Business Climate

Business Climate

The Detroit region offers companies of all sizes and all industries one of the best business climates in the nation.

The region is home to 10 of Michigan’s 17 Fortune 500 companies which generated a combined revenue of over $223 billion in 2020. The Detroit region also offers low cost of living compared to other peer regions. In addition, Michigan ranks 12th among states for overall tax climate.

Fortune 500 Companies

RankCompanyHQ City2020 Revenue ($M)
21Ford Motor CompanyDearborn$127,144
22General MotorsDetroit$122,485
143Penske Automotive GroupBloomfield Hills$20,443
179Lear CorporationSouthfield$17,045
194Rocket CompaniesDetroit$15,980
250DTE EnergyDetroit$12,117
287Ally FinancialDetroit$10,165
295BorgWarnerAuburn Hills$10,165
392AutolivAuburn Hills$7,447
398MascoLivonia
$7,289
Source: Fortune Magazine, 2021

Largest Private Firms

Company2020 Revenue (billions)Full-Time Employees in Detroit Area (Jan. 2021)
Penske Corp.$30,000N/A
Ilitch Holdings Inc.$4,100N/A
Plastipak Holdings Inc.$2,900650
Piston Group$2,876865
Moroun Family Holdings$2,746N/A
H.W. Kaufman Group Inc./Burns & Wilcox$2,450257
The Suburban Collection$2,4212,537
Barton Malow Holdings LLC$2,3361,052
Victory Automotive Group$2,094N/A
Walbridge$1,912500
Source: Crain’s Detroit Business, 2022

Cost of Living

According to the Council for Community and Economic Research (C2ER), the Detroit region’s cost of living is only 103.0. Compared with other major metropolitan areas throughout the United States, the Detroit region is a very affordable place to live.

Cost Of Living Index For Select Metro Areas, 2021 Average Data

Metro AreaIndex
Memphis, TN84.9
St. Louis, MO87.1
Columbus, OH91.5
Cleveland, OH93.7
Buffalo, NY94.4
Minneapolis, MN102.9
Detroit, MI103.0
Baltimore, MD103.8
Pittsburgh, PA103.4
Atlanta, GA105.0
Dallas, TX107.7
Philadelphia, PA109.8
Denver, CO113.5
Chicago, IL123.3
Seattle, WA152.7
Boston, MA153.2
Washington-Arlington-Alexandria, DC-VA158.1
San Francisco, CA194.1
Manhattan, NY255.0
Source: C2ER, 2021 Annual Average Data Report

Taxes

According to The Tax Foundation’s State Business Tax Climate Index, Michigan ranked 12th among states for overall tax climate. The Index is designed to show how well states structure their tax systems. Michigan also ranked 20th for its corporate tax, 12th for individual income taxes, 10th for sales taxes, and 21st in the property tax category.

Michigan Personal Income Tax Rate: 4.25%
Michigan Corporate Income Tax Rate: 6%

2022 State Business Tax Climate Index

StateOverall RankCorporate Tax RankIndividual Income Tax RankSales Tax RankProperty Tax RankUnemployment Insurance Tax Rank
Michigan12201210217
Missouri133212584
Texas14477363714
Washington15397492024
Wisconsin27313772816
Georgia32835332537
Massachusetts343611124550
Illinois364213394840
Ohio37404135610
Minnesota454543293230
Source: Tax Foundation
Research & Data

Learn about the region’s economics, workforce and talent, industry clusters and more.

For additional information, contact the Data and Research team.

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