coherent approach beyond election cycles. We have the capacity to move into a future that glows with promise.
We invite you to be part of this work. Each of us can have a role in Michigan’s turnaround. Together, we can seize control
of our destiny, make a shift in how we approach the future, and drive lasting change for the people of our great state.
Sincerely,
James B. Nicholson
Chair of the Board
Doug Rothwell
President & CEO
EXECUTIVE SUMMARY
A State in Transition
Michigan has been getting poorer, smaller and less competitive relative to
other states for nearly 50 years. The state needs significant economic
growth to meet and ultimately surpass its U.S. and global competitors.
Incremental changes to the state’s budget, tax and economic development
policies will be insufficient to grow the state’s economy fast enough to
become a “Top Ten” state.
Past
Prosperous State
Per capita personal income 14% above the national average
in the 1950s1
Recent Trends
Relative Decline
Economic decline began in 1960s and accelerated rapidly beginning in
2000 as Michigan fell from above average to below average growth
Root Cause
Uncompetitive
Michigan ranks average to below average on many factors
that drive job creation2
Today
Turnaround Underway
Reforms are helping to improve economy, but complete turnaround will take
years — per capita income 13% below national average1
Future
Michigan Turnaround Plan
A holistic plan that builds on Michigan’s strengths to make Michigan a Top Ten
state for job, economic and personal income growth
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The Michigan Turnaround Plan is a holistic strategy for accelerating growth.
1. US Bureau of Economic Analysis, 2. BLM 2011 Benchmarking Report
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THE CASE FOR CHANGE
One million jobs were lost in Michigan over the last decade
across virtually all industry sectors.
Michigan Lost 1M Jobs 2000-10
50% of U.S. Job Losses:
Michigan lost 1M of the 2M jobs lost in
the nation from 2000 through 2010.
This far surpassed the job losses
experienced by any other state
during this period.
14%
No One Sector Was the Cause:
Michigan under-performed the nation in 86% of the
22 U.S. job categories from 2004-2009.
MI > U.S.
U.S. < MI
The auto sector only impacted ~20% job losses.
Michigan sectors that out-performed the U.S.
average were: Community and Social Services,
Personal Care and Services, and Agriculture.
86%
Michigan Job Sector Growth vs. the Nation
SOURCE: SOC Job Category Data 2004-2009, BLS
THE CASE FOR CHANGE
Job Losses Across All Sectors
THE IMPACT ON MICHIGAN
Michigan has grown smaller and poorer relative to other
states exacerbating the state’s economic decline.
Weaker Economy
Economy Grew 2% Less than the Top Ten:
Michigan’s Per Capita Gross Domestic Product (GDP)
grew 2% less than the average Top Ten state over
the past decade and less than nearly all peer states.
This is the primary factor behind stagnant wages
and job losses.
“Top Ten” states for job and economic growth: KS, MD, MT, NE, ND, SD, TX, VA, WA, WY
SOURCE: Bureau of Economic Analysis; Moody’s Economy.com;
U.S. Census Bureau; McKinsey analysis
Lower Bond Rating
Michigan spent more than it raised in revenues, went
deeper into debt and drew down all its financial
reserves in the 2000s resulting in a low bond rating.
This increases the cost of borrowing for all
governments in Michigan and is a symbol of the
state’s fiscal health.
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Higher Borrowing Costs:
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Poorer Residents
Poorer Relative to U.S.:
Michigan’s per capita income had been close to the
national average for nearly 40 years until declining
dramatically in the last decade.
Michigan’s per capita income has fallen to 39th due
to falling GDP over the past decade.
SOURCE: U.S. Bureau of Economic Analysis
SOURCE: S&P
Smaller State
Declining Population:
Michigan is the only state to lose population in
the last decade (0.6% decline).
This has resulted in Michigan becoming less
attractive to business due to a declining share
of the consumer market.
SOURCE: U.S. Census Bureau Population Estimates Program
Losing Talent
Lack of Jobs Has Forced Talent to Leave:
Michigan’s high unemployment rate and
economic decline across sectors has caused
talent to migrate out-of-state to where most of
the jobs are — the Sun Belt states.
SOURCE: Forbes based on U.S. Census data (2008)
Weak Ten Year Economic Track-Record:
Michigan’s combined ranking on per capita
GDP growth, per capita personal income level
and employment growth is last among states
over the past ten years.
This has placed Michigan far behind its U.S.
and global economic competitors.
SOURCE: 2011 BLM Benchmarking Report
THE IMPACT ON MICHIGAN
Past Ten Years Performance
MICHIGAN’S COMPETITIVE POSITION
Michigan’s competitive position is improving, but still falls short when
compared to “Top Ten” states.
Seeking the Right Balance
The Cost/Value Equation:
No one factor determines where economic
growth occurs. Taxes, talent availability and
quality of life factors all matter.
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Economic growth occurs in places that offer the
most value relevant to the needs of specific
types of businesses at costs commensurate with
the value offered.
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Cost/Value Proposition Improving
Positives on Rise, Negatives Still High:
Michigan’s “cost/value” scorecard is getting better,
but still isn’t strong enough to dramatically accelerate
growth.
Simply put, we need to increase the positive
attributes and lessen the negative drawbacks.
SOURCES: 2011 BLM Benchmarking Report
& Anderson Economic Group Report for Brookings
Strong Talent Production
Competitive Supply of Highly Educated
Graduates:
Future workplace demands will require
increasing the number of educated workers.
Current levels of college graduates make
Michigan competitive with most states.
1 States with the same score received the same rank
2 “Top Ten” states for job and economic growth: KS, MD, MT, NE, ND, SD, TX, VA, WA, WY
SOURCE: U.S. Department of Education, National Center for Education Statistics,
Integrated Postsecondary Education Data System (IPEDS);
U.S. Census Bureau; Moody’s Economy.com
Strong Technical Talent Base
Highly Competitive Supply of Technical Talent:
Michigan’s manufacturing and life sciences heritage
has resulted in one of the highest concentrations of
technical talent, both with advanced degrees and
technical certificates, in the nation.
SOURCE: National Science Foundation
Innovation Outcomes Rank Favorably:
Michigan’s university and industry-based
innovation outcomes rank favorable against top
tier U.S. competitor regions and is a driver of
long-term growth.
SOURCE: 2010 URC Economic Impact Report,
* State Science & Technology Institute
MICHIGAN’S COMPETITIVE POSITION
Strong Innovator
Geographic Location
Location Advantages:
Michigan has three unique geographic
advantages that could be leveraged to increase
exports and attract foreign direct investment:
• One of largest U.S. air hubs to Asia
• Center link of NAFTA highway
• Closest entry to Midwest from Halifax port
Higher Business Costs
Total Business Costs Greater Than National Average:
Companies pay on average 3% more in “total
business costs” in Michigan than the U.S. average.
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Costs can be as much as 19% above the
“Top Ten” states and peers we most often
compete against for jobs & investment.
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“Total business costs” include labor, taxes,
energy & state/local taxes.
1 Consists of 75% labor costs, 15% energy, 10% state/local taxes
2 States with the same score received the same rank
3 “Top Ten” states for job and economic growth: KS, MD, MT, NE, ND, SD, TX, VA, WA, WY
SOURCE: North American Business Cost Review; Moody's Economy.com
Business Taxes Higher Than Competitors
Tax Climate Improving, But Worse Than Competitors:
New corporate income tax expected to improve
Michigan to 22nd best ranking.
Property taxes still high due to personal
property tax — a tax not assessed by most
states Michigan competes with.
UI taxes expected to increase to repay federal debt.
1. Includes both real and personal property tax in Michigan
2. Rankings do not reflect recent changes to Michigan Unemployment Insurance
requirements or changes made to Michigan’s corporate and individual income taxes
SOURCE: 2011 BLM Benchmarking Report
Complex Regulatory Climate
Michigan Regulatory Climate Ranked #43:
Regulatory requirements in Michigan are often
greater than those of other states and the
compliance process can be more difficult due
to the multiplicity of jurisdictions and ease of
doing business.
SOURCE: Pacific Research
Less Educated Workforce
Education Attainment Less Than
Top Ten States:
Michigan is competitive in the amount of talent
it produces, ranking 21st in the number of total
college degrees conferred per capita, but
Michigan only ranks 31st in the percent of the
population over age 25 with a bachelor’s
degree or above.
SOURCE: NCHEMS
Infrastructure Impedes Global Competitiveness:
The quality and capacity of Michigan’s physical
infrastructure limits the state’s ability to leverage a
strong geographic location to increase exports and
expand foreign direct investment in a global
economy.
1. BTS, 2. aapa-ports.org, 3. FAA.com, 4. NTIA,
5. Reason Foundation (Comb. Rural/urban), 6. Detroit Regional Chamber
MICHIGAN’S COMPETITIVE POSITION
Poor Infrastructure
Less Attractive Urban Centers
Michigan Cities Rank Low On Urban Vitality:
Michigan cities generally rank low on most
“best cities to work, live or grow a business”
lists.
Low rankings reflect a combination of fact and
perception-based issues that detract from
Michigan’s image.
Michigan must accelerate efforts to strengthen its cost/value equation
in the face of escalating global competition
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Global Competition Escalating
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Michigan Competes in a Global Economy:
The fastest economic growth is expected
to continue to occur in emerging
global markets.
Michigan’s ability to accelerate
economic growth is tied to the state’s
ability to compete in the global
economy.
SOURCE: The Conference Board
PROGRESS
Michigan’s economic turnaround has begun, but it is at an early stage.
Lower Unemployment
Michigan Has 2nd Best Recovery of
Any State:
Michigan’s unemployment rate dropped
more than any other state, except
Nevada, over the past year.
This improvement was nearly three times
faster than the national recovery.
SOURCE: BLS Seasonally Adjusted November Unemployment Rate
Higher Gross Domestic Product (GSP)
2010 – Above Average Increase in GDP:
The increase put Michigan above the national
average for GDP growth for the first time in a
decade.
The increase was largely due to economic
recovery in the automotive and manufacturing
sectors.
SOURCE: 2011 BLM Benchmarking Report
1 “Top Ten” states for job and economic growth: KS, MD, MT, NE, ND, SD, TN, TX, WA, WY
PROGRESS
Michigan GDP increased at a faster rate than
most peer states and nearly as fast as “Top Ten”
states in 2010.
Higher Per Capita Income
2010 - 7th Best Increase in Income:
Michigan’s per capita personal income increased by
nearly 4% in 2010 which increased the state’s
ranking from 39th to 38th.
The increase was nearly one and
a half times the national average.
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SOURCE: U.S. Bureau of Economic Analysis
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2012 MICHIGAN TURNAROUND PLAN OVERVIEW
The goal is getting Michigan to become a “Top Ten” state for job, economic and personal
income growth through a plan based on facts.
The Goal
“Top Ten” State for Job &
Economic Growth =
Higher Personal Income for
Michigan Residents
Top ten states generally
have several common
characteristics that sustain
healthy economic growth.
2012 MICHIGAN TURNAROUND PLAN OVERVIEW
Characteristics of Top Ten States
Potential Results of Growing
Like a Top Ten State
1. Based on Michigan accelerating per capita
income growth to match the rate of #10 state
Mississippi whose rate was 44%.
2. Employment growth is accelerated to match
the rate of Hawaii which accelerated at 6.4%.
Sources: US Bureau of Economic Analysis and BLS
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The Six Step Michigan Turnaround Plan
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Step 1:
Responsibly Manage Finances
A scorecard of five key metrics developed by
Business Leaders for Michigan to assess the
overall condition of state and local finances.
All show positive trends in 2011, but operating
reserves, pension obligations and overall debt
levels continue to need further attention.
*Arrows indicate positive or negative trends
Colors indicate whether the metric has been fully achieved
ORIGINAL MTP GOALS
AND RECENT PROGRESS
WHERE WE STAND
2012 MTP GOALS
3 Public-private revenue estimating
council to improve forecasting
• 19 states adopt biennial budgets¹
• Set clear spending priorities
3 Quarterly survey of Michigan
businesses to improve forecasting
3 Multi-year financial & budget plans
to improve fiscal discipline
3 Citizen-friendly balance sheet to
improve transparency
3 No new programs unless others
eliminated or revenues grow
- Adopt a strategic plan setting
goals & expected outcomes
• Michigan, as a relatively poor
state, must set fiscal priorities
more than the average state
- Adopt performance-based
budgeting with ROI
measures
• Increasing Michigan’s bond rating
from AA- to AAA would save
interest costs
• State borrowing has increased
over three times the growth of
personal income in the past
twenty years and now exceeds
annual state revenues³
• Strategic plan to set priorities
• Require fiscal notes to identify
compliance and other costs
3 = Accomplished or significant progress
• = Not accomplished
¹ NCSL
² Pew Center for the States
³ 2011 Citizen’s Guide to MI Fiscal Health
• State unfunded pension liabilities
exceed $18B³
• Michigan’s unemployment
insurance debt was retired
through an innovative bond
issuance.
• “Price” the cost to comply
with proposed legislation
- Adopt fiscal notes for all
legislation
• Memorialize sound fiscal
management practices in
legislation or policy
(e.g., timely adoption of a
structurally-balanced budget,
two-year budget plan, citizenfriendly balance sheet)
• Reduce debt levels to
achieve AAA bond rating
2012 MICHIGAN TURNAROUND PLAN OVERVIEW
3 Zero-based budgeting or other
system to increase results
• Revenue estimates are more
volatile in changing economy²
Step 2:
Efficiently & Effectively
Provide Public Services
Significant progress has been made to reduce
the cost of government in Michigan.
But more work is needed to reduce costs and
increase productivity to improve the state’s
competitiveness and reflect its relatively low per
capita income.
ALEC (NAEP SCORES), 2. McKinsey,
3. Anderson Economic Group, 4. U.S. Census
Efficiently & Effectively Provide State Services
ORIGINAL MTP GOALS
AND RECENT PROGRESS
WHERE WE STAND
3 Reduce state workforce
• Average total compensation for
state employees was $22,000
more than the private sector
average in Michigan in 2010¹
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3 Enact corrections management &
sentencing reforms
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3 Reduce optional services that
exceed federal standards
3 Eliminate state programs that
duplicate or overlap federal
standards
3 Benchmark and increase state
employee health care premium
contributions to the average of
U.S. state employees or all
Michigan employees
• Benchmark and freeze pay for
state employees to the U.S.
average for state employees
3 = Accomplished or significant progress
• = Not accomplished
• Michigan state employees total
compensation is 14% above
the U.S. median state and 22%
above Indiana²
• Michigan’s incarceration rate is
51% higher and our prisoners stay
48% longer than the Great Lakes
average. Michigan spends 30%
more to house prisoners than
Ohio and 80% more than Texas²
• Government productivity gains in
the U.S. have under-performed
most other sectors for twenty
years3
¹ BEA Comp. of Employees by NAICS
² U.S. Census
3
McKinsey
2012 MTP GOALS
• Improve the cost and productivity
of the state workforce
- Adopt a total compensation
system that enables the state to
compete for talent in highly
competitive fields and rewards
performance at a cost
comparable to the average state
• Reduce corrections costs to
the Great Lakes average
• Improve the efficiency of state
government
- Invest in programs that have a
proven track-record of reducing
long-term costs (e.g., prisoner
re-entry, home health care)
- Adopt best practices to provide
self-directed citizen & business
transactions through the use of
technology
Efficiently & Effectively Provide School Services
ORIGINAL MTP GOALS
AND RECENT PROGRESS
WHERE WE STAND
3 Benchmark and increase public
school employee health care
premium contributions to the
average of U.S. state employees
for all Michigan employees
• Michigan student test scores
rank at (8th grade reading =
32nd) or below (8th grade math
= 37th) the national average
while per capita spending ranks
above average (8th)1
3 Provide incentives for local district
cost-sharing
3 Retain demanding graduating
standards
3 Allow an unlimited number of
charter schools, especially in
under-performing districts
• Fully transition teachers to a
defined contribution retirement
system
• Average annual salary costs for
public school teachers was
$3,370 more (6% higher) than
the average of U.S. public school
teachers in 20092
• Michigan has more than 500
school districts – 6th highest in
the U.S.3
• The education sector’s
productivity has declined for 20
years in the U.S.4
2012 MTP GOALS
• Improve the return on investment
from the 0-12 education system
- Accelerate the consolidation of
schools where appropriate and the
sharing of school services to direct
more resources to student learning
- Fully transition teachers to a defined
contribution retirement system
- Provide access to quality early
childhood education
- Maintain rigorous standards in
reading, math and science
- Maximize the time students
spend on academic learning
- Attract, train and retain
excellent teachers
- Attract and train excellent
school leaders
- Improve the collection and
use of data
3 = Accomplished or significant progress
• = Not accomplished
¹ NAEP & AEG analysis
² National Education Association
3
U.S. Census
4
McKinsey
2012 MICHIGAN TURNAROUND PLAN OVERVIEW
- Measure and reward schools,
teachers and school leaders
that perform at a high level
Efficiently & Effectively Provide Local Services
ORIGINAL MTP GOALS
AND RECENT PROGRESS
WHERE WE STAND
3 Encourage & enable local
government service sharing
• Michigan has 2,800 units of local
government – 12th highest in the
U.S.¹
Advocate state government enable
improvements in local service
delivery by:
• Michigan ranks among the top ten
states in the number of elected
officials with over 17,000¹
• Providing incentives &
disincentives in all state programs
that recognize local service
sharing
3 Modify or eliminate binding
arbitration for municipal police &
fire workers
• Adopt best management practices
3 Align local employee benefits to
average of all Michigan employees
• Adopt competitive tax & regulatory
standards
• Local government boundaries
don’t align with regional
economies
• State and federal program
boundaries don’t align with
regional economies (e.g., Michigan
has 25 workforce development,
17 adult education, 14 planning
and 19 arts regions none of
which align with each other)²
• Accelerating efforts to consolidate
local administrative services and
increase regional service delivery
Advocate local governments adopt
best practices and “fix the basics”
by ensuring:
• Competitive tax & regulatory
standards
MICHIGAN TURNAROUND PLAN
• Strong ethics standards
• Effective public safety
• Results-oriented redevelopment
strategies
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• Cost-effective, reliable basic
services
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• Aligning federal & state program
boundaries with regional
economies
• Sound fiscal management
practices
• Professional communications
that improve perceptions
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2012 MTP GOALS
• Support for regional solutions
3 = Accomplished or significant progress
• = Not accomplished
¹ U.S. Census
² WMSA
Step 3:
Create a Competitive Business Climate
Companies compare the “total cost of doing
business” against a region’s assets when
evaluating site location decisions.
Michigan ranks average to below average on most
site location factors.
State assets fail to offset our higher cost structure.
SOURCE: 2011 BLM Benchmarking Report
ORIGINAL MTP GOALS
AND RECENT PROGRESS
WHERE WE STAND
3 Reform the Michigan Business Tax
to make Michigan more competitive
• Michigan’s corporate tax burden is
projected to rank 22nd, up from 48th,
with the new corporate income tax¹
• Benchmark Michigan’s business
costs to Top Ten states
• Michigan’s overall property tax
burden ranks 32nd2
• Create a responsive,
collaborative regulatory system
3 Create a regulatory report card
3 Require regulations to demonstrate
cost/benefit analysis
3 Annually benchmark Michigan’s
competitiveness
3 Reform UI system
• Prohibit state regulations that
exceed federal standards
• Top site location factors include
total costs, workforce skills, taxes,
transportation infrastructure, utility
costs & infrastructure, regulatory
environment, economic
development effort & incentives,
and innovation resources2
• Michigan has many barriers precluding
a cohesive culture toward business,
such as having the 12th highest
number of governmental units3
• Michigan’s business climate image
ranks 48th2 and is impacted by the
above conditions
• Michigan ranks in the 3rd quartile
for the availability of risk capital4
3 = Accomplished or significant progress
• = Not accomplished
¹ Tax Foundation
² BLM Benchmarking Report
³ U.S. Census
4
State Science and Technology Index (2010)
- Eliminate the personal property tax
- Deliver responsive customer
service
- Align Michigan’s regulatory
requirements with national
standards
- Require regulations to
demonstrate cost/benefit analysis
• Provide a seamless, one-stop
process for business growth
- Align state & local site
development & business
regulations
- Create a modern, cost-effective
incentives program
• Strengthen Michigan’s
workforce
- Foster a frictionless workforce
environment
- Match education & training
supply with workforce demand
- Retain & attract skilled
immigrant, mid-career & young
talent
• Increase capital availability
2012 MICHIGAN TURNAROUND PLAN OVERVIEW
• Eliminate the personal property tax
• Michigan’s UI tax burden ranks 45th2
2012 MTP GOALS
Step 4:
Strategically Invest for Future
Growth (Higher Education)
60% of Michigan workers will need
Associate’s degree equivalent or more
by 2025.
Michigan will not meet that need if current
trends continue without significant new
investments and approaches to higher
education.
SOURCE: Lumina Foundation
ORIGINAL MTP GOALS
AND RECENT PROGRESS
• Make Michigan a Top Ten state for
higher education funding
• Rationalize the management of 28
community colleges & 15
university campuses to realize
greater administrative efficiency
WHERE WE STAND
• 62% of Michigan jobs by 2018
will require post-secondary
education – 39% of Michigan’s
current workforce has postsecondary education¹
• Michigan ranks 31st in postsecondary attainment²
MICHIGAN TURNAROUND PLAN
• Michigan ranks 39th in higher
education state support per
student³
2012
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• College affordability in Michigan
is low — Michigan has the 10th
highest tuition rate in the
nation²,³
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• Higher education needs to
increase degree productivity by
23% on average to meet future
job requirements⁴
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3 = Accomplished or significant progress
• = Not accomplished
¹ Center on Education & the Workforce
² NCHEMS
³ SHEEO
⁴ McKinsey
2012 MTP GOALS
• Increase the percent of the
Michigan workforce with
post-HS education:
- By 2022, fund Michigan’s
universities at a level
comparable to Top Ten states
if they meet, exceed or are
progressing toward
performance metrics
- Adopt outcome-based
performance metrics to fund
higher education that address
quality, productivity and
efficiency, affordability and
access, and economic impact
- Publish an on-line
performance dashboard
- Grow universities’ contribution
to Michigan’s economy and
grow our talent pool by:
• Increasing out-of-state
enrollment to at least the
average of peers without
reducing access for
in-state students
• Establishing an international
tuition rate similar to other
nations
- Increase public awareness of
the benefits of higher education
Step 4:
Strategically Invest for Future Growth
(Infrastructure)
Strategic investments could leverage Michigan’s
unique geographic location to accelerate job growth.
Growth in the logistics sector and development of
the Detroit Region Aerotropolis could create as
many as 180,000 new jobs.1
1. McKinsey Analysis
ORIGINAL MTP GOALS
AND RECENT PROGRESS
WHERE WE STAND
3 Advocate for incentives and provide
support for the Detroit Region
Aerotropolis
• Michigan ranks #38 in the U.S.
in urban interstate highway
condition & #47 in urban
congestion¹
• Adopt new funding formulas to
support a Top Ten transportation
infrastructure
• State & local highway spending
in Michigan ranks #48 in the
U.S. per capita²
• Michigan has the 38th busiest air
cargo airport in the U.S. (Detroit
Metro)4
• Detroit is the busiest land border
crossing in the U.S.³
3 = Accomplished or significant progress
• = Not accomplished
¹ Reason Foundation
² FHWA
³ Detroit Regional Chamber
4
FAA.gov
• Connect Michigan with the global
economy through strategic
investments in infrastructure
- Build the New International Trade
Crossing
- Expand international rail freight
access
- Develop the Aerotropolis
- Develop an inter-modal freight
facility
- Increase bandwidth capacity and
access
- Fund investments that improve
Michigan’s highway system to
Top Ten quality
2012 MICHIGAN TURNAROUND PLAN OVERVIEW
• Michigan has the 15th busiest
airport in the U.S. (Detroit Metro)4
2012 MTP GOALS
Step 5:
Accelerate the Economic
Growth of Cities & Metros
Just as in the nation as a whole, Michigan
metros disproportionately drive the
economy.
Accelerating the growth of metros is the
best way to accelerate the growth of both
the state as well as the cities that are
located within them.
*Ann Arbor, Battle Creek, Bay City, Flint, Holland, Jackson, Kalamazoo, Lansing, Monroe, Muskegon, Niles, Saginaw
SOURCE: Brookings, “Michigan’s Urban & Metropolitan Strategy”
ORIGINAL MTP GOALS
AND RECENT PROGRESS
3 Develop an urban agenda to
revitalize central cities
WHERE WE STAND
• From 1980-2009:¹
- 2 of 14 Michigan metros
exceeded the U.S. average for
economic output
MICHIGAN TURNAROUND PLAN
I
2012
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BUSINESS LEADERS FOR MICHIGAN
PAGES
I
• Accelerate the redevelopment
of Michigan’s largest cities &
metros with special emphasis
on Detroit:
- 2 of 14 Michigan metros
performed better than their
peers on economic growth
- Support regional strategies
designed to strengthen the link
between innovation and
manufacturing to increase
exports and attract global
investments
• Michigan metros are more
productive, export-oriented and
talent-rich than the average U.S.
metros¹
- Support strong regional systems
to train existing workers and
welcome new ones to fuel
economic growth
• Michigan metros have many
strengths to accelerate economic
growth:¹
- Make targeted investments that
leverage distinct assets in urban
and metropolitan areas to
transform regional economies
- 3 of 14 Michigan metros
exceeded the U.S. average for
job growth
23 24
2012 MTP GOALS
- Drive 85% of the state’s exports
3 = Accomplished or significant progress
• = Not accomplished
- Home to 90% of science and
engineering employment
¹ SOURCE: Brookings, “Michigan’s Urban &
Metropolitan Strategy”
- Home to 85% of population with
post-secondary degree
• Support metros’ efforts to
improve delivery of basic
public services (see Step 2)
Step 6:
Leverage Assets to Grow the
New Michigan
Steps 1 through 5 of the Michigan Turnaround
Plan lay the foundation for building a strong
economy. Step 6 identifies the state’s most
significant existing assets that can be
leveraged to accelerate growth and become a
Top Ten state for job, economic and personal
income growth.
ORIGINAL MTP GOALS
AND RECENT PROGRESS
WHERE WE STAND
3 Support job growth in all sectors
• Michigan must dramatically
accelerate performance to
achieve Top Ten job, economic
and personal income growth
3 Grow the entrepreneurial
infrastructure
3 Develop strategies to grow broad
business sectors that leverage key
assets
• Actions taken through Steps 1-5
of the Michigan Turnaround Plan
lay the foundation for Michigan
to accelerate growth
- Global Engineering Village
• Michigan lacks a consistent,
long-term strategy to leverage
key assets that transcend
election cycles
- Global Center for Mobility
• The link between
entrepreneurship, innovation and
manufacturing will be a major
driver of future growth
3 = Accomplished or significant progress
• = Not accomplished
• Champion strategies that leverage
Michigan’s unique assets to
accelerate long-term economic
growth:
• The nation and world are largely
unaware of the progress
Michigan has taken to rebuild its
economy
- Gateway to the Midwest
- Higher Education Marketplace
- Natural Resource Economy
- Life Sciences Hub
• Build support among key
stakeholders for growth
strategies that transcend election
cycles
• Support a strong foundation of
entrepreneurship, innovation and
manufacturing
• Raise awareness of progress
being made toward building a
New Michigan
2012 MICHIGAN TURNAROUND PLAN OVERVIEW
3 Strengthen university-business
collaboration
2012 MTP GOALS
Step 6:
Leverage Assets to Grow the New Michigan
Laying the foundation for building a New Michigan
1
2
3
4
5
6
Responsibly
Effectively &
Create a
Strategically
Accelerate
Leverage
Manage
Efficiently
Competitive
Invest for
the Economic
Assets to Grow
Finances
Provide Public
Business
Future
Growth of
the New
Services
Climate
Growth
Cities & Metros
Michigan
• Set clear spending
priorities
• “Price” the cost to
comply with
proposed
legislation
fiscal management
practices in
legislation or policy
• Reduce debt levels
• Benchmark
• Increase the
• Accelerate the
Michigan’s business
percentage of
redevelopment of
that leverage
state workforce
costs to Top Ten
the Michigan
Michigan’s largest
Michigan’s unique
states
workforce with
cities & metros
assets to accelerate
post-HS education
with special
long-term economic
emphasis on
growth
• Reduce corrections
cost to the Great
Lakes average
• Improve the
efficiency of state
government
• Improve return on
investment from the
• Create a responsive,
collaborative
regulatory system
• Provide a seamless,
one-stop process for
business growth
• Strengthen
to achieve AAA
0-12 education
Michigan’s
bond rating
system
workforce
• Advocate state
2012
government enable
• Increase capital
• Connect Michigan
with the global
economy through
Detroit
• Improve delivery of
I
availability
• Build support among
key stakeholders for
strategic
local services by
growth strategies
investments in
advocating state
that transcend
infrastructure
government enable
political terms
improvements and
local government
adopt best
practices and “fix
the basics”
• Support a strong
foundation of
entrepreneurism,
innovation and
manufacturing
improvements in
I
BUSINESS LEADERS FOR MICHIGAN
PAGES
25 26
• Champion strategies
productivity of the
I
MICHIGAN TURNAROUND PLAN
• Memorialize sound
• Improve the cost &
local service delivery
• Raise awareness
of progress being
• Advocate local
governments adopt
best practices and
“fix the basics”
made toward
building a
New Michigan
newmichigan
Assets:
HIGHER EDUCATION
SYSTEM
NATURAL
RESOURCES
AUTOMOTIVE
INDUSTRY
HEALTH & MEDICAL
EXPERTISE
Global
Engineering
Village
Gateway
to the
Midwest
Higher
Education
Marketplace
Natural
Resources
Economy
Global
Center of
Mobility
Life
Sciences
Hub
Brand the
engineering
sector
•
Grow engineering
education
capacity
•
Grow
engineering
firms
Consolidate
logistics base into
Michigan
•
Scale the
Aerotropolis
•
Invest in strategic
trade-related
infrastructure
(e.g., bridge,
tunnel, rail)
Strengthen quality,
affordability,
productivity &
economic impact
•
Grow university
enrollment
•
Grow industry &
university
funded R&D
•
Grow commercialization of R&D
Grow agricultural
processing and
exports
•
Grow leisure
tourism
•
Lead in alternative
energy
technologies
Lead in
sustainable mobility
•
Lead in multimodal systems
•
Lead in vehicle/
infrastructure
technology to
improve road safety
•
Grow the auto
industry
Create a
Hub for
bio-pharmaceutical
R&D
•
Become the Center
for research,
testing &
medical labs
•
Grow medical
tourism
Potential ways to leverage the assets:
GEOGRAPHIC
LOCATION
Strong base of entrepreneurism, innovation and manufacturing
2012 MICHIGAN TURNAROUND PLAN OVERVIEW
ENGINEERING
TALENT
Opportunities:
Distinctive Michigan assets that can grow a New Michigan
Where We Should Be
If Michigan had grown like a Top Ten state since 2000, we would have…
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SOURCE: AEG Analysis of BEA & BLS Data
PAGES
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Where We Could Be
Michigan can once again be a “Top Ten” state for job,
economic and personal income growth.
The first five steps of the Michigan Turnaround Plan allow us to undertake an important 6th step —
leveraging Michigan’s unique assets to grow the New Michigan.
If we capitalize on our most significant existing assets, we have the potential to increase our
current growth projections by as much as 40 percent by 2020. We can also add up to
half a million jobs and grow the personal income of each Michigan resident by as
much as $18,000 during the same time period.
Turn this booklet around to see what the New Michigan can look like.
newmich
igan
Distinctive Mi
chigan assets
that can gro
w a New Mi
chigan
LAYING THE FOUNDATION TO BUILD A NEW MICHIGAN
newmichigan
Distinctive Michigan assets that can grow a New Michigan
Note: You are starting at Step 6 of the Michigan Turnaround Plan.
2
Letter from the Chairman and CEO
3
Executive Summary
5
Developing The New Michigan
9
A New Michigan: One Vision, Six Opportunities
BUSINESS LEADERS FOR MICHIGAN
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Flip the book to read about the first five steps.
PAGES
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11
Global Engineering Village
13
Gateway to the Midwest
15
Higher Education Marketplace
17
Natural Resources Economy
19
Global Center of Mobility
11
Life Sciences Hub
23
Conclusion
25
Business Leaders for Michigan Board of Directors
The people of Michigan have been struggling with challenging economic conditions for some
time. We are the only state in the union to have lost population during the 21st century and one
of the few to have experienced negative economic growth. Those who remain here struggle with
slower than average job and personal income growth.
These challenges have acted as a unifying, motivating force for change. Business Leaders for
Michigan is collectively and singularly dedicated to turning Michigan’s circumstances around by
capitalizing on the existing natural and human resources we possess, including:
• A strong research and development hub, co-located with the manufacturing facilities
necessary to produce what we invent;
• An exceptional talent pool, including researchers, engineers, and technically-trained workers; and
• A unique geographic location that is rich with natural resources and the logistical access
necessary to bring goods to market worldwide.
Business Leaders for Michigan believes that by leveraging these and other assets, Michigan can
fully take advantage of the solid economic foundation laid by the first five steps of the Michigan
Turnaround Plan to accelerate economic growth. We call this a “New Michigan” strategy and it
identifies six areas, each of which promises tremendous opportunities for success. Taken
together with the first five steps of the Michigan Turnaround Plan, this “New Michigan” strategy
can propel Michigan into becoming a Top Ten state for economic, job and personal income growth.
Specifically, we forecast that Michigan has the potential to increase our current growth projections
by as much as 40 percent by 2020. We can also add up to half a million jobs and grow the personal
income of each Michigan resident by as much as $18,000 during the same time period.
Our plans are thoroughly researched, and — most important of all — they are attainable. We are in
particular indebted to McKinsey & Company for their invaluable research assistance in preparing this
document. By working together, we can right Michigan’s economic ship and realize our full potential.
Let us show you what Michigan can become — and how together we can make it happen.
Sincerely,
James B. Nicholson
Chair of the Board
Doug Rothwell
President & CEO
Executive Summary
In 2009, Business Leaders for Michigan (BLM) unveiled
the Michigan Turnaround Plan, an aggressive agenda to
make Michigan a Top Ten State for job and economic
growth.
The Plan included five steps for a better Michigan:
• Changing the way we manage our finances
• Right-sizing and enacting structural budget reforms
• Getting Michigan competitive to attract and retain
jobs
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• Making investments that create a great job
environment
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the “New Michigan” economy. Within this objective, we
built a series of opportunities/drivers, each of which:
• Has the potential to move Michigan to top 10
performance on output metrics including GDP
growth, unemployment rate, and GDP per capita
• Generates excitement among stakeholders,
government, and the Michigan population at large
through development of opportunities which:
- Leverage unique Michigan strengths
- Are compelling and “fit” what Michigan is
- Are powerful game changers if executed properly
• Accelerating job growth through innovation and
entrepreneurship
• Is informed, but not constrained, by global megatrends
We have worked closely with government, civic and
business leaders to effect meaningful advancement of
each Michigan Turnaround Plan objective. Citizens and
stakeholders have rallied around the plan, many
components of which are now in place. We are
encouraged that significant progress is being made in
laying the building blocks for a more durable future.
• Includes tangible near-term actions which
demonstrate early commitment and show traction
against the new vision
Now that our foundation is more solid, it is time to add
a sixth step to the Plan – the identification of drivers
and strategies that would allow us to begin
transitioning to the “New Michigan” we wish to see.
This will require our state to have a shared vision for
the future, one that enables us to prioritize the use of
limited resources and sustains efforts beyond election
cycles.
The objective of this sixth step of the Michigan
Turnaround Plan is to provide a ten year vision for growing
To support our thinking, we gathered an array of input —
from BLM members, policy leaders, economic analysts,
and others — and collected a wealth of data to support
sound thinking about what Michigan can become. We
evaluated case studies and turnaround models from
similarly situated economies across the globe, to learn
how we might make their success stories our own.
McKinsey & Company played a significant role in this
effort.
This work identified six distinctive assets that can help
Michigan dramatically accelerate growth if we focus
our efforts and resources. Each of these opportunities
is grounded in careful, fact-based analysis and
accounts for available resources, markets, and expertise.
The six assets we believe have the greatest potential to
accelerate Michigan’s growth are the following:
• Grow and brand our industrial, production and
talent capacity to develop a reputation as a
Global Engineering Village
• Capitalize on our strategic location and
available resources to become the premier
Gateway to the Midwest
• Invest in a Higher Education Marketplace that
boosts the state’s talent base and leverages its
innovative strengths
• Take advantage of Michigan’s natural resources to
grow a Natural Resource Economy, that
sustainably drives exports
• Amplify our automotive and manufacturing expertise
to become a Global Center of Mobility
• Develop a Life Sciences Hub based on our robust
health, medical and bio-pharmaceutical capabilities
While there are other areas for growth beyond these six
opportunities, we believe these are best positioned to
deliver significant results. They offer the best
opportunities for growing good paying jobs and changing
Michigan’s economy in ways that are meaningful and
lasting for the people of our great state.
EXECUTIVE SUMMARY
Developing The New Michigan
Challenges and opportunities for driving growth
Michigan’s legacy as the powerhouse of
American industry has suffered significantly
over the last decade or so. Michigan’s economy has
shrunk. The state has created fewer jobs than any other state
since 2000, and per capita income fell to the bottom quartile
of all states. We are the only state in the union to have lost
population in the 21st century.
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Yet Michigan retains valuable natural and human assets that provide an unprecedented
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opportunity for a fundamental turnaround. Building on recent policy changes consistent
with the proposals outlined in the Michigan Turnaround Plan, now is the time to leverage
these assets to accelerate growth. We have a talented labor pool and strong flow of
university graduates eager for new work, underutilized facilities primed for new activity,
and a strong tradition of innovation and entrepreneurism ready to drive renewal. The
conditions at hand, in fact, offer us both the motivation and the means to craft a future
that puts Michigan at the center of trends that will shape the economic development of
our world in the decades to come.
What follows is a strategy to leverage the environment
created by the first five steps of the Michigan
Turnaround Plan. It is a framework to launch our state
on a new path in the next 10 years by focusing on
concrete opportunities in six specific areas. These
opportunities already have foundations in place upon
which to build. Focusing our limited resources, time
and energy on these unique assets can make Michigan
one of the ten fastest growing states in the U.S., bring
our unemployment rate down below the national
average, and push personal income to new levels. Our
plan is no recital of blue-sky aspirations. It is grounded
in a sober analysis of Michigan’s specific assets and
how to make them count for more in a rapidly changing
world economy as well as leveraging external
perspectives on the major economic trends shaping the
decade ahead. That said, we invite dialogue with all
stakeholders and citizens of Michigan to further shape
this renewal and growth strategy for Michigan.
Strengths to build on
Michigan has three overarching strengths it can build
on to accelerate economic growth and reassert its
leadership in the world.
• A hub of innovation and production
• People who translate ideas into solutions
• A location with abundant natural resources that can
serve the world
A hub of innovation and production
DEVELOPING THE NEW MICHIGAN
Most experts recognize that the developed nations of
the world will have to innovate their way to future
growth by producing goods and services that increase
exports and attract foreign direct investment. But it is
becoming increasingly clear that our ability to innovate
is tied to our capacity to produce the products we are
trying to improve or invent, and to nurture the talent
that drives product development. Whether it is the
next-generation automobile or a new software
application, design and development need to occur in
close proximity to one other to realize the greatest
impact on a region’s economic growth. And this is
precisely Michigan’s strategic advantage for the future –
the co-location of strong innovation and manufacturing
assets.
Many of our strengths have their genesis, not
surprisingly, in our manufacturing heritage and the
automotive industry. For more than a century, Michigan
has been the undisputed center of the 20th century's
most transformative industry. Our state still contributes
over a quarter of the output of the entire U.S. automotive
industry, more than twice as much as its nearest
competitor. But Michigan’s leadership in manufacturing
extends far beyond the automotive industry. The state is
also the home of the office furniture industry, the world’s
largest chemical company and some of the world’s
largest food manufacturers.
Co-located with that strong manufacturing base is one of
the nation’s largest concentrations of research and
development. Our state is a hub of invention, ranking
fourth nationally in industry-sponsored R&D. It’s no
accident that the proportion of graduates in scientific,
technical, engineering and medical disciplines is 18
percent higher in Michigan universities than it is in the
U.S. at large. Our research universities rank sixth in the
nation in terms of R&D expenditure per student. That
educational edge surely contributes to the fact that
Michigan is able to generate a high level of innovation
even in the current industrial scenario: per capita, the
state registers 20 percent more patents than the U.S.
average. And by broadening our industrial base along the
lines we propose, we can turn that proclivity for innovation
into a far more efficient engine for economic growth by
focusing on both adjacent market opportunities and
strengthening our position in market areas where we
already occupy a strong leadership position.
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People who translate ideas into solutions
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The co-location of innovation and production has let
Michigan develop a talent base that is exceptionally
skilled at translating ideas into practical goods and
services. Our state has deep competencies in fields like
design, safety, and supply-chain management that are
fundamental to taking an idea from the laboratory to the
customer’s home or business at an affordable cost.
Expertise, not just ideas, is increasingly what drives
growth. And we have an expertise in the discipline that
will be at the center of driving future productivity gains –
engineering. Michigan has more engineers per capita
than any place else in America, and that expertise cuts
across all functional disciplines, not just in the
automotive industry, but also in fields like natural
resources and logistics.
Michigan’s talent pool extends beyond the researchers
that create the ideas and the engineers that innovate
practical ways to apply them. We also have one of the
nation’s greatest concentrations of technically-trained
workers, who can translate these innovations into
everyday products and solutions. Our expertise in the
medical and health arena is also important as growth
in the healthcare and the related medical services is
far outstripping that of the economy as a whole.
Michigan’s unique combination of research,
engineering and technical talent gives it the foundation
to solve many of the world’s great challenges.
A location with abundant natural resources
that can serve the world
Our state still has sizable potential to gain from the rich
store of natural resources on its territory, too. More and
more demand for resources is outstripping supply.
Places in the world that have these resources will be in
a position to accelerate their economies if they find
sustainable ways to utilize them. Michigan can be one
of those places. With the world’s greatest source of
pure freshwater, a large supply of precious minerals,
large deposits of shale oil and expertise in alternative
energy solutions, Michigan can support the growth of
innovation and manufacturing like few other places.
Our natural resources also give us the ability to grow
our tourism industry so that it better parallels trends in
the broader marketplace. Our agricultural know-how
can help us fulfill another of the world’s growing needs:
food production. Our farming traditions married to our
engineering expertise can help us seize advantages in
the rapidly growing industry of precision and high-yield
agriculture.
DEVELOPING THE NEW MICHIGAN
Michigan’s geographic location and natural assets
bestow unique advantages for an economic
renaissance. Speed in delivering goods and services
will become increasingly important in a global
marketplace. For example, just-in-time delivery from
point of production to end-destination consumer will
grow exponentially, increasing the need for global
logistics solutions. Michigan provides the most direct
route to the largest American markets from new and
expanded Canadian deep water ports — the cheapest
and most carbon-efficient conduit for bulk trade to and
from Europe, the Middle East and Africa. Detroit also
has co-located passenger hub and cargo airports with
the fifth-largest runway capacity in the U.S. and one of
the shortest routes to Asian growth markets. That
capacity is underutilized now, and can be further
expanded to make Michigan the primary gateway to
the Midwest. When combined with the state’s high
penetration by the interstate highway system and
service from four of the six major national railroad
networks, Michigan is well positioned to deliver and
distribute the goods and services it produces.
A NEW MICHIGAN:
ONE VISION, SIX OPPORTUNITIES
In this document, we lay out how Michigan’s fundamental
assets — described on the following page — can be
leveraged to accelerate economic growth by seizing
upon six high-potential growth opportunities. Like the
rest of the Michigan Turnaround Plan, these opportunities
were identified through extensive research and are
based on facts. They are the opportunities we found
would have the greatest impact in a ten year time period
to accelerate growth, but they do not represent an
exhaustive list. They merely constitute some of the best
possibilities. We outline how these opportunities might be
realized in the sections that follow, and provide more
details at businessleadersformichigan.com.
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We also identify how leveraging these six opportunities
might impact our job, economic and personal income
If all six opportunities
were fully realized,
Michigan could increase
per capita annual
income by as much as
$18,000 by 2020 and
add as many as half a
million new jobs.
Source: AEG analysis, US Census, Statistiska Centralbyra (SCB),
BLM higher education economic impact analysis, MGI
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growth. For example, if all six opportunities were fully
realized, based on current economic models, Michigan
could outpace our current growth projections by as much
as 40 percent and increase the per capita annual income
of our residents by as much as $18,000 by 2020. These
changes would vault our state into the top of the class in
terms of growth and add as many as half a million new
jobs in that period. These projections can’t anticipate
how well Michigan will seize each opportunity or how
global economic conditions might change during the
next decade. But they do identify the economic potential
of these opportunities and their power in dramatically
reversing a decade’s long downward trend into a brighter
future in the decades beyond.
But no one is going to give us that growth; we have to
earn it. We have to recognize that we compete in a
global marketplace and embrace leadership, policies and
attitudes that accelerate growth. We have to focus our
limited resources on building the infrastructure and
assets that will contribute most to growth. We have to
forge a sense of common purpose among government,
the private sector, and the institutions and organizations
that bolster our economic life. And we have to remain
vigilant so we recognize changing economic conditions
and seize new opportunities as they arise.
The all-important point is that new levels of growth are
eminently achievable for Michigan, but we can increase
the odds and accelerate the pace of achievement if we
take advantage of some unique opportunities. It can be
done, and here are six ways to make it happen.
newmichigan
Assets:
GEOGRAPHIC
LOCATION
HIGHER EDUCATION
SYSTEM
NATURAL
RESOURCES
AUTOMOTIVE
INDUSTRY
HEALTH & MEDICAL
EXPERTISE
Global
Engineering
Village
Gateway
to the
Midwest
Higher
Education
Marketplace
Natural
Resources
Economy
Global
Center of
Mobility
Life
Sciences
Hub
Brand the
engineering
sector
•
Grow engineering
education
capacity
•
Grow
engineering
firms
Consolidate
logistics base into
Michigan
•
Scale the
Aerotropolis
•
Invest in strategic
trade-related
infrastructure
(e.g., bridge,
tunnel, rail)
Strengthen quality,
affordability,
productivity &
economic impact
•
Grow agricultural
processing and
exports
•
Grow leisure
tourism
•
Lead in alternative
energy
technologies
Lead in
sustainable mobility
•
Lead in multimodal systems
•
Lead in vehicle/
infrastructure
technology to
improve
road safety
•
Grow the auto
industry
Create a
Hub for
bio-pharmaceutical
R&D
•
Become the Center
for research,
testing &
medical labs
•
Grow medical
tourism
Potential ways to leverage the assets:
ENGINEERING
TALENT
Opportunities:
Distinctive Michigan assets that can grow a New Michigan
Grow university
enrollment
•
Grow industry &
university
funded R&D
•
Grow commercialization of R&D
Strong base of entrepreneurism, innovation and manufacturing
OPPORTUNITY
Global Engineering Village
The opportunity
Michigan’s competitive advantages
In years to come, engineering services are predicted to
grow at a rate that far outpaces that of the economy as a
whole. The market is especially promising for advanced
industries like aerospace, medical devices and precision
instruments. In these high-tech manufacturing fields,
innovative approaches to improving productivity through
engineering solutions are especially valuable.
For generations, industrial manufacturing, based on
engineered products and manufacturing processes was
the heart of Michigan’s economy, spawning the need for
thousands of engineers to help keep our factories
running. That legacy has left Michigan with more
engineers per capita than any state in the nation across
a range of disciplines. Michigan engineers have helped
the American manufacturing sector, and the automotive
industry in particular, achieve the highest rates of
productivity in the world. Those engineers will continue to
be needed to improve Michigan-based manufacturing,
but the state can realize new growth opportunities by
broadening its engineering base into a service industry.
While pure manufacturing is predicted to yield largely
historic growth rates in years to come, engineering
services, for example, are likely to grow at a rate of 3 to
5 percent a year. Michigan is ideally placed to get more
than its share of that growth, and should aspire to
become one of the top ten states in the country for both
engineering start-ups, the headquarters of established
engineering firms and mid-sized engineering-anchored
national and international manufacturing companies.
Manufacturing and engineering in advanced industries
and regulated industries presents a strong opportunity
for leveraging Michigan’s inherent capabilities. One
example would be to emulate Germany’s machinery and
tooling base.
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Michigan
has a strong
tradition of
engineering
expertise
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Michigan currently generates less than one 20th of
national revenues in engineering services; last year we
ranked 26th among the 50 states on the Milken
Institute’s Science and Technology Index, which
measures states’ technological capacities and ability to
turn them into high-tech jobs. We can do far better than
that if we channel our engineering expertise into new
areas that will pay off in more growth.
Potential Impact of Global Engineering Village
Michigan GDP growth per capita
How to build on those advantages
One industry especially conducive to such growth —
and especially suited to Michigan’s strengths —
is the military and defense industry, and especially its
aerospace component. The aircraft supplier market is
estimated to grow at an average annual rate of between
3.5 and 5 percent in coming years. Because this industry is
crucial to national defense, companies in it are generally
better protected from the whims of the marketplace,
through regulation and high barriers of entry. Volatility is
low and operating margins generally high.
6
4
2
$1.0 - $4.2
additional impact
.9
1.1
2.1
Michigan job growth
200
150
50
Top 5
Growth
Top 1
Growth
(9.5%)
(20.2%)
Thousands
45K - 117K
additional impact
188
116
88
71
2010
Baseline
Status Quo
0
(current
projected
growth)
Top 5
US Growth
Top 1
US Growth
(2.8%)
(7.9%)
2020 Projection Scenarios
Beyond increasing global recognition of Michigan’s
engineering capabilities through a distinctive branding
effort, Michigan can also expand efforts to help
engineers start-up new engineering firms and to attract
more engineering firms to consolidate operations into
Michigan. In addition, by expanding engineering
education programs at both universities and community
colleges, Michigan can increase the flow of engineering
talent and help ensure a long-term talent pipeline.
Michigan ranks
number 1 in the nation
in engineers per capita
A NEW MICHIGAN: ONE VISION, SIX OPPORTUNITIES
If we build on our automotive legacy to embrace cuttingedge approaches in nanotechnology, mechatronics and
electro-mechanics, we can turn Michigan into a global
village of engineering excellence and offer end-to-end
engineering solutions, including R&D in numerous areas
such as advanced machinery and tools and end-to-end
precision manufacturing applications for medical devices
and instruments.
5.3
0
100
Michigan has much to bring to these advanced and
regulated industries. It was here that manufacturing
process design made its greatest strides not just in the
20th century, but in the last decade as well. An
estimated 45 percent of all productivity gains in the
automotive industry over the last 15 years have come
from process improvements. Introducing real time
performance management, speeding up assembly lines,
and improving production planning have made a massive
difference to the automotive industry, and those best
practices are directly applicable to higher-margin
industries like aerospace and machinery.
$ Thousands
OPPORTUNITY
Gateway to the Midwest
The opportunity
Michigan’s competitive advantages
The emergence of the global marketplace has spurred
an exponential growth in the movement of goods and
people. According to the World Trade Organization,
international trade increased at an average annual rate
of 6.2 percent from 1950 to 2007, far faster than
economic output in general. Trade and travel rates are
slowly returning to those attained before the 2008-2009
recession. Longer-term forecasts suggest an upward
trend fed by the growth of just-in-time supply chain
management, manufacturer-to-consumer delivery and
global engagement of employee teams.
Half the population of the U.S. and Canada lives within
500 miles of Michigan. While Chicago has been
America’s traditional gateway to the vast market of the
Midwest, its hub airport is land-locked, its highways are
congested and its water port is too remote to
accommodate much additional growth.
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Michigan
has the
highest value
land portal
Whether accessed via road, rail, sea or air, Michigan has
powerful inherent advantages that make it an ideal
epicenter for trade between the Midwest and the rest of
the world. Already, 374,000 logistics jobs are located in
the state. Michigan has exemplary access to the
Interstate highway system and its Canadian counterpart,
and excellent rail links serviced by four of the nation’s six
main railroads. The Port of Detroit has water depths
capable of handling the deepest vessels which can
operate on the Great Lakes, and can add to the
Midwest’s freight route to Europe, the Middle East,
South America and Africa. Our two Detroit area airports,
Detroit Metro and Willow Run, give us the fifth largest
runway capacity in the U.S., and this capacity is currently
underutilized.
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Surrounded by undeveloped
land, DTW has the potential to be
the single largest hub in air travel
Potential Impact of Gateway to the Midwest
Michigan GDP growth per capita
How to build on those advantages
Together these conditions present an enormous
opportunity to transform Michigan into an integrated,
multi-vector freight hub. Just the Aerotropolis alone, the
aviation portion of this effort, is estimated to generate
60,000 new jobs and provide an impetus for more than
$10 billion in additional economic activity for the state.
But getting there requires a broad commitment to
building out and integrating an infrastructure network
that can support a global logistics hub.
By exploiting similar advantages of its deep-water port,
international border crossing and rail freight system,
Michigan can achieve the growth opportunity afforded by
the logistics industry. For example, the Port of Detroit
can become the key Great Lakes Freight Gateway.
Vacant land adjacent to the current port facilities could
become the site of more inland port infrastructures. The
Port of Detroit is already equipped to handle the world’s
biggest container ships, and currently receives the fifth
highest value of international trade of any U.S. port.
Similar opportunities abound if a new international trade
crossing is built and a multi-modal rail freight center is
developed.
$.6K - $1.2K
additional impact
2
2.7
1
0
0.9
1.5
Michigan job growth
300
200
2.1
Top 3
Growth
Top 1
Growth
(9.3%)
(12.2%)
Thousands
20K - 63K
additional impact
201
100
157
94
137
2010
Baseline
Status Quo
0
(current
projected
growth)
Top 5
US Growth
Top 1
US Growth
(5.3%)
(7.9%)
2020 Projection Scenarios
Building such a logistics infrastructure requires a broad
commitment, but it would pay off in making Michigan a
key node in the consolidation of a still fragmented
industry. To make it happen, a dedicated development
entity is needed that could put a unifying brand on the
effort to strengthen Michigan's logistics potential, and
coordinate among state and local administrations and
permitting authorities. The private sector, in turn, needs
to actively embrace the use of Michigan as a center for
shipping and logistics, and help secure the financing
necessary to build it out. Creative financing models,
which may draw on both public and private resources,
will also be crucial to securing Michigan’s place as the
Gateway to the Midwest.
A NEW MICHIGAN: ONE VISION, SIX OPPORTUNITIES
For example, it is completely feasible, through
coordinated development around Metro and Willow Run
airports, to create a Detroit Aerotropolis that would serve
as a powerful magnet for aviation-intensive businesses
of all sorts. Unlike most other cities, Detroit is in a
position to facilitate airport growth; there are an
estimated 10,000 to 25,000 acres of developable land
around Willow Run and Metro Airports that is already
fast-tracked for development through creation of a
special development zone. Detroit has more unused
capacity and a stronger service record than competitors
in the region, notably Chicago. The Aerotropolis has
already attracted significant investment with minimal
marketing and infrastructure development.
3
$ Thousands
OPPORTUNITY
Higher Education Marketplace
The opportunity
Michigan’s competitive advantages
More and more, economic growth in developed nations
stems not from growth in the labor force, but from
growth in productivity. That puts the need for innovation
at the forefront of any plan to maximize growth, and the
primary source of increasing that pool of innovation is
higher education.
Michigan has some of the finest research and
baccalaureate universities in the country, and graduates
a higher percentage of its students than the national
average in the science, technology, engineering and
math (STEM) disciplines. But we can’t afford to rest on
our laurels. Michigan will need an additional 1.3 million
college graduates by the year 2025 based on current
workforce trends. Many more states are increasing their
investments in higher education to meet their future
talent needs, and doing a better job than Michigan does
at translating that commitment into innovation that has
commercial impact and fosters growth.
BUSINESS LEADERS FOR MICHIGAN
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In 2009, Michigan ranked tenth in the nation in
academic R&D spending, and ranked sixth in the nation
in the amount of federal research funding we attract.
But our state’s higher education expenditures are falling
behind those of other states hindering our universities’
ability to grow and attract additional federal and private
R&D research funding.
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Michigan is
4th in the
nation for
producing
patents
How to build on those advantages
Michigan should set a concrete goal of being among the
top ten states for higher education, measured in quality,
affordability, productivity and economic impact. An
incentivized, performance-based funding approach for
state support would encourage universities to strive to be
best in class without undermining the strength of these
Michigan ranks 9th
in the nation in
Science & Engineering
graduates
Potential Impact of Higher Education Marketplace
Michigan GDP growth per capita
4
2
institutions. Such a funding approach would also help
convince an increasingly skeptical public that investing
in higher education translates into good jobs and
innovation, and thus to a better economy for Michigan.
$0.2K - $1.9K
additional impact
1.4
1.5
1.6
3.4
Top 5
Growth
Top 1
Growth
(1.6%)
(9.2%)
0
Michigan job growth
150
100
10K - 83K
additional impact
50
0
Thousands
39
50
2010
Baseline
Status Quo
(current
projected
growth)
132
59
Top 5
US Growth
Top 1
US Growth
(4.3%)
(13.0%)
2020 Projection Scenarios
While Michigan is among the nation's leaders in patent
activity and innovation output, we can better leverage
those achievements by strengthening universitybusiness-entrepreneurial partnerships. Great progress
has been made in this area over the past decade in
Michigan through new university business engagement
centers, business accelerators and entrepreneurial
programs. But we are still in the early stages of
developing these partnerships to accelerate
commercialization and business growth.
Finally, while the vast majority of the jobs of the future
will require education beyond high school, not all will
necessarily require a bachelor’s degree. These needs
can be met by expanding technical education programs
at community colleges and through better awareness of
the skills tomorrow’s workforce will require.
A NEW MICHIGAN: ONE VISION, SIX OPPORTUNITIES
Michigan also could realize a significant economic
opportunity by encouraging universities to increase their
enrollment of out-of-state students, without reducing
access for in-state students. Michigan universities are in
demand, but they under-enroll out-of-state students
compared to comparable peer institutions elsewhere. With
Michigan’s indigenous youth population getting smaller,
this portends a serious talent shortfall in the future.
Increasing the enrollment of out-of-state students could
add over 20,000 additional students to the state’s pipeline
of future talent, bringing in more than $200 million per
year in increased direct revenue. While Michigan
universities rank sixth in the nation in attracting federal
R&D expenditures per capita, given the importance of R&D
to the growth of productivity, we must do better. This will
require a concerted effort to attract both more federal and
industry-sponsored R&D to Michigan. Federal monies
support 57 percent of all basic research conducted in the
U.S., and the bulk of it flows to universities. These funds,
properly allotted, can seed innovation and foster
substantial economic development. As well as Michigan
does in this regard, the national leader, Massachusetts,
attracts more than twice what we do per student, helping
that state to foster 79 percent more startups than
Michigan did per R&D dollar. For example, Michigan’s
University Research Corridor (comprised of Michigan State
University, University of Michigan and Wayne State
University) ranks next to last in attracting industry R&D
relative to six other U.S. research clusters.
$ Thousands
OPPORTUNITY
Natural Resources Economy
Michigan’s competitive advantages
Globalization, increasing world population and rising
income levels in developing nations are all increasing the
demand for natural resources – chiefly food, energy
sources, precious materials, and water. This creates a
massive opportunity not only for those providing those
commodities, but also for those in a position to develop
technologies and approaches that maximize the
productivity of ever-scarcer resources.
Michigan’s varied agricultural industry has flourished in
part because of the local engineering capabilities that
have been brought to bear on improving it. That dynamic
between farmer and innovator offers Michigan a marked
advantage in the field of precision agriculture, where
automation control and satellite imagery are applied to
bring new levels of efficiency to planting, fertilizing and
harvesting crops. The industry is booming at a projected
rate of more than 19 percent per year, and for good
reason: farm productivity matters more than ever as
populations swell, land suitable for cultivation becomes
more scarce and a complex world commodity
marketplace increases price volatility. Michigan has all
the pieces in place to lead this trend. With global
demand for food expected to rise by 70 percent between
2000 and 2050 and Michigan farms producing 50
percent more feed-grains than state residents consume,
Michigan can become a key provider of the world’s food
supply by increasing exports and growing its food
processing capacity.
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The opportunity
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Michigan is the
leading state
for agricultural
diversity, expert
in food
production
Michigan can also leverage its natural beauty in the
lucrative tourism market, which brought the state an
estimated $17.2 billion in revenue in 2010. Tourism
outlays are highly sensitive to the overall economy, and
have dropped off in general since the recession, but
Michigan’s tourism industry has been hurt
proportionately less than that of other U.S. states.
The industry provides jobs for some 156,200 Michigan
residents as it is, and the growing trend towards niche
markets plays to the state’s strengths.
Finally, Michigan has the greatest supply of freshwater in
the world, large wind corridors and an expertise in
alternative energy technologies that give it an opportunity
to help meet the world’s need for new manufacturing
and energy sources.
Potential Impact of Natural Resources Economy
Michigan GDP growth per capita
How to build on those advantages
Agricultural processing and exports can be increased by
supporting policies and regulations designed to grow the
industry, increasing agricultural engineering solutions,
expanding the export transportation infrastructure and
helping expand overseas markets.
As for tourism, Michigan’s easy access to major
population centers, its relatively low costs, and the
intrinsic and varied attractiveness of its natural amenities
position the state’s industry well for future growth. But
those assets need to be appropriately marketed and
supported by strategic development of travel and
hospitality infrastructures.
Michigan is
surrounded by 95%
of the total US fresh
water supply
2
1
$0.9K - $1.5K
additional impact
2.9
2.2
1.7
1.3
0
Michigan job growth
300
Top 1
Growth
(2.8%)
(5.5%)
Thousands
56K - 99K
additional impact
276
200
100
Top 5
Growth
233
217
177
0
2010
Baseline
Status Quo
(current
projected
growth)
Top 5
US Growth
Top 1
US Growth
(0.73%)
(2.4%)
2020 Projection Scenarios
Concurrently, our specialized expertise in alternative
energy technologies should continue to be expanded
through the education of new talent, research
investments and engineering solutions that apply
automotive learnings across disciplines. Prudent
utilization of natural shale, wind and precious minerals
should also be pursued.
A NEW MICHIGAN: ONE VISION, SIX OPPORTUNITIES
In the longer run, Michigan’s plentiful supply of fresh
water could be an economic asset, as diminishing
supplies begin to have an impact on companies’
decisions about where to locate their facilities. Michigan
can work now to attract water-intensive industries to the
state that adopt safe, sustainable practices to prevent
the diversion of water outside of Michigan. It’s critical
that Michigan remain mindful that protecting our water
stocks and keeping them secure will leave the state with
an incalculable advantage for decades to come. In
addition we can leverage our engineering and
manufacturing assets to define future products and
services for the water management value chain to meet
the needs of water scarce regions in the world.
3
$ Thousands
OPPORTUNITY
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Global Center of Mobility
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The opportunity
Michigan’s competitive advantages
The global automotive industry is projected to expand by
31 percent by 2020 as the world’s growing middle class
acquires personal transportation. In addition, the
industry is rapidly transforming to enable the automobile
to serve as an extension of an individual’s office or home
while becoming more energy efficient. By 2020, almost a
quarter of units produced are expected to be hybrid
vehicles, and by 2050, the internal combustion engine
and the hybrid alike are expected to be eclipsed by
electric cars powered exclusively by fuel cells and
batteries.
For more than a century, Michigan has been the center
of the American automotive industry, and for almost as
long the center of the global industry. Michigan is the
number one state for vehicle research and development,
the number one state for vehicle production and home to
47 of the top 50 automotive suppliers. It is now uniquely
equipped to broaden its unmatched network of suppliers,
talent, and R&D capabilities and become the global
center of mobility.
Michigan is the
number 1 state
for vehicle research
and development
How to build on those advantages
Michigan should aspire to lead the trend toward
sustainable mobility, and it is well-placed to do so.
Whenever disruptive technologies create or transform an
industry, established actors serve as nuclei for clusters of
related economic activity. Consider how Silicon Valley
grew up around Hewlett Packard and other early
computer technology companies. Or how Norway’s oil
field and supply equipment sector, now a world leader,
developed around existing exploration companies, largely
because the oil shock forced companies to find new
revenue streams and the government was foresighted
enough to provide the business climate, research
support, and vision needed to seed change.
Potential Impact of Global Center of Mobility
Michigan GDP growth per capita
Similarly, this should be the place where the
cutting-edge research occurs on connected vehicle
technologies, such as GPS-assisted parking. With proper
support and planning, there is no reason why Michigan
shouldn’t be the location where game-changing,
driverless automated vehicles become a commercial
reality. These are products that make their own market;
consumers don’t even realize they want them, much as
they didn't know they wanted Model Ts until Henry Ford
designed them, or iPods or iPads until Steve Jobs
pushed them into an unsuspecting world.
15
10
5
$4.4K - $8.2K
additional impact
10.6
2.3
2.3
6.7
0
Michigan job growth
300
200
100
Top 5
Growth
Top 1
Growth
(11.5%)
(16.7%)
Thousands
100K- 126K
additional impact
211
185
131
86
0
2010
Baseline
Status Quo
(current
projected
growth)
Top 5
US Growth
Top 1
US Growth
(3.5%)
(4.9%)
2020 Projection Scenarios
Finally, our automotive expertise can also be leveraged
into developing multi-modal systems of transportation for
an increasingly urbanized world. For example, solutions
that allow personal forms of transportation to integrate
seamlessly with public transit systems would minimize
congestion and reduce emissions. These opportunities
can help to draw out-of-state talent and create an
ongoing circle of technological development in this
industry.
47 of the top 50
automotive suppliers
are located in Michigan
A NEW MICHIGAN: ONE VISION, SIX OPPORTUNITIES
The conditions exist for Michigan to make a similar
transformation. We should aspire to make our existing
automotive cluster the hub of many more, related
clusters in areas we know will emerge given the
demands of the global mobility market. For instance,
Michigan should be home to the greatest concentration
anywhere of R&D and manufacturing of the most
technologically challenging parts of electric vehicles. It is
here, in our labs and factories, that we should strive to
develop the next-generation of electric powertrains,
battery cells and cathode materials, which must meet
consumer needs in terms of value and affordability; it is
here that we can design, test and manufacture electric
motors, and work to improve the efficiency of
conventional power trains as well. And whatever
technologies emerge to power the cars of the future,
there is bound to be a premium on lighter-weight
materials that can be recycled. Michigan should push to
assure that the materials cluster that explores and
exploits those possibilities puts roots down here. To enter
this next stage of advanced products in the global
mobility arena, we need to cross-fertilize the expertise of
multiple industry value chains, within and outside the
automotive realm. Michigan can be the hub of the future
mobility center.
$ Thousands
OPPORTUNITY
Life Sciences Hub
The opportunity
Michigan’s competitive advantages
The aging of the population in developed nations, a
growing middle class in the developing world and the
demand for a higher quality of life among all populations
is driving demand for life sciences solutions. Healthcare
expenditure in the developed world is already outpacing
GDP, and the gap is widening. Few industries can come
close to matching the long-term growth potential of bioscience industries.
Michigan is well placed to capitalize on this demand.
We turn out the eighth highest number of university
bio-science degrees and rank 15th in employment in
this arena. For example, we confer 5,500 degrees in the
bio-science field every year and registered more than
1800 bio-science patents in the five years from 2004 to
2009, giving us a tenth-place ranking in the nation.
We have a unique combination of excellent high-end
medical research facilities and an overcapacity of
hospital acute care facilities. And there is an existing
industry to build on, as well. The bio-pharma industry
employed more than 20,000 people directly in the state
in 2008, and another 75,000 in related industries. It
contributed $8 billion directly to our state output, and
seeded a further $12 billion in revenue in related
industries.
One place to start is with bio-pharma products. This area
has a strong cluster effect and a great potential for
further growth, and we could jumpstart it by cultivating
an incubation hub for bio-pharma. Accelerating efforts
would help foster more startups and encourage them
into profitability, and create the broader connections
across the entrepreneurial community to help this
industry grow in Michigan.
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How to build on those advantages
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In the bio-science arena as in engineering, services are
growing at a much faster rate than products, a trend we
The life sciences
multiplier effect:
one job creates four
spin-off jobs
Potential Impact of Life Sciences Hub
Michigan turns out
the 8th highest
number of university
bio-science degrees
Michigan GDP growth per capita
3
2
1
0
should be mindful of as we promote this asset. The
biopharmaceutical service industry provides more jobs
across the nation than the manufacturing of drugs does,
and national employment there rose by more than 50
percent from 2004 to 2008. We should concentrate our
efforts on becoming a center of excellence for such
services. Specifically, that means developing research,
testing and medical lab services to serve the broader life
science industry. We have a great starting point: In
recent years we conferred 17 percent more bachelor’s
degrees in bio-science and engineering per capita than
the national average. And we rank 13th in the country in
running clinical trials for drugs and medical devices, a
service that plays to our strengths.
Our state’s more than 150 hospitals, 50 of them with
large acute care facilities, are less than 70 percent
occupied and many are nationally recognized centers of
excellence. These are all good circumstances for
Michigan to get to the front of the line in attracting
0.6
0.9
Michigan job growth
100
2.3
1.1
Top 5
Growth
Top 1
Growth
(7.5%)
(15.4%)
Thousands
9K - 27K
additional impact
50
45
51
77
60
0
2010
Baseline
Status Quo
(current
projected
growth)
Top 5
US Growth
Top 1
US Growth
(2.8%)
(5.5%)
2020 Projection Scenarios
patients from elsewhere, particularly in light of our
central geographical location and transport
infrastructure. Michigan hospitals can compete
successfully for long-term health maintenance and even
surgical contracts from out-of-state employers and
insurers interested in managing rising healthcare costs
while providing excellent care to employees.
What’s needed to fulfill our potential is a clear road map
that demonstrates a long-term commitment to the
growth of the life sciences industry. That should include
long-horizon investments, a rational regulatory and legal
environment, strong support for the universities and their
efforts to pursue cutting-edge research and attract topquality students and faculty, and entrepreneurial support
for start-ups and scaling of successful small and
medium-sized companies.
A NEW MICHIGAN: ONE VISION, SIX OPPORTUNITIES
Finally, we should pursue all available means to make
Michigan a destination of excellence for medical care of
out-of-state and foreign patients, both in the high-end
and lower-price markets. Healthcare expenditure in the
developed world is already outpacing GDP, and the gap is
widening. In the U.S., the wellness industry has grown at
an average annual pace of more than 22 percent in the
last decade. A focused commitment could put us in an
excellent position to reap far more than our natural share
of that growth.
$0.2K - $1.4K
additional impact
$ Thousands
In Conclusion
We are convinced that Michigan can move to a far
brighter future if it embraces these six growth
opportunities. Each one of them builds on specific,
existing strengths that offer a high probability, our
research suggests, of improving our state’s overall
output, our productivity, and our jobs picture.
That’s not to say, however, that they represent the final
word. We welcome suggestions from all quarters
toward shaping and refining these initiatives, and
toward identifying other ways to leverage our assets
today into greater opportunities tomorrow.
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We hope this document sparks a broad and fertile
discussion about additional initiatives for growth, and
eventually a concrete plan on achieving them. But the
plan, of course, is only the beginning. Implementing it
will require the commitment of all stakeholders —
private enterprise, the public sector, and supporting
associations and entities responsible for guiding
economic development.
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Forging a shared vision is vital. The regions of the world
that have been most successful at achieving strong,
sustained economic growth tend to be those that could
forge a common approach on how to do it. Only with
clarity and shared purpose can any region sustain the
work needed to realize a vision of economic growth
over decades. The southern states after World War II
present one example of how this can be done
successfully. While some succeeded better than others,
most realized they needed to embrace economic
transformation, prioritize their investments in a few
areas that would accelerate economic growth, and
build broad alliances across all segments of the
community to sustain the effort. Germany in the same
period offers another example. From a starting point of
absolute devastation, the country recast itself, building
on its strong tradition of technical innovation to strike
out on a new path of phenomenal growth, encouraged
by access to free markets and a stable financial
environment.
For too long, Michigan has lacked that sense of a
common purpose. It has been a state divided by region,
political party, class, race and labor status. Only
recently have these divisions begun to fade as the
stresses associated with a weak economy delivered a
painful reminder of an often forgotten truth: that
Michigan will rise or fall based on the success of our
collective efforts. Success spawns more success. And
with a common sense of direction, we can retain the
momentum needed for longterm prosperity.
Business Leaders for Michigan is committed to
engaging major stakeholder groups to work together to
advance the six opportunities we have outlined in this
document. We will do all we can to champion these
opportunities. When needed, we hope to serve as a
catalyst to encourage other organizations to collaborate
on furthering these efforts across the state. BLM will
convene regular meetings of key stakeholders to push
ahead and share best practices. We are committed, too,
to keeping the public abreast of the progress our state
is making.
We hope this plan spurs interest and engagement
across our state, from elected leaders, business
groups, civic organizations and citizens. Our central
message is that Michigan has enormous economic
assets, and that with genuine commitment, hard work
and a dedication to positive change, we can shift
Michigan back to a pathway of sustainable growth. Let
the discussion begin in earnest about what a New
Michigan can be and how to get there. We’ve laid out
our vision of the goal. Now we need your input, your
engagement, and your passion to make it a reality.
For more information about Business Leaders
for Michigan, the 2012 Michigan Turnaround Plan
and the path to a New Michigan, visit:
www.BusinessLeadersforMichigan.com
New Michigan Champion
William Clay Ford, Jr., Executive Chairman,
Ford Motor Company
Natural Resources Economy co-champions
Stephen M. Kircher, President & CEO,
Boyne Eastern Operations - Boyne Resorts
Lou Anna K. Simon, President, Michigan State University
Gateway to the Midwest co-champions
Stephen E. Gorman, Executive VP & COO,
Delta Air Lines
Douglas W. Stotlar, President & CEO,
Con-way Inc.
Global Center of Mobility co-champions
William Clay Ford, Jr., Executive Chairman,
Ford Motor Company
Stephen K. Carlisle, GM Vice President,
Global Product Planning, General Motors Company
Higher Education Marketplace co-champions
J. Patrick Doyle, President & CEO, Domino’s Pizza
Mary Sue Coleman, President, University of Michigan
Life Sciences Hub co-champions
William U. Parfet, Chairman & CEO, MPI Research
Michael J. Jandernoa, Board of Directors, Perrigo Company
CONCLUSION
Global Engineering Village co-champions
James P. Hackett, President & CEO, Steelcase Inc.
Charles G. McClure, Chairman, President & CEO,
Meritor, Inc.
Business Leaders for Michigan - 2012 Board of Directors
JAMES B. NICHOLSON
CHAIR OF THE BOARD
PVS Chemicals Inc.
TERENCE E. ADDERLEY
Kelly Services, Inc.
DANIEL F. AKERSON
General Motors Company
MARK ALYEA
Alro Steel Corporation
GERARD M. ANDERSON
DTE Energy Company
JON E. BARFIELD
The Bartech Group, Inc.
ALBERT M. BERRIZ
McKinley, Inc.
MARK J. BISSELL
BISSELL Inc.
STEPHEN J, BOSHOVEN
Farmers Insurance Group
STEPHEN K. CARLISLE
General Motors Company
MARY SUE COLEMAN
University of Michigan
ROBERT S. CUBBIN
Meadowbrook Insurance Group, Inc.
KURT L. DARROW
La-Z-Boy Incorporated
BUSINESS LEADERS FOR MICHIGAN
I
2012
I
THE NEW MICHIGAN
TIMOTHY P. COLLINS
Comcast Cable
DAVID C. DAUCH
American Axle & Manufacturing
RICHARD L. DeVORE
PNC Financial Services Group
DOUGLAS L. DeVOS
Amway
J. PATRICK DOYLE
Domino’s Pizza
JAMES E. DUNLAP
Huntington
PAGES
I
25 26
FREDERICK H. EPPINGER
The Hanover Insurance Group
STEPHEN M. KIRCHER
Boyne Resorts
JEFF M. FETTIG
Whirlpool Corporation
BLAKE W. KRUEGER
Wolverine World Wide, Inc.
WILLIAM CLAY FORD, JR.
Ford Motor Company
ANDREW N. LIVERIS
Dow Chemical Company
YOUSIF B. GHAFARI
GHAFARI, Inc.
DANIEL J. LOEPP
Blue Cross Blue Shield of Michigan
DANIEL GILBERT
Quicken Loans Inc.
STEPHEN P. MacMILLAN
Stryker Corporation
ALLAN D. GILMOUR
Wayne State University
BEN C. MAIBACH III
Barton Malow Company
ALFRED R. GLANCY III
Unico Investment Group LLC
TIMOTHY M. MANGANELLO
BorgWarner Inc.
DAN GORDON
Gordon Food Service, Inc.
RICHARD A. MANOOGIAN
Masco Corporation
STEPHEN E. GORMAN
Delta Air Lines, Inc.
FLORINE MARK
The WW Group, Inc.
JAMES P. HACKETT
Steelcase Inc.
SARAH L. McCLELLAND
Chase
RONALD E. HALL
Bridgewater Interiors, LLC
CHARLES G. McCLURE
Meritor, Inc.
RICHARD G. HAWORTH
Haworth, Inc.
DAVID E. MEADOR
DTE Energy
CHRISTOPHER ILITCH
Ilitch Holdings, Inc.
HANK MEIJER
Meijer, Inc.
MICHAEL J. JANDERNOA
Perrigo Company
MICHAEL MILLER
Google, Inc.
MILES E. JONES
Dawn Food Products, Inc.
MARK A. MURRAY
Meijer, Inc.
DAVID W. JOOS
CMS Energy Corporation
CATHLEEN H. NASH
Citizens Republic Bancorp
HANS-WERNER KAAS
McKinsey & Company
THOMAS D. OGDEN
Comerica Bank
ALAN JAY KAUFMAN
Kaufman Financial Group
JAMES O’LEARY
Kaydon Corporation
JOHN C. KENNEDY
Autocam
WILLIAM U. PARFET
MPI Research
CYNTHIA J. PASKY
Strategic Staffing Solutions
RICHARD F. RUSSELL
Amerisure Companies
ROBERT S. TAUBMAN
Taubman, Inc.
ROGER S. PENSKE
Penske Corporation
ALAN F. SCHULTZ
Valassis
SAMUEL VALENTI III
TriMas Corporation
WILLIAM F. PICKARD
GlobalAutomotiveAlliance
ALAN E. SCHWARTZ
HONIGMAN
STEPHEN A. VAN ANDEL
Amway
SANDRA E. PIERCE
Charter One - Michigan
J. DONALD SHEETS
Dow Corning
MICHELLE L. VAN DYKE
Fifth Third Bank
GERRY PODESTA
BASF
BRAD SIMMONS
Ford Motor Company
TIMOTHY WADHAMS
Masco Corporation
CHARLES H. PODOWSKI
The Auto Club Group
LOU ANNA K. SIMON, Ph.D.
Michigan State University
BRIAN C. WALKER
Herman Miller, Inc.
STEPHEN R. POLK
R. L. Polk & Co.
SAM SIMON
Atlas Oil Company
WILLIAM H. WEIDEMAN
The Dow Chemical Company
JOHN RAKOLTA, JR.
Walbridge
MATTHEW J. SIMONCINI
Lear Corporation
WILLIAM C. YOUNG
Plastipak Holdings, Inc.
DOUG ROTHWELL
Business Leaders for Michigan
BRIG SORBER
Two Men and a Truck International
Bank of America
ANDRA M. RUSH
Dakkota Integrated Systems, LLC
DONALD J. STEBBINS
Visteon Corporation
JOHN G. RUSSELL
CMS Energy Corporation/
Consumers Energy Co.
DOUGLAS W. STOTLAR
Con-Way Inc.
Energy Conversion Devices, Inc.
We commit to serving as a catalyst,
advocate and champion to transform
Michigan’s economy.
We promise to sustain our effort for the
long-term and take an active role in leading
this transformation.
Michigan is our home: We live, work and raise
our families here.
We will work beyond political terms to sustain
the effort.
We believe a vibrant Michigan economy will
make our state a place where business wants
to invest and people want to live and work.
We will focus on achieving the plan’s goals and
welcome different ideas for achieving them.
BUSINESS LEADERS FOR MICHIGAN 2012 BOARD OF DIRECTORS
A Commitment and a Promise: From Business Leaders for Michigan