Tuesday, May 17, 2005
Michael Shore, MEDC
Jobs Secured as Companies Choose Michigan Over Other Locations
Governor Jennifer M. Granholm today announced four company expansions in southern Michigan are expected to create and retain 2,586 good-paying advanced automotive manufacturing and high-tech jobs through more than $122 million in private investment. In each case Michigan beat out competing sites across North America to win the projects.
"These major investments strengthen Michigan as a global center of manufacturing, engineering and high-tech business," Granholm said. "Our aggressive strategy to attract and retain world-class companies and good-paying jobs is generating tremendous results."
American Axle & Manufacturing will invest a total of $80 million in two of its Michigan facilities-$73 million in Detroit and $7 million in Three Rivers-to accommodate the manufacture of General Motors' next generation of full size pickups and sport utility vehicles (SUV). The project will save a total of 1,568 Michigan jobs, including 458 in Detroit and 198 in Three Rivers directly by the company. An SBT credit valued at more than $7.7 million over eight years as well as an Economic Development Job Training grant of up to $458,000 helped persuade the company to expand in Michigan. The city of Detroit is expected to consider a tax abatement valued at $8.3 million over 12 years in support of the Detroit location. The city of Three Rivers has also offered a 12-year tax abatement valued at $364,000.
Commonwealth Associates Inc., an engineering firm that designs power delivery systems including alternative energy integration systems, plans to invest $2.8 million to expand its operations in Jackson and create 127 jobs, including 50 new, highly-skilled jobs directly by the company over five years. An incentive package including an SBT credit valued at approximately $947,000 and a local property tax abatement of $223,700 approved by Blackman Township helped convince the company to invest in Michigan instead of a competing site in Atlanta.
Stryker Corporation, one of the world's largest medical products and services companies, will invest approximately $20.4 million to build a new headquarters in Kalamazoo. The project will create 165 new jobs, including 100 directly by the company. A Single Business Tax credit valued at approximately $5.8 million helped the company decide to expand in Michigan instead of a competing location in New Jersey. Kalamazoo is considering a local abatement valued at $471,600.
The four projects are expected to create and retain 1,180 jobs directly by the companies with an additional 1,406 indirect jobs resulting from increased economic activity associated with the company expansions, according to an economic analysis provided by the University of Michigan.
"When it comes to securing new investment and creating and retaining jobs, we will use every weapon in our arsenal," MEDC President and CEO Don Jakeway said. "The incentives offered by the MEDC and local communities were the deciding factors in keeping these companies and good-paying jobs in our state."
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.