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Data Center · 2019-12-22 · 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

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Page 1: Data Center · 2019-12-22 · 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
Page 2: Data Center · 2019-12-22 · 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

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.

Page 3: Data Center · 2019-12-22 · 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

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

Page 4: Data Center · 2019-12-22 · 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

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

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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

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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

Page 7: Data Center · 2019-12-22 · 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

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

Page 8: Data Center · 2019-12-22 · 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

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

Page 9: Data Center · 2019-12-22 · 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

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

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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

Page 11: Data Center · 2019-12-22 · 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

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

Page 12: Data Center · 2019-12-22 · 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

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

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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%

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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

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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.

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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

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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

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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.

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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

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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

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