VIEWPOINT
DISCOVERING MICHIGAN’S
AUTOMOTIVE TECHNOLOGY BASE
When it comes to technological prowess in the automotive
sector, Michigan has no difficulty proving its leadership. After
all, the state is home to 375 automotive
R&D centers—more than the rest of North
America combined, notes Kevin Kerrigan,
senior automotive advisor to Gov. Rick
Snyder and senior vice president of
the automotive office for the Michigan
Economic Development Corporation. He
says those facilities represent more than
70% of all automotive R&D spending in
Kevin Kerrigan the U.S. Kerrigan also points out that the
state is home to some 87,000 industrial
engineers and 70,000 R&D professionals, again more than
any other part of the country. He describes how the state is
delivering its message.
Why is Michigan mounting such an automotive push now?
The automotive industry is entering into a very broad and
fundamental era of change. New players are entering the
business, and it seems almost everything about the car is
being reexamined. It’s an extraordinarily complex phase in
the evolution of personal mobility. Michigan has been synonymous with automotive. But we believe it’s an important time
to remind everyone that the world’s greatest concentration
of automotive research, development and manufacturing
expertise is right here in Michigan.
When did the state’s initiative begin?
It came into focus when Gov. Snyder created a specific
automotive office within the MEDC a year ago. One of its first
projects was to launch and complete a comprehensive 30-year
look into the future of personal transportation and what role
the state should play. We assembled some of the smartest
people around the world to help us create strategic road map.
What are the key results?
The process identified three areas of focus: capital, technology and talent. Michigan needs to have the government and
industry funding ready and in place to support growth. We
also need to ensure the state supports key technologies in
such areas as autonomous vehicles, powertrain options,
lightweighting materials and logistics and supply chain
management. We aren’t picking winners, but we do need
to do what we can to make Michigan a hospitable place to
do research and development.
Talent is the most important of the three elements. We
have a fantastic workforce, but we need to expand it—into
software and coding, for example. We also need to reinforce
the industry’s current skilled trades as the industry moves
into new vehicle architectures and materials. That means
working even more closely with our colleges and universities
to make sure their programs align with the changing needs
of the automotive industry.
Where does Silicon Valley fit into the auto
industry’s future?
It’s a strong center for software development, and that aspect
of the automobile is expanding very rapidly. But integrating
automotive software into cars needs to happen in Michigan.
There must be a very strong partnership, because the performance responsibility ultimately lies with the carmaker.
How is Michigan attracting new automotive
investment?
Trade missions have been a very big part of it, and many of
them are personally led by Gov. Snyder. We already have
a strong and mature relationship with European carmakers,
and there is opportunity for growth there. But Michigan’s
biggest opportunities are in Asia, where the auto industry is
emerging. That is one reason why Gov. Snyder has visited
China in each of the past four years. We have a development
office in Shanghai and are planning to open a second one in
the country later this year. In the meantime, I have met with
auto industry and government officials in China three times,
India twice, South Korea twice and Europe twice in the past
12 months. Our efforts are bearing fruit: In the past few years,
Michigan has received more than $1 billion in automotiverelated investments from China alone.
What is the next step for Michigan?
In spring 2015, we are launching a new initiative to tell
Michigan’s story to interested parties overseas. The objective
is simple: to bring
more automotiverelated investment to
the state. We’ll have
more to say about it
as the program rolls out, but the statistics are compelling, and
it’s a story we need to tell.
What are some of those statistics?
Here are a few. Michigan generates 26% of all automotive
patents in the U.S., which is nearly three times as many as
any other state. Over the past four years 78 automotiverelated companies have started business in the state. We’re
home to 63 of North America’s 100 largest automotive suppliers. Michigan also employs 22% of the U.S. auto industry’s
workforce and builds 22% of all vehicles made in the country.
These statistics are powerful evidence of what Michigan
has to offer. Our mission is to make sure car companies and
automotive suppliers around the world are aware of them.
Click HERE to learn more about Michigan’s automotive
initiatives, or visit Michiganbusiness.org/Auto