With IBISWorld’s release of the Michigan State Reports we get a clearer view of the state’s current economic climate. What’s the verdict? Overall, economic performance and recovery in the state has been impressive with current Gross State Product at $447.3 billion. That’s a 2.3% growth from 2012 to 2017.
Some Key Figures (Key Conversation Starters)
Of Michigan’s workforce, 14.3% find themselves in the manufacturing sector. That number is huge when compared to the US as a whole where only 8.7% of the workforce are involved in manufacturing. Productivity of manufacturing in Michigan has recovered, resembling the output that existed prior to the recession.
Let’s take a look at how the figures break down by region:
- North 11.9%
- Superior 9.9%
- Grand 21.9%
- Bay 14%
- Southwest 19.7%
- University 11.2%
- Metro 12.8%
When it comes to public administration, Michigan is proving to be even more outstanding compared to the US as a whole. Those working in the sector represent 13% of the state’s total workforce. Only 5.2% of the United States’ workforce is in public administration.
What does it mean?
With so much of the workforce tacking public administration duties, it’s looking like Michigan is in a development phase. Revitalizing infrastructure creates a welcome environment for industry and businesses and facilitates conditions required for economic growth. Overall, actual investment results have been mixed, but government expenditures have been on a positive trajectory.
Education in Michigan and Its Impact on Industry
When it comes to education, Michigan is also outshining the US as a whole. 29.4% are High school graduates (or equivalent) while 35% have some college or an associate’s degree. Both figures significantly higher than the rest of the US where 26.4% are High school graduates (or hold an equivalent degree) and 30.5% have some college or an associate’s degree. With a higher educated emerging population entering the workforce it’s expected that employment will continue to become more diversified. An estimated 18.9% of Michigan employees were employed in the manufacturing sector in 2000, but this number has shrunk to an estimated 14.3% in 2017.
The Biggest News
When it comes to average annual growth (2012-17) of the value of residential construction, Michigan was clocked in at 17.2%, compared to only 6.5% for the US as a whole in the same time span. This means that people are making more money, spending more money on housing, and starting to slowly move back to the major cities as more jobs are created. It is fair to say that this growth rate is inflated because the ramifications of the recession were so high in Michigan, however, there is definitely evidence of a renaissance in growth in the region.
Access the Michigan State Reports to learn more about the current and forecasted economic conditions in The Wolverine State.