LANSING – In recent years, Michigan has ranked among the top 10 states for the number of industrial projects, but there is still a disconnect between that reality and the state’s perception among business officials across the country, about 200 attendees of the Business Leaders for Michigan summit were told Monday.

The group also released its 2011 Economic Competitiveness Benchmarking Report, noting Michigan is 11 percent more costly than other top 10 states. Among its peer states, only California and Massachusetts had higher labor, energy and tax costs.

The report does not reflect recent tax changes approved by the Legislature and signed into law by Governor Rick Snyder.

But Ron Starner, general manager of Site Selection Magazine and Conway Data Inc., said even a new 6 percent corporate income tax needs to be just one of the steps Michigan takes toward selling its story.

“No one wants to hear the Michigan story,” he sad. “You have to take the message to them.”

One of the greatest gifts the state got this year was the free Super Bowl advertising from Chrysler, which tied its 200 series of cars to the resurgence of the city of Detroit. Starner said if he were governor, one of the top three things he would do is put together a strategic marketing plan that covers the next three years.

Doing so may cost more than the Legislature wants to spend right now, Starner said, but the investment will pay off.

The state should also be surveying all its companies to see what they need to be more profitable, as well as put more of a focus on workforce training and retraining, he said.

The benchmarking report highlighted the state’s strong university structure, particularly its research and development components, but noted that the number of highly educated people in Michigan still ranks below many of the state’s “new economy” peers, such as North Carolina and Texas.

All of the university’s research and development is being commercialized, said Richard Russell, president and CEO of Amerisure, but much of that is happening in other states rather than Michigan.

Other areas the report noted Michigan could perform better were increasing venture capital investment and the number of high-growth companies. Below average test scores and some high-crime areas in the state were also detractors to the state highlighted by the benchmark report.

Panelists split on whether the massive scaling back of Michigan’s economic development tax incentives would improve the state’s competitiveness.

Russell said without improving some other benchmark areas first, it’s unclear whether the massive tax change will prove successful.

“The cliff approach is going to be difficult,” he said.

But Mark Murray, president of Meijer, said he would rather take today’s reality with fewer incentives and a more competitive tax structure, than when Michigan had higher taxes for business and a bucket full of incentives.

“Our governor and the Legislature have done some aggressive things,” said CMS Energy CEO David Joos, chair of BLM.

While regulatory reform is the next hurdle, Joos said, Starner noted Michigan should tap into its historical industrial strengths because those are the sectors that have been growing again recently.

Transportation equipment, chemicals and pharmaceuticals, machinery and fabricated metals industries all had strong growth.

Starner also highlighted Wayne County EDGE (Economic Development Growth Engine), which was ranked in the magazine as one of the most effective economic development entities in the country. He said the activities of Wayne County EDGE could be replicated in other parts of the state.

Michigan’s leaders need to “pick our next target and go after it,” Russell said of how the state can tackle the to-do list outlined by the report. Doing that takes optimism about the future, he said.

“There is a realism in the facts, which is a call to urgency,” Murray said.

While the state hasn’t trended in keeping entrepreneurs here, there are unique markets across the state that can play on their strengths to attract people and investment, he said.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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