New state grants go beyond automotive industry

By ALISON BERGSIEKER
Capital News Service
Friday, Sept. 8, 2006


LANSING — In the 21st century, automotive jobs may have lost their ranking in Michigan.

While automakers expand out of state, Gov. Jennifer Granholm announced that Michigan will take a new direction by passing out more than $100 million to a diverse group of awardees—mostly universities and research facilities.

The grants are going to businesses in life sciences, alternative energy, advanced automotive materials and manufacturing, and homeland security-defense.  Life sciences, the largest group, will share $45.7 million.  More than 500 companies applied and 61 were chosen.

“The 21st Century Job Fund has given the state of Michigan an opportunity to be a catalyst in this economic change,” Michigan Economic Development Corp. (MEDC) President James. C. Epolito said.  “All of the losses that we have sustained from the automotive industry have shed a real poor light on Michigan, both nationally and internationally.” 

Automotive job cuts and expansion in other states are pushing legislators away from the industry and toward new options.  For example, Chrysler Group plans to cut more than 300 jobs at its Detroit engine plant in January and also invested in Ohio when its Toledo plant was offered subsidies of nearly $200 million for grants, training and financing.

And while Honda Motor Co. chose Indiana for a new $550 million assembly plant that will open in June, MEDC chief communications officer Michael Shore said it wasn’t necessarily a loss overall in Michigan.

“The Honda plant is an exception to the rule,” Shore said.  “If you put stickers on a map for all the major automotive plants in the United States, you would have stickers upon stickers (that represent) plants all over Michigan.”

Michigan is responding differently to the dispersing automakers.

Universities received a large portion of the grants for advanced automotive materials and manufacturing.  The move signifies a long-term goal to keep automotive jobs and job training in the state, starting with schools, Epolito said.

Lawrence Technological, Western Michigan, Wayne State and Michigan State universities and the University of Michigan will all receive grants ranging from Lawrence Tech’s nearly $900,000 to MSU’s combined $11.6 million in all four categories.

Not all university applicants received grants.  For example, Oakland University filed proposals in homeland security-defense and communication research areas such as advanced computing and information technology.  Michigan Technological and Central Michigan universities also had proposals denied.

Central submitted three proposals and two faculty projects that were denied, media relations director Steve Smith said.  The faculty projects proposed by Professors Anton Jensen and Justin Do-Hoon Oh-Lee involved research into deactivating chemical and biological weapons, along with extensive animal research.

MEDC said the new funds will allow Michigan to differentiate itself from other states and leverage its strengths in these four emerging sectors.

 “Michigan is a big player in automotive and every thing else,” Shore said.  “We’ve always got plans.”