AN INTRODUCTION TO

Dedicated to making Michigan a “Top Ten” state for jobs, personal income and a healthy economy

Economic Impact Report 2020

Founded in 2009, Business Leaders for Michigan was created by uniting the top executives from some of the largestemployers statewide to form Michigan’s first business roundtable aligned around onecommon mission – making us a “Top Ten” state for jobs, personal income and a healthyeconomy. Our organization provides a forum for the state’s top business and educationthinkers to set in motion a bold plan to overcome challenges and ascend to Top Ten status.

Business Leaders for Michigan’s strategy is defined by Michigan’s Road to Top Ten, a data-based strategic plan to grow the state’s economy, ensuring the benefits of that growthextend to all residents and communities.

Our members lead the state’s biggest job providers and universities, and yet our impact isfar greater than the more than 465,000 people who are employed directly by theseorganizations. This report outlines the findings of an independent assessment conductedby Anderson Economic Group that defines the scale of our economic impact on the entirestate of Michigan.

BLM’s member companies and universities:

• Employ residents in almost every county of the state

• Generate more than $1 trillion in annual revenue

• Educate more than 140,000 college students

• Drive nearly 40 percent of the state’s private sector economy

• Spend $42 billion on wages and benefits, which is 59 percent higher than the averageprivate sector compensation in Michigan

• Contribute more than $1 billion in income tax annually – nearly 11 percent of stateincome tax revenue

• Added more than 16,000 jobs in Michigan from 2017-2018

The Board of BLM is comprised of Michiganders who live here, work here, raise familieshere and support other local businesses. They are catalysts for growth in almost all ofour communities, large and small. They are the drivers that power the economic engineof Michigan.

10 YEARS LEADING MICHIGAN TO THE TOP TEN

1

Who We Are

Business Leaders for Michigan’s nearly 100 membersrepresent the largest businesses and universities in the state. They are primarily

homegrown, many are family-owned and in many cases, they have been part of the

state’s economic landscape for generations. Together, these businesses drive nearly

40 percent of the state’s economy, generate more than $1 trillion in annual revenue and

educate nearly half of all Michigan public university students.

Our private sector employers are diversified across the economy, from construction

and utilities to manufacturing and banking. The majority of jobs among BLM member

companies are concentrated in manufacturing, education, and trade & transportation.

The universities represented on BLM’s Board enroll more than 140,000 students –

48% of the total enrollment in Michigan higher ed institutions.

BLM Companies by Sector

BLM Jobs by Sector

Manufacturing 41%

Financial Activities 17%

Professional & Business Services 15%

Trade & Transportation 9%

Utilities & Construction 7%

Hospitality & Other Services 5%

Education 4%

Information 2%

Manufacturing 40%

Financial Activities 10%

Professional & Business Services 3%

Trade & Transportation 23%

Utilities & Construction 5%

Hospitality & Other Services 3%

Education 15%

Information 1%

2

...drive nearly

40%of the state’s economy

...serve nearly

1/2of all Michiganpublic university students

...generate more than1trillion

in annualrevenue

BLM member companies and universities...

GERARD M. ANDERSON CHAIR OF THE BOARDExecutive Chairman DTE Energy

DARYL M. ADAMSPresident & Chief Executive OfficerSpartan Motors, Inc.

RICHARD E. ALLISON, JR.Chief Executive OfficerDomino’s

KEITH J. ALLMANPresident & Chief Executive OfficerMasco Corporation

G. MARK ALYEAPresident EmeritusAlro Steel Corporation

JOSEPH B. ANDERSON, JR.Chairman & Chief Executive OfficerTAG Holdings, LLC

LINDA H. APSEYPresident & Chief Executive OfficerITC Holdings Corp.

MARY T. BARRAChairman & Chief Executive OfficerGeneral Motors Company

MARK BASSETTChairman & Chief Executive OfficerHemlock Semiconductor Group

ALBERT M. BERRIZ Managing Member, Chief Executive Officer, Board Member & Co-OwnerMcKinley, Inc.

MARK J. BISSELLChairman & Chief Executive OfficerBISSELL Inc.

JOHN C. CARTERRegion Manager, Michigan Middle MarketChase

TIMOTHY P. COLLINSSenior Vice President, Heartland RegionComcast

GREGORY J. CRABBPresident & Chief Executive OfficerAmerisure Insurance Companies

MATTHEW P. CULLENChief Executive Officer, Bedrock;Principal, Rock Ventures & Chairman,JACK Entertainment

MARY CULLERChief of Staff, Office of the Executive ChairmanFord Motor Company

WALTER P. CZARNECKIExecutive Vice President & DirectorPenske Corporation

KURT L. DARROWChairman, President & Chief Executive Officer La-Z-Boy Incorporated

DAVID C. DAUCH Chairman & Chief Executive OfficerAmerican Axle & Manufacturing

MARK A. DAVIDOFFChief Executive OfficerThe Fisher GroupEmeritus Member

RICHARD L. DeVOREExecutive Vice President & Regional President, Detroit & Southeast MichiganThe PNC Financial Services Group

DOUG DeVOSCo-Chairman Amway

ALESSANDRO P. DiNELLOPresident & Chief Executive OfficerFlagstar Bank

STEFAN O. DOERRSenior Vice President, Monomers Division,North AmericaBASF Corporation

MATTHEW B. ELLIOTT Michigan Market President, Midwest Region Executive, Business BankingBank of America

BARRY ENGLEExecutive Vice President & President,The AmericasGeneral Motors Company

PHIL EYLERPresident & Chief Executive OfficerGentherm

PATRICK FINNSenior Partner, DetroitMcKinsey & Company

JIM FITTERLINGChief Executive Officer Dow

BILL FORDExecutive ChairmanFord Motor Company

TINA FREESE DECKERPresident & Chief Executive OfficerSpectrum Health

DAN GILBERTFounder & ChairmanQuicken Loans & Rock Ventures LLC

DAVID F. GIRODATRegional President Fifth Third Bank-Eastern Michigan

DAN GORDONChairman of the BoardGordon Food Service, Inc.

RONALD E. HALL President & Chief Executive OfficerBridgewater Interiors, LLC

MICHAEL R. HALLER, P.E. Chief Executive OfficerWalbridge

MATTHEW R. HAWORTHChairman Haworth, Inc.

DENNIS HOEGVice President & North America Chief Operations OfficerNexteer Automotive

CHRISTOPHER ILITCH President & Chief Executive OfficerIlitch Holdings, Inc.

MICHAEL J. JANDERNOAFounder 42 North PartnersEmeritus Member

MILES E. JONESChairman of the BoardDawn Food Products, Inc.

GORAN JURKOVICChief Executive OfficerDelta Dental of Michigan, Ohio & Indiana

HANS-WERNER KAAS Senior Partner, DetroitMcKinsey & CompanyEmeritus Member

ALAN JAY KAUFMANChairman, President & Chief Executive OfficerH.W. Kaufman Group

JAMES P. KEANEPresident & Chief Executive OfficerSteelcase Inc.

JOHN C. KENNEDYPresident & Chief Executive OfficerAutocam Medical

MURRAY S. KESSLERPresident & Chief Executive OfficerPerrigo Company plc

RICK KEYESPresident & Chief Executive OfficerMeijer, Inc.

BUSINESS LEADERS FOR MICHIGAN BOARD OF DIRECTORS - 2020

4

STEPHEN M. KIRCHERPresident & Chief Executive OfficerBoyne Resorts

WILLIAM L. KOZYRAPresident & Chief Executive Officer TI Automotive

BLAKE W. KRUEGERChairman of the Board,Chief Executive Officer & PresidentWolverine Worldwide, Inc.

BRIAN K. LARCHEChairman, Chief Executive Officer & PresidentEngineered Machined Products, Inc.

WRIGHT L. LASSITER IIIPresident & Chief Executive OfficerHenry Ford Health System

KEVIN A. LOBOChairman & Chief Executive OfficerStryker Corporation

DANIEL J. LOEPP President & Chief Executive OfficerBlue Cross Blue Shield of Michigan

EVAN D. LYALLChief Executive OfficerRoush Enterprises, Inc

BEN C. MAIBACH III Vice Chairman & Chief Community Officer

Barton Malow Company

RICHARD A. MANOOGIAN Chairman EmeritusMasco Corporation

FLORINE MARKPresident & Chief Executive OfficerThe Weight Watchers Group, Inc.

CHARLES G. McCLUREManaging PartnerMichigan Capital AdvisorsEmeritus Member

HANK MEIJERExecutive ChairmanMeijer, Inc.

FREDERICK K. MINTURNPresident & Chief Executive OfficerMSX International

JAMES B. NICHOLSONChairmanPVS Chemicals, Inc.

JON NOBISChief Executive OfficerTwo Men And A Truck/International, Inc.

D. JEFFREY NOELCorporate Vice President, Communications & Public AffairsWhirlpool Corporation

JERRY NORCIAPresident & Chief Executive OfficerDTE Energy

ANDI OWEN President & Chief Executive OfficerHerman Miller, Inc.

WILLIAM U. PARFETChairman & Chief Executive OfficerNorthwood GroupEmeritus Member

CYNTHIA J. PASKY Founder, President & Chief Executive OfficerStrategic Staffing Solutions

ROGER S. PENSKE ChairmanPenske Corporation

JIM PETERSExecutive Vice President & Chief Financial OfficerWhirlpool Corporation

WILLIAM F. PICKARD, Ph.D. Chairman Global Automotive Alliance, LLC

SANDRA E. PIERCE Chairman-Huntington Bank Michigan,Private Client Group & Regional Banking DirectorHuntington Bank

PATRICIA K. POPPEPresident & Chief Executive OfficerCMS Energy & Consumers Energy

MICHAEL T. RITCHIE President, Comerica Bank-Michigan MarketComerica Bank

DOUG ROTHWELLPresident & Chief Executive OfficerBusiness Leaders for Michigan

ANDRA M. RUSHFounder, Chair & Chief Executive OfficerRush Group

JAMES R. SCAPAFounder, Chairman & Chief Executive OfficerAltair

MARK S. SCHLISSELPresidentUniversity of Michigan

RAYMOND E. SCOTTPresident & Chief Executive OfficerLear Corporation

SAMUEL L. STANLEY, JR., M.D. PresidentMichigan State University

SPENCER S. STILESPresident, Global InstrumentsStryker Corporation

ROBERT S. TAUBMAN Chairman, President & Chief Executive Officer Taubman Centers, Inc.

RAMESH D. TELANG US Automotive Leader, Detroit Managing PartnerPricewaterhouseCoopers

JAMES J. TOBINChief Marketing Officer & President, Magna AsiaMagna International Inc.

GARY TORGOWExecutive ChairmanTCF Financial Corporation

HOWARD UNGERLEIDERPresident & Chief Financial OfficerDow

SAMUEL VALENTI III Chairman of the BoardTriMas Corporation

STEPHEN A. VAN ANDELChairmanAmway

RON VAUPELPresident & Chief Executive OfficerGuardian Industries

S. EVAN WEINERPresident & Chief Executive OfficerEdw. C. Levy Co.

THOMAS G. WELCH, JR.Regional President Fifth Third Bank-Western Michigan

FRANKLIN C. WHEATLAKEChairmanUtility Supply and Construction Company

M. ROY WILSONPresidentWayne State University

WILLIAM C. YOUNG Chairman, President & Chief Executive OfficerPlastipak Holdings, Inc.

Deloitte LLP

Kelly Services, Inc.

SpartanNash

Current members as of January 2020

5

What We Do

Developing strategies and raising awareness of the state’s challenges that need innovative solutions comprises our day-to-day

work. We also advocate for public policy and champion new initiatives to keep the

state’s economy growing at a steady pace.

How We Do It

Every two years we outline a strategic framework for moving

forward, which is completely fact-based and driven by benchmarking our state’s success

indicators against our peers and competitors. Michigan’s Road to Top Ten targets

achievable goals and sets action steps our state’s leaders can use to strengthen

Michigan’s competitiveness and keep us on the path to sustainable prosperity.

Why We Do It

If we were a Top Ten state, 26,000 more residents would be working,

and the personal income of each Michigan resident would be boosted by as much

as $13,000.

What We Don’t Do

We don’t approach challenges from a purely political perspective. Our advocacy and

initiatives are based completely on the data we research and review. We don’t single

out certain industries or companies to benefit from any public policy decisions, nor

do we take stands on issues that won't help us ascend to Top Ten status. Those who

serve on our Board of Directors do so because they strongly believe Michigan can be

a Top Ten state, and that all residents will benefit from attaining that status.

6

If Michigan were a “Top Ten” state, we would have:

26,000 more people working

$13,000 more income per person

$15,000 more GDP per person

$100,000 –

$90,000 –

$80,000 –

$70,000 –

$60,000 –

$50,000 –

$40,000 –

$30,000 –

$20,000 –

$10,000 –

Business Leadersfor Michigan

MichiganPrivate Sector

United StatesPrivate Sector

$89,615

$56,425

$69,923

Jobs at BLM Companies

Business Leaders for Michigan member companies employ more than 465,000

people in Michigan, equivalent to about 11 percent of the state’s private sector

workforce. Our companies employ residents in almost every county in the state.

The estimated average annual wage for employees at BLM member companies is

nearly $74,000. These employees also receive more than $16,000 annually in

benefits, for total average compensation of $90,000 per employee. This is nearly

60 percent higher than the average compensation of private sector employees in

Michigan and 28 percent higher than the nationwide average. Wages paid to BLM

member employees make up 16 percent of all private sector wages and salaries

in the state, while benefits paid to the same make up 26 percent of all benefits

paid to private sector employees.

8

Average AnnualCompensation of

BLM Member Company Employees

Iron

Delta

Luce

Kent

MarquetteAlger Chippewa

Huron

Gogebic

Sanilac

BaragaOntonagon

Ionia

Lake

Bay

Allegan

Schoolcraft

OaklandBarry

Clare

Houghton

Mackinac

Iosco

Tuscola

Alcona

Cass

Eaton

Lapeer

Saginaw

Newaygo

Menominee

St. Clair

WayneJacksonCalhoun

Alpena

Gratiot

Lenawee

ClintonOttawa

Antrim

Berrien

Dickinson

Mason

Ingham

Isabella

Montcalm

Oscoda

Branch Monroe

Otsego

Hillsdale

Genesee

Osceola

Oceana

Wexford

CheboyganEmmet

Mecosta Midland

Ogemaw

Gladwin

Kalkaska Crawford

Washtenaw

Manistee

Van Buren

Livingston

Macomb

Presque Isle

Missaukee

Arenac

Kalamazoo

Muskegon

Benzie

St. Joseph

Roscommon

Leelanau

Charlevoix

Shiawassee

Montmorency

GrandTraverse

Keweenaw

Chippewa

Charlevoix

9

Number of Employees at BLM Companies by County

Number of Employees in 2018

0

1 - 1,000

1,001 - 2,500

2,501 - 5,000

5,001 - 10,000

10,001 - 85,000

Economic Impact of BLM Companies

The economic impact of BLM member organizations

extends beyond paychecks. As they hire Michigan

workers and spend money at other businesses, they

support many industries throughout the state. Overall,

we estimate that $71 billion of what Michiganders

earned last year is attributable to our members -

43 percent of total Michigan earnings.

Other Business Activity

In 2018, BLM companies spent $82 billion in Michigan purchasing goods and services

from suppliers, utilities and other producers. Their non-

payroll expenditures were equivalent to 17 percent of the

state’s total economic activity, as measured by gross state

product.

Also in 2018, BLM member employees paid over a billion

dollars in state income taxes on compensation received.

This represents 11 percent of total state income tax paid in

that year. Member companies had more than $1 trillion in

total revenue in 2018.

$71billionof Michiganpay & benefits

...support

BLM membercompanies...

$82billionin Michigan for goods and services

...spend

...pay

11%of total stateincome tax

10

We All Have a Role in Accelerating Michigan to Top Ten status

BLM works diligently to involve others in Michigan – small businesses,

policymakers, grassroots organizations, chambers of commerce and taxpayers –

to play a role in advocating for policies that sustain our future growth. Our outreach

efforts include educating the public through regional summits, policy events and

digital media targeting. We also operate two political action committees to support

state-level candidates who help work on policy issues like those outlined in

Michigan’s Road to Top Ten.

Continuing Our Work

Business Leaders for Michigan was formed in 2009, when wewere in the lowest depths of the Great Recession. We started with the Michigan

Turnaround Plan, and today we live in a state completely unrecognizable from

where we were then. And yet there is still work to be done. We exist outside the

parameters of election cycles, term limits and even economic expansions and

downturns. Regardless of what happens in our state Capitol, we remain committed

to building a stronger Michigan, adhering to the action items in our plan, and

accelerating our state to Top Ten status. Our state has changed rapidly since our

inception, but our commitment to it never will.

10 YEARS LEADING MICHIGAN TO THE TOP TEN

11

Methodology

Anderson Economic Group, LLC (AEG) is a boutique research and consulting firm

with offices in Chicago, Illinois and East Lansing, Michigan.

The data presented in this report come from several sources. All BLM member

organizations were sent a detailed survey, requesting information on industry,

revenue, employment, wages, benefits and non-payroll expenses. AEG estimated

missing data based on industry averages, annual reports of publicly-traded

companies, responses of companies with similar characteristics, and survey

responses from previous years.

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Learn more about Business Leaders for Michigan

at businessleadersformichigan.com.

600 Renaissance Center, Suite 1760 • Detroit, MI 48243-1802 • 313.259.5400 • BusinessLeadersforMichigan.com