Prepared by Public Sector Consultants publicsectorconsultants.com
Prepared for MichAuto michauto.org
Executive Summary
MichAuto engaged Public Sector Consultants (PSC) to conduct an economic contribution study of Michigan’s mobility industry and each of its component clusters, including automotive manufacturing, transportation services, mobility support, and other transportation vehicles and products. This study builds on a previous economic contribution report conducted by PSC in 2021. It includes an expanded definition to reflect the mobility industry’s evolving technology cluster and an enhanced methodology that more accurately captures direct contributions and the resulting ripple effects. IMPLAN software was used to model the mobility industries.1
As demand for electric and autonomous vehicles, public transportation, infrastructure, and logistics solutions grows, so does the potential for job creation across sectors such as manufacturing, engineering, and software development. The mobility cluster promotes high-value jobs and attracts investments that drive local and global economies. The following key findings demonstrate the mobility industry’s vast presence in Michigan and the state’s potential to expand the supply chains supporting the industry’s advancing technologies. In 2022, Michigan’s mobility industry:2
• Directly employed more than 631,000 workers statewide, which supported an additional 525,000 indirect and induced jobs, resulting in a total of almost 1.2 million jobs, or 20 percent of Michigan employment
• Directly and indirectly paid nearly $83 billion in compensation (salary and benefits for payroll employees and the income of self-employed and proprietors), at an average of $71,547
• Directly and indirectly contributed nearly $146 billion in value-added to the state’s economy, which is approximately 23 percent of Michigan’s gross state product (GSP)
• Directly and indirectly contributed nearly $348 billion in gross economic output (the sum of valueadded and total intermediate inputs), which is 27 percent of Michigan’s gross economic output
• Directly and indirectly generated more than $14 billion in state and local taxes
• Among key industries in the automotive sector, automobile manufacturing experienced growth of over 8,900 in direct employment between 2019 and 2022, and the wholesale of motor vehicle and motor vehicle parts and supplies industry grew by over 1,900 jobs
• Scenic and sightseeing transportation is also making a comeback with an increase of 1,200 in direct employment after travel and tourism’s hiatus during the pandemic years
These contributions provide insights into how the mobility industry, as it exists today, adds value to the statewide economy. This differs from an economic impact analysis, which would measure the economic effects stemming from hypothetical or real changes occurring in the industry and consider opportunity costs.
1 See Appendix A: IMPLAN Model, Data, and Methodology
2 Report uses 2022 IMPLAN data, the most current available
Introduction
Detroit famously put the world on wheels, and the businesses that arose across Michigan to supply the burgeoning auto industry and support the moving of people and goods broadly termed the mobility industry have been economically and socially important for more than a century. As the United States continues to transition to future mobility technologies, the state plays a pivotal role throughout the industry and its supply chains. Through increased investments in advanced battery production, component manufacturing, and electric powertrains, as well as mobilityfocused research and development (R&D) and workforce reskilling to meet the demands of evolving technologies, Michigan is setting the economic stage for growth and a shift toward electrification and automation. The following report, commissioned by MichAuto, showcases the extent to which the mobility industry impacts Michigan businesses and residents through its economic contributions.
As the United States continues to transition to future mobility technologies, the state plays a pivotal role throughout the industry and its supply chains.
PSC previously completed a study of Michigan’s mobility industry based on 2019 data, which estimated economic contributions amounting to 1.1 million jobs and $304 billion in gross economic output statewide (PSC 2021).
MichAuto now seeks to build upon that work to assess the impact of the broader mobility sector. The mobility sector is rapidly evolving in Michigan and across the globe, and everyone from industry insiders to media pundits has predicted a range of economic and societal impacts. While there are numerous predictions about these effects, determining and defining what industries make up Michigan’s mobility sector is essential for conducting additional research and analysis. This report expands on the definition of mobility used for the 2021 analysis, and includes an updated methodology, for which PSC partnered with economist James Barrett of Barrett Economics, a specialist in modeling the intersection of energy and environment with economics and finance for the last 20 years. 3 ,4
PSC assisted MichAuto to augment the previous definition of the mobility sector to better capture technology- and innovation-forward activities. The expanded definition includes components of smart mobility, connected and automated vehicles, electrification, infrastructure, and R&D, and serves as the basis for assessing the economic contribution and related impacts of Michigan’s mobility sector. This report estimates the mobility industry’s economic contributions to the state via employment, labor income, valueadded, and gross economic output. Due to the expanded definition and changes in methodology, the ability to compare these results to the 2021 report is limited.
Defining the Mobility Industry
For the purposes of this report, the mobility industry refers to the production and distribution of goods and provision of services that support the movement of people and products. While this is a broad definition, it represents the reality of mobility a wide-ranging industry that requires significant resources. Some resources are apparent, such as automobiles and airplanes, but others, such as telecommunication services and insurance, are not prominently discussed as core to the mobility industry. While definitions have typically focused on more widely recognized sectors such as autonomous vehicles, connectivity,
3 Report uses 2022 IMPLAN data, the most current available
4 A detailed methodology, along with more information on IMPLAN, is provided in Appendix A.
electrification, and smart mobility inclusion of those less apparent but relevant sectors is essential to capturing a more comprehensive view of the industry’s contributions
For the previous contribution study, a workgroup of industry experts was selected to determine which sixdigit NAICS codes should be included as part of the mobility industry definition. For this report, MichAuto and PSC broadened the previous definition by identifying relevant industries for addition in these key areas: battery, composite materials, and semiconductor manufacturing; infrastructure and technology; and professional and technical services.5 6
Mobility Categories
Once defined, industry sectors were grouped into four mobility categories: automotive sector, other transportation vehicles and products, transportation services, and mobility support services. Findings are reported in each of these groupings, as well as for the overall mobility industry.7
The automotive sector includes industries related to automotive body, vehicle, and vehicle parts and equipment manufacturing; automotive vehicle and parts dealers, stores, and wholesalers; and automotive repair and maintenance.
Other transportation vehicles and products include industries related to the manufacturing of other transportation vehicles such as aircraft, rail systems, industrial trucks, and military vehicles. It also includes codes related to the manufacturing of parts that contribute to vehicle assembly including battery manufacturing, composite manufacturing, computer manufacturing, and semiconductor manufacturing.
Transportation services include industries related to transporting people or objects from one location to another. This includes industries such as air, bus, railroad, and ship transport, as well as couriers and messengers and the postal service.
Mobility support services include industries that support the mobility industry such as gasoline and petroleum stations, insurance carriers, car rental companies, engineering and design services, telecommunication services, and R&D facilities.
Methodology
After finalizing an updated definition for mobility, PSC converted the six-digit NAICS codes into IMPLAN’s 546 industry codes. Those industry codes were then separated into two types those that directly contribute (either wholly or partially) to the mobility industry and those that indirectly contribute to the industry.8 After estimating for appropriate employment and output levels, mobility industries were modeled in IMPLAN, which estimates for economic effects of industry activity.
Direct industries are economic activities directly contributing to the mobility industry. These were modeled using 100 percent economic activity levels in IMPLAN through an economic contribution event, which removes feedback linkages to avoid buybacks to the industry being analyzed. Examples of direct industries include automobile manufacturing and motor vehicle body manufacturing.
5 A full list of NAICS codes, along with their corresponding IMPLAN codes, included in the mobility definition is provided in Appendix B.
6 Newly included industries are listed in Appendix C.
7 A full list of included IMPLAN industry codes by category is provided in Appendix D.
8 A list of IMPLAN codes by contribution and analysis type is provided in Appendix E.
Partial direct industries required parsing of employment due to the inclusion of additional unrelated activities in the IMPLAN industry code (e.g., IMPLAN’s industry code for property and casualty insurance includes several other insurance carriers such as medical, dental, homeowners, etc.). After estimating for mobility-related employment most of these numbers were modeled using the “industry employment” event, which allows for feedback linkages to generate indirect activity within the same industry. Two industries were modeled as economic contribution events with estimated portions of mobility-related employment. Examples of partial direct industries include wholesale machinery, equipment, and supplies and insurance carriers.9
Indirect industries are support and input activities for direct mobility industries. To model these appropriately, PSC first estimated the level of Michigan output in these industries demanded and absorbed by U.S. domestic buyers in the automotive sector. We modeled these levels of production as “industry output” events, which allows for feedback linkages to each respective industry. This method captures the inand out-of-state business-to-business (B2B) demand from direct mobility industries nationwide and resulting spin-off activity in Michigan, while excluding activities not related to mobility. Examples of indirect mobility industries include battery manufacturing and satellite telecommunications resellers, and all other telecommunications.
Economic Contribution Results
This economic contribution analysis reflects the value of mobility industry–related economic activity through direct, indirect, and induced effects. The entire mobility industry directly employs people throughout the state and contributes to Michigan’s economy; this is known as a direct effect. Direct economic activity necessitates the purchase of goods and services in Michigan, particularly along the industry supply chain, which stimulates further job creation and economic activity; this is known as an indirect effect. Through these direct and indirect activities, employee wages are generated and spent in the local economy on items like groceries, housing, and utilities. This local spending supports additional jobs, income, value-added, and output in the state and is referred to as the induced economic effect. The indirect and induced effects are also sometimes called multiplier or spin-off effects. Spin-off effects gradually decline as spending occurs outside the region (via imports from other countries or U.S. states), is placed in savings, or is paid in taxes.
Gross economic output is the broadest measure of economic contribution; it is the sum of value-added and intermediate inputs such as energy, raw materials, and other goods and services used in the production and distribution of mobility goods and services.
This report focuses on employment, labor income, value-added, and gross economic output. Employment includes employees under payroll, those who are self-employed, and proprietors (unincorporated business owners). Labor income is salary and benefits of payroll employees as well as income of the self-employed and proprietors. Value-added is the sum of labor income, taxes on production and imports (TOPI), and other property income, such as corporate profits and corresponds with Michigan’s GSP. It represents the value created in the production and distribution of goods and provision of services in the mobility sector. Finally, gross economic output is the broadest measure of economic contribution; it is the sum of value-added and intermediate inputs such as energy, raw materials, and other goods and services used in the production and distribution of mobility goods and services.
9 Appendix A provides more information on the modeling of the partial direct sectors in IMPLAN.
The statewide mobility industry economic activity presented in this section includes statewide tax contributions and the top-20 industries contributing to employment in Michigan. In addition, this section includes the mobility industry economic activity of each of the four mobility categories, which when combined, equals statewide activity.
Statewide Mobility Industry Economic Activity
In 2022, employment in the mobility industry helped generate total direct, indirect, and induced employment of close to 1.2 million people in the state, approximately 20 percent of Michigan’s total employment. Direct labor income was nearly $49 billion, with indirect labor income at nearly $18 billion and induced labor income at nearly $17 billion, for a total of nearly $83 billion. Direct and indirect employees are compensated at higher levels than induced employees, which reflects the industries impacted. Average compensation is $76,858 for direct mobility employees and $75,736 for indirect mobility employees, compared to $56,843 for induced mobility employees.
In 2022, employment in the mobility industry helped generate total direct, indirect, and induced employment of close to 1.2 million people in the state, approximately 20 percent of Michigan’s total employment.
Meanwhile, the mobility industry directly contributed more than $89 billion in value-added, with indirect industries contributing more than $26 billion and induced industries contributing more than $30 billion, for a total of nearly $146 billion in value-added, or around 23 percent of Michigan’s 2022 GSP. Finally, the mobility industry’s total gross economic output was nearly $348 billion in 2022, which represents 27 percent of Michigan’s gross economic output (Exhibit 1).
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
EXHIBIT 1. 2022 Statewide Economic Contribution of the Mobility Industry
Tax Contributions
The mobility industry also contributes to state and municipal governments through various tax structures, including business income, property, sales, and employee personal income taxes. Employees pay state and federal income taxes as well as property taxes through their local governments. In addition to this direct impact, businesses that are indirectly supported by the mobility industry also contribute to public funds through similar tax structures. The mobility industry directly and indirectly contributed more than $14 billion in total state and local taxes, the largest contributions of which came from business TOPI (excluding sales taxes), followed by sales taxes and household income taxes (Exhibit 2).
EXHIBIT 2. The Mobility Industry’s State and Local Tax Contributions
Type of Tax
(fish/hunt)
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
Top Industries Supported by Employment
Michigan’s mobility industry supports many sectors through its purchases of goods and services as well as local spending by direct and indirect employees. The industry contributing the most employment in Michigan’s mobility industry is truck transportation at 69,652 jobs, followed closely by couriers and messengers, then automotive repair and maintenance (Exhibit 3). IMPLAN sector 421 couriers and messengers has grown substantially in its contribution to the mobility industry’s direct employment since the previous report, in which it accounted for around 28,500 jobs. This IMPLAN industry is made up of mostly delivery services, a growing industry that includes grocery and restaurant delivery services and delivery of parcels and letters by companies outside of the U.S. Postal Service, such as Amazon, FedEx, and UPS.
Thirteen of the top-20 industries by employment include direct employment only. This is because these were part of the direct industries modeled using 100 percent economic activity levels in IMPLAN through an economic contribution event, removing feedback linkages to avoid buybacks to the industry being
analyzed. Those industries with indirect or induced employment show the number of jobs supported through B2B transactions and household spending, respectively. 10
EXHIBIT 3. Top-20 Industries, 2022 Total Employment
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data 10 For top-ten industries by employment type, see Appendix F.
Statewide Mobility Industry Economic Activity by Mobility Category
Exhibit 4 shows the breakdown of total mobility industry jobs by the four key categories of analysis
EXHIBIT 4. Employment Contribution by Category
Other Transportation and Vehicle Products
Source: IMPLAN 2022 data
Industries in the automotive sector made up half of the overall employment contributions to the mobility industry, followed by 30 percent in transportation services, 13 percent in mobility support services, and 7 percent in other transportation and vehicle products. The automotive sector made up a slightly lower percentage of the total direct employment at 46 percent, while transportation services made up 38 percent of that total number (Exhibit 5).
EXHIBIT 5. Percentage of Employment Contribution by Category
Note: N varied based on employment type.
Source: IMPLAN 2022 data
Automotive Sector
The automotive sector category includes the manufacturing of cars, light trucks and utility vehicles, heavyduty trucks, truck and travel trailers, motor homes, campers, automobile bodies, and individual parts and equipment. It also contains vehicle and parts dealers and wholesalers, which include conventional automotive dealers (including new and used cars and parts), recreational vehicle dealers, all other automotive dealers, automotive merchant wholesalers, and automotive parts stores (including parts, accessories, and tires). Finally, the sector is also composed of repair and maintenance, which includes the repair and maintenance of mechanical components, electrical and exhaust systems, transmissions, body and paint components, automobile interiors, glass, and fluid changes. The components of the automotive sector outlined here match those in the previous economic contribution report.
In 2022, this sector directly employed more than 288,200 people statewide and indirectly supported another 287,800 jobs a total of more than 576,000 (10 percent of Michigan’s total employment). The large indirect and induced employment figures indicate a multiplier effect of about two, where each direct job supports an additional job in the sector. Total labor income was $46 billion, of which $26.7 billion was direct and $19.4 billion was indirect and induced. Average compensation was more than $79,900 higher than the mobility industry average of $71,547.
The automotive sector directly generated nearly $49 billion in value-added, resulting in more than $81 billion in total value-added, or 13 percent of Michigan’s GSP. Finally, the automotive sector generated a total of $227 billion in gross economic output, approximately 18 percent of state gross economic output (Exhibit 6).
EXHIBIT 6. 2022 Statewide Economic Contribution, Automotive Sector
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
Direct Employment Changes in the Automotive Sector Over Time
Changes from the economic contribution in 2019 can only be compared to direct employment estimates in the automotive sector. This is due to changes in the modeling of the industries in IMPLAN (to produce results with a higher degree of accuracy and a more realistic picture of contribution) 11 We can compare direct employment between reports within the automotive group because the sector’s industry definition was largely unchanged (aside from the shift from 2017 NAICS and 2022 NAICS codes).12
11 Industries and industry groups were modeled together in one simulation, as opposed to separate simulations. Modeling industries together in IMPLAN limits the possibility of double- or over-counting employment and dollars in the spin-off effects. An added benefit to modeling industries this way is the ability to aggregate or disaggregate group or industry results to paint a complete picture of mobility or any desired set of group components.
12 Small changes in employment may have resulted from the shift in NAICS codes between 2017 and 2022, but any changes are likely negligible.
Exhibit 7 shows direct employment in the traditional automotive manufacturing industries (NAICS codes 3361, 3362, and 3363), as well as in the automotive sector as a whole. While motor vehicle manufacturing experienced employment growth of about 7,000 between 2019 and 2022, there was some contraction in the parts manufacturing and motor vehicle body and trailer manufacturing industries. This employment loss reflects consternation among industry suppliers during the pandemic years. Overall, traditional automotive firms have nearly though not entirely recovered (174,627 in 2019 and 172,096 in 2022). This nearly rebounded employment is also reflected in the entire automotive sector, with 2022 employment estimates of more than 288,000, closing in on the 2019 estimated employment figure of nearly 292,000. 13
EXHIBIT 7. Statewide Direct Employment Contribution for the Automotive Sector Over Time
Note: Totals may not sum due to rounding
Sources: IMPLAN 2017, 2019, and 2022 data
Transportation Services
The transportation sector comprises all services that move people, freight, and goods for a variety of commercial and personal reasons. This includes air, rail, water, truck, public transit, and ground transportation, as well as sightseeing, couriers and messengers, the U.S. Postal Service, armored car services, and ambulatory and rescue services.
In 2022, this sector directly employed nearly 239,000 people statewide, bringing total employment to over 350,000 people–6 percent of Michigan’s employment. This is the second largest category after the automotive sector category, which likely reflects Michigan’s large land mass, connections to the Great Lakes, and its prevalence of manufacturing activities, which require considerable freight and goods transportation. Indeed, truck transportation is the largest direct employer in the mobility sector.
Direct labor income was $13.5 billion, with indirect and induced labor income at nearly $6.6 billion, for a total of more than $20 billion. Average compensation was $57,307. This figure is much lower than the overall mobility industry average, which is expected given higher levels of service-oriented activities. Total valueadded of the transportation sector was $30.4 billion, or 5 percent of GSP, while total gross economic output was $56.1 billion, or 4 percent of state gross economic output (Exhibit 8).
13 See Appendix G for
EXHIBIT 8. 2022 Statewide Economic Contribution, Transportation Services
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
Mobility Support Services
The mobility support sector comprises services that facilitate the movement of people and goods; it is critical to the other three mobility subcategories. These sectors include computer programming and system design services, management consulting services, engineering and design services, R&D, and wireless and satellite communications. While these sectors are seldom considered part of the mobility sector, they are essential to its function. For example, the increasing connectivity of the automotive sector, other transport vehicles and products, and transportation services means that wireless and satellite telecommunications are becoming fundamental to sector operations. Also included in this category are automotive driving schools, automotive rental and leasing, automotive insurance, gas stations, travel agencies and tour operators.
In 2022, this sector directly employed more than 66,000 people statewide, bringing total employment to more than 148,000 people in Michigan–3 percent of Michigan employment. This is the third largest employment category within the mobility industry. Total labor income was $9.8 billion, with average compensation at $66,067. Value-added was $23.1 billion, or around 4 percent of GSP, while total gross economic output was $41.1 billion, or 3 percent of state gross economic output (Exhibit 9).
EXHIBIT 9. 2022 Statewide Economic Contribution, Mobility Support
Note: Totals may not sum due to rounding
Source: IMPLAN 2022 data
Other Transportation Vehicles and Products
The other transport vehicle and products sector consists of passenger, industrial, and recreational vehicles and products (excluding the automotive sector) that move or help move people, goods, and freight. This sector includes the manufacturing or building of aircraft, railroad stock, ships, boats, military vehicles, elevators, conveyors, and moving stairways, industrial trucks, trailers, and stackers, navigational and search equipment, cranes, hoists, and monorail systems, fluid meters and counting devices, motorcycles, bicycles, tires, and other products (e.g., all-terrain vehicles, golf carts, snowmobiles). It also includes the manufacturing or building of corresponding parts and equipment, such as battery, composite, and semiconductor manufacturing. Finally, the sector includes other vehicle, product, and parts merchant wholesalers.
Despite the extensive list of industries included, this sector represents only a small portion of Michigan’s employment and economy. It directly employs around 38,000 people, leading to just over 82,400 in total employment, or 1 percent of Michigan’s total employment. Given limited employment, overall labor income is relatively low at $6.9 billion, though average direct compensation is $83,514, higher than the overall mobility and automobile sector averages. Value-added was $10.9 billion 2 percent of GSP while gross economic output was $23.8 billion, or 2 percent of Michigan’s gross economic output (Exhibit 10).
EXHIBIT 10. 2022 Statewide Economic Contribution, Other Transportation Vehicles and Products
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
References
IMPLAN model 2022 data. “Model Region: Michigan.” Huntersville: IMPLAN Group.
Lightcast. October 2024. Industry Table, Employment in Michigan: Lightcast Q3 2024 Data Set. https://lightcast.io/
National Association of Insurance Commissioners. August 2024. “2023 Market Share Reports for Property/Casualty Groups and Companies by State and Countrywide.” United States. https://content.naic.org/sites/default/files/publication-msr-pb-property-casualty.pdf
Public Sector Consultants. March 26, 2021. Mobility Industry’s Economic Contribution to Michigan. https://michauto.org/economic-contribution-report/
Appendix A: IMPLAN Model, Data, and Methodology
IMPLAN Modeling Software
The estimated economic contributions in this report were created using the IMPLAN economic model an input-output (I-O) model of the economy. I-O models trace spending as it moves through the economy to show how spending flows through interdependent industries to meet demand. IMPLAN was developed by the U.S. Department of Agriculture in the 1970s and was further developed in the 1980s through a partnership with the University of Minnesota. IMPLAN has been used in thousands of studies since it was first created. Government agencies, universities, and private institutions have used the model to estimate economic impacts, including the Environmental Protection Agency, Booz Allen Hamilton, Ernst & Young, and many others.
IMPLAN is currently owned by IMPLAN Group LLC in Huntersville, North Carolina. IMPLAN uses 546 industry classifications to model the economy and can be used to model economic activity at the state, county, and zip code level. The software accounts for trade flows between industries in the study area and provides estimates of the multiplier effects of the initial industry spending and employment.
This analysis uses the IMPLAN I-O modeling system to estimate the employment and economic activity the mobility industry generates in Michigan. The economic contribution is split into the following categories:
• Direct effect: The direct employment and spending of the mobility industry in Michigan.
• Indirect effect: The employment and spending generated in Michigan by the direct mobility industry’s purchases of goods and services.
• Induced effect: The effect on the local economy from household spending of those directly or indirectly employed by the mobility industry.
Data
The IMPLAN analysis uses 2022 data from publicly available data sources, including the U.S. Bureau of Labor Statistics (Quarterly Census of Employment and Wages), the U.S. Bureau of Economic Analysis (regional economic accounts and national income and product accounts), and the U.S. Census Bureau’s County Business Patterns. IMPLAN also includes detailed industry-level data from the North American Industry Classification System, aggregating those NAICS codes into IMPLAN’s own 546 industries for analysis in its modeling software.
Methodology: Contribution Analysis
Modeling the contribution of the mobility industry to the state of Michigan began with mapping each of the 146 NAICS codes included in the definition to IMPLAN’s industry groupings. To properly model the industries, PSC divided the NAICS codes into two groupings: direct contributors (either wholly and partially) and indirect contributors.
Direct Industries
Direct contributors include businesses that are directly engaged in the production, assembly, selling, or repair and maintenance of automobiles; motor homes; recreational vehicles; boats, motorcycles, and ATVs;
and travel trailers and campers. Some of IMPLAN’s industry groups are one-to-one matches with the sixdigit NAICS code, while others aggregate multiple six-digit NAICS codes. The former necessitated the parsing of employment to capture only mobility-related activities; these industries are referred to as being partially direct. Most direct industries, with exception for a few, were modeled using the “economic contribution” event in IMPLAN, which restricts feedback linkages in the supply chain so as not to overcount employment or other economic contributions. Industries in which mobility employment comprised less than 50 percent of the total IMPLAN group’s employment were modeled as “industry employment” events to allow for feedback linkages in the supply chain.
Partially Direct Industries
For six IMPLAN groups, only a portion of the employment was modeled, due to the groups’ composition of several industries, many of which are unrelated to mobility (Exhibit A1). For example, automotive driving schools and flight training are grouped in IMPLAN’s “other education services,” which includes other industry activities such as sports instruction, art and dance schools, and vocational training, among others. To do this, PSC estimated the proportion of mobility-related employment for each IMPLAN group using Lightcast’s employment estimates at the six-digit NAICS code level. This resulted in partial industries for the six IMPLAN sectors, which were modeled as either industry contribution or industry employment events.1
EXHIBIT A1. IMPLAN Sector Descriptions
IMPLAN Sector Description Total NAICS Codes
423820, 423830,423840, 423850,423860
444 Insurance carriers, except direct life
524114, 524126, 524127, 524128, 524130
474 Travel arrangement and reservation services 561510, 561520, 561591, 561599 561510, 561520
475 Investigation and security services
561612, 561613, 561621, 561622
482 Other educational services 611410, 611420, 611430, 611511, 611512, 611513, 611519, 611610, 611620, 611630, 611691, 611692, 611699, 611710 611512; 611692
489 Other ambulatory healthcare services 621910, 621991, 621999 621910
industry employment
1 Lightcast data were used to inform employment estimates for partial industries. When more than half of the IMPLAN group was comprised of mobilityrelated NAICS employment they were modeled as “industry contribution” events using the estimated percentage. For IMPLAN groups that had a small presence of mobility employment and were comprised of multiple nonmobility-related NAICS, we estimated for employment levels. We modeled these as “industry employment” events in IMPLAN (allowing for industry buybacks). The use of levels over percentages here simply provides more confidence in the number being modeled due to the utilization of the “industry employment” event, and because of the high presence of nonmobility activity among some of the IMPLAN groups.
2
Additionally, PSC further refined the automotive insurance portion under NAICS code 524126, which was included in the model under IMPLAN sector 444. Since many non-automotive-related insurance products (e.g., home, malpractice, crop) were included in NAICS code 524126, PSC collected automotive insurance and other insurance premium data on Michigan from the National Association of Insurance Commissioners to accurately estimate mobility-related employment. Research findings indicated that automotive insurance represented around 50 percent of NAICS code 524126.
Indirect Industries
Some of the industries in the mobility definition were treated as indirect contributors to mobility. These industries include support activities that feed into the assembly and production of mobility products and services, such as engineering and industrial design, computer programming and design, battery and semiconductor manufacturing, and rubber and composites manufacturing. These were treated as “industry output” events to allow for feedback linkages in the supply chains.
Before modeling indirect industries, PSC estimated the level of gross output from Michigan’s indirect mobility industries consumed by direct mobility industries outside of the state (excluding foreign exports), representing the level of national demand in the mobility space satisfied by Michigan businesses. This was done using data from IMPLAN on commodity output nationwide and in Michigan. This method is new to the 2024 report and more accurately captures Michigan’s contribution to mobility without overstating the benefits.
PSC modeled each mobility industry in IMPLAN within one modeling scenario, and tagged industries with their corresponding industry categorization (i.e., mobility support services, transportation services). This allowed PSC to isolate and provide results by mobility group and allows the reader to understand the share of statewide economic contributions from each mobility category.2
Appendix B: Mobility Definition NAICS and IMPLAN Codes
Appendix C: Expanded Mobility Definition
MichAuto and PSC used the list of NAICS codes from the previous report and built on the definition of the mobility industry by identifying relevant industries for addition in these key areas of expansion:1
• Battery manufacturing: Batteries and their component parts enable the electrification of vehicles and are central to sustainability, efficiency, and technological innovation.
• Composite manufacturing: Composite manufacturing through the production of plastics and rubbers help to advance industry innovations in the lightweighting of vehicles, better fuel efficiencies and performance, and standards of safety and durability.
• Semiconductor manufacturing: Semiconductors are a crucial component for the development of electric and autonomous vehicles because they help to power components through battery management systems, sensor integrations, and data processing and security, to name a few.
• Infrastructure and technology: Smart infrastructures, safety systems, connectivity, and data management and analytics for testing sites all play a crucial role in the advancement of mobility.
• Professional and technical services: Industries from this sector that are vital to mobility include several areas such as research and development, testing labs and facilities, logistics consulting, engineering services, customer computer programming and design, and industrial design.
This process resulted in the inclusion of 31 new NAICS codes, or 28 new IMPLAN codes, in the mobility definition (Exhibit C1)
EXHIBIT C1.
NAICS code included in an IMPLAN Code from the previous definition
Impact of Expanded Mobility Definition
PSC tagged the added codes as “new” in the IMPLAN model, allowing for filtering of results based only on those codes. All but one of the new IMPLAN codes were modeled as indirect industries using an industry output event. The other new code wholesale petroleum and petroleum products was modeled as a direct industry through an economic contribution event. While it was determined to be important to include these additional codes, as of 2022 they only account for small percentage of the mobility industry’s overall economic contribution to Michigan 4 percent of employment and labor income and 3 percent of valueadded and gross economic output (Exhibit C2). Looking at these industries separately in the future will allow MichAuto to measure growth in these areas over time.
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
Appendix D: IMPLAN Codes by Mobility Category
Appendix E: IMPLAN Codes as Modeled for Analysis
Appendix F: Top-Ten Industries by Employment Type
The industry contributing the most direct employment in Michigan’s mobility industry is truck transportation at 69,652 jobs, followed closely by couriers and messengers, and automotive repair and maintenance (Exhibit F1).
EXHIBIT F1
Source: IMPLAN 2022 data
Some of the largest, most affected indirect industries in terms of employment include employment services, real estate, companies and enterprise management, insurance agencies, and warehousing and storage (Exhibit F2).
EXHIBIT F2. Top-Ten Industries, 2022 Indirect Employment
476:
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
The most affected induced industries in terms of employment include hospitals, restaurants, physician offices, and real estate (Exhibit F3).
EXHIBIT F3. Top-Ten Industries, 2022 Induced Employment
Note: Totals may not sum due to rounding.
Source: IMPLAN 2022 data
Appendix G: Comparison of 2022 Top -Ten Direct Automotive Sector Employment to 2019 Employment
The industries contributing the most direct employment in Michigan’s mobility industry in 2022 are shown in Exhibit G1 alongside the employment numbers for those industries in the previous report. The largest change was in the couriers and messengers industry, where employment jumped from 28,456 jobs to 69,433 jobs. The next largest increase in employment occurred in the automobile manufacturing industry, which showed an increase of 8,911 jobs between 2019 and 2022. Industries with significant decreases in employment from 2019 to 2022 included transit and ground passenger transportation and motor vehicle metal stamping.
EXHIBIT G1. Top-Ten Industries for Employment in 2022, 2019 Comparison
512:
420: Scenic and sightseeing transportation and
Sources: Public Sector Consultants (2021); IMPLAN 2022 data
This project is part of a partnership to support MichAuto's High-Tech Talent Strategy to strengthen Michigan's global competitiveness in the automotive, mobility, and technologies industries. The broader initiative is being funded by a grant through the State of Michigan's Mobility Futures Initiative with a goal of growing high-tech talent in Michigan and bringing to life the Michigan Office of Future Mobility and Electrification's MI Future Mobility Plan
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