Detroit — general motorsChief economist optimistic about economic health Michiganposition to win more business, including GM.
This indicates that business sentiment about Michigan’s business environment is declining, despite the results of the Michigan Economic Outlook Survey released last week.
Elaine Backberg said at a Detroit Economic Club event that “not only are we not currently in recession, but inflation is falling, the economy and labor market are still strong, and the potential for a soft landing is on the horizon. I think it’s on the rise,” he said.
Backberg also indicated that Michigan is a prime candidate for more battery plants as automakers are making a huge shift to electric vehicles.
“We have more assembly plants here than anywhere else, so it makes sense to have more battery plants in or near Michigan,” Backberg said. Crane’s Detroit business,affiliate car news, after the event. “Those decisions have not been made, but the proximity of the battery plant to the assembly plant is very important.”
GM has announced new battery plants in Lansing, Ohio and Tennessee, and is reportedly planning another battery plant in Indiana.
“It would be wrong to think that was the end of it,” Backberg said. “There will be more battery factories. I don’t mean one. There will be more battery factories. There will be more EV assembly factories.”
Backberg said Michigan not only has an existing assembly plant, but it also benefits from proximity to supply bases and a strong, engineer-rich workforce.
Backberg’s thoughts were joined by Quentin Messer, CEO of the Michigan Economic Development Corporation, in the same debate.
“Whether you’re a site selector or a company that sees Michigan frequently, there’s the concept of Team Michigan,” Messer said. “When it comes to the business environment, there is a belief that we are collectively trying to find ways to make it better.”
Backberg and Messer remained positive about the future of Michigan’s economy, even as businesses worry about a possible recession and the state’s trajectory.
An annual prospects survey conducted by Baker Strategy Group found out from respondents’ answers to five key questions: whether Michigan is the best state to raise children, is a great state for young professionals, and is good for business. , indicated a drop in sentiment for the business. , whether it has a strong and vibrant economy and is on the right track.
The biggest drop was in the business category, which dropped 6 points to 61 out of 100.
Messer said he believes there is an outdated perception of the state’s business environment. “People have a very outdated perception,” he said. “I think people eventually froze Michigan.”
Backberg believes the survey’s findings were influenced by overall negative sentiment about the national economy, and as the Federal Reserve continues its efforts to cool the economy and inflation, “a soft landing is possible.” The sex is at least 50%,” he said.
“It also brings up another issue that the last two recessions have been extreme,” she said. “If the economy does go into recession in 2023, more than 90% of economists believe it will be short-lived.”
Messer added that regardless of the economic challenges, southern states will need to do what they can manage to attract companies as they compete fiercely for the automotive future.
“We are in a global competition,” Messer said. “Nobody, be it Ford, GM, Stellatis, is giving a discount to a home team…they have a set of shareholders with fiduciary responsibilities and the onus is on us to understand We have a fiduciary duty to men and women to pay taxes.
Backberg said Michigan has a home-field advantage, at least for GM. Repurposing old factories and sites across the state has significant economic advantages over building new facilities elsewhere. ford motor company$11 billion investment in Kentucky and Tennessee.
“Greenfield literally adds years and billions of dollars, so using an existing site is very powerful,” she said.
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