2022
2
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Thank you for your interest in the Detroit Regional Chamber’s eighth annual State of the Region report; and a deep thanks to our friends at Citizens for their partnership in bringing this valuable data to the region. This year’s report is different than previous iterations because of the ongoing impact of the COVID-19 pandemic as well our increased focus on the racial disparities in our region and how these detrimental outcomes impact our overall economic health – and all of us individually. Additionally, this report seeks to highlight the apparent disconnect between how individuals feel about their own economic situation versus how they view the state of the overall economy. Despite exceptionally strong data indicating individuals feel very secure in their jobs and continue to spend strongly, as well as strong GDP and unemployment data – individuals have a notably sour mood toward the economy driven by concerns about inflation. In last year’s report, the Chamber showed that Michigan’s economic recovery from COVID-19 was faster and more robust than the state usually sees during recessionary periods because sectors like automotive and manufacturing displayed remarkable resilience and new business starts soared. In 2021, Michigan continued its strong economic recovery with a 12.7% growth in real GDP during the second quarter – Bloomberg ranking Michigan’s economic improvement the best among the 37 states with a population greater than 2 million. “Michigan is number one based on equally weighted measures of employment, personal income, home prices, mortgage delinquency, state tax revenue, and the stock market performance of its publicly traded companies.” Michigan’s economy still faces significant challenges that pose short-term and long-term obstacles to our region’s economic prosperity. Despite a substantial increase in job postings in the region throughout 2021, many of these positions continue to go unfilled. This is a national trend, but Michigan’s labor force participation lags significantly behind other states. More Michigan women than men – 136,000 to be exact – left the labor force in 2020 as well as a significant number of older workers. Labor shortages hindered the economy before 2020, but COVID-19 exacerbated this trend. Challenges with labor, supply chain issues, a spike in demand for goods, and a large influx of government spending are just some of the multitude of reasons Michigan and the United States have seen the highest inflation levels in 40 years. Statewide polling by the Chamber and Glengariff Group showed that 90% of voters are concerned about inflation and 63% of voters feel the economy is on the wrong track. However, people’s pessimism contrasts with consumer behavior and other promising signs of economic growth. As businesses, workers, and the broader economy transition to a post-COVID-19 pandemic reality, it is critical that our society takes the necessary steps to ensure that large-scale investments encourage equitable growth that promotes longterm prosperity for all Michiganders.
Sandy K. Baruah President and Chief Executive Officer Detroit Regional Chamber
3
Our journey to recovery from the pandemic has had its twists and turns, but I believe that we are headed in the right direction and that together we can face any challenges that remain in front of us. We are proud to support the Detroit Regional Chamber, one of the organizations leading the region’s recovery, and to be part of the State of the Region, which provides critical data to inform our recovery efforts. With the disruption wrought by the pandemic, it remains crucial that the private, public, and nonprofit sectors work together to ensure that workers, small business owners, and families have the skills and support they need. Our businesses can only thrive when our communities thrive. To that end we are partnering with The Greening of Detroit, Grow Detroit’s Young Talent, and Focus: HOPE to prepare adults and youth for sustainable employment. We work with the Great Lakes Women’s Business Council to strengthen and grow women and minority-owned businesses, and we support the efforts of United Way and others to address digital inclusion, which is essential for economic inclusion, as the pandemic widened the digital divide for many families. Through our long-time partnership with Gleaners Community Food Bank to present the Hunger Free Summer campaign, we assist children facing food insecurity during the summer months when they are out of school. Recovery from the pandemic is far from over, but we are on this journey together. We will continue to serve as trusted advisors to our customers and community partners as we look to an even better future of opportunity and economic prosperity for the city of Detroit and the region.
Jim Malz Midwest Regional Executive Citizens
4
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TA B L E
O F
CONTENTS
5
6
8
TH E IMPORTAN CE OF A N A LYZ IN G DATA T H ROU G H AN EQU IT Y L EN S
D EF IN IN G T H E REG ION
NEW Section
P O S IT I O N I N G T H E REGION FOR E C O N O MI C P RO S P E R IT Y
10 E C O N O MIC I N D I C ATO RS
17 COMMU N IT Y IN D ICATORS
23
25
E C O N O MI C P E RC E PT ION S A N D OUT L OOK
WH AT BU SIN ESS L EAD ERS ARE T H IN KIN G
28
31
I N D U ST RY I N D I C ATO RS
IN D U ST RY SPOT L IG HT: AUTOMOT IVE AN D MOBIL IT Y
NEW Sections
34
37
I N D U ST RY S P OT L IG HT: A E RO S PAC E A N D DEF EN SE
IN D U ST RY SPOT L IG HT: H EALT H CARE
5
P O S I T I O N I N G
T H E
R E G I O N
F O R
ECONOMIC PROSPERITY The Detroit Regional Chamber leads an economic prosperity strategy to ensure the 11-county Detroit region is educated, employed, and equitable. The Chamber’s portfolio of initiatives aims to create an economic future where all businesses and individuals can grow and thrive.
DETROIT
MICHIGAN 2030 P L AN
PROMISE
6
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THE IMPORTANCE OF ANALYZING DATA
THROUGH AN EQUITY LENS
Throughout the report, readers will see this marker to indicate prominent racial justice and economic equity-related findings.
The Chamber is a premier, trusted source of business data for the region, and its Research and Data Team is leveraging its resources and expertise to stay at the forefront of economic and social equity data as a key part of its Racial Justice and Economic Equity initiative. This data enhances and offers new, valuable insights to Chamber Signature Reports and Publications, including this edition of the State of the Region. This equity lens is critical to establishing comprehensive understanding of and context around the economic recovery – and remaining disparities – that the latest data reveals. Such insight provides the opportunity to identify areas of improvement in which the regional and statewide business community can work to develop solutions for a more equitable economy.
An extension of this work is the Chamber’s active role in bringing the Gallup Center on Black Voices to Detroit. A new hyper-local survey will produce unique data that shows the lived experiences of Black Americans in the region. The Chamber is a member of, and partnered with, the Racial Equity Blueprint Group in this endeavor.
View more racial justice and economic equity-focused data and resources at
detro i tch amb er . com / e q u it y
7
MORE LEADING REGIONAL DATA DETROITDATACENTER.ORG As one of the region’s leading sources of business-focused research and data, the Chamber’s website also includes interactive resources and links to additional reports and data tools for public use. Further, the Detroit Data Center website provides public access to demographic measures, including metrics by race and ethnicity, to more fully understand the region and its residents. Learn more at detroitdatacenter.org.
POLLS, SURVEYS, AND PUBLICATIONS To capture the latest sentiments of the regional and statewide business community and better understand its members’ needs, the Chamber regularly conducts polls and surveys on top issues. Since 2020, the Chamber has partnered with Glengariff Group Inc. to conduct recurring polls of registered Michigan voters on timely economic issues like inflation, COVID-19’s impact on business, and political sentiment, among others. Results include data by demographics, including race, which further informs the Chamber’s work toward achieving economic equity in the region.
2021 EDITION
Additional past studies and surveys have been conducted with partners like Business Leaders for Michigan and Dykema. The Chamber also produces a host of annual Signature Reports and Publications that are go-to resources for the business community. Reports like the Michigan is Automobility Report, State of Education, and State of the Region have become integral sources of business and industry-specific data for decision-makers across the state.
MICHIGAN VOTER POLL Throughout the report, readers will see this marker to indicate findings from a statewide poll of 600 registered voters in Michigan
PERSPECTIVE
commissioned by the Chamber with polling partner Glengariff Group Inc. The poll was conducted between Nov. 29 and Dec. 3, 2021. These polls and surveys provide employers of all sizes and types a clearer picture of employees’ mindsets while offering decision-makers key insight into how residents and businesses feel or are reacting to key events and trends.
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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 376,000 businesses including 10 Fortune 500 companies, 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
DETROIT REGION
1.9 %
population growth since 2010
compete in the global economy.
P O P U L AT I O N PERCENT CHANGE
THE DETROIT REGION
2 010 - 2 0 2 0 + 5 % t o + 12 %
The 2020 Census indicated that the 11-county Detroit region’s population increased to 5,492,836 – a 1.9% increase since the 2010 Census. Five of the 11
0 to +5%
counties saw a decline in population. The counties with the largest population growth include Washtenaw, Livingston, and Oakland. The counties with the
0 to -6%
largest decline include Genesee, Shiawassee, and St. Clair. The city of Detroit -6% to -20%
remained Michigan’s most populous city but showed a continued decline in population of 10.5% over the decade, losing almost 75,000 people.
STATE OF MICHIGAN Overall Michigan’s population increased to 10,077,331 in 2020, ranked as the 10th most populous state (8th in 2010). The state’s population growth was behind the U.S. growth rate of 7.4%. As a result, the state will lose a seat in the U.S. House, from 14 to 13 representatives. Two factors will continue to influence Michigan’s population for years to come: the state’s aging population and changes in migration. Overall, 50 out of 83 counties experienced a decline in population.
MICHIGAN
2%
population growth since 2010 SOURCE: U.S. CENSUS BUREAU NOTE: 2020 AND 2010 DEC REDISTRICTING DATA (PL 94-171)
9
C HA N G E IN P O P U L AT IO N 2 010 - 2 0 2 0 PO PU L AT IO N 2 010
POPULATI ON 2020
POPULATI ON CHANGE
PERCENTAGE CHANGE
HOU S I N G U N IT S 2020
5 ,3 8 9 ,3 9 2
5, 492, 836
103, 444
1. 9 %
2,380,878
4 2 5 ,7 9 0
406,211
-19,579
-4.6%
183,087
Lap e e r
8 8 ,3 19
88,619
30 0
0.3%
36,725
Le n awee
9 9 ,8 9 2
99,423
-469
-0.5%
43,577
L iv i n g s t o n
18 0 ,9 6 7
193,866
12,899
7.1%
78,441
Ma c o mb
8 4 0 ,9 7 8
881,217
40,239
4.8%
369,404
Mo n r o e
15 2 ,0 2 1
154,809
2,788
1.8%
65,845
Oak l a n d
1 ,2 0 2 ,3 6 2
1,274,395
72,033
6.0%
554,403
S hi awa s s e e
7 0 ,6 4 8
68,094
-2,554
-3.6%
78,441
Wa s h t e n aw
3 4 4 ,7 9 1
372,258
27,467
8.0%
156,882
1 ,8 2 0 ,5 8 4
1,793,561
-27,023
-1.5%
790,191
7 1 3 ,7 7 7
639, 111
-74, 666
- 10 . 5 %
309,913
9 ,8 8 3 ,6 4 0
10, 077, 331
193, 691
2.0%
4 , 5 7 0 , 17 3
Detro it Re g io n Gen e s e e
Way n e
C i ty o f De tro it Mi chiga n SOURCE: U.S. CENSUS BUREAU, QUICKFACTS
P E R C E N TA G E C H A N G E I N R A C E A N D E T H N I C I T Y
CHANGE IN RACE AND ETHNICITY
2 010 - 2 0 2 0
For the 2020 Census, the U.S. Census Bureau changed phrasing and allowed more detailed reporting of race and ethnicity. Thus, the 2010 and 2020 Census represent both changes in demographics of the population as well as changes in how people were recorded. The fastest growing demographic in the Detroit region is Asian residents, which grew by 45%, followed by residents who identify (ethnically) as Hispanic or Latino (31%). The number of residents identifying as Black or African American (-2.6%) and white (-4.1%) all decreased. The Chamber shares the concerns of many that COVID-19 and changes to the census data collection efforts resulted in the under-counting of Detroiters.
Black or African American alone
Hispanic or Latino
Asian alone 50%
White alone
45% 41%
40% 30%
36% 31%
29%
20% 9%
10% 0
5% -2%
-4%
-3%
-4%
-10% -20%
-16%
Michigan
Detroit Region
City of Detroit
NOTE: 2020 AND 2010 DEC REDISTRICTING DATA (PL 94-171). RACIAL GROUPS ARE REPORTED AS NON-HISPANIC SOURCE: U.S. CENSUS BUREAU
detroitchamber.com/sor ECONOMIC INDICATORS
ECONOMIC INDICATORS
14
Percent Change from Previous Period
10
in 2021 over previous year
8 5.7
6 4
2.7
0
2.3
1.7
2
2.9
In a powerful rebound from 2020, real GDP grew 5.7% in 2021, the fastest growth in decades. In the second half of 2021, companies worked to address consumer demand and increase inventories, driving GDP growth.
2.3 2020
2015
2016
2017
2018
2019
2021
-2 -3.4
-4 -6
in national and Michigan real GDP in 2021
REAL GDP UNITED STATES
5.7 %
12
STRONG RECOVERY
SOURCE: BUREAU OF ECONOMIC ANALYSIS
REAL GDP MICHIGAN
REAL GDP DETROIT MSA
Michigan ranked 14th in real GDP, totaling $445 billion, in 2020 despite dropping 4.6% annually. Strong quarterly growth throughout 2021 was led by a 12.7% increase in the second quarter, largely driven by significant growth in accommodation and food services (107.8%).
The Detroit region’s 2020 real GDP decreased to $220 billion, ranking the region 16th in the U.S. The decrease of 5.8% over 2019 was driven by manufacturing (-7.2%), professional and business services (-6.4%), and entertainment, accommodation, and food service (-33.2%).
14
14
12.7
12
12.7%
10 8 6 4 2 0
2.2
2015
1.9
2016
2.6
2.2 1.2 2017
-0.1 2018
2019
2021 Q1
-6
-4.6 SOURCE: BUREAU OF ECONOMIC ANALYSIS
-0.2
2020
-2 -4
5.8%
10
in Q2 of 2021 over the previous quarter, double that of the nation
2021 Q2
2021 Q3
Percent Change from Previous Period
12 Percent Change from Previous Period
10
8
in 2020 over previous year, strong rebound expected in 2021 levels
6 4 2 0
1.5
1.8
2015
2016
2.0 0.8 2019 2017
2018
2020
-0.3
-2 -4 -6
SOURCE: BUREAU OF ECONOMIC ANALYSIS
-5.8
11
J O B S BY I N D U S T RY
JOBS BY INDUSTRY
Detroit Region, 2021
Health Care, Government, Manufacturing Top Three Industries in the
4.2%
98,808
4.3%
10 0,832
4.4%
103,117
Transport ation and Warehousing
14.0%
Finance and Insurance
Detroit Region Health care and social assistance account for 14.3% of the region’s employment as its top industry.
Other Ser vices (except Public Administration)
Health Care and Social Assist ance
331,696 110,123
4.7% Construction
Over 1.1 million people are employed across the top four industries (health care, government, manufacturing, and retail trade).
13.1%
Administrative and Support and Waste Management and Remediation Ser vices
258,056 10.9%
Total job numbers decreased 9.2% in 2021 compared to prior to the pandemic,
Manufacturing
154,863
6.5%
from 2.6 million in 2019 to 2.36 million.
Government
309,799
137,552
5.8%
233,621
Accommodation and Food Ser vices
9.9% Ret ail Trade
229,480
298,317
12.6%
9.7% Professional, Scientific, and Technical Ser vices
Other
SOURCE: EMSI
SOURCE: EMSI
P R I VAT E S E C TO R J O B S
PRIVATE SECTOR JOBS Detroit Region Down Nearly 56,000 Private Sector Jobs Since Early 2020
Detroit Region
2,50 0
Despite Gains Through 2021 The Detroit region reached just under 2.1 million private sector jobs by December
2,113.1
2021, remaining 56,100 jobs below early 2020 levels. Since January 2021, private
March 2020
Dec. 2021
2,075.3
sector jobs steadily increased 7.3%, by 141,700 jobs. The region remains down 2.6% in private sector jobs since February 2020.
2,0 0 0 1,933.6
DETROIT REGION
2.6
April 2020
%
in private sector jobs since Februar y 2020
Jan. 2021
1,541.7 1,50 0
Jan.
Feb.
March
April
May
June
July
Aug .
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March
April
May
June
July
Aug .
Sept.
Oct.
Nov.
Dec.
2020
2020
2020
2020
2020
2020
2020
2020
2020
2020
2020
2020
2021
2021
2021
2021
2021
2021
2021
2021
2021
2021
2021
2021
SOURCE: BUREAU OF LABOR STATISTICS; NOTE: NOT SEASONALLY ADJUSTED
12
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FORTUNE 500 AND LARGEST PRIVATE COMPANIES The Detroit region is home to 10 of Michigan’s 17 Fortune 500 companies with headquarters in the state. Penske Corp. and Ilitch Holdings Inc. lead as the Detroit region’s largest private companies with combined revenue of over $34.1 billion. Stellantis N.V. with its North American Headquarters in Auburn Hills, employs more than 37,761 people in Southeast Michigan, and earned $106.5 billion in revenue in 2020.
2 0 2 1 F O RT U N E 5 0 0 CO M PA N I E S RANK
Among 37 states with a population greater than 2 million,
Michigan is No. 1 based on equally weighted measures of employment, personal income, home prices, mortgage delinquency, state tax revenue, and the stock market performance of its publicly traded companies, according to data compiled by Bloomberg.
HQ CITY
2020 R E V E N U E ( $M )
21
FORD MOTOR COMPANY
Dea rborn
$127, 144
22
GENERAL MOTOR S CO.
D e t roit
$122, 485
B l o o m fi e l d Hills
$20, 443
143
P ENSKE AUTOMOTIVE GR OUP
179
LEAR CORP.
S o u t h field
$17, 045
19 4
R OCKET COMPANIES
D e tr o it
$15, 980
250
DTE ENERGY
D e tr o it
$12, 117
287
ALLY FINANCIAL
D e t roit
$10, 780
295
B ORGWAR NER
Au b u r n Hills
$10, 165
392
AUTOLIV MASCO
Au b u r n Hills
$7, 447
L i vo n ia
$7, 289
398
SOURCE: FORTUNE MAGAZINE, 2021
2 0 2 0 L A RG E ST P R I VAT E C O M PA N I E S RANK
2 019 R E V E N U E ( $ M)
1
PE N S K E C O RP.
2
ILITCH HOLDINGS INC.
$4, 10 0
3
PL A S T I PA K H O L D I N G S I N C . PI S TO N G RO U P
$2, 90 0
4 5
M O RO U N FA M I LY H O L D I N G S
$2, 746
6
H . W. K AU F M A N G RO U P I N C . /BU RN S & W I L C OX LT D.
$2, 450
7
T H E S U BU RBA N C O L L E C T I O N
$2, 421
8
BA RTO N M A L OW H O L D I N G S L L C
$2, 336
9
V I C TO RY AU TO M OT I V E G RO U P I N C . WA L BRI D G E
$2, 094
10
$30, 0 0 0
$2, 876
$1, 912 SOURCE: CRAIN’S DETROIT BUSINESS, 2022
13
JOB POSTINGS
JOB POSTINGS
Detroit Region
Detroit Region Sees 41% Increase in Job Postings Since January 2021
250,0 0 0
In the Detroit region, job postings increased 41% over the course of 2021. Top companies with job postings in the region in 2021 include Henry Ford Health System
Dec. 2021
(10,195), General Motors Co. (9,691), University of Michigan (9,649), Ascension
220,686
20 0,0 0 0
Health (9,473), and Trinity Health (9,418).
M I C H I G A N VOT E R P O L L S A I D :
Only 9.5% of those who have retired said they were likely to take another job in the next year.
150,0 0 0 May 2020
PERSPECTIVE
There has been a 4.7% decrease in the labor participation rate among workers over 65 and 8.1% for 50-64-year-old workers. The decline in labor participation among senior employees is having a ripple effect on the labor market as businesses try to promote or recruit new talent away from other industries or sectors, which contributes to the churn of workers driving the “Great Resignation.”
135,759
10 0,0 0 0 Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
June 2020
July 2020
Aug 2020
Sept. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Jan. 2021
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug . 2021
Sept. 2021
Oct. 2021
Nov. 2021
Dec. 2021
SOURCE: EMSI
TO P J O B PO ST INGS BY OCCUPATION
UNIQUE P O ST I N G S JA N . t o DEC. 2021
JO B P O STI N G S BY I N D U STRY
UNIQUE POSTINGS JAN . t o D EC. 2 0 2 1
Registered Nurses
34,406
Health Care and Social Assistance
Retail Salespersons
27,996
Administrative and Support and Waste Management and Remediation Services
95, 473
Software Developers and Software Quality Assurance Analysts and Testers
23,595
Retail Trade
93, 997
Customer Service Representatives
21,125
Professional, Scientific, and Technical Services
75, 785
Computer Occupations, All Other
21,095
Manufacturing
74, 838
SOURCE: EMSI
SOURCE: EMSI
10 0, 079
14
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PER CAPITA INCOME
R E A L P E R C A P I TA P E R S O N A L I N C O M E D e t r o i t M SA
Regional Per Capita Income Exceeds National Rate by 2.2 Percentage Points
$55,000
$54,256
Real per capita personal income in the Detroit MSA increased 7.1% in 2020 to $54,256. The Detroit MSA’s growth is 2.2 percentage points above the national growth rate of 4.9%, reaching $53,504 in 2020. Additionally, the state of Michigan’s real per capita income increased 8.2% from 2019 to 2020, ranking second among all states. Nationally, hourly wage workers have also experienced wage gains, especially in pandemic-affected industries like leisure and hospitality and retail. In the Detroit region, Black or African American workers have higher shares of workers in these industries. Overall, wages for hourly workers have increased 3.8% in December 2021, as measured by a 12-month moving average.
$50,669 $50,295
$50,107
$50,000
$49,367
WAGE GROWTH OF HOURLY WORKERS NATIONALLY
5.4%
top quartile
2.8%
$45,000
bottom quartile
2016
2017
2018
2019
2020
SOURCE: BUREAU OF ECONOMIC ANALYSIS
December 2021 Year Over Year
CONSUMER PRICE INDEX D e t r o i t M SA
CONSUMER PRICE INDEX
Dec. 2021
8%
7.0%
7%
Detroit Region Prices up 7% from Previous Year Prices in the Detroit MSA rose 7% over the last 12 months, as measured by the Consumer Price Index for All Urban Consumers (CPI-U). December 2021 core prices, which include all items less food and energy, rose 5% the same time period.
6%
Not all categories are demonstrating similar rises in prices over the past year. The largest percentage increases in the region can be seen in used cars (37.9%), energy (27.4%), including higher prices for gasoline (54.8%) and piped gas service (17.7%), and food (9.6%), with the largest food price increases in meat, poultry, fish, and eggs (20.3%). Nationally, year-over-year CPI rose 7% from December 2020 to December 2021, the largest increase since June 1982.
4%
Dec. 2021
Core (All items less food and energy)
All Items
5.0%
5%
3% 2% 1%
PRICES ROSE ANNUALLY DETROIT REGION
1.3%
1%
4.3%
2019
2020
2021
(over the previous year)
(over the previous year)
(over the previous year)
0 -1% Oct. 2018
Dec. 2018
Feb. 2018
April 2019
June 2019
Aug. 2019
Oct. 2019
Dec. 2019
Feb. 2020
April 2020
June 2020
Aug. 2020
Oct. 2020
Dec. 2020
Feb. 2021
April 2021
June 2021
Aug. 2021
Oct. 2021
Dec. 2021
SOURCE: U.S. BUREAU OF LABOR STATISTICS NOTE: DATA IS REPORTED BIMONTHLY. THE CPI IS BASED ON PRICES OF FOOD, CLOTHING, SHELTER, AND FUELS, TRANSPORTATION FARES, CHARGES FOR DOCTORS’ AND DENTISTS’ SERVICES, DRUGS, AND THE OTHER GOODS AND SERVICES THAT PEOPLE BUY FOR DAY-TO-DAY LIVING. NOT SEASONALLY ADJUSTED.
15
LABOR FORCE PARTICIPATION
L A B O R F O R C E PA R T I C I PAT I O N
Labor force participation across the nation and in Michigan has dropped since the beginning of 2020 and has been hovering at 61% since 2010. Michigan’s rate lies at 59.6% as of December 2021, down from 61.5% in early 2020. Nationally, Michigan is ranked 40th among states in labor force participation, with the nation’s rate at 61.9%.
M i ch i g a n
64%
63% Dec. 2021
62%
62%
61% Dec. 2021
60% Many workers exited the labor force over the course of the pandemic, in part due to in-person school closings and challenges with child care. Women in Michigan left the labor force at greater rates than men in 2020. A 5.8% decline, or 136,000 women, left the labor force in 2020. Recovering from early pandemic losses, the male labor force was up 18,000 or 0.7% in 2020 in Michigan.
58% Michigan United St ates
55% Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
June 2020
July 2020
Aug . 2020
Sept. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Jan. 2021
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug . 2021
Sept. 2021
Oct. 2021
Nov. 2021
Dec. 2021
SOURCE: BUREAU OF LABOR MARKET INFORMATION, CURRENT POPULATION SURVEY (CPS)
M O N T H LY U N E M P LOY M E N T R AT E D e t r o i t M SA a n d U n i t e d S t a t e s
UNEMPLOYMENT RATE
April 2020
23.6%
25%
Detroit MSA
Detroit MSA’s Unemployment Rate Reaches Pre-Pandemic Levels The Detroit MSA unemployment rate dropped six percentage points in December 2021 from the same month the previous year. Over the year, total employment rose by 101,000, while unemployment dropped by 129,000. Long-term unemployment in Michigan, as measured as the percent of individuals that have been unemployed for more than 26 weeks, decreased slightly to 37.2% in December 2021, an indication of reaching a peak, after steadily increasing since August 2020.
United St ates
20% April 2020
14.4%
15%
10%
Dec. 2021
Feb. 2020
Feb. 2020
5%
In 2021, the unemployment rate in Michigan of Black or African American residents reached 11%, while the rate for the total labor force was 5.7%, and 4.8% for white residents.
4.3%
3.7%
Dec. 2021
3.8% 0
Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
3.7% June 2020
July 2020
Aug . 2020
Sept. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Jan. 2021
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug . 2021
SOURCE: U.S. BUREAU OF LABOR STATISTICS AND MICHIGAN DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET; NOTE: NOT SEASONALLY ADJUSTED
Sept. 2021
Oct. 2021
Nov. 2021
Dec. 2021
16
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UNEMPLOYMENT RATE BY EDUCATION LEVEL Higher Education Consistently Shown to Improve Labor Market Outcomes
U N E M P LOY M E N T R AT E BY E D U C AT I O N L E V E L M i ch i g a n
In Michigan, individuals with higher education attainment consistently experience lower levels of unemployment. Unemployment rates for high school graduates were 2.5 times higher than those with bachelor’s degrees or higher.
Less than High School
20%
High School Graduates
Some College or Associate
Bachelors or Higher
15%
Nationally in 2020, earnings also increased with education attainment. Workers with a bachelor’s degree or higher earned a median of $66,423, compared to high school graduates who earned a median of $34,540 over the course of 2020.
10.2%
10%
In the Detroit region, the share of adults with a bachelor’s degree or higher varies greatly by race – 35% for white adults, 23% for Hispanic adults, and 19% for Black adults. As educational attainment is associated with workforce outcomes, increasing overall education attainment for the region would positively impact workers’ job options and address talent shortages.
6.7% 5.4%
5%
2.5%
0
Jan. Feb. March April 2020 2020 2020 2020
May June 2020 2020
July Aug. Sept. 2020 2020 2020
Oct. Nov. Dec. 2020 2020 2020
Jan. Feb. March April 2021 2021 2021 2021
May June 2021 2021
July Aug. Sept. 2021 2021 2021
Oct. Nov. Dec. 2021 2021 2021
SOURCE: U.S. CENSUS BUREAU, CURRENT POPULATION SURVEY (CPS)
UNEMPLOYMENT CLAIMS
996,374 CONTINUED CLAIMS
M i ch i g a n
1,0 0 0,0 0 0
80 0,0 0 0
Michigan continued unemployment claims
BELOW THAT OF PRE-PANDEMIC LEVELS
60 0,0 0 0 388,554 40 0,0 0 0
INITIAL CLAIMS
47,584 CONTINUED CLAIMS
20 0,0 0 0
9,728 INITIAL CLAIMS
0
Jan. 2020
Feb. March April 2020 2020 2020
May 2020
June 2020
July 2020
Aug . 2020
Sept. 2020
Oct. 2020
SOURCE: UNITED STATES DEPARTMENT OF LABOR
Nov. 2020
Dec. 2020
Jan. 2021
Feb. March April 2021 2021 2021
May 2021
June 2021
July 2021
Aug . 2021
Sept. 2021
Oct. 2021
Nov. 2021
17
COMMUNITY INDICATORS The Walker-Miller Energy Services LLC team serves the community through energy waste reduction programs and education.
CONSUMER SPENDING
CONSUMER SPENDING United States
Nationally, Spending on Services Surpasses Pre-Pandemic Levels
25%
spending on goods over services. Services spending reached pre-pandemic
20%
levels by Q2 of 2021 and have steadily increased each quarter since then. The shift to spending on goods resulted in increased tax revenue for the state and shows individuals’ confidence in their own economic situations and security. M I C H I G A N VOT E R P O L L S A I D :
90% of voters are concerned about inflation.
PERSPECTIVE
The persistence of COVID-19 is having a detrimental impact on supply chains and labor markets, contributing to a multi-quarter inflationary cycle. Consumer spending is also having an impact on various sectors of the economy. The 2020 drop in spending on services and rapid increase in spending on goods further disrupted supply chains, which have led to a spike in prices for many consumer products.
Percent Change, SAAR, 2019: Q4=0
Over the course of the pandemic, spending patterns shifted as consumers increased
24.4% Change in Goods
Change in Ser vices
15% 10% 5.8%
5% 0 -5% -10% -15% -20%
2019 Q4
2020 Q1
2020 Q2
SOURCE: BUREAU OF ECONOMIC ANALYSIS
2020 Q3
2020 Q4
2021 Q1
2021 Q2
2021 Q3
2021 Q4
18
detroitchamber.com/sor ECONOMIC INDICATORS
13
WORKPLACE TRENDS LABOR TURNOVER
ON-SITE WORK
60
CHILD CARE DISRUPTIONS
1.5M+
43%
Michiganders quit their job in 2021, 33%
of adults surveyed with
more than in 2020, and 45% more than in
children under 5 years of age
2017. 157,000 people resigned from their
in the Detroit region
jobs in April 2021, an all-time high.
expressed disruptions in child
%
of adults surveyed in the Detroit region worked on-site as of December 2021.
care in December 2021.
SOURCE: U.S. CENSUS HOUSEHOLD PULSE SURVEY
SOURCE: U.S. CENSUS HOUSEHOLD PULSE SURVEY (NOTE: CHILD CARE BEING CLOSED, UNAVAILABLE, UNAFFORDABLE, OR CONCERNS WITH SAFETY)
SOURCE: BUREAU OF LABOR STATISTICS NOTE: SEASONALLY ADJUSTED
CONSUMER SENTIMENT INDEX OF CONSUMER SENTIMENT
Consumer Optimism Declines as Inflationary Pressures Increase After dropping 30 index points in April 2020, consumer confidence rose in 2021, peaking at 88.3 in April 2021. At the end of 2021 consumer confidence levels dipped below those at the onset of the pandemic. In December 2021, the consumer sentiment increased to 70.4. The last time the index registered at this rate was October 2009. Over the course of the last five months of 2021, consumer sentiment averaged 70 index points as concerns about inflation emerged. Consumers were asked whether inflation or unemployment was the more serious problem, with 76% selecting inflation as more serious. This was reflected across all income, age, education, region, and political subgroups. Households in the lowest third of the income distribution recorded monthly gains in optimism in December, with expectations of income increases over the next year driving the gain in optimism. However, nearly half of all consumers expect falling inflationadjusted incomes during the year ahead. Inflationary erosion of living standards was reported in one in four households, spreading to middle age, middle income, and middle educational groups.
United States 120
Feb.2020
101.1 10 0
April 2021
88.3
80
Dec. 2021 April 2020
70.4
71.8
60
Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
June 2020
July 2020
Aug . 2020
SOURCE: UNIVERSITY OF MICHIGAN
Sept. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Jan. 2021
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug . 2021
Sept. 2021
Oct. 2021
Nov. 2021
Dec. 2021
19
COMMUNITY INDICATORS FA D I N G A M E R I C A N D R E A M
ECONOMIC MOBILITY Only Half of Children Earn More Than Their Parents by Adulthood
90%
A key aspect of the American dream is the aspiration to be a country where through hard work, any child has the chance to achieve income distribution higher than their parents.
80%
However, the percent of children earning more than their parents has steadily decreased since the 1940s. This fundamental change in the economy is also of social and political interest, reflecting a country where it is no longer easy to get ahead.
70%
60%
United Way’s ALICE Project (Asset Limited, Income Constrained, Employed) reports on the residents in Michigan who are working yet struggling to make ends meet. Thirty-eight percent of households in Michigan struggle to afford basic necessities, with this jumping to 60% of the households of Black Michiganders.
50%
40%
The work of Opportunity Insights has traced the income levels of 20 million Americans from childhood to their mid-30s. The results show upward mobility varies greatly across different parts of the U.S. In addition to place, race also plays a role, as populations with larger Black populations have lower upward mobility than populations with larger white populations. The Detroit region is seeing variation similar to other areas across the U.S. Regionally, some of the highest levels of upward mobility are found just a few miles away from the city of Detroit where the lowest rates of upward mobility are present. According to the latest data, the Detroit region has experienced low job growth rates along with low upward mobility. Regions with higher job growth rates, however, do not always ensure higher upward mobility. Higher upward mobility is seen where there is less concentrated poverty, greater school quality, and greater social capital, such as connections to higher income resources.
1940
1944
1948
1952
1956
1964
1960
1968
1972
1976
1980
1984
Child’s Birth Cohort
SOURCE: OPPORTUNITY INSIGHTS
UPWARD MOBILITY Racial Disparities Evident Between Upward Mobility Rates in City of Detroit, Broader Region
Pe r c e n t o f C h i l d r e n E a r n i n g M o r e T h a n T h e i r Pa r e n t s , B y Ye a r o f B i r t h
10 0%
U P WA R D M O B I L I T Y V S . J O B G R O W T H I N M E T R O A R E A S Average Income at Age 35 of Children who Grew Up in Low-Income Families
14
High Mobilit y, Low Job Growth
$39,0 0 0
High Mobilit y, High Job Growth
San Francisco Boston
Minneapolis
$37,0 0 0
San Jose
Pittsburgh
$35,0 0 0
Seattle
New York San Diego
$33,0 0 0
Tulsa
$31,0 0 0
Chicago Philadelphia
$29,0 0 0
Cleveland Detroit
Kansas Cit y
Denver
Miami
Phoenix Dallas Tampa
St. Louis Cincinnati
Washington
Los Angeles Sacramento Portland
Baltimore
$27,0 0 0
Atlant a
$25,0 0 0
Low Mobilit y, Low Job Growth
-2.0%
-1.5%
-1.0%
SOURCE: OPPORTUNITY INSIGHTS NOTE: METRO AREA IS DEFINED BY COMMUTING AREAS
-0.5%
Low Mobilit y, High Job Growth
-0.0%
-0.5%
Job Growth Rate From 20 04 to 2013
1.0%
1.5%
2.0%
detroitchamber.com/sor ECONOMIC INDICATORS
15
ECONOMIC EQUITY IN DETROIT Economic inequities persist in Detroit despite a decade of growth across many areas. In 2021 Detroit Future City’s Center for Equity, Engagement, and Research released a comprehensive report on the intersection of race and economic equity. With a commitment to acknowledge inequities, eliminate disparities, and work intentionally toward a more economically equitable future, the report includes six focus areas including income and wealth building; access to quality employment; business and entrepreneurship; education; health; and neighborhoods and housing. The full report can be found at www.detroitfuturecity.com.
Median income in Detroit is
Among the top 100 cities, Detroit ranks
Only 5% of Detroit residents live in middle-class
In Detroit, only 17% of residents have a
half that of the region.
99th in entrepreneurship rates.
neighborhoods, compared to 59% in the region.
bachelor’s degree or higher.
GALLUP CENTER ON BLACK VOICES
AC
K
EM
24
%
BL
AC
D U LT S K A
32%
(% Very often/Often)
(% Yes)
E IT
L OY E E S MP
15
%
H
People acted as if they were better than you. E
SOURCE: GALLUP CENTER ON BLACK VOICES, 2021
In your day-to-day life over the past 12 months, how often did the following happen to you?
W
In the past 12 months, have you felt discriminated against at work?
P L OY E E S
BL
The Chamber is leading the charge to bring the Gallup Center on Black Voices to Detroit. A new hyper-local survey will produce unique data that shows the lived experiences of Black Americans in the region. The Chamber is a member of, and partnered with, the Racial Equity Blueprint Group in this endeavor.
WH
20
IT
D U LT S E A
10%
16
21
COMMUNITY INDICATORS
RACIAL DISPARITIES IN DETROIT BUSINESSES The U.S. Census Bureau’s Annual Business Survey reported 716 Black-owned businesses in Detroit, which employ workers, compared to 6,153 non-Black-owned employer businesses. Over 5,400 more Black-owned businesses in the city of Detroit would exist if there were a proportional number of Black-owned employer businesses to the Black population of Detroit, with the total number of businesses kept static. Microbusinesses represent over 70% of Detroit small businesses, according to research completed by New Economy Initiative. These businesses, with under 10 employees and under $250,000 in annual revenue, generally have fewer connections to traditional forms of capital and support. The impacts of the pandemic on small businesses were greater, with over 65% of small businesses with between one and four employees in a weak financial position in September 2020 compared to just 32% of businesses with 50 or more employees, according to the Small Business Credit Survey report by 12 Federal Reserve Banks. Prior to the pandemic, barriers to growth, including accessing capital, existed for Black business owners. As challenges remain, reducing barriers for Black-owned businesses would encourage economic recovery and improve opportunities for Detroiters.
BLACK POPULATION SHARE VS. BLACK-OWNED BUSINESS SHARE, DETROIT
Non-Black-Owned
DETROIT BUSINESS AT-A-GLANCE
Black-Owned
Revenue amounts are in thousands of 2017 dollars
78 %
Black Population
$17,784
10
6,153
226,766
%
Black-Owned Employer Businesses
Source: What Would Detroit Businesses Look Like with Racial Parity? Published Aug. 2, 2021, on ChicagoFed.org
$109,422,068
$1,382
Average Business Revenue
$989,302
Total Business Revenue
716
Total Businesses
7,035
Jobs Provided
detroitchamber.com/sor ECONOMIC INDICATORS
M E D I A N S A L E P R I C E E X I S T I N G S I N G L E - FA M I LY H O M E S
HOME PRICES $40 0
Housing market activity continues to be strong in the region, as supply of homes
$350
remains low bolstered by attractive mortgage rates. Listings in the Metro Detroit
has decreased among Black residents in the city over the past decade, dropping
$300 $275
$262
in units were also down 4.5% for the same period. Median sale prices for 2021 in the city of Detroit increased 30% over the past year, however homeownership
$353
$30 0
area were down 9.8% in November 2021 compared to November 2020. Total sales continued to rise for single-family homes, up 11% over 2020. Average home values
Detroit MSA
United St ates
Demand for Single-Family Homes Pushes Sale Prices Up Through 2021
$246
$250 In Thousands
22
$221 $196
$20 0
$183
$150
from 53% in 2010 to 47% in 2019, shutting out residents from gains in home equity. $10 0 $50 0 2020
2019
2018
2021
SOURCE: NATIONAL ASSOCIATION OF REALTORS®; NOTE: NOT SEASONALLY ADJUSTED
B U I L D I N G A C T I V I T Y, D E T R O I T M S A
HOUSING PERMITS
80 0 0
Single-Family Home Building Shows First Increase Since 2017
7,0 0 0
Single-family construction has been trending downward since 2017 in the Detroit region, however, in 2021, new housing unit permits increased by 27% over
N e w P r i v a t e l y O w n e d H o u s i n g U n i t s Au t h o r i z e d Multi-Family
Single-Family
6,406
6,0 0 0
5,906 5,354 4,986
5,0 0 0
4,720
2020. Building activity is the highest it’s been since 2017 through the month of November for each year. Most permits were issued for single-family homes (67%) compared to multi-family (33%).
4,0 0 0 3,0 0 0
2,977 2,668 2,090
2,0 0 0
1,587 1,139
1,0 0 0 0 2017
2018
SOURCE: U.S. CENSUS BUREAU, BUILDING PERMITS SURVEY
2019
2020
2021
NOTE: ALL YEARS NOVEMBER YTD DATA
23
23
VOT E R P E R C E P T I O N S : E C O N O M I C S E N T I M E N T V S. R E A L I T Y
INFLATION AND COST CONCERNS
OV E R A L L S EN T I M E NT
93 %
Gas for your automobile
Concerns over inflation and increasing cost of goods have had a detrimental impact on economic perceptions. Respondents reported common items for which they’ve seen significant cost increases:
90 %
Groceries
68 %
Eating out at a restaurant
54%
Home heating costs
52%
Vehicle purchase
Though 90% of voters expressed such concern about inflation, the pessimism they may feel about the economy contrasts with consumer behavior.
63% of Michigan voters polled feel the economy is on the wrong track, contrasting data indicating economic growth.
With savings holding steady, spending up in 2021, and individuals secure in their employment, it is clear that many Michiganders feel comfortable with their economic circumstance but will not feel optimistic about the broader economy until the pandemic and its effects – including supply chain challenges – subside.
PERSONAL ECONOMICS
EMPLOYMENT
For most Michigan voters, the negative attitude toward the broader economy is
Perceptions about the labor market, and
not reflected by how they feel their personal economic circumstances have fared.
specifically job security, remain healthy.
Many common measures signal that the U.S. economy has not just recovered
74 %
from the depths of spring 2020, but is in fact, booming. More than 5 million jobs have been added since January 2021, additional employment opportunities are
say they are economically about the same or better than in the past.
24 %
say they are worse off than in the past.
83%
are not concerned about losing their jobs.
readily available to job seekers, and the nation’s economic output continues to
O nly 1 6 %
grow. However, despite these promising economic
conditions,
a
significant
population shares a negative sentiment that the economy is on the wrong track.
Many voters whose personal economic situation has improved are split on their views
are concerned about losing their jobs.
of the overall economy, with 48.4% believing it is on the wrong track. However, for voters who report not doing as well since the pandemic, 85% believe the economy is on the wrong track.
SOURCE: DETROIT REGIONAL CHAMBER MICHIGAN VOTER POLL , DECEMBER 2021
24
OUTLOOK FOR 2022 ENCOURAGING:
CHALLENGING:
C O N SU MER D EMAN D AN D C O N SU M PTION RE M A IN HIGH D E S PI T E SU PPLY C H AI N D I SRU PTIONS. Business leaders
THE TRA NSI TI ON OF COV I D-19 TO E N DE MI C
are expressing optimism, with rising confidence in future
have received any vaccine as of the end of January 2022.
remains
uncertain as only 65% of Michigan residents 5 years and older
business conditions over the next 12 months. Though consumer confidence has yet to recover, spending on goods and services has reached pre-pandemic levels.
TA L E NT SHORTAGE S
due to an aging workforce, early
retirements, and low labor participation rates are set to transform the future of the labor market globally, nationally,
N E W BU SI N ESS APPLI CAT I O N S C ONTINUE TO SURGE
and regionally.
in the wake of the pandemic. As experienced in previous recessions, optimism remains in business creation as
ONGOING STR UCTUR A L R ACI A L I N E Q UI TI E S
Michigan saw a 59% increase in business creation in 2021
the region’s residents to fully participate in the goal of
over 2019.
economic prosperity for all. Disparities among race and
inhibit
ethnicity remain across the region in areas such as income,
D IS RU PT I O N S I N WO RK FO RC E AN D E DUCATION A RE D E CREASI N G as the virus shifts to endemic. As businesses
employment, business ownership, and education.
and institutions have navigated ever-changing landscapes,
CHA NGE S I N R E A L E STATE A N D OF F I CE F OOTP R I N TS
best practices and protocols have been established to mitigate response to COVID-19 cases.
L A RG E SCALE I N V EST MEN T S AN D PROJ E CTS
formats. Retail establishments continue to adapt to changes in consumer behavior. are still
moving forward in the region, including General Motors Co.’s Factory Zero and Orion Assembly Plant, Ford Motor Company’s Michigan Central district, and Bedrock’s Hudson’s site, among others.
ACC ESS TO TALEN T
RISING INTE R E ST R ATE S A R E E X P E CTE D in 2022 in an effort to tame inflation. Analysts are expecting multiple hikes in 2022, as the Federal Reserve has signaled rate increases are not far off. The last time a rate hike occurred was the end of 2018.
is broadening as remote work remains
a piece of the future workplace. As businesses aim to fill the 220,000 job postings in the region, talent has the benefit of seeking working environments to fit their needs and businesses are becoming more resourceful in accessing talent.
remain uncertain as work environments transition to new
The tightening of monetary policies is intended to support the economy and a strong labor market while preventing higher inflation from persisting.
25
WHAT BUSINESS LEADERS ARE THINKING
CEO CONFIDENCE INDEX Difficulty remains in predicting what 2022 will bring as leaders are navigating a landscape of ever-changing factors with the uncertainty of the ongoing effects of the COVID-19 pandemic. As rising inflation and labor force stresses have emerged as prominent challenges, leaders are expecting supply chain disruptions, cost pressures, and labor availability issues to persist through 2022.
CEO FORECAST OF BUSINESS CONDITIONS 12 MONTHS FROM NOW
THE CFO SURVEY Three-Quarters of Firms Report Supply Chain Disruptions, Expected to Last Well Into 2022 Ninety percent of chief financial officers reported larger-than-normal cost increases, with less than 20% expecting cost increases to abate within six months, and 80% passing on at least some of these cost increases to customers through higher prices. M I C H I G A N VOT E R P O L L S A I D :
58% believe inflation is caused by supply chain delays.
PERSPECTIVE
While other economic indicators are very strong, personal concerns over inflation have negatively colored the perception of the economy. Partisanship and political affiliation have a clear impact on what is driving concerns about the economy. For economic perceptions to rebound, significant progress is needed to halt the rise of inflation and the continued spread of COVID-19; however, partisanship could remain a longer-term impediment.
38 %
Improving Conditions
37 %
Unchanged Conditions
25 %
Worsening Conditions
SOURCE: CHIEF EXECUTIVE GROUP, LLC
DESPITE BEING DOWN FROM JULY, CEO CONFIDENCE TICKED UP IN JANUARY 2022 COMPARED TO NOVEMBER 2021.
CEO RATING OF FUTURE BUSINESS CONDITIONS JULY 2021
7.3
JANUARY 2022
6.9 3 4
out of
firms report supply chain disruptions
SOURCE: FEDERAL RESERVE BANKS OF RICHMOND AND ATLANTA, DUKE UNIVERSITY’S FUQUA SCHOOL OF BUSINESS
26
detroitchamber.com/sor ECONOMIC INDICATORS
MANUFACTURING PMI® Manufacturing PMI® Continues to Recover with 19th Consecutive Month of Growth Widely seen as a leading business indicator, the Manufacturing PMI® (Purchasing Managers’ Index) signals if the manufacturing economy is expanding. A manufacturing PMI above 50% over a period indicates an expansion in manufacturing activity. In 2020, the Manufacturing PMI® contracted in March, April, and May, which ended a period of 131 consecutive months of growth. As of December 2021, the manufacturing economy continued to recover with 19 consecutive months of growth since April 2020.
M A N U FA C T U R I N G P M I ® United States
70%
58.8%
60%
50.1%
50%
40%
30%
A value above 50% indicates an expansion in manufacturing activity.
41.7%
Feb. March April 2020 2020 2020
May 2020
June 2020
July 2020
Aug . 2020
Sept. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Jan. 2021
Feb. March April 2021 2021 2021
May 2021
June 2021
July 2021
Aug . 2021
SOURCE: INSTITUTE OF SUPPLY MANAGEMENT®
M I C H I G A N VOT E R P O L L S A I D :
63% believe the economy is on the wrong track.
PERSPECTIVE
Despite overall economic news, concerns over inflation have had a detrimental impact on economic perceptions. The pessimism that many individuals feel about the economy contrasts with personal consumer behavior. With savings holding steady, spending up in 2021, and individuals secure in their employment, it is clear that many Michiganders feel comfortable with their economic circumstance but will not feel optimistic about the broader economy until the pandemic and its effects subside.
Sept. 2021
Oct. 2021
Nov. 2021
Dec. 2021
18
27
INDUSTRY INDICATORS N E W B U S I N E S S A P P L I C AT I O N S
NEW BUSINESS APPLICATIONS
M i ch i g a n
60,0 0 0
Michigan Business Applications Hit Record High in 2021
51,655
50,0 0 0 In 2021, Michigan ranked 11th in most business startups among all 50 states. New business application growth after a recession is a leading indicator of recovery and future economic growth, and often observed after times of economic hardship. Strong business application growth was not experienced in the years following the Great Recession, with applications declining for three years following 2010.
39,850
40,0 0 0
39,851 36,541
34,498
30,0 0 0 24,000
Michigan business applications totaled 150,740 for 2021, a 59% increase compared
39,850
24,370
22,638
20,0 0 0
to pre-pandemic levels in 2019, indicating strong entrepreneurial activity. More than 55,950 additional applications have been filed in 2021 compared to 2019. According to IHS Markit’s Small Business Jobs Index, Michigan ranks 16th among states with an index
10,0 0 0
level of 99.48, and the Detroit MSA ranks 18th among metros. Michigan’s small business employment has increased 5.3% during the past 12 months.
SMALL BUSINESS PULSE SURVEY
0
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
SOURCE: U.S. CENSUS BUREAU; NOTE: SEASONALLY ADJUSTED
The U.S. Census Bureau’s Small Business Pulse Survey measures the effect of changing business conditions during the coronavirus pandemic on small businesses. The survey covers all nonfarm, single-location businesses with one to 499 employees. As impacts on small businesses persist, businesses are now facing new challenges with hiring and supply chain shortages. Despite these challenges, small business conditions have improved in the Detroit region. As of November 2021, only 24% of small businesses reported experiencing large negative effects caused by the COVID-19 pandemic, compared to 64.5% in May 2020.
CURRENT SMALL BUSINESS DIFFICULTIES, DETROIT MSA
SMALL BUSINESS FUTURE NEEDS, DETROIT MSA
30.1%
41.1%
24.9%
34.9%
44.9%
27.4%
28.4%
10.5%
Say they’re having difficulty hiring employees
Experienced domestic supplier delays and 15.3% in foreign supplier delays
Experienced delays in delivery and shipping to customers
Experienced an increase in prices of goods and services compared to March 2020
Find and hire new employees
Identify new supply chain options
Increase marketing or sales
Obtain financial assistance or additional capital
SOURCE: U.S. CENSUS BUREAU, SMALL BUSINESS PULSE SURVEY, WEEKS SURVEYED NOV. 15-21, 2021
INDUSTRY INDICATORS Movie theaters like Emagine welcome patrons back as leisure industry returns.
JOBS RECOVERED AND GAINED BY INDUSTRY Total Nonfarm Employment Recovered 91% of the Jobs Lost During the Pandemic In the Detroit region, the impact on employment and the recovery has not been consistent across all industries. The hardest hit sector from the beginning of the pandemic was Leisure and Hospitality. The sector has recovered 74% of its jobs, but despite a huge improvement, accommodation is still down 28,900 jobs, 15% off its February 2020 levels.
J O B S R E C OV E R E D A N D G A I N E D BY I N D U S T RY C h a n g e i n N o n f a r m Pa y r o l l E m p l o y m e n t , Fe b r u a r y 2 0 2 0 - D e c e m b e r 2 0 2 1 , D e t r o i t M SA
% Change 23 Months
Jobs yet to be recovered or jobs gained Total Nonfarm Leisure
471,400 Jobs recovered from initial pandemic loss
Education Other Services Government
-48,400
-2% -15% -7% -11% -4% -2%
Manufacturing
Professional and Business Services lost 79,000 jobs from February 2020 to April 2020. As of December 2021, the sector has gained 91,200 jobs back, gaining 3% or 12,200 more jobs than pre-pandemic. Overall, total nonfarm employment has recovered 471,400 jobs or 90.7% of the jobs lost from the initial pandemic loss. As of December 2021, employment is still down 48,400 jobs or 2% below pre-COVID-19 levels.
Information
-10% +1%
Financial Mining Trade Professional
+5% +3% +3%
NOTE: NOT SEASONALLY ADJUSTED. DECEMBER 2021 DATA IS PRELIMINARY. INITIAL PANDEMIC LOSS COVERS PERIOD BETWEEN 60APRIL 0,0 02020. 0 50 0,0 0 0 40 0,0 0 0 30 0,0 0 0 20 0,0 0 0 10 0,0 0 0 0 FEBRUARY AND SOURCE: U.S. BUREAU OF LABOR STATISTICS
29 19
PUBLIC TRANSIT RIDERSHIP ALL MODES
PUBLIC TRANSPORTATION RIDERSHIP
Detroit Region 5,000,000
Public Transit Ridership is Down 62% From Pre-Pandemic Levels Public transit is a critical infrastructure for communities, especially during a pandemic, and many residents heavily rely on these systems to help them perform essential activities. In the beginning of 2020 more than 3.7 million riders used public transit in the Detroit region. Public ridership saw steep pandemic-related declines in early 2020. The region experienced the largest drop in use during April 2020, an 83% change in ridership compared to April 2019. As of 2021, public transit ridership in the region had yet to make a strong recovery, down 12% compared to 2020 and down 62% compared to pre-pandemic levels. Declines in public transit use have been an ongoing result of the pandemic, however the Chamber continues to champion the need for reliable, accessible transit for the region. Due to low ridership, agencies across the region have had substantial services changes and face employment shortages as seen in other industries.
2019 Total
4,000,000
45,183,569
3,000,000
2,000,000
2020 Total
19,786,814
1,000,000
0
2021 Total
17,333,042
Jan.
Feb.
March
April
May
June
July
Aug .
Sept.
Oct.
Nov.
Dec.
SOURCE: NATIONAL TRANSIT DATABASE
BLACK OR AFRICAN AMERICAN RESIDENTS IN THE DETROIT REGION ACCOUNT FOR 79% OF THE TOTAL PUBLIC TRANSIT COMMUTERS
P E R C E N T O F TOTA L P U B L I C T R A N S I T C O M M U T E R S D e t r o i t M SA
White
18% Other
3% B l a ck o r African American
79%
SOURCE: U.S. CENSUS BUREAU, 2019
30 20
detroitchamber.com/sor ECONOMIC INDUSTRY INDICATORS INDICATORS
HOTEL OCCUPANCY
OFFICE AND INDUSTRIAL VACANCY RATES
Hotel Occupancy Rates Improve in 2021 Amid Demand Surge
The Detroit Region’s Industrial and Office Market Remains Resilient In 2021, the region’s office vacancy rate increased by one percentage point to 11.3%, and industrial vacancy rates decreased to 3.7%. Companies continue to evaluate their return-to-work plans creating hesitancy in long-term renewals. The Detroit region’s office vacancy remains 1.5 percentage points above the national vacancy rate of 9.8% and the industrial vacancy rate in the region remains below the nation’s rate of 7.8%.
In the Detroit region, the steepest hotel occupancy rate decline was in April 2020 – a yearover-year decline of 62%. A year later, the region’s hotels experienced an increase of 106% occupancy in April 2021 compared to the April 2020 decline. As vaccination rollout continues, demand for travel has surged. The region’s hotel occupancy rates for December 2021 increased by 45% compared to the same month last year. STR Inc., a leading provider of market data on the hotel industry, continues to anticipate a full recovery of demand by 2023.
O F F I C E A N D I N D U S T R I A L VA C A N CY R AT E S
H OT E L O C C U PA N CY R AT E
Detroit Region 14%
Detroit Region 120%
Industrial
Office
10 0%
12%
11.3%
80%
10.3%
10.2%
10%
9.3%
106%
60%
9.1%
45%
40%
8%
20 -2%
6% 4%
0 3.6%
3.6%
4.1% 3.4%
3.7%
-20% -40%
2% 0
-60%
-62%
-80% 2017
2018
2019
2020
Jan. Feb. March April May June July Aug . Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug . Sept. Oct. Nov. Dec. 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021
2021
SOURCE: STR INC.
SOURCE: CO-STAR
M O N T H LY A I R P O R T PA S S E N G E R S
DETROIT METRO AIRPORT PASSENGERS DTW Gets Busier in 2021, Still Trailing 2019 Passenger Volume
D e t r o i t M e t r o p o l i t a n Wa y n e C o u n t y A i r p o r t 4,0 0 0,0 0 0 3,50 0,0 0 0
Detroit Metropolitan Wayne County Airport (DTW) is Michigan’s largest airport and employs more than 86,000 individuals with an annual economic impact of $10 billion. In 2019, total passengers at DTW reached a record high of 36 million. In 2020, it saw 14.1 million total passengers, a 61.6% decline from the previous year. Total passenger traffic declined as low as 178,000 in April 2020. In 2021, DTW’s total passengers increased by 67.9% compared to 2020, totaling 23.6 million passengers. Despite a significant increase, passenger traffic still trails behind 2019 with nearly 12.5 million fewer passengers or a decline of 35% in traffic. Nationally, airport traveler traffic is up 80% in 2021 compared to 2020, but still down over 260 million travelers, or 31%, compared to 2019.
2019 Total
36,210,623
3,0 0 0,0 0 0 2020 Total
2,50 0,0 0 0
14,104,0 07
2,0 0 0,0 0 0 1,50 0,0 0 0
2021 Total
23,680,545
1,0 0 0,0 0 0 50 0,0 0 0 0
Jan.
Feb.
March
April
May
SOURCE: WAYNE COUNTY AIRPORT AUTHORITY
SOURCE: WAYNE COUNTY AIRPORT AUTHORITY
June
July
Aug .
Sept.
Oct.
Nov.
Dec.
31
INDUSTRY SPOTLIGHT:
AUTOMOTIVE
AND MOBILITY Electric Hummer rolling down the line at General Motors Co.’s Factory Zero grand opening.
AUTOM OTIVE A ND M OBIL ITY IN M ICHIGA N suppliers to North America have a presence or headquarters in Michigan
Original Equipment Manufacturers (OEM) in Michigan
universities and colleges with nationally ranked undergraduate engineering programs, four of which also have nationally ranked graduate programs
EV
FOOTPRINT
9
3.2 MILLION
facilities producing and
increase in light vehicle EV
developing electric vehicle
production is projected by
batteries
2030 with 19.6% of production in North America
contribution to the economy annually
facilities with engineering, R&D, testing, and validation centers
1,580+
ONE THIRD
$10 BILLION
publicly accessible
of U.S. battery production and
invested in EV and AV
charging ports
development is in Michigan
firms from 2010 to 2020
jobs SOURCE: 2021 MICHIGAN IS AUTOMOBILITY REPORT, MICHauto
detroitchamber.com/sor ECONOMIC INDICATORS
U. S . L I G H T W E I G H T V E H I C L E S A L E S
U.S. LIGHT VEHICLE SALES
S e a s o n a l l y A d j u s t e d A n n u a l R a t e ( SA A R ) 20
April 2021
Light Vehicle Sales Continued Decrease Amid Supply Chain Strains
Jan. 2020
18.3
16.9
At the beginning of 2021, annualized U.S. Light Vehicle Sales were projected to increase steadily after experiencing a drop as low as 8.6 million in April 2020 due to operational shutdowns. With a resilient retail market, sales strongly bounced back. However, since April 2021 there has been a consistent decline in the annualized light vehicle sales rate. An ongoing semiconductor chip shortage in the U.S. poses challenges and inventory shortages, with worsening sales since an annualized peak of 18.3 million in April 2021. Average Transaction Prices (ATPs) reached $47,077, up nearly 14% compared to December 2020. The average luxury vehicle price reached $64,864 in December 2021 — the highest recorded.
Millions of Units
32
15
Dec. 2021
12.5
10 8.6
U.S. LIGHT VEHICLE SALES
April 2020
14.6M
14.9M
15.4M
2020
2021
2022 Forecast
5
Jan. Feb. March April May June July Aug . Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug . Sept. Oct. Nov. Dec. 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021
SOURCE: U.S. BUREAU FOR ECONOMIC ANALYSIS
SOURCE: BUREAU OF ECONOMIC ANALYSIS, NADA
N O R T H A M E R I C A N C A R A N D L I G H T- T R U C K P R O D U C T I O N
NORTH AMERICAN CAR AND TRUCK PRODUCTION Michigan Car and Truck Production Increased 18% in 2021 Since reopening from COVID-19-related shutdowns in May 2020, production
1,200,000
1,000,000
800,000
Truck Production 830,297 Dec. 2021
has returned to pre-COVID-19 levels with total vehicle production reaching 1.03 million in December 2021. In 2021, North American car and truck production totaled 13.2 million vehicles, a 21% increase compared to 2020 production. In 2021, Michigan vehicle production totaled 1.8 million units, an increase of
600,000 Car Production
400,000
204,247 Dec. 2021
17.6% over 2020. The top producing plants in Michigan – Stellantis’ Sterling Heights Assembly Plant, Jefferson North Assembly Plant, and Ford Motor Company’s
200,000
Dearborn Truck Assembly Plant – are located in the Detroit region. As of the end of 2021, 14% of the share of North American production occurs in Michigan.
0
Jan. 2020
Feb. 2020
March 2020
April 2020
May 2020
June 2020
SOURCE: AUTOMOTIVE NEWS
July 2020
Aug . 2020
Sept. 2020
Oct. 2020
Nov. 2020
Dec. 2020
Jan. 2021
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug . 2021
Sept. 2021
Oct. 2021
33
CASE STUDY: XL FLEET In 2021, XL Fleet celebrated the launch of its Michigan Fleet Electrification Technology Center located in Wixom. XL Fleet is a leader in vehicle electrification solutions for commercial and municipal fleets. The Wixom facility is focused on bringing green transportation jobs to Michigan, contributing to the state’s commitment to sustainability. The new Fleet Electrification Technology Center opened in March of 2021 as XL Fleet’s fourth U.S. location, including over 25 full-time Michigan employees and with plans for continued expansion over the next several years. The 25,000-square-foot facility was created to help the company expand its suite of commercial fleet electrification solutions while meeting the growing demand for electric vehicles throughout North America. Additionally in 2021, the U.S. Army’s Project Manager Transportation Systems and Defense Innovation Unit selected XL Fleet as one of two companies to develop a prototype fuel-saving technology for military vehicles over the coming year. The technology has the potential to be applied to tens of thousands of existing military vehicles and is part of the Department of Defense’s goal to address fuel-saving opportunities for its fleet of more than a quarter million military tactical vehicles. As part of the pilot project, XL Fleet has been asked to develop and deliver a retrofit idle reduction technology that can be installed by soldiers in the field. This project will not only create a fuel-saving technology for tactical vehicles but also support defense organizations as they move toward further hybridization and electrification. XL Fleet’s Michigan Fleet Electrification Technology Center in Wixom.
CHAMBER LEADERSHIP: AUTOMOTIVE AND MOBILITY
MICHauto, an initiative of the Detroit Regional Chamber, is the state’s only automotive and mobility cluster association – promoting, retaining, and growing Michigan’s signature industry to champion the state as the industry’s global epicenter. MICHauto has a powerful political advocacy presence in Lansing and Washington and supports next-generation mobility innovation and talent attraction and retention through initiatives like the MICHauto Innovator Xchange and Discover Auto: You Drive the Future talent attraction and perception campaign. Also a leader in research and data, MICHauto publishes the Michigan is Automobility report, which assesses the state of the industry as well as its economic importance and defines Michigan’s global leadership. MICHauto Executive Director Glenn Stevens Jr. presents at the annual MICHauto on the Island gathering at the Mackinac Policy Conference.
INDUSTRY SPOTLIGHT:
AEROSPACE AND DEFENSE
During a tour of Pratt Miller’s New Hudson Facility, the Chamber team and legislators were shown the company’s Defense Advanced Research Projects Agency (DARPA) vehicle, which is part of a program that seeks to improve the mobility, survivability, safety, and effectiveness of future combat vehicles.
A E ROSPACE A ND DE F E NSE IN THE DE TROIT RE GION
Employs
average annual wage (2020) people across The Detroit MSA
establishments
in defense contracts (FY 2021)
total economic impact (2020)
largest metro for aerospace and defense professionals SOURCE: MICHIGAN DEFENSE CENTER, EMSI, USASPENDING.GOV
35
D E PA R T M E N T O F D E F E N S E S P E N D I N G Detroit Region
DEFENSE CONTRACTS: AMOUNT OBLIGATED $4,000,000,000
$3.7 B
Department of Defense spending has continued to decrease since 2019. In 2021 its spending totaled $3.1 billion, a decrease of $1 million from 2020’s total of $3.2 billion.
$3.8 B $3.9 B
$3,500,000,000
$3.2 B
$3.1 B
$3,000,000,000
Top Defense Contract Spending Locations (2020)
$2.4 B
$2,500,000,000 $2.1 B
$2,000,000,000 $1,500,000,000
$
3B
$
430M
Macomb County
Oakland County
$1,000,000,000
$
297M
$500,000,000
Wayne County
$0
DETROIT ARSENAL / DEFENSE CORRIDOR 178 acres, 67 buildings, and 200 million square feet of building space
Serves 250 military and 7,500 Department of Defense civilian and contract workers
Only active-duty military installation in Michigan
70% of Army purchases contracted through Army Contracting Command Detroit Arsenal
Home to the Next Generation Combat Vehicle Cross-Functional Team (NGCV CFT)
The Detroit Arsenal Tank Plant, built in 1940, was the first manufacturing plant to mass produce tanks in the United States
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
SOURCE: USASPENDING.GOV
MICHIGAN DEFENSE CENTER The Protect and Grow Initiative, a strategic plan of high-priority recommendations to protect Michigan’s national security assets and to grow the state’s defense industry, focuses on strengthening its national standing. The success of this initiative increased Michigan’s reputation as a leader in defense and resulted in new missions and funding for defense assets. In 2020 the Michigan Defense Center launched the second phase of Protect and Grow, building on the relationships of the Michigan defense contractors and defense industry. According to the initiative’s 2021 progress report, there are eight objectives that focus on making Michigan a stronger competitor for the Department of Defense’s investment priorities. One objective, Protect DOD and National Assets in Michigan, resulted in $300,000 in federal grant money awarded to the Detroit Arsenal Regional Defense Assessment of Resilience.
36
detroitchamber.com/sor ECONOMIC INDICATORS
CASE STUDY: WELDALOY SPECIALTY FORGINGS Weldaloy Specialty Forgings was founded in 1946, motivated by welding techniques developed for World War II. In the 1960s, its production facility was moved to Warren, where they pioneered innovations for seam welding wheels for the automotive industry. Known for specializing in forging copper alloys, Weldaloy’s catalog includes a vast array of other metals – including titanium alloys and nickel-based superalloys. Like many companies that started as automotive manufacturers in the Detroit region, Weldaloy has evolved its portfolio to a variety of business sectors, including space, aviation, electronics, power generation, military, and defense. With more than 75 years of experience in forging, heat treating, and machining specialty metals, Weldaloy’s aerospace business has grown over the past decade. Forging state-of-the-art custom aerospace parts, including rocket nozzles, rolled rings, and specialized engine components, “our goal is to have parts on every spacecraft that takes off,” says Andrew Smith, Weldaloy’s chief operating officer. Weldaloy Specialty Forgings is now a top supplier for critical aerospace parts. In December 2021, Weldaloy began a major expansion to its campus to meet the demands of its customers. Weldaloy’s Aerojet Rocketdyne NASA nozzle.
CHAMBER LEADERSHIP: AEROSPACE AND DEFENSE Tammy Carnrike, the Chamber’s chief operating officer, is the Civilian Aide to the Secretary of the Army, representing Michigan. She is responsible for providing feedback to the U.S. Secretary of the Army, commanders, and senior leaders on public sentiments toward the Army. In line with her Chamber role for supporting Michigan’s automotive, mobility, and manufacturing industries, Carnrike’s prestigious role with the Army bolsters the Chamber’s commitment to ensuring Michigan’s place at the forefront of the aerospace and defense sector’s growth.
Chamber Chief Operating Officer Tammy Carnrike speaks with Pratt Miller Chief Executive Officer Matt Carroll during a tour of the Pratt Miller New Hudson facility.
37
INDUSTRY SPOTLIGHT:
H E A LT H
CARE
A Henry Ford Health System nurse consults with a patient.
THE HE A LTH CA RE INDUSTRY IN THE DE TROIT RE GION
largest metro for health care professionals
in National Institute of Health funding – $608 million in funding through 1,297 awards in 2021
hospitals recognized as “nationally ranked” or “high performing” SOURCE: EMSI, U.S. NEWS AND WORLD REPORT, NATIONAL INSTITUTE OF HEALTH
38
detroitchamber.com/sor ECONOMIC INDICATORS H E A LT H C A R E J O B G R O W T H
JOB GROWTH: HEALTH CARE Significant Decreases in Health Care Jobs Amid Pandemic
Detroit Region
315,000 309,773
In 2020 health care job growth in the Detroit region had a sizeable decrease from 309,773 to 289,025 – a decline of 6.7%. That trend continued into 2021 when job growth continued to decline to 288,671. COVID-19 and its subsequent restrictions have delayed routine care and certain surgical procedures. The pandemic has placed an unimaginable strain on health care employees. Nationally, the health care and social assistance industry laid off or discharged 1,220,000 industry workers in March 2020 – the highest number ever recorded for the sector. The September 2021 quit rate increased to a series high of 2.8%, recording 562,000 resignations from the health care and social assistance industry.
307,906 305,629
304,944
300,000
289,025
288,671
2020
2021
285,000
270,000 2016
2017
2018
2019
SOURCE: EMSI
T E L E H E A LT H T R E N D S
HEALTH CARE TRENDS 42% of Telehealth Attributed to Behavioral Health Care, Up From Less Than 1% Pre-Pandemic
M i ch i g a n
Behavioral Health (In-Person)
400,000
Telehealth - Behavioral Health
350,000
Telehealth - Medical
In 2020, Michigan experienced a boost in telehealth care. Due to the COVID-19 pandemic, patients were highly encouraged to utilize telehealth versus traditional in-person appointments. Since the peak of telehealth usage in 2020, telehealth trends have decreased, still remaining, however, higher than pre-pandemic levels. Telehealth medical usage decreased from 364,916 counts in May of 2020 to 81,782 counts in October of 2021. Behavioral health telehealth is the most utilized telehealth category with 187,707 claim counts in October 2021. Nearly 42% of the market share is represented by telehealth behavioral health. This is a staggering comparison to the pre-pandemic levels, where telehealth behavioral health only represented 1% of the market share.
300,000 250,000 200,000 150,000 100,000 50,000 0
Feb. 2020
March 2020
April 2020
May 2020
June 2020
July 2020
Aug . 2020
Sept. 2020
Oct. 2020
Nov. 2020
SOURCE: BLUE CROSS BLUE SHIELD OF MICHIGAN
Dec. 2020
Jan. 2021
Feb. 2021
March 2021
April 2021
May 2021
June 2021
July 2021
Aug . 2021
Sept. 2021
Oct. 2021
39
CASE STUDY: WORKIT HEALTH Workit Health is a leader in telehealth addiction treatment. Located in Ann Arbor, Workit Health raised $118 million in Series C funding. The investment was made by Insight Partners, with support from FirstMark Capital, CVS Health Ventures, BCBS Venture Fund, and 3L Capital. Founded in 2014 by Robin McIntosh and Lisa McLaughlin, Workit Health provides clinically effective digital addiction treatment that’s evidence-based and on-demand. Since the pandemic’s beginning, Workit Health has experienced a 400% increase in membership. “Workit is at the forefront of massive acceleration in telemedicine adoption, which is key to solving the overdose crisis that was exacerbated by COVID-19. The risk factors associated with substance use have dramatically increased,” said Workit Health’s Co-Chief Executive Officer Lisa McLaughlin.
Workit Health’s founders in action planning its latest programs.
CHAMBER LEADERSHIP: HEALTH CARE
The $118 million investment will expand Workit’s offerings to include psychiatric and primary care and programming for ADHD, adolescents, and pregnancy. Workit Health also plans to continue growing and will be available nationally by 2023. According to a news release, 84% of Workit members stay in the program longer than 30 days, compared to an industry average of 33% of patients staying in traditional treatment the first month. Robin McIntosh, Workit Health’s co-chief executive officer said, “We’re establishing a new model for addiction care in America, and proud to be working with partners at the cutting edge of high growth in health care and technology.”
The Chamber and Blue Cross Blue Shield of Michigan (BCBSM) have been close partners in health care for nearly 50 years. BCBSM develops specific programs with the Chamber to help provide the business community with tools to create healthier workplaces and communities. This includes its role as a founding partner of Wellness Works, a health and wellness initiative designed to educate employers, motivate employees, and encourage communities to work together towards a healthier Southeast Michigan. BCBSM also spends time creating innovative products and resources to help reduce costs and enhance the customer experience.
detroitchamber.com/sor