By: Bill Shea  |  Posted: June 30, 2010

Supply Chain Strategy Could Bring 66,000 New Jobs to Southeast Michigan, Report Says:

Metro Detroit, in combination with the adjacent areas of Ontario and Ohio, could see up to 66,000 new jobs and $10 billion in new annual economic development if the region develops a coordinated cross-border supply chain management strategy.

That’s according to an executive summary of a new report made public from the Detroit Regional Chamber and Michigan State University.

The report, which is a survey of economic development potential for the supply chain, was presented to the New Economy Initiative, which is a cooperative philanthropic effect to boost Southeast Michigan’s position in the global economy.

Teams from the chamber, MSU, Wayne State University and industry spent six months collaborating on the new report to identify how best Southeast Michigan, Southwest Ontario and Northeast Ohio can bolster the cross-border and national supply chain in the region.

Three basic areas of supply chain management were identified in the study: heavy manufacturing (auto, alternative energy, chemical, defense, etc.), light manufacturing (food processing, medical and water technologies) and distribution (warehousing, retail importing and waste management).

The report said $5 billion in annual new economic activity and 41,200 new jobs could come from heavy manufacturing and $5.5 billion and 25,500 new jobs from light manufacturing and distribution.

It didn’t specify over what timeframe the jobs and economic activity would be created.

The new study outlines three strategy components for the core areas:

  • Build hubs.
  • Attract new industry/companies to the hubs.
  • Facilitate hub growth via public-private partnerships.

Outlined were the various strengths and weaknesses of the region and recommendations, such as public policy changes and new communications.

Recommended next steps include identifying stakeholders, continue the workshops that led to creation of the new report, identify the leaders and policies need to implement the strategies and creating a pilot program.

The New Economy Initiative has funded some of the chamber’s ongoing TransLinkeD initiative aimed at creating a regional collaborative authority of elected and private-sector stakeholders involved in freight movement.

That group would shepherd metro Detroit’s effort to capture a larger share of the U.S. logistics industry.

Basically, TransLinkeD’s goal is to turn the region into a modern inland air-sea-rail-ground port in an effort to boost the economy and promote development and job creation.

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