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Michigan - Back to Number 2 In The Nation For Aerospace Attractiveness

Michigan Business Beat
August 21, 2017 1:00 PM

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Michigan is back up to Number 2 in the nation for Aerospace attractiveness (see page labeled #4 of the linked pdf report from Price Waterhouse [#6 of 22]).

The aerospace and defense industry reported higher revenues and profits in 2016 compared with 2015. Demand for air travel increased by 6.3 percent in 2016, the second consecutive year above six percent and sixth consecutive year above five percent, which is consistent with the 20-year forecast,1 far exceeding global economic growth expectations, and causing heightened demand for aircraft, engine, and parts manufacturing. Large commercial aircraft production has already increased more than 40 percent since 2011, with long term forecasts calling for further increases.

Michigan moved into second place in the rankings after falling to eighth place last year. This improvement is supported by the state’s strong performance in the Economy, Infrastructure, and Cost categories. Looking at the subcategories in Economy, Michigan ranked third in the Consumer Price Index (CPI), sixth in Exports, and seventh in Manufacturing Output.

In the Costs subcategories, Michigan ranked second in Labor Productivity and sixth in the Cost of Materials. In Tax Policy, Michigan showed a slight improvement in the rankings, most likely a reflection of its policy to phase out personal property tax for most businesses. In Infrastructure, the state’s ranking was bolstered by the Quality of Electricity Supply.

The Michigan Aerospace Manufacturing Association continues to support the industry through research and development in the aerospace supply chain. While identifying opportunities for cost savings, the association has taken a proactive stance in the development of additive manufacturing technology and battery logistics. These efforts have helped attract investment in Michigan’s aerospace industry. In particular, AE Industrial Partners acquired Michiganbased Moeller Aerospace in 2016.

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