Detroit Regional Chamber President and Chief Executive Officer Sandy K. Baruah opened the 2025 State of the Region event giving an overview of the Detroit Region’s health and future trajectory amid the trade policy uncertainty between the United States and Canada so the Region’s business community can stay ahead of shifting policies and economic trends.
Detroit As an Innovation Powerhouse
Reflecting upon the rich history of innovation and being home to 13 of the Fortune 500 companies, Baruah said that continuing this legacy through the revitalization and investment in assets such as Michigan Central Station, University of Michigan’s Center for Innovation, and the Bedrock’s Gratiot Site Innovation District will benefit the Region and better position it for the economy of the future.
Noting that while the current innovation corridor spans between Ann Arbor and Detroit, Baruah said that given the proximity and steadfast relationship with Canada, that the innovation corridor could become bi-national, positioning the Detroit Region more competitively against peer regions like Austin and the Bay Area. This would call for a cohesive, strategic innovation strategy from the state, with continued relationship building and investment that Michigan universities and business leaders are currently open to developing.
Regional Economic Growth and Strengths
As Baruah dug deeper in the 2025 report findings, he asked the audience, “Has there ever been a better time to be a Detroiter?”
This was a subtle nod to the Region faring better that the U.S. average as it has kept pace – and even exceeded at some points – the national GDP rate in 2024.
Additionally, the report found that Detroiters have experienced greater housing affordability and success in the job market compared to those in peer regions. This, combined with booming new business applications and low unemployment show that Detroit was poised for another year of progress but continues to lag behind its peer regions.
Opportunities for Improvement
Though he noted earlier that there is cause for celebration on the strides the Region is making towards positive growth, Baruah shared that Detroit still lags behind national peers in key economic indicators such as population, GDP, job growth, and income levels resulting in more strain for Michiganders.
Michigan’s main areas of concern stem from the state’s economic reliance on the automotive manufacturing, energy, and agriculture industries, in addition to the intertwined nature with Canada are compounded by inflation.
The Lasting Impact of Inflation
Economists who predicted inflation to not impact the economy as greatly as it did, are now walking back on the impact. While inflation peaked in 2022, it remains a major concern to consumers. The cost of essentials like groceries rose nearly 40% over five years and money is not stretching as far as it previously had.
“The United States’s average household income is almost $78,000. In this Region, we’re only at $72,500,” Baruah said. “So, the average Detroit metro family makes notably less dollars than their national counterparts.” The gains that Detroiters may have experienced in the past few years feel less significant than they actually were.
Looming Tariffs and Uncertainty in the Business Economy
Baruah addressed an elephant in the room: that the impending threat of tariffs and their resulting economic uncertainty has been significant. The U.S. CEO confidence score dropped to the lowest it has been since 2012.
“I don’t have to tell you that this is a really dramatic drop,” Baruah said. “This big drop that you see here…that’s just from January,” he said that the risk that is influencing this change disproportionately impacts Michigan due to its close relationship with Canada.
“There is no other state in the nation that has a more integrated supply chain than with the nation of Canada than Michigan… Canada is an economic friend of Michigan, and the majority [of Michiganders] understand that tariffs on Canadian goods will hurt us all,” he said.
Looking Ahead to the Region’s Future
“The impact of inflation [right now] is very real, and Michigan is at a disproportionate risk with some of the federal policies that are being considered right now,” Baruah said, addressing the challenges from inflation and policy uncertainty that the Region is now facing after the past year of positive economic momentum.
However, through continued innovation, collaboration, and strategic investments, the Region can put itself in a strong position, poised to maintain long-term competitiveness among its peers.