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 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 automotive-related 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 automotive-related 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 automotive-related 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