To ensure a growing economy, Michigan must focus economic retention and development strategies on the manufacturing sector. Manufacturing investment brings high value capital and an inherently high economic multiplier effect — that is, for every direct job in manufacturing, several other jobs are created by suppliers and service providers, as well as indirectly through economic activity and demand for retail, restaurants and consumer services in the area. The benefits from manufacturing’s investments in R&D, talented workforce, headquarters and capital projects yield significant returns for communities. Few other sectors can claim such benefits in terms of economic growth. Since manufacturing remains the largest sector of Michigan’s economy, Michigan must focus economic retention and development strategies on the manufacturing sector.

MMA Position: Business tax reforms must recognize capital investment, R&D investments, talented workforce investments and the job and economic multiplier effect inherent in manufacturing.