DETROIT — Normal Motors‘ chief economist is optimistic concerning the well being of the economic system and Michigan‘s place to win extra enterprise — together with from GM.

That is regardless of outcomes of the Michigan Financial Outlook Survey, launched final week, displaying a declined sentiment amongst corporations towards the enterprise surroundings in Michigan.

“I feel not solely are we not in a recession now… however that we’re seeing inflation declining and nonetheless robust economic system and labor market and that the chances of a comfortable touchdown are trying higher,” Elaine Buckberg mentioned throughout a Detroit Financial Membership occasion.

Buckberg additionally indicated that Michigan is a main contender for extra battery vegetation because the automaker makes the mammoth transition to electrical autos.

“Now we have extra meeting vegetation right here than anyplace else, so it might make sense that we must always have extra battery vegetation in or close to Michigan,” Buckberg advised Crain’s Detroit Enterprise, an affiliate of Automotive Information, after the occasion. “These choices have not been made, however the proximity of battery vegetation to meeting vegetation is tremendous essential.”

GM has introduced new battery vegetation in Lansing, Ohio and Tennessee, and one other is reportedly deliberate in Indiana.

“It might be incorrect to imagine that is the tip,” Buckberg mentioned. “There will probably be extra battery vegetation, and I do not imply one. There will probably be extra battery vegetation, and there will probably be extra EV meeting vegetation.”

Buckberg mentioned Michigan has a bonus not solely due to present meeting vegetation, but additionally due to proximity to the provision base and a robust, engineer-rich workforce.

Buckberg’s ideas have been echoed by Michigan Financial Improvement Corp. CEO Quentin Messer, additionally featured within the dialogue.

“Whether or not it is web site selectors, corporations steadily taking a look at Michigan, (there may be) this notion of group Michigan,” Messer mentioned. “There’s this perception that … relating to the enterprise surroundings, we’re collectively making an attempt to determine learn how to make that higher.”

Buckberg and Messer maintained optimistic views on Michigan’s financial future whilst corporations fear a few doable recession and the trajectory of the state.

The annual outlook survey, carried out by Baker Technique Group, confirmed a decline in enterprise sentiment by respondents’ solutions to 5 primary questions: whether or not Michigan is a good state for elevating a household, an important state for younger professionals, whether it is business-friendly, if it has a robust, vibrant economic system and whether it is heading in the right direction.

The largest drop was within the business-friendly class, which slipped six factors to 61 on a scale of 1-100.

Messer mentioned he thinks there may be an outdated notion of the state’s enterprise local weather. “Individuals have very dated perceptions,” he mentioned. “I feel folks had frozen Michigan in time.”

Buckberg mentioned she thinks the outcomes of the survey have been influenced by general adverse emotions towards the nationwide economic system and that there’s “no less than 50 p.c odds of a comfortable touchdown” because the Federal Reserve continues efforts to chill the economic system and inflation.

“It additionally creates one other problem that the final two recessions have been so excessive,” she mentioned. “If we have been going to enter a recession in 2023, over 90 p.c of economists suppose it might be short-lived.”

No matter financial challenges, Messer added, the state must do what’s in its management to draw companies as states to the south compete fiercely for a stake of the automotive future.

“We’re in a worldwide competitors,” Messer mentioned. “Nobody is giving anyone a house group low cost, whether or not it is Ford, GM, Stellantis … They’ve a set of shareholders for whom they’ve a fiduciary accountability, and the onus is on us to grasp that. Now we have a fiduciary accountability to women and men who pay taxes. However we’ve to be sure that we compete.”

Michigan does have a house subject benefit, although, no less than in GM’s case, Buckberg mentioned. Repurposing previous vegetation and websites within the state would have large financial benefits over constructing new elsewhere, corresponding to Ford Motor Co.’s $11 billion of investments in Kentucky and Tennessee.

“Greenfield (vegetation) provides actually years and billions of {dollars}, so utilizing our present websites is tremendously highly effective,” she mentioned.