The next phase of construction is underway on the Saab munitions assembly plant in Grayling.
The company broke ground on the project last April and will begin assembly next spring.
Saab is a Swedish aerospace and defense company that provides products and services for both military defense and civil security to customers worldwide.
David Howie, Saab’s lead project manager for the Grayling facility, said the company considered many states before picking Michigan in which to locate. Local and state government alignment, as well as community values, set it apart from the rest, Howie said.
The facility will assemble the XM919 shoulder-fired munition and ground-launched small-diameter bombs, or GLSDBs, for the U.S. Army.
According to Saab’s website, the facility will work with Camp Grayling for testing and training, using its certified range for the munitions. The facility does not “anticipate a noticeable increase in the amount or level of noise.”
Howie said the facility will not be developing or mixing chemicals for munitions production, but rather assembling complete components that have been manufactured elsewhere.
According to a press release from U.S. Sen. Gary Peters’ office, the National Defense Authorization Act includes $31.9 million to support the production of the facility. The facility is expected to employ 70 people in 2025 and 100 people by 2027.
Howie said the facility will offer positions in human resources, administrative management, engineering, labor assemblers and entry-level positions, such as equipment and building maintenance.
Saab is interested in hiring from the northern Michigan workforce and is already bringing in Grayling residents as well as those with connections to the area, he said.
Saab recently hired 20 employees to begin filling these various positions, he said, noting that the facility’s starting wages are $25 to $30 an hour, with a median annual income of $120,000.
According to the most recent U.S. census, the current median household income in Crawford County, where this facility will be located, is $58,614.
Matt McCauley, senior vice president of regional development at the Michigan Economic Development Corporation, said the facility will not only increase the county’s per capita income and tax base, but also provide new road improvements for the surrounding area.
A lack of affordable and accessible housing in northern Michigan is an issue that many communities face, especially when employment opportunities like this increase demand. But McCauley said housing will not be a problem for Crawford County, since it hosts a large number of second homes or vacation homes.
“We are always very aware of the impact an investment can make on housing within any given community,” he said. “We believe that, by providing more jobs and greater private investment in the community, the community can gain and enjoy more full-time, year-round residents.”
When they anticipated moving into the area, Howie said, Saab trusted that its reputation would precede it.
Yet the project was initially met with skepticism and “fantastical, horrible” accusations, he said.
“I spent a lot of time just educating and communicating with the public and that’s led to a much better understanding and acceptance of us being in the region, and frankly, a lot of them are very excited for us to be a partner,” Howie said. “There probably isn’t a better company to be coming into the Grayling area in northern Michigan because of Saab’s values with priority on community and environment.”
Saab conducted multiple environmental stewardship studies while proposing the project, which found that “there will be no negative environmental impacts from (the) facility in Grayling.”
Even so, community outcry against the facility is still active, with many taking to social media platforms to voice their concerns.
Jason Teddy, born in Grayling, is a retired state police officer and Camp Grayling official. He said he is not opposed to Saab as a company, but is concerned about what the plant will represent.
Teddy said it is a “foot in the door” for the further militarization of northern Michigan and a continuation of what he views as a larger strategy to expand defense industry activity in the region, without sufficient public input or transparency.
“My issue is that it’s going to start with Saab and there’s going to be more coming,” he said.
Teddy also said he believes the plant is politically driven. Gov. Gretchen Whitmer is turning to the defense sector for political and economic wins, capitalizing on the patriotic appeal of military support, he said.
Some others who are opposed to the Saab facility point to the PFAS contamination of the environment that was caused by Camp Grayling.
In 2016, the National Guard training facility was identified as one of the first PFAS-contaminated sites in Michigan. The harmful “forever” chemical was found in local ground- and surface water.
A January 2025 petition to keep Saab out of Grayling garnered more than 650 signatures, saying that the weapons produced there “will only fuel more violence and suffering,” along with many other concerns.
