Economy of metropolitan Detroit facts for kids

The area around Detroit, Michigan, is a huge place with over 5.9 million people! It's a busy hub with 2.6 million workers and about 347,000 businesses. The main Detroit area, called the Metropolitan Statistical Area, has about 4.3 million people and creates goods and services worth over $200 billion each year.

Detroit is famous as the "automobile capital of the world." Many big car companies have their main offices here. But it's not just about cars! This area is also a leader in new technologies like life sciences, computer tech, and advanced manufacturing. Michigan is actually fourth in the U.S. for jobs in high-tech fields, with 568,000 high-tech workers. This includes 70,000 people in the car industry. The state often ranks high in spending on research and development. Metro Detroit also has lots of jobs for architects and engineers.

Like many places, Detroit has faced some economic challenges. In 2012, the city's unemployment rate was 15.8 percent, but the surrounding suburbs usually have low unemployment. The economy started to get better in 2010.

Real Estate and Business Growth

Michigan has been a top state for new businesses and expansions. From 2007 to 2009, Metro Detroit was fourth in the U.S. for new company locations. The area has a huge amount of office space, like the massive 5,500,000 sq ft (510,000 m²) Renaissance Center and the 2,200,000 sq ft (200,000 m²) Southfield Town Center.

Row houses on John R. Street, renovated as condominiums in 2003

Even with difficulties, the Detroit area's economy has stayed strong. After 2006, the housing market had some tough times, but it started to recover. Experts even predicted Metro Detroit would be one of the strongest housing markets by 2014, attracting buyers from all over. In 2011, Detroit was named the third most affordable big city in the U.S. for housing. It was also one of the top five cities for job growth between 2010 and 2012.

The state of Michigan made big changes to its business taxes in 2011, making it cheaper for companies to operate here. This helped attract more businesses. Metro Detroit is home to successful real estate developers, and some of its suburbs are very wealthy. You can find all kinds of stores, from fancy shops to discount chains.

The Cool Cities Initiative is a plan by Michigan leaders to bring new life to inner cities and downtowns. More people are expected to move to the Detroit-Ann Arbor-Flint area by 2025. Cities like Detroit, with existing buildings and services, are ready for this growth. Many historic buildings in Detroit are being updated and reused.

1001 Woodward in Downtown Detroit, redeveloped into high-rise condominiums

Companies like OnStar, Ally Financial, Compuware, Quicken Loans, and Blue Cross Blue Shield Association have brought more jobs to downtown Detroit. Over $15 billion was invested in downtown Detroit by private and public groups in the decade leading up to 2006. The Detroit Riverfront is also being developed into a beautiful parkway with a $500 million investment.

Young professionals are choosing to live in Detroit's downtown area. A 2007 study found that many new downtown residents are young (ages 25–34) and have college degrees. Some are even moving to the grand homes in Grosse Pointe to be closer to the city. The city is also planning a huge 365-acre (1.48 km²) development along the river, with homes, shops, and businesses. In 2007, CNN Money even called downtown Detroit one of the best big city neighborhoods for retirement.

The Fort Shelby Hotel and the Westin Book-Cadillac Hotel have been renovated, boosting the downtown economy. Cobo Hall, a big convention center that hosts the North American International Auto Show, is also getting a nearly $300 million upgrade.

Money and Banking

View from Campus Martius Park up Woodward Ave., left to right: The First National Building, One Woodward Avenue, the Guardian, The Qube, Greater Penobscot Building, and One Kennedy Square across from the District.

Metro Detroit is one of the top five financial centers in the U.S. It has all of the "Big Four" accounting firms. Many major financial companies have offices here, including Quicken Loans, Ally Financial, Ford Motor Credit Company, Bank of America, and Comerica.

Ally Financial, located in the Renaissance Center, is one of the largest holders of home mortgages in the U.S. Detroit-based Quicken Loans is the fifth-largest home mortgage lender in the U.S. and the biggest online. The area also has many companies that invest in new businesses. General Motors manages its huge pension fund here, which helps fund the area. Detroit's historic Penobscot Building in the downtown financial district is in a special zone with wireless Internet and fiber-optic networks.

In 2011, Quicken Loans moved its main office to downtown Detroit, bringing about 4,000 employees from the suburbs. This was a big step for city planners to help rebuild the historic downtown. Also in 2011, Blue Cross Blue Shield of Michigan moved 6,000 employees to downtown Detroit, with many going to the Renaissance Center.

Technology and Innovation

Metro Detroit is a leader in new technologies like life sciences, information technology, and advanced manufacturing. The area's technology sector is fifth in the U.S. for total jobs and fourth for how many jobs are in this field. In 2010, Detroit became the fastest-growing region in the U.S. for high-tech jobs. Downtown Detroit has a special wireless internet zone, and many tech jobs have moved there.

The Michigan Information Technology Center helps tech companies in the region with education and support. The area also has places called "business incubators" that help new tech companies grow, especially in cybersecurity and border security.

Some big information technology and software companies with a major presence or main offices here include Compuware, HP Enterprise Services, IBM, Google, General Electric, and Unisys. HP Enterprise Services has its regional headquarters here, making it one of its largest job locations globally. In 2009, General Electric announced it would create software at a new advanced manufacturing and technology center in Van Buren Township. Chrysler's largest corporate facility is its U.S. headquarters and technology center in Auburn Hills.

In 2015, Quicken Loans opened a new, modern 66,000-square-foot Technical Center in Corktown. This new building has large server rooms and space for training and offices.

Learning and Research

The Lawyers Club at the University of Michigan in Ann Arbor

Metro Detroit has grown its economy by focusing on new technologies. Michigan often ranks third or fourth in the U.S. for spending on Research & development (R&D). In 2011, Detroit got the first U.S. Patent and Trademark Office outside of Washington, D.C. This helps protect new inventions.

Universities in the metro area provide many talented people for the region. The University of Michigan in Ann Arbor is one of the world's top research institutions. Its schools for engineering, medicine, business, and law are consistently ranked among the best in the U.S. In 2002, the state built the NextEnergy Center near Wayne State University to focus on fuel cell development and other new energy sources.

The area is home to many colleges and universities, including Eastern Michigan University, Lawrence Technological University, Oakland University, University of Detroit Mercy, and Wayne State University.

On the Canadian side of the border, University of Windsor and St. Clair College have partnered with car makers to open high-tech research and training centers.

Manufacturing and Industry

Ford Dearborn Proving Ground (DPG), completed major reconstruction and renovations in 2006.

Metro Detroit is known as the world's traditional car center. It's home to America's "Big Three" automakers: General Motors, Ford Motor Company, and Chrysler. Almost every major car company in the world has an office or design center here. Oakland County's "Automation Alley" has over 1,800 advanced technology companies. Metro Detroit ranks fifth in the U.S. for jobs in the technology sector. There are about 4,000 factories in the area.

Even with competition from other countries, Detroit's car makers have continued to grow as the car market has expanded globally. Manufacturing in Michigan grew by 6.6% from 2001 to 2006. While there was a big economic crisis in 2008 that affected car sales, by 2010, the domestic car makers were making good profits again. The sales of just one Detroit car company can be more than all the top companies in many other big U.S. cities combined!

The Renaissance Center is the headquarters of General Motors.

The Detroit area has many different types of manufacturers and is important for U.S. national security. The United States Army TACOM Life Cycle Management Command (TACOM) is based here, along with the Selfridge Air National Guard Base. The region also has important defense contractors like General Dynamics. Companies like Rofin-Sinar, which makes lasers for industrial use, are also here. Advanced robotics is another growing industry.

Labor force distribution in Detroit by category:
     Construction      Manufacturing      Trade, transportation, utilities      Information      Finance      Professional and business services      Education and health services      Leisure and hospitality      Other services      Government

Detroit's location as a major port means it can handle heavy industry. Marathon Oil Company has a large refinery in Detroit. Lafarge's cement distribution center, built in 2005, has North America's largest cement silo.

Detroit's car makers are also building new types of vehicles, like hybrid cars that use both gas and electricity, and cars that can run on ethanol. General Motors has invested a lot in fuel cell vehicles, while Chrysler is researching biodiesel. In 2002, Michigan created NextEnergy, a group that helps new energy technologies, especially hydrogen fuel cells, become available to the public. In 2009, Michigan and Detroit's car industry received $1.36 billion from the U.S. Department of Energy to make lithium-ion batteries, which are expected to create many new jobs.

Trade and Business Connections

The Greater Detroit Foreign Trade Zone (GDFTZ) was set up in 1981 to help reduce taxes on goods crossing borders and to encourage international trade. In 2011, Metro Detroit was the fourth-largest export market in the United States. The area's excellent expressway system and its status as a major port city make it a great place for global business. There are no toll roads in Michigan.

Metro Detroit is the country's number-one exporting region and its busiest commercial port. Detroit is at the center of the Great Lakes Megalopolis, a huge urban area around the Great Lakes. The Ambassador Bridge, which connects Detroit to Windsor, Canada, is the busiest commercial border crossing in North America. It carries 27 percent of all trade between the U.S. and Canada. More than 15 million people and 10 million vehicles cross the Ambassador Bridge and the Detroit-Windsor Tunnel every year. A study in 2004 showed that 150,000 jobs in the Detroit-Windsor area depend on this international border crossing. There are plans for a second bridge across the Detroit River to help with even more trade and travel.

Many people commute across the Detroit-Windsor border daily. Thanks to trade agreements like NAFTA, it's easier for certain professionals to work in both the U.S. and Canada. For example, many nurses in Detroit hospitals live in Windsor. The Quebec City–Windsor Corridor in Canada, which is 710 miles long, contains over 18 million people.

Getting Around (Transportation)

The Ambassador Bridge, a suspension bridge that connects Detroit with Windsor, Ontario, in Canada. It is the busiest international border crossing in North America in terms of trade volume.

Metro Detroit has a good system for getting around. The Michigan Department of Transportation manages the advanced network of freeways in metropolitan Detroit. Bus services are provided by the Detroit Department of Transportation (DDOT) and the Suburban Mobility Authority for Regional Transportation (SMART). You can even take a bus across the border to Windsor, Canada, with Transit Windsor.

A monorail system, called the Detroit People Mover, runs daily in a 2.9-mile loop around downtown Detroit. Amtrak provides train service to Detroit, connecting it to places like Chicago and Pontiac. Greyhound Bus also offers nationwide bus service from Detroit. There are plans for a new commuter train service that could link Ann Arbor, Detroit Metropolitan Airport, Dearborn, and Detroit's New Center.

Aerial of Detroit Metro Airport (DTW), one of the largest air traffic hubs in the US

As a major U.S. port, Detroit is an important center for transportation and logistics jobs, including aviation, rail, truck, and ship docking facilities. Detroit has a cruise ship dock and passenger terminal. Commercial ships use Michigan's 38 deep water ports, which connect to the Great Lakes Waterway and the Saint Lawrence Seaway.

Detroit Metropolitan Airport (DTW) is one of America's largest and most modern airports. It has six major runways and is a hub for Delta Air Lines and Spirit Airlines. Other commercial airports in the area include Bishop International Airport in Flint and Toledo Express Airport in Toledo, Ohio. There are also smaller airports for charter flights and commercial aviation. One idea for economic growth is an "Aerotropolis," which would use Detroit Metropolitan Airport as a central business area.

The U.S. Department of Transportation has given $244 million for high-speed rail upgrades between Chicago and Detroit. There are also plans for a new, larger rail tunnel under the Detroit River to allow for bigger freight cars.

Fun and Tourism

Tourism in metropolitan Detroit is a big part of the economy, providing nine percent of the area's two million jobs. About 15.9 million people visit the area every year, spending an estimated $4.8 billion. Besides casinos, the most popular attraction is The Henry Ford, America's largest indoor-outdoor museum complex. The Detroit International Riverfront connects the Renaissance Center to parks, restaurants, and hotels with a riverfront walkway.

The region hosts huge events that attract hundreds of thousands to over three million people, like the Windsor-Detroit International Freedom Festival, the North American International Auto Show, and the Motown Winter Blast. The city's Midtown and New Center areas, near Wayne State University, attract millions of visitors to their museums and cultural centers. For example, the Detroit Festival of the Arts draws about 350,000 people.

The area has hosted many major sporting events, including Super Bowl XL and the 2009 NCAA Final Four. Major League Baseball's 2005 All-Star Game and 2006 World Series games were held at Comerica Park. Metro Detroit is one of only thirteen U.S. cities with teams in all four major sports.

The area's 24,000-acre (97 km²) network of Huron-Clinton Metroparks gets about nine million visitors annually. About 5.9 million people live in the Detroit–Windsor region, making it one of the largest metro areas in North America. There's a lot of potential for tourism growth, with many natural lakes and coastal areas that could be developed into resorts. The Detroit River International Wildlife Refuge is also unique, as it's the only international wildlife preserve in North America located in the heart of a major city.

Detroit is a big entertainment hub for the whole region. Casino resorts, major sports venues, and a theatre district are helping to bring new businesses to the city. Detroit is the largest American city to offer casino resort hotels. The MGM Grand Detroit, Motor City Casino, Caesars Windsor (in Canada), and Hollywood Casino at Greektown are the region's four main casino resorts.

Movie studios in the metro area are helping Michigan become a strong player in the film business. Motown Motion Picture Studios (2009) plans to produce movies in Pontiac, creating jobs for over 4,000 people in the area.

Shopping (Retail)

Merchant's row on lower Woodward Avenue

Metro Detroit has many chain stores and large shopping malls, including fancy ones and outlet stores. While some older malls have closed or been updated, new "lifestyle centers" have opened in the suburbs. Several suburban towns like Birmingham, Royal Oak, and Rochester also have their own street-side shopping areas.

Merchant's row along Monroe Street, Greektown Historic District

Within Detroit city limits, you can find many local shops and restaurants, especially in areas like the Lower Woodward Avenue Historic District, Greektown Historic District, and the Renaissance Center. However, the city of Detroit has fewer big chain retailers. A 2007 poll found that almost two-thirds of suburban residents sometimes eat out or go to cultural or sports events in downtown Detroit. The Fairlane Town Center, a large shopping mall in Dearborn, is only about 15 minutes from downtown.

A 2007 report showed that Detroit residents spend about $1.7 billion each year in the suburbs on shopping and services. For a while, big "super-centers" hadn't opened stores within Detroit city limits. But in 2009, the Meijer chain announced it would open its first store in the city at the $90 million Gateway Marketplace. This mall opened in June 2013, and Meijer opened another store in the Old Redford area in 2015.

As of 2009, the main bookstore in the city was the Wayne State University Bookstore, leaving a gap for a major bookstore chain. Many new car dealerships have moved to the suburbs. The number of chain fast-food restaurants in Detroit has also decreased over time.

Grocery Stores

As of 2009, the German supermarket chain Aldi and Michigan-based Spartan Stores were the main grocery chains in Detroit. In 2011, Whole Foods Market announced a new location in Midtown Detroit, which opened in June 2013. Many independent grocery stores serve Detroit neighborhoods. However, a 2009 report from the University of Michigan estimated that Detroit residents spend a lot of money on groceries in nearby suburbs. The report suggested the city could support much more grocery retail space.

As of 2011, many of the supermarkets in Detroit were owned by Chaldean Americans. Metro Foodland is one of the few African American-owned grocery stores in the city. Southwest Detroit has many independent grocery stores, including several Hispanic supermarkets that offer special meats, produce, and tortillas.

News and Entertainment (Media)

Media in Detroit is a big deal, especially for car-related news. Publishers like Gale and Crain Communications have their main offices here. The Detroit television market is the thirteenth-largest in the U.S. Many Canadian viewers also watch Detroit TV stations. These channels include WJBK (Fox), WDIV-TV (NBC), WXYZ-TV (ABC), and WWJ-TV (CBS). Detroit also has the twelfth-largest radio market in the U.S.

Movie Theaters

As of 2015, there was only one movie theater in Detroit city limits showing new movies: Bel Air 10. There are also some independent theaters like the Detroit Film Theatre at the Detroit Institute of Arts, Cinema Detroit in Midtown, and the Redford Theatre.

In 2015, there were 49 movie theaters outside Detroit city limits in the Metro Detroit area, with a total of 522 screens. Many of these show new movies and have stadium seating. These range from the five-screen Ford Drive-In in Dearborn to huge "megaplexes" with 20 or more screens in places like Sterling Heights, Auburn Hills, and Dearborn. Since then, more theaters have opened, including a Cinemark location at Southland Center in Taylor.

You can also find IMAX movies in Metro Detroit at places like The Henry Ford and the Michigan Science Center, as well as in certain auditoriums at AMC theaters.

Important History

Detroit and its car industries played a key role in the Allied victory during World War II. President Franklin Roosevelt even called America the "Arsenal of Democracy" because of its manufacturing power. Henry Ford used his genius for mass production to help the war effort. For example, the B-24 Liberator bomber was crucial. While a normal aircraft plant might make one B-24 a day, Ford showed how to make one every hour! At its peak in 1944, Ford's Willow Run factory produced 650 bombers a month.

The Willow Run factory started being built in April 1941. At the time, it was the largest assembly plant in the world. The first B-24 was completed in October 1942, and production quickly increased. Pilots and crew would even sleep on cots at the factory, waiting to fly the B-24s as they came off the assembly line.

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  Downtown Detroit