Founded in 1902, the MMA advocates on behalf of the state’s industrial community to build a business climate that cultivates growth, technology and prosperity. MMA’s focus on advocacy, education and networking help Michigan manufacturers to foster positive in-state relationships while successfully compete in the national and international marketplace.
- Producing 21 percent of global manufactured products, the United States is the world’s largest manufacturing economy.
- The second largest manufacturing economy: Japan at 13 percent, followed by China at 12 percent.
- U.S. manufacturers are the most productive in the world, producing twice as much as workers in the next 10 leading manufacturing economies.
- U.S. manufacturing accounts for 11.2 percent of the United States gross domestic product.
- Michigan manufacturing employs 498,000 and makes up 12.7 percent of non-farm employment.
- Manufacturers average an annual salary of $76,124. This salary is $24,719 more than the average salary for the rest of the work force.
- Manufacturing contributes 68 million, or almost 21 percent, to the state gross domestic product (June 2, 2009). This a 7 million dollar increase over 2008 statistics.
The Upward Swing
During the economic downturn, Michigan manufacturing was one of the hardest hit sectors. Today, things are on the up-tick for manufacturing and for Michigan. From Spring 2010, Michigan has grown 12.5 percent, outpacing the national growth of 7.1 percent. Michigan posted the fifth highest percentage job gain year-over-year margin of any state.
In January 2011, the Michigan manufacturing sector employed 498,000, comprising 12.7 percent of total non-farm employment in the state. Manufacturing jobs increased by 6.3 percent from March 2010 to March 2011, more than double the growth seen in any other sector. During this time employment grew by 75,700 jobs; 30,000 of these jobs were in the manufacturing sector.
Job growth in the manufacturing industry is expected to continue. The House Fiscal Agency anticipates continued growth with an expected 42,000 new jobs created in 2012. It’s not just jobs that are increasing, but hours, wages and output as well.
Manufacturing employees saw an average increase in hours from 44.1 hours in March to 45.6 hours in April. Earnings also increased to an average wage of $22.01, with weekly earnings averaging $1,003.66 (a gain of $45.81 from the previous month).
Manufacturing output in the Midwest increased by almost two percent between February and March 2011. This follows a 1.3 percent increase the month before. Regional manufacturing output was up 12.5 percent in March compared to March a year earlier, outpacing the national output that showed an increase of 7.1 percent.
It’s Not Just Auto
Michigan is known as the nation’s automotive capital and the auto industry has been a driving force in manufacturing growth. Twenty-four percent of the national auto industry is located in Michigan between the Big Three and its suppliers.
The gains manufacturing saw in early 2011 have almost entirely come from durable goods manufacturing, specifically motor vehicle assembly and parts manufacturing, fabricated metal product manufacturing, and metal working machinery and machine shops.
Auto manufacturing has an above average multiplier effect. For every one auto manufacturing job, there are 4-6 jobs outside of that segment that are related. When the country moved into a recession and demand for autos decreased, a significant number of manufacturers outside of auto were affected.
Many manufacturers that had been focused on supplying the auto industry found themselves where they could no longer just think about diversification but needed to do it to survive. Today, the auto-industry has seen significant growth but manufacturers are maintaining their diversification strategies, reaching into other established and emerging markets.
One market that has seen significant growth is that of alternative energy. Michigan is home to the continent’s largest lithium-ion battery manufacturer.
The number of manufacturers in the wind-energy market has grown from a handful in 2004 to 120. This includes businesses providing service, raw materials, components and other unique products that can’t be found anywhere else in the country. The strong supply chain has proved beneficial in recruiting large manufacturers to the state.
- In 2008, Michigan manufactured $37 billion in exports, compared to $26 billion in 2003, a 42 percent increase.
- Manufacturing accounts for 90 percent of Michigan’s exports, the majority of which are to bordering countries Canada and Mexico.
- The large majority of Michigan exports are the products of small businesses.
- Michigan manufactured exports rose more than six times faster (+42 percent) than the overall state economy (+7 percent).
Michigan ranks second in research and development spending, behind only California. Manufacturers exhibit a significantly higher level of research and development than other sectors. We are ranked first in the nation in industrial R&D intensity according to the National Science Foundation. More than 85 percent of the North American automotive R&D occurs in our state.
Small manufacturing companies are the backbone of Michigan’s communities and our state’s manufacturing industry. About 96 percent of manufacturing companies employ fewer than 500 employees and 68 percent employ fewer than 20 workers.
Michigan’s manufacturing industry contributes more than $1.5 billion annually toward educational, cultural, human services and other community-building efforts. Manufacturing leaders are also strong community leaders, investing their time and talents in local initiatives and activities. (See MMA Award Programs for information on past “Michigan Manufacturers of the Year,” industry leaders who demonstrate exemplary commitment to their communities.)
The MMA represents the interest and needs of thousands of manufacturers, large and small. For information on how you can become a member of the MMA, contact Mark Lee at 517-487-8555 or firstname.lastname@example.org, or click on the “Online Application” button below to sign up today.