Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
STATE OF THE REGION 2019-20202
Sandy K. BaruahPresident and CEO
Detroit Regional Chamber
Rick HampsonPresident, Michigan
Citizens Bank
Data Center
Equip your business with the comprehensive data
resource it needs. Explore the Detroit Regional
Data Center to create custom charts and graphics,
stay informed on industry performance, track
economic trends, and understand the region’s
changing demographics.
Learn more at detroitdatacenter.org
S t . C l a i r
M a c o m b
O a k l a n d
G e n e s e e L a p e e r
L e n a w e e M o n r o e
L i v i n g s t o n
S h i a w a s s e e
Wa s h t e n a wWay n e
DETROIT
DECEMBER 2019
The Detroit Regional Chamber is proud to bring the business community the sixth annual State of the Region, which benchmarks the Detroit region’s economic health against our national peers. The region has continued to progress over the past year. Job growth, office and industrial vacancy rates, and median home values are all a testament to that. Over the past five years, the region has experienced significant median household income growth of 15.3% since 2014, rising to $60,513. This report not only highlights where the region is performing well, it also showcases areas for continued improvement. This past July, the unemployment rate increased for the first time since 2009 and despite increases in values, the region is last among peers in key economic indicators including educational attainment and labor force participation. Detroit’s poverty rate, while declining over the past five years, still remains the highest among peers. Progress is being made, but we cannot take our eye off the prize. Through the University Economic Analysis Partnership – a collaboration between the City of Detroit, Michigan State University, University of Michigan and Wayne State University – the City will be providing Detroit-specific data that will help the city and region to better measure areas of opportunity and continue on an upward trajectory. Moving into a new decade, there is a lot to celebrate and to double down on. Through regional collaboration and continued support from civic, business, and government leadership, the city, region, and state will continue to build on the progress that has been made.
Detroit is keeping pace with our evolving economy. Our talent pool, affordable real estate and low cost of living have created a technology boom in our region, fueling a sense of optimism among both small and large organizations.
The future of transportation is being born right here with new technologies like autonomous vehicles and green mobility. The Motor City remains a leader in the automotive industry, undeterred by the rapid technological changes needed to compete in today’s market. And young people are noticing. Since 2014, Detroit’s millennial population has increased by 10.9%, ranking us second among peer regions.
Innovation and an entrepreneurial spirit are thriving in Michigan, demonstrated by our remarkable patent record over the last five years. Between 2014 and 2018, we’ve seen a 30.6% increase in the number of patents awarded, over 26 percentage points above the national average.
At Citizens, we’re excited to see continued economic growth, but work remains to be done to ensure the overall health of our region. That is why we continue to support local organizations to strengthen our community, including the Detroit Regional Chamber with its focus on education, economic development and workforce preparedness, as well as the Gleaners Community Food Bank that works to provide a hunger-free summer to children.
We’re happy to join you as we recognize our region’s success over the past year – and look forward to working together to ensure an even brighter future.
DETROITCHAMBER.COM 3
DEFINING THE REGION The Detroit region is a united 11-county area that encompasses more than 300 municipalities and 7,062 square miles with rich geographic, human, and business assets. Home to numerous best-in-class educational institutions and more than 300,000 businesses including 10 Fortune 500 companies, and 1,300 foreign firms from 38 countries – the region has the talent, resources, and cutting-edge facilities to drive innovation. Anchored by the city of Detroit and located on an international border supported by robust logistics infrastructure, the region offers unrivaled opportunities to compete in the global economy.
With a population more than 5.4 million people, the region has seen 0.6% growth since 2010. The counties that have experienced the largest growth include Washtenaw, Livingston, and Oakland.
POPULATION OVERVIEW 2018
Population 2010
Population 2018
2010-2018 % Change
Number of Households
(2018)
Detroit Region 5,389,392 5,421,194 0.6 2,151,419
Genesee 425,790 406,892 (4.4) 169,469
Lapeer 88,319 88,028 (0.3) 33,560
Lenawee 99,892 98,266 (1.6) 38,388
Livingston 180,967 191,224 5.7 72,676
Macomb 840,978 874,759 4.0 347,508
Monroe 152,021 150,439 (1.0) 61,586
Oakland 1,202,362 1,259,201 4.7 503,645
St. Clair 163,040 159,337 (2.3) 65,751
Shiawassee 70,648 68,192 (3.5) 28,218
Washtenaw 345,066 370,963 7.6 138,672
Wayne 1,820,641 1,753,893 (3.7) 687,546
713,777 672,662 (5.8) 266,333
Michigan 9,883,640 9,995,915 1.1 3,957,466
TA B L E O F C O N T E N T S
Source: U.S. Census Bureau, 2018 QuickFactsNote: Data benchmarked against peer Metropolitan Statistical Areas (MSA) use the six-county Detroit region. All other data, unless specified city or state, use the 11-county Detroit region.
Detroit
STATE OF THE REGION 2019-20204
E C O N O M I C D E V E L O P M E N T S T R AT E G Y
O U R P R O G R A M S
REGIONAL JOBS Goal: 1.5% above the national average Current: 1.4% (Detroit) 1.5% (National)
UNEMPLOYMENT Goal: 4.5% Current: 4.0% (Detroit) 3.3% (National)
PER CAPITA INCOME Goal: $37,577 Current: $33,733
PEOPLE
PUBLIC TRANSIT Goal: 55 million ridership Current: 42.6 million ridership
POPULATION GROWTH Goal: 1.0% annual growth Current: 0.6% annual growth
DETROIT’S COMMUNITY WELL-BEING INDEX Goal: Above 50th percentile Current: 117 out of 156
COMMUNITY
THIRD-GRADE READING SCORES Goal: 58% Current: 43.2% (2018-2019)
ADULTS WITH POSTSECONDARY DEGREES Goal: 60%* Current: 40.7%** *Professional certificates and above by 2030 **Associate degree and above
PATENT GROWTH Goal: Grow faster than national average Current: 3.4% (Michigan) -3.6% (National) (2017-2018)
TALENT
FOREIGN DIRECT INVESTMENT Goal: $12.1 billion Current: $10 billion
INTERNATIONAL FIRMS Goal: 125 new foreign facilities Current: 132 new foreign facilities
FOREIGN-BORN POPULATION WITH A DEGREE Goal: Top five ranking among peer regions Current: Ranked fifth
GLOBAL CONNECTIVITY
MOBILITY TESTING FACILITIES/PROJECTS Goal: No. 1 in the world Current: Tied for No. 1 in the world with Germany and Japan
INCREASE CAV POLICIES Goal: No. 1 in CAV policies implemented Current: Tied for No. 1 in CAV policies implemented with Nevada
NEXT-GENERATION MOBILITY
DETROIT PROMISE
PEOPLE COMMUNITY TALENTGLOBAL
CONNECTIVITYNEXT-GENERATION
MOBILITY
P O S I T I O N I N G T H E R E G I O N F O R G L O B A L C O M P E T I T I V E N E S SThe Detroit Regional Chamber has an economic development strategy to ensure the 11-county Detroit region is educated, employed, and healthy to compete in the 21st century global economy. The strategy is centered around key metrics used to measure our region against successful peer regions.
MICHIGAN 2030P L A N
DETROITCHAMBER.COM 5
E C O N O M I C I N D I C AT O R S
OVERVIEW
REAL GDP GROWTH, DETROIT MSA 2013-2017
REAL GDP GROWTH, MICHIGAN 2014-2018
The Detroit regional economy continues to grow in jobs, per capita income, median home values, and educational attainment among other indicators. Additionally, population, labor force participation, and poverty rates have slightly improved. However, over the past year growth has decreased for key metrics including exports, housing permits, and foreign direct investment, while unemployment rates increased slightly.
In 2018, Michigan’s real Gross Domestic Product (GDP) reached $468 billion, ranking the 13th largest GDP in the U.S. The five-year and one-year growth lagged slightly behind the national average.
In 2017, the Detroit region’s real GDP five-year growth lagged slightly behind the national average, while one-year growth outperformed the national growth rate.
Note: The Detroit region GDP data for 2018 will be available in mid-December 2019 and an updated comparison will be available in January 2020.
0% 5% 10% 15% 20%St. LouisChicagoDetroit
National
ClevelandMinneapolis
BostonPittsburgh
AtlantaDallas
Seattle 18.3%
16.4%
16.0%
11.0%
10.8%
9.7%
9.5%
9.4%
8.9%
7.3%
2.5%
0% 5% 10% 15% 20%Missouri
IllinoisOhio
PennsylvaniaMinnesotaMichigan
National
MassachusettsTexas
GeorgiaWashington 19.1%
12.6%
10.9%
10.6%
10.2%
8.8%
7.5%
7.1%
5.5%
4.1%
3.5%
Source: U.S. Bureau of Economic Analysis
PHOTO:
O N E - Y E A R C H A N G EMichigan: 2.7%National: 2.9%
Among peers in year-over-year change#3
O N E - Y E A R C H A N G EDetroit: 2.7%National: 2.2%
Among peers in year-over-year change#7
Construction underway on FCA LLC’s new Detroit plant.Credit: FCA LLC
STATE OF THE REGION 2019-20206
E C O N O M I C I N D I C AT O R S
LABOR FORCE PARTICIPATION RATE 2018
UNEMPLOYMENT RATE, NATIONAL COMPARISON 20 08-2019
The Detroit region’s highly skilled workforce of 2.67 million is larger than the workforces of 28 states. The labor force participation rate in the region slightly increased over the past year to 62.6%, outpacing the national rate and tying with Seattle. However, the region has the lowest labor force participation among peer regions.
The Detroit region, which includes the cities of Ann Arbor, Detroit, Flint, and Monroe, experienced a rise in the monthly unemployment rate in July 2019 for the first time since 2009. The region falls within 1.3 percentage points of the national rate.
Additionally, the city of Detroit’s unemployment rate was 11.1% in July 2019, down from a peak of 28.3% in 2009.
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimates
Source: U.S. Bureau of Labor StatisticsNote: Regional unemployment rates have been adjusted by BLS for previous years.
0%
10%
20%
30%
40%
50%
60%
70%
80%71.6%
68.8% 68.8% 68.7% 67.1% 67.1% 65.4% 63.8% 63.3% 63.0% 62.6%
July 2008
July 2009
July 2010
July 2011
July 2012
July 2013
July 2014
July 2015
July 2016
July 2017
July 2018
July 2019
3.3%
1.3%
Detroit Region
United States
7.0%
0%
5%
10%
15%
20%
16.7%
5.3%
4.0%
9.7%
9.3%
6.0%
O N E - Y E A R C H A N G EDetroit: 0.3 percentage points
National: 0.1 percentage points
Among peers in year-over-year change#4
DETROITCHAMBER.COM 7
PRIVATE SECTOR JOB GROWTH 2014-2018
JOBS BY INDUSTRY 2019
Since 2014, private sector job growth has remained positive for the Detroit region. Ranking fourth among peers, the region falls just below the nation in both five-year and one-year growth rates.
The region has gained more than 318,000 private sector jobs since the recession, similar to Boston and Seattle.
Health care and social assistance continues to be the Detroit region’s largest industry, accounting for 13.9% of the region’s employment. The top four industries – health care, government, manufacturing, and retail trade – employ more than 1.2 million people.
13.9%Health Care and Social Assistance
3.4%Transportation and Warehousing
3.7%Wholesale Trade
4.5%Construction
6.4%Administrative and Supportand Waste Management and Remediation Services
8.2%Accommodation and Food Services
4.3%Other Services (except Public Administration)
12.4%Government
11.7%Manufacturing
358,830
302,488
260,790
115,196
110,452
94,754
9.4%Professional, Scienti�c, and Technical Services
242,872
8.6%Other
3.5%Finance and Insurance
223,563
91,624 86,952
321,879
10.1%Retail Trade
164,652
212,106
Source: U.S. Bureau of Labor Statistics
Source: EMSI
0% 5% 10% 15%
Pittsburgh
Cleveland
Chicago
St. Louis
Minneapolis
Boston
Detroit
National
Atlanta
Dallas
Seattle 12.9%
12.8%
12.3%
7.7%
8.2%
7.5%
6.9%
6.1%
5.9%
3.0%
2.9%
O N E - Y E A R C H A N G EDetroit: 1.4%National: 1.9%
Among peers in year-over-year change#4
STATE OF THE REGION 2019-20208
E C O N O M I C I N D I C AT O R S
PER CAPITA INCOME GROWTH 2014-2018
In 2018, the Detroit region’s per capita income reached $33,733. Despite above-average growth over the past five years, the region experienced the lowest per capita income growth among peers last year at 2.5%.
OFFICE AND INDUSTRIAL VACANCY RATES, NATIONAL COMPARISON 2014-2019
Office vacancy rates have declined every year since 2010, when they peaked at 17%. Today, industrial vacancy rates remain below the national rate for the sixth straight year at 3.2%. The region’s office vacancy rates remain below the national rate by 0.6%.
Office Following the second quarter of 2019, the region’s office vacancy rate dropped to 9.1%. Quoted rental rates were $19.74 per square foot, up from $19.32 the previous year.
Industrial Compared to peer regions, Detroit’s industrial vacancy rate was the lowest mid-year 2019 at 3.2%, followed by Minneapolis and Cleveland. From 2018 to 2019, quoted rates increased to $6.24 per square foot from $5.94 the previous year.
0%
5%
10%
15%
3.9%3.0% 3.0% 3.1% 3.1% 3.2%
12.5%
10.7%
9.7% 9.4% 9.1%
2015 2016 2017 2018 2019 Q1 2019 Q2
9.5%
Detroit Of�ceDetroit Industrial
U.S. Of�ceU.S. Industrial
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimate
Source: CoStar
0% 5% 10% 15% 20% 25% 30%Minneapolis
Dallas
Boston
Pittsburgh
National
St. Louis
Detroit
Cleveland
Chicago
Atlanta
Seattle 25.4%
21.8%
19.5%
19.4%
18.2%
17.4%
17.1%
16.7%
16.7%
15.3%
14.4%
O N E - Y E A R C H A N G EDetroit: 2.5%National: 4.4%
Among peers in year-over-year change#10
DETROITCHAMBER.COM 9
12
RANK RANK
1
13 2
136 3
147 4
220 5
301 6
303 7
321 8
366 9
418 10
2019 FORTUNE 500 COMPANIES 2019 LARGEST PRIVATE COMPANIES
Ford Motor Company
General Motors Co.
Penske Automotive Group
Lear Corp.
DTE Energy
BorgWarner
Ally Financial
Autoliv
Masco
American Axle & Manufacturing Inc. (AAM)
Penske Corp.
Rock Ventures
MeridianHealth, A WellCare Company
Ilitch Companies
Plastipak Holdings Inc.
Barton Malow Co.
Inteva Products LLC
Moroun Family Holdings
The Suburban Collection
International Automotive Components (IAC)
$160,338 $31,800
$6,560
$3,811
$3,600
$2,782
$2,591
$2,500
$2,404
$2,294
$2,200
2018 REVENUES (MILLIONS)
2017 REVENUES (MILLIONS)
$147,049
$22,785
$21,148
$14,212
$10,529
$10,466
$9,801
$8,359
$7,270
COMPANY COMPANY
RESIDENTIAL CONSTRUCTION PERMITS GROWTH 2014-2018
Over the past five years, the region’s residential construction permits totaled 38,510, with a record high of 10,000 in 2017. However, the permits declined 29% in the region over the past year, most significantly impacted by a decrease in construction permits for structures with five units or more. Detroit ranks sixth among peer regions, with a residential construction growth rate of 13.8% since 2014.
B U S I N E S S The Detroit region is home to 10 of Michigan’s 16 Fortune 500 companies with headquarters located in the state. The region’s dynamic business bases are anchored by the automotive, health care, and manufacturing sectors. As the epicenter of the global automotive industry, Ford Motor Company and General Motors Co. are among the top 15. Kelly Services also continues to near the list at 503.
Penske Corp. and Rock Ventures lead as the Detroit region’s largest private companies with a combined revenue of more than $38 billion. Additionally, FCA US LLC, located in Auburn Hills, employs more than 35,000 people in Southeast Michigan, and earned $79.1 billion in revenue in 2018.
-10%
0%
10%
20%
30%
40%
50%
60%
64.9%
13.8%
28.4%
18.0%
26.9%
12.8%
4.9%1.9%
-3.9%
59.4%
47.8%46.0%
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimates
Source: Fortune magazine Source: Crain’s Detroit Business
O N E - Y E A R C H A N G EDetroit: -29.0%National: 3.6%
Among peers in year-over-year change#10
STATE OF THE REGION 2019-202010
C O M M U N I T Y
A healthy community is imperative for growth and economic sustainability. Over the past year, the Detroit region has shown growth in population, home values, household income, and community well-being. However, rankings among peers land the region in the middle of the pack. Poverty rates in the city of Detroit continue to surpass peer regions, despite regional progress, and remains a critical focus area.
C O M M U N I T YOVERVIEW
POPULATION GROWTH 2014-2018
After several years of declining population, the Detroit region continued to experience modest growth over the past year. The five-year reported growth was 0.3%, ranking the region sixth among peers. In 2018, the region’s population ranked as the 14th largest metro area in the nation, down from 12th largest in 2010.
-2%
0%
2%
4%
6%
8%
10%
8.4%
7.3%
6.4%
3.9%
2.8% 2.7%
0.3% 0.1% -0.7%-0.5% -1.3%
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimates
Young Detroiters serve a nearby neighborhood.Credit: Quicken Loans
O N E - Y E A R C H A N G EDetroit: 0.1%National: 0.6%
Among peers in year-over-year change#6
DETROITCHAMBER.COM 11
PUBLIC TRANSIT
55,000,000 ridership
44,905,299 ridership
Goal:
Current:
MILLENNIAL POPULATION GROWTH 2014-2018
The Detroit region’s 25- to 34-year-old population rose over the past five years by 10.9% to 581,477 people. This is second- highest growth among peers and outpaced the national average by 6.2 percentage points.
MEDIAN HOME VALUE GROWTH 2014-2018
Median home values for the Detroit region continue to rise. Since 2014, the region’s median home value has grown by 32.2%, ranking fourth among peers.
In 2018, the median home value in the Detroit MSA was $180,300, ranking the region third for most affordable housing among peer regions.
-2% 2% 6% 10% 14%
Chicago
St. Louis
Pittsburgh
Minneapolis
National
Cleveland
Atlanta
Boston
Dallas
Detroit
Seattle 14.1%
10.9%
9.5%
7.3%
6.7%
5.4%
4.7%
2.5%
2.2%
1.8%
-0.3%
10%
15%
20%
25%
30%
35%
40%
45%
50% 48.7%
45.6%
37.2%
32.2%
26.8%
25.0%23.8%
19.0%
17.0%15.8%
14.7%%
Source: U.S. Census Bureau, 2018 American Community Survey One-Year EstimatesNote: Includes ages 25 to 34.
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimates
#6
O N E - Y E A R C H A N G EDetroit: 5.1%National: 5.6%
Among peers in year-over-year change#6
O N E - Y E A R C H A N G EDetroit: 2.5%National: 0.8%
Among peers in year-over-year change#2
STATE OF THE REGION 2019-202012
C O M M U N I T Y
MEDIAN HOUSEHOLD INCOME GROWTH 2014-2018
POVERTY RATE BY CITY 2018
Median household income in the Detroit region rose to $60,513, with a growth of 3.6% over the past year. The region lags behind peer regions including Minneapolis at $79,578 and Atlanta at $69,464. However, the Detroit region has experienced rising household income over the past five years, ranking fifth among peers in growth at 15.3%.
Despite declining over the past five years from 39% to 33%, the city of Detroit had the highest poverty rate among peer cities in 2018. At the regional level, Detroit, along with Cleveland, has the largest share of its population living below the poverty level.
0% 5% 10% 15% 20% 25%
Cleveland
St. Louis
Pittsburgh
Chicago
Minneapolis
Detroit
National
Dallas
Boston
Seattle
Atlanta 23.7%
23.3%
17.2%
16.7%
15.4%
15.3%
15.1%
14.9%
14.2%
13.1%
12.7%
0% 10% 20% 30% 40%
Seattle
National
Minneapolis
Dallas
Chicago
Boston
Atlanta
Pittsburgh
St. Louis
Cleveland
Detroit 33.4%
33.1%
22.1%
20.5%
20.2%
18.2%
18.0%
18.0%
17.4%
13.1%
11.0%
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimates
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimates
Detroit: 3.6%National: 2.7%
O N E - Y E A R C H A N G EDetroit: 3.6%National: 2.7%
Among peers in year-over-year change#4
O N E - Y E A R C H A N G EDetroit: -1.1 percentage points
National: -0.3 percentage points
Among peers in year-over-year change#2
DETROITCHAMBER.COM 13
COMMUNITY WELL-BEING INDEX 2018
In 2018, the Detroit region classified in the third quartile of the Community Well-Being Index and increased its ranking to 117 out of 156 communities. Despite improvements, the region remains second to last among peer regions. Ann Arbor continues to rank highest at fifth, up from 12th the previous year, and Flint ranked at 130.
R E G I O N A L T R A N S P O RTAT I O N In 2018, more than 42.6 million trips occurred across the Detroit region’s four transit systems, a 0.6% increase over the previous year. The region was one of the few large metropolitan areas that experienced growth in bus ridership, up 240,000 riders from 2017 to 2018 according to the National Transit Database.
In 2019, the City of Detroit implemented Dart, a single payment system to ride DDOT, SMART, and the QLINE streetcar. The service eliminates transfers and additional fees, along with providing unlimited rides within a time limit on the pass. Dart’s mobile app also creates user-ease by providing cashless payment.
In 2018, the 1-mill rate SMART millage was renewed by voters in Macomb, Oakland, and Wayne counties, of which SMART transportation serves. The millage ensures the 9 million rides SMART provides annually will continue.
M I C H I G A N S TAT E W I D E V O T E R P O L L
0 20 40 60 80 100 120 140
St. Louis
Detroit
Cleveland
Chicago
Pittsburgh
Atlanta
Seattle
Dallas
Minneapolis
Boston 25
26
39
51
57
75
83
109
117
125Source: Gallup-Healthways Well-Being Index
Source: Gelngariff Group Poll, Commissioned by Detroit Regional Chamber. Live operator telephone survey of likely 2020 Michigan voters, conducted July 17-20, 2019. Margin of error of +/-4.0% with a 95% level of confidence.
In July 2019, the Detroit Regional Chamber commissioned a statewide policy poll to find out which issues matter most to Michigan voters in advance of the 2020 presidential election.
When Michigan voters were asked if people of color in our nation were provided equal quality of health care, equal quality of education, and equal access to mortgages and loans, African American voters widely believe people of color are treated unfairly on every marker, while white voters are relatively split in every category.
CategoryAfrican American
Treated FairlyAfrican American Treated Unfairly
WhiteTreated Fairly
WhiteTreated Unfairly
Health Care 17.2% 73.6% 43.4% 32.8%Education 10.3% 88.5% 47.6% 43.2%Mortgage/Loans 10.3% 86.2% 44.3% 32.6%
STATE OF THE REGION 2019-202014
E D U C AT I O N A N D TA L E N T
The Detroit region’s economy and prosperity depends on generating a strong talent pool and preparing a diverse pipeline of graduates entering the workforce. Educational attainment in the region continues to lag peer regions, despite growth over the past year. Graduating and retaining the 256,000 students enrolled in the region’s educational institutions will be vital to providing Detroit and Michigan businesses with a robust workforce moving into the next decade.
E D U C AT I O NA N DTA L E N T
OVERVIEW
Between 2014 and 2018, the region’s population with an associate degree or higher grew by 2.4 percentage points to 40.7%. Last year, the region’s population with an associate degree or higher grew by 23,440 people. Individuals with a bachelor’s degree reported the highest growth with an increase of 3.9%, along with graduate degree or higher increasing by 1.6%.
EDUCATIONAL ATTAINMENT 2018
0% 10% 20% 30% 40% 50% 60%
Detroit
National
Cleveland
Dallas
St. Louis
Chicago
Pittsburgh
Atlanta
Seattle
Minneapolis
Boston 56.2%
53.1%
53.0%
47.3%
45.8%
45.7%
44.1%
42.6%
41.4%
41.2%
40.7%
Source: U.S. Census Bureau, 2018 American Community Survey One-Year Estimates Note: Includes percentage of population 25 years and over with an associate degree or higher.
O N E - Y E A R C H A N G EDetroit: 1.9%National: 2.7%
Among peers in year-over-year change#8
Students learn trades skills through hands-on curriculum.Credit: Randolph Career and Technical Center
DETROITCHAMBER.COM 15
Between 2014 and 2018, the 11-county region gained more than 155,000 jobs, which was dominated by transportation and material moving occupations’ growth of 14%. The largest net gain in jobs was also led by transportation and material moving occupations, with an increase of more than 23,000 jobs since 2014.
Employment in the Detroit region exceeded 2.56 million in 2018. Occupations projected to have the highest job growth by 2023 include management, and transportation and material moving. Together, they are projected to add more than 28,000 jobs. Health practitioners and technical occupations are also projected to continue to experience strong growth, adding more than 10,000 jobs.
RANKED INSTITUTIONS 2018
TOP 10 FASTEST-GROWING OCCUPATIONS 2014-2018
The Detroit region is home to several ranked public and private universities and colleges, featuring a diverse range of undergraduate and graduate programs.
In 2018, Michigan’s educational institutions awarded more than 117,000 degrees, ranking ninth among all states for degrees conferred.
Occupation 2014 Jobs 2018 Jobs2014-2018Change
2014-2018 % Change
Transportation and Material Moving 161,411 184,579 23,168 14%
Architecture and Engineering 92,095 105,274 13,179 14%
Computer and Mathematical 76,479 87,332 10,853 14%
Business and Financial Operations 166,016 186,972 20,956 13%
Construction and Extraction 106,117 118,462 12,345 12%
Management 178,594 198,812 20,218 11%
Farming, Fishing, and Forestry 5,339 5,917 578 11%
Health Care Practitioners and Technical 166,082 179,645 13,563 8%
Arts, Design, Entertainment, Sports, and Media 83,523 89,537 6,014 7%
Community and Social Service 39,107 41,547 2,440 6%
Source: U.S. News and World Report*Regional pipeline institution though not in Detroit region geography
Source: EMSI
Institution Location Enrollment Rank
National Universities
University of Michigan Ann Arbor 46,716 25
Michigan State University* Lansing 50,351 84
University of Detroit Mercy Detroit 5,111 179
Central Michigan University* Mount Pleasant 21,705 240
Wayne State University Detroit 27,025 246
Western Michigan University* Kalamazoo 22,562 246
Regional Universities Midwest
Kettering University Flint 2,315 13
University of Michigan-Dearborn Dearborn 9,468 33
Lawrence Technological University Southfield 2,915 43
Madonna University Livonia 3,044 46
Siena Heights University Adrian 2,425 111
Regional Colleges Midwest
Adrian College Adrian 1,856 18
National Universities
STATE OF THE REGION 2019-202016
E D U C AT I O N A N D TA L E N T
JOB GROWTH IN STEM OCCUPATIONS 2014-2018
LARGEST SKILLED TRADES OCCUPATIONS 2018
Detroit’s STEM occupations five-year growth ranks fifth among peers. Since 2014, the region has gained more than 31,000 workers, employing more than 320,000 total in STEM-related positions. STEM jobs that have experienced the most growth include applications software developers, industrial engineers, and mechanical engineers.
In 2018, the Detroit region had more than 580,000 skilled trades-related occupation workers, a 7.2% increase and adding more than 39,000 workers since 2014.
In 2019, there were an average 39,516 monthly postings for skilled trades-related occupations. Heavy and tractor-trailer truck drivers remain one of the highest in-demand skilled trades occupations with an average of nearly 17,000 active job postings each month. Light truck or delivery drivers and maintenance and repair workers follow with an average of 2,500 monthly job postings.
0% 5% 10% 15% 20%
Cleveland
Pittsburgh
Chicago
St. Louis
National
Boston
Detroit
Minneapolis
Seattle
Dallas
Atlanta 16.1%
14.5%
14.1%
10.7%
10.6%
10.4%
9.9%
8.9%
7.8%
7.3%
5.7%
Occupations 2018 Jobs
Assemblers and Fabricators, All Other, Including Team Assemblers 60,224
Laborers and Freight, Stock, and Material Movers, Hand 37,358
Heavy and Tractor-Trailer Truck Drivers 31,099
Maintenance and Repair Workers, General 22,138
Construction Laborers 18,599
Inspectors, Testers, Sorters, Samplers, and Weighers 16,850
Light Truck or Delivery Services Drivers 15,204
First-Line Supervisors of Production and Operating Workers 15,190
Carpenters 15,111
Electricians 14,925
Machinists 13,705
Source: EMSI
Source: EMSI
O N E - Y E A R C H A N G EDetroit: 1.4%National: 2.1%
Among peers in year-over-year change#8
DETROITCHAMBER.COM 17
PATENTS GRANTED 2014-2018
Over the past five years, the number of patents granted in Michigan continued to grow. The state ranked first among peer states with 30.6% growth since 2014. In 2018, Michigan inventors were awarded 7,634 patents, a record number which ranked the state third among peers.
P R I VAT E I N V E S T M E N T
0
5%
10%
15%
20%
25%
30%
35%50,000
40,000
30,000
20,000
10,000
5,000
30.6% 16.1% 8.6% 7.6% 6.5% 1.8% 0.3% -1.3% -2.9% -13.4% 4.5%
Percent Change
Total Patents
Source: United States Patent and Trademark Office
Source: National Science Foundation, 2017
V E N T U R E C A P I TA L P R I VAT E LY F U N D E D R & D
Venture capital firms in the state manage $3.7 billion in funds according to the Michigan Venture Capital Association
Funds spent for private sector R&D in Michigan paid for by businesses
State in the nation, after California and Washington for private sector investment
Over the past five years, venture-backed startup companies operating in Michigan have increased by 37%
Life science/health care (50%) and information technology (32%) sectors lead in venture funds invested
27 $19.1billion
#337%
50%32%
O N E - Y E A R C H A N G EMichigan: 3.4%National: -3.6%
Among peers in year-over-year change#1
STATE OF THE REGION 2019-202018
G L O B A L C O N N E C T I V I T Y
The Detroit region is one of the most globally connected regions in the nation. In addition to sharing an international border with Canada, the region is home to more than 1,300 foreign firms, the sixth largest export market, and the highest-ranked international airport in passenger satisfaction according to the J.D. Power 2019 North American Airport Satisfaction StudySM.
OVERVIEW
FOREIGN DIRECT INVESTMENT, MICHIGAN 2014-2018
Investment from foreign-held companies continues to be significant to Michigan’s economy. Since 2014, foreign-held companies have committed to 300 projects, investing more than $9.6 billion and creating more than 37,500 jobs in Michigan.
In 2018, Michigan received investment from 50 announced projects totaling more than $1 billion that are expected to add more than 4,800 jobs to the state’s economy. This is the lowest investment in the past five years.
Over the past 10 years, Michigan ranks first in average number of jobs per project and ninth among all states in total number of projects.
2014 2015 2016 2017 20180
10
20
30
40
50
60
70
80 $3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
Projects
$ Invested
60 44 76 70 50
Source: Financial Times FDIMarkets.com
The Blue Water Bridge is an international crossing connecting Port Huron, Mich. to Sarnia, Ontario, Canada.Credit: Blue Water Area Convention and Visitors Bureau
G L O B A LC O N N E C T I V I T Y
The Detroit Metropolitan Wayne County Airport (DTW)
1,100daily flights
121destinations
35.2 million+passengers served in
2018 - an increase of 1.5%
460peak-day
departures
#1in customer satisfaction
for mega airports
24 million+customers in
2018
Hub
DETROITCHAMBER.COM 19
FOREIGN-BORN POPULATION 2014-2018
EXPORTS BY METRO 2018
In 2018, the Detroit region was home to more than 446,550 foreign-born residents. With an increase of 11.1% over the past five years, the region outpaced the national growth rate of 5.5%. The region’s one-year growth rate of 0.8% ranked it seventh in foreign-born population growth among peer regions, on par with the national growth rate of 0.5%.
Since 2012, Wayne County has seen its immigrant population increase by 24.1%, while the overall population has decreased by 2.2%.
Ranking third among peers, area companies in the Detroit region exported more than $44 billion in goods across the globe. Despite a 3.1% decline in exports, the region ranks sixth among all MSAs in export value. In 2018, Michigan companies exported more than $32 billion in goods to Canada and Mexico, ranking the state as the largest exporter of goods to Canada and the third largest to Mexico.
$0 $10 $20 $30 $40 $50 $60
Cleveland
Pittsburgh
St. Louis
Minneapolis
Atlanta
Boston
Dallas
Detroit
Chicago
Seattle $59.7
$47.3
$44.1
$36.3
$24.5
$24.1
$20.0
$10.9
$9.8
$9.4
Exports (in Billions)
20%
15%
10%
5%
0%0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000Population
Percent Growth
Source: International Trade Administration
Source: U.S. Bureau of the Census
O N E - Y E A R C H A N G EDetroit: -3.1%National: 7.7%
Among peers in year-over-year change#10
STATE OF THE REGION 2019-202020
N E X T- G E N E R AT I O N M O B I L I T Y
N E X T- G E N E R AT I O N M O B I L I T Y
Today, Michigan is the most progressive state for R&D, testing, and deployment of next-generation mobility technology. This can be attributed to the foundation of industry assets, progressive policy, and a robust testing and development infrastructure. Statewide automotive cluster associations such as MICHauto and initiatives such as PlanetM have formed a connected next-generation mobility ecosystem within the state.
Students work in the university’s Mobility Research Center.Credit: Kettering University
OVERVIEW
MICHIGAN’S GROWING AUTOMOBILITY ECOSYSTEM
T E S T I N G A N D VA L I D AT I O N C E N T E R S
A U T O M O T I V E C E N T E R
N E X T- G E N E R AT I O N M O B I L I T Y
E N T R E P R E N E U R S
American Center for Mobility
MCity
500 acres $135 million investment
59 industry partners
$26.5 million in research, development,
and deployment projects
Amazon announced a $700 million round of funding in Rivian, a Michigan-based electric vehicle startup. Rivian plans to launch an electric pickup and electric SUV in the U.S. in 2020.
Bollinger Motors • Ford Smart Mobility
Maven • Rivian • SERES
Toyota Research Institute • Waymo
Derq, a Dubai-based AI and V2X technology company with a presence in the PlanetM Landing Zone, partnered with MDOT to successfully pilot sensor technology at a major Detroit intersection.
mobility technology
startups
corporate partners from traditional
automotive industry 35 investment organizations active in the mobility space, an additional 72 organizations provide entrepreneurial support.
21 OEM headquarters or technology centers
1.8 million vehicles assembled at plants
DETROITCHAMBER.COM 21
TA L E N T A D VA N TA G Eengineers in Michigan, ranking third in the nation
of U.S. automotive manufacturing jobs are in Michigan
44,000 mechanical engineers 31,000 industrial engineers 5,000 commercial and industrial designers
L E G I S L AT I O N
Michigan Connected and Autonomous Vehicle (CAV) legislation leads the nation, allowing driverless cars and vehicle platoon testing on public roads.
In 2019, Michigan State Sen. Mallory McMorrow (D-MI 13) introduced a package of bills with bipartisan sponsorship that would support the growth of electric vehicles in Michigan, and enable a statewide charging network.
D E P L OY M E N T S A N D P I L O T P R O J E C T S
for U.S. DOT-funded operational connected vehicle deployments
27 square-miles
5,000 test vehicles
LARGEST real-world deployment of CAV infrastructure
ANN ARBORCONNECTED
VEHICLE TESTENVIRONMENT
international border crossing by U.S. Army/TARDEC and MDOT truck platooning test
Roadside Units (RSUs) installed on roadways in Macomb County, with plans for 740 by 2021.
U.S. DOT federal grant for R&D and testing of self-driving technologies awarded to State of Michigan, City of Detroit, University of Michigan, American Center for Mobility
E D U C AT I O N P I P E L I N E
in the nation for high school and early elementary FIRST robotics teams
engineering degrees conferred
annually
nationally ranked undergraduate
engineering programs
Macomb Community College Center for Advanced
Automotive Technology
Washtenaw Community College Advanced Transportation Center
nationally ranked engineering graduate programs
Center for Advanced Mobility, awarding first-of-its-kind Master of Mobility at Wayne State University’s College of Engineering in conjunction with the Michigan Mobility Institute
COMMUNITY COLLEGE MOBILITY CAREER PROGRAMS
I N D U S T RY 4 . 0
12 sites and hubs operated by Michigan
Cyber Range
1st high school in the nation with a dedicated cybersecurity program – Pinckney Community
High School
28,000 industrial robots, more than any other state
University of Michigan Ford Robotics Facility - 140,000 sq. ft.- Opens in 2020
ROBOTICS
22 STATE OF THE REGION 2019-2020
Aerospace and Defense I N D U S T RY S P O T L I G H T: A U T O M O T I V E
I N D U S T RY S P O T L I G H T: A U T O M O T I V E
F O O T P R I N T
96 of the Top 100
suppliers to North America have a presence or
headquarters in Michigan
537automotive OEMs
or components manufacturers
employ more than 123,000 workers within Southeast
Michigan
16universities and colleges with
nationally ranked undergraduate
engineering programs, four of which also have nationally ranked
graduate programs
21Original Equipment
Manufacturers(OEM)
24OEM components/
materials plants
2,200engineering,
R&D, testing, and validation facilities
11 Assembly plants
712,000 jobs in Michigan
$225 billion contribution
to Michigan’s economy
AUTOMOTIVE GROSS DOMESTIC PRODUCT 2017
Michigan accounts for 25.4% of the nation’s automotive real GDP, an increase of 2% over the past year. In 2017, Michigan reported an automotive real GDP of $32.7 billion, ranking first among peers and larger than the next two states – Indiana and Texas – combined.
As the global leader in automotive, Michigan’s industry accounts for $225 billion to the state economy. With 83% being automotive manufacturing, this demonstrates a healthy industry that is positioned for growth and transformation.
OVERVIEW
College for Creative Studies Transportation Design department chair and student discuss a project.Credit: Driven
23 DETROITCHAMBER.COM
G R E AT E S T C O N C E N T R AT I O N O F G L O B A L O E M s
H E A D Q U A RT E R S I N M I C H I G A N
A M E R I C A N H E A D Q U A RT E R S O R R & D FA C I L I T Y I N M I C H I G A N
U . S . M A R K E T S H A R E S A L E S 2 0 1 8
U.S. Cars Light Trucks Total Vehicles23.5% 53.2% 44.0%
C A S E S T U D Y
How Stoneridge’s MirrorEye® Technology is Transforming the Trucking Industry Automotive supplier Stoneridge, headquartered in Novi, Mich., is revolutionizing safety technology in the trucking industry with its MirrorEye® Camera Monitor System (CMS). Though “mirror” is in its name, this technology eliminates the need for conventional rear-view mirrors on semi-trucks, improving driver vision and minimizing blind spots. In fact, it is the only Federal Motor Carrier Safety Administration (FMCSA)-exempted driver vision system for replacing a truck’s mirrors.
State-of-the-art external cameras and digital monitors inside of the truck cab work together to not only offer an expanded field of view, but also cut fuel costs with improved aerodynamics and reduce insurance rates with enhanced driver and vehicle safety. The ergonomic design also provides greater comfort for drivers.
“At Stoneridge, we’re working to anticipate our customers’ needs and challenges, and develop and deliver systems-based solutions that customers may not have expected,” said Jon DeGaynor, president and CEO of Stoneridge.
Stoneridge is playing an important role in the advancement of vehicle intelligence and safety technology in the commercial vehicle space. MirrorEye® is currently available commercially for fleets and collaborations are underway with OEMs. MirrorEye technology provides better visibility with exterior cameras and
digital displays.Credit: Stoneridge
24 STATE OF THE REGION 2019-2020
Health CareI N D U S T RY S P O T L I G H T: A U T O M O T I V E
AUTOMOTIVE MANUFACTURING JOB GROWTH AND FORECAST 2014-2023
AUTOMOTIVE MANUFACTURING EMPLOYMENT BY INDUSTRY SEGMENT 2018
The Detroit region accounts for 13.2% of the nation’s automotive manufacturing workforce. The top three occupations are assemblers and fabricators, industrial engineers, and mechanical engineers, which collectively makes up 41% of the automotive manufacturing workforce.
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
125,000
120,000
115,000
110,000
105,000
100,000
Source: EMSI
70%Motor Vehicle Parts Manufacturing
27%Motor Vehicle Manufacturing
3%Motor Vehicle Body and Trailer Manufacturing
33,278
3,771
86,290
Source: EMSI
2018 EMPLOYMENT GROWTH 2018 AVERAGE WAGE FOR AUTOMOTIVE MANUFACTURING
2.1% growth, with 7,000 jobs gained year-over-year. The outlook for the next five years remains stable with a slight increase.
$80,330Detroit Region
$63,884National Average
vs.
25 DETROITCHAMBER.COM
PASSENGER CAR AND L IGHT TRUCK PRODUCTION 2013-2018
MICHIGAN MANUFACTURING 2018
In 2018, Michigan’s automotive production totaled 1.8 million units, a decrease of 20% over the past five years. Although, Michigan continues to lead among all states in light vehicle production, producing 480,000 more vehicles than the next highest state – Indiana. The share of U.S. production occurring in the state totals nearly 17%, while the share of North American production decreased from 15% to 11% over the past five years.
1,800,000
1,900,000
2,000,000
2,100,000
2,200,000
2,300,000
2,400,000
2,500,000
2,600,000
20172016201520142013 20180
5%
10%
15%
20%
25%Michigan
22.9%
15.3%
% U.S. Production
% N.A. Production
20.4%
13.6%
% U.S. Production
% N.A. Production
20.1%
13.5%
% U.S. Production
% N.A. Production
19.8%
13.3%
% U.S. Production
% N.A. Production
19.2%
% U.S. Production
% N.A. Production
12.5%
16.7%
% U.S. Production
% N.A. Production
10.9%
1,849,129
2,166,650
Source: Automotive News
Source: Automotive News
Source: Automotive News
FCA US LLC
Sterling Heights
Ram Pickup 254,873
Warren
Ram Pickup 23,687
Jefferson North - Detroit
Dodge Durango 82,134
Jeep Grand Cherokee 280,946
Total: 641,640
Ford Motor Company
Dearborn
Ford F Series 373,765
Flat Rock
Ford Mustang 108,540
Lincoln Continental 18,379
Wayne
Ford C-Max 3,685
Ford Focus 86,862
Ford Ranger 2,927
Total: 594,158
General Motors Co.
Flint
Chevrolet Silverado 115,824
GMC Sierra 67,294
Hamtramck
Buick LaCrosse 14,905
Cadillac CT6 12,246
Chevrolet Impala 9,790
Chevrolet Volt 26,121
Lansing Delta
Buick Enclave 62,720
Chevrolet Traverse 167,483
Lansing Grand River
Cadillac ATS 12,593
Cadillac CTS 9,850
Chevrolet Camaro 54,464
Orion Township
Chevrolet Bolt 30,194
Chevrolet Sonic 29,847
Total: 613,331
TOTAL: 1,849,129
26 STATE OF THE REGION 2019-2020
Business ServicesI N D U S T RY S P O T L I G H T: A E R O S PA C E A N D D E F E N S E
I N D U S T RY S P O T L I G H T: A E R O S PA C E A N D D E F E N S E
F O O T P R I N T
Michigan’s commitment to the defense industry in demonstrated in the seven military locations across the state and more than 4,100 businesses that support it. In the heart of it is Macomb County, home to the Defense Corridor, which includes the Detroit Arsenal and more than 600 defense-contracting businesses. The Detroit region’s commitment and expertise in providing vehicles, equipment, and services to the nation’s armed forces is led by Selfridge Air National Guard Base and the United States Army Ground Vehicle Systems Center at the Detroit Arsenal.
100,686employees
$84,880average annual
wage
3,074establishments
$3.64billion in
defense contracts
AEROSPACE, AERONAUTICAL, AND ASTRONAUTICAL ENGINEERING PROGRAM
Joint Light Tactical Vehicle Family of Vehicles at the Detroit Arsenal and Selfridge Air National Guard BaseCredit: Oshkosh Defense
4th 18Ranked fourth for aerospace attractiveness driven by strong areas of gross domestic product, foreign direct investment, and
market size by PwC.
Home to more than 18 educational institutions with aerospace and aviation-
related degrees and curriculum, pipeline of skilled workers.
27 DETROITCHAMBER.COM
AEROSPACE, AERONAUTICAL, AND ASTRONAUTICAL ENGINEERING PROGRAM
C A S E S T U D Y
UNIVERSITY OF MICHIGAN
8thin the nation for undergraduate
program
5thin the nation for
graduate program
PHOTO:
U . S . A R M Y- G A R R I S O N D E T R O I T A R S E N A L
Located in Warren, Mich., the Detroit Arsenal hosts several defense organizations including the U.S. Army Tank-automotive and Armaments Command, U.S. Army Combat Capabilities Development Command Ground Vehicle Systems Center, Defense Logistics Agency, Army Contracting Command-Warren, Program Executive Office Ground Combat Systems, and Program Executive Office Combat Support and Combat Service Support.
Only active duty military installation in Michigan
178 acres, 67 buildings, and 200 million sq. ft. of building space
Home to the Next Generation Combat Vehicle Cross Functional
Team (NGCV CFT)
Serves 250 military and 7,500 Department of Defense civilian and
contract workers
In 2018, the Army Futures Command moved its Next Generation Combat Vehicle Cross Functional Team (NGCV CFT) to Detroit in order to capitalize on Southeast Michigan’s assets. NGCV CFT drives combat vehicle modernization by developing requirements and bringing the Army’s science, technology, and acquisition professionals together with soldiers to meet their future needs.
Located at the Detroit Arsenal, the team has leveraged the technology, automotive and mobility industries, in addition to being located with its partners in the Program Executive Office for Ground Combat Systems and the Ground Vehicle Systems Center. Being in the heart of these industries and with its partners has allowed the NGCV CFT to gain real momentum as it pursues the Army’s number two modernization priority—developing the next generation of ground combat vehicles.
The team’s portfolio currently consists of multiple next-generation vehicle projects representing more than $10 billion in investments across the FY 20 Future Year Defense Program. Working with both traditional and non-traditional industry partners is vital to these projects. This has led to an initiative called Modernization in the Motor City (MMC). Conducted monthly, MMC allows companies to present technologies applicable to NGCV efforts to a team of experts for further consideration. Learn more at @NGCVCFT on Twitter.
Modernizing in the Motor City: The Army’s New Cross Functional Team is Building America’s Next Fleet of Combat Vehicles
The Mission Enabling Technologies-Demonstrator and Robotic Combat Vehicle Surrogates on display at Camp Grayling, Mich. Credit: U.S. Army
28 STATE OF THE REGION 2019-2020
I N D U S T RY S P O T L I G H T: A E R O S PA C E A N D D E F E N S E
DEPARTMENT OF DEFENSE CONTRACTS — AMOUNT OBLIGATED FY 2014-2019
ECONOMIC IMPACT 2018
The Detroit region’s defense footprint has significantly increased over the past five fiscal years, with 360% growth in defense contracts. The number of awarded contracts has increased from $782 million in 2014 to more than $3.6 billion in 2019.
In 2018, Michigan’s defense industry had an economic impact of more than $13.1 billion, a 35% increase since 2016.
AEROSPACE AND DEFENSE JOB GROWTH AND FORECAST 2014-2023
The Detroit region is home to more than 3,000 companies working in aerospace and defense- related industry sectors. Employing more than 100,000 people combined, these companies are driving a strong technical and research-driven industry with close ties to the automotive industry’s vehicle and technology development.
Over the past five years, the region’s aerospace and defense industry has grown by more than 4%, despite a decrease in employment in 2018. The region is expected to gain another 2,500 jobs by the end of 2023. The region’s average industry earnings for aerospace and defense jobs is $98,952, slightly lower than the national average of $100,885.
20,000
50,000
80,000
110,000
2023202220212020201920182017201620152014
Source: EMSI
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
201920182017201620152014
Source: USAspending.gov
Source: Michigan Defense Center
$0
$5
$10
$15
2016
$9.72 $11.7
$13.1
2017 2018
29 DETROITCHAMBER.COM
Technology boom ended, and suppliers moved to automotive, a secure industry.
Post-recession, many suppliers returned to the automotive and worked cross-industry.
During the recession, suppliers moved away from automotive and to the defense industry.
E C O N O M I C D I V E R S I F I C AT I O N A N D M O B I L I T Y In times of economic decline, suppliers in the Detroit region have worked to diversify their business portfolio to meet the needs of various industries, allowing them to easily shift back and forth as the economy changes.
2000 2010
2008-09
Defense. Automotive. Security. Mobility.As the Detroit region has grown its defense assets over the past few decades, the automotive and mobility industry have expanded R&D of technologies that have created opportunities for synergy and innovation across industries. The region’s companies that have provided engineering and technology solutions to the country’s defense industry are positioned to help propel the signature automotive industry into the global leader in next-generation mobility. Below are a few highlights of companies that have taken advantage of these shifts.
Formed in 1999, the mobile robotics and simulation technology company Quantum Signal has adapted to changing regional industry needs. Initially working with automotive companies, the organization shifted to defense contracts in the early 2000’s in the areas of biometrics and security.
The organization has thrived as an engineering services firm providing intelligent sensing, data analysis, and simulation. Over the past two decades, as the traditional automotive industry has shifted to next-generation mobility, the organization grew its mobile robotics and simulation technology.Ford Autonomous Vehicles LLC recently acquired the organization and its technology.
Future Additive Manufacturing Aerospace (FAMAero) is an additive manufacturing company that has created a revolutionary platform for efficient innovation in the manufacturing market. Using industry-leading Electron Beam Additive Manufacturing (EBAM), acquired from Sciaky, Inc in 2018, the organization is home to the world’s largest production metal 3D printer, able to produce metal parts over 12 ft. in length.
FAMAero operates as the first private, dedicated parts bureau in North America for large-scale 3D printed metal parts, providing manufacturers new opportunities to cut time and cost on production of parts. Their parts are orbiting the earth on satellites, flying through airspace on jets, moving about earth on many different types of land vehicles, and underwater on submarines.
Since the 1950’s, Humanetics and the companies it has originated from have had a long history of developing test dummies for testing air and space craft ejection seats. Over the following decades, the organization and crash test dummy technology have grown with the increased focus of safety on roadways and in passenger vehicles.
The organization’s 100,000 sq.ft. headquarters in Farmington Hills is home to the core of the organization’s R&D talent. The sensors and software platforms develop technologies throughout the military and defense fields, including specialty fibers in fiber optic gyroscopes, unmanned aerial vehicles, and sensors in flight controls.
Saline, MIFarmington Hills, MI
Fenton, MI
40 Employees900
Employees
6 Employees
“Electrification, autonomy, cybersecurity, crash avoidance, occupant safety – all issues and challenges attracting billions of dollars of investment as well as the best and brightest minds.”
– Christopher J. O’Connor, President and CEO, Humanetics Innovative Solutions Inc.
30 STATE OF THE REGION 2019-2020
I N D U S T RY S P O T L I G H T: H E A LT H C A R E
I N D U S T RY S P O T L I G H T: H E A LT H C A R E
5thlargest metro for health care professionals
10,423health care-related
establishments
$54,228average
annual wage (2018)
UNIVERSITY OFMICHIGAN
#3 in National Institute of Health funding
$552 million in funding through 1,230 awards
Health care is the Detroit region’s largest industry, employing nearly 340,000 people. In 2019, University of Michigan Hospital was ranked 11th nationally by U.S. News & World Report, while 30 additional hospitals were recognized as “nationally ranked” or “high performing.” With cutting-edge R&D facilities, state-of-the art hospitals, and unparalleled talent and manufacturing know-how, the Detroit region positions companies to develop new, sought-after products and solutions to meet medical challenges around the world.
HEALTH CARE JOB GROWTH AND FORECAST 2014-2023
For nearly two decades, the Detroit region’s health care industry has consistently shown year-over-year job growth. In 2018, more than 335,000 individuals were employed in the industry.
Between 2014 and 2018, the region added more than 14,000 positions and is expected to add another 22,500 jobs through 2023. The top three occupations in the health care industry in the region include registered nurses, nursing assistants, and home health aides – totaling nearly 92,000 employed.
290,000
300,000
310,000
320,000
330,000
340,000
350,000
360,000
370,000
2023202220212020201920182017201620152014
F O O T P R I N T
Source: EMSI
Dignitaries gather for the announcement of Beaumont Health’s new mental health clinic. Credit: Beaumont Health
OVERVIEW
31 DETROITCHAMBER.COM
FASTEST-GROWING OCCUPATIONS BY PERCENT 2014-2023
Between 2014 and 2018, the Detroit region’s fastest-growing occupation at 66.5% was hearing aide specialist. In the next five years, it is expected that occupational therapy aides will take the lead for the fastest growth with 26.4%. In line with national wages, the median hourly wage for health care practitioners and technicians is at $32.85 versus $32.40, and health care support occupations are at $14.10 versus $14.31 respectively.
2014-2018 2018-2023
Hearing Aide Specialists 66.5% Occupational Therapy Aides 26.4%
Occupational Health and Safety Specialists 48.2% Occupational Therapy Assistants 17.4%
Ophthalmic Medical Technicians 44.5% Physical Therapists Assistants 15.1%
Nurse Practitioners 42.2% Nurse Practitioners 14.8%
Occupational Therapy Assistants 37.9% Physical Therapist Aides 14.9%
C A S E S T U D Y
Source: EMSI
HFHS neurosurgeon Dr. Ian Lee during brain tumor surgery. Credit: Henry Ford Health System
In 2019, the Henry Ford Cancer Institute was the first in the world to enroll a patient in the GBM AGILE Trial, a clinical trial targeted at the treatment of glioblastoma, the most aggressive form of brain cancer. This clinical trial is a departure from the traditional, one-size-fits-all approach to clinical trials – a major step forward for precision medicine.
Traditional clinical trials take three to seven years to produce results, cannot be modified once started, and only study one treatment against the standard of care. GBM AGILE is uniquely designed as a long-standing platform with the ability to test multiple therapies concurrently against the standard of care and to be continuously updated with the latest information.
“GBM AGILE is intended to allow rapid discovery of better treatments for patients with glioblastoma,” said Dr. Tom Mikkelsen, medical director of the Henry Ford Precision Medicine Program and Clinical Trials Office. “The era of data-driven innovation has arrived, and it’s being applied to the most difficult problems in cancer therapy.”
This advancement was made possible by an international collaboration of experts in caring for patients with glioblastoma and the design of clinical trials.
Henry Ford Health System Helps Lead Worldwide Effort To Battle Glioblastoma
detroitchamber.com