Mobility Industry’s Economic Contribution in Michigan

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The Mobility Industry’s Economic Contribution in Michigan report outlines the mobility industry’s economic contribution to the state. The mobility industry, as defined by the production and distribution of goods and services that support any movement of people and products, is important to Michigan because it creates solutions to congestion, emissions, safety, and equity. Identifying the industry’s impact on Michigan’s economy will enable us to better understand and harness the potential the industry has to solve these issues. Read or download the full report below.

First-Of-Its-Kind Report Highlights The Mobility Industry’s Economic Impact

MICHauto released its 2021 Mobility Industry’s Economic Contribution to Michigan report on Wednesday, March 24, during the State of Automobility event. Glenn Stevens Jr., the executive director for MICHauto, presented key findings from the study and discussed the challenges and highlights for Michigan’s signature industry during the COVID-19 pandemic.

Defining Mobility

The report defines the mobility industry “as the production and distribution of goods and provision of services that support any movement of people and products.” The report highlights how many jobs are tied directly and indirectly to the mobility industry and the significant impact on the region’s overall economy. The report focuses on data from 2019, which was the last year of complete economic data, and includes an early analysis of how COVID-19 impacted the industry.

“The continuous transformation of automotive to a new mobility industry is an economic benefit to individual Michiganders, our region, and the state. Michigan must position itself to capitalize on the economic opportunity of mobility and lead with technology that solves global issues,” said Stevens. “We must utilize the auto industry as a platform for diversification, with mobility leading to an expansion of data science, robotics, artificial intelligence, and automation that positions Michigan for sustained economic growth.”

An Essential Contribution To Michigan

The report used data from 2019, the last full year of economic data that could accurately be measured, and an update on earlier MICHauto economic studies that only looked at the automotive sector. This year’s report defines the automotive sector as part of a growing mobility industry and offers a comprehensive assessment of the industry’s significant contributions to Michigan’s economy.

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.

“It is clear from this report that the mobility industry is growing, and Michigan must utilize our head start as the automotive capital of the world,” said Stevens. “Transformational mobility will lead to an expansion of data science, robotics, artificial intelligence, and automation that positions the state for sustained economic growth.”

COVID-19’S Impact On The Industry

Stevens shared with the audience the challenges the industry has been through over the past year. However, he was quick to point out MICHauto’s leadership in helping safely reopen manufacturing and the resiliency of the industry. As a direct result of MICHauto’s lobbying, the state allowed a critical ramp-up period for automotive suppliers to safely and productively restart the industry’s supply chain.

MICHauto recognized that it was not enough just to lobby the Governor to open manufacturing. The industry had to be responsible for keeping automotive employees safe and our communities healthy. That led to the Mask Up Michigan and the Work Smart, Play Smart to Keep Manufacturing Open campaigns. Manufacturing reopened on May 11, 2020, and has stayed open since.

“The COVID-19 pandemic had a devasting initial impact on Michigan’s manufacturing; however, innovation and safety protocols allowed the automobility industry to safely reopen and lead a significant recovery for the state in the second half of 2020,” said Stevens.

The report was created in partnership with Public Sector Consultants and the Michigan Economic Development Corporation’s support.

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