When I speak with CEOs making location decisions today, it’s clear that the old playbook is no longer enough. A competitive incentive package still matters, as do sites, tax climate and labor costs. But for advanced manufacturers, those factors are now just a starting point. They also want a partner that can help execute a complex project quickly, fill the talent pipeline effectively and keep it competitive as technology, supply chains and customer demands evolve.
At the Michigan Economic Development Corporation (MEDC), we meet these challenges through our Team Michigan approach, which serves as a single gateway to our state’s economic development ecosystem and resources. We are committed to partnering to solve operational goals rather than bureaucratic processes. Instead of sending investors through a maze of agencies and jurisdictions, Team Michigan offers one interface that aligns incentives, permitting, workforce, infrastructure and local approvals. The goal is straightforward: compress time and reduce execution risk. When a complex project involves multiple communities, supply chains and regulators, Michigan’s partners sit on the same side of the table to structure a workable package rather than issuing siloed responses that unfold on different timelines. For CEOs scaling advanced defense and mobility platforms, that kind of integrated support can be the difference between a viable schedule and a project that never leaves the slide deck.
Recent investment decisions highlight the impact of this approach. After considering eight competing states, American Rheinmetall invested $31.7 million to expand its Michigan operations and create 450 engineering-led jobs, with Team Michigan helping stitch together the headquarters site in Auburn Hills and production growth in Plymouth, Lapeer and Lansing. DDP Specialty Electronic Materials, a DuPont subsidiary, is expanding advanced materials production in Midland as part of a broader $44.5 million investment. JR Automation, a Hitachi group company, is investing $72.8 million to create a global headquarters in Zeeland.
On the more traditional end of the spectrum, G-M Wood Products is committing $8.6 million to expand in Newaygo as part of a reshoring effort. And Volkswagen’s decision to retain 900 positions tied to its Michigan technical operations is a reminder that the Great Lakes State and our globally recognized talent are not only recruiting new names but also giving established players reasons to keep critical functions in place. For a CEO, those moves collectively reshape local supplier ecosystems rather than function as isolated wins.
Talent as the Governing Constraint
Talent continues to rise to the top as a key decision point for executives making long-term investment decisions. Michigan’s high engineering density and one of the nation’s largest advanced manufacturing workforces supply the specialized engineering and R&D talent required for next-generation manufacturing in sectors like aerospace and defense. Our state ranks No. 1 in the nation for concentration of engineers and sits in the top tier for manufacturing and semiconductor jobs.
It’s not just about what we have now; it’s how we are growing the talent of the future. LIFT, the Detroit-based national manufacturing institute, pairs lightweight materials and digital twin R&D with training programs for students, veterans and incumbent workers, creating pathways into advanced manufacturing roles tied directly to active projects. Talent programs supported by the MEDC also offer opportunities for students to experiment with semiconductors, programming and engineering at an early age and later develop certifiable skills and empower a steady stream of capable, informed professionals in essential industries. For investors, the combination of engineering density, top five workforce development performance and a demonstrated pipeline sets a foundation of certainty for long-term investment decisions.
An Ecosystem Connecting R&D to Growth
CEOs also look for an innovation network that links research to production. Automation Alley, Michigan’s Digital Transformation Insight Center, works with manufacturers on AI, robotics and digitization; the Michigan Manufacturing Technology Center (MMTC) offers hands-on consulting and training to small and mid-sized firms; and initiatives like Project DIAMOnD have deployed an unprecedented network of 3D printers to give smaller manufacturers access to Industry 4.0 tools. For executive teams weighing additive manufacturing, digital twins or AI-enabled quality systems, these in-state partners reduce the risk and cost of experimentation before changes roll across a global footprint.
For CEOs and investment committees, the filter is simple: Does this state improve our risk-adjusted return on capital? Does it help us move faster than competitors? Will the ecosystem around the plant still be viable a decade from now? Michigan is working to make the honest and unequivocal answer to those questions “yes.” Team Michigan’s bet is that the states that win in advanced manufacturing will be the ones that can sustain that level of coordinated, relentless support over the full life of the asset.
