DETROIT, MI– Michigan’s largest auto suppliers, known as Tier-1 suppliers, have announced investments of just under $5 billion and added more than 28,000 jobs from 2009-2013, according to data from the Center for Automotive Research and Michigan Economic Development Corp.’s Automotive Industry Office.
“The automotive industry is driving the comeback in the State of Michigan,” said Nigel Francis, Michigan’s senior automotive adviser, during a phone interview on Wednesday.
The substantial investments come even as the number of suppliers has dropped from 886 to 790 in the Great Lakes State, largely due to bigger suppliers consolidating or purchasing smaller companies during the economic downturn five years ago.
The auto suppliers’ investments are in addition to the automakers’ investments of roughly $14 billion in Michigan during the same four-year time period. Francis said the investments are expected to continue, as suppliers work to keep up with demand and the U.S. automotive industry drives on strong.
Nigel Francis, Automotive Office Michigan Economic Development Corp. senior vice president, speaks April 8 during the 2014 SAE World Congress at Cobo Center in Detroit.
“What a comeback in the automotive industry, and the suppliers enable the OEMs,” he said. “They’re all part of an enormous team, which we’re proud to have in the State of Michigan that is firing on all cylinders and doing great work.”
Francis, a 30-year auto industry veteran, said for the next two to three years, Michigan will be “unbelievably busy” with job creation and investments in the automotive industry.
Through the first half of the year, automakers have sold roughly 8.2 million cars and trucks in the U.S., including an impressive 1.4 million vehicles sold in June. Industry analysts expect sales to top 16 million units this year, which would be the first time since 2007.
Michigan’s Auto Industry Office was created by Gov. Rick Snyder in September to actively support and collaborate with Michigan’s business attraction specialists to help Michigan grow its automotive activity.
