In terms of employment, between 2011 and 2012, private sector

Опубликовано: Июнь 26, 2014 в 13:45

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Michigan’s business climate and economy have improved in the past few years, according to a report released today by Business Leaders for Michigan, but it’s not been enough to make Michigan a top-10 state.»Michigan is making a comeback,» the organization’s president and CEO, Doug Rothwell, said. «But we still have more work to do.»Rothwell went over some of the highlights and areas that needed improvement that were contained in the 2013 economic competitiveness benchmarking report as he spoke to the more than 400 in attendance at the group’s CEO Summit at the Westin Book Cadillac Detroit today.Thanks to the elimination of the Michigan Business Tax and the shift to the Corporate Income Tax, the state’s corporate tax climate has risen from second worst in the nation to the seventh best.It also found that per-capita GDP, per-capita personal income and employment have grown more than most of Michigan’s peer states since 2009.But despite the improved business tax climate, on average, the report found businesses pay more to operate in Michigan than in top-10 states. The state also ranks in the bottom 10 states in which to do business.The bulk of those costs to do business consisted of labor costs, which the report found were 15 percent higher in Michigan than the top-10 average. Also part of calculating the cost of doing business in the state: energy costs and state and local taxes.State ranks in R&D, patent workThe report showed Michigan is a top-10 state for research and development and patent work. Venture capital availability has been growing, and its ranking has grown from 33rd in the nation to 19th, the report said.Duo Security CEO Dug Song, a tech entrepreneur who has been involved in a number of successful startups, said all of his companies have been backed by venture capital, but all the money has come from the coasts.What has helped his companies grow is the strong connection he has with the University of Michigan and its crop of engineers, he said.Regarding talent in the state, the Business Leaders report found talent production is good, but college attainment is low. Part of the talent deficit is attributed to low numbers of people with college degrees moving to Michigan, the report found.Also kmerksemsc.be , students In Michigan are not as well prepared to enter college, according to the report. In 2012, just 21 percent of high school graduates had career- and college-ready ACT composite scores. That is 10 percentage points lower than the average of the top 10 states.In terms of employment, between 2011 and 2012, private sector employment in Michigan grew at the sixth-fastest rate in the country. But Michigan’s unemployment rate in 2012 was still 3 percentage points above the average of the top 10 states.Since 2009, Michigan’s annual unemployment rate has dropped four times faster than the national average, but is still 1 percent higher.»We need to recognize that just getting back into the game isn’t the same thing as actually winning the game,» Rothwell said.One important consideration to help encourage businesses to locate in a state are incentives, the report said, but noted that Michigan is one of just four states that does not offer any job, investment or research and development tax incentives. The other three states that don’t offer incentives — Nevada, Wyoming and South Dakota — also do not have a corporate income tax.Michigan Economic Development Corp. President and CEO Michael Finney said tax credits used to be the way to attract businesses to the state, but that hurt local and state budgets, and is no longer the best tool to use.»Talent is the new currency in economic development,» Finney said.Rothwell called for cohesion at the summit, saying everyone needs to help when it comes to creating jobs. He said it doesn’t help anyone if the state is divided, whether east versus west, Democrat versus Republican, or labor versus management»That is old Michigan kmerksemsc ,» he said. «The good thing is, we are seeing those divisions recede.»Chris Gautz: (517) 403-4403, [email protected]. Twitter: @chrisgautz Related LinksDuo Security VC round caps season

Michigan economy improving, but state falls short of top 10

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