It’s the kind of news that keeps the engines running for guys like Cornerstone Alliance President Rob Cleveland and other economic developers around the state. On Monday, the Michigan Economic Development Corporation announced that a $4.5-billion investment rolled out last May has been tabbed as the 2019 Deal of the Year by Business Facilities Magazine.
While it was a major investment on the other side of the state from Fiat Chrysler Automobiles as part of their plans to convert two Michigan-based plants into the future assembly site for the next-generation Jeep Grand Cherokee, as well as an all-new three-row full-size Jeep SUV and plug-in hybrid models, Rob Cleveland and others immediately recognize the value that accrues to a major nod from an industry magazine citing the state as a great place to launch or grow a business enterprise.
The news, just one week into the New Year, has given Michigan great cause for celebration, knowing that Michigan is back on top with the Deal of the Year. Especially after the $4.5-billion project went up against a pool or more than 40 projects across the county. Business Facilities Magazine says it was the most competitive year to date, and the judging panel of independent site consultants and real estate executives considered the FCA project “a clear standout” thanks to the significant investment it will generate and the high-wage direct and spin-off jobs it will create.
Some of the some spin-off jobs have the possibility of being created right here in Michigan’s Great Southwest with the vast array of tool and die shops, mold makers, and other manufacturers who already do work for the major Tier 1 auto companies.
Cornerstone’s Cleveland says, “This is significant recognition for the state of Michigan. Those of us in Southwest Michigan understand that we are competing in a global economy. Companies like LECO, Bosch, Whirlpool, Vickers Engineering, Special-Lite and many others are competing with companies all over the world to sell products. FCA’s investment in Michigan signals that it can find the talent necessary to succeed in a very competitive automotive market. The ramifications of FCA’s commitment will make a lasting impact on the Berrien County economy, and those companies that supply FCA.”
It was during a press conference with Governor Gretchen Whitmer and FCA Chief Operating Officer for North America Mark Stewart back in May of 2019, that FCA announced their investment of $4.5 billion, creating 6,433 good-paying jobs at a new state-of-the-art assembly plant in Detroit and five existing Michigan facilities, that will enjoy expanded production as well as the ability to build fully battery electric models in the future. The MEDC says this generational project represents the largest automotive assembly plant deal in the U.S. in a decade and is the first new automotive assembly plant in Detroit in more than 30 years.
Jeff Mason, CEO at the MEDC, says, “Michigan is known globally as a home of opportunity for companies like Fiat Chrysler Automobiles that are working to identify, develop and deploy the mobility technologies of the future,” and adds, “We are proud of the work that went into securing FCA’s transformational investment and look forward to the long-term economic opportunities it will create for working families across the state.”
Monday’s announcement from Business Facilities Magazine builds off the momentum created over the past year by a series of mobility and automotive business wins in the state. That includes Michigan winning the 2018 Deal of the Year Bronze Award for Ford Motor Company’s plans to transform the historic, long-vacant Michigan Central Station in Detroit’s Corktown neighborhood into an innovation hub for the company’s vision for future mobility solutions.
The state also closed out the year with an announcement by Ford of its plans to invest $1.45 billion to expand its operations in two key facilities and establish a new vehicle modification center in southeast Michigan, solidifying the state’s global mobility leadership while creating 3,000 well-paying and skilled trades jobs as a result.
Mobility startups and companies also leveraged Michigan’s strengthened economy and robust talent pool for business opportunities over the past year. Silicon Valley-based company Waymo invested in Detroit for its future next manufacturing facility where it will integrate its self-driving vehicle systems into the platforms of its OEM partners. Meanwhile, Ann Arbor-based May Mobility launched a new pilot project in Grand Rapids that stands as the first autonomous vehicle route fully open to the public in Michigan and the most complicated AV route in the world to date.
The MEDC tells us that altogether, in 2019 Michigan’s automotive industry created 9,100 new jobs. Over the past decade, however, Michigan ranks No. 1 in the nation for job creation within the automotive industry, having created 58,483 jobs since 2010. Not only did Michigan create more automotive jobs than any other state in the country, but it created nearly 60-percent more jobs than the No. 2 state in that same time, demonstrating the steady resiliency and power of Michigan’s automotive manufacturing industry.
Mason says that as the new decade kicks off, Michigan remains a source of Pure Opportunity for companies of all sizes looking to do business. You can learn more about the resources available for doing business in Michigan at michiganbusiness.org/pure-opportunity and explore the opportunities for making your next business move by visiting siteselection.michiganbusiness.org.
In Southwest Michigan, you can find great data on the region at this link:
https://www.cstonealliance.org/
The FCA project photo accompanying this story on Moody on the Market is courtesy of the MEDC.
