Employers rely on a standard set of indicators when deciding where to create new jobs:
- Cost indicators like taxes, fees, and energy prices allow site selectors to determine the overall cost associated with locating in a particular region.
- Value indicators such as talent and infrastructure help site selectors know what assets a region can offer for the business costs to be paid.
Locations that offer more value for equal or lower costs are more attractive to businesses.
States that are not competitive on costs are not seriously considered by site selectors. When cost indicators are favorable, however, it is value indicators that are capable of helping keep a location competitive. When comparing two or more regions with similar cost structures, the region with better infrastructure, talent and innovation capabilities will often win.
Ultimately, business site selection decisions have a major impact on job creation, income levels, and economic productivity. That is why Michigan must monitor its own cost/value input indicators to ensure the best possible balance for business attraction, retention and expansion.
Progress to Date
Michigan continued to do well during 2017 when it comes to employer affordability. As competing states and nations continue to lower their own costs, however, Michigan must work to hone and retain its competitive edge where costs are concerned.