At the 2026 Mackinac Policy Conference, leaders from across government, venture capital, and advanced manufacturing came together to examine how Michigan can lead in the next generation of defense innovation. The conversation made clear that the state is at a pivotal moment, equipped with deep manufacturing expertise, emerging dual-use technologies, and growing federal investment opportunities. However, legislators and investors must act with urgency and coordination to capture the state’s share of future defense contracts and build a workforce ready to support them.
Referring to Michigan’s legacy as the “arsenal of democracy,” Sen. Elissa Slotkin (D-MI) emphasized that the great advantage Michigan has, due to its roots in large-scale manufacturing and ability to rapidly adapt production processes, positions it to support the evolving needs of modern defense.
As global conflicts increasingly rely on agile, lower-cost, and technology-enabled systems such as drones and autonomous platforms, Michigan’s capacity to design, test, and produce at scale gives it a significant competitive edge. By building its industrial legacy while embracing new technologies, the state is uniquely positioned to meet current defense demands and lead in the next era of innovation.
“I think that our defense industry is a bit misunderstood, and it’s really a ripe time to sort of relaunch and rebrand,” Slotkin said.
As warfare shifts toward faster, more agile, and technology-driven systems, Paul D’Amato of the Michigan Capital Network emphasized that the state’s technical capabilities already align well with the emerging needs of the defense and dual-use sectors.
“We’ve got the factories, the engineers, and the talent,” he said. “But what it’s missing is the commercialization piece.”
This prevents many promising startups from reaching production and securing defense contracts. Without sufficient capital, coordinated supply chains, and a clear path to procurement, innovative companies struggle to survive long enough to scale. The issue is not from a lack of resources, but rather how capital and resources are organized.
While Michigan has the technical capabilities and manufacturing strength to lead in the defense sector, scaling innovation into deployable solutions will require stronger coordination across the ecosystem.
Matt Rybar of the Michigan Drone Association highlighted how collaboration will determine how quickly the state can advance.
“How do we scale this together as an ecosystem, more so than just everyone in [their own] silo right now?” Rybar asked. “I believe we are well-positioned in Michigan to do that… with everyone in their own silos, we won’t ever compete against China.”
Building a unified, interconnected ecosystem that allows companies to design, manufacture, and deploy technologies more efficiently. But without access to capital and a clear pathway to procurement, even the most promising innovations risk falling short.
“The money is there, but the plan needs to come together,” D’Amato added, emphasizing that federal investment will continue to flow but only to states prepared to act decisively and strategically. “If we don’t do this together, we will not succeed.”
Equally critical to Michigan’s defense transformation is its ability to build and sustain a workforce capable of meeting industry demands. As technology evolves, so too must the state’s approach to talent development, workforce retention, and the modernization of manufacturing careers.
Atomic Industries’ Aaron Slodov shared that while innovation and capital are essential, the needs of the workforce can ultimately determine whether Michigan can deliver to the defense industry.
“The [current] industrial base isn’t evolving as fast as we need it to,” he said.
Modernizing manufacturing environments and embracing advanced technologies will be key to making these careers more attractive to the next generation.
Slotkin framed workforce development not only as an economic priority but as a broader population challenge facing the state.
“We have a pretty fundamental problem that we need to grow our population… young families need to stay here and come here and make their life here,” she said. “That means they want cool jobs.”
That shift in expectations requires Michigan to position defense and advanced manufacturing as innovative, high-growth career paths rather than legacy industries tied to previous generations. As new defense technologies emerge, they present an opportunity to redefine what working in manufacturing looks like and make it more attractive to younger generations.
By investing in cutting-edge industries such as drones, aerospace, and advanced manufacturing, Michigan cannot only meet national security needs but also create high-growth careers that attract and retain talent across the state.
This session was sponsored by Dow.
