DTE Boosts 2012 Michigan Spending Target To $700 Million
DETROIT -- DTE Energy said Monday it has exceeded target for spending with Michigan based companies through August, as part of its ongoing commitment to the Pure Michigan Business Connect Initiative.
Through August, DTE Energy spent $498 million with Michigan-based suppliers, up from $334 million during the same period a year ago.
DTE Energy said also it expects to surpass its annual spend target of $575 million by the end of 2012 and now expects to spend $700 million with Michigan suppliers by Dec. 31.
"DTE Energy's commitment to the Pure Michigan procurement initiative continues to be an engine for growth in the communities that we serve," said Gerry Anderson, DTE Energy chairman, president and CEO. "This has been a tremendous contribution to the emerging market of suppliers that have improved their processes and are helping to revitalize this state's economy."
The company's overall supply chain spend is expected to result in the creation of more than 6,800 full-time jobs in Michigan by the end of the year.
In addition to its focus on actively seeking Michigan suppliers, DTE Energy is also increasing awareness around spend with Detroit-based suppliers.
In 2011, DTE Energy pledged to shift an incremental $750 million over five years to do business with Michigan based suppliers, as part of this initiative. Announced in May 2011 at the Detroit Regional Chamber's Mackinac Policy Conference by Gov. Rick Snyder, the $8 billion public-private program is designed to prepare and develop Michigan suppliers to provide services to companies across the state.
The Pure Michigan Business Connect Initiative, which is administered through an alliance with the Michigan Economic Development Corp., also helps companies find new ways to raise capital; get access to a variety of business services and provides business-to-business procurement opportunities.
Since Gov. Snyder's announcement, DTE Energy estimates it will spend $1.3 billion with Michigan suppliers in 2011 and 2012.
"We applaud DTE's commitment to doing business in Michigan with Michigan suppliers," MEDC president and CEO Michael A. Finney said. "DTE is definitely a key driver behind the success of the Pure Michigan Business Connect initiative and the positive impact it is having on our economy."
As one of the initial seven participants in the program, DTE Energy has closed deals with Michigan-based suppliers specializing in many areas, such as construction, maintenance, engineering, energy optimization, renewable energy, natural gas storage, and IT consulting services.
"We have proven that Michigan companies can compete with anyone on both cost and quality," said DTE Energy CFO Dave Meador. "Doing business with strong third-party contractors that deliver quality products is not only good for DTE Energy, it's just good business."
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.1 million customers in Southeastern Michigan; MichCon, a natural gas utility serving 1.2 million customers in Michigan; and other non-utility energy businesses focused on gas storage and pipelines, unconventional gas production, power and industrial projects, and energy trading.
More at www.dteenergy.com.
