Goodbye Big Three, Hello Supply Chain

IndustryWeek (Blanchard) - Chances are pretty good that any study that suggests Detroit is a hotspot for new jobs and economic activity will have been prepared by the city itself. And such is the case with a recent report, written by the Detroit Regional Chamber of Commerce and Michigan State University, which projects that Detroit could gain as many as 66,000 new jobs over the next decade, while adding $10 billion to the local economy, by transforming itself into a supply chain hub.

The study compares metro Detroit with other established supply chain hubs. Some hubs, such as Memphis and Louisville, earned their status largely due to the presence of major logistics providers (FedEx and UPS, respectively). Others, such as Chicago and Kansas City, are traditionally known as intermodal areas, thanks in large part to their proximity to rail and interstate highway networks. Becoming a supply chain hub, whether it's Detroit or any other city, requires three basic activities, according to the study:

• building differentiated hubs, which can attract industry activity to stimulate economic growth and job creation;
• attracting industries to the supply chain hub to build economies of scale; and
• facilitating hub development through private/public-sector partnerships.