Focus: Remanufacturing Michigan Steve Hilfinger, Executive Vice President and COO Michigan Economic Development Corporation Michigan Economic Development Corporation MERA‐Golisano Remanufacturing and Sustainability Conference O t b 2 2013 October 2, 2013 Michigan Approach: Positive Change for Business Business‐friendly tax and regulatory environment that levels the playing field and promotes market‐based solutions NOT government picking winners and losers • Business taxes are lower than at any time in decades • Burdensome regulatory processes are being streamlined and eliminated • MEDC a “gap filler” to meet market needs 19 Then Th Tax Based Incentives Tax Based Incentives Business Climate p and Development MBT Centralized Th Then Business Climate p and Development N Now Tax Based Incentives Tax Based Incentives Economic Gardening Economic Gardening MBT CIT Centralized Regional Everyone in Michigan wins… Corporate tax rank #7 from #49 Overall tax rank #12 from #18 #12 from #18 3rd best among the nation’s 12 largest states Best in the Midwest! Best in the Midwest! At Least 80% Tax Cut for Businesses Everyone in Michigan wins… Regulatory Reinvention Revising and removing outdated/burdensome rules that block innovation, growth and job creation... 1,512 AND COUNTING! Workers’ compensation premium rates decreasing Workers compensation premium rates decreasing Unemployment Trust Fund in the black Reinventing Performance in Michigan (RPM) Everyone in Michigan wins… Nigel Francis: Automotive Adviser • Nigel Francis, senior automotive adviser to the Governor and senior vice president, Automotive, for the MEDC • Appointed by Governor Snyder • 29 years experience in global automotive sector • Develop, implement and execute comprehensive automotive strategic plan • Central connection point for automotive industry stakeholders, including p partners like CAR, MichAuto, MEMA, OESA, MERA, Automation Alley and others , , , , , y Focused & Balanced Focused & Balanced Approach • • • • Business Growth & Investment Talent Enhancement Vibrant and Reinvigorated Communities Michigan’s business and tourism image $270 million B i Business Support S t $120 million $120 million Performance‐ B dG t Based Grants Business Development Program Community Revitalization Program $50 million Reimbursement Cash I Incentives ti $100 million Loan Support, Training and Infrastructure and Infrastructure Digital Media and Film SSBCI CDBG STTP Michigan Business Development Program Michigan Business Development Program • • • • Upfront p cash to fund new facilities and expansions p Typically $5 – 10K for each new job created More flexibility and utility for businesses Greater cost certainty to the state – Replaces previous MEGA program – Legacy MEGA grants still being managed Legacy MEGA grants still being managed SSBCI: A National Model State Small Business Credit Initiative (U.S. Treasury) $79 1 $79.1 million Total Loans Provided 351 Program‐to‐Date Dollars Leveraged $329 683 412 $329,683,412 Michigan’s S D F An $8 billion $8 billion initiative Business‐to‐Business (B2B) Network value added services (not tax credits) for growing ( )f g g small and medium‐sized Michigan companies (www.puremichiganb2b.com) Talent Disconnect Talent Disconnect Approx. 60,000 open jobs at any given time Approx. 60,000 open jobs at any given time Unemployment down (14.2% to 9%) but still too high What it tell us: We have a skills mismatch What it tell us: We have a skills mismatch Identify business needs early Work with individuals looking for opportunities Work with individuals looking for opportunities available today • www.mitalent.org www mitalent org • • • • • Full Service Workforce & Talent System • Federal funding • Employer‐driven approach • New and innovative programs Cluster approach • Cluster approach MEDC Talent WDA • Adult Education Talent System Michigan Works! • Local Local workforce development Local Talent Partners • EDOs • Community Community colleges • Intermediate school districts Closing the Skills Gap Closing the Skills Gap Community Ventures y • • • • • • • • Partnership w/ employers to hire structurally unemployed Covers residents of Detroit, Flint, Pontiac and Saginaw $5,000 wage reimbursement per employee $3,000 per employee to community partner for support services i 1,076 participants placed in full‐time employment 87 percent retention rate to date 87 percent retention rate to date 63 employers committed to program We would like to scale this program statewide We would like to scale this program statewide Closing the Skills Gap Closing the Skills Gap Skilled Trades Training Fund ‐ $10 million FY 2014 Skilled Trades Training Fund $10 million FY 2014 • Skilled Trades Training Program Michigan Works!/WDA, E.D. partners, employers C Community colleges and other approved training providers it ll d th dt i i id New or incumbent workers Classroom learning, on‐the‐job and customized company training, US‐DOL registered apprenticeships registered apprenticeships – Companies reimbursed $1,500 per participant – Up to $3,000 for apprenticeship program – – – – Closing the Skills Gap Closing the Skills Gap Skilled Trades Training Fund ‐ $10 million FY 2014 Skilled Trades Training Fund $10 million FY 2014 • Michigan Advanced Technician Training ‐ MAT2 – MEDC, consultant, employer, educational institution – – – – High school grads over 18 with interest in technical job training Pilot program: Mechatronics Five year commitment (three years training, two years working) Full tuition reimbursement, hourly wage from employer Michigan Energy Office Programs Michigan Energy Office Programs • EERE Loan Program EERE Loan Program – Equipment, process improvements, product redesign, building conservation measures • Industrial Assessment Center – U of M – Engineering assistance to small/mid‐size companies – Energy efficiency, increase productivity, lower operating costs, Energ efficienc increase prod cti it lo er operating costs increase competitiveness Michigan Energy Office Programs Michigan Energy Office Programs • Energy Efficiency Student Intern Program Energy Efficiency Student Intern Program – Undergraduate engineering students – Projects that maximize energy efficiency, reduce environmental footprint, lower operating costs • Technology Demonstration Projects –G Grants for projects that emphasize energy efficiency, pollution t f j t th t h i ffi i ll ti prevention, renewable energy technologies Michigan is America’s comeback state M More than 200,000 h 200 000 new private sector payroll jobs i ll j b Unemployment down 5.2 percent from 2009 So how are we doing? Personal income up 3.5 percent in 2012 #1 for new manufacturing jobs #3 for high‐tech job growth p p #4 for new corporate expansions Michigan employers are saving $1 billion in unemployment costs Mi hi an’s redit ratin s ha e been p raded AA Michigan’s credit ratings have been upgraded; AA Q Questions? i ?
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