By Michigan Economic Development Corporation
The state of Michigan celebrated a transformational year for community investments and business growth across the state – and it’s just getting started.
For Michigan, 2022 was a year like no other. From historic investments and major project announcements to the state’s ongoing leadership in innovation, the world was put on notice that Michigan is a destination poised and prepared for success across industries and regions. Looking ahead, Michigan will remain competitive and continue to build on this momentum, attracting even more high-profile project opportunities while also investing in its workforce and communities statewide.
SOARing High
Game-changing, bipartisan legislation at the end of 2021 set the state in motion for a year of record investments. Launched in late 2021, the Strategic Outreach and Attraction Program (SOAR) Fund provided Michigan with competitive and flexible economic development tools to win transformational investments and create the opportunity for growth across Michigan.
This included a $7 billion investment by General Motors that will lead to 5,000 new and retained manufacturing jobs, securing the company’s EV future in the state with the conversion of its Orion Township assembly plant to produce full-size EV pickups and construction of its third Ultium U.S. battery cell plant in Lansing.
Ford also recommitted to its plants across Michigan with a proposed investment of more than $2 billion in June 2022, creating more than 3,200 good-paying jobs and supporting the company’s EV and existing internal combustion engine vehicle operations in Michigan. Already in 2023, Ford announced it will be investing $3.5 billion to build the BlueOval Battery Park Michigan in Marshall. This once-in-a-generation development is expected to create 2,500 jobs and will infuse millions of dollars into the local economy, helping local small businesses like restaurants, dry cleaners and grocery stores. Meanwhile, as the world addresses the global chips crisis, Hemlock Semiconductor announced plans for an expansion at its Thomas Township operations in September 2022, better positioning the homegrown Michigan company to serve increasing demand in the semiconductor and solar industries, with a planned investment of $375 million that will bring 170 jobs with support from the SOAR Fund.
Spearheading the Future of EV and Mobility
Michigan saw additional investments in 2022 to ensure the state will remain a global leader in the mobility and electrification industries. Michigan Automotive Compressor, Inc., a joint venture between Toyota Industries Corporation and DENSO Corporation, made public that it will begin production of new technology products developed for EVs. Announced in November 2022, the company plans to install new production processes in Parma, a project that will generate a total capital investment of $82 million and keep 241 jobs in Michigan.
SK Siltron CSS also cut the ribbon on a new manufacturing facility in Bay City in September 2022. The company expanded its production of silicon carbide wafers, which can increase the driving range of an EV, thanks to a $300 million investment expected to create a total of 150 jobs.
Beyond automakers, EV battery and other high-tech manufacturing are also ushering in generational change in the state. Michigan-based Our Next Energy (ONE) celebrated the opening of its new global headquarters in Novi in October 2022. The location will be home to its engineering team’s efforts to develop energy storage products that will be manufactured at its new $1.6 billion battery manufacturing campus in Van Buren Township, set to create 2,112 jobs. ONE chose to build its very first gigafactory in Michigan in part due to the state’s EV Jobs Academy, connecting Michiganders to jobs in the industry, as well as Governor Whitmer’s MI Healthy Climate Plan, which outlines a path to carbon neutrality by 2050 and a specific focus on supporting increased electric vehicle infrastructure access and affordability.
Several other manufacturers announced projects throughout the state to set the stage for Michigan’s continued leadership in automotive and battery manufacturing. In March 2022, LG Energy Solution committed $1.7 billion to its current location in Holland. The expansion will quintuple the plant’s capacity to produce battery components and create 1,200 jobs. Global battery company Gotion revealed in October 2022 it will build a new battery component manufacturing facility in Big Rapids. Creating 2,350 good-paying jobs with a $2.36 billion investment, the plan is the largest-ever economic development project in Northern Michigan.
Also announced in October 2022, St. Clair, Highland Park and Shelby Charter Township will see individual investments from Magna International to expand its manufacturing capabilities for vehicle battery enclosures and seats. The initiatives are expected to generate a capital investment of more than $526 million and create 1,569 jobs.
A Hub for Holistic Manufacturing Leadership
Beyond its legendary automotive roots and mobility prowess, Michigan is a global hub for other high-tech manufacturing products the world needs. Michigan-born Calumet Electronics announced in May 2022 it will enhance its newly constructed 35,000 sq. ft. manufacturing facility in the state’s Upper Peninsula. This move will help the company become one of the few manufacturers in the U.S. able to increase capability and capacity for organic substrates, a critical component in all microelectronics.
High-tech auto electronics manufacturer Gentex Corporation dedicated $300 million to create 500 good-paying jobs and remain a leader in the automotive, aerospace and fire protection industries. The initiative will see construction of a new high-tech manufacturing facility and distribution center in Zeeland Charter Township and the expansion of its manufacturing facility in the City of Zeeland.
Michigan also continued to be the epicenter of helping the world recover from the COVID-19 pandemic in 2022. Pfizer Inc. pledged to further invest in its Portage facility, already one of its largest plants. The investments announced in 2022 included $120 million for production of Paxlovid, the company’s antiviral COVID-19 pill, and $750 million to help establish the facility as one of the most technologically advanced in the world and continue to ensure the uninterrupted supply of medicines and vaccines.
Michigan also remains a strong player in growing the state’s agribusiness industry, building on both the state’s agricultural diversity and food processing expertise. Welch Foods Inc., a producer of grape juices, jams and jellies, is expanding its operations in the village of Lawton to include a new bottling line for its single-serve beverages. The project is expected to generate a total capital investment of $26.2 million and up to 57 jobs. Meanwhile, Greece-based manufacturer of high-quality natural baked snack foods, SnackCraft, chose to establish its U.S. headquarters in the city of Kentwood. The company plans a total capital investment of $41.75 million that will create up to 185 well-paying jobs.
Billerud, a leading paper and packaging provider headquartered in Sweden, also announced plans to transform its Escanaba operations to produce a more technologically advanced paper product known as paperboard or cartonboard. This multi-ply product is used as packaging for pharma and healthcare, cosmetics and drinks, among others, and will allow the company to compete in a growth market for this product. The project is expected to generate a total capital investment of approximately $1 billion and retain at least 1,240 jobs in the Upper Peninsula.
Preparing for the Future
As Michigan works to make its economy the fastest-growing, most equitable and most resilient in the nation, developing a robust talent pipeline for jobs today, and in the future, remains a key piece of the puzzle. To support that effort, the Michigan Economic Development Corporation (MEDC) convened the Electric Vehicle and Mobility Talent Action Team to launch the first focused effort on supporting the talent transition in the EV and mobility sectors. The goal: train thousands of workers by delivering professional development programs that engage workers in improving their skills and competencies in line with in-demand roles. The Talent Action Team has already made significant progress in fostering collaboration among private industry partners, universities and the state.
In Fall 2022, MEDC formed the Semiconductor Talent Action Team as part of its commitment to providing concierge-level support to semiconductor industry businesses looking to grow and expand in Michigan. Through these teams, MEDC is building the model for a rich ecosystem of talent and innovation that positions our state to lead the future of the global EV and semiconductor industries.
With the momentum of a banner year and a strong start to 2023, Michigan is truly a state on the move.
Learn about the Pure Opportunity available in Michigan at https://www.michiganbusiness.org/pure-opportunity/.
