1. Region 6 Progress Report –What we have heard and found George Erickcek Brian Pittelko W.E. Upjohn Institute for Employment Research September 11, 2014

2. Progress Report What have we heard on the Listening Tour so far? Further analysis of the region – Traffic patterns – The region’s demand and supply of talent – Water Back to the Future Preview of the Oct 2 nd and 3 rd charette 2

3. What have we heard? Challenges: Lack of funding to provide services to meet demand. This sentiment was heard across all activities. Lack of a skilled workforce, a growing shortage of workers, and low wages. Interesting comment: employers underestimate the cost of turnovers and loss of quality work due to their low wages. A disconnect with Flint. Overall, we found that on the east side of the region, individuals looked North and South, not East and West. 3

4. What have we heard? Challenges: Lack of regional identity. The Thumb is the thumb; St. Clair is tied to Macomb; Shiawassee is focused on Shiawassee; Flint is Flint. Lack of post-secondary education in the Thumb area Rail service and natural gas in the Thumb Public transportation especially in rural areas 4

5. What have we heard? Strengths (some surprises): Collaboration among and within counties – Existing partnerships and sharing resources Colleges, education, workforce development system Good mix of rural, urban, suburban population – Good communities to raise families 5

6. What have we heard? Asset: I-69, I-75, I-94 Skilled workforce Strong networkingRail and bridge to Canada Colleges and education systemNice place to live and raise family Shared history with auto industrySharing services and resources Water pipelineGeographic and population diversity Diversity of businessesSome value-added activity in agriculture Airport 6

7. What have we heard? One Big Thing: An incubator center; providing help to startups Transportation and logistics growth and expansion (public transportation, highways, rail, airport, water pipeline) Better educated and skilled workforce More funding Collaboration – getting over distrust and hurdles 7

8. Who we need to talk to Craig Coney, Genesee/Shiawassee Michigan Works! Inc. Troy Napier, Baker College Bill Kaufman, County Administrator of St. Clair Jim Wilson, Director of Blue Water Transit Greg Alexander, Drain Commissioner, Sandusky Mike McCarten, St. Clair Mental Health Services James Freed, City Manager, Port Huron MacKenzie Price, Huron County Community Foundation Joan Nagelkirk, Sanilac County Community Foundation Rand Maiers, Community Foundation for St. Clair County Ken Micklash, Tuscola County Community Foundation 8

9. Traffic Count Data for I-69 vs. I-94 Port Huron, St. Clair County Area MDOT 2012 Average Daily Traffic (ADT) Maps 9

10. Traffic count data is per day (24-hour period), travelling in both directions 10

11. Map of the SE Michigan area, note that the ADT counts on I-69 increase to 20-30k west of Imlay City and remain at that level all the way to Perry, in Shiawassee county 11

12. Traffic on I-94 is in the mid 20k’s to 40k between the I-69/I-94 interchange and Port Huron. Traffic dips to around 22k further south on I-94. Traffic on I-69 is between 12-14k 12

13. The region’s employers are hiring more educated workers Source: Census QWI 2012. 13

14. The educational attainment levels of the region’s residents is low Source: Census ACS 2008–2012. 14

15. In short the region is “importing” talent Source: Census ACS 2008–2012. 15

16. A high percentage of the region’s minority population is struggling in poverty Source: Census ACS 2008–2012. 16

17. A.L.I.C.E. A sset L imited, I ncome C onstrained, E mployed A project to examine what it costs to survive for working people in Michigan Unlike the federal poverty rate, the ALICE budget looks at local conditions including housing, childcare, food, transportation, healthcare, taxes, and miscellaneous expenses to build a household survival budget 17

18. The monthly budget and necessary income for a 2- adult, 2-child (one infant, one in childcare) family GeneseeHuronLapeerSt. ClairSanilacShiawasseeTuscola Housing646584798 587631584 Child care1,2101,0591,1881,196 1,1001,075 Food592 Transport.681 805 681 Health care518 458 518 Misc.395367424425386379369 Taxes308237401404284266243 Monthly total 4,3504,0394,6664,6784,2454,1674,063 Annual total52,20248,46655,99256,13550,93550,00748,754 Hourly wage26.1024.2328.0028.0725.4725.0024.38 Source: A.L.I.C.E. Report, http://www.unitedwayalice.org/michigan/ 18

19. A quarter of the region’s residents are just getting by financially Source: A.L.I.C.E. Report, http://www.unitedwayalice.org/michigan/ 19

20. Karegnondi Water Authority Started construction at Lake Huron water pumping station on June 28, 2013 Water line is expected to be finished in 2015 Provides water to southern Sanilac Co., Lapeer Co., and the city of Flint 85 million gallons of water per day pumped from Lake Huron 20

22. What happens in the Detroit MSA matters Economic activity in Detroit I-69 CorridorThumb Area 3,000 auto assembly jobs Employment33040 Personal income$31.0 million$3.7 million 3,000 management jobs Employment16016 Personal income$20.0 million$2.1 million Note: Personal income includes commuters. 22

23. Population and household impact of job creation in the thumb Opening of an auto supplier creating 100 jobs 23 Source: Upjohn Institute REMI model.

24. Population and household impact of job creation in the I-69 corridor Opening of an auto supplier creating 100 jobs 24 Source: Upjohn Institute REMI model.

25. The charette on October 2 nd and 3 rd – What to expect Data driven and supported – What more do you want us to explore? Highly interactive – Our biggest concerns are avoiding group think and path dependency 25