Despite swirling uncertainty caused by the Trump administration’s on-again, off-again tariff policies, the latest economic report from the Detroit Regional Chamber of Commerce has quite a few bright spots.
Since the report’s unveiling, Trump has instituted tariffs on nearly everything, but has also paused most of them for 90 days. Despite the back-and-forth, Detroit’s business leaders found encouraging news in the latest report.
Yasmeen Jasey, the president of Citizens Bank Michigan and a member of the chamber’s board of directors, opened the State of the Region saying “the Greater Detroit economy was strong last year,” citing a “solid and robust” labor market and consumer spending she said “fueled GDP growth.”
“The region and the state also continue to provide a supportive business environment,” Jasey said. “In fact, Michigan’s new business applications in 2024 were 28% higher than pre-Covid numbers in 2019, and I’m proud to say that Michigan holds the number one spot ranked for business-funded R&D and next-generation mobility in investments among all states.”
According to the report:
- Home prices in the region grew by 8% (the national average was 5%).
- Homes prices in southeast Michigan are averaging $140,000 less than the national average.
- Venture capital growth here increased by 40% (the national rate was 36%).
- National CEO confidence, tracked by Chief Executive magazine, dropped from about 7 out of 10 in 2024 to 5 in March.
“This is something that we are concerned about, and it’s something that we here at the chamber, with the CEOs that we work with, are seeing mirrored in the anecdotal conversations we have with leaders running national and global companies,” DRC President Sandy Baruah said.
With Trump imposing tariffs on Canada, Baruah said, Michigan’s economic relationship ith and reliance on Canada are top of mind for business leaders.
“Canada is our largest trading partner, both as a nation and as a state,” Baruah said. “One in every eight jobs in the Detroit region — almost a quarter-million jobs — depend on trade with Canada. We feel that these jobs are at risk should we not resolve this tariff situation relatively quickly.”
Jasey agreed.
“The certainty piece is definitely the piece that would help us move forward,” she said. “Because dealing with economic change and challenges is not anything new for our customers here and our business leaders here in Michigan. In fact, I would say they are some of the most resilient individuals that I’ve ever met. And they’re ready and they’re prepared, and they can work through the process if they knew what was coming.”
While challenges certainly await, Baruah chose to focus on the positives happening in Detroit and the state.
Citing events like the opening of Michigan Central Station, the NFL draft, Baruah called it “an exciting time” to be a Detroiter.
“We have so much to be proud of and we see that and a lot of the data just look at gross domestic product,” Baruah said. “We have had strong economic growth all throughout 2024, and this is an area where we have essentially kept pace and in some cases exceeded the growth of the United States.”
