LANSING, Mich. (Michigan News Source) – The release of the 11th annual Michigan Economic Outlook Survey revealed that many Michigan businesses are less hopeful about Michigan as a state to do business in.  

Baker Strategy Group Managing Partner, David Baker, shared several insights from the survey.

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“Michigan has [a population of] about 10 million people with a labor force of about 4.9 million – 4.7 million who are employed – giving Michigan a 4.3 unemployment rate for now,” Baker said. “Generally you want to see scores at 70s, high 70s, low 80s.” 

With the 1,000 businesspeople and associations polled for outlooks over a six month, one year, and three year basis, many had concerns for the future.  Pollsters asked companies to answer on a  1- 10 scale but then converted it to a 1 – 100 scale based on the Claes Fornell International (CFI) Group’s method. 

Overall, Michigan received a 69 / 100 with 100 being “very likely” to recommend for growing a business in 2023, when it received five points higher in 2022, and a score of 80 in the year 2018 according to Baker.  

Several questions that were added to the business recommendation question pertained to Michigan’s suitability for raising a family, young professionals, business-friendliness, has a strong/vibrant economy,and if it’s on the right track.  Unfortunately, the state scored lower in all five categories since 2021.  

Chief Economist for General Motors, Elaine Buckberg, and CEO of Michigan Economic Development Corporation, Quentin Messer, Jr., spoke at the Detroit Economic Club meeting Thursday about the results. 

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Economic development and economic growth has to be bipartisan, according to Messer. 

“We’re not competing with each other, we’re competing with 49 other states, Mexican states, Canadian provinces,” he said, “There’s a global reallocation of capital resources.” 

He also spoke about the potential effect that repealing the right-to-work law in Michigan could have on future businesses.  He said he did not think many people perceive Michigan as a right-to-work state, but rather view Michigan as a state with a proud union heritage.  

“There may be some (companies) who reflexively will say no” to Michigan if the right-to-work law was repealed, he said. “I think they are going to be at a competitive disadvantage.”