LANSING – Michigan’s urban areas could lead the state to a new recovery with some readjustment of the state’s economic development priorities, a report commissioned by Business Leaders for Michigan said.
The report, Michigan’s Urban and Metropolitan Strategy, developed by Public Sector Consultants and the Brookings Institution Metropolitan Policy Program, said Michigan’s cities already lead the nation in many areas key to the coming economy.
“Michigan’s metropolitan areas are positioned to succeed in the next economy because of their strong history in manufacturing and innovation, significant share of Michigan’s existing export economy, high concentration of global talent and investment, and substantial inroads on the production side of the low-carbon economy,” the report said.
Among the findings, six of Michigan’s cities had higher patent rates per 1,000 residents than the national average over the last decade, Grand Rapids is second in green product production and development and Detroit is first among the top 20 metropolitan areas for the proportion of its production that is exported.
But the cities also still have high unemployment rates and low educational attainment and are not using the anchors and business clusters they have to develop new industry.
To help the cities develop, the report recommended that the state concentrate its economic development and workforce development funds on the needs of those urban areas, particularly for small businesses.
Among the proposals was developing a grant program that would support business clusters either already in place or developing within a few urban areas. In up to three communities, the report recommended more extensive support of an anchor business through a 21st Century Places Fund that would provide assistance with not only infrastructure for the businesses, but also housing and amenities for workers.
The report also called for changing the 21st Century Jobs Fund to focus on innovative manufacturing, particularly for small manufacturers. It also recommended more assistance, again particularly to small manufacturers and service providers, for exporting their products.
Where there are gaps in a cluster not being filled by a native company, the report recommended a direct foreign investment program that would attract firms to fill those positions.
And workforce funds should be geared to the needs of the clusters in each urban area, the report said. Where federal laws conflict with those needs, the state should be seeking changes to those laws, it said.
The state also should be helping foreign-born residents with the necessary skills earn the certificates they need for skilled trades and professions, the report said. It noted that, while Michigan has fewer foreign-born residents in its cities than some other states, its foreign-born residents tend to have higher educational levels.
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