MEDFA N N U A L R E P O R T

2016

Fred ShellMEDF Co-Chair & President

LETTER FROM FRED SHELL

Success.

It’s often hard to de� ne when it comes to economic development, but due to a strong partnership

with companies across Michigan, 2015 was a very successful year for our state.

I thank you all for your continued support.

In 2015, Michigan led the nation in new automotive manufacturing jobs – more than 440,000

private sector jobs have been created since 2010 – and, more signi� cantly, Michigan has the

second most improved credit rating nationally, according to Bloomberg News.

But none of this would be possible without your company’s commitment and investment in

Michigan. The Foundation is dedicated to increasing opportunities for Michigan businesses and

their partners, and we’ll continue to support the success of business in our great state through

investment missions, industry events, market blitzes and international trade efforts.

At the MEDF, we don’t just help business. We connect passionate people to the right resources,

allowing them to do amazing things that make Michigan so successful. Thank you for all your

passion. Here’s to another tremendous year.

Sincerely,

Fred Shell

President MEDF

Mission

To promote economic development efforts in Michigan that create private

investment and increase jobs and wages. Support events that enhance business

retention and attraction efforts. Increase national and international awareness

of Michigan’s positive business climate including tax policy, regulatory reform

business development incentives and other measures.

Objectives

• Market Michigan’s business climate nationally and internationally

• Attract and maintain high-skilled and high-paying jobs to Michigan

• Attract highly-skilled workforce to Michigan’s business

• Support economic development activities

• Support Michigan tourism efforts

• Maintain low unemployment levels

MEDF MISSION & OBJECTIVES

2016 MEDF BOARD OF DIRECTORS & OFFICERS

Governor Rick Snyder Chairman (ex-of� cio)C/O Steve ArwoodMichigan Economic Development CorporationAssistant: Amiee Evans

Mr. Frederick E. Shell Co-Chairman and President Vice President, Corporate and Government AffairsDTE Energy CompanyAssistant: Margo Sauner

Mr. Steve Kurmas Treasurer, President & COODTE Energy DistributionAssistant: Karen Vucinaj

Ms. Christine Estereicher Assistant Treasurer Sr. Manager State RelationsFiat Chrysler Automobile US LLCCIMS 485-13-95Assistant: Angelica Labadie

Ms. Brooke L. BeebeDirector, State Government AffairsThe Dow Chemical Company

Ms. Dana DebelDirector of Government AffairsDelta Air Lines

Mr. Bart DiagPresident and CEOBaker College

Mr. Dennis MarvinCommunity Engagement ManagerConsumers Energy

Ms. Tricia KeithVice PresidentBlue Cross Blue Shield of MichiganAssistant: Raquel Parlow

Mr. Jim MurrayPresident, AT&T MichiganAssistant: Ann Pollard

Mr. D. Jeffrey Noel Corporate Vice President, Communications and Public Affairs Whirlpool CorporationAssistant: Bonnie Lewis

Mr. Brian O’Connell Regional Director, State Government RelationsGeneral Motors Corporation

Mr. Brad SimmonsDirector, Government & Stakeholder RelationsFord Motor CompanyAssistant: Sue Olsen

Ms. Donna ZalewskiDirector, Local Government & Community AffairsITC Holdings

Non-Voting Member

Ms. Jennifer LeFevre SecretaryLeFevre Consulting

North American International Auto Show January The MEDC used this opportunity to build deeper relationships with key automotive executives, which will lead to future investment and job growth within Michigan. We also worked with the governor’s team to capture the governor’s involvement at this event by providing professional photos of his annual � oor walk. We added this year inviting key site selectors to the Charity Preview and used this hosting opportunity to educate them on the advantages of Michigan for their clients’ business needs.

Trade/Investment Trips: Chile/Colombia (May), Canada (June), China (August), Japan/Germany (September), India (October) and Israel/Turkey (November)The governor and leadership from the MEDC participated in trade/investment missions to Canada, Chile, China,Colombia, Germany, India, Israel, Japan and Turkey to strengthen relationships with governments and industry groups. They also held meetings with companies already invested in Michigan, those courting future investment, and to support Michigan companies, local economic developers and universities that are currently operating or have overseas business interests. The trips were successful in laying the foundation for future investment in Michigan.

Sponsorship of The Detroit Regional Chamber’s 2015 Mackinac Policy Conference – MayThe Detroit Regional Chamber’s 2015 Mackinac Policy Conference continued its tradition as Michigan’s center

stage for driving statewide dialogue among top business leaders, government of� cials, innovative entrepreneurs and community advocates from all corners of the state.

Travel MichiganAs part of its PR and marketing efforts for FY 2015, Travel Michigan hosted a Travel Massive event in New York City on August 18. More than 75 travel industry enthusiasts (including in� uential travel writers and bloggers) attended the event held at Shinola’s Tribeca store, and more than 600,000 impressions were generated from social media engagement from the event. Local partners from Traverse City, Ann Arbor, Detroit and Grand Rapids also attended. While Michigan beer and wine were donated by Founder’s Brewing Co. and the Michigan Wine and Grape Industry Council, support from the Foundation allowed us to also offer a Vernors specialty cocktail to attendees.

Michigan Consular CorpsMichigan’s Consular Corps were invited to attend a private reception with the governor and administration of� cials at the governor’s Lansing residence. This annual reception honors the Consuls and provided an opportunity to thank them for their service to Michigan citizens and the international business community. This year, select members were also invited to attend the governor’s Inauguration Ceremony and invited as the governor’s guests to his State of the State address. This group continues to serve as one of the top promoters of the Michigan message overseas.

International Delegation HostingDuring 2015, we hosted several international delegation visits to Michigan. The size, length of stay and involvement of the MEDC varied from delegation to delegation. The typical hosting services provided to these groups are meals, transportation, hotel accommodations, coordination of the visit, meeting planning and facilitated introductions within Michigan. We normally partner with the local economic development groups to host these delegations.

2015 REPORT ON EVENTS

We also had the honor this year to host their Majesties King Willem-Alexander and Queen Maxima during their � rst of� cial visit to the U.S.

Pure Michigan 400 – August (Southwest Michigan)Michigan International Speedway (MIS) and Pure Michigan teamed up to host the Pure Michigan 400 NASCAR Sprint Cup race at MIS in August. The partnership brought the Pure Michigan message to millions nationwide who watched the Pure Michigan 400 on ESPN and to tens of thousands who came to MIS on race days. One of the Pure Michigan campaign’s main goals is to attract more visitors and investments to Michigan.

Site Consultant OutreachIn 2015, the MEDC continued our focus developing relation-ships with the site consultant industry and promoting oppor-tunities in Michigan. Our strategy included industry events and sponsorships, FAM tours, key market marketing blitzes and partner education opportunities. Through these efforts, we have seen the number of opportunities for new jobs and investment sourced through the site consultant industries continue to increase.

Industry Events We attended the International Asset Management Council’s Spring and Fall Forums, CoreNet Global Summit, TrustBelt Conference and Consultant Connect’s annual event. These events provide access to large numbers of consultants and site decision in� uencers as well as corporate real estate executives. We also sponsored ITRA’s (International Tenant Representative Association) conference in Detroit. This event hosted 43 consultants from around the globe.

FAM Tours The MEDC, in partnership with our local and utility partners, hosted four familiarization tours for consultants in 2015. Locally lead events were supported in Regions 5 and 9, and the MEDC hosted consultants in Region 2 at Bay Harbor. In partnership

with the Detroit Regional Chamber, we hosted consultants in region 10 for the North American International Auto Show and Gala. These events are one of the best ways for us to share the Pure Michigan story.

Marketing Blitzes The MEDC hosted two market blitzes in 2015. These events were held at Shinola in New York City and the World of Whirlpool in Chicago. During each of these events, the MEDC, eight local partners and three of our utility partners met with key consultants to share the Pure Michigan story. After a roundtable discussion and one-on-one meetings, we hosted the consultants at a reception with Governor Snyder and other Michigan business leaders. We also met with consultants in New York, Chicago, Atlanta and Dallas.

Partner Education We sponsored two educational events for our partners in 2015. The “Secrets of Site Selection” provided a full day of economic development education for 30 of our partners, focused on the process site consultants go through to site projects for their clients, taught by site consultants. We also sponsored 10 local partners to attend Consultant Connect’s annual event in Greenville, South Carolina.

Global Business Development Summit – (India) OctoberThe MEDC Global Business Development Team partnered with the MEDC Export and Pure Michigan Business Connect (PMBC) teams to organize and execute the � rst Global Business Development Summit. A strategic decision was made to approach Indian � rms with turnkey services for traditional FDI as well as U.S. market entry or growth through joint venture partnerships, the primary avenue taken by Indian � rms entering global markets. PMBC’s ability to offer custom JV partner searches is game-changing for the overall Indian investment strategy by bringing a product to Indian � rms that responds exactly to their needs. This approach absolutely sets Michigan apart from other regional U.S. and global competitors.

Trade/Investment Missions to Canada, China, Germany, Israel, Italy, Jordan, Mexico, Netherlands, Peru and QatarThe Michigan Economic Development Corporation has identi� ed signi� cant business opportunities in Canada, China, Germany, Israel, Italy, Jordan, Mexico, Netherlands, Peru and Qatar. The MEDC proposes that the Governor and Lt. Governor conduct trade/investment missions to Mexico and Peru to further strengthen relationships with companies already invested in Michigan, those courting future investment and to support Michigan companies, local economic developers and universities that are currently operating or have overseas business interests. The trips were successful in laying the foundation for future investment in Michigan.

International Delegation HostingDuring 2016, we plan to have Governor Snyder extend invitations to key of� cials and business leaders to visit Michigan. We see this as an opportunity to continue to promote Michigan on the international front. We expect to host 15 delegations in FY 2016. In FY 2015, six key dele-gations came to us from China. We expect to see this number increase as we continue to build relations in that market. We also expect to see an increase in delegation

from India as a result of the Lt. Governor’s trip there in October 2015.

North American International Auto Show – January 2016 (Detroit)Taking advantage of the international attention this premier automotive event draws, MEDC intends to host a reception that will showcase Michigan talent and innovation. We also will be hosting a large delegation from China (CCPIT) and are sponsoring the 2016 Annual China-U.S. Automotive Forum.

Travel Michigan Travel Michigan plans to hold two Travel Massive events, as well as four small group media familiarization tours in the current � scal year, similar to what was done in FY 2015.

Contributor Reception – TBDThe Governor will host a reception to honor current contributors to the MEDF. He will highlight his economic plan for Michigan and provide supporters of the MEDF with an opportunity to network.

Consular Corps Reception – TBD (Governor’s Residence, Lansing) Michigan’s Consular Corps will be invited to attend a private reception with the governor and administration of� cials at the governor’s Lansing residence, which will honor the Consuls and provide an opportunity to thank them for their service to Michigan citizens and the international business community. This year we seek to expand the event to a greater audience, reaching not only Michigan Corps members but focusing on the Chicago Consuls and Ambassadors who cover Michigan.

Site Consultant Outreach ActivitiesOur 2016 strategy will continue to focus on � rms whose core business is to provide site location services. Robert Wilson is

2016 PROPOSED EVENTS

assigned exclusively to this industry and focuses on cultivating relationships and educating site selectors on Michigan’s assets. In FY 16, this will be accomplished by continuing to participate in key events and hosting familiarization tours and market blitzes. Given MEDC’s budget reduction, collaboration and coordination with our local partners will be critical.

Industry Events CoreNet Global and the International Asset Management Council (IAMC) are well-respected industry associations. We will continue our membership in these organizations and participate in CoreNet’s fall summit and IAMC’s spring forum. One-on-one site selector meetings will be scheduled when possible.

FAM Tours Providing on the ground exposure to Michigan’s assets allows personal interaction with business leaders, community of� cials, workforce development experts, and university and college resources. The MEDC will host FAM (familiarization) tours around the North American International Auto Show and the Senior PGA Tournament.

Market Blitzes The MEDC will host one market blitz in New York. We will also participate in 2-3 Consultant Connect Summits which offer a cost-effective way to interact with consultants. Historically, our regional partners have hosted consultants in their region. We will support a limited number of these regional FAM tours during 2016.

International TradeThe MEDC International Trade team will lead 13 overseas trips during the FY 2016, including travel to Europe, Asia, Latin America and the Middle East.* These trips will focus on connecting Michigan companies with potential distrib-

utors, buyers and/or strategic partners through organized trade missions and participation at international trade shows. In each case, Michigan companies are supported by the MEDC foreign of� ces and/or other MEDC partners as they assess foreign market opportunities for the sale of their products and services. Through these trips and other export support services, it’s estimated that the International Trade Team will generate more than $340 million in facilitated export sales in FY 2016.

*Germany, the United Kingdom, China, India, Mexico, Brazil, Peru, Canada, Israel and Jordan; Dubai Air Show, Arab Health and Hanover Messe

2016 REVENUE & EXPENDITURES

Corporate  Contribu-on  

In-­‐Kind  

Interest  

Administra*on  

Events  

Protocol  

Administra*on  

Events  

Protocol  

REASONS WHY MICHIGAN MEANS BUSINESS

• Michigan is ranked as a Top 10 Pro-Business State by the American Economic Development Institute

• More than 440,000 private-sector jobs have been added since December 2010 ranking Michigan #5 in most private job creation1

• Michigan leads the nation with more than 140,000 new automotive manufacturing jobs since 20092

• Unemployment rate of 5.1% is on par with the nation3

• Detroit ranks #3 in the U.S. as a tech jobs “hotbed” according to the Oregon Of� ce of Economic Analysis

• According to Bloomberg, Michigan has the #2 most improved credit rating nationally

• For three consecutive years, site selection has ranked Michigan among the top seven states for major new and expanded facilities and is � rst among the Great Lakes states.

• Michigan’s GDP growth outpaced the nation from 2009-2015, with growth of 13.9% compared to 10.7%4

• Since 2010, global companies have invested $7.8 billion in capital projects across the state, creating nearly 35,000 new jobs5

• Michigan ranks #7 nationally for total export dollars at nearly $53.2 billion and #3 for exports to the United States’ 20 Free Trade Agreement partners at $36.4 billion6

1 Bureau of Labor Statistics, December 2010-June 20152 Center for Automotive Research, November 20153 Michigan Department of Technology, Management and Budget, February 20164 Bureau of Economic Analysis, 20145 FDImarkets.com, May 20156 International Trade Administration, TradeStatsExpress, 2015

AEPBorg WarnerMagna Services of America, Inc. Marathon Petroleum Company LLCTRAM Inc.Denso InternationalMeijerToyota Motor Engineering & ManufacturingDelta Dental Plan of Michigan John Brown Quicken LoansRobert Bosch Corporation AT&TBlue Cross Blue Shield of Michigan Dow Chemical Foundation ITC Holdings Corp.

WhirlpoolConsumers Energy Foundation Chrysler LLC Ford Motor CompanyGeneral Motors Foundation DTE Energy

Contact:Jennifer M. LeFevre • Executive Director517.282.1676 • jlefevre@puremedf.org

P.O. Box 13063 Lansing, MI 48901

2015 CONTRIBUTIONS

EVENT SPONSORSHIPS

Detroit Regional Chamber

IN-KIND CONTRIBUTIONS

Delta Air LinesMcCann Detroit