Each new year presents its economic challenges and opportunities for Michigan businesses.

These are impacted by large-scale trends in factors like productive capacity, supply chain capabilities or interest rates, as well as consumer behaviors and pocketbooks. Regardless, there are several fundamentals upon which our Michigan economy will rely in the coming year.

Balanced contributions from economic sectors, including manufacturing

Michigan possesses a diverse economy with important contributions from many areas, which include real estate and professional services, government, education, health care, retail and other services, construction, tourism, and agriculture. However, within the overall Michigan economy, manufacturing remains a leading contributor, with approximately $100 billion annually in total manufacturing output. In fact, Michigan created more than 148,000 new manufacturing jobs from 2009 to 2023 — an increase of 32% — thus remaining a national leader in manufacturing job creation and outpacing most other states, according to the Bureau of Labor Statistics.

This is fortunate, for it is abundantly clear that a modern economy must embrace manufacturing to advance the domestic knowledge base, supply a large range of needed products and materials, and generate gross domestic product.

At the same time, our manufacturing sector is responsible for significant new investment in advanced technologies and new facilities, the smart factories of tomorrow where real-time data analytics and precision engineering increase both efficiency and safety. Practically speaking, manufacturing has one of the highest multiplier effects of any economic sector in terms of employment and economic output.

Workforce development

Importantly, economic strength relies on the skills, experience, and productivity of our workforce.

These are two key aspects in crafting and building this workforce. The first is having a strong educational system, from technical training at community colleges to our colleges, universities, and professional schools, to prepare individuals for the knowledge- and skill-based careers of the future. For example, responding to healthcare demands, Michigan now has seven schools graduating medical doctors.

The second aspect is what individual companies do to be companies that people want to work for and where they foster career growth for all of its people. This requires a complex brew of intangible and tangible factors, which includes ongoing training and development, and upskilling individuals for the jobs of tomorrow.

Putting it all together

Clearly, businesses prosper when leadership invests wisely in their company’s facilities and other infrastructure. And when leadership supports the research and product development appropriate to their industry or service sector, and, as just indicated, invests in people.

As we proceed in the new year, we must make the best use we can of the skills, experiences, motivations, and insights of all people in our society, catalyzed by strong doses of trust, acceptance, and empowerment. This will go a long way to nurturing the Michigan business climate.

Christopher R. Griffin is President and Chief Executive Officer, USG (United States Gypsum). Sarah Messa is Plant Manager, USG River Rouge.