Michigan + Manufacturing = Recipe for Success


Manufacturing is critical to Michigan's economy. . . . . There. I've said it. Now, here's why.

It represents the single largest private sector component of Michigan's GDP, employs about 13.4% of total jobs (roughly 554,000 people), accounts for over 85% of exports, and on average, pays 36.7% higher then the State's average paid wage.

Manufacturing jobs have a great multiplier effect, for each job in manufacturing supports at least two other jobs in other industry sectors. Much has been written on this phenomenon, and a recent article published by the Huffington Post indicates this number may be understated and could be as high as 15.

When manufacturers perform well and can retain and fill new positions, everyone wins. Using a sports analogy, for every 5 new hires in manufacturing, using a conservative 2.2 as a multiplier, a baseball team is created (9 position players and a few coaches), a football offensive or defensive line can take the field (11 players each) or you've added another soccer team (11 players) to the United States Soccer Federation.

Sources: GDP - U.S. Bureau of Economic Analysis 2011 data

Now, leaving aside the need or want of additional sports teams, we would love to have more manufacturers, and not only for the reasons listed above. Michigan has, as you would expect, a high concentration of transportation equipment manufacturers, but did you know it also has a large number of machinery, furniture and related products, plastics & rubber products and primary metal manufacturers? In fact, Michigan employment concentration in these sectors is more than 150% higher than the U.S. average employment in these sectors across the country. Other large manufacturing sectors include food processors and chemical manufacturers.

Michigan had the fastest improving economy in the nation from the third quarter of 2009 through the first quarter of 2012. People have theorized that it is this very diversity in Michigan's manufacturing base that helped boost the recovery.

Bottom line, we love manufacturing. We love making stuff. We love seeing new products come to market and enjoy learning about exciting new technologies, especially when we can link those same technologies to our customers. We like it when good companies get better and better companies grow. We like it when unemployed people fill new jobs and everybody wins.

Michigan + Manufacturing = recipe for success. Who doesn't like to win. Just ask the Boston Red Sox.

What's in your recipe?

Since 1991, MMTC has assisted Michigan’s small and medium-sized businesses compete and grow. Through personalized services fitted to meet the needs of clients, we develop more effective business leaders, drive product and process innovation, promote company-wide operational excellence and foster creative strategies for business growth and greater profitability. Find us at www.mmtc.org.

Categories: U.S. Manufacturing, Workforce