2024 State of the Region Report

Welcome to the Detroit Regional Chamber’s 10th annual State of the Region report. Once again, we are pleased to partner with Citizens to provide this comprehensive analysis of economic and social progress – and our trajectory forward. Here are some key themes in this year’s State of the Region.

Economic Perception Disconnect: Despite a demonstrably strong economy –dramatically cooling inflation, record consumer spending levels, unemployment at or below 4%, and surprisingly strong GDP growth (including almost 5% in Q3 2023), voters continue to be pessimistic about economic conditions. Our statewide polling work with the Glengariff Group Inc. found that 69% of voters expect the economy to weaken and almost half think inflation will increase despite strong evidence to the contrary. Additionally, while consumer sentiment numbers rebounded modestly in 2023, they reached record lows in 2022.

Businesses in Good Position: Both nationally and throughout Michigan, business leaders report positive outlooks. U.S. large business leader confidence is up sharply, 56% to 73% year-over-year, 64% of small business owners report they are in “good health”, and perhaps most important for Michigan’s outlook is that new business applications recorded their second-best year – a strong indication of future economic growth.

Challenges Remain: Despite our strong assets, including 18 Fortune 500 company global headquarters (nine in the Detroit Region alone), we continue to shallow against peer regions. Key areas such as labor force participation and educational attainment continue to be challenges, as do equity gaps that harm both our economy and society – all of which can be tied in part to our state and Region’s lack of population growth.

Sandy K. Baruah President and Chief Executive Officer, Detroit Regional Chamber

This 2024 report once again demonstrates the strength and fortitude of the Detroit Region in the face of evolving economic conditions.

Despite factors like higher interest rates and a labor strike that affected more than 50,000 workers, Michigan’s GDP grew more than 2% in every quarter of 2023, wages and salaries in the Detroit Region rose year-over-year, and unemployment remained near historic lows.

Inflation is a lingering concern for many residents in our area, but it is clear that the outlook is improving and the innovative and entrepreneurial spirit of our Region is alive and well. After all, business applications in Michigan reached their secondhighest level on record in 2023.

At Citizens, we have served clients in Detroit for many years, and we look forward to partnering with many of these new businesses to help them achieve their goals.

We also believe that for our businesses and economy to thrive, our communities must also thrive. That is why we are proud to partner with programs such as The Greening of Detroit, Year Up, Grow Detroit’s Young Talent, Great Lakes Women’s Business Council, and Gleaners Community Food Bank to support workforce development, financial empowerment, and a more diverse, equitable, and inclusive Detroit community.

As we look ahead, there are plenty of reasons to be optimistic, and Citizens will continue to serve as a trusted advisor to our clients and community partners as we strive together toward a brighter future for Detroit and our Region.

Yasmeen Jasey

Michigan Market Executive, Citizens

Despite Continued Strong Economy, Disconnect Remains With Negative Perceptions

ECONOMIC CONDITIONS STRONG

increase in Michigan's GDP every quarter during 2023, with two quarters of remarkable national economic growth.

year-over-year increase in wages and salaries in the Detroit Region, maintaining recent elevated rates.

unemployment in the Detroit Region for 22 consecutive months.

SURVEYS INDICATE LINGERING NEGATIVITY

Nationally, consumer sentiment in 2023 sat 30 index points below its 2019 levels.

In the Detroit Regional Chamber’s December 2023 Michigan Voter Poll, 61% of respondents say they are doing better or the same economically as before the pandemic and 80% of employed respondents are not concerned about losing their jobs. Yet –

45%

increase in goods spending and 7% increase in services compared to 2019.

think the economy is weakening.

believe in ation will get worse in the next year.

of voters across all demographics believe the next generation will have a worse standard of living.

Michigan Voter Poll

Over the past several years, the Detroit Regional Chamber has worked with premier research firm and polling partner, the Glengariff Group Inc., on an ongoing series of perception polls of registered voters in Michigan. Highlights can be found throughout this report.

DEFINING THE REGION

RANKING

LARGEST POPULATION GROWTH

Livingston (7.3%)

Washtenaw (3.9%)

Oakland (3.7%)

LARGEST POPULATION DECLINE

Genesee (-3.9%)

Wayne (-2.2%)

Shiawassee (-1.9%)

The Detroit Region is a dynamic, united 11-county area encompassing more than 300 municipalities and 7,062 square miles with rich geographic, human, and business assets.

Home to more than 530,000 business locations, including nine Fortune 500 companies, 5.4 million people, and 34 educational institutions, the Detroit Region has a diverse economy, low cost of living, and a highly skilled workforce.

OVERVIEW

The 11-county Detroit Region’s population reached 5.4 million, an increase of 0.8% since 2012.

The city of Detroit’s population declined 11.6% over the past decade, dropping to 620,000 residents.

Michigan’s overall population grew 1.4% from 2012, totaling over 10 million in 2022.

The Detroit Region is home to 98 of the 100 top automotive suppliers to North America, with 65 headquartered here, including BorgWarner’s global Propulsion Technical Center in Auburn Hills. Photo courtesy of BorgWarner.

POPULATION BY PEER REGIONS

In 2023, the State of Michigan created the Growing Michigan Together Council to support the state’s population growth, setting the goal to be a top-10 state for population growth by 2050. The Detroit MSA plays a major part in the goal’s success as it accounts for 43% of the state’s population.

While the Region’s population increased over the past decade, it only grew 1.0%, ranking 16th out of 20 peer regions.

The aging population is also a notable concern. In 2022, 18% of the Region’s population was 65 years or older, placing it as the fifth-oldest among peers. Respectively, the Region’s 20-39-year-old population increased 7.7%, while the over-65 population increased 30.2% since 2012.

According to the Citizens Research Council of Michigan, international immigration provides a consistent inflow to the population. The Region’s total population is 10% foreign born (15th) and has increased 17% over the past decade (12th).

JOBS BY INDUSTRY

Care, Government, Manufacturing, Retail , Top Four Industries in the Detroit Region

Of the 2.4 million people employed in the Detroit Region, 1.2 million or 50% are employed in the top four industries.

While jobs have recovered from pandemic lows, employment is still down 2.3% compared to 2019.

75% reported not having trouble finding a good paying job, and 66% reported good jobs are available in the market.

FORTUNE 500 AND LARGEST PRIVATE COMPANIES

The Detroit Region is Home to Nine of Michigan’s 18 Fortune 500 Companies With Headquarters in the State

As the epicenter of the global automotive industry, Ford Motor Company and General Motors are among the top of the Fortune 500.

Stellantis, with its North American headquarters in Auburn Hills, employs almost 39,500 people in Southeast Michigan and earned $91.2 billion in revenue in 2022.

KEY ECONOMIC INDICATORS

The real gross domestic product (GDP) measures economic activity by measuring the value of goods and services produced while adjusting for inflation.

U.S. economic growth has been remarkable in 2023, with two quarters of strong quarterly growth closing out the year.

Michigan’s GDP grew over 2% quarterly though 2023 at a much slower rate than the nation.

Down 2% in Detroit Region, Up 3% Nationally Since 2019

Total nonfarm employment continued to recover from its historic pandemic declines, increasing by 8.0% from December 2020 to December 2023.

Regional employment in several sectors remains below pre-pandemic levels in 2023. -9.8%

and

UNEMPLOYMENT RATE

Resilient Economy Keeps Unemployment

Near 4% in the Detroit Region

Unemployment in the Detroit Region stayed at or below 4% for 22 straight months, falling for the third consecutive year in 2023. Economists generally attribute an unemployment rate that hovers between 3% and 5% to a healthy economy.

Individuals with higher educational attainment continue to experience lower levels of unemployment throughout 2023. Unemployment for individuals with a bachelor’s degree held steady at 2.0%, over half that of those with just a high school diploma (4.3%).

Detroit Region

MEDIAN HOUSEHOLD INCOME

Increased 22% in the Detroit Region Since 2017, Nearly Matching the National Growth of 24%

In 2022, the regional median household income was $71,265 – an increase of 6% from the 2021 estimate of $67,153.

AND

Growth Remains Elevated at 4.1% Year-Over-Year, Down From 5.1% in 2022

In the Detroit Region, wages and salaries for private industry workers increased at a 4.1% pace year-over-year.

The Detroit Region’s average weekly wages for private sector workers totaled $1,346 in 2022, increasing 16.5% since 2018.

United States and Detroit MSA

INFLATION IMPACTS

CONSUMER SENTIMENT

Hit Record Lows in 2022, Improved in 2023, Surged in January 2024

The 2023 annual sentiment reached levels last seen in 2008 during the Great Recession after dipping to a 60-year series low in 2022.

While consumer sentiment hit record lows in this period, recent monthly numbers notably rebounded, surging to 79.0 in January 2024.

Consumer Sentiment by Political Affiliation United States, December 2023

90.6 Democrat

64.5 Independent

57.0 Republican

Michigan Voter Poll

Consumer Sentiment Varies Greatly by Political Party in Michigan

52.5% of Leaning Republicans in the state say they are worse off economically than before the COVID-19 pandemic, compared to 31.5% of Leaning Democrats.

Source: Detroit Regional Chamber and the Glengariff Group Inc., December 2023

CONSUMER SPENDING

Is Strong Despite Low Consumer Sentiment and Tightening Interest Rates

While consumers are pessimistic about the economy, they continue to spend strongly, amassing a record spending sum of $15.6 trillion.

The Federal Reserve Board began raising interest rates in March 2022 to ease inflation, raising rates 11 times before stabilizing with three consecutive meetings of unchanged rates since July 2023.

Nationally, credit card debt spiked to record balances in Q3 2023, with delinquency rates rising from 2021 historic lows.

Nationally, the personal savings rate has decreased to 4.0% as of Q3 2023, much lower than the 7.0% experienced in Q3 2019.

Michigan Voter Poll

Despite sour views toward the economy, voters have consistently expressed strong confidence in their own economic situations – 61% saying they are doing better or the same economically as before the pandemic. Source:

CONSUMER PRICE INDEX

Inflation Has Cooled to 4.5% Year-Over-Year in the Region, Higher Than National Rate of 3.4%*

Consumer Price Index (CPI) spiked to a 40-year high in mid-2022, with inflation significantly leveling over 2023.

Cooling inflation does not necessarily translate to a decrease in prices of goods and services; items are still higher than pre-pandemic and continue to affect individual consumers.

2023,

Dec. 2019: $0.57 per lb.

Dec.

CONSUMER

PRICE INDEX

Detroit MSA

9.7%

All Items Peak

7.8%

Core Peak

5.5% Core (All Items Excluding Food and Energy) 4.5% All Items

THE BITTER TASTE OF RISING COSTS

Dec. 2019: $1.36 per lb.

Dec. 2023: $2.02 per lb.

Dec. 2019: $1.54 per dozen

Dec. 2023: $2.51 per dozen

Dec. 2019: $3.18 per gallon

Dec. 2023: $4.00 per gallon

BUILDING PERMITS

Total Permits Decreased 23% in the Region Compared to 2022, Almost Double the National Decline of 12%

High interest rates impacted permits in 2023. Multifamily units decreased 42% compared to the previous year, while single-family units decreased 10%.

HOME PRICES

Increased 6.3% in Q3 , Surpassing the National Growth of 3.6%

NEW BUSINESS APPLICATIONS

Up 56% From Pre-Pandemic Levels , Michigan’s Second-Strongest

Year on Record

New business applications are a leading indicator of future economic growth and entrepreneurial activity. In Michigan, applications remain high, increasing 6.8% year-over-year, suggesting sustained economic conditions for growth.

Michigan ranked 21st for business applications per capita in 2023. Out of nearly 148,000 applications in 2023, over 10% are businesses with planned wages, contributing to job creation throughout the state.

Gig work varies by demographic groups, with the largest shares including 13.8% of 18-29-year-old respondents, 11.7% of Black respondents, and 9.3% of women indicating they have a gig job.

WHAT BUSINESS LEADERS ARE THINKING

U.S. CEOs’ PERCEPTIONS

Improving Confidence as Business Leaders Optimistic Interest Rate Hikes to End

A sense that inflation is under control led to a positive end to 2023, with 42% of leaders expressing that conditions will improve 12 months out, among the highest levels of 2023.

In 2023, leaders navigated inflation, interest rate increases, labor shortages, and bank failures. Concerns going into 2024 include persistent inflation, a tight labor market, geopolitical turmoil, and an unpredictable stock market.

project increases up from 56% in November 2023.

expect increases, reversing a downward trend since mid-2023.

CAPITAL EXPENDITURES HIRING

expect increases after two months of decline.

project increases up from only 37% in October 2023.

Austan Goolsbee, Federal Reserve Bank of Chicago’s President and Chief Executive Officer, at the Detroit Economic Club with Sandy K. Baruah, Detroit Regional Chamber President and Chief Executive Officer and the Chicago Fed’s former Detroit Branch Board Chair.

Photo courtesy of the Detroit Economic Club / Jeff Kowalsky.

SMALL BUSINESS INDEX

Concerns About Inflation Remain Top Challenge – By Far

For the sixth consecutive quarter, over 50% of small businesses cite inflation as the most significant challenge they are facing, with no other concern coming close to this level – revenue (22%), rising interest rates (19%), or supply chain issues (17%).

In Q4 2023, small business confidence dropped eight points from Q3 (69.2 to 61.3), returning to levels seen in early 2023 and 2022.

believe their business is in good health, stable from the previous quarter’s levels, and consistent with the previous year.

of all small businesses agree it is challenging to keep up with existing employees’ salary expectations.

MANUFACTURING PMI

Contracted Throughout 2023 After 30 Months of Consecutive Growth

The 2023 U.S. manufacturing sector experienced the longest stretch of contraction since the Great Recession.

Nationwide UAW strikes at Ford Motor Company, General Motors, and Stellantis assembly plants likely affected the purchasing and supply chain networks just as the Manufacturing PMI reached a 2023 high of 49.0.

believe the U.S. economy is in good health, down eight percentage points from the previous quarter, but similar to readings from late 2022 and early 2023.

of those who have searched for talent in 2023 say it is hard to find candidates with the experience or skills their business needs.

MANUFACTURING PMI ®

of small businesses say they plan to offer more flexible working hours over the next year to attract new talent.

EDUCATION AND TALENT

Michigan Voter Poll

Voters Question Four-Year Degree Value But Support Additional Education, Training After High School

Only 27.5% of Michigan voters say a four-year degree was worth the money. However, 80% support state financial aid for two additional years after high school for skills training, community college, or college for every student in Michigan.

90% of Michigan voters aged 18-29 with only a high school diploma are open to an additional two years of free education or training.

Source: Detroit Regional Chamber and the Glengariff Group Inc., March 2023 and May 2023

EDUCATIONAL ATTAINMENT

Detroit Region Lags Peers and Nation in Educational Attainment Despite 3.1 Percentage Point Gain

The Detroit Region’s educational attainment increased by 3.1 percentage points from 2018 to 2022, continuing to lag peer regions and the national average.

Among working-age adults in the Region, 492,000 have some college credit but no degree, which is the highest share (22%) among peer regions.

EDUCATIONAL ATTAINMENT

Accenture and the Michigan Women’s Commission hosted Gov. Gretchen Whitmer for the launch of the Women in Apprenticeships roundtable series. Photo courtesy of Accenture.

Michigan’s December 2023 Rate Reached 14-Year High of 62.2%

Michigan’s labor force participation rate improved by 2.5 percentage points year-over-year in December 2023, but sits in the bottom third of the nation, ranking 39th among states in 2022.

JOB POSTINGS S

Fall 39% Year-Over-Year as Labor Demand Cools

Regional job postings have declined more than 53% from March 2022, a peak of more than 234,000. In December 2023, job postings reached a low of almost 110,700, declining 39% year-over-year.

The health care industry remains the Detroit Region’s largest hiring industry, with registered nurses being the top occupation in demand.

JOB POSTINGS

Detroit Region

TOP JOB POSTINGS BY OCCUPATION

REGISTERED NURSES

37,280

RETAIL SALES

22,739

Source:

TOP JOB POSTINGS BY INDUSTRY

HEALTH CARE AND SOCIAL ASSISTANCE

106,623

ADMINISTRATIVE AND SUPPORT; WASTE MANAGEMENT AND REMEDIATION SERVICES

75,020

RETAIL STORE MANAGERS

15,873

RETAIL TRADE TRUCK DRIVERS

13,823

PROFESSIONAL, SCIENTIFIC, AND TECHNICAL SERVICES

72,366

65,575

SOFTWARE DEVELOPERS

13,260

MANUFACTURING

62,152

REMOTE WORK AND DAILY DOWNTOWN WORKERS

Downtown Worker Rates Continue to Greatly Lag Behind Recovering Visitors Rate

According to the Downtown Detroit Partnership, 2023 trends showed a continued increase in visitation, bolstered by the return of significant inperson events that drew large numbers.

Nationally, Gallup has reported the trends in work flexibility are here to stay according to leaders of large companies. Five in 10 remote-capable employees are working hybrid, with another three in 10 exclusively remote and two in 10 working entirely on-site.

Regional Office Vacancy Rates 2.1 Percentage Points

Below the Nation

The Detroit Region’s office vacancy rates remain high in 2023, increasing 2.7 percentage points since 2019. Industrial vacancy rates held steady at 3.8%, signaling a demand for industrial spaces.

Growing Our Population

Michigan’s House

is On Fire, said Sandy K. Baruah on the severity of the state’s population crisis.

In 2023, the State of Michigan created the Growing Michigan Together Council to support the state’s population growth and become a top-10 growth state by 2050. The Council released a report with recommendations to address these challenges in December 2023.

The Council’s Three-Element Cycle of Virtuous Growth

Develop an economic growth plan that establishes Michigan as the innovation hub of the Midwest and puts the state in the top 10 for median income

Create a lifelong K-14 education system that makes the state an education leader

Foster thriving, resilient communities that attract young talent and improve net talent migration

Today Michigan Ranks:

49th in Population Growth

Population increased 1% compared to 18% nationally from 2000 to 2020.

Source:

37th in Median Household Income

The average household income was $66,986 in 2022, or 90% of the national average ($74,755)

35th in Educational Attainment

39th in Labor Force Participation

51.1% of 25-64-yearold Michiganders have a postsecondary degree or credential, lagging behind the 2022 national average of 54.3%

Michigan’s labor force participation rate (61.6%) was 1.9 percentage points below the national average (63.5%) in 2022.

Let’s Detroit hosted a networking event and panel focused on women leading in tech and provided an opportunity for talent in the area to learn more about regional careers in the high-tech industry. Photo courtesy of Let’s Detroit.

With more than 4.3 million people in the Detroit MSA and nearly half of Michigan’s population concentrated in the 11-county Detroit Region, the Region plays a vital role in becoming a top state by 2050. But where does it stand today? Benchmarking the Detroit MSA to 19 other peer and aspirational regions to key indicators can inform where the Region can improve to meet the Council’s Three-Element Cycle of Virtuous Growth.

Detroit Plays a Vital Role in Becoming a Top State by 2050

Peer Region Comparisons

Michigan Voter Poll

26% of Michigan Residents Aged 18 to 29 Years Old See Themselves Living Somewhere Other Than Michigan in the Next Decade

Fundamentals such as housing costs, reliable infrastructure, low crime rates, affordable higher education, and thoughtful placemaking emerged as decision-making factors for Michigan’s young residents when considering where to locate. Getting those factors right is integral to improving Michigan’s competitiveness and attracting and retaining population.

RACIAL JUSTICE AND ECONOMIC EQUITY

POPULATION BY RACE AND ETHNICITY

In 2022, the Detroit Region’s population was 65% white residents, with Black or African American residents accounting for 21% and Latino or Hispanic and Asian residents at 5% each.

The Region has a higher share of Black or African American population compared to the national share of 12%.

DATA NOTE: Census Classification Changes Integrated in 2024 Report

In 2020, the U.S. Census Bureau broadened options for respondents to identify their race and ethnicity to reflect a more complete picture of the U.S. population. Due to the significant changes, comparisons to previous years will not be included in this report.

SHARE OF POPULATION BY RACE AND ETHNICITY

Detroit MSA

Total Population

4,345,761

5% Asian

21% Black or African American

5% Hispanic or Latino

Source: U.S. Census Bureau, 2022 American Community Survey 1-Year Estimates

Note: Hispanic or Latino are of any race. Percentage does not add to 100%.

65% White

7%

Two or More Races

2%

Some Other Race

Outdoor recreational resources like the Dequindre Cut create community spaces and attract diverse audiences for events like Detroit Harvestfest.

Photo courtesy of the Detroit Riverfront Conservancy.

EDUCATIONAL ATTAINMENT

Stark Disparities Persist in Educational Attainment

Among Racial and Ethnic Groups

Detroit Regional Chamber Educational Attainment Goal: 60% Attainment by 2030 and Halve the Racial Equity Gap Associate Degree or Higher (Including Short-Term Credentials)

HOMEOWNERSHIP RATE

Black Homeowners and Buyers Have Disproportionately Higher Denial Rates, Lower Homeownership Rate

CENTER ON BLACK VOICES PARTNERSHIP

In 2023, the Detroit Regional Chamber and the Gallup Center on Black Voices released the Detroit Resident Voices Survey Report, highlighting Detroiters’ daily experiences and perceptions. The survey is designed to elevate issues central to Detroiters’ quality of life and provide insights that can be used in the public, private, and philanthropic sectors to develop new programs and initiatives to identify and close equity gaps. The Detroit Resident Voices Survey is part of the Chamber’s Racial Justice and Economic Equity Initiative, reflecting its commitment to generating new data and research on racial disparities and the experiences of Detroit’s Black community.

Detroit Resident Voices Survey Report: Key Findings

Wellbeing

Detroit city residents are less likely than residents of the suburbs to rate their lives highly enough to be considered thriving.

Education and Employment Opportunities

Job availability satisfaction varies with substantial gaps among city and suburban residents.

Health and Healthcare

Half of Detroit city residents are satisfied with the availability of quality health care services in their area, compared to three-fourths of Americans overall.

Social Capital and Social Opportunities

Detroiters are not optimistic about social cohesion in their neighborhoods but feel like they have social networks to rely on.

To inquire about the report’s findings and future efforts from the Detroit Regional Chamber and the Gallup Center on Black Voices, please contact:

Marnita Harris

Vice President of Racial Justice and Economic Equity

Detroit Regional Chamber

mharris@detroitchamber.com

detroitchamber.com/equity

Neighborhood Environment and Living Conditions

Access to services and amenities is considerably higher among Detroit suburban residents than among Detroit city residents.

Crime and Policing

Most Detroit city residents would welcome closer police community relations.

40% of Detroit city residents give life evaluations that classify them as “thriving”

39% of Detroit city residents are satisfied with the availability of good jobs

51% of Detroit city residents are satisfied with the availability of quality health care in their area

35% of Detroit city residents agree that people in their community care about each other

27% of Detroit city residents have easy access to extracurricular activities for children and teenagers

59% of Detroit city residents would like the police to spend more time in their area

52% Detroit suburban residents

72% Detroit suburban residents

76% United States

68% of Detroit city residents have relatives or friends to count on in times of trouble

61% Detroit suburban residents

30% United States

INFRASTRUCTURE AND THE ECONOMY

Michigan received an overall grade of C- on the 2023 Michigan’s Infrastructure Report Card, the same rating as the national infrastructure report card. Despite improving from the previous report’s D+ rating in 2018, infrastructure maintenance and age remain challenges, like other states throughout the Midwest. Michigan continues to enact an efficient and judicious infrastructure improvement plan in response to these factors, with commitments from the Bipartisan Infrastructure Law and Inflation Reduction Act.

The Innovate Mound project, located in Macomb County, has reached completion as one of the most technologically advanced roadways in the U.S. The project to reconstruct this modernized roadway was led by the Macomb County Department of Roads with HNTB Corporation.

Photo courtesy of HNTB.

ROAD QUALITY AND FUNDING

One-Third of Regional Roads in Poor Condition , Steady

From Previous Year

Despite a 26% increase in road funding since 2018, the Detroit Region’s road conditions still have a long way to go, with only 24% reported in good condition – a one percentage point increase from 2021.

2022 PAVEMENT CONDITIONS

Detroit Region

Good

Fair

Source: Michigan Transportation Asset Management Council Reporting Dashboard

Poor

Down 41% in Region, Compared to 2019

Ridership remains well below 2019 levels, despite annual increases since 2020, including a 16% increase in 2023.

Transit Ridership

Detroit Region November Year-to-Date

Michigan Voter Poll

Michigan Voters Want Leaders to Get the Fundamentals Right DDOT and

990,000+ Trips

410,000+ Trips

66% of Michigan voters support investment in education and infrastructure over cutting taxes.

Nearly 50% of Michigan voters consider the state’s infrastructure to be a disadvantage.

Source: Detroit Regional Chamber and the Glengariff Group Inc., December 2023

PUBLIC TRANSIT RIDERSHIP

All Modes, Detroit Region

EXPORTS

Remain Down 1.6% Over Pre-Pandemic Levels in the Detroit Region

Detroit Region’s export value is ranked 10th among all U.S. metropolitan areas, decreasing over the past decade.

Transportation equipment exports from the Detroit Region lead the nation at $23.4 billion, nearly matching pre-pandemic levels. However, it steadily decreased from $36.6 billion, or 36%, a decade earlier in 2012.

Detroit Metropolitan Wayne County Airport passenger amount grew 12% in 2023 compared to 2022, despite being down 15% of pre-pandemic levels. #1

Detroit

Wayne County Airport is ranked the #1 mega airport in J.D. Power 2023 North American

ELECTRIC VEHICLE (EV) LANDSCAPE

Despite Public Perception, EV Sales Continue to Grow

The U.S. market had 60+ battery electric vehicle (BEV) models in 2023, up from 12+ in 2020. EV sales grew over 50% in 2023 - the fastest growing segment in the U.S. market.

Michigan’s 4% EV market share is still significantly lower compared to leaders like California (26%), Washington DC (19%), Washington (18%), and Oregon (15%).

TOP

1 Georgia 18.9% $22.0B

2 Michigan 18.8% $21.9B

3 North Carolina 15.4% $17.9B

4 Indiana 9.5% $11.1B

5 Tennessee 9.5% $11.0B

CHARGING INFRASTRUCTURE

Jolting 89% Increase in Michigan’s Charging Infrastructure

24th in public EV charging stations per capita in Michigan in 2022, up from 32nd in 2021.

2,900+ publicly accessible charging ports with stations up 89% since 2018.

EVs Have Become a Political Issue, Not a Business or Economic Issue

Opinions on the EV shift continue to differ sharply along party lines. Among the 46% that are supportive of the shift to EVs, 69% identify as Democrat and 20% as Republican.

Further, only 18% believe the shift to EVs is due to consumer demand and market forces, while 71% believe it is due to government actions or pressure from environmental activists.

Source: Detroit Regional Chamber and the Glengariff Group Inc., March 2023

Michigan Voter Poll

2023 UAW CONTRACT NEGOTIATION IMPACT

Beyond ongoing economic impacts, the strike inflicted damage on Michigan’s global competitiveness and business attractiveness.

$10.4B IN DIRECT COSTS OF THE UAW STRIKE

in lost earning on lost production. on lost wages and earnings to supplier companies and workers.

Source:

in losses to dealers, customers, and ancillar y auto industr y workers.

CHALLENGES AHEAD

Long-term cost consequences

Uncertainty regarding consumer demand in EV adoption and overall sales

Economic health of Tier 2 and 3 suppliers

Increasing R&D investments in EV and AV products

STRIKE IMPACT

Days of U.S. Production Affected

Workers

Different Facilities

SUPPORT FOR UNIONS REACHED HIGHEST POINT SINCE 1965

I truly believe that what is at stake here is the future of the domestic auto industry, the future of the industrial Midwest, and the future of good-paying manufacturing jobs.

JIM FARLEY President and Chief Executive Officer, Ford Motor Company

To learn more about additional Detroit Regional Chamber research and data resources, visit detroitchamber.com/research.