AN INTRODUCTION TO

DEDICATED TO MAKING MICHIGAN A “TOP TEN” STATE

FOR JOBS, PERSONAL INCOME AND A HEALTHY ECONOMY.

THE ECONOMIC SCOPE OF

DEDICATED TO MAKING MICHIGAN A “TOP TEN” STATE

FOR JOBS, PERSONAL INCOME AND A HEALTHY ECONOMY.

Introduction

In 2009, Business Leaders for Michigan (BLM) was created by uniting business

leaders across the state to form Michigan’s first state business roundtable focused on

one goal – making Michigan a “Top Ten” state for jobs, personal income and a healthy

economy. Our organization provides a forum for the state’s top business and

education thinkers to set in motion a bold plan for harnessing positive change in our

state. Our work is defined by the Michigan Turnaround Plan, a holistic, fact-based

strategy to get Michigan’s economy back on track and to sustain our recovery.

Business Leaders for Michigan’s board members head up the state’s largest job

providers and universities, but our economic impact is far greater than the nearly

375,000 people that work directly for these enterprises in Michigan. This document

outlines the findings of an independent assessment conducted by Anderson Economic

Group that defines the scale of our economic impact on the state of Michigan.

The results of this study conclude that BLM member companies and universities:

• Employ people in almost every county of the state

• Generate more than $1 trillion in annual revenue and serve over 138,000 students

• Drive nearly one-third of the private sector economy

• Support 11% of total Michigan private-sector employment through direct job

creation

• Spend $31 billion on wages and benefits, more than 50% higher than the average

private sector compensation in Michigan

• Contribute approximately $1 billion in state income tax revenue

Business Leaders for Michigan members work here, live here, and raise their families

here. We are the companies that you and your neighbors have been served by or

worked for for years. We hope this report gives you a better understanding of our

commitment to Michigan and the role we play in helping accelerate our state’s growth.

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Who is Business Leaders for Michigan (BLM)?

Business Leaders for Michigan’s approximately 80 board members head up the largest

businesses and universities in Michigan. Our members are homegrown and, in many

cases, have been part of the state’s economic landscape for generations. Together,

they drive 32% of the state’s economy, generate over $1 trillion in annual revenue and

serve nearly one half of all Michigan public university students.

• Our private sector employers span all segments of the economy, from construction

and utilities to manufacturing and finance. The largest sectors among BLM

members are manufacturing, finance and education.

• Our universities enroll over 138,000 students, or 46% of the total enrollment in

Michigan public institutions of higher learning.2

BLM Companies by Sector

BLM Jobs by Sector

Manufacturing 38%

Financial activities 22%

Professional and business services 12%

Trade and transportation 9%

Leisure, hospitality, and other services 9%

Education 4%

Utilities 2%

Construction 3%

Information 1%

Manufacturing 41%

Financial activities 14%

Professional and business services 3%

Trade and transportation 16%

Leisure, hospitality, and other services 4%

Education 17%

Utilities 5%

Construction 0%

Information 0%

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JEFF M. FETTIGCHAIR OF THE BOARDChairman & CEOWhirlpool Corporation

TERENCE E. ADDERLEYExecutive Chairman of the BoardKelly Services, Inc.

KEITH J. ALLMANPresident & CEOMasco Corporation

G. MARK ALYEAPresident EmeritusAlro Steel Corporation

GERARD M. ANDERSON Chairman & CEODTE Energy

DAVID W. BARFIELD Chief Executive OfficerThe Bartech Group, Inc.

MARY BARRAChief Executive OfficerGeneral Motors Company

ALBERT M. BERRIZ Co-Managing Member, CEO,Board Member & Co-Owner

McKinley, Inc.

MARK J. BISSELLChairman & CEOBISSELL Inc.

LAURENT BRESSONPresident & COONexteer Automotive

JOHN C. CARTERPresident, Michigan Middle MarketChase

GREGORY J. CRABBPresident & CEOAmerisure Insurance Company

ROBERT S. CUBBINPresident & CEOMeadowbrook InsuranceGroup, Inc.

WALTER P. CZARNECKIExecutive VP & DirectorPenske Corporation

KURT L. DARROWChairman, President & CEO La-Z-Boy Incorporated

DAVID C. DAUCH Chairman, President & CEOAmerican Axle & Manufacturing

RICHARD L. DeVOREExecutive Vice President

President, Detroit &Southeast MichiganPNC Financial Services Group

DOUG DeVOSPresidentAmway

ALESSANDRO P. DiNELLOPresident & CEOFlagstar Bank

STEFAN O. DOERRSenior VP, Monomers Division,North America

BASF Corporation

J. PATRICK DOYLEPresident & CEO Domino’s Pizza

JAMES E. DUNLAPSenior Executive VP, Director of Regional &

Commercial BankingHuntington

MATTHEW B. ELLIOTT Michigan Market President &

Market Executive, GlobalCommercial BankingBank of America

WILLIAM CLAY FORD, JR. Executive ChairmanFord Motor Company

DAN GILBERTFounder & ChairmanQuicken Loans

DAVID GIRODATPresident & CEOFifth Third Bank-Eastern Michigan

DAN GORDONChairman of the BoardGordon Food Service, Inc.

RONALD E. HALL President & CEOBridgewater Interiors, LLC

RICHARD G. HAWORTHChairman EmeritusHaworth, Inc.

CHRISTOPHER ILITCH President & CEOIlitch Holdings, Inc.

MICHAEL J. JANDERNOABoard of DirectorsPerrigo Company

MILES E. JONESCo-Chairman of the BoardDawn Food Products, Inc.

HANS-WERNER KAAS Senior Partner & DirectorMcKinsey & Company

ALAN JAY KAUFMANChairman, President & CEOKaufman Financial Group

JAMES P. KEANEPresident & CEOSteelcase Inc.

JOHN C. KENNEDYPresident & CEOAutocam Medical

STEPHEN M. KIRCHERPresident & CEO,

Boyne Eastern OperationsBoyne Resorts

WILLIAM L. KOZYRAChairman, CEO & PresidentTI Automotive

BLAKE W. KRUEGERChairman of the Board,

CEO & PresidentWolverine World Wide, Inc.

BRIAN K. LARCHEChairman, CEO & PresidentEngineered MachinedProducts, Inc.

TIMOTHY D. LEULIETTEPresident & CEOVisteon Corporation

ANDREW N. LIVERISPresident, Chairman & CEOThe Dow Chemical Company

KEVIN A. LOBOPresident & CEOStryker Corporation

DANIEL J. LOEPP President & CEOBlue Cross Blue Shield of Michigan

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Business Leaders for Michigan Board of directors - 2015

EVAN D. LYALL Chief Executive OfficerRoush Enterprises, Inc.

BEN C. MAIBACH III Chairman & CEOBarton Malow Company

DENNIS MANNIONPresident & CEOPalace Sports & Entertainment

RICHARD A. MANOOGIAN Chairman EmeritusMasco Corporation

FLORINE MARK President & CEOThe Weight Watchers Group, Inc.

CHARLES G. McCLUREManaging PartnerMichigan Capital Partners, LP

DAVID E. MEADORVice Chairman & CAODTE Energy

HANK MEIJERCo-Chairman & Co-CEOMeijer, Inc.

MICHAEL MILLERHead of Ann Arbor Office &

Director of Business &Industrial Markets Google, Inc.

FREDERICK K. MINTURNPresident & CEOMSX International

PAUL J. MUELLERPresident – Midwest RegionThe Hanover Insurance Group

MARK A. MURRAYCo-CEOMeijer, Inc.

JAMES B. NICHOLSONPresident & CEO PVS Chemicals, Inc.

WILLIAM U. PARFETChairman & CEOMPI Research

CYNTHIA J. PASKY Founder, President & CEOStrategic Staffing Solutions

ROGER S. PENSKE ChairmanPenske Corporation

WILLIAM F. PICKARD Chairman & CEOGlobal Automotive Alliance, LLC

SANDRA E. PIERCE Vice Chairman, FirstMerit CorporationChairman & CEO,FirstMerit Michigan

CHARLES H. PODOWSKI President & CEOThe Auto Club Group

JOHN RAKOLTA, JR. Chairman & CEOWalbridge

MICHAEL T. RITCHIEPresident, Comerica Bank-Michigan MarketComerica Bank

DOUG ROTHWELL President & CEOBusiness Leaders for Michigan

ANDRA M. RUSHFounder & ChairpersonRush Group Family of Companies

JOHN G. RUSSELLPresident & CEOCMS Energy & Consumers Energy

MARK S. SCHLISSELPresidentUniversity of Michigan

J. DONALD SHEETSExecutive VP & CFODow Corning Corporation

LOU ANNA K. SIMON, Ph.D. PresidentMichigan State University

SAM SIMONCEO & ChairmanSimon Holdings

MATTHEW J. SIMONCINIPresident, CEO & DirectorLear Corporation

BRIG SORBERChief Executive OfficerTwo Men And ATruck/International, Inc.

ROBERT S. TAUBMAN Chairman, President & CEO Taubman Centers, Inc.

GARY TORGOWChairmanTalmer Bancorp, Inc.

HOWARD UNGERLEIDERChief Financial OfficerThe Dow Chemical Company

SAMUEL VALENTI III Chairman of the BoardTriMas Corporation

STEPHEN A. VAN ANDELChairmanAmway

BRIAN C. WALKERPresident & CEOHerman Miller, Inc.

THOMAS J. WEBBExecutive VP & CFOCMS Energy & Consumers Energy

THOMAS G. WELCH, JR.President & CEOFifth Third Bank-Western Michigan

GIL WESTExecutive VP & COODelta Air Lines, Inc.

M. ROY WILSONPresidentWayne State University

ROGER J. WOODPresident & CEODana Holding Corporation

WILLIAM C. YOUNG Chief Executive OfficerPlastipak Holdings, Inc.

This list represents the board

members at the time of printing.

For a current list, visit

businessleadersformichigan.com

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What We Do

BLM’s work is concentrated on developing strategy, raising awareness, advocating

policy and championing initiatives that grow the state’s economy. Our work is defined

by the Michigan Turnaround Plan, a holistic, fact-based strategy to get Michigan’s

economy back on track and sustain it. Our organizational activities are guided toward

achieving the goals outlined in the Plan and we hold ourselves accountable for results.

For example, we post our annual work agenda online so policymakers and the public

can see where we are going. We are continually researching and benchmarking new

data and strategies to see how Michigan ranks in all areas of competitiveness

compared to that of Top Ten states.

Michigan Turnaround Plan

The Michigan Turnaround Plan is a three-step agenda to make Michigan a “Top Ten”

state for jobs, personal income and a healthy economy. The Plan sets forward the case

for change, targets achievable goals, identifies action steps and explains the potential

impact of change. It details what work is necessary to further strengthen our state’s

competitiveness and put our state on a solid path to prosperity. The Plan includes the

New Michigan strategy, which identifies existing Michigan assets that we believe, based

on solid data, can be leveraged to accelerate job growth and transition to a New

Michigan economy over the next 10 years. By capitalizing on our core strengths, we

have the potential to add up to 230,000 jobs and grow the personal income of each

Michigan resident by as much as $14,000 during the same time period.

What Motivates Us

Our investment in Michigan is more than financial – it’s personal too. Our members work

here, live here and raise our families here. We are the companies that you and your

neighbors have worked for or have been served by for years. All across Michigan, our

members are supporting communities and working to revitalize the state’s economy.

They “walk the talk” of private sector leadership by creating local jobs, reinventing

neighborhoods and downtowns, and encouraging innovation in all that they do.

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$90,000 –

$80,000 –

$70,000 –

$60,000 –

$50,000 –

$40,000 –

$30,000 –

$20,000 –

$10,000 –

Business Leadersfor Michigan

MichiganPrivate Sector

United StatesPrivate Sector

$83,234

$53,116 $56,738

Jobs at BLM Companies

The companies and universities that make up Business Leaders for Michigan

employ nearly 375,000 people in Michigan, equivalent to 11% of the state’s

private-sector workforce. Our companies have employees in almost every

county in the state.

Business Leaders for Michigan companies provide well-paying jobs. The estimated

average annual wage for employees at BLM member companies is over $68,000 a

year. These employees also receive over $15,000 a year in benefits, on average, for

a total average compensation of $83,000 per employee. This is more than double

the average compensation of private sector employees in Michigan and 40% higher

than the nationwide average compensation. Wages paid to BLM company

employees make up 15% of all private sector wages and salaries in the state.

Benefits paid to BLM company employees make up over 25% of all benefits paid to

private sector employees in Michigan.

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Gogebic

S

Ontonagon

I

Average AnnualCompensation of BLM Employees

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Iron

Delta

Luce

Kent

Marquette Alger

Chippewa

Huron

G

Sanilac

BaragaO on

Ionia

Lake

Bay

Allegan

Schoolcraft

Oakland

Barry

Clare

Houghton

Mackinac

Iosco

Tuscola

Alcona

Cass

Eaton

Lapeer

SaginawNewaygo

Menominee

St. Clair

Wayne

JacksonCalhoun

Alpena

Gratiot

Lenawee

Clinton

Ottawa

Antrim

Berrien

Dickinson

Mason

Ingham

Isabella

Montcalm

Oscoda

Branch

Monroe

Otsego

Hillsdale

Genesee

Osceola

Oceana

Wexford

CheboyganEmmet

MecostaMidland

Ogemaw

Gladwin

Kalkaska Crawford

Washtenaw

Manistee

Van Buren

Livingston

Macomb

Presque Isle

Missaukee

Arenac

Kalamazoo

Muskegon

Benzie

St. Joseph

Roscommon

Leelanau

Charlevoix

Shiawassee

Montmorency

GrandTraverse

Keweenaw

Chippewa

Charlevoix

Number of Employees at BLM Companies by County

Number of Employees in 2009

999 and less

1,000 - 4,999

5,000 - 9,999

10,000 - 19,999

40,000 and more

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Economic Impact of BLM Companies in Michigan

The economic scope of Business Leaders for Michigan companies extends beyond

their own employees and compensation. As they spend money at businesses

throughout the state and hire local Michigan workers, they support industries

statewide. We estimate that throughout the state of Michigan $53 billion in

earnings (32% of private sector earnings) is supported by the economic activities

of BLM member companies.

$53 Billionin earnings

Other Business Activity

In 2013, BLM companies spent $47 billion in Michigan on goods and services in

addition to the $31 billion spent on wages and benefits for their employees. Their

nonpayroll expenditures are equivalent to 12% of the state’s entire economic activity

(as measured by gross state product).

Also in 2013, BLM employees paid an estimated $1 billion in state income taxes on

compensation received. This represents almost 15% of total state income tax paid

in that year. Finally, BLM companies had over $1 trillion in total revenue in 2013.

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We all have a role in bringing Michigan back

BLM works hard to encourage others in Michigan – businesses, policymakers,

grassroots organizations, and taxpayers – to play a role in actively building our state’s

economic recovery. Our outreach efforts include educating the public through annual

Leadership Summits, regional forums and events. BLM also operates two political

action committees to support state and local level candidates who support the

Michigan Turnaround Plan.

A Commitment and a Promise

We commit to serving as a catalyst, advocate and champion to transform Michigan’s

economy. We believe that a vibrant Michigan economy will make our state a place

where business wants to invest and people want to live and work.

We promise to sustain our effort for the long-term and take an active role in leading this

transformation. We will work beyond political terms to sustain the effort. We will focus

on achieving the Michigan Turnaround Plan goals and welcome different ideas for

achieving them.

Learn more about Business Leaders for Michigan at businessleadersformichigan.com

and about our plan for turning the state around at michiganturnaroundplan.com.

Methodology

This report was prepared for Business Leaders for Michigan by Anderson Economic

Group, LLC.

The data presented in this report is from several sources. All BLM member

companies were sent a detailed survey, requesting information on industry,

employment, wages, benefits, nonpayroll expenses, and total revenue in Michigan.

Nearly 63% of companies responded to the survey. Respondents represented over

72% of total employment among BLM members, according to our estimates. AEG

estimated missing data based on industry averages, annual reports of publicly-

traded companies, other companies’ survey responses, and survey responses from

a similar survey administered to BLM members in 2011.

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