By Sandy K. Barauh, President and Chief Executive Officer, Detroit Regional Chamber

It is no secret that Michigan was the innovation capital of the nation with pioneering industrial prowess in automotive, furniture, and finance. The efforts of our companies and skilled workers fueled Michigan’s trajectory as a global powerhouse, attracted capital and talent from around the world, and created untold wealth that we continue to benefit from today.

However, it is time to be frank with ourselves; Michigan, despite our ample advantages, is no longer a leader.

“In fact, the Detroit Regional Chamber is calling a spade a spade — Michigan’s house is on fire. Our state ranks 49th of the 50 states in population growth, 40th in per capita income, 44th in fourth-grade reading, and 45th in unemployment. Turning these statistics around is a necessity — not a “nice-to-do.”

– Sandy K. Baruah, President and Chief Executive Officer, Detroit Regional Chamber

Fewer and Fewer People Will Be Needed in Factories of the Future

As Michigan navigates the innovation economy, we face a growing challenge. While the impact of AI is not yet clearly understood, there is no doubt that it will disrupt careers, industries, and our economy. While manufacturing excellence can, and should continue to be central to Michigan’s ethos, the march of technology means that fewer and fewer people will be needed in the factories of the future. Many of the skillsets linked to our state’s 20th-century prosperity are obsolete or will be soon.

‘K -12 + 2’ Mindset Needs to Replace Education System That is Poorly Serving Students and Teachers

The future that awaits all of us has a clear message: persons and regions with 21st-century skills will be the ones that prosper. Those without will fall behind — as Michigan is in the process of doing. This means that Michigan needs to embrace a culture of education and skilled training beyond high school— what the Chamber calls a “K – 12 + 2” mindset.

Certainly, our K-12 public education system needs reform. Michigan has among the highest per-pupil expenditures in the nation, yet our student outcomes are among the lowest. This is not because we do not have great teachers, but rather we have an outdated, process-based (not outcome-based) system that serves our students and teachers poorly.

Michiganians Do Not Sufficiently Value Post-Secondary Education or Training

But beyond the hard work of dramatically improving our public K-12 education led by organizations like Launch Michigan and innovative ideas from former Gov. Rick Snyder, we need to address a critical cultural challenge: Michiganians do not sufficiently value postsecondary education or training. Too many of our Michigan neighbors believe a high school education with some on-the-job raining is sufficient to build a family and create a life with sufficient opportunity for the long term.

To address this challenge, the Chamber has adopted two primary top-line messages:

• “Michigan’s House is on Fire.” Through the Chamber’s statewide polling with The Glengariff
  Group, we know that Michiganians consider our state mid-pack in key economic standings, when in reality we are largely in the bottom 10. Until our fellow citizens realize the degree to which we have fallen, it will be impossible to chart a productive path forward.
  
  
• “K – 12 + 2 Must Be the Education Expectation.” A key element of breaking Michigan out of our decades-long decline — across both Democratic and Republican legislatures and governors since 2000 — is to work to change the cultural mindset of our neighbors across Michigan. We need to move to the expectation that exists in high-performing states — that a vast majority of citizens strive and succeed in formalized education or professional training upon high school graduation.

Without Leading in Talent and Education — There Is No Plan B for Achieving a Prosperous Future for Michigan

There is no such thing as a highly prosperous region that is not also highly educated.

Michigan’s leaders need to reach across the aisle and create a policy framework that endures amid the inevitable flips between Democratic and Republican control of the Governor’s chair and the state legislature.

This will provide our citizens (and future citizens) and businesses with the employment-friendly economic growth environment that all regions strive for. And Michigan needs this before it falls to 50th in per capita income, something inconceivable not that long ago.

Without becoming a leading talent and education state, there is no Plan B for our prosperity.

This piece was originally published in the Detroit Regional Chamber’s May 2026 Detroiter Magazine. View the original article.