By Anne Cosgrove
From the July / August 2024 Issue
Michigan’s economic growth is firing on all cylinders, with a steady stream of companies choosing the state for their next relocation or expansion investment. One recent example: in February, Michigan Economic Development Corporation (MEDC) and Governor Gretchen Whitmer announced that the Michigan Strategic Fund had approved funding for a $900 million investment from clean energy manufacturer, Corning, Inc. Based in New York State, this global leader in materials science is building a facility in Richland Township, MI where it will manufacture solar components. This nearly billion-dollar project was the latest to expand Michigan’s clean energy industry ecosystem.
“These approved incentives helped confirm Michigan as the natural choice for this new endeavor. The planned new facility will create thousands of local jobs and advance the goal of expanding access to U.S. renewable energy solutions.”
— Scott Forester, Corning division VP and Program Executive, Solar
The Michigan Strategic Fund is supporting the project in Saginaw County with a $68 million Critical Industries Program performance-based grant and approval of a 15-year State Essential Services Assessment exemption valued at $12.3 million.
“We are grateful for the strong leadership, collaboration and support from Governor Whitmer, the Michigan Legislature, and the State of Michigan,” said Scott Forester, Corning division Vice President and Program Executive, Solar. “These approved incentives helped confirm Michigan as the natural choice for this new endeavor. The planned new facility will create thousands of local jobs and advance the goal of expanding access to U.S. renewable energy solutions.”
Corning plans to employ 1,100 people at the Richland Township location.
Also in February, the state’s automotive industry was set to see an addition to its ecosystem with Lucid Motors, an OEM for all-electric vehicles choosing Southland, MI as the site of its newest engineering and R&D hub, an estimated $10 million investment. The California-based company will retrofit an existing facility, which be occupied by its initial team of 200 engineers. Lucid currently employs close to 30 people in Michigan.
The project is supported with a $6 million Michigan Business Development Program performance-based grant. The company stated it chose Michigan for this R&D facility, due to the number of suppliers in the region and the workforce.
Workforce Focus
In Michigan, leadership at all levels is focused on sustaining a talent pipeline to deliver on the needs of the companies within its borders. One state-level initiative: MSTAR—or the Michigan Semiconductor Talent and Technology for Automotive Research initiative. In June, Gov. Whitmer unveiled this $10 million public-private initiative aimed elevating the state’s position in automotive semiconductor technology and talent, and to develop a talent pipeline to accelerate semiconductor applications in the mobility sector.
Said Gov. Whitmer at the June event, “A year ago, we launched MSTAR to show the world that Michigan was serious about advanced manufacturing and talent development. Now, we’re putting $10 million behind it with our industry partners to keep winning advanced mobility and semiconductor projects.”
“A year ago, we launched MSTAR to show the world that Michigan was serious about advanced manufacturing and talent development. Now, we’re putting $10 million behind it with our industry partners to keep winning advanced mobility and semiconductor projects.”
— Governor Gretchen Whitmer
One of the companies that is part of the MSTAR collaboration is imec, a Belgium-based research and innovation hub for nanoelectronics and digital technologies. Said Luc Van den hove, imec President and CEO, “We are thrilled to begin joint research with the University of Michigan, on their Ann Arbor campus, and grateful for the state’s support for the MSTAR initiative and Governor Whitmer’s leadership. By combining the strengths of our research organizations, we can accelerate technological innovations for the automotive industry, making vehicles safer and more sustainable.”
Another collaborator, Dan Nicholson, General Motors Vice President of Strategic Technology Initiatives, said, “Semiconductors are critical to providing customers the technologies they expect in today’s vehicles. GM supports investments in talent development and a robust domestic supply of semiconductors to drive U.S. leadership in automotive innovation.”
Another stride toward strengthening the foundation of the state’s electric vehicle and semiconductor industries: in 2022, MEDC introduced the Talent Action Team (TAT), a public-private state talent coalition to address the talent gap in those two industries. TAT works with employers to identify priority occupations based on short- and medium-term demand and the needed skills. The coalition also includes working with the state’s educational institutions.
In 2023, the TAT was involved in establishing the Semiconductor Talent and Automotive Research (STAR) initiative. This is a strategic collaboration involving KLA, imec, the University of Michigan, Washtenaw Community College and General Motors focused on developing talent and infrastructure to accelerate advanced semiconductor applications for electrification and autonomous mobility.
In Detroit, Michigan Central District Opens Possibilities
The city of Detroit has a new 30-acre innovation district—Michigan Central, and the possibilities are extensive for the business, resident, and visitors. The centerpiece of the district is the historic Michigan Central Station, a rail station opened in 1913 what was once a gateway to the city and Michigan. In 2018, Ford Motor Company acquired the property and oversaw an extensive renovation of the building which had been closed since 1988.
Grand opening events took place earlier this summer, culminating with a grand reopening on June 26. The aim is for the building and the surrounding property to revitalize the neighborhood and city, as a hub for technology companies, culture, and community.
There is already Newlab at Michigan Central, a building that opened in April 2023 and home to more than 100 startups in the mobility, transportation, logistics, and climate tech sectors. The lab also includes the first electrified public road and the Bagley Mobility Hub, which provide a testing environment for entrepreneurs and inventors. Google also has space in the building to train students in tech skills and conduct drone testing.
The district also includes retail, restaurants, public parks, outdoor plazas, cultural installations, and community programming.
Ford is among the building’s first tenants and will move employees from its Ford Model e and Ford Integrated Services teams into newly renovated office space across three floors in The Station starting later this year. Ford will also have collaboration space in The Station for other Southeast Michigan-based employees to use. Some 1,000 Ford employees will work across the Michigan Central district by the end of the year, with a goal of 2,500 by 2028.
Mobility Testing Firm, Dekra, Investing In Plymouth, MI
Outside Detroit, In Plymouth, MI, German mobility testing company DEKRA announced in June a $22.8 million investment to establish its Automotive Test Center of Excellence. The company’s activities there will focus on testing technologies for the electrification of mobility, automotive communications technology, and cybersecurity.
The Automotive Test Center of Excellence will launch test services for the latest technologies to support the transition to electric mobility, working in close collaboration with the automotive manufacturing and supplier ecosystem. Testing services include Electromagnetic Compatibility testing, EV battery testing, EV charging testing, cybersecurity, and environmental testing. In its initial phase, the project will create 18 qualified new jobs, including test technicians and engineers.
In 2023, DEKRA established its presence in Michigan with the acquisition of Weiss Technik environmental laboratories.
“DEKRA has been at the forefront of automotive safety and innovation for nearly a century, and we are proud to extend this heritage to Michigan, with the support of Governor Whitmer and MEDC, for which we are grateful,” said John Tesoro, President of DEKRA Americas. “Our new Automotive Test Center of Excellence in Michigan will be a beacon of advancements in electric mobility, reflecting our dedication to safety, sustainability, and the rich automotive culture of the region.”
Said MEDC CEO Quentin L. Messer, Jr. “We are proud that DEKRA has decided to ‘Make It in Michigan’ with their new Automotive Test Center of Excellence. While work remains, we are excited that our economic development strategy’s focus on People, Places, and Projects continues to yield results for Michiganders.”
Expansion Projects In Grand Rapids Region
In western Michigan, the Grand Rapids region is seeing a rapid succession of expansions in recent months, a continuation of a busy 2023.The Right Place, Inc, an economic development organization serving the region shared in its annual report $453 million of new capital investment and nearly 1,400 new and retained jobs.
A few highlights in 2024:
- In February, Newaygo County Economic Development Partnership (NCEDP), powered by The Right Place, Inc., in collaboration with the MEDC, announced that wood components supplier G-M Wood Products would expanding its facility in Newaygo, MI. The company plans to add 25 new jobs and $8.6. The company currently has 139 employees in Michigan.
- In March, Alticor, the parent company of Amway, stated it would increase manufacturing and R&D capacity through renovation and expansion of existing facilities in Ada Township. The company plans to add 260 new jobs and $127 million in capital investment. The project includes the renovation of 48,000 square feet of unused space at Amway’s existing Spaulding Plaza facility into a Nutrition Solid Dose Manufacturing center.
- Also in March, Packaging Compliance Labs will be expanding its locations in Cascade Charter Township and City of Kentwood. The investment by the medical device manufacturing service provider was anticipated to generate $4.5 million in capital investment and create 50 new jobs.
The company, established in 2014, is experiencing significant growth. With the addition of new services and an expanded client base, the company anticipates investing in specialized training for new test methods, engineering services and technology competencies.
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