June 15, 2026
Michigan has long been known for automotive manufacturing, but the state’s automotive economy extends far beyond assembly plants. A broader ecosystem of industries supplies materials, components, engineering expertise, distribution, sales, and vehicle services. Understanding how those industries are changing is critical for understanding the future of Michigan’s economy.
In a new report, Erik Vasilauskas and Michael Horrigan examine how many jobs in Michigan are connected to the automotive supply chain today, how that employment has changed since the early 2000s, and how it may shift through 2030. The report was produced for the Community and Worker Economic Transition Office of the Michigan Department of Labor and Economic Opportunity, with collaboration from the Michigan Center for Data and Analytics and the Center for Automotive Research.
The authors define Michigan’s automotive supply chain as 38 industries organized into three stages: Upstream, Core Automotive, and Downstream. This approach captures not only vehicle and parts manufacturing, but also the suppliers, engineering and design services, sales, repair, and logistics industries that support the broader automotive ecosystem.
The report finds that Michigan’s automotive manufacturing base has declined substantially since 2001, especially in industries directly responsible for motor vehicle and parts production. Core Automotive employment fell by 43 percent between 2001 and 2024, while Upstream employment declined by 10 percent. Downstream employment, including sales, service, and logistics, was more resilient, rising by 5.5 percent over the same period.
The changes are in line with a sector that is consolidating assembly activity and moving toward higher capital intensity and productivity. Additionally, the industry has moved in step with the U.S. economy as a whole – Manufacturing has become less labor intensive and the Professional and Technical Services sector is taking a larger role.
Looking ahead, the authors project a modest decline in total automotive-related employment through 2030 under their baseline Moody’s Analytics scenario. But the larger story is a shift in the kinds of jobs that remain. Employment in occupations requiring a bachelor’s degree or higher is projected to grow, while the largest losses are concentrated among occupations with the lowest formal education and training requirements. Skilled trades and technical roles remain central to the industry, particularly as vehicles and production systems become more technologically complex.
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