EconomySee also: Economy of metropolitan Detroit
The Bureau of Economic Analysis estimated Michigan's 2004 gross state product at $372 billion. Per capita personal income in 2003 was $31,178 and ranked twentieth in the nation. In May 2009, Michigan's unemployment rate rose to 14.1%, the highest in the nation during the recession.
Some of the major industries/products/services include automobiles, cereal products, pizza, information technology, aerospace, military equipment, copper, iron, and furniture. Michigan is the third leading grower of Christmas trees with 60,520 acres (24,492 ha) of land dedicated to Christmas tree farming. The beverage Vernors was invented in Michigan in 1866, sharing the title of oldest soft drink with Hires Root Beer. Faygo was founded in Detroit on November 4, 1907. Two of the top four pizza chains were founded in Michigan and are still headquartered there: Domino's Pizza by Tom Monaghan and Little Caesars Pizza by Mike Ilitch.
Michigan has experienced economic difficulties brought on by volatile stock market disruptions following the September 11, 2001 attacks. This caused a pension and benefit fund crisis for many American companies, including General Motors, Ford, and Chrysler. Since the early 2000s recession and the September 11, 2001 attacks, GM, Ford, and Chrysler have struggled to overcome the benefit funds crisis which followed an ensuing volatile stock market which had caused a severe underfunding condition in the respective U.S. pension and benefit funds (OPEB). Although manufacturing in the state grew 6.6% from 2001 to 2006, the high speculative price of oil became a factor for the U.S. auto industry during the economic crisis of 2008 impacting industry revenues. During this economic crisis, President George W. Bush extended loans from the Troubled Assets Relief Program (TARP) funds in order to help the GM and Chrysler bridge the recession. In January 2009, President Barack Obama formed an automotive task force in order to help the industry recover and achieve renewed prosperity for the region. With retiree health care costs a significant issue, General Motors, Ford, and Chrysler reached agreements with the United Auto Workers Union to transfer the liabilities for their respective health care and benefit funds to a 501(c)(9) Voluntary Employee Beneficiary Association (VEBA). In spite of these efforts, the severity of the recession required Detroit's automakers to take additional steps to restructure, including idling many plants. With the U.S. Treasury extending the necessary debtor in possession financing, Chrysler and GM filled separate 'pre-packaged' Chapter 11 restructurings in May and June 2009 respectively.
Michigan ranks fourth nationally in high tech employment with 568,000 high tech workers, which includes 70,000 in the automotive industry. Michigan typically ranks third or fourth in overall Research & development (R&D) expenditures in the United States. Its research and development, which includes automotive, comprises a higher percentage of the state's overall gross domestic product than for any other U.S. state. The state is an important source of engineering job opportunities. The domestic auto industry accounts directly and indirectly for one of every ten jobs in the U.S. Michigan ranked second nationally in new corporate facilities and expansions in 2004. From 1997 to 2004, Michigan was listed as the only state to top the 10,000 mark for the number of major new developments; however, the effects of the late 2000s recession have slowed the state's economy. In 2008, Michigan ranked third in a survey among the states for luring new business which measured capital investment and new job creation per one million population. In August 2009, Michigan and Detroit's auto industry received $1.36 B in grants from the U.S. Department of Energy for the manufacture of electric vehicle technologies which is expected to generate 6,800 immediate jobs and employ 40,000 in the state by 2020.
As leading research institutions, the University of Michigan, Michigan State University, Western Michigan University, and Wayne State University are important partners in the state's economy. Michigan's workforce is well-educated and highly skilled, making it attractive to companies. Michigan's infrastructure gives it a competitive edge; Michigan has 38 deep water ports. In 2007, Bank of America announced that it would commit $25 billion to community development in Michigan following its acquisition of LaSalle Bank in Troy.
Detroit Metropolitan Airport is one of the nation's most recently expanded and modernized airports with six major runways, and large aircraft maintenance facilities capable of servicing and repairing a Boeing 747. Michigan's schools and colleges rank among the nation's best. The state has maintained its early commitment to public education.
Read more about this topic: Lower Peninsula Of Michigan
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Famous quotes containing the word economy:
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