Michigan is a hot contender for federal infrastructure investment, thanks to its legacy in the manufacturing industry, the public education opportunities and its policy leaders, according to the U.S. Secretary of Commerce Gina Raimondo.
“When I think of places in America that are worthy of investment, Michigan is at the top of that list,” Raimondo said Thursday.
Raimondo spoke with Awenate Cobbina, chairperson of the Michigan Economic Development Corp. Executive Committee on the third day of the Detroit Regional Chamber’s annual Mackinac Policy Conference.
While Raimondo is a former Rhode Island governor, Cobbina granted her “Michigander by marriage” status near the end of their conversation.
The U.S. commerce department has a variety of responsibilities, including running weather services, the Census Bureau, the U.S. Patent and Trademark Office and the International Trade Agency.
Raimondo summarized those roles as helping businesses by providing them with resources, information and infrastructure.
“Our mission, and the throughline in all of that, is to help American businesses be more competitive,” Raimondo said. “Sometimes that means leveling the playing field by protecting our technology. Sometimes that means investing in businesses. A lot of times that means helping U.S. businesses to export.”
Raimondo focused attention on the Biden administration’s Inflation Reduction Act, which can help governments invest in infrastructure like bridges, roads and broadband. Not having access to the internet is a large barrier for small businesses, and the U.S. government has put money into states to expand broadband.
The federal government has also made investments in solar energy and semiconductors, which powers technology like artificial intelligence systems and electric vehicles. The CHIPS and Science Act, which was passed in 2022, will pour money into domestic semiconductor manufacturing, and Raimondo said Michigan will get a piece of the advanced chip investment. She said this could create more jobs in Michigan and make the supply chain more resilient.
“This is where businesses want to be, and that’s why we’re making these big investments in your state,” Raimondo said.
Raimondo also emphasized the importance of having a level playing field with other countries. While countries like China produce cheaper EVs than the U.S., the cost of labor may be inexpensive, and Raimondo said they receive more subsidies. The Biden administration placed a 100% tariff rate on all EVs from China, a move Raimondo described as helping domestic manufacturers and “leveling the playing field.”
“I want American companies to be able to outcompete the world,” Raimondo said. “No one is better than American entrepreneurs. American business owners. American small businesses. If we have a level playing field, we will outcompete everytime.”
They also discussed artificial intelligence. The commerce department is working on a testing mechanism for large AI models so it can be deployed safely, according to Raimondo. She also said it could help make manufacturing sectors more efficient.
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