Michigan and Turkey: Economic Opportunities

Page 1

Michigan and Turkey: Economic Opportuni7es Prepared for:

Turkey-­‐Michigan Forum June 5, 2012

Ilhan K. Geckil, Senior Economist Patrick L. Anderson, Chief ExecuKve Officer


O u t l i n e

1.  Who We Are 2.  Overview of US, Michigan and Turkish Economies 3.  Global AutomoKve Industry Trends (Focus on US, Michigan and Turkey) 4.  AutomoKve Industry and Technology 5.  Concluding Remarks


1. Who We Are


1. Who We Are

Ø  Anderson Economic Group is an economic consulKng firm, specializing in economics, corporate finance advisory, market and industry research, and public policy with offices in East Lansing, Michigan and Chicago. Ø  We advise businesses, governments, and insKtuKons. Ø  Our work is based on our core values: • Professionalism • Integrity • ExperKse


1. Who We Are AEG RepresentaKve Clients:


1. Who We Are

AEG ConsulKng Services: Ø Strategy ConsulKng Ø  Mergers and AcquisiKons Advisory Ø  Business ValuaKon Ø  Economic Research and Analysis Ø  Market and Industry Research Ø  Economic Development Studies Ø  Public Policy


2. Overview of the US, Michigan, and Turkish Economies


2. Overview of the US, Michigan, and Turkish Economies Turkey Population (in millions)

U.S. 72.8

MI 313.6

9.876

GDP (in billions $) 2000 2005 2010 2011

266.4 482.7 734.4 778.1

9,951 12,623 14,527 15,094

336.8 375.3 384.2 407.2*

GDP Composition, 2011 est., 2010 for MI Agriculture Industry Services

9.2% 23.0% 63.9%

1.2% 22.1% 76.7%

0.8% 22.5% 76.7%

24.7

153.4

4.64

10.3%

9.1%

8.5%

8.5%

2.5%

4.2%

133 212

1,511 2,314

51 104

Labor Force, 2010 (in millions) Unemployment, 2011 est. Industrial Production Growth, 2011 est. Exports, 2011 est. (in billions $) Imports, 2011 est. (in billions $) *Estimate Source: CIA Factbook & Bureau of Labor Statistics Analysis: Anderson Economic Group


2. Overview of the US, Michigan, and Turkish Economies World Rank 1 2 18 19 20 21 22 23 24 25 26 27 28 29

30 31 32 33 34 35 36 37 38 39 40

Michigan GDP Global & U.S. Comparison in $ U.S. Billions World Domestic Country GDP U.S. Rank State E.U. U.S. China Turkey Switzerland Saudi Arabia Sweden Poland Belgium Norway Iran Taiwan Argentina Austria South Africa Michigan UAE Thailand Denmark Colombia V enezuela Greece Malaysia Finland Singapore Chile Israel

GDP

$ 17,577.7 $ 15,094.0

Total

$

7,298.1

$

778.1

1

$

636.1

2

$

577.6

3

$

538.2

4

$

513.8

5

$

513.4

6

$

483.7

7

$

482.4

8

$

466.8

9

$

447.6

10

$

419.2

11

$

408.1

12

$

372.4

13

$

360.1

14

$

345.6

15

$

333.2

16

$

328.4

17

$

315.8

18

$

303.1

19

$

278.7

20

$

266.6

21

$

259.8

22

$

248.4

23

$

242.9

24

Source: U.S., BEA 2010 -­‐ Countries, IMF 2011

U.S.

$ 15,094.0

California Texas New York Florida Illinois Pennsylvania New Jersey Ohio Virginia North Carolina Georgia Massachusetts Michigan Washington Maryland Indiana Minnesota Arizona Colorado Wisconsin Tennessee Missouri Connecticut Louisiana

$ 1,936.4 $ 1,207.4 $ 1,156.5 $

754.0

$

644.2

$

575.6

$

497.0

$

483.4

$

427.7

$

407.4

$

404.6

$

377.7

$

372.4

$

351.1

$

300.0

$

267.6

$

267.1

$

261.3

$

259.7

$

251.4

$

250.3

$

246.7

$

233.4

$

213.6


2. Overview of the US, Michigan, and Turkish Economies

Source: The Economist Magazine


2. Overview of the US, Michigan, and Turkish Economies Real GDP Growth, the U.S., Michigan, and Turkey, 2000-2011 12.0% 10.0%

9.4%

9.0%

8.5%

8.4%

8.0%

6.9%

6.8% 6.2%

6.0% 4.0%

6.0% 5.3%

1.8%

2.0%

4.7%

4.3%

4.2% 4.1%

3.0% 2.5%

1.1%

3.5%

3.9% 3.1% 2.8%

3.0%

2.8%

2.7%

1.9% 0.9%

0.7%

0.4%

0.1%

U.S. 1.7%

Turkey

0.0%

2000

2001

2002

2003

2004

2005

2006

-2.0%

-0.3%

2008

2009 -1.5%

-3.0%

-4.0% -6.0%

2007

-3.5% -4.8%

-5.7%

-8.0%

Source: IMF World Economic Outlook Database & Bureau of Economic Analysis Analysis: Anderson Economic Group

Michigan

2010

2011


2. Overview of the US, Michigan, and Turkish Economies

Import and Export Data, 2010 Export Partners U.S.

Turkey Germany UK Italy France

10.1% 6.4% 5.7% 5.3%

Canada Mexico China Japan

11.6% 9.5% 9.3% 6.6% 5.5%

Turkey Exports Clothing Agriculture Textiles Metals

Canada Mexico China Germany

Import Partners U.S.

Turkey Russia Germany China U.S. Italy

Michigan 19.4% 12.8% 7.2% 4.7%

Imports Machinery Chemicals Transp. Eq. Fuels

China Canada Mexico Japan Germany

46.0% 17.6% 5.3% 3.5%

Michigan 19.5% 14.2% 11.8% 6.3% 4.3%

Key Exports/Imports U.S. Exports Imports Electronic Comp. Automobiles Auto Parts Crude Oil Computers Clothing Tele. Equip. Agriculture

Canada Mexico China Japan Germany

Michigan Exports Imports Auto Parts Auto Parts Chemicals Crude Oil Machinery Natural Gas Metals Automobiles

Source: CIA Factbook, U.S. Census Bureau & Bureau of Economic Analysis

44.8% 31.5% 5.5% 3.7% 3.3%


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: Real GDP since 1992


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: Unemployment Rate since 1992


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: InflaKon Rate since 1992


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: Interest Rates Since 1992 – 10 yr Treasury


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: Imports and Exports since 1992


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: Oil Prices since 1995


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: Manufacturing in the US Economy, 1939-­‐2011 Manufacturing as Percentage of Total Employment

Source: US Bureau of Labor Sta0s0cs and Bureau of Economic Analysis via St. Louis Fed


2. Overview of the US, Michigan, and Turkish Economies

US Outlook: Federal Deficit

Ø  The US federal deficit for FY 2009 was $1.4 trillion, the largest since the end of World War II, and for FY 2011 was $1.3 trillion. Ø  As of May 30, 2012, Total U.S. Debt reached $15.7 Trillion. Historically, because of the large size of the U.S. GDP, U.S. Debt has been of liele concern. Recently however, U.S. debt levels have reached 103% (15.7/15.1) of the country’s GDP, a level that raises some concerns about the normally impenetrable U.S. economy.


2. Overview of the US, Michigan, and Turkish Economies

Great Recession Aiermath


2. Overview of the US, Michigan, and Turkish Economies

Great Recession Aiermath


2. Overview of the US, Michigan, and Turkish Economies

Great Recession Aiermath


2. Overview of the US, Michigan, and Turkish Economies

United States-­‐Summary Ø  US economy has recovered and has been consistently growing. Ø  US has been experiencing slow growth with historically high unemployment rate and a very rigid job market. Ø  Housing market is sKll a problem: record high foreclosures and low house values affecKng economy and labor market negaKvely. Ø  AutomoKve industry had a very bad couple years during the Great Recession, started recovering in 2011, and rapidly growing in 2012.


2. Overview of the US, Michigan, and Turkish Economies

United States-­‐Summary, ConKnued

Ø  Exports are up: electronic components, aircrai, motor vehicle parts, computers, and telecom equipment. Ø  Broad shii towards a service and informaKon economy with recent high-­‐tech manufacturing growth. Ø  Concern for growth sensiKvity to oil prices – uncertainKes of government’s energy policy exacerbates this Ø  Federal deficit is another major concern.


2. Overview of the US, Michigan, and Turkish Economies

Turkey Outlook: Real GDP Growth, 2000-­‐2011


2. Overview of the US, Michigan, and Turkish Economies

Turkey Outlook: Unemployment Rate Since 1992


2. Overview of the US, Michigan, and Turkish Economies

Turkey Outlook: InflaKon Since 1992


2. Overview of the US, Michigan, and Turkish Economies

Turkey Outlook: Imports and Exports Since 1992


2. Overview of the US, Michigan, and Turkish Economies

Turkey Outlook: Current Account Balance in Billions of USD 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $10.00 $0.00 -­‐$10.00

-­‐$20.00 -­‐$30.00 USD Billions

-­‐$40.00 -­‐$50.00 -­‐$60.00 -­‐$70.00 -­‐$80.00 -­‐$90.00 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

CAB U.S. Billions

-­‐$9.92

$3.76

-­‐$0.63

-­‐$7.52

-­‐$14.43

-­‐$22.31

-­‐$32.25

-­‐$38.43

-­‐$41.52

-­‐$13.37

-­‐$46.64

-­‐$77.09

CAB %GDP

-­‐$3.72

$1.92

-­‐$0.27

-­‐$2.48

-­‐$3.68

-­‐$4.62

-­‐$6.09

-­‐$5.92

-­‐$5.69

-­‐$2.18

-­‐$6.35

-­‐$9.91

Source: IMF W orld Economic O utlook Database Analysis: A nderson Economic Group


2. Overview of the US, Michigan, and Turkish Economies

Turkey Outlook: Current Account Balance, % of GDP 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

4.00%

2.00% 0.00% -­‐2.00% CAB as %GDP

-­‐4.00% -­‐6.00% -­‐8.00% -­‐10.00%

-­‐12.00% 2000 CAB U.S. Billions CAB %GDP

2001

$ (9.92) $ 3.76 -­‐3.72%

1.92%

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

$ (0.63) $ (7.52) $ (14.43) $ (22.31) $ (32.25) $ (38.43) $ (41.52) $ (13.37) $ (46.64) $ (77.09) -­‐0.27%

-­‐2.48%

-­‐3.68%

-­‐4.62%

-­‐6.09%

-­‐5.92%

-­‐5.69%

-­‐2.18%

-­‐6.35%

-­‐9.91%


2. Overview of the US, Michigan, and Turkish Economies

Turkey-­‐Summary Ø  Growth – Fast growth during the last decade. GDP up 9% and 8.5% in previous 2 years. Ø  Revamped and well capitalized banking system. Ø  Public finance is healthy. Ø  Broad shii to a manufacturing economy. Ø  Populous young labor, contrasted with Europe’s aging populaKon. Ø  Current account deficit is the most important problem the Turkish economy is facing.


2. Overview of the US, Michigan, and Turkish Economies

Michigan Outlook: Real GDP Since 1997


2. Overview of the US, Michigan, and Turkish Economies

Michigan Outlook: Unemployment Rate since 1992


2. Overview of the US, Michigan, and Turkish Economies

Michigan Outlook: Manufacturing Employment since 1992


2. Overview of the US, Michigan, and Turkish Economies

Michigan Outlook: Summary Ø  Manufacturing producKon and exports are driving Michigan’s economy. Ø  94% of exports are manufacturing related. Ø  TransportaKon equipment, its largest export, accounts for 49% of all Michigan exports in 2011. Ø  In 2009, there were 12,696 manufacturing establishments in Michigan. Ø  Manufacturing in Michigan has grown twice as fast as the US economy over the past 2 years. Ø  Highest number of advanced auto industry jobs in the US.


3. Global AutomoKve Industry Trends (Focus on US, Michigan, and Turkey)


3. Global AutomoKve Industry Trends Motor Vehicle Production, Top 25 Producing Countries, 2000-2011 Descending order based on 2011 production data.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

CAGR* 2011 2000-2011 18,418,876 22% 8,653,560 -3% 8,398,654 -2% 6,311,318 1% 4,657,094 4% 3,936,448 16% 3,406,150 7% 2,680,037 3% 2,353,682 -2% 2,294,889 -3% 2,134,893 -3% 1,988,036 5% 1,648,505 18% 1,478,460 12% 1,463,999 -2% 1,199,834 9% 1,189,131 10% 837,948 10% 837,132 5% 828,771 8% 790,348 -7% 639,763 12% 562,386 -5% 540,050 6% 532,545 4%

2000 2,069,069 12,799,857 10,140,796 5,526,615 3,114,998 801,360 1,681,517 1,935,527 3,032,874 3,348,361 2,961,636 1,205,581 277,985 411,721 1,813,894 455,492 430,947 292,710 504,972 339,632 1,738,315 181,783 1,033,294 282,830 357,364

2005 5,708,421 11,946,653 10,799,659 5,757,710 3,699,350 1,638,674 2,530,840 1,684,238 2,752,500 3,549,008 2,687,892 1,354,504 817,200 1,122,712 1,803,109 602,237 879,452 500,710 613,200 319,755 1,038,352 218,349 926,528 563,408 525,227

56,739,130 1,635,032

64,039,688 2,442,751

77,782,509 2,310,331

3% 3%

Global Production 58,374,162

66,482,439

80,092,840

3%

China United States Japan Germany South Korea India Brazil Mexico Spain France Canada Russia Iran Thailand UK Czech Republic Turkey Indonesia Poland Argentina Italy Slovakia Belgium Malaysia South Africa Top 25 Totals Other

* Compound Annual Growth Rate Source: International Organization of Motor Vehicle Manufacturers Analysis: Anderson Economic Group


3. Global AutomoKve Industry Trends Motor Vehicle Production, Selected Countries, 2000, 2005, and 2011 30.00

27.75

Vehicle Units in Millions

25.00

BRIC*

20.00

MIST**

United States

15.00

12.80 11.23

10.14

Japan

11.95 10.80

Germany 9.36 8.65

10.00 5.76

5.77

6.76 5.53

5.00

5.76

3.03 3.35

2.75

Spain

8.40 6.31

France

3.55 2.35 2.29

2000

2005

2011

% Change

*Brazil, Russia, India, and China **Mexico, Indonesia, South Korea, and Turkey Source: International Organization of Motor Vehicle Manufacturers Analysis: Anderson Economic Group

BRIC* MIST** United States Japan Germany Spain France

2000-2005 2005-2011 95.1% 147.0% 17.1% 38.4% -6.7% -27.6% 6.5% -22.2% 4.2% 9.6% -9.2% -14.5% 6.0% -35.3%


3. Global AutomoKve Industry Trends Motor Vehicle Production, the U.S. and China, 2000-2011 20.00 18.42

18.26

18.00

Vehicle Units in Millions

16.00 14.00

13.79 12.80

12.28 11.42

12.00

12.11

11.99

11.95

11.26

10.00

10.78 8.88

8.00

9.30 8.69

5.23

China

7.76

7.19

6.00

U.S.

8.65

5.73

5.71

4.44

4.00

3.29 2.07

2.00

2.33

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Source: International Organization of Motor Vehicle Manufacturers Analysis: Anderson Economic Group

U.S. China

2000 12.80 2.07

2001 11.42 2.33

2002 12.28 3.29

2003 12.11 4.44

2004 11.99 5.23

2005 11.95 5.71

2006 11.26 7.19

2007 10.78 8.88

2008 8.69 9.30

2009 5.73 13.79

2010 7.76 18.26

2011 8.65 18.42


3. Global AutomoKve Industry Trends Motor Vehicle Production, Turkey and Italy, 2000-2011 2,000 1,800

1,738

1,580

Vehicle Units in Thousands

1,600

1,427

1,400

1,322 1,212

1,142

1,200

1,038

1,000 823

1,284

1,099 988

1,189

1,147

1,024

879

870 843

1,095

Turkey 838

800 600

790

533

431 347

400

271

200 2000

2001

2002

2003

2004

2005

2006

Source: International Organization of Motor Vehicle Manufacturers Analysis: Anderson Economic Group

2007

2008

2009

2010

2011

Italy


3. Global AutomoKve Industry Trends

Global Light-­‐vehicle ProducKon Capacity, 2008-­‐2013 Light-Vehicle Production

Unused Cap

120,000,000

100,000,000

Units

80,000,000

60,000,000

40,000,000

20,000,000

0 2008

2009

2010

Source: AUTOFACTS Global AutomoKve Outlook, 2010 Q1 Release

2011

2012

2013


3. Global AutomoKve Industry Trends

Ø  China has been largest producer since 2008. Ø  BRIC countries have displayed most rapid growth. Ø  MIST countries are second fastest growing segment. Ø  Emerging markets taking over dominant manufacturing role. Ø  Developed naKons focused on higher-­‐tech/luxury manufacturing. Ø  Strong trend toward fuel efficient vehicles.

•  .


3. Global AutomoKve Industry Trends: US Light-Vehicle Sales, US, 2000-2011 20.0 18.0

17.4

17.2

16.8

16.7

16.9

17.0

16.6

16.2

Vehicles in Millions

16.0 13.2

14.0 12.0 11.4

10.9

11.6 10.4

10.0 8.0 6.0

12.8

10.0

9.9

6.5

6.6

7.0

6.0

6.3

2000

2001

2002

2003

2004

9.7 7.3

10.4

8.9 7.7

8.37.9

Big 3* Other

7.0 6.3

5.8 4.6

6.3 5.3

6.8 6.0

Total

4.0 2.0 0.0

2005

2006

2007

2008

2009

2010

Source: Automotive News Data Center Analysis: Anderson Economic Group *Big 3: Ford Motor Corp, Chrysler LLC, and General Motors Corp. Excludes Aston MarKn, Jaguar, Land Rover, Saab, and Volvo. Source: Automo0ve News Data Center


3. Global AutomoKve Industry Trends: US Employment in Auto Manufacturing, US, 2002-2012

1,200

1,139

1,147

1,119

1,107

Employees in Thousands

1,100

1,098

1,017

1,000

945

900 800 691

700

665

702

746

600 500 400

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

% Change from the Previous Year 2003 0.7%

2004 -2.4%

2005 -1.0%

Source: Bureau of Labor Statistics Analysis: Anderson Economic Group

2006 -0.8%

2007 -7.4%

2008 -7.1%

2009 -26.9%

2010 -3.7%

2011 5.6%

2012 6.2%


3. Global AutomoKve Industry Trends: US Michigan Auto Industry Employment: Vehicles and Parts Manufacturing, 2002-2012 Recorded March of each year. 250.0

Employees in Thousands

200.0

195.1 181.9

176.2

164.5 152.0

150.0

136.7 Vehicles

115.5 100.0

86.2

81.0

86.2

77.5

67.9

62.6

99.3

91.2

82.6

Parts

62.3 50.8

50.0

41.1

40.1

36.5

33.8

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Source: Bureau of Labor Statistics Analysis: Anderson Economic Group 2002 Vehicles Parts

2003 86.2 195.1

2004 81.0 181.9

2005 77.5 176.2

2006 67.9 164.5

2007 62.6 152.0

2008 62.3 136.7

2009 50.8 115.5

2010 41.1 86.2

2011 33.8 82.6

2012 36.5 91.2

40.1 99.3


3. Global AutomoKve Industry Trends: US

Ø  Sales are up in the US. •  Smaller cars are driving growth. Ø  Detroit is profitable again. •  Closed some manufacturing plants. •  NegoKated global compeKKveness in labor contracts. Ø  Michigan remains the foundaKon of the auto industry. •  Industry job growth is up, parKcularly in auto parts segment. •  Home of AutomaKon Alley. Ø  GM, Ford and Chrysler quickly responding to capture disenchanted Toyota and Honda buyers with smaller and more efficient offerings.


3. Global AutomoKve Industry Trends: Turkey Automotive Domestic Retail Sales, Turkey, 2001-2011

1,000,000 910,867

900,000 800,000

793,172

741,269 758,537 665,515

700,000

634,206 575,869

Units

600,000

526,544

500,000 397,963

400,000 300,000 200,000

195,090

174,442

100,000

2001

2002

2003

2004

2005

Source Automotive Manufacturers Association (OSD) Analysis: Anderson Economic Group

2006

2007

2008

2009

2010

2011


3. Global AutomoKve Industry Trends: Turkey Automotive Production & Exports (%), Turkey, 2001-2011

1,400,000 1,234,637

1,200,000

1,132,951

1,171,917

1,124,982

1,026,427

1,000,000 864,073

Units

68%

69% 563,450

600,000

200,000

884,466

73%

800,000

400,000

79%

916,062

285,737

357,405

71%

72%

Production

61%

60%

Exports

64%

73%

2001

2002

2003

2004

2005

Source Automotive Manufacturers Association (OSD) Analysis: Anderson Economic Group

65%

2006

2007

2008

2009

2010


3. Global AutomoKve Industry Trends: Turkey Production of Top Auto Manufacturers, Turkey, 2011 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Oyak Renault Tofas Ford Otosan Toyota Hyundai Assan Turk Traktor Karsan Mercedes-Benz Turk Honda Turkiye Hattat Tarim A.I.O.S. Temsa Global B.M.C. Otokar Man Turkiye Total

Total Units 330,994 307,788 295,850 91,639 90,231 40,617 22,146 21,362 12,341 4,889 4,324 4,060 3,724 3,062 1,610 1,234,637

Source Automotive Manufacturers Association (OSD) Analysis: Anderson Economic Group

10% 7%

27%

Oyak Renault Tofas

7%

Ford Otosan Toyota Hyundai Assan 24%

Other 25%


3. Global AutomoKve Industry Trends: Turkey Automobile Sales in Turkey, by Manufacturer, 2011 Imports Local Total Sales

538,532 372,335 910,867

Tofas Oyak Renault Ford Otosan Hyundai Assan M. Benz Turk Toyota Honda Turkiye Karsan B.M.C. A.I.O.S. Temsa Global Otokar Man Turkiye

126,198 90,117 81,258 27,292 16,007 10,283 7,306 7,254 4,761 4,183 2,624 2,419 366

Total

59% 41%

Turkish Automobile Sales of Local Manufacturers 4%

2% 2% 3%

4% Tofas 33%

7%

Oyak Renault

Ford Otosan Hyundai Assan M. Benz Turk Toyota Honda Turkiye

21%

380,068

Source Automotive Manufacturers Association (OSD) Analysis: Anderson Economic Group

Karsan Other 24%


4. AutomoKve Industry and Technology


4. AutomoKve Industry and Technology

Six Technology Industry Clusters • Advanced AutomoKve

• InformaKon Technology

• Advanced Manufacturing

• Life Sciences

• Chemical and Material

• Related Technologies


4. AutomoKve Industry and Technology Technology Industries

Detroit & Ann Arbor

Technology Total Industry Technology Employment as a Industry Total Technology Industry share of Total Employment Technology Estab. as a share Employment Employment LQ Estab. of Total Estab. 253,240 13.7% 1.48 7,519 6.8%

Technology Occupa7ons Technology OccupaKon Total Employment as a Technology Share of Total OccupaKon OccupaKon OccupaKon Employment Employment Employment LQ 156,400 8.0% 1.39

Chicago

361,574

8.6%

0.93

6.7%

235,958

5.5%

0.95

CincinnaK

87,313

9.2%

0.99 2,840

5.9%

58,480

5.9%

1.02

Cleveland

92,693

9.8%

1.05

6.5%

50,860

5.1%

0.88

Grand Rapids

39,076

11.2%

1.21 1,142

6.1%

18,560

5.1%

0.88

Indianapolis

76,961

9.7%

1.04

6.4%

51,780

5.9%

1.03

Minneapolis

179,433

10.7%

1.15 7,358

8.0%

138,880

8.0%

1.39

Piesburgh

88,648

8.3%

0.89

5.9%

65,820

5.9%

1.02

St. Louis

116,578

9.2%

1.00 4,139

5.8%

79,630

6.1%

1.06

Atlanta

211,537

9.5%

1.03

8.0%

145,590

6.4%

1.10

AusKn

99,983

15.2%

1.64 3,664

9.1%

80,360

10.4%

1.81

Boston

307,201

13.1%

1.41

8.6%

251,550

10.2%

1.78

Dallas

305,798

11.5%

1.24 10,864

7.7%

210,590

7.3%

1.26

San Jose

254,334

27.3%

2.94

165,700

18.6%

3.23

Seaele

217,050

13.8%

1.49 7,043

7.1%

187,110

11.2%

1.94

US

11,214,875

9.3%

1.00 450,874

5.9%

7,534,300

5.8%

1.00

16,352 3,551 2,818 3,575 10,882 10,708 6,756

14.7%

Note: 1.) The Detroit -­‐ Ann Arbor region is a compilaKon of two Metropolitan StaKsKcal Areas (MSA). 2.) Some data was suppressed for all MSAs in the industry employment field. Calculated value shown includes the midpoint of the employment range provided by source data. 3.) When esKmates were unavailable for major occupaKonal categories, an esKmate was compiled from the available 4-­‐digit data. This was performed for Life, physical, and social science occupaKons for Detroit-­‐Ann Arbor. 4.) The esKmate for Natural science managers (11-­‐9121) for the Chicago-­‐Naperville-­‐Joliet, IL-­‐IN-­‐WI MSA was calculated pro rata from the Chicago-­‐Naperville-­‐Joliet Metropolitan Division esKmate of these occupaKons. Source: Anderson Economic Group, LLC, 2010; US Bureau of Labor Sta0s0cs, Occupa0onal Employment Sta0s0cs Survey, 2010; US Bureau of Census, County Business PaJerns, 2010.


4. AutomoKve Industry and Technology

Total Technology Employment by Industry 350,000 300,000 250,000 200,000 150,000 100,000 50,000 -

Midwest

NaKonal


4. AutomoKve Industry and Technology

Total Technology Establishments 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 -

Midwest

NaKonal


4. AutomoKve Industry and Technology

Ø  Southeast Michigan has the highest concentraKon technology sector employment in the Midwest. Ø  Southeast Michigan has the highest number of advanced automoKve industry jobs in the US. Ø  Ranks first in share of total employment that works in the related technologies sector in the US. Ø  Emerging OpportuniKes: •  •  •

Advanced Manufacturing SimulaKon Engineering AlternaKve Energy


5. Concluding Remarks


5. Concluding Remarks Ø  Turkey and Michigan economic have a natural connecKon. Ø  The auto industry is probably a natural fit. Ø  Turkey’s growing labor force is a potenKal strength. Ø  Joint growth potenKal in other developing markets , especially in Southeastern Europe, Middle East, and Central Asia. Ø  CollaboraKon opportuniKes between Michigan and Turkish universiKes, and the industry. Technology and innovaKon will open new doors and opportuniKes! Ø  Turkish automoKve sector would decrease its costs on inputs by developing business relaKonships with the global automoKve manufacturers and suppliers in Michigan. That will help Turkey to fix some of its structural economic policies, such as current account balance.


East Lansing | Chicago www.AndersonEconomicGroup.com © Anderson Economic Group, LLC 2012 May only be replicated in enKrety with proper citaKon.


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