Understanding the Data
In this report, we use a series of common measures to determine the economic strength of states and regions. The measures are divided into two categories: outputs and inputs.
- Output indicators like jobs, income, population and GDP show us the impact of policy decisions. They are the end result of ongoing economic development and policy changes.
- Input indicators measure the factors businesses look at when deciding where to locate.
In this report, Michigan’s input metrics are divided into two categories: cost indicators and value indicators. When deciding whether to locate or expand in a region, job providers evaluate the costs (e.g., taxes, fees, utilities) of doing business in a region relative to the value (e.g., talent, infrastructure) it provides. Ultimately, areas that offer more value for equal or lower cost encourage business growth and attraction, which leads to more jobs, higher incomes and a stronger economy.
Factors like the cost of doing business, the incentives available, the pool of talent, and the necessary infrastructure to support company operations are considered. When these indicators are positive, they greatly influence site selection decisions and, ultimately, lead to stronger outputs.
The correlation between inputs and outputs is important to keep in mind when reading this report. Ultimately, the inputs are the factors over which state leaders have the greatest amount of control. This year’s benchmarking results can offer continuing direction as we collectively evaluate the next crucial decisions for our economy.
With all this in mind, readers of this benchmarking report can see at a glance what progress has been made, where Michigan ranks relative to the rest of the U.S., and which direction we’re moving. The key below shows you how.
Peer and “Top Ten” States
Michigan’s performance on economic output and input metrics is compared to selected traditional and new economy peers and the “Top Ten” states.
Peer States were selected based on traditional and new economy benchmarks.
New Economy Benchmarks
- North Carolina
Top Ten States1Selected based on average rankings on key job, economic, personal income, and population indicators (2005-2015).
- New York
- North Dakota
- South Dakota
1 “Top Ten“ states have the highest average rankings across Per Capita GDP level and growth, Per Capita Personal Income level and growth, Employment level and growth, and Population level and growth. 2014 “Top Ten” states Connecticut and South Dakota were replaced in the 2015 “Top Ten” by Pennsylvania and Washington.