It’s no secret that the effects of climate change are intensifying. According to the National Oceanic and Atmospheric Association (NOAA), the past decade has brought the ten warmest years on record, leading to more severe climate change-related weather events and long-term shifting climates.
As the frequency of climate change-related weather events rises, so does the cost of doing business. According to a survey conducted by MIT Technology Review in partnership with the Michigan Economic Development Corporation (MEDC), a majority of business executives have felt the negative impacts of climate change on their business in the form of increased operational costs (64%), rising insurance premiums (63%), disruption to business operations (61%), and damage to physical infrastructure (55%).
Business executives are responding with climate risk preparation and giving more consideration to relocation. Most (81%) executives say that climate change preparedness is important to their business, and 24% have already relocated physical infrastructure due to climate change risks.
While climate change will affect all businesses, the extent can be mitigated by a company’s location. The Midwest and Northeast regions are often referred to as climate havens, areas with low exposure to climate-related risks. Business executives agree, with nearly half of respondents (47%) naming the Midwest as the region least exposed to climate change risk in the survey.
As companies rethink where and how they operate in the face of climate change, executives will need more than the assurance of a natural climate haven — they’ll want to work in a region where climate-planning resources and natural resources are available and facilitated. A majority (71%) of business executives named a location with climate planning resources as the most attractive feature in a potential new business location’s ability to mitigate climate change risks.
For businesses looking to lessen their exposure to climate-related risks, Michigan offers a compelling combination of natural resilience and an increasing prioritization of economic development and climate planning.
How Michigan’s Leadership is Creating a Business Haven
While Michigan’s low-risk climate environment and natural resources give it a leg up as a business destination, it’s the state’s game plan for driving economic development that has created undeniable momentum. In 2024, the Great Lakes State was named a top 10 state for business climate by Site Selection Magazine, rising 10 spots after ranking No. 20 in 2022 and No.12 in 2023, and the No. 9 state for business by CNBC.
These exciting accolades are proof of Michigan’s overarching commitment to driving business development, headlined by the Make It in Michigan economic strategy. Introduced in 2023, Make It in Michigan is a comprehensive plan for supporting Michigan’s people, places, and projects.
Some of the key goals include:
• Driving talent development and attraction
• Increasing Michigan’s competitiveness in sectors like research and development, advanced manufacturing, and clean tech
• Making Michigan a hotspot for innovation and entrepreneurship
• Investing in Michigan’s communities to enhance quality of life
‘Projects,’ one of the major pillars of the strategy, is an initiative to bring manufacturing jobs, advanced facilities, and supply chains back to Michigan. Since new economic development tools were introduced with Make It in Michigan, the state has won over $16 billion in projects and created over 16,000 jobs in forward-focused and sustainable industries, including electric vehicles, batteries, semiconductor chips, and clean energy.
As the Make It in Michigan strategy fosters an environment ripe for innovation, the MI Healthy Climate Plan positions Michigan as a leader in climate action. Introduced in 2022, the plan lays out a path to the state’s goal of 100% carbon neutrality by 2050, with interim 2030 goals to avert the worst impacts of climate change, create jobs, and build a healthier and more sustainable Michigan.
Like Make It in Michigan, the MI Healthy Climate Plan is quickly paying off, with Climate Power naming Michigan the No. 1 state for clean energy investments from the Inflation Reduction Act. As reported by Climate Power, Michigan has won 58 projects, securing investments of nearly $25.4 billion and 21,490 jobs, besting Texas, Georgia, California and South Carolina. The Annual U.S. Energy and Employment Report (USEER) is another clean tech and sustainability piece that highlights Michigan as a destination for clean energy. According to the USEER, Michigan has the third-highest number of energy jobs in the country.
With roadmaps like Make It in Michigan and the MI Healthy Climate Plan, Michigan is creating momentum as a long-term destination for businesses invested in the future of advanced manufacturing, sustainability, and innovation.
Clean Energy, Clear Results
When you pair Michigan’s economic development strategy with its resilient climate position, you get clean tech success stories like Corning’s $900 million investment in Saginaw County. Corning, a global leader in glass and ceramics manufacturing, is constructing a new solar manufacturing facility that will create over 1,100 jobs. The project was even awarded Business Facilities’ 2024 Impact Award for the Clean Energy Manufacturing category, which highlights projects that have a significant impact on their communities. This is the third year in a row Michigan has been recognized with an Impact Award in the clean and green energy space.
Corning chose Michigan over competing sites in the Midwest and Northeast thanks to the state’s commitment to onshoring clean energy supply chains and its deep talent pool. The Michigan Strategic Fund, dedicated to promoting economic development and creating jobs, supported Corning’s investment with a $68 million grant and $29 million awarded to the local township for public infrastructure.
“These approved incentives helped confirm Michigan as the natural choice for this new endeavor,” said Scott Forester, Corning division vice president, at the announcement of the Saginaw site. “The planned new facility will create thousands of local jobs and advance the goal of expanding access to U.S. renewable energy solutions.”
South of Saginaw, LuxWall, a manufacturer of highly energy-efficient windows, opened the world’s first high-volume vacuum-insulating glass production facility in Litchfield. The project boasted a total capital investment of $165 million and created over 450 jobs. Like Corning, LuxWall chose to expand in Michigan due to the state’s aggressive sustainability goals and strong business support. Now, Michigan-based LuxWall has set its sights on joining the economic renaissance in Detroit, with a new 276,000-square-foot facility planned for 2026.
Continuing Michigan’s sustainability momentum, the greater Detroit area has become a hotspot for clean energy, exemplified by UL Solutions. A global safety science company headquartered in Northbrook, Ill., UL Solutions opened a state-of-the-art battery lab in Auburn Hills, which will serve as a testing facility to support battery manufacturers.
As climate resilience becomes a cornerstone of business strategy, Michigan provides an ecosystem designed to foster sustainable growth. From its economic policies that drive innovative industries to natural resources and low risk of extreme weather events, Michigan isn’t just a climate haven — it’s a business haven. To start planning your Michigan expansion or relocation, visit our site selection tool and find a business destination that fits your future.
