2017-2022
Comprehensive
Economic
Development
Strategy
Western Upper Peninsula, MI
Economic Development District
Planning & Development Region 13
Table of Contents
Chapter
Page
1. Introduction
1
2. Background
3
3. Regional Profile
8
4. Infrastructure, Facilities, and Services
34
5. The Economy
51
6. Planning/Economic Development Network
64
7. Issue Identification
68
8. Goals and Objectives
72
9. Implementation Plan
75
Chapter 1 Introduction
PURPOSE
The Western Upper Peninsula Planning and Development Region Commission (WUPPDR or “Western
Region”) has served as an Economic Development District under the United States Economic
Development Administration (EDA) since 1970. Since then, WUPPDR has worked closely with EDA to
monitor and plan economic development initiatives. A comprehensive economic development strategy,
or CEDS, serves as one of our region’s primary economic development plans (supplemented by the
Regional Prosperity Plan described later in this document). EDA, in its 2015 Content Guidelines,
describes the CEDS as follows:
Simply put, a CEDS is a strategy-driven plan for regional economic development. A CEDS
is the result of a regionally owned planning process designed to build capacity and guide
the economic prosperity and resiliency of an area or region. It is a key component in
establishing and maintaining a robust economic ecosystem by helping to build regional
capacity (through hard and soft infrastructure) that contributes to individual, firm, and
community success. The CEDS provides a vehicle for individuals, organizations, local
governments, institutes of learning, and private industry to engage in a meaningful
conversation and debate about what capacity building efforts would best serve
economic development in the region. The CEDS should take into account and, where
appropriate, integrate or leverage other regional planning efforts, including the use of
other available federal funds, private sector resources, and state support which can
advance a region's CEDS goals and objectives.
Initially created as a planning document for EDA-funded projects, the CEDS has since evolved into a
multi-purpose and comprehensive planning tool. Along with its original purpose, the CEDS is used as a
reference in developing projects across many of WUPPDR’s program areas.
THE CEDS PROCESS
The CEDS is prepared by WUPPDR staff based on planning and input from the CEDS Committee under
oversight of the WUPPDR Commission. For this update, the Western Upper Peninsula (U.P.) Regional
Prosperity Collaborative, discussed in Chapter 2 and later chapters, has been designated the CEDS
Committee. WUPPDR staff drafted the CEDS background relying on existing information and data that
have become available since the previous CEDS update. The 2017 CEDS was adopted by the WUPPDR
Commission in April 2017.
Major updates to the CEDS are completed every five years, with annual performance updates in the
intermediate years. Annual updates include responses to a call for potential projects, which include
input from member municipalities, the public, and engineers. Previous editions of CEDS documents and
annual updates are available on WUPPDR’s website at http://www.wuppdr.org.
ECONOMIC DEVELOPMENT ACCOMPLISHMENTS
In the last 13 years, WUPPDR has collaborated with area municipalities, organizations and universities
on the development of several EDA- and Michigan Economic Development Corporation (MEDC)-funded
planning and construction projects in the region. Some highlights include:
1
Chapter 1 Introduction
2004: WUPPDR facilitated an $800,000 EDA grant to renovate three floors of the Jutila Center for Global
Design and Business in Hancock (previously the Portage View Hospital). The Jutila Center, part of the
campus of Finlandia University in Hancock, houses classrooms, studios, and a business incubator along
with a Michigan Tech Enterprise Corporation (MTEC) SmartZone incubator. Both provide vibrant work
spaces and operating support to new and emerging businesses. This renovation was made successful
through an innovative plan to combine high-tech business with art and design.
2005: WUPPDR authored an EDA grant for $1 million to assist Michigan Technological University
(Michigan Tech) in constructing its Advanced Technology Development Complex (ATDC) in Houghton.
The ATDC provides space for high-tech business start-ups, prototyping, research, testing laboratories,
and conference space, in addition to business support services offered through Michigan Tech’s
Corporate Services and MTEC SmartZone.
2007: MEDC funded $1 million to renovate MTEC SmartZone’s Powerhouse facility in Houghton with
WUPPDR authoring and administering the grant. The Powerhouse incubator renovation tripled the
square footage with the creation of two new floors. Subsequently the building has housed satellite
operations of various large companies.
2008: The largest EDA grant WUPPDR has applied for and administered was $3.2 million to benefit the
City of Houghton, Michigan Tech, and SmartZone. The project provided complete refurbishment of the
three-story former Upper Peninsula Power Company building now named the Lakeshore Center. The
building houses university offices and is MTEC SmartZone’s flagship facility providing high-tech office
and laboratory spaces for several established businesses and new start-ups. WUPPDR secured $500,000
from MEDC allowing MTEC SmartZone to lease the first floor of the Lakeshore Center for 20 years. This
was EDA’s first LEED-certified building funded by the Global Climate Change Mitigation Incentive Fund.
2012: EDA provided $35,000 for Baraga County for development of an economic development strategy.
Entitled "Go! Baraga County," the strategy identified several opportunities for new or expanded
industries to improve and diversify the county's economy. One of these was to supply infrastructure to
an industrial park later funded by EDA. In 2009, in the depths of the Great Recession, Baraga County at
one time had the highest county unemployment rate in the nation.
2014: WUPPDR assisted the Village of L'Anse in Baraga County in obtaining $1.3 million dollars toward
expansion of sewer and road infrastructure to serve the mostly undeveloped Lambert Road Industrial
Park. Industrial park space with a lease-to-own option is highly in demand in the county. Though
construction has been delayed by environmental factors, it is still expected to be completed.
2016: WUPPDR assisted Keweenaw County in obtaining $20,000 from MEDC and $25,000 from EDA
toward a commercial appraisal and Best Use Study for the beleaguered Keweenaw Mountain Lodge
resort and conference facility located near the northern tip of the Keweenaw Peninsula.
In addition to these economic development projects, WUPPDR also runs a variety of programs which
provide broad support to the region. Some other areas of work include transportation planning,
housing rehabilitation, master/comprehensive planning, recreation planning, asset management,
emergency management, and geographic information systems (GIS) services.
Over the next five years, WUPPDR looks forward to continued collaborative support from its funding
partners to create economic development and regional support opportunities in the Western U.P. More
details on future projects can be found in Chapter 9: Implementation Plan.
2
Chapter 2 Background
REGIONAL PLANNING ORGANIZATIONS
A regional planning organization is a multi-service entity with State and locally-defined boundaries that
delivers a variety of Federal, State, and local programs, and acts as a technical assistance provider and
“visionary” to its member local governments. As such, they are accountable to local units of government
and are effective partners for State and Federal governments.
Regional planning organizations (regions) in Michigan were first conceived in the 1960s with the
perspective that local governments must work together regionally to provide important services to their
communities, including comprehensive and transportation planning, economic development, workforce
development, the environment, services for the elderly, and clearinghouse functions. Most of the 14
planning regions in Michigan are also EDA economic development districts. In this capacity and others,
the three regions of the Upper Peninsula—regions 11, 12, and 13—often work beyond their boundaries
to provide cross-regional opportunities for development.
Planning at the regional level is different from the municipal, township, or county levels. Regional
planners respond to region-wide problems in a single integrated area, but they usually report back to a
variety of governments rather than to just one. Since they are not usually responsible to a single unit of
government, regional planning organizations encourage independent governments to act in concert if
regional objectives are to be attained.
With all governments facing budget reductions, the importance of regionalism and collaboration is
becoming apparent in order to provide programs and services to a larger geographic boundary. Regional
organizations would benefit from more stable financial resources, along with more consistent support
from a wide variety of Federal aid programs and strong support from and linkage to State governments.
Regional problems and needs occur everywhere, and regional planning and regional organizations are
likely to become even more important and more effective in the decades ahead.
WUPPDR's Organization and Management
WUPPDR was first formed as the Western Upper Peninsula Economic Development District (EDD) under
the auspices of the Michigan Department of Commerce and the EDA. The organization was constituted
in 1968 through Michigan Public Act 46, the County or Regional Economic Development Act of 1966, and
Michigan Public Act 281, the Regional Planning Act of 1945. In 1970, the organization changed its name
to Western Upper Peninsula Planning and Development Region Commission and reconstituted itself to
operate under sole authority of Public Act 281, to which it still adheres today. WUPPDR's mission is to
foster stable and diversified economies in the Western Upper Peninsula.
Executive Directive No. 1968-1 established official and uniform Planning and Development Regions to be
used by principal departments, agencies and instrumentalities of State government. The overall
objective of this action was to better coordinate State programs with one another and with Federal,
regional, local, and private-sector programs. Other Executive Directives reaffirmed the precepts of No.
1968-1 and modified the regional configurations that would best facilitate continued progress toward its
objectives. The six counties of WUPPDR conformed to the substate regional boundaries established by
the Governor and became Planning Region 13. See Map 2-I.
3
Chapter 2 Background
Map 2-I: Michigan Planning Regions
Governance
The regional planning commission’s membership is composed of organizations who are primarily minor
civil divisions of local government. Currently these members include the Counties of Baraga, Gogebic,
Houghton, Iron, Keweenaw and Ontonagon; the Cities of Hancock and Houghton; the Village of
Ontonagon; and the Charter Townships of Calumet and Portage.
4
Chapter 2 Background
WUPPDR's governing body is a 29-member commission composed of 51 percent public elected officials.
Commissioners are appointed to the WUPPDR Commission by participating members and represent a
diverse group of public and private interests. The full Commission meets quarterly.
The officers of the Commission are elected every two years. Each of five counties is represented by one
officer. The five officers, plus one representative of a sixth county that rotates each year as not being
represented by an officer, comprise the Executive Committee. The Executive Committee acts in lieu of
the full Commission in interim months, six times a year. The current members (2017) are as follows:
 , Keweenaw County – Chair
 , Houghton County – 1st Vice Chair
 , Ontonagon County – 2nd Vice Chair
 , Gogebic County – Treasurer
 , Iron County – Secretary
 , Baraga County – Member
Michigan's Regional Prosperity Initiative
In 2013 the State of Michigan began the Regional Prosperity Initiative (RPI), a grant program to build and
improve collaboration among a wide range of organizations within regions throughout the state. RPI
made funding available, on a voluntary competitive basis, to planning regions and metropolitan planning
organizations "to encourage local private, public and non-profit partners to create vibrant regional
economies." This included a planning and stakeholder engagement process with regular meetings to
include, at minimum, representatives of the following focus areas: economic, workforce, and later
community development; adult and higher education; and transportation. Another major goal of RPI at
the state level was to align disparate service areas of state agencies.
RPI funding was available at three tiers: 1) regional prosperity collaborative, which required
development of a regional prosperity plan (RPP) with a "5-year economic development blueprint"; 2)
regional prosperity council, which was to develop a 10-year blueprint and identify opportunities for
shared administrative services and decision-making among participating entities; and 3) regional
prosperity board, which was to consolidate various boards along with federal economic development
district(s) (thus highly relevant to EDA) and to develop a report examining state-funded services and
programs and potential state-regional partnerships. The tiers had progressively higher levels of funding
and organizational structure.
For purposes of RPI, the 14 state designated planning regions were re-designated, and in some areas
realigned and/or combined, into 10 prosperity regions. See Map 2-II. The 3 planning regions of the
Upper Peninsula were designated the "Upper Peninsula Prosperity Alliance," composed of regions 1a
(west), 1b (central), and 1c (east), which remained separate for service delivery and funding eligibility
purposes. (Service delivery areas were similarly designated within two of the Lower Peninsula prosperity
regions.) In 2014, all planning regions were funded at the collaborative level except for one region in the
Lower Peninsula that was awarded as a regional prosperity board.
RPI entered its second year in 2015. Most regions were again funded at tier 1 (collaborative) level, the
exceptions being Central Upper Peninsula Planning and Development (region 1b), which was funded as a
council, and the single Lower Peninsula board. Funding in 2015 was used primarily to implement
projects identified in the individual regional prosperity plans. Implementation continued in 2016 and
now 2017, and guidelines for attaining each tier level changed.
5
Chapter 2 Background
RPI has produced positive outcomes throughout the state. The program has become a major focus of
activity and funding in the state's planning regions. In some regions, the RPI process has been directly
connected with EDA planning, including the plans and strategy documents themselves; thus, RPI is an
essential consideration in this CEDS.
Operations and Finances
Currently a staff of five full- and part-time
persons, supplemented by occasional
interns, assists the WUPPDR Commission
in management of its business and
program implementation.
Figure 2-I: Funding Sources
Other TA/Local, $21,342, 5%
MEDC, $11,220, 3%
MSHDA,
$61,936,
13%
Member
Dues,
$52,956,
11%
EDA,
In 2017, WUPPDR's budget is
$85,000,
approximately $464,000. Grants and
18%
programs provide 84.3% of revenues,
membership dues 11.4%, and technical
MI RPI,
$130,000,
assistance (TA) programs 4.3%. Revenues
MDOT,
28%
are shown in these categories, and
$101,867,
separately categorized by funding sources,
22%
in Figure 2-I. From time to time WUPPDR
calculates a return on investment for its
members, demonstrating the revenues
returned for every dollar provided through
membership dues. From 2010 through 2015, WUPPDR returned $39.44 in revenues for every dollar
contributed by member governments.
6
Chapter 2 Background
Map 2-II: Michigan Prosperity Regions
7
Chapter 3 Regional Profile
LOCATION AND BOUNDARIES
WUPPDR is bounded to the north and west by Lake Superior. The southern boundary is formed by the
Montreal River, the Michigan-Wisconsin boundary line, and the Brule and Menominee Rivers. The east
side of the region is defined by the eastern boundaries of Baraga and Iron Counties. The region also
includes the Isle Royale archipelago located approximately 40 miles northwest of the mainland.
MINOR CIVIL DIVISIONS
There are 73 minor civil divisions within the Western Upper Peninsula, most of which are shown in Map
3-I (villages were omitted for clarity). Besides the six counties, which include Baraga, Gogebic, Houghton,
Iron, Keweenaw, and Ontonagon, there are 48 townships, 10 incorporated villages and nine
incorporated cities. Two of the cities—Houghton and Hancock—are the core of a Census-designated
micropolitan statistical area comprised of Houghton and Keweenaw Counties. The other cities are
generally distributed over the southern corners of the region. Three Indian reservations and a number of
Census-designated places (CDPs) also exist.
Map 3-I: Civil Divisions in the Western U.P.
8
Chapter 3 Regional Profile
STATE AND FEDERAL DESIGNATIONS
Besides the corporate and other municipal civil divisions outlined above, the Western Region contains a
large number of State- and Federal-designated sites, routes, facilities, and other subdivisions. Some are
preserved for public access, recreation, or environmental quality; others are utilized for promotion of
tourism; and still others are set aside for targeted economic development. Federal designations also
include the Indian reservations, which are defined as domestic dependent sovereign nations within the
United States, and North American Free Trade Agreement (NAFTA) Distressed Areas, which receive
economic revitalization benefits. Tables 3-I and 3-II and Maps 3-II and 3-III display the major State and
Federal designations in our region, including designations significant to recreation, forestry, economy,
and transportation.
9
Chapter 3 Regional Profile
Table 3-I: State Designations in the Western U.P.
Designator
Designation
Name
Department of
Environmental
Quality
Underwater
Preserve
Program
State Parks
Department of
Natural
Resources
State Forests
State Forest
Campgrounds
State Forest Path
Keweenaw Great Lakes
Bottomland Preserve
Houghton,
Keweenaw
Agate Falls Scenic Site
Baraga State Park
Bewabic State Park
Bond Falls Scenic Site
Craig Lake State Park
Fort Wilkins State Park
Lake Gogebic State Park
McLain State Park
Porcupine Mountains
Wilderness State Park
Twin Lakes State Park
Baraga State Forest
Copper Country State Forest
Keweenaw Point State Forest
Beaufort Lake
Big Lake
Deer Lake
Emily Lake
Big Eric’s Bridge
Glidden Lake
King Lake
Lake Mary Plains
Iron Belle Trail (Bicycle
Route)
Ontonagon
Baraga
Iron
Ontonagon
Baraga
Keweenaw
Gogebic
Houghton
Ontonagon,
Gogebic
Houghton
Baraga
Baraga
Keweenaw
Baraga
Baraga
Iron
Houghton
Baraga
Iron
Baraga
Iron
Facilities: Hiking, Picnic Area
See also: michigan.gov/baraga
See also: michigan.gov/bewabic
See also: michigan.gov/bondfalls
See also: michigan.gov/craiglake
See also: michigan.gov/ftwilkins
See also: michigan.gov/lakegogebic
See also: michigan.gov/mclain
Iron Belle Trail (Hiking Route)
Department of
Transportation
Michigan
Economic
Development
Corporation
Notes
A 243 square mile area of Lake
Superior bottomland designated as
an area of significance for divers.
State Trails
Pure Michigan
Byways
County
Copper Country Trail
National Scenic Byway
Iron County Heritage Trail
Marinas and
Harbors
Harbors and Harbors of
Refuge
Core
Communities
City of Bessemer
City of Ironwood
City of Wakefield
City of Houghton
City of Caspian
City of Crystal Falls
City of Gaastra
City of Iron River
10
Gogebic, Iron
Baraga, Gogebic
Houghton,
Ontonagon
Houghton,
Keweenaw
Iron
Baraga, Gogebic,
Houghton,
Keweenaw,
Ontonagon
Gogebic
Gogebic
Gogebic
Houghton
Iron
Iron
Iron
Iron
See also: michigan.gov/porkies
See also: michigan.gov/twinlakes
See Map 3-II for locations.
All MI State forest campgrounds are
located on a river or lake, providing
excellent access to fishing, boating
and canoeing. Other recreation
opportunities include picnicking,
mushroom gathering, berry picking,
cross country skiing and hunting.
Mainly concurrent with U.S. Highway/
Bicycle Route 2
Concurrent with North Country Trail
See Map 3-II for locations.
Core Communities designations
provide communities with three
economic development tools:
Brownfield Redevelopment
Incentives; Neighborhood Enterprise
Zones; and Obsolete Property
Rehabilitation Exemptions.
Chapter 3 Regional Profile
Map 3-II: State Designations in the Western U.P.
11
Chapter 3 Regional Profile
Table 3-II: Federal Designations in the Western U.P.
Designator
Congressional
Designation
Department
of Agriculture
Designation
National Wild
and
Scenic Rivers
System
National
Wilderness
Preservation
System
County
Baraga, Houghton
Baraga, Marquette
Gogebic
Gogebic, Ontonagon
Iron
Baraga, Marquette
Baraga, Houghton
Gogebic
Baraga, Gogebic,
Houghton, Iron,
Ontonagon, Marquette
US National
Forest
Ottawa National
Forest
National Forest
Scenic Byway
Black River Scenic
Byway
Gogebic
Keweenaw Bay Indian
Community
Baraga and Ontonagon
Lac Vieux Desert
Reservation
Gogebic
Indian
Reservations
Department
of Interior
Title
Sturgeon River
Yellow Dog River
Black River
Presque Isle River
Paint River
McCormick
Wilderness
Sturgeon River Gorge
Wilderness
Sylvania Wilderness
Keweenaw National
Historical Park
Houghton
Isle Royale
National Park
Keweenaw
North Country Trail
Baraga, Gogebic,
Houghton, Ontonagon
National Park
National Scenic
Trail
Notes
See Map 3-III for locations;
additional information is available
at www.rivers.gov/michigan.php
Established by National
Wilderness Act in 1964 to
preserve Federally managed land
areas in their natural condition.
Composed of 981,000 acres,
which cover 63% of total forested
land within forest boundaries.
In cooperation with Federal
Highway Administration’s Byway
Program.
See Map 3-I: Civil Divisions in the
Western Upper Peninsula
The Park is comprised of two
units, located in Calumet and
north of Hancock (Quincy Mine
Hoist Association site).
Includes 132,018 acres of abovewater land; total boundary area is
571,790 acres. Park is also
designated as a Biosphere Reserve
by the United Nations
Educational, Scientific, and
Cultural Organization (UNESCO).
The North Country Trail runs
through seven tates and links
4,600 miles of scenic, natural,
historic and cultural areas.
HISTORIC FEATURES
The National Register of Historic Places (NRHP) is the official list of the nation’s historic places worthy of
preservation. Authorized by the National Historic Preservation Act of 1966, this Federal program
supports efforts to identify, evaluate, and protect America’s historic and archaeological resources.
Historic Districts allow communities and property owners to take advantage of tax-credits and grants
and allow for historic design guidelines and ordinances. Thirty-two sites in the Western Region listed by
the United States Department of the Interior (USDI) on the NRHP are inventoried in Table 3-III below.
12
Chapter 3 Regional Profile
Map 3-III: Federal Designations in the Western U.P.
13
Chapter 3 Regional Profile
Table 3-III: Federal Historic Designations in the Western U.P.
Name of District or Establishment
County
Assinins
Baraga
Herman and Anna Hanka Farm
Big Traverse Bay Historic District
Calumet and Hecla Industrial District
Calumet Downtown Historic District
Calumet Historic District
East Hancock Neighborhood Historic District
Lake Linden Historic District
Houghton
Laurium Historic District
Painesdale Historic District
Quincy Mining Company Historic District
Quincy Mining Company Stamp Mills Historic District
Quincy Street Historic District
Shelden Avenue Historic District
Alpha Public Building and Historic Complex
Amasa Historic Business District
Courthouse Residential Historic District
Falls Location Historic District
James Mine Historic District
Mansfield Mine Location Historic District
Iron
Park City Historic District
Triangle Ranch Headquarter Historic District
Van Ornum’s Addition Historic District
Van Platen-Fox Lumber Camp Historic District
Hiawatha Mine Number One Complex
Camp Gibbs
Central Mine Historic District
Eagle River Historic District
Fort Wilkins
Keweenaw
Johns Hotel
Keweenaw Mountain Lodge
Minong Mine Historic District
Ontonagon Harbor Piers and Historic District
Ontonagon
Designator: USDI (NRHP)
14
Chapter 3 Regional Profile
POPULATION PROFILE AND TRENDS
The Region’s Population History
The beginning of the nineteenth century introduced an ever increasing interest in the copper region of
Lake Superior that culminated, shortly after mid-century, in the establishment of one of the greatest
mining areas of the world. The territory we know as the Western Upper Peninsula of Michigan was
inhabited in the early 1800s by Native Americans, primarily of the Ojibwa nation. There were also a few
non-native Americans and some Europeans. These were trappers, traders, fishermen, and missionaries.
Settlement of the territory did not begin, however, until the United States Government negotiated a
treaty with the Ojibwa during 1842, at which they ceded their lands in the Western Upper Peninsula to
the United States. The treaty helped prepare the way for opening up that part of the territory which
would become known as the Lake Superior Copper District.
As the copper and tin mines in Cornwall, England fell on hard times, the Cornish miners quickly homed in
on the promising reports from the northern tip of Michigan. A serious migration of Cornishmen began in
the mid-1840s. In the second half of the 19th century, Finnish immigrants came to the region. Excessive
tax burdens, elusive land titles, and opposition to new religious teachings joined forces with poor soil and
growing seasons in their native land to stir their migratory spirits. These two groups were augmented with
French Canadians, Irish and Scandinavians, again lured by the logging and mining opportunities. These
were followed by Italians, Germans, Poles, Slovenians, Croats, and Scots, among others.
The population grew slowly until after the Civil War in 1865, when the region’s natural resources of
copper, timber, and iron ore helped support the nation’s rapid industrialization and westward expansion.
The exploitation of these resources required large labor inputs which in turn offered an opportunity to
earn a livelihood. This population was composed of Americans, of course, but it also had many ethnic
groups from Europe, recruited specifically to fill a manpower shortage.
The region’s population zenith was reached in 1920 and thereafter declined with each decennial census
until 1970, after closure of almost all remaining mines in the 1960s. A small recovery occurred from 1970
to 1980, with a population increase of 2.0%. Thereafter, despite a regional increase of 261 in the 1990s,
regional population has continued long-term decline to the year 2010. The region's population declined
46.2% from 1920 to 2010 but only 15.1% from 1960 to 2010. Thus, even though there has been a
perception of severe population loss over the past few decades, losses since 1960 pale in comparison to
the net loss since 1920. The regional population trend based on the Decennial Census is illustrated in
Figure 3-I. In 2010, the Western U.P. accounted for under 1% of Michigan's population.
Data in the early years of Figure 3-I are influenced by two factors that warrant explanation: changes in
boundaries and in Census methodology. First, in 1843 the Michigan Legislature divided the Upper
Peninsula into six counties: Chippewa, Delta, Mackinac, Marquette, Ontonagon, and Schoolcraft. These
original counties were subdivided by the Legislature over the years, ultimately resulting in the current 15
Upper Peninsula counties. It wasn’t until the 1880-1890 period that territorial adjustments to these
counties ceased and the boundaries remained as they are found today. Second, it was not until 1860 that
the Federal government counted Native Americans in the decennial census, and even then, Indians were
counted only if they had left their reservations. The 1890 census was the first attempt to obtain a complete
census of Native Americans throughout the country.
15
Chapter 3 Regional Profile
Figure 3-I: Historical Population Patterns of Western U.P.
180,000
153,674
160,000
Population
140,000
120,000
100,000
82,668
80,000
60,000
40,000
20,000 1,907
0
2010
2000
1990
1980
1970
1960
1950
1940
1930
1920
1910
1900
1890
1880
1870
1860
1850
Within the region, the Western U.P. counties have not uniformly partaken in the long-term population
loss. Figure 3-II illustrates each county's population each 10 years from 1960 to 2010. Three counties have
seen severe declines over this period: Gogebic, Iron, and Ontonagon. Keweenaw's long-term change has
been minimal. Houghton and Baraga Counties increased, the latter probably owing to construction of the
major Baraga Correctional Facility in 1993. A correctional facility was also constructed in Gogebic County
in 1971, but it is difficult to gauge what impact this may have had on the population trend at the time.
Figure 3-II: Population by County, 1960-2010
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Baraga
Gogebic
1960
Houghton
1970
1980
Iron
1990
2000
Keweenaw
Ontonagon
2010
Table 3-IV includes total Decennial Census population figures for 1960, 1990, 2000, and 2010, along with
American Community Survey (ACS) figures for 2010 and 2015, for each county. ACS 2010 figures are
included to allow comparison with ACS 2015 figures, since Decennials Census and ACS data are collected
in different ways, the former being an actual count and the latter based on samples.
16
Chapter 3 Regional Profile
Table 3-IV: Population by County, 1960-2015
U.S. Census (Decennial)
County
Baraga
Gogebic
Houghton
Iron
Keweenaw
Ontonagon
TOTALS
1960
1990
2000
2010
7,151
24,370
35,654
17,184
2,417
10,584
97,360
7,954
18,052
35,446
13,175
1,701
8,854
85,182
8,746
17,370
36,016
13,138
2,301
7,818
85,389
8,860
16,427
36,628
11,817
2,156
6,780
82,668
19602010
Change
23.9%
-32.6%
2.7%
-31.2%
-10.8%
-35.9%
-15.1%
ACS (5-Year Estimates)
20102010
2015
2015
Change
8,882
8,690
-2.2%
16,471 15,824
-3.9%
36,192 36,660
1.3%
12,057 11,507
-4.6%
2,122
2,198
3.6%
6,976
6,298
-9.7%
82,700 81,177
-1.8%
Gogebic, Iron, and Ontonagon Counties each lost over 30 percent of population from 1960 to 2010 amid
a region-wide loss of 15.1%. Total population of the region was somewhat stable from 1990 to 2000 but
again substantially declined from 2000 to 2010. Population decline continued over the following five
years, with Houghton County the only one to gain population from 2010 to 2015. During this period the
region-wide population loss was 1.8%.
The current population projections available for Michigan were developed for the period 2010-2045 by
MDOT and University of Michigan. The numbers from 2010 to 2015 do not align with other population
figures used in this document, so they must be viewed as general guidelines rather than a confirmedaccurate basis for decision-making.
With those caveats, Table 3-V shows population projections for counties in the region to the year 2045.
The numbers suggest three decades of little long-term population change at the regional level. However,
as with other statistics in this document, trends vary drastically across the region. Ontonagon County is
expected to lose nearly one-quarter of its estimated 2017 population, continuing its current trend.
Gogebic County is projected to see moderate loss, Baraga and Houghton moderate growth, and the
remaining two counties relatively stable.
Table 3-V: Population Projections, 2017-2045
County
2017
2020
2025
2030
2035
2040
2045
Baraga
8,454
8,374
8,407
8,569
8,766
8,918
9,006
Gogebic
15,048 14,659 14,368 14,257 14,166 14,006 13,741
Houghton
36,258 36,244 36,473 36,787 37,252 38,031 39,123
Iron
11,356 11,380 11,496 11,619 11,630 11,469 11,202
Keweenaw
2,136
2,115
2,112
2,104
2,084
2,076
2,079
Ontonagon
5,763
5,487
5,173
4,954
4,800
4,633
4,440
TOTALS
79,015 78,259 78,029 78,290 78,698 79,133 79,591
Change
552
-1,307
2,865
-154
-57
-1,323
576
6.5%
-8.7%
7.9%
-1.4%
-2.7%
-23.0%
0.7%
SOURCE: MDOT & University of Mich. Institute for Research on Labor, Employment, and the Economy
Demographic Indicators
Age Structure
The aging of the Western U.P.'s population is a key factor in the region's population decline. Aging is also
in some ways a result of the population decline, as young people continue to leave the region in
disproportionate numbers.
17
Chapter 3 Regional Profile
Figure 3-III shows the median age trend for each county and the State. The median age of each county
other than Houghton has increased almost every decade from 1970 to 2010 and again to 2015. Based on
ACS, In Houghton County, where students make up a large percentage of the population, the median
age in 2015 is 32.8 years – well below the State median age of 39.5. The median age in every other
county in the region is much higher than the state's. Ontonagon County's median age is 55.6 years, and
two-thirds (66.9%) of residents there are 45 years or older; 30.6% are 65 or older. Region-wide 20.6% of
residents are 65 or older; statewide this figure is 15.0%. Such disparities are important to consider in
ongoing evaluation of regional needs and services.
Figure 3-III: Median Age by County, 1970-2015
60
Median Years in Age
50
40
30
20
10
0
Baraga
Gogebic
1970
Houghton
1980
1990
Iron
2000
Keweenaw
2010
Ontonagon
State of
Michigan
2015 (ACS)
Racial Composition
The region's population is overwhelmingly White. Among persons of one race, White persons account
for 91.7% of the region's total population, Black or African American 3.3%, and American Indian & Alaska
Native 1.3%. The largest minority population is in Baraga County, where 18.5% of the total population is
composed of Black or African American persons of one race and 4.5% is composed of American Indian &
Alaska Native persons of one race. The second-largest minority population is in Gogebic County, where
those two racial groups account for 4.6% and 2.4% respectively. The largest population of minorities of
other races is in Houghton County, where 2.9% of the population is composed of Asian persons of one
race. The smallest minority population is in Keweenaw County, where 98.4% of the population is
composed of White persons of one race. Hispanic or Latino persons of any race account for 1% of the
region's population.
Table 3-VI shows the racial composition of the region and its counties in comparison to Michigan and
the United States, both of which have much larger minority populations.
18
Chapter 3 Regional Profile
U.S.
Michigan
Region
Ontonagon
Keweenaw
Iron
Houghton
Gogebic
Race
Baraga
Table 3-VI: Racial Composition (%) by County, 2015
One Race
97.5 98.5 98.0 98.4 99.9 98.5 98.2 97.4 97.0
White
73.8 90.9 93.6 96.6 98.4 96.3 91.7 79.0 73.6
Black or African American
18.5 4.6 0.7 0.5 0.9 0.3 3.3 14.0 12.6
American Indian & Alaska Native
4.5 2.4 0.4 0.7 0.5 1.1 1.3 0.5 0.8
Asian
0.6 0.5 2.9 0.4 0.1 0.5 1.6 2.7 5.1
Native Hawaiian & Other Pacific Islander
0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.2
Some Other Race
0.1 0.1 0.2 0.3 0.0 0.4 0.2 1.1 4.7
Two or More Races (White + race indicated)
2.5 1.5 2.0 1.6 0.1 1.5 1.8 2.6 3.0
White + Black or African American
0.4 0.1 0.4 0.3 0.0 0.2 0.3 0.9 0.8
White + American Indian & Alaska Native
1.5 0.9 0.8 1.0 0.1 1.0 0.9 0.6 0.6
White + Asian
0.1 0.1 0.4 0.1 0.0 0.0 0.2 0.4 0.6
All Others
0.5 0.3 0.4 0.2 0.0 0.2 0.4 0.7 1.0
Hispanic or Latino (of any race)
Not Hispanic or Latino
1.0 0.9 1.1 1.4 0.7 0.9 1.0 4.4 16.3
99.0 99.1 98.9 98.6 99.3 99.1 99.0 95.6 83.7
SOURCE: ACS 5-Year Estimates
NOTES: All subheadings are percentages of the total population, not that of the higher-level headings.
Due to rounding, percentages may not equal 100% where expected.
Educational Attainment
The region generally has a lower level of educational attainment among persons 25 years and older than
does the state, with notable exceptions:



The region has a slightly smaller percentage of people with less than a high school education
than the State (9.2% versus 10.4% respectively).
Houghton County has a higher level of educational attainment than the State, with 31% of
residents having at least a bachelor's degree compared to the State's 27% and 11.8% having a
graduate or professional degree versus the State's 10.5%, and 19.2%.
Keweenaw County has approximately the same percentage of people with at least an associate's
degree as the State (about 36%). (This is not true of any other county except Houghton).
Region-wide, 47.6% of people age 25 and older have achieved at least high school graduation or
equivalency. Another 21.2% have attended some college, and 8.6% have received an associate's degree,
14.7% a bachelor's degree, and 7.9% a graduate or professional degree. Baraga County has the lowest
level of educational attainment; Houghton and Keweenaw the highest. See Figure 3-IV.
19
Chapter 3 Regional Profile
Figure 3-IV: Educational Attainment, Age 25 and Over, 2015
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Baraga
Gogebic
Houghton
Iron
Keweenaw
Ontonagon
Less than 9th grade
9th to 12th grade, no diploma
High school graduate (includes equivalency)
Some college, no degree
Associate's degree
Bachelor's degree
Graduate or professional degree
REGION
STATE
SOURCE: ACS 5-Year Estimates
HOUSING
As of the 2010 Census there were 52,037 housing units in the region, an increase of 2,316 units, or 4.7%,
from the 2000 Census count of 49,721. The estimated number of units as of 2015 is 51,968. Table 3-VII
shows the housing stock of the region, Michigan, and United States by year built. The region's housing is
extremely old, with over one-third of units having been built in 1939 or earlier. Housing built in the decade
beginning in 2010 is on track to be a drastic decrease from the 2000 to 2009 construction period.
Table 3-VII: Housing Units Year Built (2015)
Michigan
United States
Region
% of
% of
% of
Year Built
# of Units
# of Units
# of Units
Units
Units
Units
Total
51,968
4,539,838
133,351,840
Built 2014 or later
25
0.1%
2,584
0.1%
143,974
0.1%
Built 2010 to 2013
305
0.6%
29,943
0.7%
1,944,533
1.5%
Built 2000 to 2009
4,413
8.5%
467,993
10.3%
19,861,107
14.9%
Built 1990 to 1999
4,738
9.1%
589,554
13.0%
18,636,635
14.0%
Built 1980 to 1989
4,459
8.6%
449,765
9.9%
18,331,828
13.7%
Built 1970 to 1979
6,561
12.6%
697,381
15.4%
20,932,720
15.7%
Built 1960 to 1969
4,054
7.8%
550,207
12.1%
14,589,774
10.9%
Built 1950 to 1959
4,512
8.7%
695,384
15.3%
14,315,811
10.7%
20
Chapter 3 Regional Profile
Table 3-VII: Housing Units Year Built (2015)
Michigan
Region
% of
% of
Year Built
# of Units
# of Units
Units
Units
Built 1940 to 1949
3,409
6.6%
365,228
8.0%
Built 1939 or earlier
19,492
37.5%
691,799
15.2%
United States
% of
# of Units
Units
7,034,375
5.3%
17,561,083
13.2%
SOURCE: ACS 5-Year Estimates
As of 2015 it is estimated that only 32,996 (63.5%) of the region's housing units are occupied, leaving
36.5% vacant. However, as Table 3-VIII establishes, 72.4% of the region's units considered vacant by the
U.S. Census, or 24.3% of all units, are "for seasonal, recreational, or occasional use." This reflects the very
strong presence of second/vacation homes in the region, with a tendency for "snowbird" residents to live
in the region for the summer season and travel to the southern U.S. for winter. Seasonal home incidence
is highest in Keweenaw County, where both the economy and the population have a strong seasonal
dynamic, and lowest in Houghton County, which has a stronger base of year-round employment and
activity, particularly around the Houghton/Hancock micropolitan area. There is a much higher seasonal
vacancy presence in the Western U.P. than in Michigan (5.8% of all units) and the U.S. (3.5%).
Table 3-VIII: Housing Occupancy
County
Total
Units (2015)
Occupied (2015)
#
Baraga
5,235
2,974
Gogebic
10,749
6,741
Houghton
18,603
13,765
Iron
9,256
5,392
Keweenaw
2,473
1,040
Ontonagon
5,652
3,084
Region
51,968
32,996
Michigan
4,539,838
3,841,148
U.S.
133,351,840 116,926,305
Vacant (2015)
% of
#
Total
56.8%
2,261
62.7%
4,008
74.0%
4,838
58.3%
3,864
42.1%
1,433
54.6%
2,568
63.5%
18,972
84.6%
698,690
87.7% 16,425,535
% of
Total
43.2%
37.3%
26.0%
41.7%
57.9%
45.4%
36.5%
15.4%
12.3%
Seasonal/Temporary/
Occasional Use (2010)
% of
% of
#
Total Vacant
1,383 26.2% 75.7%
2,490 23.1% 66.3%
2,761 14.8% 62.7%
2,814 30.6% 77.7%
1,278 51.8% 87.9%
1,932 34.1% 80.0%
12,658 24.3% 72.4%
263,071 5.8% 39.9%
4,649,298 3.5% 31.0%
SOURCE: 2015 ACS 5-Year Estimates; 2010 Census
Table 3-IX shows that the Western U.P. has a greater predominance of owner-occupied (76.6%) over
renter-occupied (23.4%) units than Michigan (71% owner/29% renter) or the U.S. (63.9% owner/35.1%
renter). The greatest percentage of renter-occupied units over owner-occupied units among the region's
counties is in Houghton County, with nearly one-third (31.9%) renter-occupied – the primary factor likely
being the large population of college students in Houghton County. The smallest percentages of renteroccupied units are in Keweenaw (11.3%) and Ontonagon (12.2%) counties.
The table also shows that among types of housing structure, 81.3% of occupied housing units in the
region are single-unit detached dwellings. This compares to 72.1% in Michigan and 61.6% in the U.S. The
greatest percentage of single-unit detached dwellings is in Keweenaw County (89.5%, attributable in
part to the quantity of seasonal homes) and lowest in Houghton (73.8%, again likely related to the
prevalence of students and renters).
21
Chapter 3 Regional Profile
The region's strong incidences of owner-occupied and detached homes is consistent with an ingrained
tradition of homeownership. And homeownership may be more financially attainable in the region than
in Michigan and the U.S. overall: The region's county median home values range from $68,800 (Gogebic)
and $68,900 (Ontonagon) to $102,000 in Keweenaw (the only county where the figure exceeds
$100,000). The comparable figures are $122,400 statewide and $178,600 nationwide.
Table 3-IX: Housing Tenure and Other Indicators (2015)
Owner-Occupied Renter-Occupied
1-Unit
Occupied
Median
County
Detached, %
Units
Home Value
#
%
#
%
of Occupied
83.0%
Baraga
2,974
2,498 84.0%
476 16.0%
$88,100
84.0%
Gogebic
6,741
5,247 77.8%
1,494 22.2%
$68,800
73.8%
Houghton
13,765
9,373 68.1%
4,392 31.9%
$93,800
87.4%
Iron
5,392
4,515 83.7%
877 16.3%
$74,400
89.5%
Keweenaw
1,040
922 88.7%
118 11.3%
$102,000
85.5%
Ontonagon
3,084
2,709 87.8%
375 12.2%
$68,900
81.3%
Region
32,996
25,264 76.6%
7,732 23.4%
72.1%
Michigan
3,841,148 2,728,815 71.0% 1,112,333 29.0%
$122,400
61.6%
U.S.
116,926,305 74,712,091 63.9% 42,214,214 35.1%
$178,600
SOURCE: ACS 5-Year Estimates
Construction of residential units in the Region has been influenced by the overall economy. For many
years until 2006, activity was fairly stable. A dramatic drop occurred in 2007, particularly in Houghton
County, accelerating to a low point in 2011 with little recovery through 2015. Estimated building permits
granted in the region from 2006 to 2015 are shown in Table 3-X and Figure 3-V.
Table 3-X Estimated Building Permits Issued
County
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Baraga
24
30
9
11
6
5
10
10
12
5
Gogebic
Houghton
Iron
Keweenaw
Ontonagon
TOTAL
65
117
34
23
19
282
37
76
37
18
14
212
22
72
30
13
15
161
20
62
35
10
8
146
18
57
43
9
9
142
13
44
35
0
0
97
22
30
34
0
8
104
15
53
34
0
0
112
8
58
20
8
5
111
TOTAL
122
244
605
327
93
84
1,474
24
35
25
12
6
107
SOURCE: U.S. Census Building Permits Survey
Figure 3-V: Estimated Building Permits Issued
120
100
80
60
40
20
0
Baraga
Gogebic
Houghton
Iron
Keweenaw
2006
2007
2008
2009
2010
2011
22
2012
2013
2014
2015
Ontonagon
Chapter 3 Regional Profile
Changing Populations
As the population ages, there is a growing focus on providing living environments and infrastructure
suited to the needs and preferences of today's senior citizens. Whereas in the past many seniors
preferred to live out their lives in the same locations they had been accustomed to for decades, there is
a renewed interest among both the young and the old in urban living environments. Development of the
region's small urban centers is vital to both satisfying older adults and attracting and retaining younger
ones. National trends have guided state policy to prioritize "placemaking" and targeting of services and
funds to areas of concentrated development where programs can have the greatest impact.
Opportunities for creating vibrant urban environments in the region are limited, but many communities
have residential areas within or adjacent to downtown with easy access by foot, bicycle, wheelchair, or
other assistive devices to destinations such as grocery stores, banks, pharmacies, and medical offices. In
such areas it is important to maximize the benefits of self-contained “one-stop” living by prioritizing
development of safe and accessible pedestrian routes and by appropriately tailoring municipal
regulations such as zoning to neighborhood needs. In outlying areas, both residential and commercial,
improved public transit service can aid in promoting livability and integration among neighborhoods.
School Districts
The region is organized into three Intermediate School Districts (ISDs). They include Copper Country ISD
(which includes Baraga, Houghton, and Keweenaw Counties), Gogebic-Ontonagon ISD, and Dickinson-Iron
ISD (only Iron County is in the region). The ISDs provide administrative services, special education, career
and technical education, continuing teacher education, and other services for local school districts and
serve as liaison between the State Board of Education and the local areas. There are 23 local public school
districts and three nonpublic schools in these three ISDs. The local and intermediate school districts are
shown along with county designation in Table 3-XI and Map 3-IV below.
23
Chapter 3 Regional Profile
Table 3-XI: Western Upper Peninsula School Districts
Arvon Township Schools
Baraga Area Schools
Baraga
L’Anse Area Schools
L’Anse Sacred Heart School (private)
Adams Township School District
(crosses into Ontonagon County)
Public Schools of Calumet, Laurium & Keweenaw
Chassell Township Schools
Dollar Bay – Tamarack Area Schools
Copper Country ISD
Elm River Township Schools
Hancock Public Schools
Houghton
Houghton-Portage Township School District
Lake Linden-Hubbell Public Schools
Stanton Township Public Schools
Horizons Alternative School
BRIDGE Alternative School
Copper Country Christian School (private)
Keweenaw
Grant Township School, District No. 2
Bessemer Area School District
Ironwood Area Schools
Wakefield-Marenisco School District
Gogebic
Watersmeet Township School District
Gogebic-Ontonagon
Our Lady of Peace School (private)
ISD
St. Sebastian School (private)
Ewen-Trout Creek Consolidated School District
(crosses into Houghton County)
Ontonagon
Ontonagon Area School District
Forest Park School District
Dickinson-Iron ISD
Iron
West Iron County School District
24
Chapter 3 Regional Profile
Map 3-IV: Western Upper Peninsula School Districts
25
Chapter 3 Regional Profile
PHYSICAL FEATURES
The Great Lakes Ecosystem & Lake Superior Basin
The nonliving environment and all living organisms occupying and interacting in a given area are
considered an ecosystem. The Western U.P. is part of the Great Lakes drainage basin, an ecosystem that
encompasses 292,000 square miles and contains the largest supply, 20%, of the world’s fresh water. The
five Great Lakes (Superior, Huron, Michigan, Erie and Ontario) and almost 80,000 other lakes are a key
link in this fragile ecosystem, supporting the 35 million inhabitants (27 million in the U.S. and roughly 8
million in Canada) that share responsibility for its health.
Within the Great Lakes drainage basin lies the Lake Superior basin, home to the WUPPDR Region. The
basin encompasses three States on the U.S. side—Minnesota, Wisconsin, and Michigan—and the province
of Ontario on the Canadian side. The basin is sparsely populated with roughly 700,000 persons. Almost
half of the population resides in the urban areas of Duluth, Minnesota; Thunder Bay, Ontario; and Sault
Ste. Marie, Ontario. The rest is scattered in small towns mostly near the coastline of the lake. Early French
traders gave it the name “Lac Superieur,” French for “Upper Lake.” Lake Superior is the largest freshwater
lake in the world with 31,700 square miles of surface area and it holds 53.8% of the water in the Great
Lakes. The lake is 350 miles in length and 160 miles across at its widest point. Its mean depth is 489 feet
and 1,333 feet at its deepest point. It has a coastline of 1,826 miles, of which 909 miles are in the United
States and 917 miles are in Canada. There are 1,525 tributaries that empty into the lake, of which 840 are
in the U.S. and 685 are in Canada. Approximately 91% of the basin is forested. In Canada (Ontario) about
95% of land is in public ownership, and in the United States, about 25% is in public ownership.
Regional Water Resources
The Western U.P. has 354 miles of Lake Superior coastline and another 96 miles of Keweenaw waterway.
The coastline is over 50% developed—largely by small residences—and development continues. The
region also has approximately 7,500 inland water bodies with nearly 102,300 acres of water. The six
counties of WUPPDR contain all or parts of seven watersheds discharging into Lake Superior, numerous
small coastal watersheds, one that discharges to Lake Michigan, and one that discharges to the
headwaters of the Wisconsin River as part of the Mississippi River basin.
Groundwater resources are provided via two physiographic divisions, the Superior Upland and the Central
Lowlands. The Superior Upland includes most of the Western Upper Peninsula with quality ground water
available but in low-yielding Precambrian glacial deposits. Central Lowland is found in the northeast
quadrant of the region primarily along the Lake Superior coastline and groundwater levels differ
considerably in these areas.
In the Western Upper Peninsula, 220,235 acres or approximately 5.5% of the region has been identified
as wetlands. They are found in each of the six counties and range from a low of 3.0% in Ontonagon County
to a high of 8% in Iron County. The wetlands acreage percentages in the remaining counties are as follows:
Gogebic, 4.8%; Houghton, 5.4%; Baraga, 6.6%; and Keweenaw, 7.5%. In their natural conditions wetlands
provide many benefits to the region. These include food and habitat for fish and wildlife; water quality
improvement; flood protection; shoreline erosion control; natural products for human use and
opportunities for recreation; and aesthetic appreciation. Each wetland works in combination with other
wetlands as part of a complex, integrated system that delivers these benefits. Michigan has a very
comprehensive regulatory program aimed at preserving and protecting wetland resources.
26
Chapter 3 Regional Profile
Natural Resources
Beyond water itself, the economic foundation of the region has been shaped by its people and natural
resources—particularly native copper, iron ore, timber, and fisheries. Since at least 3000 B.C. Lake
Superior copper has played a significant role in the lives of Native American societies throughout eastern
North America. By the mid-1800s both the copper and iron ore deposits had attracted a large European
population who settled parts of the region around these mines. Large-scale commercial harvesting of the
region’s timber and Great Lakes fish stock came after profitable minerals were exhausted.
Forestlands
History
Following the mining booms of the mid-1800s, the eastern part of the forest in the Western Region was
composed primarily of white and red pine while the western part had pine interspersed with hardwood
and hemlock. The first logging occurred in the pine stands near settlements established around mining
areas. Here, timber companies produced mine and building timbers, flat lumber for surface
construction, and cordwood for fuel.
By the end of the 19th century the peak of the pine lumber era in Michigan had passed and by 1910
hardwood logging replaced it. Raw stumps, tangles of tree wastes, and ghost towns replaced the pine
stands. In order to divest themselves of these cutover lands, the railroads, large landowners, and
governments promoted the settlement possibilities of these former pine lands. However, once settlers
moved onto the land it was clear that potential prosperity was a myth. Credit on reasonable terms was
difficult to obtain, startup capital was very high, and the price of retail goods was inflated due to
dispersed settlement patterns.
Due to tax homestead laws and land abandonment, these lands changed hands continually between the
public and private domains until the 1920s when the State acquired title to almost two million acres of
abandoned land and kept it. This broke the cycle of parcels being acquired, exploited and eventually
reverting to the State. The forestlands were in poor condition, and keeping them in the public domain
contributed towards the national conservation movement. The combination of these factors eventually
produced several State forests, a county forest, and three national forests in the Upper Peninsula that
were dedicated in 1931.
Today the Ottawa National Forest is located in the Western Upper Peninsula, as are the Copper Country
State Forest and Gogebic County Forest. These conservation measures have, over many decades,
created new forests which again are contributing significantly to the economic development and
diversification of the region’s economy. While a source of solid wood and wood fiber products, forests
have also come to be valued for their recreational and environmental attributes as evidenced by the
designation of wilderness areas and wildlife refuges. The forests and their associated recreation
activities provided the foundation for a strong and growing tourism industry.
Currently forestlands in the Western Upper Peninsula constitute a complex set of natural resources
which supply the basic sectors of the regional economy including travel and tourism. These forestlands
include approximately 3,552,952 acres and account for 87.5% of the region’s land base. The forests are
dominated by Northern Hardwoods, a maple-birch forest type which covers 51% of the region. This is
twice the area of Aspen, the second most extensive forest cover type. Other important forest cover
27
Chapter 3 Regional Profile
types ranked by coverage area include Pine (White, Red and Jack), Swamp Conifers (Balsam Fir, Spruce,
Cedar and Tamarack), and Lowland Hardwoods (Ash and Red Maple.)
In resource utilization, hardwoods have historically taken second place to softwoods. The softwoods have
been generally more useful due in part to their long length fibers and usefulness in construction. Highquality hardwoods used in furniture manufacture have been an exception to this overall pattern.
Breakthroughs in utilization and marketing of hardwoods have taken place in recent decades. The
developments through technology have increased the usefulness of a considerable number of hardwood
species. This technology includes the press-drying process for paper production and the saw-dry-rip
process used in making lumber.
Hardwood forest types comprise approximately 95% of these totals with the remainder in softwood forest
types. The surplus is interpreted as being able to produce greater volumes in the short-term by catching
up on accumulated over-mature acreages. In the long term, greater volumes will be available as increased
harvests will decrease mortality rates and increase net growth rates. Overcutting has been occurring in
pine forests as well as in the other softwood types, which makes it imperative that softwood regeneration
regimes be put into place to accommodate future demand.
The region’s forests are a source of industrial raw materials and are important to the regional economy,
particularly in providing employment opportunities in forest products primary and secondary industries.
Over 50% of the region's manufacturing establishments are associated with these industries. The
establishments produce such products as dimension lumber, furniture and furniture components,
hardwood flooring, railroad ties, shingles and paper products.
Forest stewardship is becoming more important in order to provide diversified uses, which include a
variety of habitats for wildlife, recreational opportunities, scenic landscapes, jobs which support a rural
lifestyle, clean air, stable soil, high quality water, wood products for everyday life, and healthy trees for
the future. Sustaining both ecological and economic systems is imperative to ecosystem management,
since the well-being of both systems is co-dependent over time.
Most of the region’s forestland—2,114,040 acres, or nearly two-thirds—is privately owned, and
approximately 57% of privately owned land is enrolled in the Commercial Forest Act (CFA) program. (The
remaining forestland is publicly owned, in large part by the Federal government.) The CFA program,
created by Michigan Public Act 94 of 1925, promotes the establishment of commercial forests on private
lands within the State that are conducive to such use. Along with providing tax benefits to landowners, it
requires landowners to permit public access for hunting, trapping, and fishing.
At the time of enrollment in the program, CFA lands must carry sufficient forest growth of suitable
character and assurance that a stand of merchantable timber will be developed within a reasonable
time. Lands offered and approved under the CFA are not subject to ad valorem general property tax but
rather to an annual specific tax. This tax is a financial incentive for which the owner agrees to develop,
maintain, and actively manage the land as a commercial forest through planting, natural reproduction,
and other silvicultural practices.
The productive potential of the CFA resource base has shaped and continues to shape the land ownership
of the region. CFA land ownership falls into two main categories: 1) private nonindustrial forest and 2)
forest industry, which has traditionally accounted for the majority of large, homogeneous tracts. Private
nonindustrial forestlands are owned by farmers, private individuals, and corporations not a part of the
forest industry such as the Upper Peninsula Power Company and the We Energies. Traditionally industrial
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Chapter 3 Regional Profile
forest ownership has been by timber product companies with vested interests in managing the land for
use in their company mills. More recently there have been changes in ownership patterns away from
timber product companies (vertically integrated timber product companies) to large-tract forestland
investors including timber investment management organizations and real estate investment trusts. This
change in ownership has and is expected to continue to result in fragmentation of lands as higher value
lands are sold. Ultimately sales to small landowners will result in a loss of public access and wildlife habitat.
Fish and Wildlife
Historic Fisheries
Narrative accounts of the exploration of Lake Superior noted the existence of Native American
maintenance fisheries as early as the 17th century with commercial fisheries established in 1835. Soon
after, fisheries were established at many points along the Lake Superior shoreline by the first white
settlers. Between the 1930s and 1950s the fishing industry yielded its greatest production of high value
fish due to several technological advancements. However, this came to an end in the 1950s due to a
collapsing lake trout population, which was attributed to the sea lamprey invasion of the Upper Great
Lakes. The loss of the trout resource was an economic disaster for the fishing industry.
The Great Lakes Fishery Commission worked on controlling the sea lamprey population and restocking
the lake trout in the 1950s, and in the 1960s Michigan Department of Natural Resources (DNR) began
planting hundreds of thousands of Chinook and Coho salmon. Additionally, DNR began heavily regulating
the commercial fishing industry, which in turn contributed to its demise. These restrictions were
challenged by Native Americans who claimed the regulations violated their treaty rights, an argument
which was won in Federal court. In 1979 it was ruled that the State could not regulate or restrict those
tribes whose treaty rights include the right to fish in ceded Michigan waters of lakes Huron, Michigan and
Superior. The ruling caused considerable controversy, and in 1985 the tribes, the State of Michigan, the
US Department of Interior and various fishing organizations negotiated an Entry of Consent order. Today,
the small number of commercial fishermen is in sharp contrast to the 1940s and 50s when there were 50
or more operators fishing in the waters of the Western Upper Peninsula.
Current Wildlife Management
Fish and wildlife in the region are primarily the responsibility of DNR, and they constitute a valuable and
desirable resource. It is the agency’s mission to maintain viable, self-sustaining species of fish and
wildlife for the social and economic well-being of the people of Michigan.
In the past, before the era of conservation, these resources received scant consideration, and the
various native species of fish and wildlife thrived or suffered as their habitats were altered. More
recently, fish and wildlife biologists have focused primarily on effectively managing fish, birds and
mammals of sporting or economic value to certain segments of the public. Examples of some of these
wildlife species include waterfowl (ducks and geese), upland birds (woodcock, grouse, and turkey), big
game (deer and bear), small game (rabbit and squirrel), and fur bearers (muskrat, beaver, fox, coyote,
mink, bobcat, and raccoon). Examples of fish species include trout (brook, rainbow, brown, and lake),
salmon (chinook and coho), whitefish, herring, northern pike, walleye, and perch.
Today the broad topic of fish and wildlife management runs the gamut of concerns, ranging from habitat
protection to species preservation to predator control. These concerns involve activities which include
fish and wildlife research, hunter education, game and fish stocking, and law enforcement. The activities,
however, principally address how to facilitate and regulate fishing, hunting and trapping. The introduction
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Chapter 3 Regional Profile
of non-native plant and animal species also are a major threat to the region with numerous entities and
funds being directed at invasive species control.
Minerals
The western six counties of the Upper Peninsula have a rich history of mineral resource development.
Some of these are still mined today, and some have potential for further development in the future. The
Western Upper Peninsula has a wide variety of geological settings that are promising environments for
such deposits. Some of the mineral commodities and other mineralized resources known to exist, both
metallic and non-metallic, are described below.
Copper
Copper mining is at the core of the region’s modern history and is currently undergoing a resurgence.
Native copper occurs in nature uncombined with other elements such as silver and gold. Most of the
native copper lies along a narrow belt, two to four miles wide and a hundred miles in length, along the
spine of the Keweenaw Peninsula. The vast majority of native copper production—96 percent—and its
associated silver came from a 28-mile stretch between Painesdale in Houghton County and Mohawk in
Keweenaw County.
Modern mining of native copper deposits in the Lake Superior Copper District began in 1845 at the Cliff
Mine near Eagle River in Keweenaw County. The copper mining industry then slowly moved down the
Keweenaw Peninsula as well as northward from Ontonagon as new copper deposits were discovered. The
Lake Superior Copper District’s popularity began to wane in the 20th Century. As the mines went deeper
underground the copper content per ton of copper rock began to decline. It was only through the
development of different technologies that the mining industry was able to maintain its profitability for
as long as it did. The war years of both the First and Second World Wars gave a reprieve to the industry,
but retrenchment followed the peace.
As profitable operation became more difficult, the assets of smaller mining companies were acquired by
the large ones until there were only three firms left: Quincy Mining Company, Calumet & Hecla
Consolidated Copper Mining Company (C&H), and Copper Range Company. The Quincy Mining Company
operated until the Second World War then ceased in 1945. C&H survived into the 1960s, but
insurmountable labor/management problems in 1968 closed the company down after 125 years of
operation. Through its history (1845-1968) the native copper district produced over 11 billion pounds of
refined copper and 10 million ounces of silver.
Copper Range Company had ceased mining native copper in the 1930s but had turned its attention to
developing its copper sulfide (Cu2S) deposits in the Nonesuch Shales of Ontonagon County. In the 1950s
the United States became a net importer of copper. As the Korean War was starting, the Federal
government took measures to boost domestic production of this metal. It assisted Copper Range
Company in getting these deposits into production through the development of an integrated modern
mine, mill, and smelter facility. It was not until fall 1995 that the White Pine Copper Mine became the
last to close. The company was Canadian-owned, and several factors including environmental problems
and low copper prices led to the decision to close the mine, laying off over 1,000 workers in the Region.
The White Pine Mine in Ontonagon County produced some native copper but mostly copper sulfide and
silver as a by-product. The mine operated almost continuously from 1955 to 1995. Interest has been
renewed in the property, especially with its acquisition by Highland Copper announced in 2017.
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Chapter 3 Regional Profile
Highland Copper has also acquired the Copperwood Mine in Gogebic County and has conducted
exploration in surrounding areas and the Keweenaw Peninsula. This has created high hopes for new jobs
and general economic activity amongst much of the population. Potential benefits, however, are
balanced against environmental and economic sustainability concerns. The viability of renewed copper
mining rests upon world copper prices, current technology, and regulations.
In Marquette County, along the eastern border of Baraga County, Lundin Minerals operates the Eagle
Mine, an underground Nickel and Copper mine that employs several hundred people. The company has
conducted exploration of additional deposits in Baraga County.
Iron
While copper mining flourished in the 1850s through 1870s in the northern part of region, the southern
part remained mostly an inaccessible wilderness until iron ore mining began in the late 1870s. Gogebic
and Iron counties contain portions of two of the nation’s six principal iron ranges, the Gogebic and the
Menominee Ranges. In Gogebic County in 1884 the Colby Mine in Bessemer became the first operating
mine on the Gogebic Range. By 1890, 26 mines produced and shipped 2,226,000 tons of ore. However,
the Great Depression closed all but five mines by 1932.
World War II caused production activity to rebound. Iron ore mining activity reached its peak in the late
1940s when there were 42 producing mines in Iron County and 96 producing mines in total on the
Menominee Range. Mining on the Gogebic and Menominee Ranges declined quickly during the 1950s
until Gogebic County lost its last mine in 1966 when the Peterson Mine closed ending 82 years of activity
in the county. By 1967 there were only four producing mines remaining in Iron County, and by 1978 the
last mine in that county closed. In the period between 1884 and 1967, over 323,000,000 tons of iron ore
had been shipped from the Gogebic Iron Range.
Today there are no operating iron mines in the Western U.P. The nearest is the single remaining openpit iron mine, the Tilden, in Marquette County. The iron ore mining industry overall has faced a number
of difficulties in recent decades due to trade policies, changes in world supply, and technical changes in
the mining and steel industries. Even so, just east of the Western Region, iron ore mining has remained
active and today is prosperous in bordering Marquette County. Meanwhile, lack of interest and
relatively low ore concentrations have contributed to stagnation of the industry in Iron and Gogebic
counties since the 1970s. The Western Region’s historic iron and copper deposits are shown in Map 3-V.
Graphite
Some graphite was mined in Baraga County at the turn of the 20th century. In recent years these
graphite slates have been studied both for their graphite content and potential uses. While large
deposits are available for industrial uses, insufficient efforts have been made to entice private
investment.
Manganese
A small manganese deposit in the Keweenaw Peninsula was mined in the 1800s. Further exploration
could reveal economic deposits for future development.
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M
Chapter 3 Regional Profile
Map 3-V: Iron and Copper Ranges of the Upper Peninsula
Diamonds
There have been several explorations undertaken in the last ten years to discover diamond-bearing
Kimberlite deposits in the region. While several micro-diamond-bearing Kimberlites have been found, no
macro-diamonds greater than one millimeter (1/25 of an inch) have been located.
Stone
At the turn of the century, red sandstone quarries furnished building stone. The potential still exists for
developing a building and decorative stone industry in the Western Region. Minnesota, Wisconsin, and
the province of Ontario all produce stone for the world market which is similar to some stone found in
the Western U.P. Limestone is also a viable option: currently a small deposit is being quarried near Pelkie
in Baraga County. Most of this stone was previously shipped to White Pine to be used as flux in the copper
smelting process. Now most of it is used as agricultural lime and road building material.
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Chapter 3 Regional Profile
Clay
This mineral is an abundant substance in part of the Western Upper Peninsula, but little is known of its
economic value as a raw industrial material.
Sand and Gravel
Deposits of these non-metallic minerals are distributed unevenly throughout the region. Some areas
have abundant supplies, and some areas are notably deficient.
Agricultural Lands
Agricultural land is the third largest land cover category following forestlands and wetlands. In 2012,
according to the U.S. Agricultural Census, farmlands occupied approximately 103,324 acres. This is a slight
decrease from 104,555 in 2007. The largest acreage, 28.1% of all farmland in the region, is in Ontonagon
County, followed by Houghton (26.3%), Iron (22.2%), Baraga (17.2%), Gogebic (5.9%), and Keweenaw
(0.3%).
The region includes 528 separate farms, an increase of 8.2% from 488 in 2007. This increase may be due
to subdivision of larger plots of land and a national trend towards hobby farm activities. The average farm
size region-wide is 195.7 acres. The largest average size is in Baraga County (311.1 acres), followed by
Ontonagon County (266.6), Iron (196.1), Houghton (153.6), Gogebic (98.0), and Keweenaw (53.0). Farm
sizes may be impacted by large farms acting as outliers in some counties. Farm sizes may also be
dependent on the needs and characteristics of crops grown in different parts of the region.
The potential of the agricultural lands is based primarily on physical factors such as soil, physiology, and
microclimate that influence the types of agriculture undertaken. Production types include dairying, beef
(cow/calf) production, potatoes, small fruits (strawberries and raspberries), cold climate vegetables,
sheep, and egg production.
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Section 4 Infrastructure, Facilities, and Services
INFRASTRUCTURE AND THE ECONOMY
The quality of a region’s infrastructure is a critical indicator of its economic vitality. Reliable
transportation, clean water, and safe disposal of wastes are basic elements of civilized society and a
productive economy. Basic infrastructure includes highways and roads, airports and airways, public
transit, water supply, wastewater treatment, water resources, and solid waste and hazardous waste
services. Other elements include communications and power production facilities, railroads, schools,
public housing, hospitals, and public buildings. These services are the foundation for a strong economy.
Private and public investment must be balanced to support stable economic growth. Firms have some
flexibility to adjust labor and capital inputs to produce desired outputs. However, this flexibility is
greater in growing than in declining areas. As a result, adequate infrastructure is critical in those areas to
help close the gap with private investment. Deficiencies in public investment may increase the
downward spiral of a depressed area. This is of significance to the Western Region and reinforces the
argument that the region needs a strong infrastructure strategy in its economic development program.
HEALTHCARE INFRASTRUCTURE
The rural nature of Michigan’s Western Upper Peninsula coupled with the changing health care
legislation at the federal and state levels produces real challenges for health care providers. To meet
these challenges, health care networks have been established to provide complete health care services
to consumers in the most cost-effective manner possible. These networks are addressing both current
service issues and how future trends in health care may affect this region.
Acute and On-Demand Care
There are six acute care facilities (hospitals) in the region:






Baraga County Memorial in L’Anse
Aspirus Grand View in Ironwood
Aspirus Keweenaw in Laurium
UP Health System Portage in Hancock
Aspirus Iron River in Iron River
Aspirus Ontonagon in Ontonagon
Each facility listed provides 24-hour emergency care and walk-in clinic services. UP Health System
Portage, a privately owned LifePoint Hospital, is the region's largest: a secondary level facility that is
classified as a Level III ASC trauma center. All others in the region are classified as Critical Access
Hospitals. Baraga County Memorial Hospital is privately owned. The remaining four are owned and
operated by Aspirus, a nonprofit corporation based in Wausau, Wisconsin. Aspirus also operates a
comprehensive clinic and diagnostic facility in Houghton. Walk-in clinics that are not hospital-based are
located in Houghton, Lake Linden, and Watersmeet (Lac Vieux Desert Indian Reservation).
Long-Term Care
This type of care is provided by medical care facilities operated by county governments, by private
nursing home operators, and in two cases by hospitals. Gogebic, Houghton and Iron Counties operate
long-term medical care facilities, as do Portage Health and Aspirus Ontonagon hospitals. There are
several other private licensed nursing home facilities in the region.
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Section 4 Infrastructure, Facilities, and Services
PROTECTION SERVICES
The majority of incorporated cities and villages in the region have small police departments to handle
law enforcement and provide protection to the citizens of these communities. In the townships police
services are handled by the county sheriff department. The local police network is augmented by the
Michigan State Police with additional road patrols and technical services such as detective
investigations, the crime laboratory, canine, fire marshal, and other special units.
Fire Protection
Community fire protection in the region is provided by approximately 63 fire departments. These
firemen are for the most part non-paid volunteers. Fire protection costs can be a serious challenge to
rural communities. To help offset some of these costs, the U.S. Department of Agriculture Rural
Community Fire Protection grant program is available to local fire departments through the state
foresters. The Federal Emergency Management Agency (FEMA) makes grants available to fire
departments for purchase of equipment and various items used to perform duties.
Emergency Services
This type of service is provided by a variety of private, local government, and non-profit organizations.
They operate ambulances and transport patients between medical facilities on request. In some outlying
rural areas where distance and time become critical in emergency situations, groups of volunteers have
received training to act as first responders. These individuals provide initial assistance until the
ambulance and the emergency medical technicians arrive on the scene.
Ambulance Services
The main ambulance services in the region are Beacon Ambulance, which serves western Gogebic
County; Bay Ambulance, which covers northern Baraga County; Mercy Ambulance, which serves
Houghton and Keweenaw counties; Aspirus MedEvac, which serves Iron County; and Sonco Ambulance,
which serves Ontonagon County. Covington Township in Baraga County and Marenisco Township in
Gogebic County have their own ambulance services, and Watersmeet has a first responder service.
TRANSPORTATION INFRASTRUCTURE AND SERVICES
Aviation
General Aviation Airports – These facilities are also referred to as utility airports and provide a basic
level of air service to communities. There are two categories: paved and turf utility airports. Paved utility
airports are medium to large facilities that have paved runways capable of handling approximately 95
percent of general aviation type aircraft. Turf utility airports are smaller facilities and can handle
approximately 75 percent of general aviation aircraft.
There are three public-use paved utility airports in the region. Iron County operates two, the Crystal
Falls Airport and the Stambaugh Airport. Ontonagon County operates the third. All three facilities are
unstaffed. Both Houghton and Baraga Counties operate public-use turf utility airports in the region.
These are the Prickett-Grooms Field at Sidnaw in Duncan Township in Houghton County and the Baraga
Airport four miles west of the village of Baraga.
Air Carrier Airports – An air carrier airport is one used by certified airlines with regularly scheduled flight
service. These facilities are also classified as transport airports and are capable of handling virtually all
types of general aviation aircraft. There are two such facilities in the region. One is the Houghton County
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Section 4 Infrastructure, Facilities, and Services
Memorial Airport near Hancock. The other is the Gogebic County Airport near Ironwood. Another air
carrier airport, Ford Airport in Iron Mountain, is located just past the southeast corner of the region.
These are all highly developed and staffed facilities with paved runways capable of handling jet aircraft.
They are equipped with modern terminals, hangars, navigational aids, and emergency vehicles to handle
crash situations.
The air carrier airports receive commuter air service through the Federal Essential Air Service (EAS)
subsidy program that was established in the mid-1970s to ensure that small communities, served by fullservice airlines prior to deregulation, continued to receive a minimal level of commercial service. EAS
requires at least two arrivals and two departures a day for each qualifying airport. Houghton County is
served by SkyWest Airlines for United Airlines, serving O’Hare International Airport in Chicago. GogebicIron County is served by Air Choice One, an independent airline with service to O'Hare and MinneapolisSt. Paul International Airport. Ford Airport is served by SkyWest Airlines operating as Delta Connection,
with service to Minneapolis-St. Paul and Detroit Metropolitan Wayne County Airport.
The seven public-use airports in the region are significant to the future economic development of the
region. A primary consideration, therefore, is protecting existing general aviation airports from slipping
out of existence and commercial passenger service from being removed from the air carrier airports.
Maintenance of adequate facilities is important to accommodate air freight as well as passengers.
See Map 4-I for the region’s airports and scheduled passenger routes along with water-based
transportation facilities, ferry routes, and major roads, which are discussed below.
Marine
The St. Lawrence River and the Great Lakes form a maritime transportation system extending more than
2,000 miles from the Gulf of St. Lawrence to the western end of Lake Superior. Michigan’s 3,200 miles of
shoreline contains over 100 ports. About 90 of these ports can accommodate commercial activities,
including cargo handling, ferry services, commercial fishing, ship building, marine contracting, and
excursion services. A commercial harbor in the Great Lakes is one with commercial dock handling
facilities and a minimum water depth of 18 feet.
Ports and Harbors – There are 23 Michigan ports which regularly accommodate commercial cargoes.
The region has one deep-draft commercial port located at Ontonagon. Despite a lack of large-scale
commercial operations, the port continues to be dredged periodically by the Army Corps of Engineers.
There are 11 recreational harbors in the region, which are part of Michigan’s recreational harbor
network, located in:




Ontonagon
Grand Traverse
Lac La Belle
Copper Harbor




City of Houghton
City of Hancock
Houghton County
Eagle Harbor



Keweenaw Bay
Black River Harbor
Rock
Harbor
(Isle
Royale)
Inland Waterways – The Keweenaw Waterway, whose primary purpose is to facilitate waterborne
commerce, is located in northern Houghton County. Today the waterway is approximately 22 miles in
length and utilizes a natural river and lake along with a man-made canal to cross the Keweenaw
Peninsula. The waterway’s channel averages 300 feet in width and 25 feet in depth.
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Section 4 Infrastructure, Facilities, and Services
Map 4-I: Transportation Systems in the Western Upper Peninsula
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Section 4 Infrastructure, Facilities, and Services
Aids to Navigation – The Coast Guard Station – Portage on the Keweenaw Waterway in Dollar Bay is
responsible for placement and service of all aids to navigation in its area of Lake Superior within and
near the region. These also include those at Isle Royale and those in the Keweenaw Waterway. Aids to
navigation assist mariners in making landfalls, mark isolated dangers, make it possible for vessels to
follow the natural and improved channels and provides a continuous chain of charted markers for
coastal piloting. In all waters over which the United States has jurisdiction, these aids are designed, built
and maintained by the United States Coast Guard.
Ferry Services – Ferry services are provided on three routes in the region and all connect Isle Royale
National Park, located out in Lake Superior, with the mainland. There are three ferry services which
operate seasonally with sailing frequencies that include one round trip daily to two and three round
trips per week. The National Park Service operates a service between Houghton and Rock Harbor while
the Isle Royale Ferry Service runs between Copper Harbor and Rock Harbor. The Grand Portage Isle
Royale Transportation Service operates between Grand Portage, Minnesota and Windigo.
Great Lakes Shipping Services – Great Lakes waterborne commerce is predominately confined to bulk
commodity movement. Sand, stone, iron ore, and coal account for the major traffic. Cement, petroleum,
and chemicals account for a small percent. The vast majority of Michigan’s waterborne commerce is
shipped to and from U.S. ports and Canadian ports on the Great Lakes or along the St. Lawrence River. A
small percent of the cargo handled at Michigan ports travels to or from an overseas port. Most of this
direct overseas traffic passes through the Port of Detroit. While Michigan business and industry
generate a large volume of overseas trade, most of it is transported overland by truck or rail to coastal
ports for ocean shipping.
Surface
Rail Network – The active freight rail system in Michigan’s Upper Peninsula is made up to 959 miles of
right-of-way. The State of Michigan owns and maintains 117.3 miles of this rail system which is leased to
the Escanaba and Lake Superior Railroad. Rail service in the Western U.P. is provided by two companies:
the Canadian National Railway (CN) and the Escanaba & Lake Superior Railroad (E&LS). CN is the only
Class I carrier in the Upper Peninsula, linking with Wisconsin and the U.S. rail system via Chicago and
with Canada at Sault Ste. Marie.
CN's operations within the Western U.P. include two routes. One is a spur from Baraga south and east to
Ishpeming. Here the route connects south to Escanaba. This short line is primarily used to transport
wood products: biomass to fuel the L'Anse Warden power plant as well as some timber. Research has
been conducted to explore use of this line for export of manufactured goods, but data collection from
potential customers has been difficult and the line is not well-equipped for access by individual
customers. CN's other route runs south and west into Wisconsin from the former White Pine mine,
which may restart operations at some level following recent purchase by a mining venture.
E&LS operates a line from Mass City southeast through Amasa where a sports flooring manufacturer
accesses the line. The line then continues to Channing (just east of the region's eastern Iron County
boundary), a junction where freight can continue east to Escanaba or south to Iron Mountain and
ultimately Green Bay, Wisconsin. In 2010, E&LS requested abandonment of the segment of this line
between Ontonagon and Sidnaw. Thus far only the Ontonagon-Mass City segment has successfully been
abandoned and dismantled. A separate segment connecting Sidnaw east to Nestoria currently is used
only for car storage.
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Section 4 Infrastructure, Facilities, and Services
Rail Traffic Characteristics – All rail traffic in the Western U.P. either originates or terminates within the
region, and the lines in the region are used mainly for shipment of wood products. Financial benefit of
this use for Class I carriers, in particular, is minimal, and as a result, it is a relatively low priority for CN.
The Northwoods Rail Transit Commission (NRTC), a consortium of 9 U.P. and 15 Northern Wisconsin
counties, advocates for rail expansion and preservation in and around these counties. NRTC has
communicated extensively with CN officials regarding alternative operations of its railroad lines in the
NRTC area, including potential lease of tracks to short-line operators, but liability concerns and lack of
initiative have been an obstacle. NRTC also applied (unsuccessfully) for federal TIGER grant funding for
log car purchases.
There may be potential for greater utilization of existing rail routes if a multi-modal truck/rail
"transload" facility is established, but such a facility requires a critical mass of committed customers to
be viable, and advocates have been unable to establish demand thus far. A Michigan Technological
University Study several years ago compared three alternative sites for a potential transload facility,
including Amasa and Nestoria within the Western U.P. Due to insufficient data the study was
inconclusive, but efforts for improved data collection continue as one of NRTC's priorities.
Despite the often divergent priorities of railroads and industry in the Western U.P., freight rail is not
likely to leave the greater U.P. anytime soon. Besides lumber and other wood products, outbound
products currently sent by rail include metal concentrates and pulp, paper, and allied products. Inbound
commodities include bentonite clay (used in refining iron ore); chemicals used by the mining, pulp, and
paper industries; coal; and propane gas. Waste and scrap paper reprocessed by the pulp and paper mills
are also transported by rail. Commodities of these types can often be more profitably shipped by rail
than by truck, standing in contrast to other types of rail exports via Class I carriers that are viable only
when transported several hundred miles to reduce marginal and transaction costs. Rail service also
usually provides more convenient access than shipping by boat.
The active rail service remaining in the Central U.P. in association with its mining and paper production
provides potential and hope for the Western U.P. to have greater access. Whether tracks will be
preserved long enough to be available for the possible reactivation of mining in the Western U.P.
remains to be seen.
Roadway Network – The region’s highways, roads and streets comprise a total of 7,971 road miles. This
network is composed of five separate systems operated by a hierarchy of state and local government
agencies. The roadway network is well integrated and allows for efficient internal movement.
The first of the five systems is the state trunkline system (state and federal highways) which is operated
by the Michigan Department of Transportation (MDOT). This system has 620 miles of roads in the
region, 543 miles of which are all-season routes. This system also has 343 miles in the Priority
Commercial Network (PCN). These PCN segments are considered the most important to Michigan’s
economy. Routes on the PCN are selected according to their relative importance in serving agriculture,
forestry, wholesale trade, manufacturing, and tourism. Within the region there are four PCN routes: US41 and US-141 from Houghton south to Crystal Falls and the Iron County line; M-38 from Baraga to
Ontonagon; M-28 west from the Baraga-Marquette County line to Ironwood; and US-2 from Crystal Falls
west to Ironwood.
The second system is made up of roads under the road commissions of each county. This system
includes a total of 3,375 road miles and is responsible for moving people and goods in and out of and
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Section 4 Infrastructure, Facilities, and Services
between communities in the rural parts of the region. This system has two classifications. There are
1,282 miles of primary roads and 2,093 miles of secondary or local roads. Local roads have a lower
priority than primary roads with regard to funding and maintenance.
The third system is made up of city streets under the jurisdictions of the various municipalities. City
streets also have two classifications: There are 113 miles of major streets and 238 miles of local streets
for a total of 351 miles.
The two remaining road systems comprise approximately 125 miles of seasonal roads located in the
Copper Country State Forest and 3,500 miles of roads or road segments in the Ottawa National Forest.
These systems are the responsibility of the Michigan Department of Natural Resources Forest
Management Division and the U.S. Department of Agriculture Forest Service (USFS) respectively. These
two systems provide access for harvesting and transporting forest products out of the forests as well as
for wildfire suppression and recreation activities. One USFS road, Federal Forest Highway 16 through
Houghton, Ontonagon, and Iron Counties, is more typical of county primary roads and is maintained by
the county road commissions.
Roadside Development –Thousands of travelers take advantage of the travel counseling available at
state welcome centers, which inform visitors of services and activities that can be found in Michigan.
MDOT operates one welcome center in the region. It is located at Ironwood on US-2, a major gateway
into the State. It also maintains 14 roadside parks and scenic turnouts in the region. In addition, there
are many roadside facilities provided and maintained by county, township, municipal units of
government as well as the U.S. Forest Service.
Motor Carriage Service - Existing Michigan law governing intrastate trucking restricts the number of
trucking companies allowed to operate in the Upper Peninsula and between the U.P. and the rest of
Michigan. It also excludes “contract carriers” from putting more than one manufacturer’s freight on the
same truck; requires carriers to prove that their freight rates are high enough to cover all possible costs;
and makes it difficult for small package carriers to increase the size of packages they carry. For the
Upper Peninsula to receive the kinds of trucking services and rates it needs, the state law needs to be reexamined so that services like those available for interstate moves are possible. Economic deregulation
of intrastate trucking would provide greater benefits to the Upper Peninsula than most other areas of
Michigan because the high cost of transportation associated with the distances involved.
Intercity Bus Service – The intercity bus system in the Upper Peninsula is in need of strengthening in
terms of routes and schedules as well as providing more direct service to the population centers. The
Indian Trails bus system provides a vital link to most Upper Peninsula population centers and key
destinations in Wisconsin and Minnesota. Indian Trails services can be accessed on two routes: 1)
Ironwood  Ste. Saint Marie  St. Ignace Route, with stops in Ironwood, Wakefield, Watersmeet, Iron
River, and Crystal Falls; and 2) Hancock  Marquette  Green Bay  Milwaukee  Chicago Route,
with stops in Hancock, Houghton, Baraga and L’Anse. MDOT provides Indian Trails funding in the form of
subsidies to offset the cost of these services.
Public Transit – Transit services need to be developed or improved (and maintained) in most Upper
Peninsula counties. Public transit is essential so trips for medical, employment, and education-related
activities can occur without depending on the automobile. Within the Western Upper Peninsula there
are two countywide transit agencies and two city services. The county services are Gogebic County
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Section 4 Infrastructure, Facilities, and Services
Transit Authority (a special district government dedicated to transit) and Ontonagon County Public
Transit (On-Tran) (part of general county government). The cities of Houghton and Hancock each
operate bus transit services within the borders of both cities. These systems receive financial assistance
through Michigan’s Comprehensive Transportation Fund and Federal Section 5311 funds.
Baragaland Senior Citizens, Baraga-Houghton-Keweenaw Community Action Agency, and U.P.
Community Services (for Dickinson-Iron Community Services agency) provide demand-response and
route deviation transit services to Baraga, Houghton/Keweenaw, and Iron Counties, respectively, with
priority given to seniors and persons with disabilities. These systems receive federal Section 5310 capital
funds. The level of service in these counties, however – particularly Iron and Keweenaw, which also lack
local taxi service – is relatively low.
Efforts have recently been made to improve transit in the region. In Baraga, Houghton, and Keweenaw
Counties, a 2012 federally standardized human services public transportation plan concluded with a
multi-year step-by-step plan to create a regional transit authority for those counties. Though the action
steps have not yet been undertaken, interest in implementation by various interest groups has
periodically ignited. Transit was made a priority statewide in 2014 by the Governor, who began a
regional transit mobility initiative whereby Michigan's prosperity regions were directed to perform
research, needs assessment, and action planning to improve inter-county and other transit services
throughout the state. Statewide priorities included medical, senior citizen, and veteran transportation.
WUPPDR submitted a final memo to MDOT for this initiative in 2017.
Bicycle Pathways – While bicycling is permitted on all highways, roads, and streets in Michigan, except
on limited access freeways, an effort has been made by cyclists to ensure that all roadways in the state
have paved shoulders (four feet or more in width) suitable for bicycling. Bicyclists affirm the need for
direct and convenient access to every destination served by the roadway system. They believe the key
to their mobility is improving the existing system through paved shoulders.
In 2004, 2009, and 2015 WUPPDR assisted MDOT in developing and updating a map highlighting on-road
bicycle facilities throughout the region. In addition this map allows consumers to see shoulder widths on
all US and MI highways. When MDOT is developing projects in the region, generally the agency widens
paved shoulders to accommodate bicyclists. A network of federally designated U.S. Bicycle Routes
formally included U.S. 2 through the Western U.P. beginning in 2015.
Other Trail Systems – In the Western Region there are a variety of trail systems, including groomed
cross-country ski trails and facilities, mountain bike and hiking trail systems, off-road recreational vehicle
(ORV) trails, and over 1,200 miles of groomed snowmobile trails. The region also has several segments
of multipurpose trails using abandoned railroad right-of-ways connected by local roadways. Many of the
trails have segments that cross private property. Permanent easements and/or acquisitions are needed
to protect the Western Region’s network of recreational trails.
Trail systems represent a growing aspect of recreation access in the region. These trails serve a wide
spectrum of users ranging from snowmobiles, motorcycles, and all-terrain vehicles to non-motorized
cyclists, cross-country skiers, joggers, and hikers. Development and maintenance of these off-road trails
varies with ownership. The bulk of the motorized systems are maintained through Michigan Department
of Natural Resources programs including funding appropriations to local organizations. The volunteer
organization MI-TRALE (Michigan Trails and Recreation Alliance of Land and the Environment) maintains
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Section 4 Infrastructure, Facilities, and Services
over 520 miles of ATV, ORV, multi-use, and Equestrian trails in Baraga, Gogebic, Houghton, Iron, and
Keweenaw Counties.
Most non-motorized systems are built and maintained by volunteer organizations such as conservation
groups, but some long-distance trails have state and national designations that afford a certain amount
of higher-level support. One of these is the North Country National Scenic Trail which is a component of
the National Trails System supported by the National Park Service. This 3,200 mile trail extends from
Crown Point, New York to Lake Sakakawea in North Dakota. A 120 mile segment runs through the
region. Development and maintenance assistance in this region falls to USFS and three volunteer
chapters of the national North Country Trail Association.
The Iron Belle Trail from Belle Isle in Detroit to Ironwood is state-designated under jurisdiction of DNR.
This trail was conceived in 2014 as the flagship of the Governor's initiative to make Michigan the "Trail
State." In the U.P. the trail consists of two routes: a northern hiking route, which is mainly concurrent
with the North Country Trail, and a southern bicycling route, which in the region is mainly a
motorized/non-motorized multi-use route concurrent with U.S. Bicycle Route and Highway 2.
WATER RESOURCES
Dams – There are numerous water impoundment structures located in the region. One type creates
impoundments to stabilize the flow of water for the production of hydroelectric power. Five
hydroelectric systems exist in the region. These are owned and operated by Upper Peninsula Power
Company (UPPCO), Wisconsin Electric (WE), Xcel Energy, and the City of Crystal Falls. The other of
structure maintains water levels to promote recreational activities and to enhance fish and wildlife
habitat. These structures are scattered throughout the region and are as varied as simple plank dams to
much more complicated devices including pumps and fish ladders.
Water Supply – Approximately 94 percent of the region’s potable water supply is drawn from
groundwater sources. The remainder is drawn from surface water sources—primarily Lake Superior.
Some general reasons for not using surface water include costly construction along with operation and
maintenance of treatment facilities. The distribution of the water supply is composed of many systems
found primarily in cities, villages, and other population centers within townships. However, some
systems found in rural areas. Examples include Covington in Baraga County, Amasa and Bates Township
in Iron County, Copper Harbor in Keweenaw County, and Ewen-Trout Creek in Ontonagon County. The
majority of the water systems are publicly owned and operated. An exception is Michigan-American
Water Company which serves an area from the Houghton County Airport north into Keweenaw County.
A great deal of rehabilitation work has been undertaken on water systems across the region.
Nevertheless, the systems can still be described as suffering from aging (often lead-based) and
undersized lines, inadequate treatment facilities, a lack of secondary sources for backup, and political
situations which inhibit development of intercommunity water transmission lines.
ENERGY RESOURCES
With the exception of energy generated from hydroelectric facilities on some of the river systems, the
region is energy-poor, lacking fossil fuels such as natural gas, oil, and coal. Isolation from fuels, low
population densities, disbursement of the population, and loss of key energy loads have resulted in
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Section 4 Infrastructure, Facilities, and Services
overall high energy costs. This particularly true for residential customers in the Keweenaw Peninsula
region.
Electrical Energy – Several utilities provide electrical energy to the region (Map 4-II shows services areas
and major transmission lines). All transmission of electrical energy, using the large electric lines that
transport electricity over long distances, is controlled by American Transition Company (ATC) with
oversight from the Midcontinent Independent Service Operator (MISO), which ensures adequate supply
throughout the Midwest. The investor-owned utilities that distribute electricity to residential, business,
and industrial customers include Upper Peninsula Power Company (UPPCO), Xcel Energy Corporation
(formerly Northern States Power Company) and the recently formed Upper Michigan Energy Resources
Corporation (UMERC) which is assuming the Upper Peninsula assets and service obligations of Wisconsin
Electric Power Company (We Energies) and Wisconsin Public Service Corporation.
Within the region, Xcel services mainly the southwest; UPPCO the north; and UMERC the southeast. Two
nonprofit cooperatives also exist: Bayfield Electric Cooperative in a small part of the southwest and
Ontonagon County Rural Electrification Association (OCREA) in the north. UPPCO and OCREA charge
among the highest residential electrical rates in the state and nation, due in part to lack of existing local
generation and long distribution distances to a disbursed customer base. The Villages of Baraga and
L'Anse and Cities of Crystal Falls and Wakefield purchase power from the nonprofit WPPI Energy, a
nonprofit organization of 51 member municipal utilities, and provide their own local distribution as
municipal utilities.
With electrical rates continually rising over the past several years, and amid climate change concerns
and a tightening regulatory environment, renewable energy has become a priority for the region.
Publicly regulated utilities in Michigan are subject to a renewable energy standard that will require them
by law to achieve a retail supply portfolio that includes at least 15 percent renewable energy by 2022.
Customers who choose to develop on-site generation projects (most commonly solar in the Western
U.P.) are able to sell excess energy generated back to the utility to contribute to the power grid through
a system called "net metering." Initially utilities reimbursed customers retail electric rates (the cost
customers pay utilities for energy), but as participation increased many utilities chose to use wholesale
rates instead. This change was justified based on the utilities’ need to cover the costs of customers’
continuing use of the distribution grid. This change to wholesale rates reduced the desirability of
residential solar installations and delaying return on investment for customers who already had solar
systems installed.
State law allows utilities to cap net metering participation at 1 percent of their regulated peak demand.
UPPCO reached its small-scale/residential (under 20 kW) net metering participation cap in 2016, and no
new small scale net metering projects are being allowed in UPPCO’s service region at this time. As of
early 2017, the other regulated electric utilities in the Western Upper Peninsula have not met their net
metering caps. Neither regional cooperatives nor municipal (unregulated) utilities purchasing from WPPI
have such a limit.
Energy efficiency measures are another means to mitigate the impacts of high energy costs. Concerted
efforts to encourage and implement energy efficiencies are underway in the region, partially through
publicly funded programs facilitated by WUPPDR as well as nonprofit and volunteer organizations such
as New Power Tour and the Houghton Energy Efficiency Team. State-mandated energy optimization or
energy waste reduction programs are implemented by utilities in the region. The utility programs offer
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Section 4 Infrastructure, Facilities, and Services
Map 4-II: Energy Resources
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Section 4 Infrastructure, Facilities, and Services
rebates and technical assistance to residential, commercial, and industrial programs but have been
underutilized.
Lack of electricity generation in the U.P. has been cited as a threat to reliability. In summer 2016,
Wisconsin Electric Power Company announced plans to build a 55 MW power plant in Baraga County. A
wind generation project is also listed in MISO’s que for new generation. The project is proposed to be
sited in Baraga County and is estimated to have a generation capacity of 130 MW. MISO is currently
undergoing a systems impact study for the project, with service start expected in late 2020.
Natural Gas – Typically the most desirable fossil fuel for heating and other fixed-site uses, natural gas is
limited mainly to large communities and major population corridors. SEMCO ENERGY services Baraga,
Houghton, Iron, Keweenaw, and Ontonagon Counties and the eastern half of Gogebic County. Xcel
supplies the western half of Gogebic County and the communities of Bergland and Ewen in Ontonagon
County. DTE provide natural gas to portions of Iron County. Utilization of natural gas is at or near
capacity in parts of the region including the Keweenaw Peninsula. See Map 4-II above for pipelines.
Other Energy Resources
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Consumers without access to natural gas rely on fuel oil and liquid petroleum (LP)/propane gas
for heating and other uses. These are sold by distributors throughout the region such as Krans
Oil (fuel oil) and Ferrellgas (propane).
Coal is also an important energy source but used primarily for heavy industrial purposes and
sees little if any use in the region.
Wood or woody biomass is an alternative to fossil fuels. Some commercial establishments and
institutions have successfully converted to wood and continue utilizing it as an energy source.
The L'Anse Warden Power Plant in L'Anse uses biomass to produce electricity for sale on the
wholesale market. The forest products industry has used wood for years as a fuel to lower
energy costs and reduce its solid waste disposal problems.
Geothermal heating and cooling is another potential energy source in the region. Studies
conducted by Michigan Technological University’s Keweenaw Research Center indicates that
geothermal projects that take advantage of trapped mineshaft water resources can be used to
heat and cool commercial and potentially residential spaces. The economic feasibilities of these
projects improve in high-cost electric regions.
EDUCATIONAL INSTITUTIONS
Local School Districts – The region has a diverse array of educational providers at the K-12 and
postsecondary levels. K-12 schools have faced declining enrollment for decades, and many
consolidations of school districts have occurred over this period, though districts in the Keweenaw
Peninsula remain highly fragmented. Rural school districts in the region suffer from reliance solely on
base state funding, loss of students to neighboring districts through Michigan's Schools of Choice
program, and a resulting inability to offer a large number and variety of courses. However, some schools
in the region, including Calumet-Laurium Keweenaw, have attained state-level recognition, and local
districts throughout the region are important representations of individual community identities.
Intermediate School Districts – The Copper Country, Gogebic-Ontonagon, and Dickinson-Iron
Intermediate School Districts (ISDs) (CCISD, GOISD, and DIISD, respectively) fill a much needed role in the
form of training to faculty and staff, internet connectivity between districts, and additional educational
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Section 4 Infrastructure, Facilities, and Services
opportunities for students and adults. The three ISDs in the region offer Career and Technical Education
(CTE) courses for high school students that offer either credit toward a college degree or the
opportunity to graduate high school with a career-oriented degree or other credential. Available
programs are shown in Table 4-I. The ISDs also offer adult enrichment classes exclusive of high school.
Table 4-I: CTE Programs Offered by Western U.P. ISDs, 2016
CCISD DIISD GOISD
Accounting
Agriculture
Auto Body & Collision Repair
Automotive Technology
Building/Construction Trades
Computer-Aided Drafting & Design (CADD)
Certified Nurse Assistant (CNA)
Computer Programming/Robotics
Computer Programming/Web Design
Computer Systems
Health Careers/Occupations
Medical Terminology
Marketing & Entrepreneurship
Pre-Engineering & Robotics
Welding
SOURCE: ISD Contacts, August 2016
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Post-Secondary Institutions – The region has four post-secondary educational institutions. These
include Gogebic Community College (GCC), Keweenaw Bay Ojibwa Community College (KBOCC),
Michigan Technological University (Michigan Tech), and Finlandia University. Each has modern facilities
and offers academic programs which prepare students for the rapidly changing environment of work in
today’s global economy. However, there is a long-term trend of "brain drain," with high school
graduates leaving the area for other higher educational opportunities and not returning to the area.
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GCC was formed in 1932 as Ironwood Junior College. In 1965 it became the Gogebic Community
College District. The campus site was established in the city of Ironwood. The school is a two
year institution with between 1,100 and 1,200 students. The school’s academic programs fall
into two major categories. One category is oriented toward students planning to transfer to
four-year universities or colleges. The other is oriented to students planning to enter the
workforce following graduation, primarily into skilled trades using credentials from CTE
programs. GCC offers a variety of certificates and associate degrees in such diverse areas as
welding, nursing, business, and ski area management. Some CTE programs, such as welding, are
offered to Gogebic and Ontonagon County high school students, who have the option of
transitioning from high school graduation directly into credentialed CTE programs.
KBOCC was originally formed in 1975 as a non-profit educational corporation. The college closed
its doors from about 1980 to 1998 and reopened that year after the Tribal Council approved the
college’s revitalization. In 2014 KBOCC opened a new campus in the overhauled former Baraga
County Memorial Hospital building in Downtown L'Anse, though the main campus is considered
to remain in Baraga. KBOCC offers associate degrees in liberal studies, environmental science,
business administration, and early childhood education. The college has also considered adding
career and technical education programs such as welding.
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Section 4 Infrastructure, Facilities, and Services
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Finlandia University was founded in 1896 as Suomi College. Finlandia is a private university
located in the City of Hancock. It has several hundred students and approximately 55 faculty
members and offers approximately 30 certificate, associate, and baccalaureate programs of
study in four colleges: Arts & Sciences, Art & Design, Health Sciences, and Business. Many of the
programs have both liberal arts and career preparation components.
Michigan Tech was founded in 1885 as the Michigan Mining School; it became Michigan
Technological University in 1964. With a faculty of approximately 400, Tech offers 125 academic
program options to a student body of over 7,000. The school awards associate, baccalaureate,
master, and doctor of philosophy degrees. Michigan Tech is nationally known for its
engineering, technology, and science programs. In U.S. News & World Report's 2017 Best
Colleges, Tech was ranked #118 (tie) in National Universities and #67 (tie) in undergraduate
Engineering Programs where a doctorate is offered. Apart from its status as an educator,
Michigan Tech is also the largest employer in the Western U.P.
TELECOMMUNICATIONS INFRASTRUCTURE
Regional Resources – Today’s global economy depends on how well organizations move and manage
information. Application of information technologies in businesses, schools, governmental, and public
agencies is critical to future economic and community development in the region. These technologies
are essential to rural organizations, because they can help to overcome two barriers to rural growth:
geographic isolation and economic specialization. In order to take advantage of these opportunities, a
public telecommunications infrastructure that is capable of supporting advanced equipment and
services at affordable prices must be in place.
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The Regional Educational Media Center (REMC) collocated with CCISD serves the Western U.P.,
and offers a variety of services including technical support and videoconferencing for members,
non-members, and commercial users for a fee.
The Upper Peninsula TeleHealth Network serves health care providers by maximizing the
practical use of technologies to provide health care to residents of the Upper Peninsula and the
surrounding region.
Merit Network, Inc. is a nonprofit, member owned organization formed in 1966 to design and
implement a computer network between public universities in Michigan. Merit operates a
network of fiber-optic broadband cables to provide rapid data transfer for these institutions.
Videoconferencing – One of the greatest opportunities offered by telecommunications is the ability to
mitigate travel costs – both financial and time – through remote meetings via videoconferencing.
Videoconferencing can be implemented through personal workstation applications like Zoom and
GoToMeeting or through dedicated infrastructure at group meeting sites.
In 2010 the UPLink high-definition videoconferencing network was conceived to connect population
centers across the Upper Peninsula and to Lansing and Wisconsin. The network has since come to
fruition based primarily in Michigan Works! service centers in Hancock, Marquette, Escanaba, and Sault
Ste. Marie; and in WUPPDR's office in Houghton. A "bridge" exists at the UPWARD Talent Council/
Michigan Works! Escanaba service center with the capability to connect the primary UPLink sites with
each other as well as a great variety of other outlets with videoconference units, including libraries,
hospitals, county courtrooms, intermediate school districts, universities, and other Michigan Works!
locations. Every county in the U.P. hosts at least one videoconference site. Besides Hancock and
47
Section 4 Infrastructure, Facilities, and Services
Houghton, which collectively have at least four participating sites, communities regularly utilizing the
system in the Western U.P. include Bergland, Iron River, and Ironwood.
Broadband – UPLink and other internet-based activities continue to be hindered by mediocre landline
broadband internet availability in many parts of the region. Commercial and residential users in most
large communities are served by cable and/or high-speed Digital Service Line (DSL) internet, but outlying
areas usually rely on lower-speed fixed wireless or even dialup service, or are limited to satellite service
that is comparatively costly and limited in bandwidth. Some outlying areas have no access at all.
Educational institutions are directly served by the fiber-optic Merit network. Currently fiber-optic "gig"
internet service exists in Crystal Falls.
Technology action planning in coordination with the Connect Michigan organization has occurred in
Gogebic, Houghton, Keweenaw, and currently Iron Counties to improve availability, access, and
utilization of broadband services. Since broadband service is private sector-driven, an important
prerequisite of service expansion is providing comprehensive market information to broadband
providers to demonstrate consumer demand and potential markets.
Cellular service is another ongoing telecommunications obstacle. As with landline broadband, cellular
service is adequate in the region's large communities, most of which have access to 4G LTE data speeds
as well as reliable voice and SMS/MMS text service. In outlying areas, however, even along major
transportation routes, cellular service is spotty and hindered by lower data speeds. An encouraging
development was passage of long-anticipated state legislation in 2015 to allow phased colocation of
private provider transmitters on Michigan's 800 MHz Public Safety Communications System towers, but
implementation thus far has been low.
Landline telephone service has been provided by AT&T in most of the region, but traditional service is
set to be eliminated as a result of a 2014 state law which is intended to be fully implemented in 2017.
Telephone service will continue to be available through voice over internet protocol (VOIP) where
landline broadband exists, but outlying customers may be left without telephone service of any kind.
INDUSTRIAL PARKS
These are tracts of land designated for specific industrial uses such as light manufacturing, research and
development, or business services. Industrial parks are platted properties that have roads, water, sewer,
and energy services in place or planned to be implemented when required. Site and building restrictions
are established for maintaining the integrity of the facility and for the individual protection of the
tenants. Industrial parks located in the region are listed in Table 4-II and Map 4-III below.
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Section 4 Infrastructure, Facilities, and Services
Table 4-II: Industrial Parks
Map
Key
Industrial Park Name
1 Russell Carrier Industrial Park
Location
(City/Township)
Total
Area
(acres)
Contact
Baraga
40
Baraga
400+
3 Lambert Road Industrial Park
L'Anse
20
Village of L'Anse
4 Dynamite Hill Industrial Park
City of Wakefield Industrial
5 Park
L'Anse
20
Village of L'Anse
City of Wakefield
27
City of Wakefield
2
Ojibwa Industrial Park
160
6 City of Ironwood Industrial Park City of Ironwood
Wakefield Township Industrial
Wakefield Township 60
7 Park
8
9
10
11
12
13
Houghton County Air Park
Calumet Township
Renaissance Zone
Houghton Development Park
City of Crystal Falls Industrial
Park
Crystal Falls Township
Industrial Park
City of Iron River Industrial
Park
Village of Ontonagon (M-64)
Ontonagon Industrial Site
16 (Renaissance Zone, M-38)
17 White Pine Industrial Park
McMillan Township
18 Renaissance Zone
City of Bessemer Industrial
19 Park
City of Ironwood
Wakefield Township
Hancock
202
Houghton County
Airport Manager
Calumet Township
160
Calumet Township
Houghton
26
City of Houghton
City of Crystal Falls
91
City of Crystal Falls
Crystal Falls
Township
100
Crystal Falls Township
City of Iron River
77
Iron River City Manager
14 City of Caspian Industrial Park City of Caspian
15
Village of Baraga
Keweenaw Bay
Indian Community
Unknown Caspian City Manager
Approx.
41.5
Approx.
Village of Ontonagon
50.9
White Pine
28
Ontonagon Village
Manager
Ontonagon Village
Manager
Carp Lake Township
McMillan Township
200
McMillan EDC Chair
City of Bessemer
100
City Manager
Village of Ontonagon
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Section 4 Infrastructure, Facilities, and Services
Map 4-III: Industrial Parks in the Western Upper Peninsula
50
Section 5 The Economy
ECONOMIC SETTING: A CHANING RURAL LANDSCAPE
The Western U.P.'s economy is not known for being naturally adaptable. Following the heyday of mining
and forestry, the region struggled to redefine itself and maintain strong communities. Amid the ensuing
economic lull, many disused and often contaminated industrial sites remained. Today the region
contends with both these physical obstacles and regional and global economic environments that are
not friendly to isolated, infrastructure-lean areas.
Limited infrastructure, including electronic communications and longer-standing impediments such as
the transportation network, is an ongoing problem. The region is also characterized by unfavorable
measures of socioeconomic indicators such as unemployment rates, wages, poverty levels, educational
attainment, and age profile. High energy costs, particularly electricity, compound socioeconomic
problems. And the prospect of climate change threatens natural resources and associated recreation
that have been built upon the region's distinct four seasons.
Today, most areas in the region are driven by service industries, largely through tourism, as well as
institutions such as hospitals, institutions of higher learning, and government, which, despite their own
external pressures, are relatively stable. There are some strong concentrations of other diverse
industries: specialized fabrication in Baraga County and high-technology entrepreneurialism facilitated
by Michigan Technological University and MTEC SmartZone in Houghton and Hancock, for example.
These serve as examples for other parts of the region to build more fluid long-term economies.
Provided that broadband internet access is available, the new technology-based economy also has
potential to support "placeless" businesses such as internet-based consulting and retail. Such
enterprises reduce impediments to entrepreneurs and workers who desire to live in the region
(ironically because they are looking for special "places" of their own) but traditionally would have had to
live where economic activity was stronger. Internet-based services and retail have also offered more
diverse options for residents of the region, who are not forced to rely on what the local market can
support. The downside of consumer spending leakage from the region cannot be ignored, but internetbased business has been a net positive, reducing competitive disadvantage.
And resource extraction should not be discounted as an economic force. Large-scale timber production
continues to occur, and there is ongoing consideration of opportunities for value-added uses. There also
is real potential for a renewed period of mining, primarily for copper. Exploration for ore deposits is
underway, and transactions of land and former mining facilities have recently occurred, with operations
lying in wait for more favorable markets. The prospect of a renewed mining industry raises the problem
of boom and bust, where the economy struggles with peaks and valleys of employment. Anytime a
boom is on the horizon and underway, special efforts must be made to mitigate this cycle by building a
resilient economic base that can sustain some of the growth and job base after mining ceases.
Economic development initiatives undertaken in recent years and planned for the foreseeable future
intend to address many of these issues directly or indirectly as the region refuses to succumb to factors
that sometimes seem out of its control.
INTERDEPENDENT ECONOMIES
The Western U.P. is somewhat stagnant in comparison to the national economy and that of the relatively
prosperous Ninth Federal Reserve District of which it is a part (the "Ninth District" also includes Montana,
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Section 5 The Economy
North and South Dakota, Minnesota, and Northwestern Wisconsin). The Western U.P. shares much in
common with northern parts of Wisconsin and Minnesota but stands in stark contrast to other parts of
the Ninth District. For example, the Twin Cities of Minneapolis-St. Paul, Minnesota, where the Ninth
District is based, are home to multiple Fortune 500 companies, many of them focused on technologybased or professional industries. Large parts of the Ninth District also heavily depend on agriculture.
These industries have only a fledgling presence in the Western Region.
The Western Region also has little in common with southern parts of the Great Lakes Region, including
the metropolitan areas of Wisconsin, Illinois, Indiana, Ohio, and the Lower Peninsula of Michigan. This
area, part of the "Rust Belt" of the United States, has a long-declining but still significant presence of
manufacturing industry. The Western Region has long been vital to these areas, however, in supplying
raw materials to urban industry. The region also serves as a natural paradise for vacationers from urban
areas, and this presents an opportunity for attracting new residents and a growing number of visitors.
The Western Region is just one of three planning regions in the Upper Peninsula. With the entire peninsula
having only approximately three percent of Michigan’s population, it is vital for the three regions to work
together to accomplish peninsula-wide goals. The peninsula’s sparse population, long distances between
economic centers, and underdeveloped transportation network necessitates collaboration in order to
break down barriers to efficiency. U.P. Link, a high definition videoconferencing network with common
infrastructure and central scheduling throughout the U.P., has matured significantly in the last several
years, making meetings at distant locations much more accessible to the U.P. The system has been used
to connect to meetings across the U.P., in northern Wisconsin, and in Lansing, the state capital, which is
an approximately ten-hour drive from the most distant parts of the Western Region.
FINANCIAL STATISTICS: INCOME
Per capita income is a good proxy for the wealth and spending patterns in an area. Caution must be used
when analyzing per capita income measurements because they serve as a one-year gauge, and unusual
circumstances, such as a bumper crop or natural disaster, could skew the measure. Table 5-I shows 20112015 per capita income in the region and its counties, the State of Michigan, and the United States.
Table 5-I: Per Capita Personal Income
Area
Baraga Co.
Gogebic Co.
Houghton Co.
Iron Co.
Keweenaw Co.
Ontonagon Co.
Western U.P.
Michigan
United States *
2011
$27,001
$29,596
$29,130
$32,756
$34,485
$29,167
$29,658
$37,398
$42,453
2012
2013
2014
2015
$28,775
$30,897
$29,861
$33,748
$35,661
$30,138
$30,676
$38,700
$44,267
$29,627
$31,396
$30,425
$34,243
$35,880
$31,120
$31,269
$39,208
$44,462
$29,667
$33,553
$31,654
$35,834
$37,009
$32,389
$32,602
$40,940
$46,414
$29,928
$35,495
$32,968
$38,557
$38,827
$34,124
$34,169
$42,812
$48,112
2011-2015
Change
10.8%
19.9%
13.2%
17.7%
12.6%
17.0%
15.2%
14.5%
13.3%
SOURCE: Per capita personal income, U.S. Bureau of Economic Analysis (BEA) via StatsAmerica
The region's counties had an average per capita personal income of $34,169 in 2015. By far the lowest per
capita incomes were in Baraga County, at $29,928, where there is a large institutional population. The
highest per capita incomes were nearly a tie between Keweenaw County, at $38,827, and Iron County, at
52
Section 5 The Economy
$38,557. The region's 2015 per capita income is $8,643 (20.2%) below the State’s and $13,943 (29.0%)
below the United States'. However, the region’s per capita income from 2011 to 2015 grew at a rate faster
than the State's and United States': 15.2% versus 14.5% and 13.3%, respectively.
Household income is an indicator less skewed by institutional populations. This paints a different picture
of the counties in the region: According to the Bureau of Economic Analysis, Baraga County has the highest
2015 median household income, at $42,389, followed by Houghton County at $41,775, Keweenaw County
at $40,862, Gogebic County at $38,416, Ontonagon County at $37,508, and Iron County at $36,570.
FINANCIAL STATISTICS: LABOR AND INDUSTRY
The labor force or workforce, the foundation of all other employment-related statistics and trends, is
somewhat volatile, fluctuating with broader economic trends, age ranges, migration, and many other
factors and forces both internal and external. As Table 5-II indicates, there are vast differences even within
the Western U.P. Although there was a contraction of the labor force in the region from 2011 to 2015,
there were increases and decreases from year to year within the individual counties, and magnitudes
varied drastically.
Table 5-II: Persons in Civilian Labor Force, Annual
Area
2011
2012
2013
2014
2015
Baraga Co.
Gogebic Co.
Houghton Co.
Iron Co.
Keweenaw Co.
Ontonagon Co.
Western U.P.
U.P.
3,661
6,947
17,322
5,170
1,017
2,777
36,894
145,514
3,543
6,804
16,950
5,092
987
2,586
35,962
143,749
3,571
6,763
16,964
5,110
994
2,466
35,868
144,082
3,481
6,727
17,021
5,228
988
2,392
35,837
143,659
3,306
6,625
16,743
5,265
966
2,317
35,222
141,832
2011-2015
% Change
-9.7%
-4.6%
-3.3%
1.8%
-5.0%
-16.6%
-4.5%
-2.5%
SOURCE: Michigan Department of Technology, Management and Budget (DTMB) Local Area
Unemployment Statistics (LAUS)
Iron County saw a small increase in labor force during the period, but all others in the region decreased,
from a drop of 3.3% in Houghton County to a drop of 16.6% in Ontonagon County. The overall decrease
in the region from 2011 to 2015 was 4.5%, compared with 2.5% across the Upper Peninsula. Over the
same period the labor force of the State increased by 1.5% and United States by 2.3%.
A longer-term view of the unemployment rate, shown in Table 5-III and Figure 5-I, is critical to
understanding the impact of the Great Recession on the region. As with labor force size, disparities among
counties within the region are extreme. At times in 2009, Baraga County's unemployment rate was at or
near the highest among counties in the nation. U.P. unemployment rates in the table were invariably
higher than the national rate and almost always higher than the State rate, with notable exceptions to the
latter in 2009. The Michigan annual unemployment rate was higher than the U.S. rate in 2006-2014, but
the gap narrowed to essentially a tie by 2015. The 2016 annual unemployment rate (not yet released for
counties at the time of this document's completion) is 4.9 percent for both Michigan and the United
States. Regardless of their varying degrees of severity, the Western U.P., State of Michigan, and United
States unemployment rates all follow the same general trends fairly closely.
53
Section 5 The Economy
Table 5-III: Annual Unemployment Rate (%)
Area
2006 2007 2008 2009
Baraga Co.
11.5 12.8 13.4 24.2
Gogebic Co.
7.7
7.8
8.4 12.9
Houghton Co.
7.1
7.2
7.7 10.8
Iron Co.
7.5
7.4
8.2 12.1
Keweenaw Co. 10.3 11.0 10.7 14.2
Ontonagon Co.
8.2
8.4
9.1 15.8
U.P.
7.5
7.6
8.1 12.3
Michigan
7.0
7.0
8.0 13.7
United States
4.6
4.6
5.8
9.3
2010 2011 2012 2013 2014 2015
19.4 16.4 14.1 14.5 11.2
8.8
13.1 11.9 11.1 10.9
8.9
7.0
10.8
9.6
9.0
8.9
7.7
6.0
12.9 10.4
9.6 10.2
8.7
6.7
15.1 13.8 12.8 13.6 11.0
8.7
16.7 16.2 13.4 13.9 11.4
9.0
11.9 10.5
9.6
9.7
8.2
6.5
12.6 10.4
9.1
8.8
7.3
5.4
9.6
8.9
8.1
7.4
6.2
5.3
Source: DTMB LAUS
Unemployment rates can decrease either as a result of unemployed people finding work or as a result of
a drop in the number of unemployed people who are actively looking for work. Comparing Tables 5-II and
5-III reveals that the labor force size was decreasing in Western U.P. counties (except Iron) at the same
time unemployment rates were dropping, suggesting that most available jobs were being preserved and
filled but also that many people leaving the labor force had previously been looking for work.
Figure 5-I: Annual Unemployment Rate
25%
20%
15%
10%
5%
0%
2006
Source:
DTMB LAUS
2007
2008
2009
2010
2011
2012
2013
Baraga Co.
Gogebic Co.
Houghton Co.
Iron Co.
Keweenaw Co.
Ontonagon Co.
U.P.
Michigan
United States
2014
2015
Houghton County consistently leads the region in employment, with the lowest annual unemployment
rate in the region and closely following the overall rate for the U.P. from 2006 to 2015. Baraga County
had by far the highest unemployment in the region until 2009, when it also had the highest county
unemployment rate in Michigan. One of Baraga County’s largest industries is manufacturing, which was
significantly impacted during the recession. Additionally, Terex Handlers, a major customer for many
local fabricators, relocated its operations to a different state in late 2009; and Pettibone, another
manufacturer, downsized its operations. These actions contributed to and compounded the high
unemployment rate.
54
Section 5 The Economy
Industry Structure
In a regional economy that makes up such a small part of the State economy, all economic activities are
important. In Table 5-IV, nonfarm earnings (data sources classify a comparatively very small amount of
farm earnings entirely separately from other industry) are separated into eleven major categories of
industry. Total nonfarm earnings in the region were approximately $1.4 billion in 2015.
Table 5-IV: Earnings by Industry ($ thousands), 2015 Annual
Industry
Baraga
Gogebic Houghton
Iron
Forestry, Fishing,
& Related
Construction
Manufacturing
Information
Wholesale Trade
Retail Trade
Finance &
Insurance
Real Estate,
Rental, Leasing
Educational
Services
Health Care &
Social Assistance
Accommodation
& Food Services
“Other Services”
Government
TOTAL *
(D)
5,218
28,856
3,424
1,845
6,323
7,198
(D)
4,553
Keweenaw
Ontonagon
(D)
1,345
(D)
(D)
(L)
659
557
4,671
(D)
(D)
(D)
9,394
12,880
42,028
2,376
(D)
19,617
46,656
35,617
3,262
10,642
49,615
16,712
17,816
1,015
2,210
22,533
(D)
5,630
17,899
5,908
(D)
2,554
(D)
3,781
6,042
1,171
(D)
608
(D)
1,840
11,613
82
(D)
40,753
113,362
26,190
(D)
9,992
(D)
14,294
21,574
3,995
(D)
(D)
4,158
85,930
160,303
15,990
90,285
280,876
25,598
284,959
689,182
20,184
52,801
200,229
(D)
6,147
18,982
(D)
20,973
65,902
51
(L)
SOURCE: BEA, Table CA5N (Personal Income and Earnings by Industry)
(D): Not shown to avoid disclosure of confidential information; (L): less than $50,000 but is included in total
*
Greater than sum of above rows as it includes other categories and estimates of (D) entries
Public Sector
The proportion of earnings supplied by the region’s public sector, the "Government" industry, is perhaps
the most notable characteristic of the economy. (For government earnings and employment, 2014 data
is used since that is the most recent year of the Quarterly Census of Wages and Employment that
provides employment numbers.) Table 5-V shows earnings and employment for Government versus all
industries in each county.
Table 5-V: Government Versus Total Earnings and Employment, 2014
Earnings
Employment (Annual)
County
Total
Gov't
% Gov't
Total
Gov't
% Gov't
Baraga
$164,559
$84,339
51.3%
3,521
1,621
46.0%
Gogebic
$273,643
$89,656
32.8%
5,510
1,716
31.1%
Houghton
$676,366 $278,095
41.1%
11,610
3,036
26.1%
55
Section 5 The Economy
Table 5-V: Government Versus Total Earnings and Employment, 2014
Earnings
Employment (Annual)
County
Total
Gov't
% Gov't
Total
Gov't
% Gov't
Iron
$184,485
$50,962
27.6%
3,592
893
24.9%
Keweenaw
$17,839
$5,855
32.8%
412
119
28.9%
Ontonagon
$64,794
$20,199
31.2%
1,365
358
26.2%
TOTAL *
$1,381,686 $529,106
38.3%
26,010
7,743
29.8%
Earnings Source: BEA, Table CA5N (Personal Income and Earnings by Industry)
Employment Source: Quarterly Census of Employment and Wages (QCEW) via DTMB
The table shows that government accounts for 38.3% of all earnings and 29.8% of all employment within
the region. Within the counties, Baraga has the highest proportion of government versus total earnings
and employment, and Iron the lowest. Baraga's high proportions are likely due to the presence of both
the Keweenaw Bay Indian Community's L'Anse Indian Reservation and a state correctional facility.
The proportion of government versus all industries is greater in earnings than in employment; this
suggests that on average government jobs pay more than non-government jobs. This is most evident in
Houghton County, where government accounts for 41.1% of earnings but only 26.1% of employment.
This disparity may result from a preponderance of relatively high-paying state government jobs at
Michigan Technological University. In Houghton County, state government accounts for 41.2% of all
government jobs versus 21.5% in the next-highest county (Baraga) and 25.3% region-wide.
These same indicators are depicted in Figure 5-II, including a breakdown of employment at various
levels of government.
Figure 5-II: Government Versus Total Earnings and Employment, 2014
$800
$700
14,000
Earnings (Millions)
Employment (Annual)
12,000
$600
10,000
$500
8,000
$400
6,000
$300
4,000
$200
$100
2,000
$0
0
SOURCE: BEA
Government
Other
SOURCE:
QCEW
via DTMB
Federal
State
Local
Private
Based on measures of both employment and total earnings, the public sector plays a leading role in the
economy. It also provides stability to an economy that has been strongly oriented toward natural
resource commodities which react sharply to business cycle changes. The sector’s importance emerged
during the Great Depression in the 1930s, when government at all levels increased intervention in the
economy as a matter of public policy, eventually becoming the region’s dominant economic force.
56
Section 5 The Economy
Over the past several years, an anti-tax mentality has pervaded the Federal Government and many state
governments. This has wide-ranging implications for services and spending not only at these levels but
at local levels, which suffer as a result of reductions in shared revenues for local governments. And
reductions in public spending impact not only services but the staff that provide them. An industry that
has historically been resilient is thus threatened as a result of higher-level forces.
Private Sector
Separating private from public employees can bring out small differences between industries that might
not otherwise be apparent. Table 5-VI shows number of employees, number of establishments, total
wages, and average weekly wages for the 12 industries that are indicated to employ more than 400
persons in the region. (The numbers are likely higher than shown, since data is not provided for some
industries in some counties.) These classifications are more specific than the earnings categories in Table
5-IV.
Table 5-VI: Industries Employing >400 Persons, Western U.P., 2015 Annual
Industry
Establish- Total Wages
Average *
Jobs
ments
Weekly Wage
(with NAICS code)
(1,000s)
722 – Food Services and Drinking
Places
622 – Hospitals
445 – Food and Beverage Stores
452 – General Merchandise
Stores
621 – Ambulatory Health Care
Services
541 – Professional and Technical
Services
236 – Construction of Buildings
238 – Specialty Trade Contractors
447 – Gasoline Stations
522 – Credit Intermediation and
Related Activities
721 – Accommodation
624 – Social Assistance
1,976
183
$26,336
$255
1,073
796
3
26
$60,742
$14,990
$1,090
$362
793
27
$17,070
$396
775
85
$26,586
$673
665
138
$31,486
$911
498
494
462
111
118
52
$20,195
$17,796
$7,435
$783
$693
$313
457
39
$15,695
$663
454
409
44
20
$6,966
$7,441
$294
$336
SOURCE: QCEW via DTMB
* Calculated for each industry as follows: Average weekly wage in each county is multiplied by
number of jobs in that county; the products of all counties are then added together, and the sum is
divided by the total number of jobs in the region.
In number of jobs, the table shows an overwhelming dominance of retail (including food services and
drinking places) and healthcare industries, which together represent the top five employing industries.
Among these, there is a stark dichotomy between healthcare and the others. Food service and drinking
places, the industry employing the single largest number of people in the region, has among the lowest
average weekly wages of all industries. Hospitals, on the other hand, employer of the second-largest
number of people, has the highest total and average weekly wages of the industries shown. In the top five
57
Section 5 The Economy
industries, although healthcare has a strong workforce (1,848) and overall economic presence, it is
balanced against a much larger workforce (3,565) in low-wage retail industries.
Table 5-VII shows changes in jobs numbers from 2011 to 2015 among the industries employing over 400
persons in 2015. This was a period without any major intervening economic events, although it was
characterized by slow recovery from the Great Recession.
Table 5-VII: Jobs in Top-Employing Industries, Western U.P., Annual
2011
2015
Absolute
Industry
Jobs
Jobs
Change
722 – Food Services and Drinking
54
1,922
1,976
Places
622 – Hospitals
(X)
1,073
(X)
445 – Food and Beverage Stores *
691
796
105
452 – General Merchandise
-25
818
793
Stores
621 – Ambulatory Health Care
-764
1,539
775
Services
541 – Professional and Technical
13
652
665
Services
236 – Construction of Buildings *
531
498
-33
238 – Specialty Trade Contractors
545
494
-51
447 – Gasoline Stations
341
462
121
522 – Credit Intermediation and
-5
462
457
Related Activities
721 – Accommodation *
424
454
30
624 – Social Assistance
556
409
-147
Percentage
Change
2.8%
(X)
15.2%
-3.1%
-49.6%
2.0%
-6.2%
-9.4%
35.5%
-1.1%
7.1%
-26.4%
SOURCE: QCEW via DTMB
Same counties are tabulated for each industry each year, except (*) indicates one county added in 2015
(X): Data not available
There was not a common trend in employment numbers among top-employing industries from 2011 to
2015, but certain highlights are immediately apparent. Declines in Ambulatory Health Care and Social
Assistance employment are at first alarming, but there were considerable changes in the region's
healthcare landscape over the time period, so disparities may be a result of reclassifications and shifts
between economic sectors. The reporting of Hospitals data in 2015 but not 2011, for example, is likely a
result of the purchase of UP Health System Portage in Hancock, the region's largest hospital, by a private
company in 2014, and the decline in Ambulatory Health Care may have resulted from reclassification of
an institution into the Hospitals group or from shift of a hospital from the private to the public or
nonprofit sector.
There was also a small but somewhat perplexing decline in building construction jobs, even with
increasing time since the construction lull of the recession and the addition of Keweenaw County data in
2015. But there were large increases in the service industries of Gasoline Stations, Food and Beverage
Stores, and Accommodation (addition of Ontonagon County to the latter two of these may have been a
contributing factor).
58
Section 5 The Economy
Manufacturing, although not in the region's top industries by total employment, is a highly desirable
industry sector for both economic developers and the general public, largely due to its potential to
produce high-wage jobs. Manufacturing has seen a tumultuous decade in the region, with extreme
declines during the recession that have rebounded only somewhat. Table 5-VIII shows employment in
manufacturing industries (those that have a significant ongoing presence in the region) for every three
years since 2006 along with the net change in that period.
Table 5-VIII: Jobs Numbers in Manufacturing Industries, Western U.P., Annual
Manufacturing
Absolute Percentage
2006
2009
2012
2015
Industry
Change
Change
321 – Wood Product
503
353
418
396
-107
-21.3%
332 – Fabricated
317
136
204
217
-100
-31.5%
Metal Product
333 – Machinery
387
168
253
284
-103
-26.6%
TOTALS
1,207
657
875
897
-310
-25.7%
SOURCE: QCEW via DTMB
Wood Product, Fabricated Metal Product, and Machinery were the only types of Manufacturing in the
region to have a reportable number for each of the four years. From 2006 to 2009, the total jobs in
these three industries dropped by 550, or 45.6%. The Fabricated Metal Product and Machinery
categories each dropped by about 57%. Wood Product manufacturing saw slightly less hardship.
In 2006, two-thirds of fabrication and machinery manufacturing jobs in the region (as reported in QCEW)
were based in Baraga County. Even as over 200 of those jobs were lost, by 2009 the county's share of
the region's jobs in those industries increased to 80%. The same year, the Superior Suppliers Network
(SSN), LLC, was formed through a formal agreement of 11 fabricators to collectively pursue new
business opportunities. The group proceeded with a united front for a time, and a business
development manager was hired in 2010 to represent the group's interests. However, the county
managed to regain only 30 jobs in fabrication and machinery manufacturing from 2009 to 2015.
Figure 5-III makes clear that, although a significant rebound has occurred region-wide in these industries
since 2009, the net loss from 2006 to 2015 remained devastating to the sector, with 310, or 25.7%, of
the 2006 total jobs lost.
Jobs
Figure 5-III: Manufacturing Jobs Trend, Western U.P., Annual
550
500
450
400
350
300
250
200
150
100
503
396
387
353
317
284
217
168
136
2006
SOURCE:
QCEW via DTMB
2009
Wood Product
2012
Fabricated Metal Product
59
2015
Machinery
Section 5 The Economy
SMALL BUSINESSES
Just as levels of employment vary by industry, large differences exist among industries in the proportion
of jobs supplied by firms of different sizes. These differences have clear implications for workforce
development strategies, since small and large firms tend to have differing labor requirements, hiring
patterns, occupational staffing, and wage rates.
Aside from public and non-profit employers such as universities and most hospitals, almost all
employers in the region are small businesses. There is a single private employer classified as "large"
(over 500 employees) in the region: UP Health System Portage in Hancock, with a staff of 800. Before
the hospital's purchase and entry into the private sector in 2014, it had been over 20 years since another
large private business existed in the region: White Pine Mine, which closed in 1995. The region’s only
other employer of any kind with over 500 employees is Michigan Technological University, the largest
employer in the region and one of the largest in the U.P., with a staff of 1,600. Meanwhile there are
2,040 small business establishments in the region, categorized as shown in Table 5-IX.
Table 5-IX: Small Business Establishments by County and # Employees
Employees Baraga Gogebic Houghton Iron Keweenaw Ontonagon
Under 20
176
365
756
346
63
157
20 to 99
17
26
87
16
2
7
100 to 499
2
7
7
4
0
1
500 to 999
0
0
1
0
0
0
TOTAL
195
398
851
366
65
165
TOTAL
1,863
155
21
1
2,040
SOURCE: U.S. Census Bureau County Business Patterns, 2014
Small businesses have contributed to the regional economy by introducing new technologies and
products and serving new markets; implementing better working conditions; and creating new jobs.
They have also helped the economy to adapt. Small firms and opportunities for self-employment
function as a safety net for employees laid-off by larger firms and have helped stabilize the economy
during downturns.
EMPLOYMENT FORECASTS
There are two types of employment forecast included in this section: industry forecast and occupational
forecast. The current long-term forecasts produced by Michigan DTMB range from the year 2012
(baseline) to the year 2022. DTMB produces forecasts for the Upper Peninsula (the Upper Peninsula
Prosperity Alliance) as a whole – not for the three regions within it.
Table 5-IX shows the employment forecast for the 10 industries projected to offer greatest employment
in 2022. The rankings of the top 7 are the same for 2012 and 2022. Some divergences emerge further
down the list, such as State Government (Excluding Education and Hospitals) which is projected to lose
employees between 2012 and 2022. Of the top 8 nongovernmental industries in the 2012-2022 industry
forecast for the U.P., 7 are included in the Western U.P.'s top 10-employing industries in 2015.
60
Section 5 The Economy
Table 5-IX: 2012-2022 U.P. Employment Forecast by Industry (Top 10 Projections)
Employment
Growth
Industry
2012
2022
Number
Percent
Educational Services
14,440
13,830
-610
-4.2%
Local Government
13,130
12,820
-310
-2.4%
Food Services & Drinking Places
9,220
9,590
370
4.0%
Hospitals
8,190
8,510
320
3.9%
Total Self-Employed & Unpaid
6,640
6,990
350
5.3%
Family Workers
Ambulatory Health Care Services
4,250
4,880
630
14.8%
Religious, Grantmaking, Civic,
3,780
4,040
260
6.9%
Professional, Similar Orgs.
State Government
3,980
3,730
-250
-6.3%
General Merchandise Stores
3,660
3,680
20
0.5%
Specialty Trade Contractors
2,800
3,270
470
16.8%
SOURCE: DTMB Labor Market Information & Strategic Initiatives (LMISI)
Table 5-X shows the employment forecast for the 10 occupations projected to offer greatest employment
in the U.P. in 2022. The top rankings for 2022 projected employment are primarily white-collar and skilled
labor occupations. The only change in ranking of the top 10 from 2012 to 2022 is a flip of the Production
category and the Education, Training, and Library category due to a projected gain in the first and loss in
the second. Total occupational employment is projected to be 134,790 jobs in the year 2022 – an increase
of 4,500 jobs, or 3.5%, from 2012.
Table 5-X: 2012-2022 U.P. Employment Forecast by Occupation (Top 10 Projections)
Employment Growth
Occupation Major Group
2012
2022
Number
Percent
Office & Administrative Support
19,330
19,340
10
0.1%
Sales & Related
12,330
12,750
420
3.4%
Food Preparation & Serving
12,250
12,675
425
3.5%
Healthcare Practitioners &
9,080
9,660
580
6.4%
Technicians
Production
8,805
9,190
385
4.4%
Education/Training/Library
8,920
8,700
-220
-2.5%
Transportation & Material Moving
7,460
7,690
230
3.1%
Construction & Extraction
6,555
7,300
745
11.4%
Installation/Maintenance/Repair
6,220
6,470
250
4.0%
Management
6,210
6,435
225
3.6%
TOTAL All Occupations
130,290
134,790
4,500
3.5%
SOURCE: DTMB LMISI
Table 5-XI shows the 10 projected fastest-growing occupational titles in the U.P. This is a diverse set,
including blue color and white collar, skilled and professional, from a variety of industries. Of the top 10
projected for percentage growth, two are projected to provide by far the most new jobs: Home Health
Aides (230) and Market Research Analysts and Marketing Specialists (100; also the fastest-growing).
61
Section 5 The Economy
Table 5-XI: 2012-2022 Projected Fastest-Growing Occupational Titles in U.P.
Employment Change
Occupational Title
Number
Percent
Market Research Analysts and Marketing Specialists
100
33.3%
Veterinary Technologists and Technicians
15
30.0%
Meeting, Convention, and Event Planners
15
25.0%
Home Health Aides
230
24.9%
Sawing Machine Setters, Operators, and Tenders, Wood
45
23.1%
Brickmasons and Blockmasons
25
22.7%
Diagnostic Medical Sonographers
10
22.2%
Cement Masons and Concrete Finishers
20
21.1%
Physical Therapist Assistants
25
20.8%
Computer Systems Analysts
25
20.8%
SOURCE: DTMB LMISI
In general, the projections as a show faster rates of employment growth for occupations that require
moderate to high levels of education and training. Depending on the occupation, this can come in the
form of a traditional college education or skilled trades/career and technical education programs.
Table 5-XII presents annual job openings by occupation major group from 2012 to 2022 in the entire
Upper Peninsula in both growth and replacement job openings. Office and Administrative Support is
expected to produce the largest number of job openings during this period, but 9 in 10 of these openings
will be replacement positions. Construction & Extraction is expected to see the most growth, both in
absolute number and percentage, with 41.4% of job openings being new rather than replacement.
Table 5-XII: Top 10 Occupations for Projected 2012-2022 Annual Job Openings in U.P.
Occupation Major Group
Total Openings
Growth
Replacement
Office and Administrative Support
501
51
450
Food Preparation & Serving
497
49
448
Sales & Related
442
47
395
Healthcare Practitioners & Technicians
246
58
188
Production
238
62
176
Transportation & Material Moving
198
31
167
Construction & Extraction
191
79
112
Education/Training/Library
184
0
184
Installation, Maintenance, & Repair
174
28
146
Management Occupations
154
27
127
SOURCE: DTMB LMISI
REAL-TIME REPORTING
In an age when up-to-the-minute information is always in demand and even taken for granted,
government can facilitate better decision-making by acting in suit. Michigan DTMB produces a monthly
"Real-Time Labor Demand" Snapshot for each Prosperity Region, including the Upper Peninsula. In the
following January 2017 Snapshot, 2,990 total job postings were reported for the U.P., with two of the
top five-posting employers having a presence in the Western U.P.
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Section 5 The Economy
Figure 5-IV: Real-Time Labor Demand – January 2017 Snapshot, Prosperity Region 1
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Chapter 6 Planning/Economic Development Network
INTRODUCTION
WUPPDR is one of many organizations in a very large network that deals with planning and economic
development activities which are focused totally or in part on the Western Upper Peninsula of Michigan.
These organizations are found in the private, public, and nonprofit sectors, and each has some influence
on economic development activities in the region. The territorial interests of all the organizations cover
a very wide continuum, from a single community institution to the entire region or U.P. Those in the
public sector represent all levels of government from federal departments to local minor civil divisions
of cities, villages and townships. Those in the private for-profit and non-profit sectors can most easily be
described as representing very diverse interests.
Organizations dealing with planning and economic development activities, such as WUPPDR, have
continually repositioned themselves into new relationships. In these relationships terms like
collaboration, partnerships, and cooperation, which were once used more rhetorically, have now gained
more meaning in practice. Community and economic development organizations in the Western U.P.
are not only sharing information and programs among themselves but are frequently working
cooperatively with organizations in other disciplines. They have discovered in the process that
cooperation can mean access to new constituents, new sources of funding and increased effectiveness.
INVENTORY OF ORGANIZATIONS
The organizations listed below represent only a partial inventory of the network. WUPPDR has
partnerships with many other organizations in the private for-profit, private non-profit, and public
sectors. While all collaborations are important, the number of these organizations and their individual
missions makes it inappropriate to discuss them all here. The following, therefore, primarily are public
organizations with which WUPPDR has the direct relations in the pursuit of planning and economic
development activities:
U.S. Department of Agriculture Forest Service
The Forest Service is responsible for the administration and management of close to a million acres
within the boundaries of the Ottawa National Forest. These lands occupy approximately 24 percent of
the total area of the Western Upper Peninsula. With this amount of land and the number of different
programs the Forest Service must operate to meet its mission, the agency has a significant impact on
rural development in the region. It meets many of its obligations through partnership arrangements.
U.S. Department of Agriculture Natural Resources Conservation Service
The Natural Resources Conservation Service works with individual property owners, non-governmental
organizations, and local governments in areas involving soil and water issues. Through its Resource
Conservation and Development (RC&D) Program, it provides technical and financial assistance to local
RC&D councils. These councils identify problems and priorities along with setting goals to solve
problems in four broad areas: land conservation, water management, community development, and
environmental enhancement.
U.S. Department of Agriculture Rural Development
The programs of this agency are used to support public works programs in partnership with other
agencies. The agency’s housing programs have also been used effectively throughout the region, and RD
is currently directing resources toward certain aspects of rural business infrastructure assistance.
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Chapter 6 Planning/Economic Development Network
U.S. Department of the Interior National Park Service (NPS)
NPS works in partnership with local organizations and local units of government that have special
interests in these parks. Since the parks attract visitors that use both private and public services,
addressing different user groups’ needs and how best to fulfill them requires coordinated planning to
reduce possible negative impacts on both the parks and local communities. Two national parks are
located within the region. Isle Royale National Park is mostly isolated on an island northwest of the
Keweenaw County mainland, whereas Keweenaw National Historic Park includes partner sites across
much of the peninsula’s mainland, drawing special attention to historic town sites and features.
U.S. Department of Interior Bureau of Indian Affairs
This organization is represented through the two reservations that are located in the region, the L’Anse
Reservation in Baraga County around the communities of L’Anse and Baraga and the Lac Vieux Desert
Reservation in Gogebic County at Watersmeet. Both tribal governments are pursuing community and
economic development programs and interact with adjacent local governments.
U.S. Department of Commerce Economic Development Administration (EDA)
Besides operating a multi-county economic development planning program, EDA also offers a number of
programs which allow for the economic development implementation through financial assistance.
Since financial resources are limited, cooperative partnerships to undertake projects—particularly in
public works—are commonplace.
Michigan Economic Development Corporation (MEDC)
This quasi-governmental agency functions as a public-private partnership fostering community
development, job creation, and economic expansion. Services in the region are offered via two separate
but related entities: the Community Assistance Team (CATeam) and Business Development program.
The former works with local units of government to improve community environments and
opportunities, and the latter works with economic development organizations and directly with
businesses, performing retention visits and identifying needs for and potential benefits from public
funding. MEDC also has programs focusing on other opportunities such as foreign investment and also
has purview over the Pure Michigan statewide tourism campaign.
Michigan Departments of Technology, Management and Budget; Natural Resources;
Environmental Quality; and Transportation
Each of these agencies has planning functions and programs which offer a wide range of rural,
community, and economic development initiatives, and each is active in the region and in the network.
Michigan Works! (MW)
This agency is responsible for operating the employment services within the state. MW provides
recruitment, counseling, testing, training referrals, and job placement via its one-stop service centers
and field offices, as well as labor market information. MW also works directly with businesses to address
their workforce needs.
UPWARD Talent Council (UPWARD)
The UPWARD Talent Council is a business-led policy and oversight organization responsible for creating
a comprehensive, community-wide response to the challenges of building a highly skilled workforce and
a competitive regional economy across the U.P. The UPWARD County Commissioner Board has
representation from every county in the U.P. in the form of locally elected County Commissioners who
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Chapter 6 Planning/Economic Development Network
appoint members to the UPWARD Workforce Development Board. The business-led Workforce Board
has a majority private sector membership that sets the strategic direction for workforce development
tactics in the U.P. These boards work together to foster economic development, encourage and support
employers, and promote full employment for U.P. residents. UPWARD delivers Michigan Works! services
to the business community across the U.P. to support regional economic and workforce development.
UPWARD is administratively integrated with multiple organizations in the region other than Michigan
Works! The Central U.P. Planning and Development Regional Commission, Small Business Development
Center, Keweenaw Economic Development Alliance, and other local economic development partners
are directly linked through the UPWARD Talent Council. This regional partnership approach increases
the connectivity of local partners, raises awareness surrounding all U.P. economic development
projects, and creates efficiency that leads to more successful outcomes across the region.
Michigan State University Extension Service
Through a network of field offices, county extension directors and extension specialists, the economic
and social needs of Michigan residents, particularly in rural areas, are being addressed. Focus areas
include agriculture (including food processing and 4-H), product development, and planning and zoning
education. The Upper Peninsula has a Government and Public Policy Educator who WUPPDR regularly
works with on topics of mutual interest.
Upper Peninsula Economic Development Alliance (UPEDA)
This nonprofit membership organization promotes the entire Upper Peninsula as a business location by
integrating and improving on the region’s many unique qualities. UPEDA provides marketing and
informational services to its private and public members. Services are funded in part through a matching
grant from MEDC.
Upper Peninsula Commission on Area Progress (UPCAP)
This nonprofit organization was the organizing entity for the three Upper Peninsula planning and
development districts, including WUPPDR, in 1968 (at EDA’s request). Today UPCAP is responsible for
development, coordination, and provision of human, social, and community resources across the Upper
Peninsula. It is also designated as the U.P.’s Area Agency on Aging to advocate for and provide services
to older adults.
Upper Peninsula Travel and Recreation Association (UPTRA)
Upper Peninsula Travel and Recreation Association is a private non-profit organization composed of
members that represents the small businesses which make up the tourism industry. Its primary mission
is to promote the tourism attributes of the region to markets outside the region.
Operation Action U.P.
This private non-profit organization is an advocate for industry on key issues affecting Upper Peninsula
businesses. It also facilitates economic development through industrial prospecting and promotions.
Northern Initiatives
This private non-profit community development corporation, once an academic department of Northern
Michigan University in Marquette, provides a broad range of technical and economic development
services to small businesses in Northern Michigan including lending, training, informational and
efficiency consulting, and regional strategies such as tourism promotion.
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Chapter 6 Planning/Economic Development Network
MTEC SmartZone
This establishment serves as a high-technology business accelerator (a type of incubator) for connecting
all types of enterprises, from private entrepreneurs to Fortune 500 companies, with Michigan
Technological University student talent. MTEC provides business infrastructure systems and support
along with consulting services. MTEC is one of 15 SmartZones in the state. MTEC operates as a nonprofit corporation with a board currently composed of local business leaders, educational leaders, and
public administrators. It is financed through a local development finance authority through tax
increment financing, with foregone local tax revenues reimbursed by the Michigan Strategic Fund.
Michigan Department of Community Health and County/Regional Health Departments
These public agencies provide consultation, assistance, and service in the areas of environmental health,
food service licensing and training, employee health testing, wellness education, disease prevention,
and inoculation clinics.
Local Community and Economic Development and Planning Organizations
There are a variety of local organizations which address planning and economic development issues.
These include chambers of commerce, industrial development councils, convention and visitors bureaus,
downtown development authorities, economic development corporations, and planning commissions.
They are all involved in the network for planning and economic development to some degree, and they
all make contributions to their local communities. These organizations work to strengthen area
businesses through cooperation, association, and marketing, while also offering services to benefit
tourists and the public at large.
Among these organizations, the Keweenaw Economic Development Alliance (KEDA) provides business
retention, attraction, coordination of services, and technical assistance within the Keweenaw Peninsula.
WUPPDR has a strong partnership with KEDA in community development and grants administration.
Regional Planning Organizations
There are 14 official state regional planning organizations (RPOs) in Michigan. While each has its own
particular set of issues, these organizations all pursue planning and economic development activities
which address problems and seek solutions from a regional perspective. Most of Michigan's RPOs are
engaged in implementing the Regional Prosperity Initiative, a state-level program to foster improved
organizational collaboration and efficiencies. WUPPDR works closely and regularly with CUPPAD and the
Eastern Upper Peninsula Regional Planning and Development Commission to coordinate and prevent
duplicative and conflicting efforts in the Upper Peninsula.
State and National Nonprofit Organizations
WUPPDR or its staff maintain strong relationships with three nonprofit membership organizations that
advocate, conduct research, and provide professional development related to planning and
development. The Michigan Association of Regions (MAR) is the state association for the 14 RPOs. The
Michigan Association of Planning is the professional association for planners and the state chapter of the
American Planning Association. The National Association of Development Organizations connects a wide
range of economic development and planning organizations on the national level, including
metropolitan and regional planning commissions and councils of government.
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Chapter 7 Issue Identification
PROCESS AND LIST OF ISSUES
For this iteration of the CEDS, the WUPPDR Commission elected to designate the Western U.P. Regional
Prosperity Collaborative (WUPRPC) as the CEDS Committee. WUPRPC conducted SWOT analyses over
the course of three sessions in two locations in the region. The combined feedback from the SWOT
analyses is compiled below. The outcome of the SWOT analyses was also included in WUPRPC's 2016
Regional Prosperity Plan amendment and was used as a basis for development of proposed 2017 RPI
projects.
POSITIVE
Strengths (Internal)
 Natural resources
 Water resources/freshwater
 Sense of community/quality of life
 Isolation/seclusion
 Recreation opportunities
o Historical and cultural assets
 Established tourism economy; geo-tourism
 Copper Peak complex (ski flying, trails,
other recreation)
 Michigan Technological University; other
universities and community colleges
 High School diploma attainment
 Strong work ethic
 Public transportation
 Low-cost housing, land, property
 Productive workforce
 Great Lakes ports
 Varied/diverse business base
 Regional Chamber Alliance
 Ability and willingness to collaborate
 Coordinated healthcare systems
 Emergency services
Opportunities (External)
 Geo-tourism and winter tourism
 International community (attraction,
utilization, engagement)
 Wireless/broadband access
 Affordable and reliable energy
 Multi-modal transportation hubs and
network
 Improvement of recreation access
infrastructure such as roads and paths
 Marketing, development, and
capitalization of/upon recreation assets
 Recreation events/facilities (e.g. fishing
tournaments and Copper Peak)
 Expansion and interconnection of water,
silent, and motorized trail networks
 Mountain biking trails
 Engagement of U.S. Forest Service/DNR
Good Neighbor Authority in National
Forest counties (Baraga, Gogebic,
Houghton, Iron, Ontonagon)
 Quality affordable housing
 "Missing middle" housing in urban areas
 Attraction and retention of young
people
 Development and attraction of new
businesses
 Online business presences
 Engagement of private sector
 Integration of planning documents
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Chapter 7 Issue Identification
NEGATIVE
Weaknesses (Internal)
 Wireless/broadband access
 Unskilled jobs
 Lack of employer recognition of employee
skills
 Economic disadvantage
 Lack of qualified workforce/employees
 Lack of employee values in continued
learning/professional development and
work ethic
 Difficulty in recruiting professionals
 Lack of employment opportunities for
"trailing spouses"
 Low wages
 High cost of living
 Seasonal workforce/mentality
 Professional networks
 "Status quo" mentality
 Marketing of business
 Poor customer and hospitality services
 Brain drain
 Transportation costs
 Winter weather/climate
 Perception of isolation
 Lack of commercial and industrial space
 Capacity of local units of government
 Lack of advocacy on state level
 Large amount of tax-exempt land/property
 Funding Resources
Threats (External)
 "One size fits all" regulations
 State-level focus on Lansing and Southeast
Michigan, and related attitudes
 Outside influence – being subject to
decisions of others; lack of control/power
 Lack of progress and responsiveness in
areas such as emergency repairs and
energy
 "Single source" services/limited options in
general; reliance on outside resources
 "Status quo" mentality
 Legal impediments on health care options
and affordability
 Electricity supply
OVERVIEW OF ISSUES
Culture, Environment, and Lifestyle
A major attractor of current and prospective residents to the region is its unique culture and locationbased amenities. The Upper Peninsula overall, and the Western Region specifically, possess a strong
sense of place arising from a common heritage. A collaborative spirit arises out of necessity among the
region and its many networked organizations. The region’s physical and social properties are attractive
by any measure. The six counties have an average violent crime rate less than half the average rate of
the six-state Economic Development Administration region (which includes the states of Minnesota,
Wisconsin, Michigan, Illinois, Indiana, and Ohio). Housing and real estate are very affordable. The
natural environment is attractive and serene, having been relatively untouched in recent decades, and it
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Chapter 7 Issue Identification
offers endless recreational opportunities over the course of four distinct seasons. The region possesses a
large amount of Great Lakes shoreline along with inland lakes and streams. Severe weather can be
viewed as either an advantage or a disadvantage, but it allows for specialized recreational opportunities,
and despite extreme precipitation events, the risk of natural disasters is low.
On the downside, the region’s population is aging and somewhat resistant to change, and outside
perceptions of the region as an eccentric, out-of-the-way place tend to exacerbate this disadvantage.
Obtaining employment and conducting business operations can be a challenge, especially to people
from outside the region, due to nepotism and inefficient, multi-level government and educational
systems. Public policy and regulations are often based on top-down direction from state-level agencies
in the Lower Peninsula. Institutional memory among staff, while advantageous in some ways, also
contributes to closed-mindedness. The natural resources that are so inviting to outdoor adventurists are
also attractive to extractive industry, and conflicts occasionally arise as a result. Although housing is
affordable, in many cases it is low-quality. And many are driven away from the region simply because of
its geographic isolation and limited access to the amenities of more populated areas.
Institutions, Infrastructure, and Economy
Issues related to the economy result directly from the region’s geographic isolation. Several entities that
have overcome this isolation are Michigan Technological University, a nationally renowned public
university; Finlandia University, a private liberal arts college; and two community colleges. The region’s
economic center is diversified with innovative companies including entrepreneurs, defense contractors,
and a history of patenting. The region as a whole benefits from underutilized natural resources.
Renewed mining activity is becoming more realistic due in part to increased worldwide demand for iron
and copper. The region also benefits from local sourcing and manufacturing trends and a low-cost
workforce. Finally, opportunities for internet business and telecommuting are increasing, opening up a
new front for employment.
Unfortunately, in many ways and areas the economy is stagnant and tends to lag behind regional and
national trends. Aging and limited infrastructure makes transportation of goods, services, and
information difficult. Services and utilities are slow and expensive with limited coverage. Customer
service is often poor. Lack of family-sustaining job opportunities causes outward migration, and much of
the workforce that remains holds on to a seasonal mentality that impacts productivity. Rising costs of
travel and health care have a disproportionate impact on the sparsely populated region, as do unstable
commodity prices and global economics. Retail migration to “big box” (large retail) stores and the
internet hurts small businesses, contributing to loss of employers. Finally, due to the predominance of
the government sector, reduced government spending and grant funding limit the region’s prosperity.
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Chapter 7 Issue Identification
Summary
In many ways the Western U.P. is a region of paradoxes. Many strengths are often weaknesses when
viewed in a different light. This is hardly unique to this region, as most SWOT analyses yield similar
results. Still, it is important to recognize the upsides and downsides of aspects such as winter weather,
isolation, natural resources extraction, opportunities for remote workplaces, and relative detachment
from the global economy. The region is left to fend for itself in many respects, and the people have risen
to this challenge. By necessity, collaboration is stronger in the Western U.P. than in many other areas of
Michigan and nationally. With that base already established, the region has the opportunity to apply all
available resources to achieve the region's goals, objectives, and strategies in the chapters to follow,
always working toward the region's shared vision.
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Chapter 8 Goals and Objectives
A Vision for the Western Upper Peninsula
In recognition of the SWOT analysis conducted in 2016 in conjunction with the Western U.P. Regional
Prosperity Initiative (RPI), further informed by regular discussions of that group over the past three
years, a new vision has been agreed upon for the Western U.P.:
A stable, diversified, economy
fostered through investments in quality built and natural environments;
affordable, accessible, and robust infrastructure; a productive and resourceful populace;
and an open, progressive, collaborative mindset
Regional Goals and Objectives
Goals and objectives for this iteration of the CEDS are based on two processes. First is RPI, which, in
2014, resulted in development of a five-year Regional Prosperity Plan by the Western U.P. Regional
Prosperity Collaborative. The plan, which arose from a year of monthly discussions of select
stakeholders focusing on economic and workforce development, adult and higher education, and
transportation, evaluated regional issues and needs and identified strategies to address those needs.
The strategies were narrowly tailored to projects proposed for implementation the following year.
Second is a reevaluation and distillation of the broader goals and objectives of the previous five-year
CEDS, subject to review by the Regional Prosperity Collaborative. Together these processes were a wellrounded and comprehensive basis for regional goals and objectives over the next five years.
GOAL I: Help support the business environment to create and expand opportunities for entrepreneurs
and businesses.
 Objective 1: Help provide a small business support system which will contribute to a variety of
services which include the development of business plans, market feasibility studies, marketing
plans, cash flow analyses, loan packaging, and export assistance.
 Objective 2: Maintain WUPPDR's business assistance inquiry and case tracking system, Western
U.P. Resource Connect, which serves as a single point of entry for access to multiple local and
regional business support organizations.
GOAL II: Build upon the uniqueness of the region’s rural resources to leverage sustainable and diverse
enterprise opportunities.
 Objective 1: Support and continue the development of the tourism industry through forest
recreation, fish and wildlife, and scenic and heritage-based strategies.
 Objective 2: Support and seek opportunities for value-added manufacturing that utilizes
commodities originating within the region.
 Objective 3: Support and seek opportunities for development of the wood biofuels industry,
primarily for residential, institutional, and district heating systems.
GOAL III: Mitigate natural forces that threaten the region's general and economic resiliency.
 Objective 1: Incorporate climate change considerations into planning, development, and
promotion of tourism and other natural resource-based industries.
 Objective 2: Conduct hazard mitigation planning and project implementation for avoidance of
and recovery from natural and human-based hazards.
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Chapter 8 Goals and Objectives
GOAL IV: Improve the region’s physical infrastructure to ensure the free flow of people, freight, energy,
and information while improving quality of life, ensuring safety and security, and protecting the
environment.
 Objective 1: Support maintenance of local road networks and funding systems to facilitate
resident mobility and access to natural resources and markets.
 Objective 2: Provide input into the statewide transportation planning process along with
support for continuing upgrades to the state trunkline system.
 Objective 3: Support airport facility upgrades and efficient commercial air service and general
aviation activity to permit transport of passengers and goods.
 Objective 4: Participate in ongoing efforts to preserve and expand the freight rail network of
Northern Wisconsin and the Upper Peninsula.
 Objective 5: Support creation and maintenance of public transit systems to provide for local and
regional transit mobility, particularly for persons who lack automobiles or ability to drive.
 Objective 6: Preserve and continue development of multi-use recreational trails on the local,
regional, and statewide levels, including the Iron Belle Trail.
 Objective 7: Support expansion and improvement of broadband internet and cellular service
through Connect Michigan technology action planning and plan implementation.
 Objective 8: Support and undertake projects and mechanisms to provide access to affordable,
efficient, and renewable energy for residences and commercial and industrial enterprises.
GOAL V: Promote a community development framework for improved design, infrastructure,
preservation of assets, and general welfare to create quality places to live, work, and conduct business.
 Objective 1: Promote development regulations including zoning ordinances, building codes, and
historic preservation ordinances, along with associated plans, to protect the aesthetics,
character, cultures, and property values of our communities.
 Objective 2: Support and undertake "placemaking" projects to create attractive and engaging
elements, such as parks and art features, to enhance the vibrancy of our communities.
 Objective 3: Support sustainable development, modernization, and renovation of public facilities
and utilities, including water, wastewater, sanitary sewer, and solid waste systems, to provide
access to high-quality, safe, and sustainable public services.
 Objective 4: Encourage development and rehabilitation of quality affordable housing consistent
with residential target market analyses that evaluate market potential.
 Objective 5: Support evaluation and environmental remediation to encourage the reuse and
redevelopment of brownfields.
 Objective 6: Foster development and enhancement of recreational and cultural facilities and
programs for entertainment, recreation, wellness, and enrichment of culture and heritage.
 Objective 7: Search for funding opportunities and support member governments’ efforts to
preserve significant historic resources, ethnic histories, and related assets.
 Objective 8: Preserve access to comprehensive medical care and community health programs.
 Objective 9: Support the operations of nonprofit organizations that meet community social
needs and provide resources that are not effectively supplied by the public and private sectors.
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Chapter 8 Goals and Objectives
GOAL VI: Build and enhance the region's capacity to attract, retain, and educate individuals to build
their capacities, meet workforce needs, and create continuously rejuvenating communities.
 Objective 1: Support growth and sustainability of, and partnerships among, our local and
intermediate school districts and institutions of higher education.
 Objective 2: Support growth and sustainability of career pathways and career and technical
education (CTE) programs to meet the education, employment, and retraining needs of
individuals and the workforce needs of our employers.
 Objective 3: Support growth and sustainability of young professionals groups to provide a strong
network for young adults who are vital to the future of our communities.
 Objective 4: Actively seek out, and act on, input from youth and young adults regarding
priorities and desires for their communities in order to encourage this population to remain.
GOAL VII: Pursue and nurture collaborative relationships within the region, across the Upper and Lower
Peninsulas of Michigan, and with Wisconsin border areas.
 Objective 1: Support and advocate for continuation of Michigan's Regional Prosperity Initiative
as the most effective mechanism for regional communications and collaboration.
 Objective 2: Foster relationships between WUPPDR, local economic development organizations
(EDOs), and regional partners across the Upper Peninsula through the Region 1 Collaborative
Development Council and Upper Peninsula Economic Development Alliance.
 Objective 3: Support efforts to strengthen single- and multi-county EDOs, Economic
Development Corporations, and chambers of commerce, as well as partnerships among them
and/or consolidation where locally supported.
 Objective 4: Support the Western U.P. Regional Chamber Alliance to reduce duplication of
promotional efforts and create greater impacts through projects of mutual benefit.
 Objective 5: Participate, through staff involvement, in the U.P. Professional Planners Group.
 Objective 6: Maintain regular contact with the Central and Eastern U.P. Planning Regions to
coordinate projects and priorities and to maximize use of resources to meet common goals.
Objective 7: Search for and take advantage of opportunities for cross-border relationships and
partnerships with Wisconsin's communities and regional organizations.
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Chapter 9 Implementation Plan
PLANNING FOR IMPLEMENTATION
Goals and objectives are only manageable if they are focused on individual strategies, which lead to a
realistic plan of action. This chapter begins by defining the various categories of operations of WUPPDR
and other regional organizations through which they are equipped to implement projects – both those
identified in this CEDS and any others that arise from time to time. The chapter continues by defining
priority strategies and list of associated projects arrived upon through the Regional Prosperity Initiative.
The chapter concludes with a list of specific construction and planning [TO BE ADDED] projects drawn
from local units of government and engineers throughout the region in response to a Call for Projects.
Categories of Operations
Technical Assistance
WUPPDR has established a technical assistance program to respond to requests, primarily from local
units of government, for addressing specific economic and community development needs. The most
frequent types of assistance include local planning services such as comprehensive, recreation, and
hazard mitigation planning; labor standards compliance; geographic information systems administration
and mapping; research through public opinion surveys and existing information; and completion of
forms and applications. By offering this assistance, WUPDPR supplements the capacity of local
governments in the region, most of which do not have sufficient staffing or expertise to accomplish
these tasks.
Information Services
To be able to respond to technical assistance requests as well as informational inquiries from other
agencies and the general public, WUPPDR has developed and maintains an extensive information
network for planning and development purposes. The system includes internal electronic databases;
streamlined access to public information sources, including the United States Census; and an
intergovernmental liaison network. WUPPDR is regularly in contact with the full range of public agency
and legislative contacts at the local, regional, state, and federal levels, as well as prominent private
sector leaders within the region and across the Upper Peninsula. This allows WUPPDR to serve as a
unique conduit to key individuals who have the ability to reduce impediments to regional development
and offer new opportunities – funding and otherwise.
Regional, Economic, and Community Development
WUPPDR continuously seeks opportunities for public-private partnership partnerships and investments
within the local and regional economies. Designation and support as an EDA district organization allows
WUPPDR to participate in meetings and initiatives at all levels that offer access to opportunities that
might not otherwise be known or attainable. It is important that WUPPDR have this simple but vital
capacity to be aware of events and opportunities within the region and beyond. This allows WUPPDR to
not only to find new opportunities but to provide a regional perspective and ongoing communications to
local governments that naturally are inwardly focused in their course of operations.
WUPPDR nurtures strong relationships with other public agencies focusing on economic, community,
and regional development in order to take advantage of opportunities that arise. These agencies include
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the Michigan Economic Development Corporation; Michigan State Housing Development Authority
(MSHDA); Michigan Departments of Agriculture and Rural Development, Environmental Quality, Natural
Resources (DNR), and Transportation (MDOT, which represents one of WUPPDR's strongest
partnerships); United States Department of Agriculture – Rural Development; Michigan State University
Extension; UPWARD Talent Council; local economic development corporations and organizations;
chambers of commerce; and other regional planning agencies and economic development districts; as
well as EDA itself.
Finally, WUPPDR maintains connections with organizations that provide direct assistance to businesses,
including the Small Business Development Center, Michigan Works!, Northern Initiatives, MTEC
SmartZone business accelerator, Procurement Technical Assistance Center, and Keweenaw Economic
Development Alliance. In 2016 WUPPDR developed "Western U.P. Resource Connect," a mechanism
utilizing a standardized form and case tracking system to provide access to these organizations and
others for individuals in need of assistance (services such as business consulting and planning, site
selection, workforce needs, etc.) through a single point of contact.
Grants Administration and Implementation
WUPPDR staff has expertise to apply for, administer, and, in some cases, implement grants from a wide
variety of state and federal agencies. WUPPDR has a long and strong history of administering grants
from EDA, MEDC, MDOT, MSHDA, the Federal Emergency Management Agency, and many other
agencies. WUPPDR maintains employment of at least one Certified Grant Administrator (a designation
established in 2014 that few providers in the region have attained) for Community Development Block
Grants from MEDC. Grants are administered through a variety of arrangements: WUPPDR may selfadminister a grant as the grantee, may be reimbursed by a funding agency for a grant to another
organization, or may be directly paid as a fee for service from a local government grantee.
If WUPPDR's commitment to a grant goes beyond the application and technical administration
(paperwork, compliance, and related activities) stage – that is, if a project idea originates at WUPPDR
and WUPPDR is eligible to apply or applies on behalf of a local government – WUPPDR may implement
the project itself for the benefit of the region. This has happened in the past most recently for heritagerelated marketing activities, promotion and development of the biomass fuels industry, strategic
economic development planning in Baraga County (EDA short-term planning grant), and the majority of
Regional Prosperity Initiative projects thus far. In other cases, WUPPDR may hire a consultant to do
specialized work.
Strategies and Projects for Action
The Western U.P. Regional Prosperity Collaborative, serving as the CEDS committee, revises strategies
on an annual basis. The strategies are presented as a Five-Year Economic Development Blueprint to
implement the Regional Prosperity Plan, which is also updated annually. Some strategies are geared
toward short-term projects with clearly defined deliverables. Other strategies and implementation
actions continue for multiple years. The strategies presented in this CEDS represent the priorities and
projects of RPI for the year 2017. Future strategies will be included in annual Regional Prosperity Plan
updates. Past strategies can be found in the original Regional Prosperity Plan and past annual updates.
Progress on RPI and other WUPPDR activities will be reviewed in CEDS Annual Performance Reports.
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Strategies are listed in priority order below. Strategies that currently have RPI projects underway are
listed first, followed by those that are not yet being implemented. Unless otherwise indicated, strategies
are new for 2017, intended to be implemented primarily by WUPPDR, and specific to the Western U.P.
Current Strategies for Implementation (Projects Underway)
1. Energy Efficiency and Clean Energy Outreach ^
 Strategy: Conduct outreach to local businesses and governments to increase awareness of
energy expenses and programs that can fund clean energy and energy efficiency upgrades.
 Implementation actions
 Meet with partners to develop work plan
 Research existing programs
 Perform field visits to consumers
 Develop report on outcomes
 Partners or Responsible Parties
 Prosperity Region 1b
 Michigan Energy Options
 MTU Keweenaw Research Center
 Efficiency United
 Other energy planning organizations
 Performance measures
 Entities (businesses/local governments) visited
 Uptake of funding programs by entities visited
 Energy cost savings realized
 Report developed
2. Brownfield & Blight Priority Database and Mapping
 Strategy: Develop a database and map of potential regional brownfield and blight
remediation projects; assist in identifying and implementing resources for remediation.
 Implementation actions
 Identify and validate existing inventory data
 Survey local government officials about site locations
 Explore and identify resources for remediation
 Develop inventory database, including GIS
 Partners or Responsible Parties
 Local units of government; land banks
 Local economic development organizations
 Michigan Department of Environmental Quality
 Michigan Economic Development Corporation
 Performance measures
 Local government survey response rate
 Number of resources identified
 Inventory developed
3. Western U.P. Trails Database
 Strategy: Collect and display trail information in a standardized format for utilization by trail
websites and mobile apps.
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
Implementation actions
 Engage trail organizations and volunteers
 Identify and coordinate data collection tools
 Identify and connect with potential utilizers of database
 Develop electronic database
 Partners or Responsible Parties
 Michigan Department of Natural Resources
 United States Forest Service
 Other trail organizations
 Performance measures
 Volunteers and organizations engaged
 Number of trail systems mapped
 Number of trail miles mapped
 Creation of database
 Number of potential utilizers of database engaged
4. Placemaking Support (continuing) *†^
 Strategy: Identify high-impact placemaking projects in the region through an application
process; award several matching mini-grants to communities or other organizations.
 Implementation actions
 Identify and explore potential projects
 Engage RPI participants in selecting projects
 Award and administer mini-grants
 Partners or Responsible Parties
 Local units of government
 Nonprofit organizations
 Performance measures
 Projects selected, funded, and implemented
 Impacts on PlaceScores (where applicable)
5. Regional Geographic Information System (GIS) ^
 Strategy: Develop a regional GIS, with a framework to sustain it operationally, for managing,
mapping, and increasing access to geographic data to further economic development and
facilitate local government asset management.
 Implementation actions
 Identify and communicate with interested parties to select types of data to include
 Acquire and obtain permissions to use existing datasets
 Create the GIS itself with a means for users to access its data
 Develop fee structure or other means of sustainability
 Form agreements with those who will utilize the GIS
 Partners or Responsible Parties
 Local units of government
 Local economic development organizations
 Performance measures
 Number of datasets and permissions acquired
 Creation of GIS and means of access
 Number of interested "customers"
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 Number of agreements entered into
6. U.P.-Wide Pure Michigan National Marketing Campaign *†^
 Strategy: Contribute to a Pure Michigan regional marketing campaign in conjunction with
Regions 1b & 1c and other U.P. stakeholders.
 Implementation actions
 Deliver WUP RPI share of leveraged funds
 Partners or Responsible Parties
 Prosperity regions 1b & 1c
 Pure Michigan/Michigan Economic Development Corporation
 Pictured Rocks Boat Cruises and other tourism-oriented businesses
 U.P. Travel and Recreation Association
 Mackinac Bridge Authority
 Convention & visitors bureaus
 Chambers of commerce
 Performance measures
 Funding procured and distributed
 Campaign continued
7. Technology Action Plan Upgrades and Certifications *†^
 Strategy: Assist Connect Michigan in developing new technology action plans and achieving
certification at "2.0" standard for the region's most highly engaged counties.
 Implementation actions
 Assist Connect Michigan with meetings and logistics
 Assist in engaging service providers and other private and public stakeholders
 Assist in developing upgraded technology action plans
 Partners or Responsible Parties
 Local units of government
 Chambers of commerce
 Major institutions (including education)
 Performance measures
 Connect Michigan services procured
 Technology action plans completed
 Certifications attained
 Number of providers participating
Projects Not Yet Being Implemented
1. Talent Attraction and Retention ^
 Strategies: Support and expand a task force to explore and undertake projects to stem or
mitigate loss of young and/or skilled workers and recent college graduates.
 Implementation actions
 Identify, coordinate and support existing efforts in the region
 Solicit information from employers and potential emigrants to better understand the
issue and its causes
 Identify, and, to the extent possible, implement mitigation action items
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
Partners or Responsible Parties
 Michigan Works!
 Michigan Technological University
 Young professionals groups
 Performance measures
 Number of individual and organizational partners
 Number of employers and individuals providing feedback
 Number of retention/attraction projects supported
2. Developer Forum and Additions to Retail Target Market Analyses *†^
 Strategy: Hold one or more forums to explain the recently completed residential and retail
target market analyses to developers, supplemented by information about available project
funding sources; expand retail target market analyses to additional communities.
 Implementation actions
 Organize event in coordination with TMA consultant and partners
 In consultation with partners, identify and invite developers from within and outside of
the region to attend
 Participate in broader housing forum arranged with partner organization(s) (tentative)
 Develop work plan and agreement with TMA consultant to conduct retail TMAs for
three to four additional communities
 Partners or Responsible Parties
 Prosperity Regions 1b and 1c
 LandUse USA (TMA consultant)
 Local units of government
 Private developers
 Human services organizations
 Keweenaw Economic Development Alliance
 Other local economic development organizations and chambers of commerce
 Young professionals groups
 State agencies (DEQ, MEDC, MSHDA, etc.)
 Performance measures
 Number of partners engaged
 Forum(s) held; attendance at forum(s)
 Evaluation score from forum participants
 Actual or potential residential or retail developments resulting from TMA
3. New Technology Needs Assessment and Development
 Strategy: Conduct an assessment of web- and app-based technology needs of local
governments, nonprofits, and small businesses, and potentially provide technical and
financial support for addressing deficiencies.
 Implementation actions
 Communicate with and survey local units of government about technology status and
needs/opportunities
 Communicate nonprofits and small businesses to assess their needs and interests
 Identify implementation steps and potential projects to address needs identified
 Provide technical and/or financial assistance in addressing needs as funding allows
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
Partners or Responsible Parties
 Local governments
 Nonprofit organizations
 Local economic development organizations and chambers of commerce
 Small Business Development Center and other regional economic development
organizations
 Performance measures
 Number of organizations contacted
 Number of organizations assisted
 Report developed
4. Arts and Culture Development †^
 Strategy: Contribute funding for further development of the existing U.P. Art & Culture Map
(upartandculture.com) in order to foster cultural tourism.
 Implementation actions
 Distribute funding
 Maintain dialogue with partner organizations responsible for implementation
 Partners or Responsible Parties
 Bonifas Arts Center, Escanaba
 Marquette Arts & Cultural Center
 Prosperity Regions 1b & 1c
 Performance measures
 Funding distributed
 Map website further developed
* Continuing or multi-year project
† Primarily to be implemented by external entities through pass-through funding
^ Project in common (past or present) with one or both other U.P. regions
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