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ArtServe Michigan’s New Two-Part Creative State Michigan Report Reveals Billions of Dollars Contributed to Michigan Economy

In its third installment of the Creative State Michigan report, ArtServe Michigan – the state’s leading statewide arts and cultural advocacy organization – today released its report focused on Fiscal Year 2011 for nonprofit arts and cultural organizations in Creative State Michigan 2014 and the creative industries as a whole in Creative State Michigan 2014: Creative Industries Report. Both reports are available at www.CreativeStateMI.org.

“Every day, Michigan’s arts and cultural organizations and creative industries are making major contributions to our state’s economy – creating jobs, spending in local communities, generating tourism revenues and shaping vibrant cities and towns that attract talent and business investment,” said Jennifer Goulet, president and CEO of ArtServe. “This year, ArtServe expanded its data set to comprehensively define and measure the influence of the creative industries to Michigan’s economy by including sole proprietors, independent entrepreneurs and for-profit creative businesses, as well as nonprofit arts and cultural organizations. The results prove the creative sector is poised for growth and increased importance to maximize Michigan’s competitive advantage.”

Creative State Michigan 2014: Creative Industries Report
New in 2014, the Creative State Michigan 2014: Creative Industries Report reveals in FY 2011, the creative industries paid nearly $3.6 billion in wages to 74,000 employees in more than 9,700 businesses in Michigan. This accounts for nearly 3 percent of Michigan’s employment totals, more than 3 percent of total wages and 4.6 percent of total state businesses in leading core industries such as advertising, the publishing and printing industry, design, film/media and broadcasting and architecture.

The top five counties for creative industries (determined by wages, employees and number of establishments), listed in order are: Oakland, Wayne, Kent, Washtenaw and Macomb counties. Oakland County’s total employee wages exceeded $1.3 billion; Wayne County, $808 million; Kent County, $284 million; Washtenaw County, $181 million; and Macomb County $175 million.

Creative State Michigan 2014
Creative State Michigan 2014 details economic and social data from 424 nonprofit arts and cultural organizations, representing an estimated 21 percent of the more than 2,000 cultural groups operating statewide. The data reveals that these organizations contributed more than one-half billion dollars in expenditures alone to the Michigan economy in FY 2011.

Among its most compelling data, the report affirms the creative economy as a significant financial contributor and strategic opportunity for Michigan’s economic resurgence. Of the nearly $565 million in annual expenditures by the nonprofit creative community in 2011 (which exceeds 2010 contributions), nearly $196 million supported salaries for 26,064 jobs. These organizations contributed more than $14 million in the employer portion of the payroll tax and nearly $1 million in state sales tax revenues.

Michigan’s arts and cultural destinations continue to demonstrate their essential value to the state’s tourism industry, generating more than $2 billion in state tourism revenues in 2011. That represents 16 percent of the state’s total tourism revenues in that year – more than golf, boating and sailing, hunting and fishing, and hiking and biking combined.

The report also provides indicators for the resources the arts provide for Michigan’s schools and children, as well as residents of all ages. In 2011, more than 3 million students benefitted from educational programs and events offered by arts and cultural venues statewide. These same organizations facilitated 1,936 programs in schools providing valuable educational experiences at a time when businesses continue to increase the value of creativity and innovation in the workplace while many schools across Michigan have cut funding for arts programs. Michigan’s cultural groups are reaching growing audiences, reporting more than 22.1 million visits in 2011, 68 percent of which were free of charge.

Methodology for Reporting
The research data for Creative State Michigan 2014: Creative Industries Report comes from the 2011 US Bureau of Labor Statistics Quarterly Census of Employment and Wages (QCEW), the 2010 US Census Nonemployer Statistics (NES) (not included in this print report), and US Bureau of Labor Statistics Occupational Employment Statistics (OES) (not included in this print report). All sources are available publicly through the Bureau of Labor Statistics or the US Census Bureau. ArtServe Michigan selected and categorized 141 NAICS and 96 SOC codes for the full study based on a review or existing research and research methodologies of other groups undertaking similar work in the United States. The report focuses on a total of 67 6-digit NAICS codes for QCEW study. Funding was made possible by the MASCO Corporation Foundation, Surdna Foundation, Michigan Council for Arts and Cultural Affairs and the Irving S. Gilmore Foundation. The study and related fundraising was done in partnership with the Detroit Creative Corridor Center as a priority in its strategy to grow the creative industries in Southeast Michigan.

Data sources for the Creative State Michigan 2014 report include the Michigan Cultural Data Project (Michigan CDP), Americans for the Arts’ annual Creative Industries Reports and the Michigan Economic Development Corporation. The Michigan CDP data includes FY 2011 data profiles from 424 nonprofit arts and cultural organizations.

Data Driven Detroit provided research support for ArtServe Michigan, as an independent examiner of the information.

About the Michigan Cultural Data Project
Launched May 2010, the Michigan CDP is a powerful online management tool with a robust support network designed to strengthen nonprofit arts and cultural organizations. It also provides funders with reliable, comparable data to inform grantmaking and helps advocates and researchers better understand and communicate the sector’s impact. A growing national model owned and operated by the Cultural Data Project, the CDP is operating in 13 states and the District of Columbia, with 267 funding programs and more than to 14,000 organizations participating across the US.

The Michigan CDP is made possible through the leadership and generous support of:
ArtServe Michigan
Ann Arbor Area Community Foundation
Barry Community Foundation
Battle Creek Community Foundation
Capital Region Community Foundation
Charles Stewart Mott Foundation
Community Foundation for Southeast Michigan
Erb Family Foundation
Frey Foundation
Grand Rapids Community Foundation
Great Lakes Bay Regional Convention and Visitors Bureau
Hudson-Webber Foundation
Irving S. Gilmore Foundation
The Kresge Foundation
MASCO Corporation Foundation
Michigan Council for the Arts and Cultural Affairs
Michigan Humanities Council
National Endowment for the Arts
Petoskey – Harbor Springs Area Community Foundation
Rotary Charities of Traverse City
Ruth Mott Foundation
The Skillman Foundation
Southfield Community Foundation

ArtServe Michigan is a statewide nonprofit advocacy organization dedicated to cultivating the creative potential of Michigan’s arts and cultural sector and creative industries to enhance the public health and well-being of Michigan, its people and communities. ArtServe advocates for arts, culture, arts education and the power of the creative economy in Michigan; provides leadership and professional development for artists, creative practitioners, and arts and cultural organizations; and connects arts and cultural leaders and supporters through strategic communications. Contact ArtServe Michigan at 248-912-0760 or visit ArtServeMichigan.org.