Growing a New Michigan: The 2014 Report on Michigan’s Progress in Growing Six Opportunities

About Business Leaders for Michigan
Business Leaders for Michigan is a private, non-profit executive leadership organization whose mission is
to develop, advocate and support high-impact strategies that will make Michigan a “Top Ten” state for
jobs, personal income and a healthy economy. The organization’s work is defined by the Michigan
Turnaround Plan, a holistic, fact-based strategy developed to achieve our “Top Ten” goal.
Serving as the state’s business roundtable, Business Leaders for Michigan is composed of the
chairpersons, chief executive officers, or most senior executives of Michigan’s largest companies and
universities. Our members drive over 25% of the state’s economy, provide over 325,000 direct and
820,000 indirect jobs in Michigan, generate over $1 trillion in annual revenue and serve nearly one half
of all Michigan public university students.

Table of Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Understanding this Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
A New Michigan: One Vision, Six Opportunities . . . . . . . . . . . . . . . . .5
Aggregate Performance on Six Opportunities . . . . . . . . . . . . . . . . . .7
Base of Entrepreneurship, Innovation and Manufacturing . . . . . . . . .11
The Six Opportunities
1. Global Engineering Village . . . . . . . . . . . . . . . . . . . . . . . . . . .13
2. Gateway to the Midwest . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
3. Higher Education Marketplace . . . . . . . . . . . . . . . . . . . . . . . .21
4. Natural Resources Economy . . . . . . . . . . . . . . . . . . . . . . . . . .25
5. Global Center of Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
6. Life Sciences Hub . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Appendix: Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

BUSINESSLEADERSFORMICHIGAN
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A 10-year strategy to leverage Michigan’s existing strengths
to grow a New Michigan economy
In 2009, BLM released the Michigan Turnaround Plan, a blueprint to make Michigan
one of the Top Ten states for jobs, personal income and a healthy economy.
In 2012, a New Michigan strategy
was added to the Plan, identifying six
opportunities associated with assets
that Michigan can leverage into faster
economic growth. These assets include
the state’s engineering prowess,
geographic location, and world-class
higher education institutions, among
others.
The 2014 New Michigan Report is the
second in an annual series in which we
track Michigan’s progress in leveraging these assets.We chart Michigan’s performance
on various metrics over time and compare Michigan with high-performing states.
ENGINEERING
TALENT
Global
Engineering
Village
Opportunities:Assets:
GEOGRAPHIC
LOCATION
Gateway
to the
Midwest
HIGHER EDUCATION
SYSTEM
Higher
Education
Marketplace
NATURAL
RESOURCES
Natural
Resources
Economy
AUTOMOTIVE
INDUSTRY
Global
Center of
Mobility
HEALTH & MEDICAL
EXPERTISE
Life
Sciences
Hub
Distinctive Michigan assets that can grow a New Michigan
Strong base of entrepreneurism, innovation and manufacturing
newmichigan
n
1
Responsibly
Manage
Finances
2
Effectively &
Efficiently
Provide Public
Services
3
Create a
Competitive
Business
Climate
4
Strategically
Invest for
Future
Growth
5
Accelerate
the Economic
Growth of
Cities & Metros
6
Leverage
Assets to Grow
the New
Michigan
Laying the foundation for building a New Michigan
newmichigan

INTRODUCTION
Thanks to the commitment of policy and industry
leaders, Michigan is making headway in growing a
New Michigan economy in several areas, including:
• Global Engineering Village. A comprehensive
effort to rebrand and grow Michigan’s engineering
sector has been developed and is in the early stages
of implementation. The plan lays out
recommendations for capitalizing on Michigan’s
strong engineering base, attracting and developing
new engineering talent, and strengthening the state’s
economy through this industry sector.
• Global Center of Mobility. A strategy has been
developed to continue Michigan’s leadership role in
the automotive sector as it continues to transition to
an increasingly advanced technology-based sector
and new technologies reinvent how people and
goods are transported. Our state has the potential to
grow up to 100,000 new jobs by positioning itself
for long-term growth.
• Higher Education Marketplace. Michigan’s
colleges and universities continue to help drive
Michigan’s economy by providing the talent and
innovation to increase much needed productivity.
The number of technical degrees and certificates
conferred by our public and private colleges and
universities has risen consistently over the last several
years, growing at a faster pace than the average of
Top Ten states. Our major research universities are
leaders in innovation, ranking 2nd among eight major
university research clusters for combined output in
research spending, commercialization of research
activity, and production of technical talent.
• Gateway to the Midwest. In collaboration with a
broad group of stakeholders, the state issued a
logistics and supply chain strategy and a Logistics and
Supply Chain Commission was created legislatively to
provide infrastructure and policy guidance. Further,
Michigan’s access to worldwide markets is being
expanded through the re-branding of the Detroit
Region Aerotropolis as VantagePort and the
construction of a new international trade crossing.
Please join us as we work to leverage our existing
strengths to accelerate economic growth and build the
New Michigan.

As you can see from the charts below, Michigan is
improving on most key outputs across the six opportunity
areas. Employment as a percent of the workforce was
steady or up in all six areas. In fact, from 2011 to 2012,
employment growth in the six opportunities was twice the
rate for total private sector employment and accounted for
40% of the total increase in private sector employment.
Over 40% of all jobs created in 2012 were
from New Michigan opportunities
————
New Michigan opportunities grew at
twice the average job growth rate
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Understanding This Report
Inputs: A strong showing on input metrics for an opportunity area signals that a state has
a strong foundation in the industries that define that opportunity. Input metrics reflect high
demand, a talented workforce, and a vibrant supply chain, as well as other positives. Each
opportunity has its own specific input metrics, which we report and compare to those of the
tenth-ranked states.
Outputs: Output metrics are a measure of each state’s current economic performance.
For each set of industries that we define as an economic opportunity, we have measured the
levels of per capita real GDP, employment, and earnings. We report these values for
Michigan, for the tenth-ranked comparison states, and show Michigan’s ranking among all
fifty states for each metric.
Potential Growth Scenarios: Using historical data from 2002-2012 for GDP and
earnings, and 2001-2011 for real GDP, we project what Michigan’s performance would be in
2022 under two different scenarios:
1. If Michigan remains on the same trajectory for growth as it had between 2002 and 2012,
2. If Michigan follows the patterns of growth between 2002 and 2012 for the 10th-fastest
growing state in each metric.
INTRODUCTION

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A New Michigan:
In 2012, Business Leaders for Michigan laid out how
Michigan could leverage its existing assets in six
fundamental areas of strength to accelerate economic
growth. Like the rest of the Michigan Turnaround Plan,
these opportunities were identified through extensive
research. They are some of the best opportunities for
growing good paying jobs quickly and over a ten-year
period.
We believe Michigan can build on its assets through
the following six opportunities:
One Vision, Six Opportunities
1. Grow and brand its industrial, production, and talent capacity to develop a reputation as a Global Engineering Village
2. Capitalize on its strategic location and available resources to become an alternative Gateway to the Midwest
3. Invest in a Higher Education Marketplace that boosts the state’s talent base and leverages its innovative strengths
4. Take advantage of Michigan’s natural resources to grow a Natural Resource Economy
5. Amplify our automotive and manufacturing expertise to become a Global Center of Mobility
6. Develop a Life Sciences Hub based on our robust health, medical, and bio-pharmaceutical capabilities

ENGINEERING
TALENT
Global
Engineering
Village
Brand the
engineering
sector
•
Grow engineering
education
capacity
•
Grow
engineering
firms
Potentialwaystoleveragetheassets:Opportunities:RelatedIndustriesAssets:
GEOGRAPHIC
LOCATION
Gateway
to the
Midwest
Consolidate
logistics base into
Michigan
•
Scale the
Aerotropolis
•
Invest in strategic
trade-related
infrastructure
HIGHER EDUCATION
SYSTEM
Higher
Education
Marketplace
Strengthen quality,
affordability,
productivity &
economic impact
•
Grow university
enrollment
•
Grow industry &
university
funded R&D
•
Grow commerciali-
zation of R&D
HEALTH & MEDICAL
EXPERTISE
Life
Sciences
Hub
Create a
Hub for
bio-pharmaceutical
R&D
•
Become the Center
for research,
testing &
medical labs
•
Grow medical
tourism
AUTOMOTIVE
INDUSTRY
Global Center
of
Mobility
Lead in
sustainable mobility
•
Lead in multi-
modal systems
•
Lead in vehicle/
infrastructure
technology to
improve
road safety
•
Grow the auto
industry
NATURAL
RESOURCES
Natural
Resources
Economy
Grow agricultural
processing and
exports
•
Grow leisure
tourism
•
Lead in
alternative energy
technologies
Six Assets and Opportunities to Accelerate Michigan’s Job, Personal Income and Economic Growth
newmichigan
Machinery
manufacturing
Electrical equipment,
appliance, and
component
manufacturing
Nonmetallic mineral
product
manufacturing
Primary metal
manufacturing
Motor vehicle, body,
trailer, and parts
manufacturing
Space research and
technology
Research and
development in
engineering
Engineering services
Air transportation
Rail transportation
Water transportation
Truck transportation
Other transportation
and support
activities
Warehousing and
storage
Highway, street, and
bridge construction
Other heavy and civil
engineering
construction
Process, physical
distribution, and
logistics consulting
Pharmaceutical
and medicine
manufacturing
Medical equipment
and supplies
manufacturing
Medical and
diagnostic
laboratories
Research and
development in
biotechnology
Highway, street, and
bridge construction
Primary metal
manufacturing
Motor vehicle, body,
trailer, and parts
manufacturing
equipment
manufacturing
Rail transportation
and support activities
Urban transit systems
Industrial design and
engineering services
Computer and
electronic product
manufacturing
Crop and animal
production
Forestry, fishing, and
related activities
Oil and gas extraction
Mining, and support
activities for mining
Water transportation
Pipeline transportation
and support activities
Waste management
and remediation
services
Amusement and
recreation
Accommodations
Colleges,
universities, and
professional
schools
Technical and trade
schools
Education
rehabilitation
services
Scientific research
and development
services

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Where we stand
Aggregate Performance on Six Opportunities
Michigan has made progress and has the chance to
improve its performance on key job and economic
indicators across six New Michigan opportunities.
While each of these opportunities is important on its
own, in this section, we review how well Michigan
performed across all of the industries relevant to the
six opportunity areas, in aggregate. See the Appendix
for further detail on the list of industries used in the
calculations.
Outputs
The figures below show Michigan’s economic output
aggregated across the industries representing all six
opportunities in the New Michigan strategy. Michigan
tends to pay well in these industries, though earnings
have declined slightly over the last year, in real terms.
While employment and production, in aggregate, are
slightly below average, GDP and employment in these
industries have improved considerably in the past year. 1
1 There is extensive overlap between industries included in each opportunity, so adding up each
of the opportunities will not equal the values calculated for the aggregate performance on all six
opportunities.
16.0%-
14.0%-
12.0%-
10.0%-
8.0%-
6.0%-
4.0%-
2.0%-
0.0%-
$80,000-
$70,000-
$60,000-
$50,000-
$40,000-
$30,000-
$20,000-
$10,000-
$
11th
O
$66,096
12th
$65,356
Average Earnings
2011 2012 2011 20122010 2011
$9,000-
$8,000-
$7,000-
$6,000-
$5,000-
$4,000-
$3,000-
$2,000-
$1,000-
$-
33rd
$5,196
30th
$5,719
GDP Per Capita
32nd
12.3%
27th
12.9%
Employment/Working-Age Population
Source: BEA, BLS, U.S. Census Bureau
Analysis: Anderson Economic Group, LLC
Top Ten State
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
6
h
-
h
-
-
h-
90,66$
tt11
$20,000
-$30,000
-
6
$40,000
-$50,000
-$60,000
-$70,000
-$80,000
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-$3,000
-$4,000
-$5,000
-$6,000
-$7,000
-$8,000
-$9,000
G
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12.0%
14.0%
16.0%
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$20,000
$
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$
-$10,000
-$20,000
21021102
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-$1,000
-$2,000
110201
etatSneTTepoTTo
-0.0%
-2.0%
-4.0%
1021102 21

AGGREGATEPERFORMANCEONSIXOPPORTUNITIES
Six Opportunities in Comparison to
Overall Economy
At $65,356 in average earnings the six New Michigan
opportunities are almost 40 percent higher than
industry overall. GDP for the six opportunities
represents 17 percent of all industry GDP in the state
and increased at two and a half times the rate of the
economy overall. Employment as a percent of the
workforce for the six New Michigan areas accounts for
20 percent of the total for all industry and increased
five times faster than industry overall.
“Average earnings in
the six New Michigan
opportunities are
nearly 40 percent
higher than industry
overall. ”

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Average Earnings
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
0 -
$47,598$47,649
$65,356$66,096
MI 2011 MI 2012
Aggregate Economy
MI 2011 MI 2012
Six Opportunities
Top Ten State
Real Per Capita GDP
$50,000 -
$45,000 -
$40,000 -
$35,000 -
$30,000 -
$25,000 -
$20,000 -
$15,000 -
$10,000 -
$5,000 -
0 -
$34,560$33,369
$5,719$5,196
Top Ten State
MI 2011 MI 2012
Aggregate Economy
MI 2011 MI 2012
Six Opportunities
80.0% -
70.0% -
60.0% -
50.0% -
40.0% -
30.0% -
20.0% -
10.0% -
0.0% -
63.8%62.3%
12.9%12.3%
Top Ten State
MI 2011 MI 2012
Aggregate Economy
MI 2011 MI 2012
Six Opportunities
sgninraEegarevAAv
-
-
-
-
-
-
-
-$10,000
-$20,000
-$30,000
-$40,000
-$50,000
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-$70,000
-$80,000
88
66
8999444666,777444$$$ 999555,777444$$$
6999000,666666$$$ 666666 555333,555666$$$
--0
etatSneTTepoTTo
-$40,000
-$45,000
-$50,000
ymonocEetagerggA
2102IM1102IM
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seitinutropp
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-$5,000
-$10,000
-$15,000
-$20,000
-$25,000
-$30,000
-$35,000
-$40,000
etatSneTTepoTTo
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6
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91,5$
2102IM1102IM 1102IM
917,5$
2102IM
etatSneTTepoTTo
-50.0%
-60.0%
-70.0%
-80.0%
ymonocEetagerggA pOxiS
%%3.26 8.36
seitinutropp
noitalupoP
-0.0%
-10.0%
-20.0%
-30.0%
-40.0%
etatSneTTepoTTo
%3.21
ymonocEetagerggA
2102IM1102IM
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1102IM
%9.21
seitinutropp
2102IM
Collective Output of the Six
New Michigan Opportunities

AGGREGATEPERFORMANCEONSIXOPPORTUNITIES
Average Earnings
Michigan 2012
Projected 2022 Level
Michigan Top Ten
Source: U.S. Census Bureau, Bureau of Economic Analysis
Real GDP (millions)
Employment
Michigan 2011 Michigan Top Ten
$76,000 -
$74,000 -
$72,000 -
$70,000 -
$68,000 -
$66,000 -
$64,000 -
$62,000 -
$60,000 -
$58,000 -
$62,358
$65,356
$74,013
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
$53,416
$56,457
$84,760
1,000,000 -
900,000 -
800,000 -
700,000 -
600,000 -
500,000 -
400,000 -
300,000 -
200,000 -
100,000 -
678,757
794,329
902,087
sgninraEegarevAAv
-
-
-$58,000
-$60,000
-$62,000
-$64,000
-$66,000
-$68,000
-$70,000
-$72,000
-$74,000
-$76,000
333
8
666
111000,4,44777$$$
5553335,55666$$$
53,26$
333
M
-$58,000
-$80,000
-$90,000
)snoillim(PDGlaeR
neTTepoTTonagihciM
leveL2202detcejorP
2102nagihciM
067,48$ 0
M
-$10,000
-$20,000
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
neTTepoTTonagihciM1102nagihciM
6
777555444,666555$$$
14,35$
--
-
-
-
-600,000
-
-
700,000
-800,000
-900,000
-1,000,000
tnemyolpmE
leveL1202detcejorP
77
777
99
8800,,220099
2233,449977
555777,888777666
77
M
-
-
-
-
-
-100,000
-200,000
-
-
300,000
-
-
400,000
-500,000
leveL2202detcejoojrP
,
Projected Growth Scenarios
There is a lot at stake. If Michigan could boost its
performance to that of a Top Ten state in all six
opportunities through 2022, the state’s total economic
output would jump by $31 billion per year, average
annual earnings would increase by as much as
$12,000, and the state would add as many as 220,000
new jobs compared to its current projected path.2
We can’t anticipate how well Michigan will seize each
opportunity or how global economic conditions might
change during the next decade, but these projections
identify the economic potential of these opportunities
and the necessary role they play in reversing the
previous decade’s long downward trend and realizing a
brighter future in the decades beyond.
2 Projected growth scenarios for the aggregate numbers are based on state
performances across all opportunities, taking overlap out of the equation.
Michigan’s Projected Performance
Compared to Top Ten States

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Where we stand
Base of Entrepreneurism, Innovation and Manufacturing
The underpinnings of the New Michigan growth
strategy are our state’s strong base of
entrepreneurism, innovation and manufacturing
strengths. The Michigan economy, as a whole, will
thrive if the state improves its position in these areas.
This will lead to more companies, better products,
higher exports, better jobs, and, consequently, faster
economic growth.
Inputs
Michigan performs well and continues to improve on
input metrics for entrepreneurism, innovation, and
manufacturing. It ranks in the top twenty states for each
metric, placing in the Top Ten for number of existing
firms, R&D spending, and GDP from goods-producing
industries.Also, entrepreneurism is on the uptick with
over 10,000 new firms taking root in Michigan in the
year 2011, ranking Michigan 13th among all fifty states.
Of these metrics, Michigan made the biggest gains in
the area of venture capital investment.
*For 2010 and 2011
Source: IPEDS, U.S. Census Bureau, BLS, USPTO, U.S. Travel Association
GDP of Goods-Producing Industries (millions)
New Firms*
Existing Firms*
R&D Expenditures at Universities (millions)*
Venture Capital Investment (millions)
MI
$63,716
9,618
141,344
$2,031
$84.8
MI Rank
12th
13th
10th
10th
24th
2011 2012
Top Ten
$72,025
10,387
134,538
$2,160
$384.3
MI
$72,025
10,142
139,510
$2,160
$243.2
MI Rank
10th
13th
9th
10th
16th

BASEOFENTREPRENEURSHIP,INNOVATIONANDMANUFACTURING

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The Six Opportunities
1. Global Engineering Village
Global demand is increasing for high-tech
manufacturing industries such as automotive,
aerospace, medical devices, and precision instruments.
These and other industries rely heavily on quality
engineering, an area that Michigan excels in and can
leverage. For example, the automotive industry is
adopting cutting edge technology and fostering
innovation in advanced manufacturing industries.
Michigan, with its strengths in engineering and
automotive, could capitalize on this trend.
Where we stand
Inputs
Michigan ranks well above average in each of the input
metrics for this opportunity.The state ranks among the
top five states for number of engineering graduates,
engineering patents awarded, and engineers per capita
and in the Top Ten for research and development
spending in engineering fields.
Source: IPEDS, U.S. Census Bureau, NSF, BLS, USPTO
Graduates per 100k
Engineering R&D (millions)
Number of Establishments
Engineers per 100k
Patents Awarded
MI
102
$334.9
8,645
1,270
1,737
MI Rank
4th
9th
6th
1st
4th
2011 2012
Top Ten
90
$294.3
5,931
1,049
1,001
MI
105
$336.3
8,674
1,269
1,901
MI Rank
3rd
9th
6th
3rd
4th

THESIXOPPORTUNITIES
Outputs
Overall, Michigan ranks highly on output metrics for
industries in the Global Engineering Village opportunity.
Michigan ranks second in GDP and employment in
Global Engineering Village industries, while it ranks
20th for average earnings.
Over one in twenty residents of working age (18-64) in
the state works in a Global Engineering Village industry,
6.0% -
5.0% -
4.0% -
3.0% -
2.0% -
1.0% -
$100,000 -
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
19th
$77,503
20th
$75,425
Average Earnings
2011 2012 2011 20122010 2011
$3,500 -
$3,000 -
$2,500 -
$2,000 -
$1,500 -
$1,000 -
$500 -
2nd
$2,687
2nd
$3,141
GDP Per Capita
2nd
5.1%
2nd
5.5%
Top Ten State
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$77,503$77 503
th
$77,503 $75,425$75 425
th999t11
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
-$80,000
-$90,000
-$100,000
$75,425
ge EarningsveraA
02020
55
th
5 $2,687
nd
-
-
-
-
-
2
-$1,000
-$1,500
-$2,000
-$2,500
-$3,000
-$3,500
GDP Per Ca
$2,687
nd $3,141
nd
pitaGDP Per Ca
2
5.1%
nd
-2.0%
-3.0%
-4.0%
-5.0%
-6.0%
5.5%
22
orking-Age PopulaEmployment/W
5.5%
nd
tionorking-Age Popula
$10,000
$20,000
-$10,000
-$20,000
20122011
2010
--$500
$1,000
20112010
teStaenop TTenTTop T
-1.0%
20122011 2012
and employment in this sector grew more than three
times the rate of overall private sector employment
from 2011 to 2012. Furthermore, per capita GDP in
these industries grew by over 15% from the year 2010
to 2011 in Michigan. The drop in earnings from 2011
to 2012 was largely due to a decrease in average
earnings for workers in the auto manufacturing and
auto parts manufacturing industries in the state.

I2014
ITHENEWMICHIGAN
PAGES
15 I 16
Potential Growth Scenarios
If Michigan can achieve Top Ten growth in these
industries, the state will realize an increase of $9 billion
in GDP, 30,000 jobs, and $15,000 in average annual
earnings for those working in these industries.
How to leverage our engineering talent
Michigan can continue to position itself as a Global
Engineering Village by branding Michigan as a hotbed
for engineers, expanding its engineering capacity,
growing its engineering firms, increasing the number of
Michigan students that enter engineering programs
and expanding efforts to attract engineers from out-of-
state and retain those already in Michigan. Engineering
stakeholder groups, working together, can help
implement a rebranding strategy to show the breadth
of engineering work occurring and available in
Michigan, what is needed to add jobs and promote
investment in Michigan. A focus should be on
highlighting the high tech nature of the work and
opportunities in the aerospace, medical device,
precision instrument and automotive arenas.
$100,000 -
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
Average Earnings
Michigan 2012
Michigan Top Ten
$73,142$75,425
$89,958
$45,000 -
$40,000 -
$35,000 -
$30,000 -
$25,000 -
$20,000 -
$15,000 -
$10,000 -
$5,000 -
Real GDP (millions)
400,000 -
350,000 -
300,000 -
250,000 -
200,000 -
150,000 -
100,000 -
50,000 -
Employment
$26,234
$31,014
$40,903
229,894
338,242
368,544
verage EarningsAAverage Earnings
-$10,000
-$20,000
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
-$80,000
-$90,000
-$100,000
$89,958$89 958$89,958
$73,142$75,425$75 425
888
-$10,000
Michigan 2012
-$40,000
-$45,000
enop TTenTTop TMichigan
Michigan 2012
$40,903
(millions)Real GDP
$40,903
-$5,000
-$10,000
-$15,000
-$20,000
-$25,000
-$30,000
-$35,000
Michigan 2011
$26,234$
$31,014
enop TTenTTop TMichiganMichigan 2011
-250,000
-300,000
-350,000
-400,000
368,544
Employment
368 544
338,242
44
-50,000
-100,000
-150,000
-200,000
Michigan 2012
229,894229 894
enop TTenTTop TMichiganMichigan 2012
The Next Steps

THESIXOPPORTUNITIES
During 2013, the following accomplishments helped
boost the state’s engineering sector:
• Development of a clear plan for attracting and
retaining engineering talent and increasing the
engineering sector’s contribution to Michigan’s
economy over the next ten years.
• Development of a plan of action, in collaboration with
several stakeholders.
• Hosting of the National Engineering Forum in
Michigan to increase awareness of the importance of
engineering and develop ideas for engaging our
youth to consider careers in engineering.
• Creation of the Michigan Automotive Office, which
among other things will identify key technology
trends for talent development, much of which is in
the engineering space.
• In 2013, a partnership was developed with MDOT,
the Black Caucus Foundation and the construction
industry focused on exposing nearly 1,000 Detroit
Public School students to the numerous career
opportunities within the engineering and construction
fields via a Construction Science Expo.
Industry Highlights
“The state ranks among the
top five states for number of
engineering graduates,
engineering patents awarded. ”

I2014
ITHENEWMICHIGAN
PAGES
17 I 18
2. Gateway to the Midwest
The movement of goods and people is crucial to
economic growth and success. Michigan’s geographic
location enables it to be accessible by road, rail, sea, or
air. Michigan can build on this advantage by advancing
as an integrated, multi-modal hub for trade.
Specifically, Michigan has the capacity to encourage
the development of aviation-dependent businesses and
an international border crossing. These actions could
contribute to expansion of a logistics infrastructure
crucial to facilitating trade in the Midwest.
Where we stand
Inputs
Michigan ranks well above average in its performance
for all but one input metric for the Gateway to the
Midwest opportunity. Michigan ranks in the top three
states for transborder trade with Mexico and retains 1st
place for transborder trade with Canada. For amount of
cargo moved by freight and rail in and out of the state,
Michigan remains among the top 20 states.
*For 2010 and 2011
Source: IPEDS, U.S. Census Bureau, BLS, U.S. Census Bureau, Association of American Railroads, Bureau of Transportation Statistics
Graduates per 100k
Transportation Expenses by State & Local Gov (millions)*
Carloads of Freight by Rail, Origination (millions)
Carloads of Freight by Rail, Termination (millions)
Lbs. of Freight Departing Airports (millions)
Lbs. of Freight Landing at Airports (millions)
Imports from Canada (billions)
Exports to Canada (billions)
Imports from Mexico (billions)
Exports to Mexico (billions)
MI
16
5,519
$5,783
525
579
244
326
$46.8
$23.4
$32.9
$9.0
MI Rank
29th
14th
15th
14th
16th
21st
16th
1st
1st
2nd
3rd
2011 2012
Top Ten
28
6,504
$7,150
765
893
765
856
$9.4
$8.3
$5.0
$2.9
MI
16
5,783
$5,300
566
567
273
345
$49.6
$25.3
$38.1
$10.5
MI Rank
29th
11th
17th
14th
16th
18th
18th
1st
1st
2nd
3rd

THESIXOPPORTUNITIES
Outputs
Earnings in the Gateway to the Midwest opportunity are
above average, ranking 20th among the fifty states.
While rankings for GDP and employment output metrics
are lower, employment in logistics industries grew 30
percent more than the average for all private sector
employment from 2011 to 2012. Michigan can further
improve on these metrics if it leverages its position as a
manufacturing hub and as a convenient location for
global trade to bring more transportation and logistics
industries to the state.
3.5% -
3.0% -
2.5% -
2.0% -
1.5% -
1.0% -
0.5% -
0.0% -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
20th
$54,556
20th
$54,663
Average Earnings
2011 2012 2011 20122010 2011
$1,600 -
$1,400 -
$1,200 -
$1,000 -
$800 -
$600 -
$400 -
$200 -
40th
$787
41st
$838
GDP Per Capita
44th
1.7%
44th
1.7%
Top Ten State
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$54,556
th
$54,663
th20
-$20,000
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
ge EarningsveraA
20
$54,663
th
$787
404040
$400
-$600
-$800
-$1,000
-$1,200
-$1,400
-$1,600
GDP Per Ca
$787
thth
$838
st
000
t
pitaGDP Per Ca
4141
1 7%1 7%
th
-1.0%
-1.5%
-2.0%
-2.5%
-3.0%
-3.5%
1 7% 1 71 7
44thth444444
1 7
4444
7%7%
th
7%
thth444
$10,000
$20,000
-$10,000
$20,000
20122011
2010
$$78$78
-$200
-$400
20112010
8787
1.7%
-0.0%
-0.5%
20122011
1.7%1.7%
2012
“Michigan ranks in
the top three states
for transborder trade
with Mexico and
retains 1st place
for transborder
trade with Canada. ”

I2014
ITHENEWMICHIGAN
PAGES
19 I 20
If Michigan can realize Top Ten growth in the Gateway
to the Midwest opportunity, it would mean an additional
$2.8 billion in state GDP, an additional 12,000 jobs,
and an additional $5,500 in annual earnings for each
of the 115,000 employees in these industries by the
year 2022, when compared to current levels.
How to leverage our geographic location
Leveraging this asset can be done by consolidating a
logistics base into Michigan, scaling and aggressively
marketing VantagePort, and investing in strategic
trade-related infrastructure such as roads, bridges,
tunnels, and rails. Building a strong logistics
infrastructure requires a broad, unified commitment
from state and local administrations and permitting
authorities, as well as the private sector.
Average Earnings
Michigan 2012
Michigan Top Ten
Real GDP (millions)
Employment
$58,000 -
$57,000 -
$56,000 -
$55,000 -
$54,000 -
$53,000 -
$52,000 -
$51,000 -
$50,000 -
$49,000 -
$51,361
$54,663
$57,502
$14,000 -
$12,000 -
$10,000 -
$8,000 -
$6,000 -
$4,000 -
$2,000 -
$9,252$8,276
$12,063
140,000 -
120,000 -
100,000 -
80,000 -
60,000 -
40,000 -
20,000 -
95,807
105,268
117,939
sgninraEegarevAAv
-
-
-
-$49,000
-$50,000
-$51,000
-$52,000
-$53,000
-$54,000
-$55,000
-$56,000
-$57,000
-$58,000
222
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$49,000
-$12,000
-$14,000
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-$2,000
-$4,000
-$6,000
-$8,000
-$10,000
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3
-80,000
-100,000
-120,000
-140,000
tnemyolpmE
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62,501
00885599
999
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-20,000
-40,000
-60,000
-80,000
leveL2202detcejojrP
770088,5599
The Next Steps

THESIXOPPORTUNITIES
Over the past year, the most significant developments
to advance Michigan’s logistics/gateway opportunity
have been:
• The Detroit Region Aerotropolis was re-launched and
re-branded during 2013, and is now known as
VantagePort. A permanent CEO has been hired to
develop and lead efforts to promote Michigan’s
geographic access to worldwide markets.
• In 2013, the VantagePort region benefitted from
$660 million worth of new real and personal property
investment and the creation of 974 new jobs.
• Establishment of a new Logistics and Supply Chain
Commission to provide infrastructure and policy
guidance to state government and economic leaders.
• Issuance of a logistics and supply chain strategy,
developed in collaboration with a broad group of
stakeholders.
• Increased collaboration among various regions of the
state, which created new logistics/supply chain
partnerships during the past year.
Industry Highlights

I2014
ITHENEWMICHIGAN
PAGES
21 I 22
3. Higher Education Marketplace
Economic growth is being driven by gains in
productivity, and gains in productivity are driven by
talent and talent-generated innovation. As a primary
source of both talent and innovation, our higher
education system represents a major opportunity to
grow Michigan’s economy. In addition, higher education
institutions are drivers of economic growth as they
bring students, employers, and additional spending to
local economies.
Where we stand
Inputs
Michigan is ranked in the Top Ten states for total
degrees awarded, total enrollment, and STEM degrees
awarded. However, Michigan ranks considerably lower
than the national average in terms of out-of-state
enrollment and state appropriations to public
universities.
+For Fall 2010
* For 2010 and 2011
Source: IPEDS, U.S. Census Bureau.
Total Degrees Awarded
STEM Degrees Awarded
Total FTE Enrollment
Out-of-State Enrollment+
State Appropriations per Capita*
MI
145,488
12,243
504,870
$180.9
MI Rank
9th
7th
8th
32nd
2011 2012
Top Ten
133,213
8,877
454,660
28.8%
$263.2
MI
148,585
12,750
516,973
9.4%
$173.6
MI Rank
9th
7th
9th
45th
36th

THESIXOPPORTUNITIES
Outputs
Earnings in the Higher Education Marketplace
opportunity have decreased as part of a broad-based
reduction in average salary and wages for higher
education industries in Michigan. However, compared
to other states average earnings in this opportunity are
relatively high. Increasing enrollment of in-state
students and attracting more students from outside of
Michigan could help raise Michigan’s lower rankings
for GDP and employment.
3.5% -
3.0% -
2.5% -
2.0% -
1.5% -
1.0% -
0.5% -
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
9th
O
$85,538
11th
$84,281
Average Earnings
2011 2012 2011 20122010 2011
$500 -
$400 -
$300 -
$200 -
$100 -
0-
34th
$239
34th
$239
GDP Per Capita
31st
2.2%
30th
2.3%
Top Ten State
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
88
h
8333555,5,55888$$$
99t9
-$30,000
-$40,000
-$50,000
- 11$60,000
-$70,000
- h
$80,000
-$90,000
1
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$200
-$300
-
-
$400
-$500
G
hh htt44 h
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-1.0%
-1.5%
-2.0%
-2.5%
-3.0%
-3.5%
31
3
30
2.2
s31 30
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h0
noitalupoP
3
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$10,000
$20,000
-$10,000
-$20,000
21021102
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110201
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etatSneTTepoTTo
-0.5%
1021102 21

I2014
ITHENEWMICHIGAN
PAGES
23 I 24
On its current trajectory, by 2022 Michigan will see an
increase in employment of 23,000 in higher education.
This would be accompanied by a slight uptick in
earnings but a decrease in overall contribution to GDP
in the state. If Michigan grows at the Top Ten rate, then
by 2022, the state will have $200 million more in real
GDP, nearly 40,000 more jobs, and the 181,000
Michigan workers who are in the higher education
industry will have $10,000 more in average annual
earnings.
How to leverage our higher education assets
Michigan’s opportunities as a Higher Education
Marketplace can be facilitated by growing community
college and university enrollment, growing industry-
funded and university-funded research and
development, and growing the commercialization of
research and development. To accomplish this,
Michigan should set a concrete goal of being among
the Top Ten states for higher education, measured in
quality, affordability, productivity and economic impact.
The current performance-based funding approach for
state support encourages our colleges and universities
to strive to be best in class without undermining the
strength of these institutions. Similarly, colleges and
universities should increase in- and out-of-state
enrollments and accelerate support for and spin-off of
business creation opportunities.
Average Earnings
Michigan 2012
Michigan Top Ten
Real GDP (millions)
Employment
$98,000 -
$96,000 -
$94,000 -
$92,000 -
$90,000 -
$88,000 -
$86,000 -
$84,000 -
$82,000 -
$80,000 -
$85,135$84,281
$95,895
$3,000 -
$2,500 -
$2,000 -
$1,500 -
$1,000 -
$500 -
$2,092
$2,358
$2,569
200,000 -
180,000 -
160,000 -
140,000 -
120,000 -
100,000 -
80,000 -
60,000 -
40,000 -
20,000 -
164,167
141,470
180,785
sgninraEegarevAAv
-
-
-
-
-
-
-
-
-
-$80,000
-$82,000
-$84,000
-$86,000
-$88,000
-$90,000
-$92,000
-$94,000
-$96,000
-$98,000
5$ 5
551
9988,5599$$
82,48$ 3311,5588$$
55
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--$80,000
-$2,500
-$3,000
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-$500
-$1,000
-$1,500
-$2,000
9
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90,2$
-120,000
-140,000
-160,000
-180,000
-200,000
tnemyolpmE
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7,
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-20,000
-40,000
-60,000
-80,000
-100,000
leveL2202detcejojrP
The Next Steps

THESIXOPPORTUNITIES
In 2013, the following actions helped advance the
Higher Education Marketplace opportunity area:
• There are 1.3 million alumni from Michigan public
universities living in Michigan representing more
than 61 percent of those with a four-year degree,
and they earned a total $47 billion dollars in salaries
and wages in 2012.
• Degrees and certificates earned at Michigan’s public
universities increased by 13 percent; the number of
bachelor’s degrees awarded grew by more than 16
percent.
• Since 2008, an average of 14 new start-up
companies a year have been cultivated at Michigan’s
major research universities and in 2012 these
universities ranked 4th among eight peer research
university clusters at over $2 billion in spending on
research and development.
• Baccalaureate degrees are now offered at some
community colleges to increase college attainment.
• All 43 of Michigan’s public colleges and universities
are expected to sign a new Michigan Transfer
Agreement, which should dramatically improve
transfer of core college courses between public
institutions in the state.
Industry Highlights
“Michigan ranks in the top ten
states for total degrees awarded,
total enrollment, and STEM
degrees awarded. ”

I2014
ITHENEWMICHIGAN
PAGES
25 I 26
4. Natural Resources Economy
Today, the demand for natural resources is more
pressing than ever. The provision of these commodities,
as well as the development of technologies that
maximize the production of scarce resources, is crucial
for succeeding in natural resources markets. Michigan
has competitive advantages in agricultural innovation,
and can leverage its natural beauty to increase its
tourism industry. Policies and regulations that grow
agricultural industries and tourism can help Michigan
to capitalize on the opportunity that its natural assets
provide.
Where we stand
Inputs
Michigan has high performance on most input metrics
related to the Natural Resources Economy. The state
ranks in the Top Ten for number of establishments in
natural resources industries. The number of graduates
last year in natural-resources-related fields was lower
than in most states, but improved considerably from
2011 to 2012. The state ranked 15th in patents
awarded for natural resources-related applications,
which captures the level of innovation by companies
and inventors in the state. Michigan also ranked 15th
in expenditures for travel.
*For 2010 and 2011
Source: IPEDS, U.S. Census Bureau, BLS, USPTO, U.S. Travel Association
Graduates per 100k
Patents Awarded
Travel Expenditures (millions)*
MI
31
13,509
89
$15,293
MI Rank
43rd
11th
13th
14th
2011 2012
Top Ten
73
13,571
128
$19,273
MI
42
13,571
90
$16,194
MI Rank
37th
10th
15th
15th

THESIXOPPORTUNITIES
Outputs
Michigan’s average earnings in the Natural Resources
Economy opportunity are above average, ranking 21st
among all states. Michigan ranks lower for employment
in this opportunity, but employment grew more than 30
percent above the average for all private sector
employment from 2011 to 2012. GDP is lower due in
part to the fact that Michigan under-leverages its natural
resources, including mineral production, food processing
and water. Both metrics can improve by pursuing
responsible, sustainable production of these resources.
8.0% -
7.0% -
6.0% -
5.0% -
4.0% -
3.0% -
2.0% -
1.0% -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
21st
$49,882
21st
$50,642
Average Earnings
2011 2012 2011 20122010 2011
$4,000 -
$3,500 -
$3,000 -
$2,500 -
$2,000 -
$1,500 -
$1,000 -
$500 -
47th
$1,066
46th
$1,097
GDP Per Capita
39th
3.8%
37th
3.9%
Top Ten State
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$49,882
st
$ , $50,642
st212121
-$20,000
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
$ ,
ge EarningsveraAAvera
212121
2
st
-
-
-
-
$1,000
-$1,500
-$2,000
-$2,500
-$3,000
-$3,500
-$4,000
pitaGDP Per Ca
3.8%
th
2.0%
-3.0%
-4.0%
-5.0%
-6.0%
-7.0%
-8.0%
th
3.9%
37th393939 37
37
3.9%
thth
777
$10,000
$20,000
--$10,000
$20,000
20122011
2010
$1,066
4747-
-
-$500
-$1,000
20112010
$1,066
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$1,097
th77 th4646
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-1.0%
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20122011
3 8% 3.9%3 93 99%9%
2012
9%

I2014
ITHENEWMICHIGAN
PAGES
27 I 28
The Natural Resources Economy has steadily grown in
Michigan over the past decade. Even at the Michigan
growth rates of the past ten years, Michigan will realize
growth in real GDP of $1.2 billion and an increase of
about 5,000 jobs by the year 2022. Annual earnings
would grow considerably, as well, to an average of
$60,000. Employment and real GDP would increase
much faster, though, if the state were to attain the
same growth levels as the 10th-fastest-growing state.
Real GDP would increase by $3.1 billion and jobs
would increase by 49,000 by the year 2022.
How to leverage our natural resources
Agricultural processing and exports can be increased
by supporting policies and regulations designed to
grow the industry, increasing agricultural engineering
solutions, expanding the export transportation
infrastructure and helping expand overseas markets. To
grow Michigan’s tourism opportunities, we need to
market our easy access to major population centers,
relatively low costs, and the intrinsic and varied
attractiveness of our natural amenities, and
strategically develop travel and hospitality
infrastructures. With our plentiful supply of fresh water,
we can work now to attract water-intensive industries
to the state that adopt safe, sustainable practices to
prevent the diversion of water outside of Michigan.
Finally, we should also pursue the prudent utilization of
natural shale, wind and precious minerals resources.
Average Earnings
Michigan 2012
Michigan Top Ten
Real GDP (millions)
Employment
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
$60,180
$50,642
$61,034
$16,000 -
$14,000 -
$12,000 -
$10,000 -
$8,000 -
$6,000 -
$4,000 -
$2,000 -
$11,984$10,835
$14,031
350,000 -
300,000 -
250,000 -
200,000 -
150,000 -
100,000 -
50,000 -
244,946
239,938
289,048
sgninraEegarevAAv
-$10,000
-$20,000
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
40
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46,05$
81,06$ 4
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-$14,000
-$16,000
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-$2,000
-$4,000
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-$8,000
-$10,000
-$12,000
1,
45
30,41$
38,01$ 89,11$
1
-200,000
-250,000
-300,000
-350,000
tnemyolpmE
leveL1202detcejorP
88
8
4400,998822
39,932
88
M
-50,000
-100,000
-150,000
-200,000
leveL2202detcejojrP
666444999,444444222
The Next Steps

THESIXOPPORTUNITIES
• Michigan is second only to California in terms of
agriculture diversity with over 300 commodities
commercially produced. The agriculture and food
industry now contributes $96 billion to our state’s
economy—an increase of $25 billion since 2009,
and well on the way to meeting an industry-wide
goal of $100 billion by 2015.
• The development of the New International Trade
Crossing provides another viable trade route for
Michigan agricultural exports and imports via the
Detroit/Windsor corridor. Michigan agricultural
exports are up 16 percent year over year, with
approximately 60 percent of all agricultural exports
shipped to Canada, our largest trading partner.
• Michigan Department of Agriculture and Rural
Development secured $3 million grant program to
fund proposals to advance agricultural processing.
• Michigan’s tourism market brought in an estimated
$18.1 billion in visitor spending and provided
200,000 jobs for Michiganders in 2012.
• Michigan’s surplus growing forest stock (annual net
growth minus harvest) is the largest in the nation,
2.3 times the amount harvested annually,
representing significant expansion potential of a $17
billion dollar industry.
• Michigan also ranks 9th nationally for biomass energy
production, and has significant expansion potential
from the millions of tons of harvest and processing
residue produced, but faces challenges in price
efficiency and interconnection with electric grids.
• In 2013, extraction of the state’s oil, natural gas and
minerals generated $39 million to support Michigan’s
outdoor and natural resource assets such as parks,
trails, and public waterway and public land access.
Further, the Natural Resources Trust Fund board
granted $27.7 million for 76 projects to develop and
improve public recreation opportunities statewide.
• Wind energy has been the primary source of new
renewable energy in Michigan. At the end of 2013,
there were over 1,100 MW of utility-scale wind
projects in operation in Michigan with plans to increase
generation to over 1,400 MW by the end of 2014.
Industry Highlights
“Michigan ranked 15th
in patents awarded for
natural resources-
related applications,
which captures the
level of innovation by
companies and
inventors in the state. ”

I2014
ITHENEWMICHIGAN
PAGES
29 I 30
5. Global Center of Mobility
Michigan has been a center for automotive innovation
for as long as cars have existed. The state has a
unique opportunity to continue to expand with the
automotive industry, by growing the existing
automotive cluster to a hub of diverse set of
industries that meet the demands of global mobility.
Michigan can increase its focus on multi-modal
sustainable transportation. In addition, developing
cutting-edge research and technology for vehicles will
help Michigan advance as a center of mobility.
Where we stand
Inputs
Michigan has performed consistently well, and is
generally improving, on input metrics for the Global
Center of Mobility opportunity.The state is ranked in the
Top Ten for patents awarded, and the share of national
GDP, earnings, and employment in mobility industries. Its
position in share of national GDP improved considerably
between 2010 and 2011.The state improved slightly in
the number of auto-ready graduates per population of
100,000 between 2011 and 2012.
*For 2010 and 2011
Source: IPEDS, U.S. Census Bureau, BLS, USPTO, BEA
Auto-Ready Graduates per 100k
Patents Awarded
Share of Nat’l GDP*
Share of Nat’l Employment
Share of Nat’l Earnings
MI
61
13,509
1,344
3.1%
4.7%
4.45
MI Rank
17th
15th
2nd
8th
4th
5th
2011 2012
Top Ten
71
13,369
440
2.9%
3.3%
3.1%
MI
64
11,286
1,608
4.0%
4.7%
4.3%
MI Rank
16th
15th
2nd
4th
3rd
6th

THESIXOPPORTUNITIES
Outputs
Overall, the state’s performance in industries related to the
Global Center of Mobility opportunity is above average,
with Michigan ranking in the top five for employment in
Global Center of Mobility industries. Employment in this
sector grew more than three times the rate of overall
private sector employment from 2011 to 2012.
Earnings in these industries, however, have fallen even
while GDP and employment grow. This is particularly
the case in the automotive manufacturing and
automotive parts manufacturing industries.
6.0% -
5.0% -
4.0% -
3.0% -
2.0% -
1.0% -
$100,000 -
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
18th
$79,984
20th
$77,823
Average Earnings
2011 2012 2011 20122010 2011
$3,000 -
$2,500 -
$2,000 -
$1,500 -
$1,000 -
$500 -
16th
$2,428
11th
$2,794
GDP Per Capita
5th
5.0%
6th
5.4%
Top Ten State
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$79,984$79 984
th
-
$79,984
-
$77,823$77 823
th-
888811
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
-$80,000
-$90,000
-$100,000
$77,823
ge EarningsveraA
02020
33
th
3
$2,428
16
-
16
-
-
- 16
-
-
$1,000
-$1,500
-$2,000
-$2,500
-$3,000
GDP Per Ca
$2,428
th
th
6 $2,79466 $2,794
pitaGDP Per Ca
thth111111
5.0%
th
-2.0%
-3.0%
-4.0%
-5.0%
-6.0%
5.4%
65
5.4%
th
6
$10,000
$20,000
-$10,000
-$20,000
20122011
2010
--$500
20112010
-1.0%
20122011 2012

I2014
ITHENEWMICHIGAN
PAGES
31 I 32
If Michigan were to achieve the growth rate of the
10th-fastest growing state for each metric, Michigan’s
GDP, employment, and average earnings in these
industries would increase from their current levels by
245%, 31%, and 22%, respectively, by 2022.
How to leverage our automotive industry
Michigan is the number one state for vehicle research
and development, the number one state for vehicle
production and home to 47 of the top 50 automotive
suppliers. As the auto sector transitions into a mobility
industry, Michigan is uniquely positioned to design and
build the future of transportation with its unmatched
network of suppliers, talent, and R&D capabilities. To
remain the leader of the auto sector Michigan must
move forward strategically and aggressively.
Specifically, Michigan must foster stronger public-
private leadership, aggressively market its assets and
the auto industry, attract more mobility conferences,
develop a stronger talent pipeline, establish facilities
that enable OEM-supplier collaboration and increase
mobility-focused venture capital. As the industry
changes, the state can leverage its automotive and
mobility industry prominence to lead in sustainable
mobility, multi-modal systems, vehicle and
infrastructure technology to improve road safety, and
auto industry growth.
Average Earnings
Michigan 2012
Michigan Top Ten
Real GDP (millions)
Employment
$100,000 -
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
$75,635$77,823
$94,770
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
$23,546$27,583
$67,586
450,000 -
400,000 -
350,000 -
300,000 -
250,000 -
200,000 -
150,000 -
100,000 -
50,000 -
233,761
330,676
413,027
sgninraEegarevAAv
--
-
-
-
-
-
-
-
-
-$10,000
-$20,000
-$30,000
-$40,000
-$50,000
-$60,000
-$70,000
-$80,000
-$90,000
-$100,000
0$ 0
55333
7777,4499$$
222888,777777$$$ 3366,5577$$
00
M
$10,000
-$70,000
-$80,000
)snoillim(PDGlaeR
neTTepoTTonagihciM
leveL2202detcejorP
2102nagihciM
M
-$10,000
-$20,000
-$30,000
-$40,000
-$50,000
-$60,000
6$ 6
66333
8855,7766$$
888555,777222$$$ 4455,3322$$
66
-
-
-
250,000
-300,000
-350,000
-
-
400,000
-450,000
tnemyolpmE
leveL1202detcejorP
7
6
20,314
76,033
7
M
-
-
-
-
-
-50,000
-100,000
-
-
150,000
-
-
200,000
-250,000
leveL2202detcejojrP
111666777,333333222
The Next Steps

THESIXOPPORTUNITIES
• During 2013, the automotive industry took a major
step forward with the creation of new government
structures for economic advancement, specifically
with the establishment of the Automotive Industry
Office within the Michigan Economic Development
Corporation.
• A state mobility plan was developed by industry
stakeholders that calls for fostering private public
leadership, aggressively marketing more mobility
conferences, developing a stronger talent pipeline,
establishing facilities that enable OEM-supplier
collaboration and increasing mobility-focused
venture capital.
• For the fourth consecutive year, automotive
manufacturing employment increased by 3.6
percent in Michigan from 148,300 in December
2012 to 153,600 in December 2013.
• For the fourth consecutive year, light vehicle
production increased by 8.1 percent in Michigan from
2,252,219 in 2012 to 2,434,460 in 2013 or by 8.1
percent. This production level is at least twice that
of any other U.S. state or more than all of Canada.
Industry Highlights
“Michigan ranked in the
top five for employment
in Global Center for
Mobility industries. ”

I2014
ITHENEWMICHIGAN
PAGES
33 I 34
6. Life Sciences Hub
A demand for higher quality of life persists among
developing and developed nations alike. The search for
solutions in the life sciences is causing health care
expenditure growth to outpace GDP growth in the
developed world. Michigan already has a high amount
of bio-science degrees awarded, as well as high-end
medical research facilities paired with capacity in
hospital and healthcare facilities. Bio-pharmaceutical
product development, medical device innovation, and
market research and testing can help to promote the
development of Michigan as a Life Sciences Hub.
Where we stand
Inputs
Michigan ranks in the top half of states for each input
metric that we evaluate for life sciences industries. The
state made significant improvements in venture capital
investment, more than tripling the amount of venture
capital for life science firms from 2011 to 2012. While
the amount of spending at universities for research and
development in the life sciences decreased somewhat
from 2011 to 2012, Michigan retained its position at
10th place among all states in this category. While still
in the top 20, Michigan’s rank did drop for the number
of graduates with concentration in the life sciences.
*For 2010 and 2011
**For 2012 and 2013
Source: IPEDS, U.S. Census Bureau, BLS, NSF, NIH, USPTO. Analysis: Anderson Economic Group, LLC
Graduates per 100k
Life Sciences R&D Spending at Universities (millions)*
Venture Capital Investment in Life Sci. Firms (millions)
Active Clinical Trials**
Patents Awarded
MI
314
940
$1,122
$27.9
1,775
235
MI Rank
13th
13th
10th
24th
11th
19th
2011 2012
Top Ten
357
1,308
$1,089
$139.8
3,794
571
MI
303
972
$1,089
$97.7
2,889
275
MI Rank
19th
13th
10th
14th
13th
19th

THESIXOPPORTUNITIES
Outputs
Overall, the state’s performance on output metrics in life
sciences industries is about average, with Michigan
ranking around 20th for personal income, GDP and
employment.
The state has improved slightly in comparison to its
peers on employment and earnings.Within the industries
related to the Life Sciences Hub opportunity in Michigan,
pharmaceutical and medicine manufacturing had the
greatest employment gains, while medical equipment
and supplies manufacturing saw the greatest increase in
average earnings.
0.70% -
0.60% -
0.50% -
0.40% -
0.30% -
0.20% -
0.10% -
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
22nd
$68,532
20th
$69,068
Average Earnings
2011 2012 2011 20122010 2011
$800 -
$700 -
$600 -
$500 -
$400 -
$300 -
$200 -
$100 -
29th
$316
28th
$320
GDP Per Capita
22nd
0.42%
20th
0.42%
Top Ten State
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$68,532
ndnd
-
-
$
-
--
- nd222222
-
-
$30,000
-$40,000
- $69,068
-
$50,000
- thth$60,000
-
-
$70,000
-$80,000
-$90,000
$
ge EarningsveraA
th202020
8
hhh
29
-
-
29-
$200
-$300
-$400
-$500
-$600
-$700
-$800
GDP Per Ca
0.20%
0.30%
0.40%
0.50%
0.60%
0.70%
thth th99
pitaGDP Per Ca
28 0.42%
nd
-0.20%
-0.30%
-0.40%
-0.50%
-0.60%
-0.70%
22
0.42%
2022 0
0.42%
th0
0
$10,000
$20,000
-
-
-$10,000
-$20,000
20122011
2010
$316
-$100
-$200
0.10%
20112010
$316 $320
28
-0.10%
20122011 2012

I2014
ITHENEWMICHIGAN
PAGES
35 I 36
If Michigan were to achieve Top Ten growth in these
industries, they have significant economic potential.
Michigan’s real GDP in these industries would nearly
double, to $5.9 billion from $3.2 billion.Also,
employment would increase to 34,000 and average
annual earnings would increase to an impressive
$81,000.
How to leverage our health and medical
expertise
Michigan can leverage its health & medical expertise and
establish itself as a Life Sciences Hub by creating a hub
for bio-pharmaceutical R&D, becoming a center for
research, testing, and medical labs, and growing medical
tourism.
Average Earnings
Michigan 2012
Michigan Top Ten
Real GDP (millions)
Employment
$90,000 -
$80,000 -
$70,000 -
$60,000 -
$50,000 -
$40,000 -
$30,000 -
$20,000 -
$10,000 -
$67,093$69,068
$80,818
$7,000 -
$6,000 -
$5,000 -
$4,000 -
$3,000 -
$2,000 -
$1,000 -
$2,857
$3,160
$5,917
40,000 -
35,000 -
30,000 -
25,000 -
20,000 -
15,000 -
10,000 -
5,000 -
22,950
26,209
34,277
sgninraEegarevAAv
-
-
-
-
-
-
-
-
-
-
$10,000
-$20,000
-
-
$30,000
-$40,000
-
-
$50,000
-$60,000
-
-
$70,000
-
-
$80,000
-$90,000
88
333888
1188,,0088$$
666000,999666$$$ 999000,777666$$$
88
M
$10,000
-$6,000
-$7,000
)snoillim(PDGlaeR
neTTepoTTonagihciM
leveL2202detcejorP
2102nagihciM
M
-$1,000
-$2,000
-$3,000
-$4,000
-$5,000
7,
77
0
19,5$
61,3$
5588,,22$$
-25,000
-30,000
-35,000
-40,000
tnemyolpmE
leveL1202detcejorP
, 77
9
7722,,4433
02,62
M
-5,000
-10,000
-15,000
-20,000
leveL2202detcejojrP
00
902,62
5599,2222
The Next Steps
“Michigan made
significant improvements
in venture capital
investment, more than
tripling the amount of
venture capital for
life science firms
from 2011 to 2012. ”

THESIXOPPORTUNITIES
Industry Highlights
During 2013, the following accomplishments helped
grow the life sciences sector:
• Michigan attracted $70.2 million in venture capital
investment for 16 companies in 2013. The state was
third among eleven Midwest states in total amount
raised.
• Michigan ranks 10th nationally in number of clinical
trials conducted (8,403) through February 2014, and
of them, 5,305 clinical trials were sponsored by the
biopharmaceutical industry.
• Wayne State University received a 10-year, $165.9
million renewal of its Perinatology Research Branch
that will continue conducting critical perinatal and
maternal-fetal medical research in Detroit.
• Esperion Therapeutics, based in Plymouth, at the
Michigan Life Sciences Innovation Center, successfully
raised a $70 million initial public offering in 2013 to
support ongoing development of non-statin
treatments for elevated levels of 'bad' cholesterol.

I2014
ITHENEWMICHIGAN
PAGES
37 I 38
Conclusion
Our vision for Michigan is bold, strategic, and attainable.
But we have to work together to make it happen today.
Other states are not standing still—in fact, they are
moving forward just as aggressively as we are to attract
new job providers, build new technologies, and seize the
economic opportunities that are ripe for the taking.
The future of our state can be as bright as we choose to
make it.Working together, we have the unified strategy,
tools, and resources to deliver on our rich history and
future potential. But Michigan’s future won’t happen
without the collaborative efforts of us all—families,
students, leaders and professionals—each of us brings
dynamic ideas, hard work, and action to the table. It will
take the collective strength of all Michiganders to deliver
the type of change we need.
The New Michigan is within reach. Let’s make it happen.

Methodology
Research for the 2014 New Michigan Report was
conducted by Anderson Economic Group, a research
and consulting firm with expertise in economics, public
policy, finance, and industry analysis.
The data presented in this report come from several
sources, most of which are publicly available. The
report used the most recent data available for which
there was a complete data set. Earnings data is
presented in 2013 dollars, including future projections.
Dollar amounts for all input metrics are in nominal
amounts for the corresponding year. Real GDP figures
are presented in chained 2005 dollars. This is the
conventional way to present real GDP data, as used by
the Bureau of Economic Analysis.
For more detail on the methodology used to compile
this report refer to: 2014 New Michigan Report-
Appendix A: Methodology at:
http://www.businessleadersformichigan.com/research-
reports/
For a list of North American Industry Classification
System (NAICS) Industry codes associated with each
opportunity, refer to: 2014 New Michigan Report-
Appendix B: List of NAICS Industries for Each
Opportunity at:
http://www.businessleadersformichigan.com/research-
reports/
CONCLUSION

I2014
ITHENEWMICHIGAN
PAGE
39
JEFF M. FETTIG
CHAIR OF THE BOARD
Whirlpool Corporation
TERENCE E. ADDERLEY
Kelly Services, Inc.
KEITH ALLMAN
Masco Corporation
G. MARK ALYEA
Alro Steel Corporation
GERARD M. ANDERSON
DTE Energy Company
DAVID W. BARFIELD
The Bartech Group, Inc.
MARY T. BARRA
General Motors Company
ALBERT M. BERRIZ
McKinley, Inc.
MARK J. BISSELL
BISSELL Inc.
STEPHEN K. CARLISLE
General Motors Company
JOHN C. CARTER
Chase
MARY SUE COLEMAN
University of Michigan
TIMOTHY P. COLLINS
Comcast Cable
ROBERT S. CUBBIN
Meadowbrook Insurance Group, Inc.
WALTER P. CZARNECKI
Penske Corporation
KURT L. DARROW
La-Z-Boy Incorporated
DAVID C. DAUCH
American Axle & Manufacturing
RICHARD L. DeVORE
PNC Financial Services Group
DOUGLAS L. DeVOS
Amway
ALESSANDRO DiNELLO
Flagstar Bank
J. PATRICK DOYLE
Domino’s Pizza
JAMES E. DUNLAP
Huntington
MATTHEW B. ELLIOTT
Bank of America
WILLIAM CLAY FORD, JR.
Ford Motor Company
DANIEL GILBERT
Quicken Loans Inc.
ALFRED R. GLANCY III
Unico Investment Group LLC
DAN GORDON
Gordon Food Service, Inc.
JAMES P. HACKETT
Steelcase Inc.
RONALD E. HALL
Bridgewater Interiors, LLC
RICHARD G. HAWORTH
Haworth, Inc.
CHRISTOPHER ILITCH
Ilitch Holdings, Inc.
MICHAEL J. JANDERNOA
Perrigo Company
MILES E. JONES
Dawn Food Products, Inc.
HANS-WERNER KAAS
McKinsey & Company
ALAN JAY KAUFMAN
Kaufman Financial Group
JOHN C. KENNEDY
Autocam
STEPHEN M. KIRCHER
Boyne Resorts
WILLIAM L. KOZYRA
TI Automotive Ltd.
BLAKE W. KRUEGER
Wolverine World Wide, Inc.
BRIAN K. LARCHE
Engineered Machined
Products, Inc.
TIMOTHY D. LEULIETTE
Visteon Corporation
ANDREW N. LIVERIS
Dow Chemical Company
KEVIN A. LOBO
Stryker Corporation
DANIEL J. LOEPP
Blue Cross Blue Shield of Michigan
EVAN D. LYALL
Roush Enterprises, Inc.
BEN C. MAIBACH III
Barton Malow Company
DENNIS MANNION
Palace Sports & Entertainment
and Detroit Pistons
RICHARD A. MANOOGIAN
Masco Corporation
FLORINE MARK
The WW Group, Inc.
DAVID E. MEADOR
DTE Energy
HANK MEIJER
Meijer, Inc.
MICHAEL MILLER
Google, Inc.
FREDERICK K. MINTURN
MSX International
PAUL J. MUELLER
The Hanover Insurance Group
MARK A. MURRAY
Meijer, Inc.
JAMES B. NICHOLSON
PVS Chemicals, Inc.
JAMES O’LEARY
Kaydon Corporation
WILLIAM U. PARFET
MPI Research
CYNTHIA J. PASKY
Strategic Staffing Solutions
ROGER S. PENSKE
Penske Corporation
WILLIAM F. PICKARD
GlobalAutomotiveAlliance
SANDRA E. PIERCE
FirstMerit Michigan
GERRY PODESTA
BASF
CHARLES H. PODOWSKI
The Auto Club Group
STEPHEN R. POLK
IHS Automotive
JOHN RAKOLTA, JR.
Walbridge
MICHAEL T. RITCHIE
Comerica Bank
DOUG ROTHWELL
Business Leaders for Michigan
ANDRA M. RUSH
Dakkota Integrated Systems, LLC
JOHN G. RUSSELL
CMS Energy Corporation/
Consumers Energy Co.
RICHARD F. RUSSELL
Amerisure Companies
ALAN F. SCHULTZ
Valassis
J. DONALD SHEETS
Dow Corning
BRAD SIMMONS
Ford Motor Company
LOU ANNA K. SIMON
Michigan State University
SAM SIMON
Atlas Oil Company
MATTHEW J. SIMONCINI
Lear Corporation
BRIG SORBER
Two Men And A Truck/International, Inc.
DOUGLAS W. STOTLAR
Con-Way Inc.
ROBERT S. TAUBMAN
Taubman, Inc.
GARY TORGOW
Talmer Bancorp
SAMUEL VALENTI III
TriMas Corporation
STEPHEN A. VAN ANDEL
Amway
MICHELLE L. VAN DYKE
Fifth Third Bank
JAMES R. VERRIER
BorgWarner Inc.
BRIAN C. WALKER
Herman Miller, Inc.
THOMAS J. WEBB
CMS Energy Corporation
WILLIAM H. WEIDEMAN
The Dow Chemical Company
M. ROY WILSON
Wayne State University
ROGER J. WOOD
Dana Holding Corporation
WILLIAM C. YOUNG
Plastipak Holdings, Inc.
Charter One
Delta Air Lines, Inc.
Business Leaders for Michigan - 2014 Board of Directors
*This list represents the board members at the time of printing. For a current list, visit businessleadersformichigan.com.

Growing a New Michigan: The 2014 Report on Michigan’s Progress in Growing Six Opportunities

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