Michigan’s Economic Vitality and the Great Lakes
The recent attention on the possibility of Green Jobs and a Blue Water Economy for Michigan has inspired two questions:
- How many of Michigan’s current jobs are connected to the Great Lakes?
- How would Michigan’s economy benefit if we restored the Great Lakes?
Michigan Sea Grant addressed these questions in two recent reports – Michigan’s Great Lakes Jobs and Michigan’s Economic Vitality: The Benefits of Restoring the Great Lakes (see links to the right).
Michigan’s Great Lakes Jobs
Michigan is the Great Lakes state and the Lakes shape our everyday lives – affecting where we live and what we do. Historically, the Lakes served as a water highway and influenced the location of factories, forestry operations, and mining companies. But how many of Michigan’s current jobs are connected to the Great Lakes?
In total, we found the Great Lakes strongly influence eight industries and 804,000 jobs in Michigan. By this estimate, 15 percent of all Michigan jobs – garnering 23 percent of Michigan payroll – are associated with the Lakes.
In some cases, the economic connection to the Lakes is direct and obvious. For example tourism and outdoor recreation depend on the scenery, beaches, fish, and waterfowl of the Great Lakes. For other industries, the Great Lakes provide an economic advantage by providing access to cheap transportation of raw materials, abundant clean water for manufacturing and energy production, or by moderating the climate for specialty crops along the coast.
The economic importance of the Great Lakes further emphasizes the need to maintain water quality, healthy coastal ecosystems, recreational and commercial access to the Lakes, and a safe navigational system.
For more explanation about the industries included and how this methodology can be repeated in other states using publically available data sources, see:
Full Report (PDF)
Michigan’s Economic Vitality: The Benefits of Restoring the Great Lakes
The Great Lakes are integral to the economic and cultural vitality of Michigan; however, their health is threatened by toxic contaminants, outdated sewage infrastructure, invasive species, and a lack of coordinated conservation efforts.
Recently, the Michigan Office of the Great Lakes developed a comprehensive restoration framework for Michigan. See: MI-Great Lakes Plan: Our Path to Protect, Restore, and Sustain Michigan’s Natural Treasures
The efforts outlined in the plan would require significant federal and state investment, but what are the potential financial returns for Michigan?
In conjunction with the Brookings Institution, John Austin lead a team that conducted a benefit-cost analysis of implementing a comprehensive restoration program in the Great Lakes region. See: The Broad Benefits of Restoring the Great Lakes
Using this economic analysis, Michigan Sea Grant estimated the specific benefits of restoration for Michigan.
The results: Great Lakes restoration is likely to improve fishing, birding, hunting and swimming for Michigan residents and tourists. In addition, restoration should raise property values around Areas of Concern and reduce the costs of municipal water treatment. All of these environmental improvements could produce benefits of $7- 13 billion for Michigan.
To find out more about the anticipated environmental and economic benefits of restoration, see: Full Report (PDF)
Links about Michigan’s Great Lakes Economy
Great Lakes Industries
Great Lakes Restoration
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