The Michigan economy leads in information technology, life sciences, and advanced manufacturing. Michigan is commonly known for its auto industry. Michigan ranks fourth nationally in high-tech employment with 568,000 high-tech workers, including 70,000 in the automotive industry. Michigan typically ranks second or third in overall research and development expenditures in the United States. Its research and development, which includes automotive, comprises a higher percentage of the state's overall gross domestic product than for any other U.S. state. The state is an important source of engineering job opportunities. The domestic auto industry accounts directly and indirectly for one of every ten jobs in the U.S. Some of the major industries/products/services include automobiles, cereal products, information technology, aerospace, military equipment, copper, iron, and furniture. Michigan is the third leading grower of Christmas trees with 60,520 acres (245 km�) of land dedicated to Christmas tree farming. The beverage Vernors was invented in Michigan in 1866, sharing the title of oldest soft drink with Hires Root Beer. Faygo was founded in Detroit on November 4, 1907.

Michigan has experienced economic difficulties brought on by volatile stock market disruptions following the September 11, 2001 attacks. This caused a pension and benefit fund crisis for many American companies, including General Motors, Ford, and Chrysler. The American auto companies are proving to be more resilient than other affected industries as each company implements its respective turnaround plans (In 2007, General Motors reported a $9.6 billion surplus in its pension fund). Despite problems, Michigan ranked second nationally in new corporate facilities and expansions in 2004. From 1997 to 2004, Michigan was listed as the only state to top the 10,000 mark for the number of major new developments, led by Metro Detroit. Manufacturing in Michigan grew 6.6% from 2001 to 2006. In 2007, General Motors, Ford, and Chrysler reached agreements with the United Auto Workers Union to transfer the liabilities for their respective health care and benefit funds to a 501(c)(9) Voluntary Employee Beneficiary Association (VEBA) raising prospects for corporate turnaround plans.

Even though Michigan is known as the birthplace of the automobile industry, its diverse economy leads in many other areas. Michigan has a booming biotechnology and life sciences corridor. As leading research institutions, the University of Michigan, Michigan State University, and Wayne State University are important partners in the state's economy. Michigan's workforce is well-educated and highly skilled, making it attractive to companies. Michigan's infrastructure gives it a competitive edge; Michigan has 38 deep water ports.

Detroit Metropolitan Airport is one of the nation's most recently expanded and modernized airports with six major runways, and large aircraft maintenance facilities capable of servicing and repairing a Boeing 747. Michigan's schools and colleges rank among the nation's best. The state has maintained its early commitment to public education.

The Bureau of Economic Analysis estimated Michigan's 2004 gross state product at $372 billion. Per capita personal income in 2003 was $31,178 and ranked twentieth in the nation.

Taxation

Michigan's top tax bracket on personal income of 4.35% is among the lowest in the nation. Some cities impose additional income taxes. Michigan's state sales tax is six percent.Property taxes are assessed on the local, not state, level. In 2007, Michigan repealed its Single Business Tax (SBT) and replaced it with a Michigan Business Tax (MBT) in order to stimulate job growth by reducing taxes for seventy percent of the businesses in the state. According to the Bureau of Economic Analysis, recent growth in Michigan is 0.1%.

Agriculture

Michigan is a leading grower of fruit, including blueberries, cherries, apples, grapes, and peaches. These fruits are mainly grown in West Michigan, and some are grown in rural areas of Southeast Michigan. Michigan produces wines and a multitude of food products. Michigan is home to very fertile land in the Flint/Tri-Cities and Thumb areas. Products grown there are sugar beets, navy beans, and soy beans. Michigan's largest sugar refiner, Michigan Sugar Company, is the largest east of the Mississippi River and the fourth largest in the nation. Michigan Sugar brand names are Pioneer Sugar and the newly incorporated Big Chief Sugar. Potatoes are grown in Northern Michigan, and corn is dominant in Mid-Michigan.

Tourism

Michigan has a thriving tourist industry. Visitors spend $17.5 billion per year in the state, supporting 193,000 tourism jobs. Michigan's tourism website ranks among the busiest in the nation. Destinations draw vacationers, hunters, and nature enthusiasts from across the United States and Canada. Michigan is fifty percent forest land, much of it quite remote. Both the forests and thousands of miles of beaches are top attractions. Tourists also flock to many of the museums, particularly those in Metro Detroit, including The Henry Ford, the Detroit Institute of Arts, the Detroit Historical Museum, the Charles H. Wright Museum of African American History, and the Arab American National Museum. The Metro Detroit area offers four major casinos, MGM Grand Detroit, Greektown, Motor City, and Casino Windsor; moreover, Detroit is the largest city to offer casino gambling.

Hunting is a major component of Michigan's economy. Michigan ranks first in the nation in licensed hunters (over one million) who contribute $2 billion annually to its economy. Over three-quarters of a million hunters participate in white-tailed deer season alone. Many school districts in rural areas of Michigan cancel school on the opening day of rifle season, because of both safety and attendance concerns.

Michigan's Department of Natural Resources manages the largest dedicated state forest system in the nation. The forest products industry and recreational users contribute $12 billion and 200,000 associated jobs annually to the state's economy. Michigan has more than 90 native species of trees, more than all of Europe combined.

The state has numerous historical markers, which can themselves become the center of a tour.

With its position in relation to the Great Lakes and the countless ships that have foundered over the many years in which they have been used as a transport route for people and bulk cargo, Michigan is a world-class SCUBA diving destination. The Michigan Underwater Preserves are 11 underwater areas where wrecks are protected for the benefit of sport divers.

State Index | Information | Fast Facts | Geography | Government | Economy | History