LANSING ? Michigan was second in the nation for new corporate facilities and expansions in 2004, just behind Texas, Gov. Jennifer Granholm announced Thursday. The kudos from Site Selection magazine come as pressure mounts from some quarters to eliminate the Michigan Economic Development Corp.
Site Selection magazine verified 653 such projects were launched in Michigan in 2004, just shy of No. 1 Texas with 668 new facilities and expansions. Granholm said Michigan, however, remains the national leader after eight years of tracking by Site Selection magazine. Between 1997 and 2004, Michigan welcomed a total of 10,882 major new developments and is the only state in the nation to top the 10,000-project mark.
“This is a remarkable showing for Michigan that speaks directly to the effectiveness of our strategy for attracting new business and new jobs to the state,” Granholm said. “Although it is great to be recognized as a national leader, what’s truly important is that these expansions result in thousands of jobs for Michigan workers.”
Michigan distinguished itself in two other areas. The Detroit metro area was named the second-best metro area in the nation, up from last year’s third place finish. Site Selection named Traverse City the second-best small town in the nation for business growth – the third year in a row that it has held the No. 1 or No. 2 ranking.
“The great news is that we are in a solid position with strong forward momentum,” said MEDC CEO Don Jakeway, noting that the MEDC recorded 205 projects more for 2004 than the previous year – a 45 percent increase. “Governor Granholm’s newest initiatives to grow businesses and create jobs in targeted, high-tech sectors have the potential to cement our economic development leadership for years to come.”
But Jakeway warned Tuesday night at the MichBio Annual Meeting that pressures are building in the state to ?kill the MEDC.??
The Mackinac Center along with some of the new Michigan legislators don?t think the state needs an economic development agency. Jakeway said they are wrong. Jakeway headed up economic development in Ohio before he was hired about 18 months ago by Granholm to head the MEDC. From 1991 to 1995 Michigan didn?t have an economic development agency, and Ohio ate Michigan?s lunch, he said.
?If Michigan eliminates its economic development programs, we could see a return to the bad old days of 1991-1995,? Jakeway said.
He said new legislators need to be educated so they understand just what the MEDC has done for Michigan. Certainly these latest statistics from Site Selection magazine speak volumes for the MEDC?s success.
To qualify for the Governor’s Cup competition, projects must have at least $1 million in new investment or reinvestment, 20,000 or more square feet of new construction or create 50 or more new jobs. Retail and residential construction projects do not qualify. The MEDC tracks project information and submits it to Site Selection magazine every year.
