Michigan officials hope that HSC isn't the last of these high-end

James Epolito

manufacturing deals. James Epolito, the new president and CEO of the MEDC, tells Site Selection that the state's new 21st Century Jobs Fund seeks nothing less than the "transformation of our economy."
   The fund sets aside $400 million to fund high-tech R&D in four areas: life sciences, alternative energy, advanced automotive manufacturing, and homeland security and defense.
   "These dollars are not directed to old rust-belt manufacturing jobs," says Epolito. "They are directed to very specific areas that transform our economy. The governor's new package gives us the dollars and the ability to focus our efforts on industries that will provide the higher-skilled, higher-paying jobs that employ highly educated people."
   The state needs these jobs now more than ever. According to a University of Michigan study released Nov. 18, the state will see its sixth consecutive year of job losses in 2006 — the longest stretch of employment decline since World War II.
   UM economists Joan Crary and George Fulton predict a net loss of 9,600 Michigan jobs in 2006, followed by a net increase of 10,600 jobs in 2007. The jobless rate will increase from 6.1 percent to 7.1 percent in 2006 and reach 7.6 percent in late 2007, the report states, giving Michigan its highest jobless rate since the end of 1992.
   "The manufacturing base that provided good-paying jobs is going away," Epolito says. "The more important metric is the type of businesses that we are able to retain, attract and grow. We have the skilled work force in Michigan to attract those types of companies. We have 6,000 engineers who graduate every year from our universities. We are second in the nation in automotive R&D. We see a bright future in advanced automotive."
   Still, Epolito says, Michigan must do more to lure the types of companies that will make the high-value products in demand in the future.
   "In my mind, the Michigan Legislature cannot do enough to improve the Michigan business climate," he said. "A reduction in the single business tax is right on the mark. I am not interested in corporate welfare, but I also realize the level of competition that exists."
   Nearly losing HSC to Kentucky taught Epolito a valuable lesson. "We feel very good about retaining and expanding the Hemlock plant, but it would not have happened without government intervention," he says.
   "My message to corporate site selectors is, 'Do your due diligence and don't believe all the headlines you read about Michigan.' We are aggressive, and we are on the offensive to win your business."