A new Michigan based initiative has been set in place to pour $12 million into manufacturing companies throughout Michigan. This plan, however, is not as similar to the federal bailout plan as one may initially expect. Although the money will go to companies in need of funding, the primary factors and qualifications in order to be considered for state funding include those who have been hit with difficult credit situations and are experiencing difficult cash flow shortages. Lack of cash flow may be of concern for many industries throughout Michigan, but the plan to support certain companies will only help those who can offer eventual employment in mass amounts when funding is received.
With an expected 4,000 new jobs to come from Michigan Economic Development Corporation's (MEDC) Strategic Fund board, positive implications of the $12 million investment far exceed the monetary burden spent by the state. More than $100 million in new investment opportunities are expected to result from the newly created Michigan Supplier Diversification Fund. Energy Components Group out of St. Clair will invest more than $20 million over five years to expand its manufacturing capabilities, all while creating 513 new jobs. The Michigan Economic Growth Authority (MEGA) will offer a tax credit of $2 million over a span of seven years in order to keep the company, and the new jobs, in Michigan. Autovan, a manufacturer of handicap-accessible vehicles, will invest nearly $3 million if the tax credit of $600,000 is approved. Plastic-injection molding WJG Enterprises is expected to create 251 new jobs and will invest $4 million if they receive a $993,000 tax credit over seven years.
Although controversial in the sense that the tax credits are very limited in their distribution, MEDC is confident such offerings will provide adequate incentive for companies to either move or stay in Michigan. As the automotive industry continues to take blows within Michigan, new policy, such as this may be the counter-balance Michigan needs to bring in new industries and offer new jobs to the increasing percentile of unemployed Michiganians. Further efforts to spread the incentives include spanning the country to stabilize local communities, ranging from Detroit to Grand Rapids, Charlotte to Portage and Jonesville to Petoskey.