What Economic Diversification Means

When leaders in Michigan speak about “economic diversification,” they sometimes interpret it as moving away from our automotive heritage. To me, economic diversification entails building upon our spirit of ingenuity and the engineering capacity that our automotive companies and manufacturing firms have helped develop over the past century.

Our automotive companies must adjust to consumer demands for both performance and fuel efficiency and to national goals of reducing auto emissions and consumption of fossil fuels. We have a tremendous opportunity here in Michigan to create a new model for how we live and work, how we commute and access the marketplace, and how we connect as a region. Diversification entails transforming our automotive firms into transportation and mobility companies, developing alternative energy technologies for automobiles, and fostering more efficient and greener supply chains to move people and goods. We can and should be leaders in the development of intelligent transportation systems, mass transit technology, and the energy infrastructure that will help fuel greener vehicles. Government, in partnership with the private and nonprofit sectors, local governments, and academia must provide leadership to promote and implement this new automotive model.

Diversification also entails moving into new industries – producing goods and services that our nation and world demand and will demand in the 21st century. These sectors include life sciences and medical device manufacturing, aerospace, information technology, defense, film and multimedia production, and green logistics. Through the efforts of our Economic Development Growth Engine (EDGE), Wayne County is now the home to General Electric’s new Advanced Manufacturing and Technology Center, a $100 million facility that will develop next generation manufacturing technologies for GE’s renewable energy and other high-technology products. We are now also home to A123 system’s Center for Energy Excellence. A123 Systems will use its Wayne County Center for battery research and development to focus specifically upon uses for lithium-ion batteries in the automotive, defense, and alternative energy markets. These companies represent the cornerstone of Wayne County’s 21st century focus on emerging technologies and advanced manufacturing.

In addition to attracting new economy industries, we must also help our current automotive supplier industrial base understand the economic opportunities that are available to them outside of their traditional core automotive business. Our automotive suppliers here in Wayne County have unparalleled core competencies in engineering, manufacturing and quality. EDGE is highly involved in supplier diversification in Wayne County. In conjunction with the Michigan Manufacturing Technology Center (MMTC) and the MEDC’s Keep Michigan Working program, we continue to work with capable, highly-qualified automotive manufacturers and suppliers to inform them about non-traditional market opportunities which will enable them to apply knowledge and expertise to enter new industries and markets.

Wayne County EDGE is taking a leadership position in all areas of business attraction and retention, supplier diversification, and development of industries in the new economy markets. The County has one of the most sophisticated and aggressive economic expansion and attraction programs in the United States, which has resulted in a variety of successes in our target growth sectors. Yet, we recognize that there is still a lot more work to be done. I encourage you to visit us at www.waynecounty.com/edge to find out how working together, we can generate new and innovative opportunities for your business in Wayne County.