Detroit (Mar. 24, 2021) – Today, MICHauto, a statewide initiative of the Detroit Regional Chamber, released its “Mobility Industry’s Economic Contribution to Michigan” report, which defines the automotive sector as part of a growing mobility industry and offers a comprehensive assessment of the industry’s significant contributions to Michigan’s economy.

“The continuous transformation of automotive to a new mobility industry is an economic benefit to individual Michiganders, our region, and the state. Michigan must position itself to capitalize on the economic opportunity of mobility and lead with technology that solves global issues,” said Glenn Stevens Jr. (left), executive director of MICHauto and vice president of automotive and mobility initiatives for the Detroit Regional Chamber. “We must utilize the auto industry as a platform for diversification, with mobility leading to an expansion of data science, robotics, artificial intelligence, and automation that positions Michigan for sustained economic growth.”

The report defines the mobility industry “as the production and distribution of goods and provision of services that support any movement of people and products.” The report highlights how many jobs are tied directly and indirectly to the mobility industry and the significant impact on the region’s overall economy. The report focuses on data from 2019, which was the last year of complete economic data, and includes an early analysis of how COVID-19 impacted the industry.

View and download the powerpoint presentation from this event.

Some key statistics and trends highlighted in the report include:

EMPLOYMENT:

In 2019, employment in the mobility industry helped generate total direct and indirect employment of almost 1.1 million people in the state, approximately 20 percent of Michigan’s total employment.

ECONOMIC IMPACT:

The mobility industry’s total gross economic output was $304 billion in 2019, representing 28 percent of Michigan’s gross economic output.

TAX PAYMENTS:

The mobility industry, directly and indirectly, contributed more than $9 billion in state and local taxes.

COMPENSATION:

Directly and indirectly paid $71 billion in compensation (salary and benefits for payroll employees and the income of self-employed and proprietors), for an average compensation of $65,000.

COVID-19 IMPACT:

Direct and indirect employment of the mobility sector sharply declined to around 800,000 annualized through the second quarter of 2020, down from 1.1 million in 2019. Direct labor income fell to just under $54 billion from $71 billion. Meanwhile, value-added and gross economic output significantly declined from $125 billion and $304 billion, respectively, to $89 billion and $209 billion.

“The COVID-19 pandemic had a devasting initial impact on Michigan’s manufacturing; however, innovation and safety protocols allowed the automobility industry to safely reopen and lead a significant recovery for the state in the second half of 2020,” said Stevens.

The Chamber released the report today during its 2021 State of the Automobility event. The report was created in partnership with Public Sector Consultants and with the support of the Michigan Economic Development Corporation.

For more information, including the full State of Automobility, visit michauto.org/mobility-econ-report-2021.

MICHauto is a statewide economic development initiative of the Detroit Regional Chamber, dedicated to promoting, retaining, and growing the automotive industry in Michigan. MICHauto – an initiative of the Chamber’s Forward Detroit strategy – embodies a public-private strategy, championing Michigan as the global epicenter of the automotive industry and providing a platform for collaboration on advocacy, business attraction and retention, and talent attraction and development. Serving as the unified voice of Michigan’s automotive cluster, MICHauto works closely with the Michigan Economic Development Corporation, Original Equipment Suppliers Association, Center for Automotive Research, and other Michigan and national organizations. To learn more, visit MICHauto.org.

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