50 in 50: Michigan

50 in 50: Michigan

50 states in 50 weeks: U.S. states economic and infrastructure highlights.

Key Economic Indicators

GDP: $473.3 billion

GDP 5-year compounded annual growth rate (CAGR) (2017-2021): 0.8% (U.S.: 1.6%)

GDP per capita: $47,933 (U.S.: $58,154)

Population: 10.1 million

Population 5-year CAGR (2017-2021): 0.2% (U.S.: 0.5%)

Unemployment: 4.1% (U.S.: 3.9%)

Economic outlook ranking: #17 out of 50

Fiscal health ranking: #35 out of 50

Overall tax climate ranking: #12 out of 50

Key Sectors and Metro Areas

Top five industry sectors by 2021 GDP:

Top three industry sectors by GDP 5-year CAGR (2017-2021):

Top three metro areas by GDP:

• Detroit-Warren-Dearborn
• Grand Rapids-Kentwood
• Lansing-East Lansing

Top three metro areas by population percentage increase in 2021 vs. 2020:

• Muskegon
• Grand Rapids-Kentwood
• Monroe

Infrastructure Highlights

Infrastructure: ASCE Infrastructure Grade (2018): D+

In Michigan, drinking water, stormwater, roads, and school infrastructure received the lowest grades (‘D’ or worse) on the 2018 ASCE report. There are significant funding gaps in many categories of infrastructure in Michigan, as it is the case in various other states. While the Great Lakes State welcomes the incremental funding and new programs, much more is needed to get certain systems in adequate shape. The recent PFAS issues in cities like Flint and Benton Harbor has raised concerns among governments throughout the country and has mobilized engineering and environmental firms to step up to provide sustainable solutions to the problem.

According to the White House, approximately $213 million was made available in fiscal year 2022 to provide clean and safe water across the state. Additionally, Michigan has been allocated $1.4 billion for highways and $121 million for bridges. The funds will allow the state to continue making improvements to over 7,300 miles of highway and 1,200 bridges in poor condition. Over the next five years, Michigan’s Bipartisan Infrastructure Law funds will address the following categories of projects (additional funds may be deployed as federal grants get awarded to states):

Construction spending (Value of Construction Put in Place – CPiP):

• Private Nonresidential 2021 CPiP: $6.5 billion; -3.2% 5-year CAGR (2017-2021), below overall U.S. CAGR of 1.4%
• State & Local 2021 CPiP: $8.2 billion; 9.8% 5-year CAGR (2017-2021), above overall U.S. CAGR of 4.0%

AE Industry

ENR 500 firm headquarters (2022): 11

M&A activity since 2018:

• 24 deals with buyers from Michigan
• 24 deals with sellers from Michigan

For customized market research, contact Rafael Barbosa at [email protected] or 972.266.4955. Connect with him on LinkedIn.