These Three Pillars Position Michigan as a Top State for Doing Business

In today’s business environment, industry leaders are adopting the tried-and-true mantra of real estate agents: location, location, location. Finding the right place to invest or relocate is vital for businesses to stay competitive, profitable and sustainable. There are 50 states to choose from, and countless locations overseas, so how do businesses make the right decision? By taking a holistic approach, one state is setting itself apart: Michigan. Ranked as a Top 10 State for Doing Business by CNBC and Area Development, Michigan is garnering the attention of business leaders across all industries. In order to help build the case for the Great Lakes State with prospective leaders, the state created the Make It in Michigan economic development strategy, focused on three key pillars: People, Places and Projects. 

One of the first questions that business leaders ask economic development agencies is, “How many people can we hire, and how fast can we hire them?” To answer the call, the Michigan Economic Development Corporation (MEDC), the statewide agency responsible for attracting and retaining both businesses and talent, developed strategic programs and partnerships focused on People to create a talent pipeline that feeds directly to current and prospective Michigan businesses. 

In March 2023, the state launched the Talent Action Team, tasked with creating public-private partnerships between the state, higher education and Michigan’s automotive and mobility companies. The team has worked hard to bridge the gap between talent and employers, and its success has not gone unnoticed. The Talent Action Team was recognized as the fourth most innovative business service in the world in 2024, according to rankings by Fast Company. 

The MEDC made an even bigger splash in October 2023, when it launched the “You Can in Michigan” campaign – the largest talent attraction campaign in history. The campaign markets the state nationally as a place where people of all ages can build a career while enjoying Michigan’s outdoor recreation, vibrant cities and sandy beaches. The state’s cost of living, which remains below the national average, is major driver to attract talent. This is in addition to the sense of community, major employers and natural beauty that residents look for in tech hubs like San Francisco and Austin but are available in Michigan at a fraction of the cost. 

A business’ ability to attract talent is only as good as the place it calls home. To that end, the Make It in Michigan framework includes investment in Places. This investment includes the recently launched Make MI Home pilot program, facilitated by the state’s Growth Office, which provides funding to nonprofits, local governments, economic development organizations, philanthropic foundations and community organizations to create initiatives that attract and retain talent in their region. 

The MEDC is also putting significant funding into other community development initiatives, such as the Revitalization and Placemaking (RAP) program. This program is focused on place-based infrastructure development, real estate rehabilitation and development and public space improvements in communities throughout the state. Launched in 2022, RAP was funded with $100 million of American Rescue Plan Act funding to address the COVID-19 impact in communities. The program has been sustained with an additional $100 million appropriation by Governor Whitmer last year, with projects planned through 2026. Additional community development programs fall within the MEDC’s MiPlace banner, which focuses on downtown revitalization and preservation projects through Michigan Main Street and business attraction with Redevelopment Ready Communities. 

In order to create jobs that pay well and sustain communities, Michigan needs to secure and retain a diverse range of Projects. The state has been and continues to be a hub for everything automotive and manufacturing, but it has also used this prowess to attract companies across many industries. The fight against climate change has increased the importance of the clean energy industry, and Michigan has emerged as a leader in this space. According to Climate Power, Michigan ranked No. 1 for clean energy investments in 2024, marking the second year in a row the state received the recognition. Michigan secured 58 clean energy projects, accounting for nearly $25.4 billion in investments and more than 21,000 jobs. 

The clean energy revolution includes electric vehicle (EV) projects, taking an industry that Michigan created and making it more environmentally friendly. Today, one-third of U.S. battery production and development for EVs occurs in Michigan, accounting for 1,500 workers. While the future of mobility is happening in Michigan, that doesn’t mean the state is solely producing cars. 

Aerospace and defense are also major industries in the state, contributing $30 billion in economic activity and supporting 166,000 jobs across nearly 4,000 businesses. Recently, the state set up the Office of Defense and Aerospace Innovation to continue securing projects in this sector. Of course, the Michigan story does not begin and end with these three industries. The state has positioned itself as a place where business leaders across all sectors can find success, whether they are a sole proprietor or scaling to become the next major employer in Michigan. 

Michigan isn’t just a top state for doing business – it’s a great place to live, work and play. The state is receiving major attention and investment from industry leaders who are buying into the state’s vision. Simply put, the Great Lakes State has built the framework for better lives for Michiganders. From securing projects that are creating good-paying jobs with a fraction of the cost of living to investing in communities, neighborhoods and main streets, now is the time to Make It in Michigan.