The operating model

The University of Michigan Economic Growth Institute describes the program as customized technical and management assistance for vulnerable firms. Staff identified at-risk companies, assessed operations, developed an adjustment plan, and supported implementation. The goal was to improve profitability, avert layoffs, and create new growth opportunities.

Diversification was the main intervention

Eighty-eight percent of supported projects involved market diversification, 55 percent involved new-market penetration, and 9 percent involved new-product development. That matters because a company dependent on one shrinking customer, contract, or industry may need a new revenue path more than a training subsidy.

What diagnosis looks like in practice

A related Michigan Works! Southeast case shows the depth of a Proactive Business Review. A 51-person manufacturer had roughly six weeks of cash and vendor credit remaining. Recommendations included consolidating plants, rebidding raw materials and health insurance, restructuring the organization, obtaining asset-based financing, implementing lean manufacturing, and developing a clearer market position. The company returned to profitability in four months and 42 jobs were reported saved.

California translation

What California would need

• A partner able to conduct credible financial and operational diagnostics.
• A clear threshold for determining that jobs are at risk.
• Fast access to specialized technical assistance.
• A way to combine WIOA-eligible services with economic-development or private resources when the solution extends beyond workforce funding.
• Follow-up measures for business survival and jobs retained.