Small business · Manufacturing & machine shops · Michigan
Health insurance for Michigan manufacturers and machine shops
Small shops compete with big plants for machinists and operators. Here’s what Michigan’s manufacturing workforce looks like and what benefits workers expect.
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- 582,935 MI manufacturing jobs
- 86% access in goods-producing
- Group, ICHRA or level-funded
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Manufacturing & machine shops in Michigan, by the numbers
| Michigan private industry | Jobs (2025 avg.) | Locations | Avg. jobs per location | Avg. annual pay |
|---|---|---|---|---|
| All manufacturing (NAICS 31-33) | 582,935 | 20,734 | 28.1 | $85,789 |
| Fabricated metal products (NAICS 332) | 68,521 | 3,322 | 20.6 | $73,340 |
| Machine shops (NAICS 332710) | 16,046 | 972 | 16.5 | $71,313 |
BLS QCEW, 2025 annual averages, private ownership; jobs per location is jobs divided by establishments.[1] QCEW covers jobs reported under unemployment insurance and excludes proprietors and the unincorporated self-employed.[2]
What benefits look like in this kind of work
- In goods-producing industries, 86% of private-industry workers had access to an employer medical plan.[3]
- Among production workers, 80% had access and 55% participated.[3]
- In private businesses with 1 to 49 workers, 55% of workers had access to an employer medical plan, compared with 86% at businesses with 100 or more.[3]
- For family coverage, employers paid 72% of the premium for production workers on average.[4]
National figures for private industry; BLS doesn’t publish these by state.[3]
What we’d look at for a shop
Michigan had 972 machine shops averaging 16.5 jobs each in 2025, squarely in small-group territory.[1] With most production workers expecting a medical plan[3], the questions we start with are how much of the family premium you can carry, whether a level-funded plan fits a younger, steady crew, and whether office and shop-floor classes need different approaches.
Rules that apply to you
- Small group is 1 to 50. For SHOP coverage you generally need 1 to 50 full-time-equivalent employees who aren’t owners or family, and you can start any time of year.[5] See small group rules.
- Can’t meet a carrier’s contribution or participation rule? Federal rules let insurers limit those groups to a November 15 to December 15 enrollment window each year.[6] See contribution and participation rules.
- The mandate starts at 50. Employers with at least 50 full-time employees, including full-time equivalents, on average in the prior year are applicable large employers.[7]
- QSEHRA is open only to employers that aren’t applicable large employers and don’t offer a group health plan; 2026 limits are $6,450 single and $13,100 family.[8] See QSEHRA.
- ICHRA can be offered by class of employees, but you can’t offer the same class both an ICHRA and a traditional group plan.[9] See ICHRA and ICHRA vs. a group plan.
- Tax credit check. The small business health care tax credit requires fewer than 25 FTEs and average annual wages under $67,000 per FTE (2025 rules), with a plan through SHOP.[10] This industry’s Michigan average pay was $71,313 in 2025[1], but your own payroll math decides it. See the Form 8941 guide.
Workers’ compensation is a separate, required coverage and isn’t covered on this page.
Related: small business health insurance, level-funded plans and adding dental and vision.
Sources
- U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, Michigan, 2025 annual averages (private ownership). https://data.bls.gov/cew/data/api/2025/a/area/26000.csv
- U.S. Bureau of Labor Statistics, QCEW Overview: coverage and employment exclusions. https://www.bls.gov/cew/overview.htm
- BLS, Employee Benefits in the United States, March 2026, Table 2: Medical care benefits, access and participation. https://www.bls.gov/news.release/ebs2.t02.htm
- BLS, Employee Benefits in the United States, March 2026, Table 4: Share of premiums paid, family coverage. https://www.bls.gov/news.release/ebs2.t04.htm
- HealthCare.gov, Overview of SHOP: Health insurance for small businesses. https://www.healthcare.gov/small-businesses/choose-and-enroll/shop-marketplace-overview/
- 45 CFR 147.104, Guaranteed availability of coverage (eCFR). https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-B/part-147/section-147.104
- IRS, Determining if an employer is an applicable large employer. https://www.irs.gov/affordable-care-act/employers/determining-if-an-employer-is-an-applicable-large-employer
- IRS, Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits. https://www.irs.gov/publications/p15b
- 26 CFR 54.9802-4, Special rule allowing integration of HRAs with individual health insurance coverage (eCFR). https://www.ecfr.gov/current/title-26/chapter-I/subchapter-D/part-54/section-54.9802-4
- IRS, Instructions for Form 8941 (2025). https://www.irs.gov/instructions/i8941
Checked October 16, 2026. 2027 Marketplace plans and final 2027 rates aren’t published yet; we’ll update this page when they are.
Frequently asked questions
How many people work in Michigan manufacturing?
About 582,935 private-sector jobs on average in 2025, per BLS QCEW, including 16,046 at machine shops.
Do small manufacturers usually offer health insurance?
Nationally, 86% of private workers in goods-producing industries had access to an employer medical plan in March 2026, per BLS. Access is lower at businesses with under 50 workers.
Will you sell my information?
No. Your information goes to Nexus Benefit Solutions only and is never sold.