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Peek in new General Dynamics office spotlights war economy in Michigan

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Peek in new General Dynamics office spotlights war economy in Michigan

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  • General Dynamics, which upgraded its Sterling Heights offices, is part of Michigan’s multibillion dollar defense industry.
  • New warfighting tactics and technology also offers the opportunity to develop new weapon systems.
  • MEDC: No other state offers the network of defense companies, installations and research institutions.

As the United States wages war in the Middle East and the White House asks Congress to approve $1.5 trillion in defense spending, one of Michigan's defense contractors aims to show off its newly completed upgrade to its Sterling Heights offices.

General Dynamics Land Systems − which bills itself as a “pillar of the Macomb County defense corridor” − on Wednesday, Aug. 19, aims to showcase the military equipment it makes by opening its normally closed doors to the news media. The last time it held a similar event locally was a decade ago.

The event also will give reporters a chance to ask questions about its operations and to take rides − what the company hyped as “a once-in-a-lifetime opportunity” − in a Stryker, a 19-ton, eight-wheeled armored combat vehicle built for the U.S. Army.

But more than an opportunity to promote the vehicles the company manufactures, the event also underscores how elected officials, as they scrutinize and support the war with Iran and defense spending, must consider the effects on Michigan's economy.

On the one hand, the war has led to a global energy crisis, increased fuel prices and inflation; while on the other, the war also is boosting public and private investment in the state’s defense industry as the Pentagon pushes for faster — and more — weapons production to replenish munitions stockpiles that have been depleted.

New warfighting tactics and technology also offer the opportunity to develop new weapons systems.

Even before the U.S. launched air strikes against Iran in late February, the Michigan Economic Development Corp. pointed out that the state should capitalize on its manufacturing expertise long history as what President Franklin Roosevelt termed the “arsenal of democracy.” 

In addition to defense contractors located here, the state is seeking to leverage Selfridge Air National Guard in Harrison Township, which is set to receive new fighter jets and about $1 billion for infrastructure, and Camp Grayling in northern Michigan, which has been designated a national proving ground for drones.

‘Reimagining the Arsenal of Democracy’

To understand how much a role defense plays in Michigan, consider that the Sterling Heights offices of General Dynamics Land Systems, a subsidiary of General Dynamics, cover 655,000 square feet across six buildings and house more than 1,900 employees.

The multimillion-dollar renovation, which the company said was aimed at enhancing innovation, gave the workspace a facelift, updated lighting and added 100 more desks so that the company could continue to grow and, if needed, add jobs.

“Our new collaborative work areas are essential for the team to come up with forward-thinking solutions for the men and women in uniform who depend on our products,” Dave Paddock, president of General Dynamics Land Systems, told the Free Press in an email. “We also expect this modernization to help attract and retain top talent for our workforce.”

On top of that, in a paper that the MEDC published last year under the headline “Reimagining the Arsenal of Democracy: How Michigan Leads the Defense Industry,” the public-private agency hailed the state as “a national leader in defense, advanced manufacturing, and innovation.”

The agency calculated that it added up to $30 billion in economic activity, more than 166,000 jobs and nearly 5,000 Michigan businesses that were serving the defense, defense aerospace and homeland security industries.

The study pointed out that companies in Macomb County in 2024 were awarded contracts worth $3.2 billion. 

“No other state offers the dense network of defense companies, military installations, and cutting-edge research institutions that Michigan does,” the study declared, adding, “The ‘Make It in Michigan’ economic development strategy supports the defense industry.”

‘More military vehicles than any other state’

The MEDC study also detailed how the state contributed to weapons for fighting in the air, on the land and on the water, and pointed out how what happens in the defense industry influences non-military projects.

On Monday, for example, officials from the Michigan Department of Military and Veterans Affairs, Macomb County and others held a groundbreaking ceremony at Selfridge, also in Macomb County, to highlight the relocation of the William P. Rosso Highway.

The roadway project is expected to improve transportation infrastructure near the base and support Selfridge's future mission requirements, which will likely have a role in global conflicts. Earlier this year, the base deployed its A-10 Thunderbolt aircraft to the Middle East.

Michigan also is home to the U.S. Army Detroit Arsenal, in Warren, which the MEDC said includes one Army command that handles contracting for 70% of everything the Army buys and another that serves as the nation's laboratory for advanced military automotive technology.

A prototype of the M1E3 Abrams battle tank — which was built by the Michigan-based engineering firm Roush Defense in Warren, Michigan, in collaboration with the U.S. Army — debuted in January at the Detroit auto show. It is about 10 tons lighter, has a more fuel-efficient electric-diesel engine and includes faster targeting technology.

Future production is expected to be led by General Dynamics.

In addition to General Dynamics Land Systems — which on Wednesday plans to put multiple vehicles including tanks, air defense solutions and combat robots on display — several other defense firms are operating in Michigan, including BAE Systems, Oshkosh Defense, GM Defense and Raytheon Technologies.

“We produce more military vehicles than any other state and are home to major defense companies,” Gov. Gretchen Whitmer touted in the MEDC study. She added: “With our growing veteran population — over 670,000 strong — Michigan is primed to remain a manufacturing powerhouse.” 

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com