According to new data collected by MNI, researcher and compiler of the U.S. manufacturing data that powers IndustryNet, manufacturing companies in Michigan added jobs for an eighth straight year, creating more than 10,000 positions.
Over the past several years, Michigan has added manufacturing jobs at an unparalleled rate, rebounding by more than 100,000 jobs since the recession.
This article will take a closer look at Michigan’s industrial sector, exploring top industries, growing companies as well as city and regional factors.
We’ll also examine why the state is a top destination for industrial companies and look at some of the challenges faced by the state’s manufacturers currently.
Michigan Manufacturing: The Year in Review
Michigan manufacturers added 10,730 jobs over the past year, a gain of 1.5%, adding to the 11,000 jobs the state added over the 2017-2018 survey period. The state is currently home to 13,230 industrial companies that employ 726,524 workers.
Over the past year, gains were led by increases in industrial machinery, chemical processing, fabricated metals and electronics.
Industrial machinery, one of Michigan’s largest industries, employing 137,906, grew its workforce by 3%.
Fabricated metals, which employs 85,664, saw a gain of 4.3%.
Other industries adding jobs included electronics, up 6%; furniture/fixtures, up 2%; chemical processing, also up 2% and primary metals, up 1%.
A handful of sectors in Michigan saw jobs decline in the past year and included stone/clay/glass, down 3%; lumber/wood, down 2.3%; paper products, down 1.6%; printing/publishing, down 1.3%;
MNI’s regional data shows more than half of the state’s manufacturing jobs are centered in the southeast region, at 57%. Another 33% are concentrated in Southwest Michigan. Northwest Michigan accounts for 5% and the northeast of the state 3%. The Upper Peninsula is home to 2.3% of Michigan’s industrial jobs, according to MNI data.
Most of Michigan’s major industrial cities fared well over the year, with significant gains recorded for Livonia (+9.5%); Holland (+7%); Lansing (+2.6%); Troy (+2.5%); Auburn Hills (+1.8%); and Detroit (+1.3%) among others.
Michigan’s Auto Industry Challenges
Transportation equipment employment, which has been the primary driver of manufacturing job growth since the recession, saw no change in employment over the past year. The sector currently ranks first in the state for number of manufacturing workers, employing 144,994.
Automakers across the nation are currently facing a general slowdown as consumer demand dips.
However, despite the lull in employment gains for the industry, a number of innovative projects are currently in development in Michigan, suggesting jobs levels may continue to increase for the state’ transportation equipment sector in the years ahead.
The state is becoming an epicenter for autonomous vehicle production and companies like Fiat-Chrysler and Ford announcing plans to partner with Silicon valley entities like Waymo and Aurora to produce self-driving vehicles in the state.
Fiat-Chrysler announced they will investing $4.5 billion in the state of Michigan, with plans to create 6,500 new jobs, while GM unveiled plans to invest $300 million in the state.
Meanwhile, German auto supplier Webatso announced plans to establish a new vehicle roof and heating systems plant in Plymouth Township.
Uncertainty over tariffs continues to have an impact in Michigan as many of the state’s auto manufacturers rely on imported materials for production.
The Trump administration proposed a 25% tariffs on imported cars and auto parts, citing national security concerns, though those tariffs have been delayed for six months. Some relief was seen also recently, when the U.S. lifted tariffs on steel imported from Canada and Mexico ahead of the still-pending USMCA deal.
According to a study by MarketWatch, Michigan ranks 9th in the nation for dependence on imported steel. Companies that rely on imported steel and aluminum employ 401,079 workers employed by companies that rely on imported steel and aluminum.
On the other hand, producers of domestic sources of steel do stand to benefit. The MarketWatch study found that 8,717 Michigan workers are employed by steel and aluminum-producing industries. This may account for the rise in employment for the primary metal and fabricated metals sectors.
Why Michigan is a Top Location for Manufacturing
Faced with tight labor market and a skills gap, finding skilled workers continues to be a top concern for U.S. industrial companies.
With an abundance of top-notch universities and worker training programs, however, Michigan remains a top destination for many manufacturers.
According to CNBC’s Best States for Business study, the state ranks 10th in the nation for its workforce, up 3 notches from its 2017 ranking of 13. In addition, the state is now third in the nation for innovation, up from 9th place in 2017.
According to the Michigan Economic Development Corp, Michigan is home to the largest number of mechanical and industrial engineers in the nation.
Waupaca Foundry, for instance, recently announced plans to establish a new iron castings plant in the Upper Peninsula, in response to increased customer demand. The company chose the U.P. due to the region’s availability of skilled labor, according to a company announcement.
A number of private/public partnerships have given rise to innovative projects in the state.
One example is Western Michigan University’s recent partnership with Wallbridge, Pro Services, APEC and TowerPinkster to establish a groundbreaking paper manufacturing plant. The state is home to the famed LIFT, a public-private consortium that helps manufacturers create advanced lightweight materials.
The state ranks high among a number of other site selection factors, including highly competitive business incentives, an abundance of capital and shovel-ready sites. The Michigan Manufacturing Technology Center, specifically helps small and medium-sized manufacturers innovate and compete in a global marketplace.
Top Industries in Michigan 2019
| INDUSTRY | JOBS |
|---|---|
| TRANSPORTATION EQUIP | 147,089 |
| INDUSTRIAL MACHINERY | 137,906 |
| FABRICATED METALS | 91,297 |
| RUBBER/PLASTICS | 52,550 |
| FOOD PRODUCTS | 41,942 |
| PRIMARY METALS | 37,748 |
| CHEMICALS | 32,757 |
| PRINTING/PUBLISHING | 27,104 |
| ELECTRONICS | 27,030 |
| FURNITURE/FIXTURES | 22,605 |
| INSTRUMENTS/RELATED | 19,464 |
| STONE/CLAY/GLASS | 19,146 |
| LUMBER/WOOD | 14,311 |
| PAPER PRODUCTS | 13,230 |
| TEXTILES/APPAREL | 7,078 |
Michigan’s Largest Manufacturing Companies
FCA US, LLC (Auburn Hills) - 15,000 employees
Nexteer Automotive (Saginaw) - 6,900 employees
Gentex Corp. (Zeeland) - 5,100 employees
FCA US, LLC (Warren) - 4,267 employees
Alticor, Inc. (Ada) - 4,000 employees
Ford Motor Co., Michigan Assembly Plt. (Wayne) - 4,000 employees
General Motors Global Propulsion Systems (Pontiac) - 4,000 employees
Amway Corp. (Ada) - 4,0000
Michigan Cities with the Most Manufacturing Jobs
Grand Rapids – 48,635
Auburn Hills – 32,601
Detroit – 29,910
Sterling Heights – 18,967
Warren – 18,382
About This Data:
MNI’s team of more than 80 researchers scours hundreds of sources on-and-offline to zero in on every manufacturer in the U.S. Each manufacturer is contacted multiple times annually to ensure its information remains up-to-date and complete. Our state-by-state industrial employment surveys are based on this data, allowing us to compare jobs counts in a given industry, state, region or city from year to year.
For More Information on Michigan Manufacturing Companies
To access detailed profiles of Michigan’s 14,000 industrial companies and their 41,000 executives, learn more about MNI’s database subscription.
Or, to connect with industrial suppliers in Michigan and across the U.S. start your free search on IndustryNet. IndustryNet allows users to search and source more than ten thousand types of products, parts, supplies, and services for free. IndustryNet® lists every U.S. manufacturer plus thousands of wholesalers & distributors and industrial service providers.
