DETROIT — Michigan helped build the industries that built America. Now, as those industries undergo the most significant transformation in generations, the state is moving to ensure workers, businesses and communities are prepared to adapt—and compete—in a rapidly changing global economy.

At the Detroit Auto Show, Gov. Gretchen Whitmer and the Community & Worker Economic Transition Office announced the release of the state’s first-ever Michigan Economic Transition Strategy, a long-term framework designed to guide Michigan through economic shifts driven by electrification, automation, energy transition and supply-chain realignment.

“The State of Michigan is focused on growing our economy, creating good-paying jobs and preparing our workforce for the jobs of the future,” Whitmer said. “Michigan put the world on wheels, and we intend to keep making the best cars and trucks anywhere. This strategy ensures we support workers and communities through long-term change so future generations can thrive.”

Why Michigan Needs a Transition Strategy Now

Michigan remains a global manufacturing powerhouse, but its economy is still deeply tied to legacy automotive and industrial systems at a time of rapid disruption. Electric vehicles, battery production, software-defined manufacturing, artificial intelligence and federa

climate and industrial policy are reshaping how—and where—things are made.

Large manufacturers have begun adapting, but many small and mid-sized suppliers remain vulnerable. These firms often depend on internal combustion–related products, lack capital or technical expertise to pivot, and face growing competition from global suppliers already aligned with next-generation technologies.

Without intervention, Michigan risks losing not just individual companies but entire regional supply chains that support tens of thousands of jobs. At the same time, companies reshoring production are seeking stable domestic supply chains—creating an opportunity Michigan aims to capture through coordinated action.

From Reactive to Proactive Workforce Policy

Economic transitions rarely affect workers evenly. While Michigan’s workforce is highly skilled, many workers face displacement risks as job requirements change faster than training systems adapt. Programs are often fragmented, difficult to navigate or misaligned with employer demand, while transportation and geographic barriers limit access to opportunity.

Employers report persistent shortages in advanced manufacturing, clean energy and technical roles—even as uncertainty continues in legacy segments of the economy.

The strategy seeks to move Michigan away from reacting after layoffs or closures occur and toward a proactive, worker-centered model. The goal is to ensure workers can adapt alongside economic change, rather than being left behind by it.

Community Resilience Beyond One-Size-Fits-All Development

State engagement over the past 18 months revealed a consistent pattern: most Michigan communities understand their strengths. They may have a college, historic downtown, natural resources or a key employer capable of anchoring growth.

What they often lack is access to data, planning tools and collaboration mechanisms to translate vision into action. Historically, communities have been forced to respond after disruption hits—after a plant closes or jobs disappear—rather than preparing in advance.

Rather than prescribing top-down solutions, the state is positioning itself as a provider of information, coordination and capacity-building. The strategy emphasizes helping communities chart their own economic paths while giving them the tools to anticipate and manage change.

Breaking Down Economic Development Silos

Michigan has strong economic development assets, but they are spread across agencies, programs and jurisdictions. Workforce development, infrastructure planning, business attraction and community investment often operate in parallel rather than in alignment.

That fragmentation slows response times, complicates access to federal funding and dilutes the impact of public investment. The Economic Transition Strategy is intended to serve as a unifying framework—aligning government, industry, labor and communities around shared priorities without duplicating effort.

Three Priorities Guiding the Strategy

The Michigan Economic Transition Strategy centers on three interconnected priorities:

Industry Growth and Diversification

The strategy bridges Michigan’s industrial heritage with its economic future. It supports small and mid-sized manufacturers as they adapt to new technologies while positioning the state as a competitive destination for companies seeking resilient, next-generation supply chains.

Community Resilience

By providing data, technical assistance and planning support, the state is helping communities move from vision to implementation—without imposing a one-size-fits-all development model.

Employee Engagement and Empowerment

The Transition Office is coordinating resources to ensure workers—particularly those at risk of displacement—can access training, mobility and opportunity in emerging industries.

Industry and Labor Support

“As Michigan’s largest industries evolve, our response must be bold, coordinated and people-centered,” said James Harrison, director of renewable energies for the Utility Workers Union of America, AFL-CIO. “Michigan’s future prosperity depends on a workforce equipped with the skills to meet what’s next, and this strategy ensures workers are prepared for—and included in—the good-paying jobs created through economic transition.”

Glenn Stevens Jr., executive director of MichAuto, said the strategy provides a roadmap for manufacturers navigating global competition.

“By securing Michigan’s manufacturing legacy while embracing our economic future, this strategy helps small and mid-sized manufacturers adapt, compete and grow,” Stevens said. “It opens pathways for diversification, stronger supply chains and expansion into emerging sectors—while retaining good-paying jobs.”

Early Progress Signals Momentum

Even before its formal release, the Community & Worker Economic Transition Office has advanced several major initiatives, including a $3.5 billion procurement partnership with DTE Energy and Consumers Energy to strengthen local supply chains; the MI Hub for Manufacturers; the Community Growth Academy; the Reliable Rides playbook addressing transportation barriers; and expanded use of AI tools to enhance the MI Funding Hub.

Created in 2023 within the Michigan Department of Labor and Economic Opportunity, the Transition Office was charged with helping Michigan anticipate—not simply react to—economic disruption.

“This work is about more than managing change,” said Transition Office Director Jonathan Smith. “It’s about shaping what comes next and building a resilient economy where every region of Michigan can succeed.”

Looking Ahead

At its core, Michigan’s Economic Transition Strategy addresses a question facing industrial states nationwide: how to remain competitive, inclusive and resilient as the global economy evolves.

The strategy rests on a clear premise—economic transition is inevitable, disruption is uneven, and preparation is far less costly than recovery.

The full Michigan Economic Transition Strategy is available at MITransitionStrategy.org. More information and updates are available at Michigan.gov/EconomicTransition.