The Impact of Federal Policies on Michigan's Tech and Engineering Jobs
At Vital Tech Solutions, we pride ourselves on forming “win-win” partnerships between top workplaces and exceptional Information Technology and Engineering professionals. As we continue to bridge the gap between organizational talent needs and the brightest technology professionals, it’s essential to consider the broader context in which our industry operates. Recent federal policies are shaping the landscape of Michigan’s job market, particularly in the tech and engineering sectors. These changes are not just abstract legislative actions; they directly influence our state’s economic health and the opportunities available to our professionals.
Federal EV Policies and Their Implications
The Biden-Harris Administration has passed critical legislation, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, which invest significantly in the electric vehicle (EV) sector. These acts aim to bolster U.S. manufacturing and supply chains, facilitating a shift towards electric transportation. Key policy pillars include:
Purchase Incentives: Tax credits for EVs reduce upfront costs, spurring market growth.
Charging Infrastructure Funding: Significant investments to build out a national network of EV chargers.
Federal Fleet Electrification: Goals to electrify federal vehicle fleets, including USPS vehicles.
EV Manufacturing and Supply Chain Funding: Grants and tax credits to support EV manufacturing.
What This Means for Michigan's Auto Industry
Michigan, home to the “Big Three” automakers (GM, Ford, and Stellantis), stands at the forefront of this transformation. The shift to electric vehicles presents both opportunities and challenges for our state’s job market. As Doug Hart, Vital Tech’s Director of Operations, noted, “We had an opportunity to listen to Mary Barra, Chair & CEO of General Motors, at a recent Detroit Economic Club meeting, where she stated that GM is ‘balancing between an EV world and an internal combustion engine world,’ which we know is true for all of the automakers in Michigan, not just the Big Three.” This balance is crucial as the industry navigates the path to a more sustainable future.
Opportunities
Job Creation: Research suggests that Michigan could create 56,000 additional auto manufacturing jobs by 2030 if it fully embraces EVs. This includes direct jobs in manufacturing, indirect jobs in the supply chain, and induced jobs resulting from increased economic activity.
Cost Savings: Michigan EV owners could save $40 billion cumulatively by 2040 due to lower vehicle purchasing, fuel, and maintenance costs. These savings could be reinvested into the local economy, creating additional jobs.
Health Benefits: Reduced air pollution from a shift to EVs could prevent 4,700 pollution-related deaths, 97,400 asthma attacks, and 466,000 lost workdays by 2050.
Challenges
Job Displacement: The transition to EVs, which require fewer parts and different manufacturing processes, could threaten existing jobs in traditional auto manufacturing. It’s crucial to have retraining programs and policies to support displaced workers.
Infrastructure Needs: Building out charging infrastructure and ensuring that it is accessible to all communities is a significant undertaking that requires coordinated efforts and substantial investment. Making sure there’s a robust charging infrastructure will go a long way toward minimizing “charging anxiety” and helping drive the adoption of EVs.
The Role of the Big Three and Tesla
GM is committed to selling only EVs by 2035. This bold move requires significant changes in manufacturing processes and workforce skills. GM’s transition is expected to create new jobs in battery manufacturing and EV assembly, contributing to Michigan’s economic growth.
Ford has invested over $50 billion in EVs globally through 2026, with plans to manufacture 600,000 EVs by 2024 and 2 million by 2026. Ford’s strategy includes scaling a profitable EV business and ensuring widespread adoption as costs become more competitive with traditional vehicles.
Stellantis plans to release its first battery-electric vehicle in 2025 and transition to an all-electric lineup by 2028. This shift underscores the importance of maintaining a mix of EVs and gas-electric hybrids to cater to different market segments.
Tesla’s expansion into Michigan, including making its Supercharger network available to non-Tesla EVs, represents a significant shift in the EV market landscape. Tesla’s presence can drive competition and innovation, further boosting Michigan’s role in the EV industry.
Statistics: The Broader Impact
Economic Growth: The global EV market is projected to grow to $906.7 billion by 2028, with a steady annual growth rate of 9.82%.
Job Creation: The EV transition could add 56,000 jobs in Michigan’s auto manufacturing sector by 2030.
Cost Savings: Michigan EV owners could save $40 billion by 2040, potentially creating over 25,000 additional jobs when these savings are reinvested into the economy.
Conclusion
The shift to electric vehicles, driven by federal policies, presents a transformative opportunity for Michigan’s tech and engineering sectors. At Vital Tech Solutions, we are committed to navigating these changes by providing comprehensive and flexible Workforce Management Solutions. Our goal is to connect the right-fit talent with right-fit opportunities, ensuring that Michigan remains a leader in the automotive industry and that our clients benefit from the evolving landscape.
Vital Tech Solutions will continue to support Michigan’s transition to an EV future by:
Staff Augmentation: Providing top talent to meet the evolving needs of the auto industry.
Vendor Management / MSP: Streamlining processes to enhance efficiency and cost-effectiveness.
RPO: Offering a full recruitment lifecycle to ensure the best candidates are placed in the right roles.
Direct Hire / Executive Search: Partnering with organizations to identify and secure top-tier talent for critical positions.
As we empower people, enable technology, and develop solutions, we are confident that Michigan’s auto industry will thrive in this new era of electric transportation.