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New report models impact of 18 announced large-scale clean energy projects tracked by E2 in Mich. during the first year after the IRA was signed into law (Aug. 2022-Aug. 2023) -
During construction, projects will generate 22K jobs, $7B in new wages, add $10B to Mich.’s GDP
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During operation, projects will generate 6K jobs, $504M in wages, add $600M to Mich.’s GDP every year
Large-scale clean energy projects announced in Michigan in the year after the federal Inflation Reduction Act (IRA) was signed into law are projected to create or support nearly 28,000 jobs and generate tens of billions of dollars in new wages, tax revenue, and economic growth.
The new economic analysis by BW Research released today by the national nonpartisan business group E2 modeled the direct, indirect, and induced economic benefits created by the 18 clean energy and electric vehicle projects announced across Michigan tracked by E2 between August 2022 and August 2023.
Companies behind these projects — ranging from EV and car charging equipment factories to solar generation systems and semiconductor manufacturing facilities — have announced over 9,000 in direct jobs created by their projects and $7.6 billion in direct investments for these factories and other facilities. But when indirect and induced impacts to other sectors of Michigan’s economy are included, the overall economic impacts are eight times as many jobs and includes billions added to the state’s gross domestic product (GDP) during construction and operation of these projects.
More specifically, the analysis found that these projects would:
- Create or support 21,700 jobs during construction and 6,200 jobs every year once the projects are up and running;
- Add $9.7 billion to Michigan’s GDP during construction and $706.7 million annually to the state GDP over their operational lifetime; and
- Generate $7.3 billion in wages for workers during construction and $544.1 million annually during operation; and
- Generate $480 million in new state, and local tax revenues during the construction phase and $59 million annually during operation.
While the analysis only covers the 18 projects announced in the first year of the IRA, at least 11 more large-scale clean energy and clean vehicle projects have been announced since then. In total, companies have announced more than $11.6 billion in private-sector investments and over 12,000 jobs in direct connection with 29 total projects announced in the state since August 2022, according to E2’s research. That makes Michigan the nation’s leader for major clean energy projects announced since the IRA.
Michigan Clean Economy Works: An Economic Impact Analysis of Major Clean Energy, Vehicle Projects is based on E2’s national economic impact analysis of clean energy projects announced in the first 12 months of the IRA. That report found that nationwide, 210 large-scale clean energy projects announced in the first year of the IRA would create or support more than 400,000 direct, indirect and induced jobs and add hundreds of billions of dollars in new wages to the nation’s economy. While the construction industry and its supply chain will see the biggest benefits, other sectors ranging from healthcare and hospitality to retail trade and real estate will also benefit greatly.
The impacts of the IRA have positioned Michigan as an integral part of an unprecedented U.S. economic transition, according toMicaela Preskill, Midwest States Advocate for E2:
Preskill said:
“The clean economy is happening now, and Michigan is at the center of it. Even if you don’t drive an electric vehicle or have solar panels on your roof, you’re already benefiting from the dozens of clean energy projects now sprouting up across Michigan.
“These factories are bringing record new investments and jobs into the Great Lake State, but they’re also generating new revenues, jobs, and growth for all types of Michigan businesses, from construction companies and suppliers to retailers, restaurants and real estate firms.”
According to the analysis, announced electric vehicle-related (EV) projects are poised to deliver the biggest economic benefits, creating or supporting more than 19,700 jobs and adding $1.7 billion to Michigan’s GDP every year for five years during construction. Grid, transmission, and electrification projects were second with 890 jobs supported and $78 million added to the state GDP every year during construction followed by solar energy projects 606 jobs supported and $62 million added to the GDP every year.
Once the plants and facilities are up and running, EV-related projects are expected to create and support nearly 4,000 direct and indirect jobs and generate $530 million in economic activity every year for the life of the projects.
About this Analysis
This analysis provides a thorough economic prediction of the impacts of the 18 announcements by filling in the gaps of publicly announced information. Modeled impacts differ from initial estimates offered by companies announcing new projects, tracked by E2. One of the nine announcements provided no capital investment estimate and two provided no job creation estimate. Additionally, those estimates were inconsistently defined, lacking clarity on if they are direct jobs only or direct, indirect, and induced jobs, and if they were for construction or permanent positions.
For E2’s regularly updated list of clean energy project announcements in Michigan and every other state, visithttps://e2.org/announcements.
Additional Resources
- E2: North Carolina Clean Economy Works: An Economic Impact Analysis of Major Clean Energy, Vehicle Projects (Mar. 2024)
- E2: Georgia Clean Economy Works: An Economic Impact Analysis of Major Clean Energy, Vehicle Projects (Feb. 2024)
- E2: Clean Economy Works: An Economic Impact Analysis of Major Clean Energy Projects Announced In Year One of the Inflation Reduction Act (Nov. 2023)
- E2: 2023 Clean Jobs America – Interactive Map + Tables (Aug.2023)
- E2: Clean Economy Works Home Page (updated March 1, 2024)
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E2 is a national, nonpartisan group of business leaders, investors, and professionals from every sector of the economy who advocate for smart policies that are good for the economy and good for the environment. Our members have founded or funded more than 2,500 companies, created more than 600,000 jobs, and manage more than $100 billion in venture and private equity capital. For more information, see www.e2.org or follow us on Twitter at @e2org.