Tuesday, March 15, 2005
Michael Shore, MEDC
Company to Reinvest in Seven Detroit, Southfield Facilities
Governor Jennifer M. Granholm joined state, local, labor and company leaders in Southfield today to announce that SBC Michigan plans to invest $3.7 million in operations at seven of its network center facilities in Detroit and Southfield instead of moving to locations outside of Michigan. The investment will save over 2,000 Michigan jobs, including 930 directly by the company. Assistance offered through the Michigan Economic Development Corporation (MEDC) helped convince the company to choose Michigan.
"This is excellent news for Metro Detroit," Granholm said. "SBC's decision is a strong indicator that the company's future growth will be anchored firmly in Michigan."
The MEDC approved a Single Business Tax credit valued at more than $18 million as well as an Economic Development Job Training grant of up to $930,000 to win the project.
The SBC project is among 13 economic development projects the Governor announced today. In all, they are expected to create and retain a total of 7,120 Michigan jobs, including 3,196 directly by company expansions and redevelopments.
"SBC Michigan is the Home Town team," SBC Michigan President Gail Torreano said. "This win is good for Michiganians, who will continue to benefit from the time and talent that SBC employees frequently invest in the communities where they live and work."
A University of Michigan economic analysis estimates that 1,210 indirect Michigan jobs will be created as a result of increased economic activity associated with the consolidation, in addition to the 930 jobs retained directly by the company. The project is expected to generate more than $1.5 billion in personal income for Michigan workers over the life of the tax credit.
SBC is a Fortune 50 company that provides voice and data telecommunications products and services including local, long distance, DSL, wireless data networks and satellite television. The company employs 167,000 worldwide including 13,800 in Michigan.
"The MEDC's highest priority is to help Michigan companies continue to prosper here in the state and hopefully create new job opportunities for workers as they do so," MEDC President and CEO Don Jakeway said. "SBC is a major employer and we are thankful for the company's decision to keep its business within our borders."
In her 2005 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005 the Governor and the MEDC have announced the creation or retention of more than 31,464jobs as a result of targeted assistance provided by the MEDC.
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.
SBC Communications, Inc.
(All estimates in 2005 dollars)
|TOTAL JOBS RETAINED||2,140|
|NET POSITIVE STATE REVENUE IMPACT||$97,321,000|
|Personal Income Generated Over||$1,501,021,000|