DRP Annual Report 2023

Page 1

2023 ANNUAL REPORT
Board of Directors 2 From Our Chair 3 From Our President & CEO 4 Strategic Trade Missions 12 International Highlights 13 In-Market Visits 15 Project Wins 17 Goals 7 Introduction 1 Mission, 5 Principles & Pillars Grow the Region 11 02 01 03
OF CONTENTS
TABLE
Verified Industrial Properties 27 Global Epicenter of Mobility 29 Media 32 Project Leads 33 Headlines 34 Support the Region 25 Market the Region 31 Awards & Acknowledgements 35 04 05 06

DID YOU KNOW? Detroit is just one of the 348 communities in our region, each with its own unique character and qualities.

01
INTRODUCTION

The Detroit Regional Partnership is fortunate to have the finest corporate, civic, and philanthropic leaders in the nation on its Board of Directors. Thank you for your continued leadership and commitment to building a more prosperous and equitable region.

Board of Directors

Gerry Anderson (Chairman)*

Former Chairman and CEO, DTE Energy

Sandy Baruah

President & CEO, Detroit Regional Chamber

David Coulter

Oakland County Executive

Matt Cullen*

Chairman, JACK Entertainment

David Dauch*

Chairman & CEO, American Axle & Manufacturing

Tina Freese Decker*

President & CEO, Corewell Health

Mike Duggan

Mayor, City of Detroit

Warren C. Evans

Wayne County Executive

Mark Hackel

Macomb County Executive

Chris Ilitch*

President & CEO, Ilitch Holdings

Chip McClure

Managing Partner, Michigan Capital Advisors

Darin McKeever*

President & CEO, William Davidson Foundation

Jerry Norcia

Chairman, President & CEO, DTE Energy

Rip Rapson*

President & CEO, The Kresge Foundation

Terry Rhadigan*

Vice President, Global Communications & Corporate Giving, General Motors

Robert G. Riney*

President & CEO, Henry Ford Health

Ray Scott*

President & CEO, Lear Corporation

La June Montgomery Tabron*

President & CEO, W.K. Kellogg Foundation

Ray Telang

Michigan Managing Partner, PwC

Gary Torgow*

Chairman, Huntington Bank

Kylee Mitchell Wells*

Executive Director, Southeast Michigan, Ballmer Group

Ridgway White*

President & CEO, Charles Stewart Mott Foundation

*Also a member of the Regional Leadership Circle

Regional Leadership Circle

Kofi Bonner

CEO, Bedrock

Steve Davis

Michigan Market President, Comerica Bank

Bud Denker

President, Penske Corporation

Dave Egner

President & CEO, Ralph C. Wilson Jr. Foundation

Daniel J. Loepp

President & CEO, Blue Cross Blue Shield of Michigan

Brian F. Rich

Senior Vice President & Chief Customer Officer, CMS Energy & Consumers Energy

Simon Whitelocke

Vice President, ITC Holdings Corp. & President, ITC Michigan

02

FROM OUR BOARD CHAIR

Our Commitment to the Greater Good Shines Through.

Few metro areas can match the passion we have in the Detroit Region.

It’s the differentiator that sets us apart. However, we haven’t always had the vehicle needed to capitalize on that commitment to our home region, and therefore haven’t always performed as we should in business attraction.

We launched the Detroit Regional Partnership in 2019 with the firm belief that we have the assets to be one of the most dynamic, innovative regions in the world. We built the DRP with the understanding that if we were singularly focused on promoting the region domestically and internationally, we would win more than our fair share of jobs and investment. We set a clear but ambitious goal of becoming one of the most vital, prosperous regions in the country by 2030.

Five years later, we are well on our way. We have a best-in-class nonprofit business development and attraction organization competing every day to win important regional projects. We have a team of economic development professionals working diligently to ensure that corporate decision-makers understand the business advantages of locating here. Having attracted more than 100 projects, 33,000 jobs, and nearly $9 billion in investment so far, the numbers in this report speak for themselves.

This success, however, would not have been possible without your support. Amid all the assets that we have, what stands out the most to me is the passion of our regional leaders and their commitment to the greater good. I would put our civic, corporate, and philanthropic leadership up against that of any other in the country, and I am excited about what we are accomplishing together.

Under your leadership, the DRP has united our region in pursuit of our goals. We are rallying around our shared commitment to doing what’s right and our passion for our home region. We are thankful for your continued leadership and look forward to creating a more vibrant and prosperous Detroit Region with opportunities for everyone within our 11 counties.

Sincerely,

INTRODUCTION 03

FROM OUR PRESIDENT & CEO

Unprecedented Change Presents Unprecedented Opportunity.

These times of change and rapid technological development present an extraordinary opportunity in the competition to define how the world will move throughout the 21st century. With your continued support, we could not be more optimistic about what lies ahead for our Region.

While our core mission of attracting jobs and investment from other states and around the world will not change, our tactics must always adapt. The DRP was created to capitalize on these moments as global economic trends shift so that we remain a destination and launching pad for future innovators. Recently, we’ve developed key programs such as the Global Epicenter of Mobility (GEM) and Verified Industrial Property (VIP by DRP) programs that serve our core mission but are nimble enough to meet market trends as they change.

As we look to the future, there are several realities that will drive our work to ensure we deliver the best return on your investment and continue to position our Region ahead of the competition. Michigan’s global mobility leadership will continue to face stiff competition.

The EDA made a substantial $52 million investment, placing a bet on the Detroit Region to spearhead the mobility revolution through GEM. We will use our global pole position and renowned mobility assets to continue to lead in the mobility space.

Investment in mobility will remain high as clean energy innovation continues. The mobility revolution and move to Industry 4.0 presents a unique and lucrative opportunity, including clean energy. We will continue to tailor our business development strategy to capitalize on these trends.

Creating economic equity is morally right and will lead to a more resilient economy. Increasing equity fuels innovation and prosperity. Everything we do at the DRP will be viewed through an equity lens as we work to attract jobs and opportunity for all.

The future is bright thanks to regional leaders like you.

Working together as One Region, we have a bright future and are increasing prosperity. However, we could not do this without your continued leadership and support – and for that, we are thankful.

Sincerely,

04

DID YOU KNOW? Our workforce has the second largest concentration of engineering talent and the most industrial and commercial designers in the U.S.

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MISSION PRINCIPLES & PILLARS

The Detroit Region will be among the most prosperous and inclusive regions in the nation by 2030.

MISSION
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GUIDING PRINCIPLES

At the DRP, each decision we make is driven by our guiding principles. They provide a strategic foundation as we market, grow, and support the 11-county Detroit Region.

Robust Growth.

Accelerate job growth through 2030.

Jobs for All.

Attract jobs for all skill levels across the region.

Deep Prosperity.

Focus on inclusive economic development activities.

Regional Impact.

Drive a regional ethos in our community and be regionally focused.

MISSION, PRINCIPLES & PILLARS 07

Market the Region Grow the Region Support the Region STRATEGIC

Promote the Detroit Region as a world-class business location primed to support key industries and transformational projects.

Drive sector-based domestic and international business attraction and site readiness programs that grow investment and jobs in the Region.

Advance regional competitiveness by delivering compelling research that demonstrates the Region’s business advantages and guides economic development strategy.

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PILLARS

Four years and 102 projects into our 10-year goal... On track to exceed 2030 goals.

MISSION, PRINCIPLES & PILLARS 09

GOAL: $10B

$8.6B

In new investment + $2B in construction supported

GOAL: 12k

7k

Pathway jobs created, +4k supported, $69.4k average salary

GOAL: 50k

33k

GOAL: $2B 2020-2023

Jobs created and 11k more supported

$2.3B

In new payroll and $938M more supported

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DID YOU KNOW? The Detroit Region is centrally located with nearly half of the U.S. and Canadian populations within a 10-hour drive.

GROW THE REGION 03

STRATEGIC TRADE MISSIONS TO KEY MARKETS

150k

6

15

200+

MILES STATES COUNTRIES COMPANIES

In 2023, the DRP strengthened its global and national business connections, promoting the Detroit Region as a prime investment destination. International and domestic trade missions are selected based on potential growth, company interest, and market trends that align with the DRP’s target industries.

12

Traveling with the Governor to Strengthen Economic Ties with Japan

The Detroit Regional Partnership joined Governor Gretchen Whitmer and the Michigan Economic Development Corporation to meet with key Japanese leaders and strengthen the state’s relationships with mobility, automotive, and advanced manufacturing companies. The DRP also presented at a Japanese External Trade Organization (JETRO) members event “Ecosystem Builders”, highlighting the Region’s leadership in future mobility and holding 11 meetings with active prospects that are interested in the Detroit Region.

With this being the first trip by a Michigan governor to Japan since 2017, the DRP was honored to be invited to participate in the Michigan Delegation with economic developers from around the state and attend the Midwest US Japan Association Event.

Tapping into South Korea’s Battery Innovators

With South Korea continuing to emerge as a global leader in EV battery technology, the DRP visited the country in March and November, connecting with 21 companies. By attending the InterBattery Show — Korea’s leading battery exhibition featuring more than 500 companies — the DRP continued to foster stronger relationships in this innovation-rich country.

GROW THE REGION 13
INTERNATIONAL HIGHLIGHTS

Doubling Outreach with Largest Trading Partner

Based on proximity and a lucrative legacy trading relationship, Canada remains a top priority market for the Detroit Region. This past year, the DRP traveled to Canada three times and held 50 meetings with companies, doubling its total from 2022 while strengthening its connections with the Region’s most important trading partner.

Making Connections in Europe’s Leading Mobility Market

With Germany serving as the Detroit Region’s largest source of foreign direct investment and a global mobility innovator, the DRP visited the country twice, meeting with more than 30 companies primed to expand and invest in other markets. Stops included two of the world’s premier global mobility shows: the IAA Mobility Show in Munich and The Battery Show Europe in Stuttgart.

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Promoting the Detroit Region as the Premier Mobility Destination

Attracting international companies to the Detroit Region is critical to strengthening and expanding our innovative mobility and automotive industry and ensuring the jobs of the future are created in the Region.

Working with partners including the Michigan Economic Development Corporation (MEDC), MICHauto, mCity, Newlab, and many others, the DRP hosted 10 international delegations while promoting the Region as the premier mobility destination to key leaders and decision-makers from countries primed to invest and expand in North America.

IN-MARKET VISITS
GROW THE REGION 15

Showcasing Innovation to German E-Mobility Companies

Promoting Investment Opportunities to Japan Mobility Firms

Working with the German American Chamber of Commerce, nine German mobility companies visited the Detroit Region to learn about the emerging e-mobility scene and connect with leading automotive companies and exciting startups.

Partnering with the Japan External Trade Organization (JETRO), the DRP hosted over 30 leading Japanese mobility firms, reinforcing partnerships between companies and communities in the Region. JETRO is Japan’s official trade agency with long-standing relationships in the Detroit Region and critical to creating investment opportunities with Japanese companies.

Broadening International Business Relationships

European Automotive Companies

Showcase Technologies in Detroit Market

Nearly 30 auto suppliers and mobility companies from Austria, Belgium, and Germany visited the Detroit Region’s mobility ecosystem to showcase their technologies to OEMs and make business connections as they look to expand. Working with Agoria, a large Belgian-based business cluster association, the DRP worked to generate leads and build relationships with the participating companies and foreign trade agencies.

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OUR SUCCESS CONTINUES IN 2023

1,272 Leads Generated

226 New Projects

102 Prospect Visits

50+ Trade Mission, Delegations + Industry Events

22 Projects Won

Attracting $1B+ Investment & High Wage Jobs

In 2023, the Detroit Regional Partnership secured 22 projects with a combined investment exceeding $1.2 billion. These projects are expected to generate over 3,100 jobs, with an average wage exceeding $100,000. This aligns with the DRP’s mission to provide high-quality job opportunities for the 2.7 million workers living in the Detroit Region.

Construction Impact

Seven of the DRP’s 22 projects involve construction activities that support the employment of over 6,000 construction workers.

$1.2B Investment

3,212 Jobs Created

$110k Average Wage of New Jobs DIRECT IMPACT

1,256 Pathway Jobs Created

$354.2M New Payroll

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Total Economic Impact for the Region

Economic development is a team sport. No one city, county, or organization can do it alone. Collaboration with public and private partners is critical to the DRP’s success and essential to attracting jobs and investment to our 11-county Region.

Partners in Prosperity 10,0292,135 $759.3M $445M $75.7K 1,649 6,454 Jobs Created Pathway Jobs Created New Payroll Supported Payroll Pathway Jobs Supported Average Wage of New Jobs Jobs Supported $2.4B New Investment $1.0B New Construction Output Supported 18

Capitalizing on Clean Energy Investment and Innovation

As the world seeks clean energy solutions and innovation, companies are investing in places where they can develop and scale clean energy and mobility technologies. The DRP continues to engage and attract companies looking to invest in this rapidly expanding industry sector and bring them to the Detroit Region.

DETROIT, WAYNE COUNTY

Decarbonizing Mining as the World’s 4th Largest Iron Ore Producer

As one of the world’s largest iron ore producers, Fortescue’s efforts to develop a zero-emission fleet for heavy machinery is a major development in efforts to create a carbon-free future. The Australiabased Fortescue is investing $232 million in the Detroit Region to launch an advanced manufacturing center for automotive and heavy industry batteries, hydrogen generators, fast chargers, and electrolyzers, which is expected to create 600 jobs. This project reinforces the connections between mobility and clean-energy innovation.

DETROIT, WAYNE COUNTY

Curbing Energy Usage in Buildings Through Innovative Windows

Backed by Bill Gates’ Breakthrough Energy Ventures, LuxWall is working to reduce energy demand usage in buildings through its unique vacuum-insulated glass – a key innovation in the effort to curb global warming. After establishing an R & D and pilot production facility in Ypsilanti in 2022, LuxWall is expanding to two new manufacturing facilities in Michigan, including one in the City of Detroit. The expansion in Detroit is expected to create more than 342 jobs and $177 million in investment.

GROW THE REGION 19

PLYMOUTH TWP, WAYNE COUNTY Accelerating Michigan’s Clean Energy Transition at New Gigafactory

Hydrogen-based companies offer promising innovations in expediting the transition away from fossil fuels, making Nel’s new gigafactory a major win for Detroit Region’s role in clean energy mobility technology. The Norwegian company is building a new 507,000-square-foot facility, which is expected to create 517 jobs and $400 million in investment. As the company produces electrolyzer technology for green hydrogen production, it has the potential to play a key role in accelerating Michigan’s clean-energy transition.

GRAND BLANC TWP, GENESEE COUNTY Building North America’s Largest Hydrogen Storage Manufacturing Plant

French auto supplier Plastic Omnium is investing in two sites as it prepares to produce hydrogen storage systems for medium and heavy-duty zero emissions mobility for a major automaker. The project is expected to create 175 jobs and $170 million in investment and include a 200,000-square-foot facility, which is believed to be the largest hydrogen storage manufacturing plant in North America.

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A Snapshot of Some Exciting DRP Projects

NOVI, OAKLAND COUNTY

New R & D Facility for EV Trucks and Rugged SUVs

AUBURN HILLS, OAKLAND COUNTY

Samsung SDI: South Korean Company

Doubles Battery Manufacturing Space

LIVONIA, WAYNE COUNTY

U.S. Cabinet

Largest
Manufacturer
Expanding Michigan Footprint
$11M $41M $14M 200 368 110 Investment Investment Investment Jobs Jobs Jobs GROW THE REGION 21

AUBURN HILLS, OAKLAND COUNTY

Leading Science Safety Firm Establishes New Testing Center

TROY,

Global

OAKLAND
COUNTY
Engineering Firm Creates First North American R&D Center LIVONIA & OAK PARK, WAYNE & OAKLAND COUNTIES Renovating HQ and Adding Manufacturing Facility $72M $2M $44M 61 196 237 Investment Investment Investment Jobs Jobs Jobs 22

Promoting Detroit as Gateway to U.S.

Detroit Region Chosen by Emerging Companies for First U.S. Presence

STERLING HEIGHTS, MACOMB COUNTY Cutting-Edge Cybersecurity for Naval and Combat Vehicles

A Canadian cybersecurity company serving the automotive and defense industries, Akimbo Technologies created DEFENSA, a first-of-its-kind patented embedded software technology that applies dynamic fault tolerance to driver assistance. By opening operations in Macomb County’s International Landing Zone, the company is primed to benefit from the Region’s strong defense and mobility industry.

International business attraction extends beyond major corporations to embrace smaller companies and tech startups seeking to expand and scale in new markets, particularly the U.S. These projects bring substantial growth potential to the Detroit Region.

ROCHESTER HILLS, OAKLAND COUNTY

French Startup Providing Cutting-Edge Welding Technology to Key Industries

Stirweld, a French startup specializing in friction stir welding equipment for CNC machines is setting up in Rochester Hills as it supplies companies in automotive, aerospace, and metal working industries. Stirweld’s technology is more cost-effective and efficient than traditional welding and offers innovation for major manufacturing environments common in the Detroit Region.

GROW THE REGION 23

DETROIT, WAYNE COUNTY Norway’s wheel.me

Producing World’s First Autonomous Wheels

wheel.me, creator of the world’s first autonomous wheel, has set up North American operations at Ford’s Michigan Central Innovation District. The robotics and Industry 4.0 company — facilitating indoor mobility with smart wheels that move virtually everything without massive capital investment or facility renovation — aims to generate 40 high-wage jobs.

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There have been $28B in Automotive and Mobility investments in the Detroit Region from 2018-2023.

SUPPORT THE REGION 04
DID YOU KNOW?
26

EXPANDING INDUSTRIAL SITE READINESS

VIP by DRP is scaling rapidly to secure more manufacturing projects across the Detroit Region.

Amidst thriving industrial real estate marketing, the DRP is actively expanding its site readiness services to increase the number of development-ready properties across the region, helping secure key mobility and manufacturing projects. Over the next three years, The Verified Industrial Properties (VIP by DRP) program plans to study and ready 120 vacant industrial sites of varying size and geography, investing up to $215,000 per selected site.

SUPPORT THE REGION 27

CREATING INVESTMENT READY SITES

Promoting Brownsfields to Redevelop Iconic Properties

As a region with a storied manufacturing history, our communities are home to a vast number of underutilized or vacant brownfield sites that possess the right infrastructure and nearby workforce to support today’s modern manufacturers. The VIP by DRP program is committed to readying brownfield sites as a key focus of its program, with efforts already underway to support and promote iconic sites, such as Flint’s Buick City and Trenton’s McLouth Steel.

The DRP’s Vice President of Real Estate Shannon Selby speaks about marketing brownfield sites at the National Brownfields Training Conference in August in Detroit. She was joined on the panel by RACER Trust’s Patricia Spitzley (left) and Steven Black, and the MEDC’s Paul O’Connell (far right).

CITYMONITOR.AI

City Monitor: From Flint to Detroit, Changing the narrative about brownfields in Michigan

CLICKONDETROIT.COM

Old manufacturing eyesore receives $300M investment

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IN THE MEDIA

Global Epicenter of Mobility Delivers Results

ACHIEVEMENTS

The Global Epicenter of Mobility (GEM) is rapidly building its operations and projects amid the transition to next-generation electric, autonomous, and fully connected vehicles. Led by the DRP and consisting of six key regional initiatives, GEM aims to create a smart, secure, sustainable, and inclusive advanced mobility industry. It is designed to accelerate economic growth by building around the Detroit Region’s unrivaled mobility assets and ensuring no company, employee, or community is left behind as the automotive and mobility industry evolves.

Closing Economic Equity Gaps

In 2023, 74% of the companies served by the Supply Chain Transformation Center were from Historically Excluded Communities and the Michigan Founders Fund placed 14 summer interns with HEC backgrounds.

In 2023, project partners served more than 100 different mobility-related businesses throughout the Detroit Region and assisted more than 300 jobs in internal combustion engine to electric vehicles.

The Mobility Accelerator Innovation Network has served 137 companies, which have created nearly 70 jobs, obtained 86 patents, drawn $206M in venture capital, and commercialized six products.

Transforming Talent Amid Historic Change Driving Mobility Innovation and Entrepreneurs 01 02 03
SUPPORT THE REGION 29

We are always hoping that we are making the right bet, at the right time, at the right place – and I sincerely believe we’ve done that here (with GEM).

Cristina Killingsworth, Deputy Assistant Secretary of Policy and External Affairs U.S. Economic Development Administration

GEM hosted its project partners for an annual meeting in November.

North American International Auto Show

The DRP and Global Epicenter of Mobility team hosted an AutoMobili-D booth, promoting their work to drive economic development, growth, and prosperity in the Detroit Region.

This is where the action is ... If you need a single place to be, Detroit has the entire infrastructure and understanding of what the automotive world is.

North American Head of Transportation & Automotive Business, TÜV SÜD

Detroit Regional Partnership President and CEO Maureen Donohue Krauss moderates a panel of mobility executives at the North American International Auto Show’s first-ever Global Mobility Forum. Joining Krauss was TÜV SÜD’s Jonathan Drew, Quantron’s Rick Haas, and Fortescue WAE’s Judith Judson.
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DID YOU KNOW? Over the last four years, our organization has also supported $2B+ in new construction projects.

MARKET THE REGION 05

The DRP promotes the Detroit Region as a world-class business location

Those efforts include showcasing the Region’s business assets, as well as generating business prospects. Throughout the year, the DRP’s marketing team raises brand awareness for the Region and the organization through targeted marketing campaigns, earned and social media, advertising, and events.

25k 267k 1,700

Website Visits Social Media Impressions

Earned Media Mentions

FOLLOWER GROWTH

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+587% +82% +56% +8%

GENERATING PROJECT LEADS

The DRP markets the Detroit Region through a brand awareness email campaign designed to get potential prospects interested in the Region and to engage with a business development consultant.

2023 Campaign Statistics

66%

74 11.5k+

Lead Growth Countries Email Contacts

MARKET THE REGION 33

CRAINSDETROIT.COM

Metro Detroit’s diverse talent is an attractive sales pitch to companies.

HEADLINES

CRAINSDETROIT.COM

Maureen Donohue Krauss on how Michigan is fighting to protect its manufacturing prowess.

“As the conversation with prospective companies evolves into deeper discussions and site visits, our first job is to tout the business climate and talent strengths of the region to help close the deal. That’s the ‘sell’ and it’s critical to landing projects.”

Sarah Gregory, Director of Talent Solutions Detroit Regional Partnership

FREEP.COM

Detroit auto show gives the world’s business leaders a chance to talk shop.

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AWARDS & ACKNOWLEDGEMENTS 06 DID YOU KNOW? There are 280,721 manufacturing jobs across 7,489 business locations in our region as of 2022.

AWARDS & RECOGNITIONS

Silver Award for Special Website | VIP Program

International Economic Development Council

2023 Excellence in Economic Development

C2ER Community, Economic, and Workforce Research Award for Website

A Best Place to Work in 2023

Crain’s Detroit Business recognized the Detroit Regional Partnership as the 11th best place to work among companies with 15 to 49 employees in Southeast Michigan.

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A Best-in-Class Team

Best-in-class economic development requires a world-class team. Several DRP teammates earned accolades in 2023, reflecting their thought-leadership and expertise.

Maureen Donohue Krauss, President and CEO

Fellow Member Status, International Economic Development Council

Angela Ladetto, Senior Vice President, Marketing and Business Intelligence

Chair of The Council for Community and Economic Research (C2ER)

Alan Weber, Managing Vice President Business Development

Conboy Award from Michigan Economic Developers Association, Appointed MEDA President

Jessica Worley, Senior Manager of Research and Business Intelligence

Economic Research Professional certification from C2ER “Catalyzing Regional Success” white paper

AWARDS & ACKNOWLEDGEMENTS 37
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YOU, INVESTORS & PUBLIC PARTNERS 39 AWARDS & ACKNOWLEDGEMENTS CORPORATE
THANK
40 FOUNDATION PUBLIC
1001 Woodward Avenue, Suite 800 Detroit, Michigan 48226 313.518.6500 detroitregionalpartnership.com @DetroitRegionalPartnership @DetroitRegional @DetroitRegionalPartnership Detroit Regional Partnership

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