Why the Future of Business is Being Built in Michigan

For businesses looking to lessen their exposure to climate-related risks, Michigan offers a compelling combination of natural resilience and an increasing prioritization of economic development and climate planning.

It’s no secret that the effects of climate change are intensifying. According to the National Oceanic and Atmospheric Association (NOAA), the past decade has brought the ten warmest years on record, leading to more severe climate change-related weather events and long-term shifting climates.

As the frequency of climate change-related weather events rises, so does the cost of doing business. According to a survey conducted by MIT Technology Review in partnership with the Michigan Economic Development Corporation (MEDC), a majority of business executives have felt the negative impacts of climate change on their business in the form of increased operational costs (64%), rising insurance premiums (63%), disruption to business operations (61%), and damage to physical infrastructure (55%).

Business executives are responding with climate risk preparation and giving more consideration to relocation. Most (81%) executives say that climate change preparedness is important to their business, and 24% have already relocated physical infrastructure due to climate change risks.

While climate change will affect all businesses, the extent can be mitigated by a company’s location. The Midwest and Northeast regions are often referred to as climate havens, areas with low exposure to climate-related risks. Business executives agree, with nearly half of respondents (47%) naming the Midwest as the region least exposed to climate change risk in the survey.

As companies rethink where and how they operate in the face of climate change, executives will need more than the assurance of a natural climate haven — they’ll want to work in a region where climate-planning resources and natural resources are available and facilitated. A majority (71%) of business executives named a location with climate planning resources as the most attractive feature in a potential new business location’s ability to mitigate climate change risks.

For businesses looking to lessen their exposure to climate-related risks, Michigan offers a compelling combination of natural resilience and an increasing prioritization of economic development and climate planning.

This article is published in Expansion Solutions Magazine.

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