Metro Detroit - Economy

Economy

Main article: Economy of metropolitan Detroit See also: List of companies based in Michigan

The region's nine county area with its population of 5.3 million has a workforce of about 2.6 million with about 247,000 businesses. In May 2012, the metro area unemployment rate was 9.9 percent. Metro Detroit has made Michigan's economy a leader in information technology, biotechnology, and advanced manufacturing; Michigan ranks fourth nationally in high tech employment with 568,000 high tech workers, including 70,000 in the automotive industry. Michigan typically ranks second or third in overall Research & development (R&D) expenditures in the United States. Metro Detroit is an important source of engineering job opportunities. As the home of the "Big Three" American automakers (General Motors, Ford, and Chrysler), it is the world's traditional automotive center and a key pillar of the U.S. economy. In the 2010s, the domestic auto industry accounts, directly and indirectly, for one of ten jobs in the United States making it a significant component for economic recovery.

Since 2009, GM, Ford, and Chrysler have managed a significant reorganization of their benefit funds structure after a volatile stock market which followed the September 11, 2001 attacks and early 2000s recession caused an underfunding in U.S. pension and benefit funds (OPEB). In 2009, GM and Chrysler emerged from Chapter 11 restructurings with financing provided in part by the U.S. and Canadian governments. For 2010, the domestic automakers have reported significant profits indicating the beginning of rebound.

Metro Detroit serves as the headquarters for the United States Army TACOM Life Cycle Management Command (TACOM), with Selfridge Air National Guard Base. Detroit Metropolitan Airport (DTW) is one of America's largest and most recently modernized facilities, with six major runways, Boeing 747 maintenance facilities, and an attached Westin Hotel and Conference Center.

Detroit is a major U.S. port with an extensive toll-free expressway system. A 2004 Border Transportation Partnership study showed that 150,000 jobs in the Detroit-Windsor region and $13 billion in annual production depend on Detroit's international border crossing. A source of top talent, the University of Michigan in Ann Arbor is one of the world's leading research institutions, and Wayne State University in Detroit has the largest single-campus medical school in the United States.

From the metro area economy, Michigan was second in the U.S. in 2004 for new corporate facilities and expansions. From 1997 to 2004, Michigan was the only state to top the 10,000 mark for the number of major new developments. Metro Detroit is a leading corporate location with major office complexes such as the Renaissance Center, the Southfield Town Center, and Cadillac Place with the Fisher Building in the historic New Center area. Both BorgWarner and TRW Automotive Holdings chose Metro Detroit for their new headquarters. Quicken Loans, Ernst & Young, Ally Financial, Visteon, and OnStar are sources of growth.

Compuware, IBM, Google, and Covansys are examples information technology and software companies with a headquarters or major presence in Metro Detroit. HP Enterprise Services makes Metro Detroit its regional headquarters, and one of its largest global employment locations. The metropolitan Detroit area has one of the nation's largest office markets with 147,082,003 square feet. Virtually every major U.S company and many from around the globe have a presence in Metro Detroit. Chrysler's largest corporate facility is its U.S. headquarters and technology center in the Detroit suburb of Auburn Hills. In decade leading up to 2006, downtown Detroit gained more than $15 billion in new investment from private and public sectors.