Dive Brief:
- Ford Motor Co., JPMorgan Chase and the state of Michigan are establishing a $3 billion program that addresses manufacturing and supply chain challenges by providing companies with financing, workforce support and other resources to scale production.
- The Michigan Launchpad for Industrial Innovation and Transformation, or Michigan LIFT, creates and facilitates an “open call” system that connects suppliers with industry buyers to tackle needs in robotics and automation, critical minerals, semiconductors and other priority areas, according to a news release. Industry buyers do not have to be in the state to participate.
- Ford and JPMorgan Chase have each pledged up to $1 billion to the program to advance workforce development and finance industries dependent on critical minerals, respectively. Michigan Central, Newlab and the state’s economic development group aim to add another $1 billion in commitments from buyers over the next 10 years.
Dive Insight:
As manufacturers navigate labor and capital challenges, the public sector is stepping up to bolster workforce training programs and fund facility expansions and equipment upgrades as part of broader reshoring efforts.
Under the Trump administration, the Small Business Administration has made it easier for small manufacturers to access loans. Federal agencies are issuing grants to support battery materials processing, ship building and other efforts. Meanwhile, public-private partnerships are finding ways to accelerate growth.
“Michigan LIFT is about helping solve real manufacturing challenges faster,” Ford President and CEO Jim Farley said in a statement. “It connects innovators, suppliers and manufacturers with the support they need to scale.”
The program grew out of the Michigan Resiliency Summit hosted by JPMorgan Chase and the state of Michigan in Detroit in June, where industrial, financial and government leaders identified operational and technological hurdles.
The state established Michigan LIFT as a public-private model to overcome those challenges. The Michigan Economic Development Corp. will deploy strategies and resources to support commercial scaling, according to a news release.
Michigan Central, a 30-acre technology and cultural hub in Detroit, is offering space for physical testing and implementation to help companies move from prototype to production. Startup incubator Newlab also plans to contribute $20 million of in-kind support for translating demand into opportunities for high-growth companies.
In addition to the program funds, Ford Philanthropy and JPMorgan Chase are donating $550,000 to Focus: Hope, a Detroit nonprofit that offers education and job training. The grant will go toward teaching manufacturing skills, robotics and welding, as well as training program support, according to the release.
Ford has made workforce development a top priority in recent years. The automaker last year brought together leaders for an event focused on the skilled trades gap, titled Accelerate the Essential Economy. According an accompanying report, for every 100 skilled trades workers needed, training programs are producing 55 people.
The company is hosting its second annual event today.
