New survey from MIT Technology Review Insights and MEDC reveals businesses are weighing relocation due to climate risks, with the Midwest being the least exposed region.
Climate Risks Prompt U.S. Businesses to Consider Relocation, with Michigan Poised as a Climate Haven
A new survey conducted by MIT Technology Review Insights, in collaboration with the Michigan Economic Development Corporation (MEDC), highlights the growing importance of climate considerations in business decisions. The survey of 300 senior U.S. executives revealed that 75% of businesses have considered relocating due to climate risks, with 24% having already moved infrastructure to mitigate the impacts of climate change.
Kara Cook, Michigan’s Chief Climate and Energy Strategist, emphasized the urgency, stating, “Climate change is causing more extreme weather events and raising risks for businesses right now.” Michigan is investing heavily in water infrastructure, clean energy, and grid resilience to become a national leader in climate action.
Midwest Viewed as Least Exposed Region, Michigan Positioned for Business Growth
When executives were asked to evaluate potential relocation sites, 47% identified the Midwest as the least exposed region to climate risks like extreme weather, drought, and wildfires. In contrast, the West was considered the most exposed, with only 7% selecting it as a low-risk area due to increasing wildfires, drought, and extreme heat.
Michigan’s MI Healthy Climate Plan and development resources, including wetland conservation and microgrid technology, were noted as key tools in helping businesses prepare for and adapt to climate risks.
Hilary Doe, Michigan’s Chief Growth Officer, pointed out, “Our robust supply chain, access to natural resources, leading research universities, and incredible talent all make Michigan an ideal place for businesses focused on climate preparedness and solutions.”
Business Leaders Highlight Michigan’s Climate Resilience
A notable example is LuxWall, a manufacturer of energy-efficient windows. The company recently selected Litchfield and Detroit for new manufacturing sites after evaluating six Midwestern states. LuxWall’s decision was influenced by Michigan’s water availability, grid resilience, and climate preparedness infrastructure.
Scott Thomsen, CEO of LuxWall, said, “We looked at the probability of tornadoes, hurricanes, and other extreme storms. We looked at water availability, because we use quite a bit of water for our process. But some places didn’t have the infrastructure to handle the daily discharge.”
Michigan’s strategic climate initiatives, access to natural resources, and partnerships have made it a favored destination for businesses concerned about climate risks.
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