©2016 Michigan Economic Development Corporation

Governor Announces Ryder Considering Consolidating Operations in Novi

Tuesday, October 17, 2006

Michael Shore, MEDC
(517) 335-4590

Governor Jennifer M. Granholm today announced Ryder System Inc. is considering consolidating logistics operations in Novi as a result of assistance offered by the Michigan Economic Development Corporation. If approved, the project is expected to create up to 777 new jobs, including 400 directly by the company.

A University of Michigan economic analysis estimates that 377 indirect Michigan jobs will be created as a result of increased economic activity associated with the project, in addition to 400 created directly by the company. The project isexpected to generate more than $220 million in personal income for Michigan workers over the life of the tax credit.

The expansion is one of 14 economic development projects the Governor announced today. In all, they are expected to create and retain a total of 8,572 Michigan jobs.

Ryder System Inc. is a Fortune 500 provider of leading-edge transportation logistics and supply chain management solutions throughout North American, Latin America, Europe and Asia. The Ryder Supply Chain Solutions business segment provides contract-based supply chain management services to automotive manufacturers and Tier 1 suppliers, including planning of inbound and outbound logistics networks, procurement of freight and execution of transportation.

www.michigan.org.

Ryder System, Inc.
Economic Analysis
Summary Estimates
(All estimates in 2006 dollars)

TOTAL JOBS CREATED

777

Direct

400

Indirect

377

NET POSITIVE STATE REVENUE IMPACT

$11,568,000

Revenue Foregone

$3,968,000

Revenue Gain

$15,536,000

Average Weekly Wage

$960

Life of the Seven-Year Tax Credit Agreement

$220,336,000

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