ANN ARBOR – Changing Michigan will require a change in state culture, a new study warns. Michigan also is not viewed as a great place to grow, while the near-term economic outlook is not bright as was hoped.

The survey conducted Nov. 12 to Dec. 7 by Baker Strategy Group and CFI Group of Ann Arbor, was presented Jan. 8 at the Detroit Economic Club. The survey had nearly 3,000 responses from 70 business, government and nonprofit organizations. Some 87 percent of the respondents are employed either full time or part-time and can be grouped in three sectors: Business 60 percent, Nonprofits 15 percent, Public 25 percent.

Business, Nonprofit and Public Segments Agree on the Following

Michigan is not yet a great place to grow a business

The vast majority of businesses and nonprofits plan to remain in Michigan

Businesses can do a better job in providing training and education for a skilled workforce

Healthcare costs and employee benefits costs are the top two challenges that businesses face

Lack of available skilled labor is not the primary challenge that the business sector faces in Michigan as a whole. Healthcare costs and other taxes and costs are greater challenges to businesses in Michigan.

Michigan overall is not yet a great place to start a business, is not business friendly, and does not have a strong, vibrant economy

Michigan must attract and retain top talent to the state

Michigan must ensure water is clean and the Great Lakes protected

Michigan regions do not have efficient, seamless mass transportation systems

Michigan regions do not have unquestionable identity as a vibrant technology hub

Michigan has great places of worship

Sectors Areas of Difference

The nonprofit sector is more likely to recommend Michigan, their region, and their community as a great place for business

The nonprofit has the strongest outlook for the next three years, while the public sector has the weakest outlook over that same period

The nonprofit and public sectors do not fully appreciate the tax challenges imposed on Michigan businesses

The business sector says businesses support the local community, but the nonprofit and public sectors do not necessarily agree

The business and nonprofit sectors are more enthusiastic about Michigan as a great place for raising a family

The business sector does not agree with the nonprofit and public sectors that Michigan must better fund vital services (public safety, fire, transportation)

Potential Opportunities

Public Sector

Recent tax changes, such as the elimination of the MBT and personal property taxes, are critical for Michigan business. While all sectors agree that Michigan must attract quality talent, the bigger challenges that businesses face are healthcare costs. The public sector should focus efforts on working with the private sector to find ways to alleviate this pain for Michigan businesses and nonprofits.

Business Sector

If we are to see a new Michigan, Businesses need to take a leadership role by strengthening training and education in the workplace, designing jobs that attract skilled labor, and contributing and supporting efforts to build up the local community.

Nonprofit Sector

Nonprofits are critical for making Michigan a great place to grow a business. Churches, charitable organizations, and human services organizations help heal our communities. There is a great need in Michigan. And as more contribution and support is expected from businesses, nonprofits must all the more demonstrate effective and well-run organizations that fulfilling their mission to the community.

Partners in the program include Eiler Communications, Apogee Insights Group, Move Communications and Denison Consulting