OUR Future is GREEN!

The Promise of Green Energy

By John Bebow - February 15, 2008

The green energy economy is real in Michigan -- an it is worth thousands of jobs, argues guest columnist Rob Gramlich.

The Promise of Green Jobs

By Rob Gramlich, Policy Director for the American Wind Energy Association

Many are intrigued by Governor Granholm’s statement that the renewable energy industry has the power to create thousands of jobs in Michigan.[1] Endowed with numerous renewable resources, a developed manufacturing base, and an arsenal of well-trained individuals,

Michigan can realize substantial job creation if it commits to a state-wide renewable electricity policy. Michigan has made a commitment to work with other Midwestern states in generating 10% of the region’s electricity from renewable sources by 2015. This agreement holds great promise for the Midwest, but adopting the same standard at the state level would bring more substantial economic growth to Michigan. A coalition of 77 groups from the business, manufacturing, research, environmental, agriculture and entrepreneurial communities, all advocate a state-specific standard. Demonstrable job creation in Michigan A Renewable Energy Policy Project study found that 2,050 firms in Michigan could benefit from 34,777 new jobs spread across the wind, solar, biomass, and geothermal industries, with 24,350 being tied to the wind industry. [2] As Michigan ranks 14^th out of the 50 states in abundance of wind resources, the state is already seeing the manufacturing sector reap the benefits of the wind industry’s record growth.
Pre-existing manufacturing facilities are transitioning some or all of their work to accommodate renewable energy industry components. An example of a Michigan company adjusting its manufacturing specialty altogether is Great Lakes Gear Technologies Inc., located in Canton Township. While this company used to manufacture gears mainly for the automotive industry, it is now making gears primarily for wind turbines.[3] Some Michigan companies are adding production of renewable energy components while continuing their original product lines. Ann Arbor Machine Co., which has traditionally made large machine tools for the auto industry, will begin to manufacture gear boxes for wind turbines over the next 18 months.

The transition is expected to bring at least 60 new people to the company's current base of 150 employees.[4] Dowding Industries, of Eaton Rapids, which specializes in precision run manufacturing of progressive die stampings, metal fabrications, and welded assemblies, is investing $10 million in expanding their facility to accommodate wind industry component production. They plan to hire 50 employees to be involved in their expanded business sector. Creative Foam, a business which currentlydesigns and manufactures foams and plastics for customers in the automotive, medical and composite markets, is investing $1.2 million in its Alloy Business Unit in Fenton, MI, to branch into the wind energy business. Also, K & M Machine Fabricating, located in Cassopolis, is taking on a $20 million expansion project to broaden its machining, fabricating, burning and assembly functions to meet wind industry needs. This company anticipates hiring 100 new employees to take on its broadened specialization.

In addition to the continued manufacturing employment growth that a 10% by 2015 Renewable Electricity Standard (RES) would inevitably bring, Michigan also has the potential to expand its research and development jobs. Michigan’s universities produce graduates with exceptional engineering backgrounds who would be well-suited to work in the renewable energy industry.

Governor Granholm has already asked for federal funding to support the development of a national center in Michigan to study and promote alternative energy technologies. Also, the Danish wind energy company Vestas has announced that it plans to establish a research center somewhere in the United States near a large university in 2009.[5] With the brain power already available at Michigan’s universities, the state would be a desirable location for such a facility. A research center would hire these graduates, give the scholars good reason to remain in Michigan, and create a substantial base for the local economy. Moving forward with renewables These examples foreshadow the acceleration the state economy would experience if Michigan joined 25 of its fellow U.S. states in adopting a state-wide RES.

Renewable standard legislation provides a guarantee to manufacturers that the renewable energy sector will continue to grow in their state in years to come; giving them sound reason to invest in new facilities, expand production capabilities, and commit to additional hires. The state of Colorado, which has recently increased its renewables commitment to 20% by 2020, has seen the rewards of strong policy support: Danish turbine blade manufacturer Vestas chose the state as the site for its first U.S. manufacturing plant, creating 450 manufacturing jobs when it begins operations in 2008.[6]
The President and CEO of GE Energy, John Krenicki Jr., has stated to Congress, “We believe wind and solar energy are likely to be among the largest sources of new manufacturing jobs worldwide during the 21st Century.” As a state that lost 68,300 manufacturing jobs between January 2001 and May 2004, Michigan should seize the opportunity to reverse its economic downturn by creating a supportive climate for the growing renewable energy industry in the state.