Burdensome regulatory processes are being streamlined and eliminated.More than 1,500 outdated or burdensome environmental, workplace, and business rules that blocked innovation, growth, and job creation have been revised or removed.Michigan is the only Midwestern state whose workers’ compensation pure premium rates have decreased by over 7 percent each of the last two years.Unemployment Trust Fund, which was $3.9 billion in debt, now has a balance of $1.5 billion.State has launched the Reinventing Performance in Michigan A $1.5 billion budget deficit has been erased without using any accounting gimmicks. Long-term liability has been reduced by more than $20 billion or $2,000 per Michigan resident. State’s rainy day fund is up to $505 million.
Direct + Spinoff income from Automotive sector: Auto industry generates $500 Billion in paychecks annually1
Multiple consulting firms had input to the analysis you see in the presentation …
Key takeaways:Michigan’s auto industry is back and environment is ripe for new investmentMichigan must prepare for global changeNeed to focus on a strategic plan and right investment in R&D to ensure Michigan’s auto industry’s future growth
Key takeaways:There is a huge opportunity for Michigan to become the global leader in the confluence of vehicle and automated technologies. Other regions and other foreign automakers can and will lead on specific technologies in CAV but Michigan must be the leader in bringing the technologies together. Michigan obtaining a leadership position will help ensure Michigan’s future global relevance in the automotive industry. While this is a great opportunity, there is also a clear risk in other technology firms being able to enter this sector. Implications across the board in investment, industry cooperation, legislation, etc.
Key takeaways:Michigan’s infrastructure has been and continues to be high-volume mild steel, and it lags other regions in shifting to lighter weight materials. Transformation of infrastructure will not happen quickly, long-term strategy and effort is needed. Currently there is a diverse set of resources and stakeholders working on lightweight and advance multi-materials. Recommendation is a mechanism to focus industry resources and collaboration to catch up to the expertise being developed other global regions. Collaboration center should emphasize:Benchmarking and gap analysis Technology road-mappingMixed material applications (cross-industry)Supply chain developmentNew business accelerators
Key takeaways:Increasing regulatory requirements in developed countries will continue trend toward powertrain electrificationIncreasing cost of technology, and different regulatory targets in different regions will require a flexible adaptable approach to powertrain designOther regions and foreign automakers lead in certain electrification and powertrain technologies. Similar to CAV, Michigan should not focus on being the global leader in every single technology area … The opportunity for Michigan is in advanced system integration/optimization. The ability to develop a diverse set of advance propulsion solutions driven by differences in global regional customer preferences and regulatory requirements. To be the global leader in integrating and optimizing a “powertrain of choice”.
Key takeaways:Build where you sell paradigm presents long term challenges to Michigan’s manufacturing base, both on a global and U.S. regional basisTwo pronged strategy:Preserving and defending Michigan’s current manufacturing base, and look for strategic growth opportunitiesEmploy a “R&D and Pilot plant’ strategy for developing future manufacturing technologies
Key takeaways:To preserve and defend manufacturing base, it is vital to build on Michigan’s existing logistics and supply chain assetsMichigan must aggressively leverage current advantages in location of suppliers and assembly plants to attract new investmentFreight and logistic bottlenecks must be addressed
Key takeaways:Foundation of the plan is engaging the right stakeholders, developing key resources, and implementing the right processes to execute the strategic plan. The plan focuses on developing three key enablers of the strategy: technology, talent and capitalAll three of those enablers are critical - Michigan fails at any of those three, the strategy will not be robust
Driving Michigan’s Automotive Industry Forward - Steve Hilfinger