DETROIT’S
MICHIGAN AVE.
LIV ER NO IS E AV .
CONR
AIL
Southwest Employment District
XT CS RA NS PO TIO RTA
K OL AIL RF R O N RN HE T U SO
CAPITALIZING ON GLOBAL TRADE
N T. TS R O
F W.
DETROIT RIVER
ROU
GE
RIV
ER
Presented by:
1
Southwest Employment District
Detroit & Southeast Region A great place to live, work and play in a Great Lakes state. Detroit, and the seven-county region around it, is known around the world for its rich history of global leadership in the automotive industry. Many of the same factors that built that reputation in the early 20th Century are helping to reaffirm Detroit and southeast Michigan’s resurgence in the early 21st Century:
·· Transportation infrastructure — highways, railroads, a waterway and airports — that can deliver goods to the majority of the U.S. population within four hours ·· High capacity international connections via highway, rail, and air ·· A huge pool of talent with high skills in engineering, information technology, manufacturing and creative industries ·· Suppliers in the automotive sector that now also serve the defense and aerospace sectors ·· Food and agriculture companies ·· Globally recognized research universities and R&D centers for international companies ·· A diverse base of companies, from very small startups to Fortune 500 global corporations that supply consumers and each other.
Complementing its industrial assets, the Detroit metropolitan area is well known for its contributions to culture, especially in music, art and architecture, and it is home to globally recognized institutions of education and culture. These, along with the tremendous attraction of the Great Lakes and other natural resources; popular entertainment; and major league, college and amateur sports make the region a great place to live and play as well as grow a business. Now is an attractive time to invest or grow in Detroit, as government, private companies, global corporations, major educational and cultural institutions, philanthropic organizations and community groups are collaborating in unprecedented ways to apply innovative strategies to revitalize the city. These collaborations are creating substantial opportunities for investors, companies and individuals to contribute to the growing economic, cultural, recreational and neighborhood development momentum right now. This publication describes the Southwest Employment District — one of seven core employment districts identified by Detroit Future City. These employment districts contain a high level of activity and have the potential to receive significant levels of investment and serve as the engine for the city’s economic growth.
Southeast Michigan Workforce: Employees per Major Sector 247,225 Health Care & Social Assistance Top 5 Manufacturing Divisions by Employment 40,041 Other Types of MFG
28,368 Machinery MFG
30,596 Fabrication Metal Product MFG
97,905 Transportation Equipment MFG
213,677: Manufacturing (MFG) Total
10,101: Plastics & Rubber Products MFG 6,666: Primary Metal MFG
182,431 Retail Trade 173,067 Professional, Scientific, & Technical Services 159,174 Government 140,561 Accommodation & Food Service 126,612 Administrative, Support, Waste Management & Remediation Service 74,368 Wholesale Trade 61,534 Finance & Insurance 52,548 Other Services (except Public Administration) 51,052 Transportation & Warehousing
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Source: QCEW Employees - EMSI 2014.2 Class of Workers
ST. CLAIR COUNTY
UPPER PENINSULA
OAKLAND COUNTY
·· International transportation connections
NORTHERN MICHIGAN MIDMICHIGAN WESTERN MICHIGAN
WAYNE COUNTY
DETROIT
·· Global automotive R&D and design ·· Defense Corridor
MONROE COUNTY
W
VAN DYKE
SOUTHEAST MICHIGAN
OO AR DW
MACOMB COUNTY
TELEGRAPH
D
OAKLAND COUNTY
·· 1,250 foreign firms from 40 countries
ATI OT
WASHTENAW COUNTY
GR
LIVINGSTON COUNTY
SOUTHEAST MICHIGAN TRICOUNTY REGION:
MACOMB COUNTY
GR
AN
DR
McNICHOLS IVE
8 MILE
MT. ELLIOTT
R
Coleman A. Young International Airport
DEQUINDRE/ EASTERN MARKET
DOWNTOWN
MIDTOWN
WAYNE COUNTY
CORKTOWN E
JE
E FF
RS
ON
FORD
DETROIT -WINDSOR TUNNEL MICHIGAN CENTRAL RAILWAY TUNNEL AMBASSADOR BRIDGE
SOUTHWEST IGAN
NEW INTERNATIONAL TRADE CROSSING
KEY EMPLOYMENT DISTRICTS Southwest Primary Employment Districts Secondary Employment Districts
W JEF
Detroit Metropolitan Wayne County Airport
FORT
F E RS O
N
MICH
REGIONAL INFRASTRUCTURE ASSETS Airports Rails Highways Arterials Waterways County Boundaries
INFRASTRUCTURE ASSETS INTERNATIONAL CROSSINGS
New International Trade Crossing (NITC), Ambassador Bridge, Michigan Central Rail Tunnel
RAILWAYS
Detroit North Rail Yard & Freight Rail, Michigan Central Railway
INTERSTATES/ MAIN TRUCK ROUTES
1-94, I-96, I-75, M-10, M-39, Detroit-Windsor Tunnel
0
ARTERIALS
Woodward, Telegraph, Gratiot, Van Dyke, Grand River, Ford, Michigan, Fort, Jefferson
Source: Detroit Future City
1
2
4 MILES
3
Southwest Employment District
Capitalizing on Global Trade The Southwest Employment District wraps industrial production and global trade around lively and diverse residential and retail neighborhoods with a distinct Hispanic flair. The flanks of the 2700-acre district are defined by major railroad lines, I-75 and the Detroit River. Within the district, existing connections and planned rail tunnel improvements and a new highway bridge lead directly to the United States’ primary trading partner, Canada. The value of exports through the district is close to $50 billion annually, ranking it fourth in the country. Among the other anchor assets of the Southwest District are the Detroit Intermodal Freight Terminal, Port of Detroit docks, a ContainerPort
Group container port and the recently expanded Marathon Oil Refinery. In all, 850 businesses employ just over 9,000 people in the district. The spine that connects the ethnic neighborhoods surrounded by the district is West Vernor Highway. The area has a uniquely Detroit flavor and has been remarkably stable, or growing through recession and recovery. The Southwest District reminds visitors of the many ways Detroit can capitalize on its global connections — because so many of them are right here. Detroit Economic Growth Corporation (DEGC) representatives have information on available sites and the expertise to facilitate applications for appropriate incentives to companies that invest in the district.
SOUTHWEST DISTRICT VITALS
SOUTHWEST ECONOMIC ANCHORS5
LAND AND INFRASTRUCTURE
ANCHOR
SIZE (acres)
2,694
Johnson Controls - Automotive Experience
760
VACANCY (acres)1
405
Alco Express Co
400
UNDERUTILIZED (acres)
588
Songer Steel Svc
400
YRC Inc.
393
Bridgewater Interiors LLC
360
Marathon Detroit Refinery
283
The Ideal Group Inc.
275
Renaissance Global Logistics (James Group Intl)
258
Vitec
250
MPS Group Inc
201
VACANT & PUBLICLY OWNED2
8.4%
INFRASTRUCTURE ASSETS
I-75, NS Container Port, Ambassador Bridge, Port of Detroit, Fort Street, DIFT Intermodal Hub
PLANNED INFRASTRUCTURE INVESTMENTS
Michigan Central Railway Tunnel expansion, DIFT expansion, New International Trade Crossing
EMPLOYEES
BUSINESS AND ECONOMY TOTAL NUMBER OF BUSINESSES3
850
CURRENT EMPLOYEES4
9,100
4
Table Sources: 1) Motor City Mapping 2014; 2) Ibid.; 3) NETS 2010 Estimates; 4) Private sector employment from QWI, non-private employment from LEHD—On the Map. Private sector employment was apportioned to districts using NETS data for 2010; 5) Crain’s Detroit Business
Southwest Employment District
0
0.25
0.5
1 MILE
The Ideal Group
MPS Group
Vitec
Boulevard & Trumbull Towing Inc.
PROPOSED TIER 1 ROUTE MICHIGAN AVE AD RO G RIN IS ED NO OS E R OP LIV PR
Edw. C. Levy Co
DETROIT INTERMODAL FREIGHT TERMINAL
DEARBORN
AJM Packaging Corp
FORD ROUGE COMPLEX
AMBASSADOR BRIDGE
Bridgewater Interiors LLC
PORT OF DETROIT
YRC Inc
ER IV
TE
TR
OU 1R R IE D T ST SE ORT O OP W F PR
PROPOSED INTERNATIONAL TRADE CROSSING
TR OI
Marathon Detroit Refinery
Johnson Controls
DE
Alco Express Co
U.S. CUSTOMS COMPLEX
Renaissance Global Logistics
CANADA
New International Trade Crossing
ECONOMIC ASSETS & OPPORTUNITIES
NETWORK INFRASTRUCTURE & OPPORTUNITIES
Core Employment District
Proposed Transit Routes
District Anchors
Rail Lines
Infrastructure Anchor/Asset
Proposed Freeway Carbon Forests
Potential Business Investment Opportunities
Proposed Green Industrial Buffers
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Southwest Employment District
A Place to Grow...
Bridgewater Interiors Prospers by River & Road
James Group International is Completely Connected
Bridgewater Interiors is a Tier 1 and 2 automotive industry supplier that assembles, sequences and delivers vehicle interiors systems, through a justin-time process to various OEM customers. It relies on the transportation connections and reliable employee base it finds in the Detroit Southwest Employment District.
From I-75 and Clark Ave., it is less than two blocks to Renaissance Global Logistics (RGL), which serves as the headquarters for James Group International. A stream of trucks exits there to deliver parts from Ford Motor Company suppliers around the region, and RGL repackages and exports them to Ford assembly plants around the world. A railroad spur also reaches the 375,000 sq. ft. facility. Looking up to see the Ambassador Bridge to Canada from the loading docks, it’s obvious that this is a perfect location for this business.
Vice President Ronald Hall, Jr. says, “The Southwest Detroit community is among the strongest in the city. Being located within a solid transportation infrastructure is crucial to our success.” Bridgewater’s headquarters and one of its three manufacturing facilities are located in the district. Detroit Economic Growth Corporation (DEGC) recently supported Bridgewater Interiors as it applied for an extension of its Renaissance Zone incentives. Hall, a fourth generation Detroiter himself, describes how Bridgewater Interiors embodies the ‘heart’ of Detroit, saying, “There’s a real spirit here. People naturally want to belong to something positive, and our team members take a lot of pride in their work here and contributing to the Detroit community.”
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Lorron James, who directs external affairs and serves on the advisory board for James Group International, says there’s actually more to it than infrastructure. “First and foremost we believe in supporting the people who live here and are dedicated to this area.” Building on success, James Group International is hoping to expand its enterprises by developing property it owns within the Port of Detroit that includes direct access to the Detroit River and a nearby rail spur. “We have 43 years here, and we are always looking for opportunities,” says James.
“The Southwest Detroit community is among the strongest in the city. Being located among a solid transportation infrastructure is crucial to our success.”
See For Yourself!
–Ronald Hall, Jr., Vice President, Bridgewater Interiors
Detroit’s Real Estate for Sale or Lease1 DETROIT
INDUSTRY
RETAIL
3.4 Average rental
$
OFFICE
10.1 Average rental rate
$
PER SQ FT
rate for industrial building space
17.6
$
PER SQ FT
PER SQ FT
for retail building space
Average rental rate for office building space
RETAIL
OFFICE
Southwest’s Estate for Sale or Lease2 SOUTHWEST
AVAILABLE LAND
130
ACRES
Up to 130 acres of land available for sale or lease
INDUSTRY
3.1M
SQ FT
Up to 3,100,000 sq ft of industrial building space available
90K
130K
SQ FT
Up to 90,000 sq ft of retail building space available
SQ FT
Up to 130,000 sq ft of office building space available
Southwest’s Business Composition3 SOUTHWEST’S FIRM TYPES 15% 13% 12% 10% 8% 8% 34%
Wholesale Trade (WST) Retail Trade (RT) Transportation & Warehousing (T&W) Manufacturing Construction Professional, Scientific, & Technical Services Other Types of Southwest Firms
75%
15% WST
34%
4%
Merchant Wholesalers, Durable Goods Merchant Wholesalers, Nondurable Goods Wholesale Electronic Markets & Agents & Brokers RETAIL TRADE (RT) FIRMS
25% 23% 18% 13% 21%
Motor Vehicle & Parts Dealer Food & Beverage Stores Gasoline Stations Miscellaneous Store Retailers Other Types of Retail Trade Firms
25%
12% T&W
8% 8%
23%
13% RT
Other Firm Types
WHOLESALE TRADE (V ) FIRMS 75% 21%
21% 4%
10%
18% 13% 21% 55%
35% 10%
TRANSPORTATION & WAREHOUSING (T&W) FIRMS 55% 35% 10%
Truck Transportation Support Activities for Transportation Other Types of Transportation & Warehousing Firms Sources: 1) CoStar 2014; 2) Ibid.; 3) Reference USA 2014
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SOUTHWEST EMPLOYMENT DISTRICT Capitalizing on Global Trade This publication was produced as a collaboration of:
Seven Primary Employment Districts are identified within the Detroit Future City Strategic Framework because they represent the best opportunity for large-scale economic growth, and they define a place-based strategy for growth and investment based upon economic cluster analysis. Located across the city, these districts represent a diverse cross-section of Detroit’s economy. These core employment districts are defined by the presence of significant economic anchors to build upon, including major legacy businesses or institutions, diverse economic activity, excellent infrastructure access, a recognized niche or brand that can help to attract additional businesses, and relatively vibrant existing employment activity. For additional information on Primary Employment Districts, please refer to pp. 58-73, 76-77 in the Strategic Framework. In addition to the Primary Employment Districts, a series of peripheral nodes of industrial activity comprise an equally important, yet smaller and less intensive set of Secondary Employment Districts. Each of these districts offers potential development opportunities to further strengthen the city’s auto, metals, transportation, distribution and logistics clusters. For additional information on Secondary Employment Districts, please refer to pp. 74-75 in the Strategic Framework. Detroit Economic Growth Corporation 500 Griswold St. Suite 2200 Detroit, MI 48226 www.degc.org (313) 963-2940 info@degc.org @degcallbusiness
Detroit Future City 2990 W. Grand Blvd. Suite 2 Detroit, MI 48202 www.detroitfuturecity.com (313) 259-4407 info@detroitfuturecity.com
DEGC is a non-profit organization that serves as the lead implementing agency for business retention, attraction and economic development initiatives in the city of Detroit. DEGC is led by a 60-member board comprised of business, civic, labor and community leaders. Its 45 professionals provide staff services for key public authorities that offer tax credits and other forms of financing for projects that bring new jobs or economic activity to the city. Among them: the Downtown Development Authority (DDA), Detroit Brownfield Redevelopment Authority (DBRA), and the Economic Development Corporation (EDC). DEGC also provides planning, project management and other services under contract to the City of Detroit.
The Detroit Future City (DFC) Implementation Office opened in 2013 to be the steward of the DFC Strategic Framework, a shared vision for Detroit’s future. The office strategically coordinates actions and resources, to maximize their impact and catalyze long-term capacity within all contributing stakeholders. The DFC Implementation Office is supported by the Kresge Foundation, Detroit Economic Growth Corporation, W.K. Kellogg Foundation, John S. and James L. Knight Foundation and the City of Detroit.