MICHIGAN ECONOMIC DEVELOPMENT – WHICH STATE TO EMULATE?

EVERYONE RECOGNIZES THAT MICHIGAN’S ECONOMIC DEVELOPMENT PLATFORM MUST CHANGE….IT CAN’T STAY THE SAME….THERE IS A NEED FOR A NEW STATE STRATEGY TO STIMULATE JOBS AND ATTRACT INVESTMENT.

BUT WHERE TO WE GO FOR INSPIRATION – WHICH STATES DO WE LOOK TO FOR GUIDANCE?

Will SB 1018 prompt discussion of the impact of Right-to-Work upon job creation?

Ok – let’s try to answer these questions. 

There is a lot of information available that can lead us to an answer.  In my analysis, I’ll focus on information covered in other blog entries from the Small Business & Entrepreneurial Council and American Legislative Exchange Council. Between these two indices, they address about 50 competitive economic factors important to small and large businesses. These indices should allow us to gauge Michigan’s overall economic competitiveness in relation to all other states.

Lets also look at in-migration data from United Van Lines and whether the percentage change of unemployment is above or below the national average for the period between November 2008 and 2009, where we experienced the greatest recessionary job losses. One would believe that states with superior competitiveness would attract population (in-migration) and suffer less job loss during height of the recession job lay-off period.

In the table above we show the top 10 states ranked by the two leading indices indicating favorable state business competitive advantages for small and larger businesses. Column three displays the top states having household in-migration. Column four lists whether the states listed in columns 1, 2 and 3 are right-to-work states. Lastly, column 5 indicates whether the percentage change in unemployment between November 2008 and 2009 was above or below the national average.

What the analysis discloses –

South Dakota and Nevada, indicated in “red”, are favorable to business, are right-to-work states and have experienced in-migration and have suffered less of an unemployment impact during the past year. 

Arizona,Texas and Virginia, indicated in “blue” while less favorable to business, are right-to-work states having suffered less of an unemployment impact during the past year, with Arizona being an in-migration state.

Who should Michigan emulate? 

So to answer the question – which states should Michigan emulate – the answer is pretty clear.

This simple analysis indicates five states having superior economic competitiveness when compared to Michigan – South Dakota, Nevada, Arizona, Texas and Virginia.

They are rated as having a more favorable business climate have experienced population in-migration and suffered less unemployment impact than other states.

Clearly – these states should be viewed as sources of inspiration for the renewal of Michigan’s Economic Development Platform.

Michigan Renaissance Zones – Right-to-Work to be offered?

Last week  (December 10th) SB 1018 was introduced by Senator Nancy Casssin being right-to-work legislation for Michigan’s Renaissance Zones.

The bill now assigned to the Senate Committee on Commerce and Tourism brings another dimension to the Michigan Economic Development Platform one which from this analysis appears to confer significant advantages to state economic competitiveness.

  

Advertisements

Tags: , , , ,

One Response to “MICHIGAN ECONOMIC DEVELOPMENT – WHICH STATE TO EMULATE?”

  1. Dan Coffey Says:

    Chuck,

    Taxes are important. Right to work may be important, but I really would like to see the assumptions to all the rankings that you have proposed as gospel.

    And frankly, I think that starting from the position of trying to “imitate” or “do more of the same” is missing the point of needing to start from where we are.

    It also bypasses the strengths of Michigan as a “place” to which people are attracted because of the natural beauty, transportation, and high level post secondary education opportunities.

    Finally, I keep coming back to the fact that the larger cities on the west side of the state are actually growing and improving in the face of a very tough economy. What are they doing right? Or am I not correct about their growth and vitality?

    Thanks for the blog.

    Dan Coffey

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: