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Michigan #1 State for Automotive Manufacturing According to Business Facilities

For the second consecutive year, Michigan holds the #1 ranking Automotive Manufacturing Strength according to the Business Facilities’ 17th annual Rankings Report for 2021. Over the past three years, Michigan created 11,000 new auto and mobility jobs. Additionally, the first new auto plant in Detroit in 30 years is simultaneously under construction and already in operation. The Big Three automakers have made firm commitments to electric vehicles and the future of mobility.

MICHauto Perspective
The recognition of Michigan’s excellence in manufacturing reflects the growing strength and competitiveness of Michigan’s economy. In CNBC’s Top States for Business annual ranking, Michigan improved 13 spots from 2019, to move up to 11th. The jump in the rankings was driven by high scores in the categories of technology and innovation, cost of living, and cost of doing business.

“A century of manufacturing expertise built Michigan’s reputation as the center of the automobility industry. MICHauto is proud to see our state ranked number one in the Automotive Manufacturing Strength by the Business Facilities Rankings Report,” said Glenn Stevens, executive director for MICHauto. “MICHauto’s committed advocacy for innovation, talent attraction, and investment will allow Michigan to maintain our global leadership.”

Leadership in Manufacturing Translates to a Strong Economy
MICHauto’s Mobility Industry Economic Contribution to Michigan report outlines the mobility industry’s economic contribution to the state. It is clear from the data how critical the mobility industry is for the state. Michigan’s mobility industry total economic output was $304 billion in 2019, which makes it larger than Germany’s $250 billion. That $304 billion represents 23% of Michigan’s gross state product, and more than 1.1 million jobs are either directly or indirectly tied to the industry. This is more than 25% of Michigan’s 4 million private-sector jobs. These are also some of the highest-paying jobs in our state. The average compensation for a worker in the industry is $65,000 compared with the state average of just under $30,000.

Michigan not only maintained its leading position in automotive manufacturing strength, it also held steady in the top 5 states for manufacturing relative to employment (#4) as well as manufacturing output (#4). This strong showing in the manufacturing sector, in spite of the impacts of a global pandemic, demonstrates the commitment Michigan’s business and political leaders have towards growing the industry.

“These Business Facilities rankings reaffirm what we already know: Michigan’s manufacturing workforce is who you turn to when you want to get the job done,” said Gov. Whitmer. “We are building on our rich manufacturing heritage as we jumpstart our economy, create thousands of good-paying jobs, and position Michigan as a top state to start and grow a business. As Michigan builds our way out of the pandemic, we have an opportunity to build a nation for the next generation and create economic prosperity for years to come.”

MICHauto has played a critical role in the strength of Michigan’s manufacturing through advocacy on next-generation mobility initiatives, attracting and retaining talent, and convening leaders from the industry.