MIDLAND, Mich., Jan. 23, 2017 /PRNewswire/ -- The Michigan Chamber of Commerce and research partner Northwood University in Midland, Michigan, released the results of the 2016 Economic Competiveness Study. In the most recent study, Michigan has climbed from number 29 in 2015 to number 25 in 2016 on Northwood University's proprietary State Competitiveness Index.
This marks the fifth year of the exhaustive study into all aspects of Michigan's economy and how the state fares against the other 49 states. Results of the inaugural study, released in 2012, ranked Michigan number 47 based on data from 2000.
"This study offers the most detailed and honest assessment of the state's economy," said economist and study director Timothy Nash, vice president of strategic and corporate alliances and the Director of the McNair Center for the Advancement of Free Enterprise and Entrepreneurship at Northwood University. "The largest single factor influencing the Michigan economy was a stronger general macroeconomic environment in the state over the last five years relative to the other 49 states."
Although Michigan showed signs of slowing in 2015, Nash noted the ranking of 25th is over a period of time, using economic data from 2000 until 2016.
"Clearly, strong progress has been made since our first study in 2012," he said.
The study also reveals Michigan is the among the top-performing Great Lakes region state, with average personal income growth increasing at an average rate of 4.0 percent over the last five years. This rate is better than the Great Lakes region's average of 3.75 percent, and equal to the U.S. average of 4.0 percent. Analysis of cities included in Great Lakes rankings included Chicago, Illinois; Cleveland and Columbus, Ohio; Detroit, Grand Rapids and Lansing, Michigan; Indianapolis, Indiana; and Milwaukee, Wisconsin.
"As data from the report reveals, the overall U.S. economy has not performed as well as its historical norm, especially over the past five years since the study began," said Keith Pretty, co-author, president and CEO of Northwood University. "However, statistics also show that Michigan remains on a growth trajectory. The state's gross domestic product grew at a 2.28 percent rate over the last five years, ranking it as the best growth state in the Great Lakes Region since the study began."
Michigan's comeback continues
In a first-time snapshot of the last five years, Michigan ranks 13th nationally in competitiveness relative to the business tax climate. This factor is critical to job creation, attraction of new businesses and investment in human capital.
The Michigan economy has recovered on a more broad-based level than many suspect, said Bob Thomas, executive director of the Michigan Chamber Foundation.
"Our state has 19 Fortune 500 companies headquartered here. Of those 19, nine are non-automotive related and have been outperforming the general economy on average," Thomas said. "Michigan's relatively strong performance in terms of debt and taxation—in addition to our regulatory environment—play a strong role in our state's ongoing growth trend, as this study reveals each year."
"We are optimistic that Michigan will continue its path of strong recovery and growth to become a top ten state before 2020," he added.
The full study is available via the Northwood University McNair Center for the Advancement of Free Enterprise and Entrepreneurship at http://www.northwood.edu/academics/McNair/projects.aspx.
ABOUT NORTHWOOD UNIVERSITY
Northwood University is committed to the most personal attention to prepare students for success in their careers and in their communities; it promotes critical thinking skills, personal effectiveness, and the importance of ethics, individual freedom and responsibility.
Private, nonprofit, and accredited, Northwood University specializes in managerial and entrepreneurial education at two full-service, residential campuses located in southern Florida and mid-Michigan. Adult Degree Programs are available in seven states with many course delivery options including online. The DeVos Graduate School offers accelerated, evening and weekend programming in Michigan, Texas and Florida. The Alden B. Dow Center for Creativity and Enterprise provides system-wide expertise in family enterprise, entrepreneurship, creativity and innovation, and new business development. International education is offered through study abroad and in Program Centers in Switzerland, China (Changchun and Wuxi), Malaysia and Sri Lanka.
ABOUT MICHIGAN CHAMBER FOUNDATION
The Michigan Chamber Foundation was organized in 1985 as a 501(c)3 charitable foundation to: plan and conduct nonpartisan public education programs; establish and operate a leadership institute to help current and future leaders make a positive impact on Michigan's future; and conduct nonpartisan research and distribute policy studies on key business climate issues in Michigan.
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SOURCE Northwood University