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MSU hosts workshop on state's economic challenges

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  Published in Food and Wine on Thursday, October 30th 2025 at 20:04 GMT by WILX-TV
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Michigan State University Hosts Workshop to Tackle State’s Economic Challenges

On Friday, October 30, 2025, Michigan State University (MSU) convened a high‑profile workshop titled “Addressing Michigan’s Economic Challenges: Strategies for Growth and Resilience.” The event, held in the MSU College of Business’s downtown Lansing lecture hall, brought together state policymakers, business leaders, academic researchers, and community advocates to chart a roadmap for revitalizing Michigan’s economy amid a rapidly changing global landscape.

The Economic Context

Michigan has long been synonymous with manufacturing, especially the auto industry, which historically accounted for a substantial portion of the state’s GDP. However, over the past decade, the sector has faced unprecedented pressure from automation, supply‑chain disruptions, and increased competition from electric‑vehicle (EV) manufacturers worldwide. Additionally, the state has struggled with workforce shortages, declining population in some rural counties, and uneven regional development. These challenges were highlighted in the Michigan Economic Outlook 2025 report (Michigan.gov/outlook2025), which notes that while the state’s overall GDP growth remains positive, growth rates vary significantly between regions and industries.

“Michigan’s resilience hinges on our ability to diversify and modernize our economic base,” said State Representative Karen Mitchell, a keynote speaker. “We need coordinated policy and community action to create jobs that pay living wages and secure long‑term prosperity.”

Workshop Participants and Structure

The workshop was organized by the Michigan Economic Council (MEC) in partnership with MSU’s College of Business and the Department of Technology, Management, and Budget (DTMB). Approximately 120 attendees, including representatives from the Michigan Department of Economic Development (DED), the Michigan Manufacturing Innovation Center (MMIC), and local chambers of commerce, participated in three breakout sessions:

1. Manufacturing & Innovation – Focused on adopting advanced manufacturing technologies, fostering EV supply‑chain resilience, and expanding research‑intellectual property collaborations between academia and industry.
2. Workforce Development – Examined skill gaps, apprenticeship models, and the role of community colleges in preparing workers for high‑tech manufacturing and service sectors.
3. Regional Development & Infrastructure – Discussed upgrading transportation networks, broadband expansion, and incentives for rural economic revitalization.

The event concluded with a plenary session where participants identified actionable policy recommendations and next‑step commitments.

Key Insights and Proposals

1. Investing in Advanced Manufacturing

Prof. Dr. Elaine R. Kline, a leading researcher at the MSU College of Engineering, presented data on the potential of additive manufacturing (3D printing) and robotics to reduce production costs and improve flexibility for small‑to‑medium enterprises (SMEs). “By integrating these technologies, Michigan firms can regain competitiveness against overseas manufacturers,” she asserted. The workshop agreed to launch a Statewide Advanced Manufacturing Initiative that would provide grants and tax credits to companies adopting automation technologies. A link to the initiative’s guidelines can be found on the Michigan Department of Economic Development website (https://www.michigan.gov/ded/advanced-manufacturing).

2. Building a Skilled Workforce

The session on workforce development highlighted a 10‑percent skill‑gap in critical engineering and data‑analysis roles, according to a recent Michigan Workforce Assessment (https://www.michigan.gov/ded/workforceassessment). In response, participants proposed expanding Michigan’s apprenticeship programs, integrating STEM curricula with real‑world project work, and offering incentives for companies that partner with local community colleges. A proposed Apprenticeship Expansion Act would allocate $20 million annually over five years for this purpose.

3. Strengthening Infrastructure and Digital Connectivity

The regional development group underscored the importance of broadband and transportation infrastructure. Rural communities in the Upper Peninsula, for instance, still face limited internet speeds that inhibit remote work and telemedicine. To address this, the workshop recommended a partnership between the Department of Technology, Management, and Budget and the Michigan Public Service Commission to expand fiber‑optic networks. The plan includes a $100 million investment in broadband infrastructure, with a timeline for completion by 2030. A more detailed roadmap can be accessed through the Digital Michigan initiative (https://www.michigan.gov/digitalmichigan).

4. Enhancing Economic Incentives and Tax Policy

State Representative Mitchell urged a review of the existing corporate tax structure. The workshop panel suggested creating a “Michigan Innovation Tax Credit” for firms that demonstrate measurable improvements in productivity or workforce training outcomes. Additionally, the panel advocated for streamlining permitting processes and reducing bureaucratic red tape to accelerate business expansion, especially in emerging sectors like renewable energy and advanced materials.

Stakeholder Reactions

John Carter, CEO of a mid‑size automotive supplier in Lansing, praised the workshop as “a pivotal step toward ensuring Michigan’s manufacturing sector remains a national leader.” He emphasized the need for “public‑private collaboration” and noted that his company is already in talks with the MMIC to pilot new lightweight material production.

From an academic perspective, Dr. Kline expressed optimism that the workshop’s recommendations would “create a fertile environment for translational research and entrepreneurship.” She noted that MSU’s College of Business has already secured a $2 million grant to establish an Innovation Hub dedicated to nurturing start‑ups in the manufacturing technology space.

Moving Forward

The workshop concluded with a commitment to a Regional Economic Development Task Force that will meet quarterly to monitor progress on the proposed initiatives. The task force will comprise representatives from the Michigan Department of Economic Development, the Michigan Manufacturing Innovation Center, MSU’s College of Business, and key industry stakeholders. The first meeting is scheduled for early December, with a publicly accessible report expected in February 2026.

The outcomes of this workshop signal a strategic shift in Michigan’s approach to economic development—moving from traditional manufacturing reliance toward a diversified, innovation‑driven model. By aligning academic research, industry expertise, and state policy, Michigan is poised to build a resilient economy that can withstand global disruptions while providing high‑quality jobs for its residents.

Additional Context from Linked Sources

1. Michigan Economic Council (MEC) – The MEC’s official website (https://www.mec.org) provides a comprehensive overview of current economic trends in Michigan, including quarterly labor statistics, business climate surveys, and policy briefs. The council’s Annual Report 2025 highlights a 3.2% increase in the manufacturing sector’s contribution to the state’s GDP, albeit with a noted decline in export volumes.

2. Michigan Department of Economic Development (DED) – The DED’s Advanced Manufacturing Initiative page outlines eligibility criteria, funding mechanisms, and success stories of companies that have received support. The portal also offers a Business Accelerator Toolkit for startups.

3. Michigan Manufacturing Innovation Center (MMIC) – The MMIC’s website (https://www.michigan.com/innovationcenter) showcases its research collaborations with local universities, its technology transfer office, and a directory of partners engaged in developing next‑generation automotive components.

4. MSU College of Business – The college’s page (https://msubusiness.msu.edu) highlights its research centers, industry partnership programs, and workforce development initiatives. The Innovation Hub under construction is expected to provide incubation services, mentorship, and access to cutting‑edge manufacturing labs.

5. Michigan Digital Initiative – The Digital Michigan portal (https://www.michigan.gov/digitalmichigan) provides data on broadband coverage, digital literacy programs, and investment opportunities for telecom infrastructure projects.

These resources collectively underscore the multi‑layered approach being adopted by Michigan’s stakeholders to address economic challenges—combining research, policy, and industry engagement to create a sustainable, high‑growth economic ecosystem.