Posted: Apr 11, 2010 at 5:55 AM [Apr 11, 2010]

Eliminating parochialism is critical to Michigan's economic recovery

by Nathan Bomey

Parochialism is poison to economic development.

That's why it’s encouraging to see organizations like Ann Arbor SPARK, the University of Michigan and Ann Arbor resident Doug Rothwell’s Business Leaders for Michigan actively seeking to unite the state’s disparate regional economic development efforts.

That’s not to say that everyone’s embracing unity, of course. But I get the sense that Michigan is close to discarding its historical tensions: Detroit versus the suburbs, western Michigan versus eastern Michigan, and others. We can’t afford to cling to dysfunctional behavior.

Business Leaders for Michigan CEO Doug Rothwell

I’ve argued before that the most disturbing legacy of Michigan’s economic collapse is the effect it’s had on the state’s brand. Michigan is haunted by its global image: an unfortunate mix of abandoned warehouses, reckless corporate giants and political squabbling.

Yet we have a chance to slowly reverse that image. And it starts with unity.

Michael Finney, CEO of SPARK, has emphasized the importance of recognizing that Michigan’s regional destinations need to recognize that intrastate squabbling won’t get us anywhere.

“Where there are opportunities to be supportive of each other, we should be, as opposed to fighting to keep one project going to another community,” Finney said.

The growth of each individual community in Michigan generally boosts the state’s brand - and improvements in the state’s image affect all of us.

Here’s a concrete example: The city of Holland on Michigan’s west coast is quickly becoming an epicenter for electric vehicle battery production.

Holland has landed two major battery plants over the last year: A $220 million project by Johnson Controls-Saft and a $303 million project by Korean firm LG Chem, which is supplying lithium cells to General Motors for use in the Chevrolet Volt.

Holland’s success accelerates Michigan’s efforts to earn a label as a global leader in battery technology and production.

As Michigan builds awareness for its capabilities in the battery sector, every region wins. Ann Arbor, for example, has much to gain. Established battery firm A123Systems and U-M battery start-up Sakti3 are among several companies relying heavily on the region’s alternative propulsion talent.

As the state adds battery materials suppliers, local companies reap benefits, because a shorter distance means lower transportation costs and more collaborative opportunities.

U-M, for one, recognizes the importance of acknowledging the economic impact of the west side of the state.

The U-M Board of Regents on Thursday will host its monthly meeting at the Amway Grand Plaza Hotel in downtown Grand Rapids. The university has 1,112 students from Kent County, 613 from Kalamazoo County and 403 from Ottawa County.

Those students may not stay in Ann Arbor - but their impact on Michigan’s economic revival will ultimately benefit this region.

Obviously we’d like to keep those students in Ann Arbor. Similarly, it would be nice if every business expansion landed within Washtenaw County’s borders.

But that’s not realistic. Instead, let’s support the state’s recovery - and we’ll all benefit.

Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com or follow him on Twitter. You can also subscribe to AnnArbor.com Business Review's weekly e-newsletter or the upcoming breaking business news e-newsletter.