Smart solutions are helping bring Michigan out of its recent economic decline, but more work is needed to shore up its recovery.
That’s the message from Business Leaders for Michigan (BLM), a non-profit executive leadership organization whose members introduced a comprehensive plan for righting the state’s economic ship back in 2009.
Between 2000 and 2010, half of the jobs lost in the country came from Michigan, said Doug Rothwell, president and CEO for BLM.
“We knew urgent action was needed to help bring our state back, so our members asked themselves what they would do if they were running Michigan like a company,” Rothwell said. “That’s how the Michigan Turnaround Plan was born.”
The Michigan Turnaround Plan is a fact-based strategy to make Michigan a top-ten state for jobs, personal income and a healthy economy. Rothwell said the goal was clear and BLM laid out a comprehensive roadmap to achieve the goal at a maximum impact.
Rothwell acknowledges that Michigan isn’t there yet, but with the roadmap we know how Michigan will get into the top ten.
“We’re taking steps to make sure it does,” he said.
The first step of the plan is simple: Compete. While Michigan is recovering faster than most states, there is a lot of ground to make up as per capita GDP, income levels and employment are still below what they were before the Great Recession.
“Michigan is getting competitive again, that’s for sure,” Rothwell said. “However, it’s not enough to merely be in the game again. We need to position ourselves for a win.”
For Michigan to position itself for a win, it has to become a more responsive place with better talent and stronger assets. Those assets need to be leveraged to drive growth and be recognized as a center of innovation.
Rothwell noted that business site selectors have lots of locations to choose from. To attract new job providers, Michigan needs to deliver a strong business climate, a robust talent base, and above-average performance selection factors compared to other states.
“A major factor in getting Michigan competitive again is making sure our tax structure supports our employers,” Rothwell said. “For example, Michigan’s personal property tax penalizes companies that buy equipment, furniture and technology here. They are taxed repeatedly on the same items, so if a machine is ten years old, it’s been taxed ten times.”
Rothwell also noted the need for Michigan to strengthen its ability to foster business start-up and expansion by providing stronger economic development incentives.
“That is why the other two steps of the Michigan Turnaround Plan call for investment and growth,” he said. “We’re stronger and more competitive today than we were five years ago, but we need to keep strategically investing in ideas and opportunities that make us stronger.”
As Michigan continues its uptick there are plenty of encouraging signs. By the further implementation of the three-step Turnaround Plan, Business Leaders for Michigan is confident in getting Michigan into the top ten and to continue its economical success.
