Top contributors to Michigan's economy include manufacturing, financial services, real estate, and trade. Once the center of the U.S. automobile industry, Michigan’s largest city Detroit is now known for start-ups, a vibrant culture, and affordability. Automakers have also begun investing money back into Detroit and other parts of Michigan in order to develop technology such as batteries for electric vehicles and autonomous driving technology.
What are the reasons for doing business in Michigan?
Michigan received high marks for cost of doing business (A) and cost of living (A) in CNBC’s Top States for Doing Business report. Factors such as business tax climate, wage costs, and utility and housing costs go into determining these grades. Two cities, Ann Arbor and Grand Rapids, have also appeared on lists of best places to live in the U.S.
Another advantage that the state offers is its access to the Great Lakes. Michigan borders four of the five Great Lakes: Superior, Michigan, Huron, and Erie. The Great Lakes region as a whole generates several trillion dollars in gross domestic product.
What is the cost of doing business in Michigan?
Michigan has a 6% corporate income tax rate, a flat 4.25% individual income tax rate, and a 6% percent state sales tax rate. Michigan does not impose any local sales taxes, but jurisdictions may collect local income taxes. The Tax Foundation ranked Michigan 12th overall in its State Business Tax Climate Index.
What is Michigan’s infrastructure ranking?
In the latest infrastructure report card, Michigan received a C- from the American Society of Engineers, a step up from the D+ given to it in 2017. The report acknowledges the improvements made to Michigan’s roads, rail system, and other categories. It also noted that work still needed to be done to improve the state's roads, bridges, water systems, and energy grid.
What are the challenges of doing business in Michigan?
Michigan has a diverse and skilled workforce. According to the Michigan Economic Development Corporation (MEDC), an agency that works to advance Michigan’s economy, the state has the highest concentration of engineers in the U.S. But local government leaders have reported issues with workforce recruitment and retention. Based on recent census data, Michigan has seen its population decline for the past two years due to an aging population and more people have migrated out of the state than have moved in.