New life for Detroit?

“The region’s unique location and capabilities make it a very attractive location to develop into one of the world’s leading international logistics and supply chain hubs."

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The Detroit Regional Chamber and Michigan State University have unveiled a strategic plan to build the region into a global supply chain hub.

“According to the models we’ve developed for the region, by focusing on light and heavy manufacturing and distribution centers we stand to gain upwards of 66,000 jobs increasing economic activity by $10 billion annually,” said David Closs, professor, Michigan State University and co-author of the study.  “However, to achieve the job growth and increased economic activity the region must refine some economic and regulatory policies and enhance communications regarding the unique capabilities the region offers each of the strategic elements.”

Closs said the region offers unique benefits across the following: ability to serve global markets; infrastructure and support capabilities; government regulations; competitive tax climate; availability of human, land, supplier, and financial capital; economic competitiveness and lowest total cost to serve; and, supply chain sustainability.

“The region’s unique location and capabilities make it a very attractive location to develop into one of the world’s leading international logistics and supply chain hubs.  In addition to the geographic advantages, our area has a highly-skilled workforce as well as the infrastructure and assets in place to become a leader in the global supply chain,” said Melissa Roy, senior director, Detroit Regional Chamber.  “By leveraging this position companies can increase the speed of moving goods while decreasing cost across multiple modes of transport; air, sea, rail and truck.”

The study identified the targeted industry sectors for the supply chain hub based on the potential for uniqueness of capability, economic development and job creation within the industry sector and potential sector growth opportunity.  Twelve industry sectors were identified and these sectors were then grouped into three major clusters focusing on heavy manufacturing, light manufacturing and distribution.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

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