Recent conversations in Lansing highlight an important reality for Michigan’s economy: long-term competitiveness will depend on how well the state aligns workforce development, housing availability, and economic development policy.

Last month, economic development leaders met with legislative staff from the Governor’s office. During the discussion, administration officials reaffirmed that economic development, talent development, and community development remain priorities, though policy movement is constrained by the realities of an election year and an estimated $2 billion state budget shortfall.

As a result, most legislative activity in the months ahead will center on negotiations around the FY27 state budget.

The Governor’s proposed budget includes several economic development adjustments, including reallocating $150 million from the SOAR Strategic Site Readiness Program toward broader site readiness efforts, adding $50 million for sites with committed end users, and continuing improvements to brownfield redevelopment and related development tools.

One notable omission from the proposal is funding for the Going PRO Talent Fund, one of Michigan’s most widely used workforce training programs. Conversations around the Capitol suggest that if the program is restored in the final budget, House Republicans may ultimately need to lead that effort during negotiations.

For employers across Michigan, the importance of the Going PRO program is clear.

The fund provides competitive grants that allow employers to invest in worker training and skill development. Across Southwest Michigan, companies in a wide range of industries have utilized the program.

Manufacturers such as Tenneco in Marshall, Micro-LAM in Portage, and American Axle & Manufacturing in Three Rivers have used Going PRO grants to train employees in advanced manufacturing techniques and specialized machining. Automation and engineering firms, including JR Automation in Stevensville and Pro Services in Portage, have used the program to strengthen technical talent pipelines.

Healthcare providers such as Spectrum Health Lakeland and Bronson South Haven Hospital have utilized the fund to train medical staff, while organizations like White Oaks Assisted Living in Lawton have used it to support training for direct care workers.

The program has also supported workforce development in industries such as food production and logistics. Companies, including St. Julian Wine Company, Coca-Cola North America in Paw Paw, and Flamm Pickle & Packing in Eau Claire, have invested in employee training through the program.

These workforce investments remain essential to Michigan’s long-term economic growth.

However, workforce development alone will not solve the state’s broader competitiveness challenges.

At a recent large and regional chambers meeting, leaders highlighted a growing concern: housing availability is increasingly a barrier to workforce growth.

Michigan has underproduced housing for more than a generation, while housing costs have risen significantly in recent years. Zoning rules and development processes often limit the types of housing that can be built, particularly smaller homes, duplexes, or workforce housing options near employment centers.

Recognizing this challenge, lawmakers have introduced the Michigan Housing Readiness Package to modernize zoning policies and expand housing supply. The legislation would allow duplexes in certain residential areas, permit accessory dwelling units, cap excessive parking requirements, and reduce minimum lot size requirements that can drive up development costs.

While these changes would not create immediate solutions, they would help communities gradually expand housing supply and create more options for workers and families.

At the same time, new polling from the Detroit Regional Chamber underscores the urgency of these issues. The survey found that many Michigan voters believe the state ranks near the middle nationally on measures such as income, educational attainment, and economic growth. In reality, Michigan ranks much lower on several key indicators, including per-capita income, educational attainment, and reading performance.

The polling also explored public attitudes toward data centers, which are becoming increasingly important in the modern economy as artificial intelligence and cloud computing drive demand for digital infrastructure. While many voters remain unfamiliar with the projects, those who are aware increasingly recognize their economic potential. By nearly a two-to-one margin, respondents said data centers are likely to bring economic benefits to Michigan through investment and job creation.

Taken together, these conversations highlight a broader challenge facing the state.

Employers need access to skilled workers. Workers need housing options near where jobs are being created. And communities must be prepared to support emerging industries and modern economic infrastructure.

For Michigan to remain competitive in the years ahead, policymakers will need to ensure that workforce programs like Going PRO, housing supply reforms, and strategic economic development investments are working together rather than in isolation.

Aligning these priorities will be critical not only for attracting new investment but also for ensuring Michigan communities remain places where businesses can grow and workers can build long-term careers.

 

Sean Moscynski is the director of public policy and strategic initiatives at Southwest Michigan First. In this role, he leads efforts to advance a regional public policy agenda through strategic partnerships, advocacy, and collaboration with elected officials, business leaders, and community stakeholders. His work focuses on supporting initiatives and policies that strengthen economic development and drive growth across Southwest Michigan.