Defense Industry Contributes $31 Billion To Michigan Economy

DETROIT – It’s an industry that contributes $31 billion to the economy here yet most folks don’t hear much about it, even though its presence is felt economically across all 83 counties, according to the Michigan Economic Development Corporation.

The defense industry is also a vital part of our state’s past: We became known as the Arsenal of Democracy during World War II when our auto plants were quickly transformed to make bombers and more for the war effort. Our future is also tied to growing our defense sector as folks I talked to mentioned Michigan is perfectly positioned with its engineering and advanced manufacturing might, as well as its penchant for innovation.

“Michigan is where the automotive industry got its start,” said Mark Ignash, interim executive director of the Michigan Defense Center and senior sector development director and defense adviser to the MEDC. “More than 100 years later, it’s still the global center and nexus of commercial automotive, electrification and military technology.”

Michigan is home to some of the country’s largest ground vehicle defense companies, such as General Dynamics Land Systems, BAE Systems, GE Aviation and more, he added. Statewide, there are 4,000 companies in the defense, aerospace and homeland security sectors and thousands of jobs tied to them, according to the MEDC.

“This is an industry that is important but seems to fly under the radar as many are not aware of everything that the DoD (Department of Defense) procures, as well as just how many businesses are engaged in the supply base,” Ignash said.

He added: “The defense industry is everything under the sun, from defense land systems to enabling technologies such as AI to aerospace to homeland security and everything else that needs to be procured to sustain our national defense.”

A few interesting stats he shared: