Whitmer Takes Michigan’s $30B Defense Industry Global — With TACOM At The Core

Michigan’s defense and aerospace sector supports 160,000 jobs. A new strategy aims to capture more federal and international investment.

LANSING — When Gov. Gretchen Whitmer addressed global leaders at the Munich Security Conference this week, she wasn’t just participating in an international policy discussion. She was promoting one of Michigan’s most strategic economic engines: its $30 billion defense and aerospace industry.

At the center of that pitch is a uniquely powerful asset — the U.S. Army Tank-automotive and Armaments Command (TACOM), headquartered at the Detroit Arsenal in Warren.

TACOM manages lifecycle support and procurement for the U.S. Army’s ground combat and tactical vehicle fleet. If the Army buys, upgrades, maintains, or modernizes tanks and armored vehicles, that process runs through Michigan. The presence of TACOM anchors billions in federal contracting activity and reinforces Southeast Michigan’s status as the nation’s ground systems hub.

That structural advantage is a central pillar of the state’s newly released Defense and Aerospace Strategic Plan.

A $30 Billion Economic Engine

Michigan’s defense and aerospace ecosystem is far larger than many residents realize.

According to state and industry estimates:

• The sector contributes roughly $30–31 billion annually to Michigan’s economy

• More than 160,000 jobs are supported statewide

• Nearly 4,000 companies participate in defense and aerospace supply chains

Aerospace alone accounts for tens of thousands of high-wage engineering and manufacturing positions, with average salaries significantly above statewide norms.

Unlike some states that rely primarily on research contracts or a single military installation, Michigan combines federal command infrastructure, advanced manufacturing, engineering talent, and supplier density.

That integration makes it difficult to replicate.

Headquartered at the Detroit Arsenal, TACOM serves as the Army’s lifecycle manager for Abrams tanks, Stryker vehicles, tactical wheeled platforms, armaments, and sustainment systems.

Its responsibilities include:

• Contracting oversight

• Modernization planning

• Supply chain management

• Maintenance and sustainment coordination

Billions in federal procurement dollars flow through TACOM-managed programs each year. That funding supports a broad industrial base across Macomb County and beyond, reinforcing what is commonly referred to as the Michigan Defense Corridor.

For state officials courting international investors in Munich, TACOM represents more than a military installation — it represents institutional permanence and long-term federal spending stability.

The Industrial Base

Michigan’s defense strength rests on a deep industrial bench.

Major defense and aerospace companies with significant Michigan operations include:

• General Dynamics Land Systems, manufacturer of the Abrams tank and Stryker combat vehicle

• BAE Systems, a key armored vehicle producer

• GM Defense, leveraging automotive technology for military mobility

• Pratt & Whitney, aerospace propulsion operations

• L3Harris Technologies, advanced communications systems

• Williams International, headquartered in Pontiac

Supporting these primes are hundreds of Tier 1, Tier 2, and specialized suppliers in machining, electronics, advanced materials, cyber, AI integration, and mobility systems.

Many originated in Michigan’s automotive supply chain. As modern defense systems increasingly incorporate electrification, autonomy, and software integration, that crossover expertise becomes a competitive advantage.

Strategic Plan Focus: Growth and Diversification

Whitmer’s five-year Defense and Aerospace Strategic Plan outlines priorities including:

• Expanding advanced manufacturing capacity

• Attracting foreign direct investment

• Growing aerospace and space-related industries

• Strengthening military and federal partnerships

• Accelerating innovation in autonomous and AI-enabled systems

During the Germany mission, the state highlighted expansion commitments from firms including the RENK Group, which announced plans for a Michigan expansion projected to create approximately 300 jobs.