Outdoor Innovation and Mobility Infrastructure: Michigan’s Legacy and Competitive Advantage

Over 100 government, industry, and academic stakeholders from across the state gathered in Traverse City on Aug. 5 to discuss Michigan’s leadership in the outdoor mobility industry. Hosted by MichAuto in partnership with the Grand Traverse Area Manufacturing Council, Michigan’s Office of Future Mobility and Electrification (OFME), the Michigan Outdoor Recreation Industry Office, and Traverse Connect, this annual roundtable leading up to the Center for Automotive Research Management Briefing Seminars conference highlighted the progress of the state’s growing outdoor recreation industry. 

Warren Call, President and Chief Executive Officer of Traverse Connect, set the stage by saying, “As a region, outdoor recreation and the mobility industry in general are vital to our area. We have more concentration of advanced manufacturing in this region than the state average.  It’s not just a great place to drive a boat – it’s a great place to manufacture.” 

Related: Four Projects to Receive Over $6 Million to Further the State’s Advanced Aerial Mobility (AAM) Leadership

Michigan’s Chief Mobility Officer, Justine Johnson, opened the afternoon’s discussion by surveying the crowd on their definition of mobility, and the answers showed just how broad the industry is in Michigan.  Johnson expressed how mobility includes our environment, our communities, and our industries.  “We have to lean in, we have to be creative, we have to ask the difficult questions, and we have to propel ourselves forward,” she said. 

Johnson spoke to the diversity of Michigan’s manufacturing and R&D community.  The mobility ecosystem extends beyond the road and includes aerial, water, and new forms of transportation innovation.  The OFME has launched a few programs and initiatives to support these growing industries and to meet the goals of the MI Future Mobility Plan. 

Michigan’s Chief Innovation Ecosystem Officer, Ben Marchionna, joined Johnson to highlight how his office focuses on the future areas where Michigan can succeed.   

“I’m really excited to listen today and learn from all of you about what’s working in the state, what’s not working, and some of the big ideas on how we can grow,” he said. Marchionna also spoke of the diversity of stakeholders in this area and is learning how each of them fits in. 

Toyota North America’s Assistant Chief Engineer, Randy Badia, spoke about Toyota’s outdoor products and commitment. The company has been present in the U.S. for sixty-five years since first introducing its products to the American market in 1958.  

In Michigan, Toyota began in 1972 and has grown to include the R&D North America Headquarters and offices at the American Center for Mobility and numerous other support functions, including a supplier center, prototype center, and safety labs.  Toyota has invested over $8 billion in Michigan, employing over 2,000 team members, including designing its 2024 Tacoma midsize truck for the U.S. market. 

Following the Toyota presentation, Tony Ambroza of RealTruck spoke about building the brand as an aftermarket supplier to the outdoor segment.  RealTruck is headquartered in Ann Arbor and has the most comprehensive product portfolio in the aftermarket industry.  Historically, their brands were well-known in the industry but not by the end consumer.   

Ambroza spoke about how RealTruck is tackling that brand awareness issue and pivoting the company toward the future by understanding and using customers’ perspectives. 

“As the outdoor industry continues to grow, we have found that the consumer will accessorize their vehicle to match and allow them to pursue the life they’d like to pursue,” he concluded.  “The outdoors is going to play a pivotal part in growing the mobility industry in Michigan.” 

Delaney Keating of 20Fathoms, Bill Myers of Promethient, Inc., and Richard Phamdo of Voltaic Marine were joined by moderator Camille Hoisington from Traverse Connect for a conversation on manufacturing, mobility, and innovation in Michigan. Traverse Connect is the lead economic development organization for the Grand Traverse region and is tasked with not only supporting the regional ecosystem but also attracting new businesses to the area.  A key business attraction tool for the region is the natural resources that surround the area and leveraging those natural areas for testing, research, development, and innovation.   

When asked how to harness the power of natural resources for business, Phamdo referenced his experience as a former OEM semiconductor supplier to suggest that performance power and price are critical factors. 

Myers and his company developed a technology for using conductive heating and cooling for seats, finding an application in outdoor mobility products.  The company is now expanding into other markets, including stadium seating. 

Keating highlighted the work that 20Fathoms is doing to launch entrepreneurship while also growing the talent pipeline and capital for startups. With a background in Colorado’s startup ecosystem, Keating has noticed many similarities between these markets, including the strategic moves that Colorado has made in outdoor innovation and the opportunity that Michigan has in this space. 

The panel conversation also touched on Michigan’s legacy of turning “ideas into solutions.” 

Myers emphasized the importance of manufacturing in Traverse City and across Michigan, as well as the region’s diversity, including agribusiness, advanced manufacturing, and unique, innovative ideas that have started in the region and created solutions that span the globe. 

When asked why entrepreneurs should set up in Northern Michigan, Phamdo answered that Michigan has all the factors an outdoor recreation manufacturer needs, including the blend of the natural ecosystem and the manufacturing ecosystem. Something unique in the emerging outdoor innovation manufacturing industry is that it can absorb some of the impacts that exist in the cycles of the automotive industry. 

Keating shared that companies in the area heavily value the diversity of industries in the state, from startups to mature companies and relevant suppliers. The more strategic we are about needing resources, the more success we will see in attracting new companies. Marketing Michigan’s natural assets will help the industry grow organically. 

Myers introduced access to talent as a key to business attraction. It starts with schools and STEM curriculum, followed by regional colleges and universities, key regional innovation ecosystem partners, and support from the State of Michigan. 

 The session closed with a discussion with Brad Garmon of Michigan’s Outdoor Recreation Industry Office, Charlie Tyson from Michigan’s Office of Future Mobility and Electrification, Patrick Weldon from Polaris, and Scott Whitcomb from Michigan’s Department of Natural Resources (DNR) about the work that went into establishing the first e-ORV charging network in the world. 

The questions from the audience surrounded long and short-term solutions needed to support the existing workforce and new businesses seeking to grow in the region. Education, housing, infrastructure connectivity, and alignment are considered among stakeholders to be critical in growing the region; these innovations aren’t just about performance but also the environment. 

Garmon closed the afternoon by explaining why this topic is critical to Michigan. The overall Outdoor Recreation economy just eclipsed a $1 trillion industry in 2022, with Michigan’s share being $12.4 billion.   

“Michigan has a huge outdoor recreation segment, and we need to support, foster, and sustain this industry in Michigan,” he said. 

Tyson emphasized that there is a lot more work to be done in this segment, but we’ve made a lot of progress over the past year in growing opportunities in mobility across land, air, and water.  

However, there have been some big wins lately, including the Great Lakes EV circuit, whose first phase was led by DNR to install charging systems at state parks. Phase 2 will include 28 new sites around Lake Michigan.  

Next week, Adastac will begin its demo of a driverless bus at Sleeping Bear Dunes National Park. This 45-day project will help evaluate solutions for national parks across the country to replace aging shuttle bus systems.  

“These partnerships with the NPS set Michigan apart from other states,” Tyson said. “The ability to deploy technologies in Michigan provides the state a competitive advantage.”