Michigan attracted $6.5 billion in major corporate capital investments involving 213 projects and 32,474 new jobs last year, second only to Texas, Governor Jennifer M. Granholm announced today following release of the first annual U.S. Investment Monitor by Ernst & Young LLP, the major international accounting and consulting firm. A key factor was Michigan's success in attracting international investment. International companies accounted for 21 percent of planned capital expenditures in Michigan, representing the third highest level of foreign investment in the nation.
The top five states, Texas, Michigan, Ohio, California and New York, attracted nearly 40 percent of total capital investment in the nation during 2004.
"Michigan's ranking puts us in the top tier of economic development heavyweights," Granholm said. "Our economic plan is encouraging the growth of Michigan companies and attracting new investment and new jobs to the state."
The Governor has implemented a comprehensive plan to grow the economy and pave the way for good, high-paying jobs that cannot be outsourced. It includes targeted initiatives to increase automotive manufacturing and R&D investments and jobs in the state.
According to the report, "Michigan lives up to its reputation as the nation's automotive capital." Michigan attracted 45 percent of the total auto industry U.S. investment of $14.5 billion.
In 2004, Toyota, Nissan and Hyundai headed the list of foreign-based automakers announcing North American technology center expansions in Michigan. Following her investment mission to Japan last July, the Governor said that ten Japan-based companies were committed to expansions here, representing 630 jobs and $116 million in capital investments. In all, 43 international auto-related companies have entered Michigan or expanded operations here in the past year.
The new Global Engine Manufacturing Alliance plants in Dundee were among the Top 15 of what the report called "Mega-Projects"-those involving the creation or relocation of thousands of jobs over a multi-year period. GEMA is the joint venture between DaimlerChrysler, Hyundai Motor and Mitsubishi to supply engines for nearly two dozen vehicles worldwide. The project accounted for $406 million in capital expenditure and 1,600 jobs.
The Ernst & Young study also monitored investments in: petroleum and energy technologies, pharmaceuticals, non-durable products, distribution and logistics and business and professional services. The study is currently available online at: http://www.ey.com/global/download.nsf/US/US_Investment_Monitor_September_2005/$file/InvestmentMonitor09-05.pdf
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.