In response to the demands of these companies, the state has developed initiatives to meet the labor needs of new and expanding businesses.

Michigan has been recognized by the National Alliance of Business as having the single best work force development system in the nation. Its $30 million-plus job training fund is one of the largest in the United States.

Special zones slash tax liabilities
Michigan has also introduced unique and innovative incentives to spur business growth, including Tax-Free Renaissance Zones, an incentive program that attracted 54 projects in its first year in 1997.

By law, these 11 zones waive nearly all state and local taxation on a Michigan business, including: Michigan Single Business Tax, Michigan Personal Income Tax, State Education Tax, Local Personal Property Tax, Local Real Property Tax, Local Income Tax and Utility Users Tax.

The largest of these zones is the Gogebic/Ontonagon/Houghton counties zone. With 2,917 acres, the zone has a duration of 15 years.

The Montcalm/Gratiot counties zone, which is 1,870 acres in size, also has a 15-year duration.

Another incentive program for expanding companies is offered by the Michigan Economic Growth Authority. The agency administers Single Business Tax credits for expansion and new location projects that create new jobs in manufacturing, research and development, wholesale and trade, or office operations.

Hownet International, in Whitehall, has created 580 direct jobs and an additional 986 indirect jobs with a new $52 million facility. As a result, the company has generated an estimated $19 million in tax credits.

Manufacturing muscle fueled by auto industry
Michigan ranks among the top three states in manufacturing construction activity, led by the auto-engineering industry.

In a massive expansion effort, General Motors Corp. is investing $250 million to expand its Detroit/Hamtramck assembly complex by 277,000 square feet. The project will result in 60 new jobs.

Detroit Automotive Interiors, in a joint venture between Lear Corp. and Bing Manufacturing, also has plans for an expansion that will add between 30,000-40,000 square feet and between 40-50 additional jobs. Detroit Automotive Interiors was launched in 1996 and originally occupied a 40,000 square foot plant.

Another beneficiary of the automobile industry's strength is Detroit's Mexican Industries of Michigan. The automotive supplier recently built a new $2.5 million, 38,000 square foot facility for its headquarters. In addition, it is converting an existing 14,000 square foot building into a factory.

In still another Motor City expansion, Germany-based Thyssen Steel Group is expanding its steel and aluminum processing and logistics service center facility by 350,000 square feet.

In Traverse Bay, Tower Automotive is undergoing an $11 million, 200,000 square foot expansion and consolidation project in the Traverse Bay area.

"Tower Automotive has seen tremendous opportunity in consolidating separate facilities into a single larger one, then also expanding," said Charles Blankenship, president of the Traverse Bay Economic Development Council.

Midwestern technology
Also taking advantage of the economic growth in the Traverse Bay area is TE Technology, a manufacturer of thermoelectrically cooled motorcycle helmets. The company chose to locate in Garfield Heidbreder Park, in Garfield Township.

A major factor in choosing the area for the plant was the support of local officials, according to owner Dick Buist.

"We aren't selling retail or anything that directly serves the people or businesses of Traverse City," Buist said. "There is no way for us to get close to our customers because we deal internationally and across the country."

The Muskegon County Airport Business Park is taking advantage of the latest in communications technology as it continues to add phases.

The park utilizes the latest GTE SmartPark telecommunications technology, including fiber optics and data-quality copper cables to furnish high speed, reliable data, voice and video transmission.

The 21-site park encompasses almost 50 acres. With a second phase under development, an additional 38 acres including 13 more building sites will be added adjacent to the airport terminal.

Transportation speeds growth
Michigan has 19 commercial service airports designated as transport airports, meaning they have runways of 4,700 feet or longer and are capable of accommodating jet aircraft, non-scheduled and scheduled passenger and cargo aircraft.

International access has allowed F.X. Coughlin/Ace Paper, an international freight forwarding company, to open a 107,000 square foot facility in Detroit, creating 220 new jobs.