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Michigan Small Businesses Positioned to Win in the Defense Industry

by | Jun 30, 2026

Summary

Michigan small businesses have a major opportunity to compete for growing federal defense contracts by leveraging state resources for funding, cybersecurity compliance, and technology commercialization support.

Michigan employs over 600,000 people in the manufacturing sector and ranks in the top 10 states with the highest density of new patents. This positions Michigan startups and small businesses to excel in defense manufacturing.

With an anticipated 42% increase in the Federal defense budget, now is the time to utilize Michigan SBDC consulting and resources to prepare to enter and compete in the defense industry.

Michigan’s Strategic Infrastructure

Michigan’s Camp Grayling features nearly 200,000 acres and 17,000 square miles of airspace at Alpena’s CRTC which allows defense companies to test their technology across land, sea, air, space and cyber domains. Some of the key technology focus areas for the NADWC include autonomous systems and drones, radio spectrum operations, space data integration, cyber security.

Opportunities such as the Make It in Michigan Mobility Prototyping Grant support both startups and established small businesses with emerging autonomous systems, critical mobility components, and electrification systems across all transportation modes (air, ground, marine, off-road) throughout the State of Michigan.

The Michigan SBDC offers several services to help pursue federal and defense funding, especially related to core foundational consulting and financial readiness. Our consultants assist with strategic growth consulting and advice regarding loans, lines of credit and grants. The Michigan SBDC also helps with cybersecurity compliance required by the Department of War, offering no-cost resources, cybersecurity training and webinars, and security guides for small businesses.

Additionally, the Michigan SBDC Tech Team can assist small businesses and startups that are developing advanced technology. The Tech Team helps navigate the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, supports drafting investor pitch decks and developing commercialization strategies, and can facilitate connections to other partners to support highly competitive federal R&D proposals.

Read this article in full here.

Michigan SBDC

The Michigan SBDC enhances Michigan’s economic wellbeing by providing consulting, training and market research for new ventures, existing small businesses and advanced technology companies. With ten offices across the state, we provide entrepreneurs and business owners with convenient access to free consulting and training throughout Michigan.

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