Michigan's Auto Industry (Coursework Sample)

Michigan’s Auto Industry
Student’s Name:
Tutor’s Name:
Course:
Date Due:
Introduction
Michigan is a state in the United States that is located in the Midwest. Michigan is characterized by three types of industries that constitute the state’s economy. These are manufacturing, tourism and agricultural industry. The total number of workers in Michigan State as estimated by the 2005-2009 American Survey estimate is roughly 5,007,456. The manufacturing industry appears to be the backbone of the state’s economy. In fact, Michigan is referred to as the capital of the automotive industry. This is because it houses three main automobile industry companies which are Chrysler LLC, Ford Motor Co and General Motors Corp. These three began in Michigan during the 20th century. Housing these three leading Automobile industries, Michigan contributes to approximately 23% of the total US economy (FRBC n.p). This paper will analyze various factors that make Michigan so significant in the history and present times of the state.
History of Automobile Industry in Michigan
Automobile industries began to spring up in Michigan in the mid years of the 20th century. The Ford Motor Company was established in Detroit back in the year 1903. It's mass productions of the Ford Model T made Detroit be pronounced the world leader in the auto industry. General Motors is also based in Detroit, whereas Chrysler is based in the neighboring Auburn Hills. While the Ford Motor Company is located in Detroit, its head quarters are in the nearby Dearborn town. Both Ford and General Motors Companies built huge manufacturing industries in the metropolitan area of Detroit thus making it an automobile industrial base. The large demand of military vehicles during the First World War was met with similar supply by these two key companies (TLPI 3-5).
Significance of the Auto Industry in Michigan
The automotive industry has supported Michigan’s economy in the past. In the year 1963, close to half of Michigan’s economy came from the manufacturing industry. A significant percentage of this is believed to have come from the automotive industry. During the recession period in 2009, manufacturing shares in US fell significantly, but the motor vehicle manufacturing remained significant in the total share. Over the past, the US economy would be experiencing structural change; the Michigan automobile industry would launch a cyclical comeback to the economy. This implies that Michigan has turned a victim of its early achievement in the automotive industry. Over the years, the Michigan auto industry has remained attractive to many employees even those who have no more than high school education (TLPI 7-9).
Currently, the Detroit region in Michigan State produces the highest number of trucks and cars in the entire US. In the year 2011, at least 1.9 million trucks and cars rolled off the assembly lines of the Michigan Automobile industries. The Michigan State houses 35 Original Equipment Manufacturer (OEM) component plants and 12 OEM assembly plants. There are close to 1300 automobile related establishments ‘suppliers included’ in Michigan. The automotive industry in Michigan remains extremely significant to the entire state due to its immense contribution towards the state’s economy. It is reported that, each year the automobile industry generates $70 billion and $500 billion in tax revenues and paychecks respectively. The three automotive companies channel out billions of dollars in terms of profits to the state’s economy every year (TLPI 8&9).
The Automotive industries in Michigan offer mass employment to industrial and mechanical engineers each year than any other industry. This factor has raised the number of university intakes to the engineering programs each academic year. Every one in five motor vehicle manufacturing engineer ‘in the US’ is employed by the automotive industries in Michigan. In fact, 20% of all US workers who are allied to the automotive industry are employed in Michigan. Since the dawn of 2010, the automotive industry in Michigan has developed more than 23, 000 employment opportunities which translate to a 20% increase. This is to mean that the automotive industry will increase its production twice that of the previous year (CUIS 23 & 24).
Conclusion
The automotive industry has remained significant in the history of Michigan. Similar significance is also realized in the present. The Michigan auto industry is made up of three main companies which are the Ford, Chrysler and General motors. Having being founded in the 20th century, these three companies have made a significant contribution to the Michigan economy. The auto industry contributes towards the Michigan economy in terms of revenue collection. This is through paychecks and tax revenues. Secondly, the auto industry offers employment to many workers from Michigan and across its borders. In terms of employment, the auto industry remains the leading employer in Michigan. It has been found out that the Michigan auto industry contributes close to 30% of the states’ economy. This is like t...