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The Economic Impact of Local Energy Investment


When we talk about power produced by Michiganders, for Michiganders, we mean it. There’s a lot that goes into producing and delivering electricity and maintaining our electric infrastructure, reaching far beyond local energy providers to encompass a wide array of other businesses and industries.

Michigan’s energy infrastructure needs updating, maintenance, and expansion to keep energy reliable and affordable long-term. More than just helping protect reliability, however, investments made by local energy providers have a tremendous positive effect of our state’s economy – one that reverberates throughout Michigan.

Collectively, the jobs and businesses that connect to support energy generation and delivery in Michigan make up what is known as the energy supply chain. All of the interconnected business activity driven by the energy supply chain helps create a stronger Michigan economy.

Energy and Michigan’s Manufacturing Sector

One major component of Michigan’s energy supply chain is the manufacturing sector.

Manufacturing has been a bright spot in Michigan’s economic recovery and our economy historically. While many people automatically think “cars” when they think of manufacturing in Michigan, local manufacturers play a critical role in developing, maintaining, and improving our state’s electric infrastructure as well.

Building new power plants and generating units or making infrastructure improvements involves an array of products, parts, and machinery built by local manufacturers. From major plant components like boilers, turbines, and generators to parts for transmission substations, meters, and power lines – local manufacturing vendors and suppliers work with energy providers to strengthen and secure our entire electric system.

Both DTE Energy and Consumers Energy spend hundreds of millions of dollars every year with local contractors and manufacturers through the Pure Michigan Business Connect program. These business relationships help drive economic activity and job growth in local communities throughout the state.

Reliability that Benefits Us All

Electric infrastructure investments don’t just benefit local manufacturers by giving business a boost. Local manufacturers also benefit in turn from the increased reliability and resiliency of the electric grid to which they contribute.

Manufacturing is an energy-intensive industry. The need for reliable electricity is especially critical for Michigan’s automobile manufacturers, as we heard last year in legislative testimony before the Senate Energy and Technology Committee.

The Win-Win of Energy Infrastructure Investment

What’s the bottom line? Energy and manufacturing have a symbiotic relationship: investment in local energy supports a vibrant manufacturing sector, which in turn helps strengthen our local energy infrastructure.

When Michigan takes control of its energy future, our economy gets a boost as well. That’s why it’s so important to ensure energy infrastructure improvement and expansion takes place here in our state, supporting local jobs, revenue, and economic activity. That’s what energy produced by Michiganders for Michiganders is all about.

Watch for future blog posts in the coming weeks where we’ll discuss more of the businesses and industries in Michigan that are connected to the energy supply chain.

Have you seen any job or business growth in your area thanks to investment in our energy infrastructure? Let us know!