LANSING, Mich. – Michigan’s overall economic competitiveness is improving, according to the results of a second annual public policy study conducted by Northwood University on behalf of the Michigan Chamber Foundation.
“Michigan is on an aggressive comeback path,” said Dr. Timothy G. Nash, of Northwood University, who led the study. “Clearly, when you look at Michigan’s competitive position compared to other states, there is still room for improvement, but this is great news for Michigan.”
The 2013 Michigan Economic Competitiveness Study, conducted by economists from Northwood University, Rutgers University and Central Michigan University for the Michigan Chamber Foundation, analyzed over 200 variables to create the Northwood University Competitiveness Index. The variables were factored into five categories that measure economic performance. Those categories, and Michigan’s corresponding ranking, are as follows:
|Northwood University Competitiveness Index||39th||47th|
|General Macroeconomic Environment||31st||48th|
|State Debt and Taxation||14th||10th|
|Workforce Composition and Cost||43rd||45th|
|Labor and Capital Formation||44th||45th|
“Michigan’s relatively strong performance in terms of debt and taxation, plus our regulatory environment, are two positive findings of this study,” said Bob Thomas, Executive Director of the Michigan Chamber Foundation. “Going forward, Michigan’s policymakers should consider building on these strengths.”
“The results are promising, but there is still work to do to improve state and local economic competitiveness,” noted Rich Studley, President & CEO of the Michigan Chamber of Commerce. “Michigan and our cities are in a fierce competitive battle with other states and foreign countries for jobs and workforce development and our labor markets still need to catch up.”
The study noted challenges with Michigan’s energy costs, auto insurance rates, population migration and entrepreneurial activity.
The Michigan Chamber Foundation’s 2013 Michigan Economic Competitiveness Study also contains two new features looking at the competitiveness of the Great Lakes Region; and a snapshot of key Great Lakes Region Cities. The Great Lakes Region, including Wisconsin, Illinois, Indiana, Ohio and Michigan, outpaced national gross state product growth rates over the last two years, with Michigan leading the region. Out of seven of the largest regional cities, both Detroit and Grand Rapids saw the highest GDP growth rates over the same period.
An executive brief of 2013 Michigan Economic Competitiveness Study is available by clicking here.
-From the Michigan Chamber Foundation