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Monday, July 18, 2022
Michigan has strategically positioned itself to attract significant corporate investment in the first half of 2022 – and is aligned statewide to welcome more.
If the first half of 2022 is any indication, Michigan is equipped with all of the tools needed to be a leading state for attracting key projects and investments. Business attraction and expansion announcements so far this year span Michigan’s communities and industries, totaling $11.8 billion in projected private investment. The more than 30 company expansions and locations announced between January and March 2022 are projected to create a combined nearly 15,000 new jobs, and in turn provide ongoing customers for small businesses, increased population growth and more vibrant communities across the state.
THE EPICENTER OF THE ELECTRIC VEHICLE INDUSTRY
The phrase “firing on all cylinders” may not apply to electric vehicles, but the saying holds true for Michigan’s momentum and leadership position in the EV industry.
General Motors’ historic $7 billion investment in Michigan, the largest in the company’s history, includes converting an existing Orion Township assembly plant to build full-size EV pickups and building a battery cell plant in Lansing. Adding to its Michigan workforce of 50,000 people, GM is harnessing the state’s manufacturing and engineering talent for 4,000 new jobs that “will help us make our home state the epicenter of the electric vehicle industry,” says GM CEO Mary Barra.
GM’s major investment was joined by South Korea-based LG Energy Solution’s $1.7 billion investment to quintuple its existing Holland, Michigan, capacity to help produce EV battery components. LG Energy Solution’s Michigan presence has grown to 1,495 employees since building its first U.S. EV battery plant in 2010. Its latest investment includes the creation of 1,200 new jobs.
Shortly after, Ford Motor Company announced its plans to invest $2 billion in its various plants throughout southeast Michigan, creating more than 3,200 manufacturing jobs in the state. The investment underscores Ford’s commitment to create opportunities for greater EV manufacturing growth in the state, while securing its existing internal combustion engine vehicle operations in its home state.
Michigan’s EV and automotive supply chain is growing in addition to GM, LG Energy Solution and Ford’s anchor investments, with leading global supplier Electrical Components International establishing a global Business and Engineering Solutions Center in Southfield and automotive seating maker LM Manufacturing investing $18.1 million to create 390 new jobs at an existing facility in Detroit.
PREPARED TO COMPETE
The economic development landscape is more competitive and diverse than ever, and Michigan is taking the necessary steps to cultivate talent and training programs, develop sites and prepare state and local partners to provide support to expanding companies, creating a competitive edge in both national and international markets.
As a result, Michigan is edging out the competition:
GROWING EQUITABLY AND SUSTAINABLY
Michigan’s communities and existing companies are committed to sustainability – and the companies announcing investments in the first half of 2022 are no different.
“I am optimistic about realizing LG Energy Solution’s aim to achieve carbon neutral by 2050 and about creating ripple effects of environment conscious business in Michigan and beyond,” says Bonchul Koo, President of LG Energy Solution Michigan, aligned with the MI Healthy Climate Plan that outlines a path to carbon neutrality by 2050. “I look forward to what the future holds.”
Sustainability is at the core of PADNOS’ work – and the company brings an additional lens of equity to its hiring. PADNOS, transforming scrap into reusable resources since its founding in Michigan in 1905, is investing $6.6 million in its Wyoming, Michigan, facility to support recycling of ocean-bound plastics and will provide training to individuals returning from incarceration.
Likewise, Welch’s, locating a new bottling line in Lawton, Michigan, after a multi-state search, is championing equitable advancement for all Michiganders by hiring low- to moderate-income individuals for at least 30 of its 57 new jobs. Aerostar, a minority-owned CNC machining provider, is investing $8.6 million in Romulus, Michigan, over considered sites in Georgia and Indiana and is committed to promoting its largely minority workforce through on-the-job and external training.
Meanwhile, sustainable footware manufacturer, HOLO Footwear, is relocating its headquarters from Portland, Oregon to Grand Rapids, Michigan, after considering competing sites in North Carolina and Oregon. Here, it will create 61 high-wage jobs and invest $1.5 million in the region, while benefitting from the state’s robust outdoor recreation assets, strong talent pool and attractive business environment.
A CUSTOMER-FIRST APPROACH
The MEDC team is working with public, private, philanthropic and academic partners to continually advance Michigan as a competitive business environment that solidifies location decisions by the likes of Aerostar Manufacturing.
“In the end it wasn’t just the dollars and cents, but many intangibles like manufacturing infrastructure, trained workforce and being close to many world-class existing and potential customers in Michigan that tipped the scale in Michigan’s favor,” says Lalit Goel, CEO of Aerostar Manufacturing.
Learn more about why Michigan is the best choice for doing business by visiting michiganbusiness.org/why-michigan.
To contact a business development specialist, click here or call 1.888.522.0103.