THE BEST LOCATION
Everyone knows that Michigan is tightly surrounded by the Great Lakes, while southeastern Michigan (Greater Detroit area) and Canada are adjacent to each other. The geographic location and strong transportation infrastructure of Michigan connect enterprises with multiple states, and also provide an extremely convenient way for enterprises to enter the U.S. and Canadian markets at the same time.
From Michigan, half of the total population of the United States and Canada can be reached within a 10-hour drive. Detroit is close to the Canadian border, where it is the largest seaport in Michigan and the busiest northern border crossing in the United States. At present, the International Border Ambassador Bridge between Detroit and Canada is the most active border passage in North America, and the annual trade volume between the United States and Canada has exceeded 700 billion U.S. dollars. In 2024, Michigan plans to further expand cross-border trade with the newly built Gordie Howe International Bridge.
In addition, Michigan has 13 major interstate highways, 26 freight railroads (including 4 first-class railroads), 7 freight ports and 18 commercial airports. The largest international airport in the state is the leading Detroit Metropolitan Airport in the country, offering more than 140 direct flights to four continents. From Detroit International Airport, there are two non-stop Delta flights to China every day, to Beijing and Shanghai respectively.
THREE HIGH TALENTS-HIGH DENSITY / HIGH QUALITY / COST-EFFECTIVE
For decades, Michigan talents have designed and innovated countless new solutions for companies all over the world. Today, this innovative spirit is still very strong. The Michigan area is one of the world’s top R&D centers. In addition to 375 automotive R&D centers, Michigan has more than 2,000 large and small engineering R&D and testing bases. The investment in automotive research and development in one state of Michigan accounts for 73% of the entire United States. As a result, Michigan has the most concentrated engineering talents and the most commercial and industrial designers in the United States.
Michigan also has a strong advantage in terms of higher education talents. Nationally well-known universities include the University of Michigan, Michigan State University, Wayne State University and so on. Thanks to the contributions of these universities and the original industrial foundation, the density and number of electrical, mechanical, and industrial engineers in Michigan far exceed those of other states. In addition, Michigan has more than 2.7 million skilled labor, and the labor cost is more than 30% lower than the cost of talent in San Francisco and New York. Isn’t this good for corporate recruitment?
LOW COST OPERATION
Through different government incentive policies, Michigan can provide personalized help for companies that settle, relocate or expand in the state.
The average non-residential property tax rate in Michigan in 2017 was $52.65 million, or $52.65 for every $1,000 assessed property, of which real property and personal property were taxed at 50% of the current market value. In order to make Michigan a more attractive place for business investment and development, the state of Michigan has gradually abolished the personal property tax levied on most businesses since 2014. Companies that apply for exemption from personal property tax will receive a statewide special assessment, ranging from 900,000 to 2.4 million, to fund basic services collected by local governments. In addition, the Michigan state-level corporate income tax rate is 6%, and the personal income tax rate is 4.25%. Due to the level of fair and efficient tax rate setting, coupled with the state government’s reduction or exemption of industrial personal property taxes, Michigan’s tax policy in industrially developed areas is very attractive, and it ranks in the top 10 in terms of new and expanded facilities. According to the Tax Foundation’s “2021 State Business Tax Climate Index” report, Michigan ranks among the top four in terms of overall tax incentives among the states with a population of more than 7 million.
COST-EFFECTIVE, HIGH-QUALITY LIFE
In addition to relatively low business costs, Michigan is also a very livable place. Some friends may have heard of the location of the University of Michigan-Ann Arbor-Ann Arbor is rated as the most educated city in the United States (2019 U.S. most educated city: Ann Arbor successfully defended the title), and the city in West Michigan Grand Rapids was rated by the Wall Street Post as the second best place to live in the United States. The natural environment of the state surrounded by the Great Lakes is even harder to say. There are more than 10,000 lakes in the whole state, large and small parks are everywhere, and golf courses are countless. The autumn scenery of Michigan is a scenery that many friends who have been to Michigan have been unforgettable for a long time.
According to a 2020 statistical survey conducted by the New York Times Community and Economic Research Council, the ranks of living cost in Michigan is among the top four in the United States, especially it’s compared with the following states, the cost of living is much lower.
Thanks to these superior living conditions and high cost performance, Michigan is attracting many young people to stay here and work hard for their careers. According to the comparison results of MEDC’s cost of living calculator, if your annual salary in Michigan is $71k, then if you want to maintain the same quality of life and cost, you need to earn more than $100k in California to be enough. Especially since the outbreak last year, everyone seems to have suddenly discovered that remote work is not only as efficient as commuting to the office for a few hours a day, but it also frees up more time at home to spend time with family and children and take care of them. Yards, dog walks, and other self-entertainment projects. At this time, the office environment at home and the income tax caused by the location of the office were immediately given a re-examination and thinking. This makes many people realize that if they can do a job with a salary that is similar to that of New York, California, and their cost of living can be reduced by 30%-40% or even more in terms of housing prices, taxes, etc. Why not?