DETROIT SURGES: Automation Alley Reports Tech Growth Tops Silicon Valley

March 29, 2014
By: Dave Rogers

Don't write off the Motor City yet!

While many tech hubs are experiencing decline or stagnation, metro Detroit experienced growth in nearly every metric measured, a recent Automation Alley report states.

"This is surely good news and should produce a spin-off effect that will help the mid-Michigan region, especially since Automation Alley stretches from the Detroit area to Genesee County where many from the area work," said one local tech professional.

Key findings of a tech survey and report include:

Tech industry employment in metro Detroit is up 15 percent from the previous year's study, while Silicon Valley shows a 4 percent drop.

Metro Detroit added more than 30,000 tech jobs, while Silicon Valley lost 10,000.

Schools in the metro Detroit region graduated more students in the areas of engineering and engineering technology than any other region in the study, with more STEM graduates and computer science graduates than Silicon Valley.

Michigan leads the nation in the advanced automotive industry, with a concentration of employment in metro Detroit that is 6 times the national average and a concentration in Grand Rapids that is 3.5 times the national average.

Nearly 10 percent of total employment in the metro Detroit area is tech-related.

Hundreds of Southeast Michigan tech industry professionals gathered last Thursday at the Detroit Marriott Troy for Automation Alley's Technology Industry Outlook Luncheon, where the technology business association released its annual Technology Industry Report.

Providing an in-depth analysis of Southeast Michigan's technology economy and its key industries, the report, with data compiled by Lansing-based Anderson Economic Group, benchmarks the Greater Detroit region against 14 other high-tech hubs across the nation.

Automation Alley partners with government entities from the entire Southeast Michigan region, including the City of Detroit and the surrounding eight counties.

"There's a tangible excitement in the air," said Kenneth Rogers, Automation Alley executive director. "New companies are launching. Established companies are reinventing themselves by embracing new technologies. People who left the region years ago in search of opportunity are returning because they've found opportunity again, right here at home."

In addition to providing a progress report for the region -- in terms of job creation, business creation, innovation and education -- the Technology Industry Report also serves as a tool for attracting talent and investment to Southeast Michigan.

And despite the past economic downturn, the report shows that the Greater Detroit region is still one of the leading tech hubs in the nation.

The report includes a number of surprising stats about the region.

"We create and make things here, and no one does it better," Rogers said. "And this is how Detroit has evolved into one of the leading tech centers in America. We've discovered that the know-how, the infrastructure, and the talent born out of Detroit's auto and manufacturing industries provide a great foundation to build a new tech-based economy."

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