Mobility Industry’s Economic Contribution to Michigan

March 15, 2021

In 2019, Public Sector Consultants (PSC) completed an economic contribution study of Michigan’s automotive industry for MICHauto based on 2017 data. The findings were not surprising. Michigan’s automotive industry is significant, directly employing hundreds of thousands of individuals statewide.

MICHauto recognizes that the automotive sector is just one critical component of an evolving, broader mobility sector in Michigan and the U.S. The mobility industry is defined as the production and distribution of goods and provision of services that support any movement of people and products. There has been a shift in public- and private-sector emphasis on prioritizing the sustainable growth of mobility, which includes the automotive sector. Mobility solutions are important to Michigan because they offer the potential to solve the vexing problems of roadway congestion, emissions, and safety while generating new jobs and advancing economic growth. In 2020, engaged PSC to estimate the economic contributions of Michigan’s mobility industry to the state.

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About Our Analysis

PSC worked with MICHauto and industry experts to define the mobility industry and gathered data on specific mobility sectors. PSC then conducted an analysis that quantified the number of jobs, labor income, and overall economic activity that the mobility industry directly and indirectly supports in Michigan. The analysis also provided estimates of the taxes collected by the local and state level as a result of this activity. Our report found that in 2019, Michigan’s mobility industry:

Directly employed nearly 570,000 workers statewide, which supported an additional 526,000 indirect jobs, a total of almost 1.1 million jobs, or almost 20 percent of total Michigan employment.
Directly and indirectly paid $71 billion in compensation (salary and benefits for payroll employees and the income of self-employed and proprietors), for an average compensation of $65,000.
Directly and indirectly contributed $125 billion in value-added to the state’s economy, which is approximately 23 percent of Michigan’s gross state product (GSP).
Directly and indirectly contributed $304 billion in gross economic output (the sum of value-added and total intermediate inputs), which is 28 percent of Michigan’s gross economic output.
Directly and indirectly generated approximately more than $9 billion in state and local taxes.