I’ve been living in Shanghai since May, and before I left home, I looked for a gift that is unique to my hometown to give to my host, as is customary in Chinese culture. However, after searching the gift shop at the Bavarian Inn Restaurant in my hometown of Frankenmuth, I was amazed to find that I could not find anything that didn’t have “Made in China” branded on it. Finally settling on a pair of salt shakers that were at least made in Germany, I thought to myself “man, nothing is made in America anymore!”

This reality is hitting Michigan hard today. As we lose our manufacturing giants, how can we not help but feel like we are letting “them” take “our” businesses? “Our” jobs? This globalization thing is crippling our state’s economy, isn’t it?
It’s all true. Our jobs are being taken. Our state’s economy is being left behind. But it is not going to change; the world is not going to slow down.

So what are we going to do about it?

Myself and the team at Spotlight Michigan think it is time for Michigan to shake things up. While living here in Shanghai, I’ve found that if we don’t change soon, we’ll never be able to catch up later. Everybody else is moving too fast. China is only getting bigger and stronger. Its society is becoming more advanced. Its professional management is improving, and its manufacturing and production sector is pumping out everything from toy cars to real ones at a staggering pace.

So why not embrace it? Why not move with the global tide? It is time to see the writing on the wall: adapt or die. Manufacturing and production jobs are leaving the state whether we like it or not. And if we don’t invest our time and money into other areas, such as innovative ventures and 21st century education, we will start to lose ground to countries like China in these areas as well, maybe sooner than we think.

And here’s the best part: This change doesn’t have to be a bad thing. Think about it. If  countries like China, Laos, and Vietnam, get our “old jobs,” that saves businesses time and money here in Michigan to pursue other endeavors for dynamic growth (i.e. R&D). While in Tsingtao a car is being made, CEOs, managers and business developers in Detroit could be working on creating the “what’s next” – innovation that will produce more value here in our state.

Not only will this prepare us to be competitive now, but it will also help us create better partnerships with players in the world economy, particularly with China, a country that has already become the world’s largest car consumer. The Big Three are already learning this lesson. Although sales went down in China after the financial crisis, they are still making a large profit over here as their outlays fail at home. With 1.3 billion Chinese (officially), it is critical that global businesses reach this large consumer base.

To respond to the global economy, our state must stop enacting short term policies that only “minimize the damage.” We need to start thinking in the long term. Our state needs to encourage companies to move their business production to other places if it’s more efficient, and not put up barriers. This may result in lost jobs in the short term; but in the long term, it will create an economy that is making newer products and creating better jobs that pay more and create more value. It will take time, but eventually it will lay the foundation for a new Michigan that will be prepared to do global and dynamic business in the 21st Century.

- Dan Redford