Spartans strengthen Michigan’s economy 

For most Michiganders, a successful state means more jobs, vibrant small businesses and industry-leading innovation in Michigan’s key sectors. Making that vision a reality takes collaboration, and Michigan State University has been a powerful partner.

Spartan researchers from across the university are helping automotive manufacturers adapt to electric vehicles, supporting Michigan farmers facing workforce shortages and giving communities tools to spark economic growth. Their work is driven by partnership with businesses, nonprofits and government agencies across the state. And the university as a whole is its own economic driver — every dollar invested in MSU returns $17 to Michigan’s economy.

Navigating shifting agricultural labor trends

Agriculture is Michigan’s second largest industry, employing 805,000 people, or 17.2% of the state’s population, and contributing $104.7 billion to its economy annually, according to the Michigan Economic Development Corporation. The agriculture industry is currently contending with a major labor shift: In the U.S., there are fewer farmworkers overall, and those who are working tend to be older.

Many farmers are turning to machines or hiring outside companies to get the work done, though not all agricultural sectors are able to do so, either due to the added costs or the nature of the crops they produce.

Zach Rutledge, an assistant professor of agricultural economics and Extension specialist in MSU’s College of Agriculture and Natural Resources, is using a grant from the U.S. Department of Agriculture’s National Institute of Food and Agriculture to assess farm labor challenges and help make the U.S. food supply chain stronger and more reliable.

He’s also examining how the decline in U.S.-based workers has impacted the number of workers farms hire through the H-2A program, which allows employers to temporarily hire nonimmigrants from different countries for agricultural services throughout the year. In Michigan, the pay for H-2A workers has been going up — it was $15.37 an hour in 2022, $17.34 in 2023, and now it’s $18.15.

“We want to understand both sides of the labor market. Workers face tough challenges like low pay and economic struggles, while farmers are trying to stay profitable and keep wages at a level that makes farming sustainable,” Rutledge says.

As part of this work, Rutledge is exploring whether offering health care benefits to farmworkers could boost productivity and profits for farmers. He’s also teaming up with a researcher from Arizona State University to study how job competition impacts workers and businesses like grocery stores.

“Having access to services such as health care is important for agricultural workers,” Rutledge says. “We found that it’s profit-enhancing for employers to offer health care. When health care is offered to employees, they tend to become more productive, and that’s obviously good for farms and makes them profitable.”

The findings from this research will be shared with farmers, the public and other experts in Michigan and beyond to help inform policy and business decisions.

Read more on the College of Agriculture and Natural Resources website.

Supporting Michigan’s automotive supply chain

The automotive industry is changing fast and many automakers struggle to keep pace. That’s why MSU and the University of Michigan teamed up — along with the Michigan Department of Labor and Opportunity and the Motor and Equipment Manufacturers Association — to help small- and medium-sized auto manufacturers in Michigan make the switch to electric vehicle parts and diversify their product lines.

This project, which is funded through the U.S. Department of Energy and lasts through 2026, will create a playbook for automakers filled with practical advice on new business opportunities, hiring and training workers, and finding funding to grow. The guide will be built using ideas from scientists, engineers and business leaders — and tested out with real companies to make sure it works. The effort is aligned with federal priorities to onshore manufacturing and supply chains to support the future of mobility and the U.S. automotive industry.

MSU Mobility and U-M’s battery experts will handle the technical side, and U-M will also offer training to help workers prepare for jobs in the electric vehicle world. They’re especially focused on supporting businesses in communities that don’t often get these kinds of resources.

“Thanks to this grant, businesses will have a key resource with critical info to help them embrace the future of electrification and the changing auto industry,” says Annick Anctil, assistant director of MSU’s Industrial Training and Assessment Center, which helps small- and medium-sized U.S. manufacturers and commercial buildings save energy, improve productivity and reduce waste by providing no-cost technical assessments conducted by a team of students and faculty.

The program will start small, working with a handful of companies before expanding. The hope is to create something that can help businesses across Michigan and maybe even beyond.

Leaders from both schools agree this project will help keep Michigan strong in the auto industry by giving local businesses the tools they need to succeed with electric cars and protect jobs.

By connecting technical innovation with real-world business strategies and workforce support, we’re helping to ensure that Michigan remains the engine of American mobility for generations to come,” says Judd Herzer, director of MSU Mobility.

Read more on MSUToday.

Transforming communities into thriving economic centers

Across Michigan, communities are working to bring new jobs, businesses and opportunities to their residents, and MSU is helping them make it happen.

Through the MSU EDA University Center for Regional Economic Innovation, or REI, Spartan researchers collaborate directly with local leaders to strengthen economies from the ground up. Supported by the U.S. Economic Development Administration, REI helps communities tackle big challenges with custom strategies that promote entrepreneurship, sustainable employment and equitable growth.

“We work with communities across the state of Michigan — from the Upper Peninsula to the Indiana and Ohio borders — to address areas identified by communities that could potentially create or retain jobs in the state of Michigan, helping them to identify opportunities and challenges for growth,” says Jenan Jondy, REI program coordinator.

REI is supported by a statewide network of over 7,000 public- and private-sector participants who co‑learn and co‑implement solutions through solicitations and collaboration. The REI Center’s current projects focus on advancing local economic resilience, community investment and workforce development across Michigan.

In Detroit, a Train-the-Trainer initiative is helping residents in underserved neighborhoods build AI literacy, boosting digital skills and preparing them for the workforce. In Flint, the BuyFlint program connects small businesses with procurement opportunities at large institutions, strengthening the local economy. Statewide, researchers are developing a model for agricultural innovation centers to address infrastructure and labor shortages in rural farming communities.

Other efforts focus on expanding access to capital through community investment funds, convening partners to explore sustainable financing strategies. MSU students also are getting involved by providing technical assistance to local governments across the state. These projects include optimizing land use in Beaverton, planning corridor development in Sterling Heights, revising signage regulations in Delhi Charter Township and revitalizing riverfront spaces in downtown Lansing.

“Partnering with MSU’s REI has been transformative in building power within our community. The Train-the-Trainer AI initiative has allowed us to break down the barriers around AI — once seen as inaccessible or taboo — and make it approachable,” says Yusef Bunchy Shakur, co-executive director of the Michigan Roundtable for Just Communities, a Detroit-based organization that works to end racism, discrimination and unfair systems by bringing together people of all ages to create equitable opportunity for all. “With their support, we’ve empowered local residents with the tools and knowledge they need to thrive in an increasingly digital world.”

Together, these projects promote inclusive economic development by pairing academic research with community-led solutions.

“It’s not us sitting behind closed doors and deciding what underserved communities in the state of Michigan need,” says Jondy. “Community members are coming to us with their needs, and we’re supporting them.”

Read more about the EDA University Center for Regional Economic Innovation.

Improving workplace disability inclusion

According to the U.S. Department of Labor’s Bureau of Labor Statistics, the employment rate for people with disabilities stands at just 21.3%, in contrast to 65.4% for people without disabilities.

Since 2014, Sriram Narayanan, Eli Broad Endowed Professor of Supply Chain Management in MSU’s Broad College of Business, has partnered with Peckham Inc., a Lansing nonprofit that employs people with disabilities on apparel production lines. What began as a student‑led lean manufacturing project blossomed into a $2 million grant from the National Science Foundation, or NSF, focused on developing strategies to help people with physical and mental disabilities gain sustainable employment.

A multidisciplinary group spanning Narayanan, Hung Jen Kuo and Rajiv Ranganathan, associate professors in the MSU College of Education, and Ranjan Mukherjee and Charles Owen, faculty in the MSU College of Engineering has adopted an “abilities-first” philosophy for the NSF-funded project.

The scholars are exploring three key strategies: identifying individual abilities, using augmented reality and robotics to support workers, and redesigning workflows to better fit diverse needs.

For instance, they’re testing technology that gives real‑time feedback to sewing operators. If someone strays outside the correct seam allowance, the system vibrates or slows the machine — similar to a car’s lane‑assist feature — to help improve accuracy and reduce waste.

Team members regularly engage with employees on the floor by attending introductory sewing classes, observing production lines and hosting meetings with Peckham and SourceAmerica, their broader nonprofit partner, to share progress and refine ideas.

“[The MSU researchers] really want to be on the ground meeting people with disabilities on the manufacturing team,” says Sarah George, director of mission initiatives at Peckham. “They spent a lot of time trying to deepen their understanding of how we do our work.”

While still in development, the solutions show promise not only for Peckham but for making manufacturing workplaces more inclusive across various industries.

“We’re building something greater together than anyone’s individual effort could do alone,” Narayanan says.

Read more in MSU’s Engaged Scholar newsletter and on the Broad College of Business website.

Federal funding for MSU research is crucial in powering Michigan’s economy by transforming big ideas into practical solutions. By collaborating directly with businesses and communities, Spartans are addressing current workforce needs and laying the foundation for future economic success.

Read more about how MSU research drives economic opportunity across Michigan and beyond.

For generations, Spartans have been changing the world through research. Federal funding helps power many of the discoveries that improve lives and keep America at the forefront of innovation and competitiveness. From lifesaving cancer treatments to solutions that advance technology, agriculture, energy and more, MSU researchers work every day to shape a better future for the people of Michigan and beyond. Learn more about MSU’s research impact powered by partnership with the federal government.