New report highlights our strengths and vulnerabilities in the global automotive and mobility markets.

Michigan leads the nation in automotive manufacturing, and the industry is rapidly changing. A new State of Automobility 2025 report from the trade association MichAuto provides insights on Michigan’s role in the global market and what’s needed to remain competitive in the future. Below are highlights from the report.

Automotive’s economic contribution to the state

The automotive industry accounts for one in five Michigan jobs and contributes $348 billion to the state’s economy. We manufacture more cars than any other state in the nation; in 2024, Michigan produced 2 million light-duty vehicles. The next highest producer was Indiana with half as many.

Michigan’s strengths

With deeps roots in automotive technology, Michigan has been quick to bring mobility products into the fold. Mobility goes beyond automotives and covers additional ways to move people and goods, including EVs, autonomous vehicles and the infrastructure that supports transportation.

Michigan’s ability to serve the mobility sector is due in part to our concentration of talent, as we are #1 in the nation for engineering talent, and we exceed the national averages for mechanical engineers (4X the national average), tool and die makers (6X the national average), industrial engineers (3X the national average), mechanical engineering technologists and technicians (5X the national average) and model makers (13X the national average).

Additionally, automakers and suppliers continue to invest in Michigan. From 2020 to October 2025, $37 billion was committed to automobility efforts. This is $2 billion more than the second-leading state for automobility investment, Georgia.

Research is another strong suit for our state. The Research Universities for Michigan—known as RU4M and comprised of the University of Michigan, Michigan State University, Wayne State University and Michigan Technological University—provides opportunities for world-class research, education and innovation.

Threats to Michigan’s vehicle manufacturing leadership

MichAuto cites several factors that could threaten Michigan’s economic viability including production surges in other states, competition from China and infrastructure capacity.

Despite our concentration of talent, Michigan is facing a shortage of talent. An aging workforce with nearly one-quarter of manufacturing jobs held by workers 55 and older is a serious challenge. Another is the talent gap in annual degree completions and annual job openings for computer and information sciences, mechanical engineering and industrial engineering. The industry also needs people skilled in automation, data analysis and innovation.

The report also cites challenges in the K-12 education pipeline and declines in college enrollment. Many students struggle to meet proficiency standards and there is a negative perception of the industry among youth. Altogether, these factors may exacerbate a future talent shortage.

Future workforce needs

To sustain and grow Michigan’s automobility industry, the need for these high-demand, high wage jobs will grow through 2032: software developers, industrial machinery mechanics, industrial engineers, mechanical engineers and heavy/tractor-trailer truck drivers.

Expanding beyond automotive

As the automotive industry continues to develop, its reach goes deeper into mobility. Specifically, Michigan is advancing innovation in aerial mobility using advanced drone operations, maritime surface and sub-surface fleets, cybersecurity and aerospace and defense.

To stay competitive, the MichAuto report says Michigan, “… Must strengthen supply chains, continue to pursue EV investments and innovate the industry.”

For more insights about Michigan’s path forward, get the complete State of Automobility Report here.

 

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