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EXECUTIVE SUMMARY i
UNDERSTANDING THE MACRO ECONOMY 1
Overview 1.1
The Case for Change 1.1
Challenges and Opportunities 1.2
Local Initiatives 1.3
Preliminary Framework 1.4
IDENTIFYING OPPORTUNITIES 2
Overview 2.1
Benchmarking Detroit and the Region 2.2 IN‐PROGRESS – December 16, 2010
Export Performance 2.3
Next Steps 2.4
OVERVIEW OF THE WORKFORCE 3
Overview of the Workforce 3.1
Workforce Benchmark 3.2
Identifying Opportunities 3.3 PHASE ONE: RESEARCH AND PRIORITIES
OVERVIEW OF CAPITAL MARKETS AND POLICY AUDIT TOPIC:
BUSINESS ENVIRONMENT 4
Financial Infrastructure 4.1
URBAN & REGIONAL ECONOMY
Business Environment 4.2
DEVELOPING AN INDUSTRIAL STRATEGY: NEXT STEPS 5
Industrial Land Inventory 5.1
Workforce Assessment and Matching 5.2
Developing an Industrial Strategy 5.3
Potential Blue Economy 5.4
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
Executive Summary
9This report provides an inventory and preliminary evaluation of current labor, land and capital assets for the city of Detroit and its region.
9ICIC’s data reflect both quantitative and qualitative analysis. Quantitative methods range from compounded annualized growth rates to
regression analyses; it also includes ratios such as location quotient and export intensity.
9Results of the Phase 1 Policy Audit capture an astonishingly asset-rich city and region that have fallen below national trends in most every
category. However, Detroit’s “relative” weakness in labor, land and capital ratio’s do not reflect its “absolute” infrastructural strengths. In
particular, comparative advantages that have been identified include: competitive traded clusters, surplus manufacturing assets, and
untapped institutional investors.
9The key areas of strength will be extracted from the Phase 1 findings and developed into a viable holistic economic development strategy.
Detroit can and must create an economic development strategy that offers opportunities for both current and future residents. This will
not only create a viable long-term tax base for the city, it will increase the chances of success for every existing regional initiative.
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
1. UNDERSTANDING THE MACRO ECONOMY
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
Overview
PRIVATE & PUBLIC SECTOR EMPLOYMENT, 2008
Detroit’s Top Employers Region’s Top Employers
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
SOURCE: State of the Inner City Economies (SICE) database; ICIC analysis; Crain’s; LEHD On The Map 4.0
POLICY AUDIT TOPIC : Urban & Regional Economy
UNDERSTANDING THE MACRO ECONOMY
Overview
EMPLOYMENT IN DETROIT, THE REGION, AND THE U.S.
SOURCE: Bureau of Labor Statistics, State of the Inner City Economies (SICE) database; ICIC analysis INITIATIVE FOR A COMPETITIVE INNER CITY
1.1 IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
UNDERSTANDING THE MACRO ECONOMY
Overview
UNEMPLOYMENT RATE, 1990-2010
• In August 2010, unemployment rates
for Detroit, the Detroit region, and the
U.S. were 24.3%, 14.4%, and 9.5%
respectively.
% of 1970 Population
PLACE 1980 2008
Detroit 82% 55%
Pittsburgh 84% 58%
USA 115% 153%
Poverty Rate, 2009 36% 14% 2.5 o Average individual income and
Functional Illiteracy Rate, 1992 47% 23% 2.0 median household income are barely
half the national average.
Average Income for the Population 15+, 2009 18,199 33,072 55%
Median Household Income, 2009 26,098 50,221 52%
SOURCE: Toni Griffin and Detroit Collaborative Design Center, 2010; Glaeser, 2001; US Census 2000, ICIC special tabulation. INITIATIVE FOR A COMPETITIVE INNER CITY
1.3 IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
UNDERSTANDING THE MACRO ECONOMY
SOUTHFIELD
94,600
DEARBORN
67,000
• The burdens associated with Detroit’s job sprawl fall disproportionately on low-income, workers without access to a private vehicle:
• One-way commute times using public transportation from Detroit to nearby job centers (within about 30 miles) can be over 2 hrs
– Round trip travel times to some job centers equate to half of a work day
• Riding the bus can take over 4 times as long as driving in a private vehicle to reach the same destination
• These findings implicate not only the sprawling built-form of the region, but also its weak public transportation network
SOURCE: American Community Survey 2009 ; Bureau of Labor Statistics (BLS), September 2010 INITIATIVE FOR A COMPETITIVE INNER CITY
1.3 IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
UNDERSTANDING THE MACRO ECONOMY
• Only 34% of Detroit’s residents without a high school degree are currently employed. This is far less than the
average for other large U.S. cities.
• Only Philadelphia rivals Detroit in terms of low labor force participation rates among less-educated workers.
Philadelphia, however, has far fewer workers without a high school degree.
SOURCE: American Community Survey, 2009 INITIATIVE FOR A COMPETITIVE INNER CITY
1.3 IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
UNDERSTANDING THE MACRO ECONOMY
Detroit Renaissance
Automation Alley
Wayne County
Macomb OU
Next Energy
DTE Energy
Translinked
TechTown
MEDC
DEGC
NEI
Entrepreneurship
Bizdom University X X
Creative Corridor Incentive Fund X x x x
Detroit Business Innovation Development Fund X
MI Initiative for Innovation and Entrepreneurship
MI's Transition to a Knowledge-Based Economy Detroit
X x
SE Michigan
FastTrac
Michigan
Business Leaders For Michigan
Creative Corridor
Alternative Energy
UEP Detroit 150 X
Alternative and Renewable Energy Economic Dvlp. x
Michigan Green Jobs Initiative
Wind Manufacturing Working Group
Hydraulic Hybrid Working Group
Renewable Energy Renaissance Zones
Centers of Energy Excellence Program
Advanced Battery Credits Program:
Waste-to-Energy
Clean Cities Coalition
Detroit Renaissance
Automation Alley
Wayne County
Macomb OU
Next Energy
DTE Energy
Translinked
TechTown
MEDC
DEGC
NEI
Life Sciences
Accelerate Michigan Innovation Competition
Michigan Life Science Research and Innovation Center
MichBio
Biosciences Research and Commercialization Center
Southeast Michigan Life Science Study Detroit
SE Michigan
Transportation and Logistics Michigan
UEP Detroit 150
Assessment of Michigan’s Supply Chain Assets
Aerotropolis
NAFTA Super corridor x
Blue Economy
Green Jobs for Blue Waters
E3: Economy, Energy and Environment
Advanced Manufacturing
From Surviving to Thriving
Higher Education Recruitment Consortium
Michigan Transfer Network
Consortium for Advanced Manufacturing
SOURCE: ICIC “’Leapfrogging’ is the notion that areas which have poorly-developed technology or INITIATIVE FOR A COMPETITIVE INNER CITY
1.5 economic bases can move themselves forward rapidly through the adoption of modern IN‐PROGRESS: DECEMBER 16, 2010
systems without going through intermediary steps.” Jamais Cascio, 2004
POLICY AUDIT TOPIC : Urban & Regional Economy
UNDERSTANDING THE MACRO ECONOMY
Next steps: Identify industries and occupations that provide the most opportunity for
lower-skilled workers and examine cities with high labor force participation rates among
residents with lower levels of formal education.
INNOVATION CORRIDORS:
…to translate the region’s vast innovative and engineering capabilities into firm
formation and job creation.
Next steps: There are many strong initiatives underway at the local and regional scales;
interview organizations to understand how the city can promote success of these initiatives
and maximize their impact on the city’s economy. Identify high skill-based potential
innovation corridors, including Detroit-Ann Arbor.
EXPORT CORRIDORS:
…to facilitate the manufacture and distribution at the city’s and region’s exporting
firms.
Next steps: Work with SEMCOG to map the current spatial distribution of firms with mix of
high and low skill opportunities in export-intensive sectors as well as trade-enabling
transportation, logistics, and distribution firms to understand location patterns and
infrastructure requirements. Interview firms in the city and region regarding their location and
business environment needs. Investigate federal initiatives.
SOURCE: Graphics from SOM Policy Audit INITIATIVE FOR A COMPETITIVE INNER CITY
1.5 IN‐PROGRESS: DECEMBER 16, 2010
2. IDENTIFYING OPPORTUNITIES
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
IDENTIFYING OPPORTUNITIES
• Largest job losses: Automotive, Commercial Services, Health Services, Financial Services
•Largest job gains: Information Technology, Casino Hotels, Entertainment, Local Logistical Services
• Largest job losses: Automotive, Commercial Services, Real Estate and Construction, Metal Manufacturing
• Largest job gains: Education, Health Services, Business Services, Transportation and LogisticsINITIATIVE FOR A COMPETITIVE INNER CITY
SOURCE XXXXXX
1.X IN‐PROGRESS: DECEMBER 16, 2010
SOURCE: State of the Inner City Economies (SICE) database; ICIC analysis
POLICY AUDIT TOPIC : Urban & Regional Economy
IDENTIFYING OPPORTUNITIES
A cluster is a set of “geographically Traded clusters serve customers The best examples of local clusters
proximate group[s] of interconnected spread across the country and the are consumer services like dry
companies” that influence each other as world. Traded clusters are strongly cleaners and restaurants, which
customers, suppliers and competitors. represented by manufacturing generally attract customers from
activities but also include IP- within a very small footprint.
Cluster actors include OEMs, suppliers, dominated sectors like IT and high-
machinery, providers, financial institutions, end financial and business services. Local clusters also include B-2-B
business associations, specialized services like local logistics, industrial
infrastructure providers, and other Because of their strong links to products and services, and financial
institutions that provide training, education, innovation, and their out-sized services like tax advisory services.
information, research, and technical contributions to value added, wages,
support. and taxes, traded clusters have been Although often overlooked, the
the focus of much of local, state, and strength or weakness of local
Cluster outputs can be sold in local federal economic development clusters can drive urban and regional
markets (i.e. the region or smaller) or can efforts. economies.
be shipped outside the region, to other
parts of the U.S. or internationally. Many of the Obama Administration’s Local clusters account for 70% of all
Clusters that primarily sell within the major economic development U.S. employment. Average wages are
region are termed “local”: clusters that sell efforts are related to traded lower than in traded clusters, but
outside the region are referred to as clusters, including: the appointment jobs are more accessible to workers
“traded.” of a manufacturing czar, the focus on without high levels of formal
exports, and the development of education.
cluster programs and policy.
BENCHMARKING DETROIT
For each of the 40 economic clusters in
which Detroit competes, we ranked its
1998-2008 employment growth against
the country’s other 99 largest cities.
Detroit performed in the bottom
quartile (75th -100th percentile) in 21 of
the 40 clusters.
SOURCE: State of the Inner City Economies (SICE) database; ICIC analysis INITIATIVE FOR A COMPETITIVE INNER CITY
2.1 IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
IDENTIFYING OPPORTUNITIES
BENCHMARKING THE
REGION
For each of the 50 economic clusters in
which the region competes, we ranked its
1998-2008 employment growth against
the country’s other 82 largest regions.
The region performed in the third
quartile (50th - 75th percentile) in 23 of
the 50 clusters.
SOURCE: State of the Inner City Economies (SICE) database; ICIC analysis INITIATIVE FOR A COMPETITIVE INNER CITY
2.1 IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
IDENTIFYING OPPORTUNITIES
• BIOPHARMACEUTICALS: In 2007, Caraco Pharmaceutical Labs, Ltd. expanded to 650 employees. (In 2008-2009,
Caraco had problems with the FDA and was forced to close and layoff 430 employees, but is currently working to
reopen the Detroit plant.) Henry Ford is a site for biopharmaceutical research. Many observers believe that
biopharmaceuticals is a still largely untapped opportunity for the city and region.
• ENTERTAINMENT: The cluster includes entertainment venues; the city’s growth is likely attributable to on-site
employment at Comerica Park (opened in 2000) and Ford Field (opened in 2002) and supporting services. The
production-oriented parts of the cluster (e.g., recorded products, video production and distribution) could increase
with the burgeoning “creative class” being drawn to Detroit.
SOURCE XXXXXX INITIATIVE FOR A COMPETITIVE INNER CITY
1.X IN‐PROGRESS: DECEMBER 16, 2010
SOURCE: State of the Inner City Economies (SICE) database; ICIC analysis
POLICY AUDIT TOPIC : Urban & Regional Economy
IDENTIFYING OPPORTUNITIES
• EDUCATION AND KNOWLEDGE CREATION: Detroit did not see any significant employment change in the
cluster between 1998 and 2008, while the cluster saw rapid growth in many cities in the country due mainly to rapid
expansion at private universities, especially large top-tier universities. Detroit’s private institutions, however, are
relatively small: University of Detroit Mercy has 5,500 students; College for Creative Studies has 1,300; Lewis College
of Business has 300 students; and Marygrove College has 1,300 students.
• TRANSPORTATION AND LOGISTICS: This was a significant source of job growth in cities and regions around the
country in the 1998-2008 period. Poor performance in Detroit’s cluster can be traced to the decline in scheduled
passenger air transportation (750 jobs). This decline overshadows the 500 jobs that were created in the General
Warehousing
SOURCE XXXXXX
and Storage industry over the same period. INITIATIVE FOR A COMPETITIVE INNER CITY
1.X IN‐PROGRESS: DECEMBER 16, 2010
SOURCE: State of the Inner City Economies (SICE) database; ICIC analysis
POLICY AUDIT TOPIC : Urban & Regional Economy
IDENTIFYING OPPORTUNITIES
Export-Related Jobs,
Total Jobs from
Rank Share of Regional Rank
Exports, 2008
Jobs, 2008
• Only the Detroit and Silicon Valley (San
Los Angeles-Long Beach-Santa Ana 560,475 1 9.8% 23 Jose) regions rank in the top ten in both
New York-Northern New Jersey 481,946 2 5.6% 87 total export-related jobs and share of
export-related jobs.
Chicago-Naperville-Joliet 397,924 3 8.7% 43
Dallas-Fort Worth-Arlington, 303,514 4 10.0% 21 • The city of Detroit plays a key role in
Detroit-Warren-Livonia 239,910 5 12.5% 7 this performance: we estimate that 6% of
the region’s most export-intensive firms
Houston-Sugar Land-Baytown 235,193 6 8.9% 38
and 11% of the region’s trade-enabling
Boston-Cambridge-Quincy 223,070 7 8.9% 37 transportation, logistics, and distribution
San Jose-Sunnyvale-Santa Clara 212,157 8 22.7% 1 firms are located within the city of
Philadelphia-Camden-Wilmington, 201,634 9 7.1% 65 Detroit. (Across all sectors, 8% of the
region’s establishments are located in
Seattle-Tacoma-Bellevue, 196,000 10 10.7% 16 Detroit.)
SOURCE: Istrate, Rothwell, and Katz, July 2010; State of the Inner City Economies (SICE) database; ICIC analysis INITIATIVE FOR A COMPETITIVE INNER CITY
2.3 IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
IDENTIFYING OPPORTUNITIES
• In addition to transportation,
Detroit has very high shares of
employment in the most export-
intensive portions of machinery
and primary metals.
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
OVERVIEW OF THE WORKFORCE
3.1 Overview
TOTAL LABOR MARKET
Less than 50% of Detroit’s residents are employed In Detroit, female residents are significantly
compared to 70% for the region. more likely to be employed. The reverse is true
in the region.
Note: 12/10 updated American Community Survey data will be used to update current information INITIATIVE FOR A COMPETITIVE INNER CITY
SOURCE: American Community Survey, 2009 IN‐PROGRESS: DECEMBER 16, 2010
3.1
POLICY AUDIT TOPIC : Urban & Regional Economy
OVERVIEW OF THE WORKFORCE
3.1 Overview
DISTRIBUTION DYNAMICS
3.1 Overview
AGE DYNAMICS
WORKFORCE BY AGE
EDUCATIONAL ATTAINMENT
POPULATION AGE 25-64
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
OVERVIEW OF CAPITAL MARKETS
Lack of Significant Commercial and Investment Banking Presence: The lack of commercial banking headquarters in the city of Detroit and the
surrounding region were cited to have implications on the volume and types of transactions and investments being done in the area.
Implications on Government-Based Sources of Capital (for which there are data available):
1) NMTC: From 2004 – 2008, the city of Detroit received 1/4 of the total New Markets Tax Credit (NMTC) investments received by
Baltimore and less than 40% of that of Cleveland. Furthermore, of the 40 NMTC investments made, only one project was for
‘business-purpose’ while the rest were real-estate transactions. Some attribute the limited banking infrastructure, particularly the
lack of headquarter banking functions and limited capacity of the local branches, as barriers to completing a higher volume of
leveraged and other complex NMTC transactions.
2) SBA Loans: Large commercial lenders play a very small role in extending SBA loans to small businesses. A case in point, Bank of
America gave out six loans in 2009 in the entire state of Michigan in the total amount of $190k. With the decline in community
banking institutions, this may limit the reach of SBA loans to small businesses.
3) The lack of understanding about and advocacy for the local economy by smaller local branches is cited as limiting credit to Detroit-
based projects.
Total Capital Under Management $1B $1.1B Total Capital Under Management 0.5% 0.6% 2.8%
Avg VC Under Mgmt by Firm $73M $76M Avg VC Under Mgmt by Firm 33% 34%
Avg VC Fund Size $38M $39M Avg VC Fund Size 26% 37%
1) Asset Base
¾ Asset liquidations from foreclosure and fire sales have destroyed the secondary market demand for equipment and land
¾ Personal assets, an important source of financing and/or collateral for smaller businesses, have declined with housing prices
2) Perception of Risk
¾ Investors are ambivalent about the city’s commitment to transparent governance
3) Private Equity/VC
¾ Detroit business assets are not attractive targets for Michigan VCs, which prefer life sciences and alternative energy firms
¾ Michigan VCs are not large enough to get substantial institutional investors (e.g., universities, pensions, etc.)
¾ One expert estimates that Michigan venture funds still only have 20% of what they could invest
¾ According to one source, Michigan companies account for well less than half of the portfolios of Michigan VCs
2) University-Related Assets
¾ According to local VCs, Wayne State is generating more commercially viable ideas
¾ TechTown is incubating firms in areas that are attractive to VCs, especially life sciences and alternative energy
¾ Ann Arbor is an important city site for VCs; potential linkages between Detroit and Ann Arbor have not been fully explored
¾ In 2008 and 2009, however, four Michigan-based CDEs received almost $180 million in NMTC allocations, compared to $100M in
state allocations for the entire 2003-2007 period
¾ All four CDEs can spend allocation in Detroit; one is focused solely on Detroit, another on Wayne County (including Detroit), and
a third on Detroit and Lansing
1) The dominance of large, vertical firms during much of the city’s and region’s industrial era inhibited the development of an
independent, robust economic institutional infrastructure (e.g., local capital markets, education and training, strong relationships
with universities). This creates many challenges, including limited transferability of best practices from elsewhere in the country.
2) Similarly, relationships with one or a small number of very large OEMs left supplier firms in the region with truncated skill sets;
“build to print” did not allow suppliers to develop design, engineering, or marketing capabilities. In recent years, first-tier suppliers
have grown very large and have been asked to take on more design work, but the relationship with OEMs is still very unequal and
suppliers have struggled with profitability, bankruptcy, and survival. However, supplier deaths have driven more business to
survivors.
3) A “go-it-alone” regional political culture and a history of animus and non-cooperation have left few formal building blocks for
cooperation. At the same time, at the level of individual firms and organizations, there is a welcoming attitude towards alliances
across the region.
4) Prior success has created a culture of very high expectations regarding the city’s and region’s role in the national and global
economies. This can foster greatness or paralysis.
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
DEVELOPING AN INDUSTRIAL STRATEGY: NEXT STEPS
INITIATIVE FOR A COMPETITIVE INNER CITY
5.1 IN‐PROGRESS: NOVEMBER 1, 2010
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: NOVEMBER 1, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
DEVELOPING AN INDUSTRIAL STRATEGY: NEXT STEPS
SOURCE: Graphic courtesy of Hamilton Anderson, Policy Audit, October 2010 INITIATIVE FOR A COMPETITIVE INNER CITY
5.2 IN‐PROGRESS: NOVEMBER 1, 2010
POLICY AUDIT TOPIC : Urban & Regional Economy
DEVELOPING AN INDUSTRIAL STRATEGY: NEXT STEPS
INITIATIVE FOR A COMPETITIVE INNER CITY
SOURCE: ESD Institute: Michigan’s Blue Economy Initiative; Michigan’s Blue Economy Report; www.greenjobs4bluewaters.com IN‐PROGRESS: DECEMBER 16, 2010
5.4
POLICY AUDIT TOPIC : Urban & Regional Economy
• The city of Detroit, in collaboration with General Motors, Kresge & the
Detroit River Conservancy, have begun to build the largest sustainable
urban waterfront in North America.
•The 5.5 mile Detroit Riverwalk will span from the Ambassador Bridge to
Belle Isle and would spawn other economic multiplier activities including
plazas, pavilions, parks, harbors and green spaces
INITIATIVE FOR A COMPETITIVE INNER CITY
SOURCE: ESD Institute: Michigan’s Blue Economy Initiative; Michigan’s Blue Economy Report; www.greenjobs4bluewaters.com IN‐PROGRESS: DECEMBER 16, 2010
5.4
POLICY AUDIT TOPIC : Urban & Regional Economy
• Conservation • Sanitary sewer overflow (SSO) and combined sewer overflow (CSO)
• End-user conservation technologies • Monitor, repair, and right-size water and sewer • Greenways and wetlands can be engineered to reduce sewer overflow speeds and
like low flow toilets, aerated shower pipes to minimize pressure points and leaks – absorb the overflow before reaching environmentally and ecologically sensitive water
important for the U.S.’s aging infrastructure and bodies like the Rouge and Detroit River. At the same time they can reduce
heads, and grey water recycling save could save millions in water and energy costs
end-users money and represent a growing seasonal and rain-based flooding – an important consideration for many Detroiter’s
• Blackmer’s (www.blackmer.com) world
market and their basements
headquarters and CESO (www.cesoinc.com) are
• Falcon WaterFree’s U.S. headquarters both in MI and Miya (www.miya-water.com) • URS (http://www.urscorp.com) has an office in Detroit
is in MI (www.falconwaterfree.com) partnered with SE MI towns and counties to bring INITIATIVE FOR A COMPETITIVE INNER CITY
applicable technologies and green jobs IN‐PROGRESS: DECEMBER 16, 2010
SOURCE: ESD Institute: Michigan’s Blue Economy Initiative; The Water Opportunity for Ontario; www.greenjobs4bluewaters.com
5.4
POLICY AUDIT TOPIC : Urban & Regional Economy
“There are substitutes for oil, but there are none for fresh water”
- CERES and the Pacific Institute
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
SOURCE: ESD Institute: Michigan’s Blue Economy Initiative; Intergovernmental Panel on Climate Change (www.ipcc.ch)
5.4
POLICY AUDIT TOPIC : Urban & Regional Economy
Bottling:
Pepsi (Aquafina/Pepsi )
Michigan Soft Drink Association
Nestle (Ice Mountain, Gerber)
Brown-Forman (Jack Daniels, Southern Comfort)
Food Processing:
Archer Daniels Midland (Agribusiness)
Sara Lee (Food Processing)
Chemicals:
Praxair (Industrial Gas)
Water is used to generate power and for heating and cooling Potash (Mining Fertilizer)
Water is used as a product ingredient and throughout cleaning and sterilization processes BASF (Global Chemical Company)
Water is used as an ingredient in beverages and as a byproduct in the processing and dispensing DuPont (Global Chemical Company)
of food and beverages Henkel (Water Treatment, Adhesives)
PPG (Chemicals, Coatings)
Water is used in production processes and for scrubbing and cooling
INITIATIVE FOR A COMPETITIVE INNER CITY
IN‐PROGRESS: DECEMBER 16, 2010
SOURCE: ESD Institute: Michigan’s Blue Economy Initiative; The Water Opportunity for Ontario; www.greenjobs4bluewaters.com
5.4
POLICY AUDIT TOPIC : Urban & Regional Economy
“There are substitutes for oil, but there are none for fresh water”
INITIATIVE FOR A COMPETITIVE INNER CITY
SOURCE: ESD Institute: Michigan’s Blue Economy Initiative; The Water Opportunity for Ontario; www.greenjobs4bluewaters.com
IN‐PROGRESS: DECEMBER 16, 2010
5.4