Industrial employment sectors have experienced substantial employment expansion over the last year, recording an annualized net gain of 32,200 jobs across the metro.

1. Industrial real estate implications
Job growth/loss by sector (12-month change)
Detroit
Absorption has been positive for the past two years, pulling vacancies down to
within 2008 levels. The market has also been seeing fewer large move-outs
lately, allowing the recovery to play out as the auto industry ramps up
production and drives growth in the local economy. Major tenants continue to
make leasing decisions in the 100,000- to 250,000-square-foot range and the
prospects for net absorption, at least in the next couple of quarters, remain
solid.
Demand growth will continue to favor large, modern product, and when met
with fewer move-outs, the result will be a continued firming of market
fundamentals. With a minimal supply pipeline, marginal improvements in
demand will result in a tightening of vacancies. Much of the metro’s supply has
fallen into obsolescence, making demolitions seem like a good option for
improving fundamentals.
Total jobs vs. unemployment rate
Detroit
Industrial employment trends (12-month change)
Detroit
Industrial employment update
Metro Detroit . July 2015
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2000 2002 2004 2006 2008 2010 2012 2014
Peak: 2,217,186 jobs
unemployment rate
total jobs
3.0%
• According to the most recent estimates from the BLS, total non-farm
employment in Detroit increased to ~2.0 million payrolls, representing an
annualized increase of 51,100 jobs or 2.7 percent. Meanwhile,
unemployment decreased 2.0 percentage points year-over-year to 6.6
percent.
• Industrial employment sectors have experienced substantial employment
expansion over the last year, recording an annualized net gain of 32,200
jobs across the metro. Employment gains were led by the manufacturing
sector, which added 14,200 jobs year-over-year.
• Total U.S. nonfarm employment increased by 223,000 jobs in June and
downward revisions were made to previous months totaling 60,000 jobs.
Other indicators, showing wages growing slowly and jobless Americans
remaining on the sidelines, painted a grayer picture.
• Despite the 20 basis point drop in the unemployment rate, from 5.5
percent in May to 5.3 percent June, average hourly earnings stayed flat.
What had been a 2.3 percent annual growth rate in hourly earnings in
May fell to 2 percent in June, disappointing hopes that wages were finally
increasing for many workers.
5.3%U.S. unemployment
2.1%U.S. 12-month job growth
6.6%Detroit unemployment
2.7%Detroit 12-month job growth
5.5%Michigan unemployment
2.6%Michigan 12-month job growth
-2,100
-100
500
2,400
3,200
5,800
7,600
9,700
9,900
14,200
-3,500 1,500 6,500 11,500 16,500
Government
Other Services
Information
Leisure & Hospitality
Financial Activities
Educational & Health Services
Trade, Transportation & Utilities
Professional & Business Services
Mining, Logging & Construction
Manufacturing
Number of Jobs
-10.0
0.0
10.0
20.0
30.0
40.0
2011
2012
2013
2014
2015
Mining, Logging & Construction Trade,Transportation & Utilities Manufacturing Other Services

2. May 2013 May 2014 May 2015
Total Non-farm
Employment
1,879,700
2.1%
1,906,600
1.4%
1,957,700
2.7%
Unemployment Rate 9.6% 8.6% 6.6%
Detroit Supersectors May 2013 May 2014 May 2015
Mining, Logging and Construction 59,600 5.7% 61,900 3.9% 71,800 16.0%
Manufacturing 229,000 4.8% 235,400 2.8% 249,600 6.0%
Trade, Transportation, & Utilities 344,800 1.4% 353,600 2.6% 361,200 2.1%
Information 27,600 4.2% 27,700 0.4% 27,600 -0.4%
Financial Activities 103,600 4.8% 105,300 1.6% 108,500 3.0%
Professional & Business Services 364,900 3.9% 369,500 1.3% 379,200 2.6%
Educational & Health Services 298,800 0.9% 300,300 0.5% 306,100 1.9%
Leisure & Hospitality 184,800 2.6% 188,900 2.2% 191,300 1.3%
Other Services 77,400 1.3% 77,300 -0.1% 77,800 0.6%
Government 189,200 -3.6% 186,700 -1.3% 184,600 -1.1%
JLL Americas Research • Detroit Industrial Employment Update 2
Industry employment stratification
Detroit
© 2015 Jones Lang LaSalle IP, Inc. All rights reserved.
All information contained herein is from sources deemed
reliable; however, no representation or warranty is made
to the accuracy thereof.
Employment statistics
Detroit
Aaron Moore
Research Analyst Intern
Great Lakes Region
tel +1 248 581 3308
Aaron.Moore@am.jll.com
226 East Hudson Avenue
Suite 200
Royal Oak, MI 48067
www.jll.com/detroit
Andrew Batson
Senior Research Analyst
Great Lakes Region
tel +1 248 581 3300
Andrew.Batson@am.jll.com
226 East Hudson Avenue
Suite 200
Royal Oak, MI 48067
www.jll.com/detroit
News on the street
Detroit businesses expanding, contracting, etc.
All in One Medical Ι Medical Supplies Manufacturing: Expanding
Backed by $4.5 million in funding by Farmington Hills-based Beringea LLC, All In One Medical, which is based in Wolverhampton, England, has been scouting
locations in Southeastern Michigan for a manufacturing facility it wants to have running within a year. The plant will employ 35-40 people to make its patented
disposable antimicrobial curtains, room dividers and window blinds for hospitals and medical clinics
Cardinal Health Ι Medical Supply Distributor: Expanding
The Cardinal Health Distribution Center on Rosa Parks Boulevard at McGraw brings 140 new jobs to a mostly blighted neighborhood where dilapidated family
homes are interspersed with vacant lots and burned down houses. The facility is a joint project between nearby Henry Ford Health System, the Detroit Medical
Center and Dublin, Ohio-based Cardinal Health, a supplier of medical and surgical products such as sterile gloves, surgical apparel and intravenous supplies.
FedEX Ι Logistics: Expanding
A new 300,000-square-foot FedEx facility is planned for the former Detroit Artillery Armory site in Oak Park. Total investment in the project is expected to be around
$35 million and construction is expected to take about a year to complete. Work is expected to begin this summer. About 250 jobs are initially expected to be created
and about 400 are expected over several years.
General Motors Ι Auto Manufacturer: Expanding
General Motors said it will add 300 jobs and invest $245 million into its Orion Assembly Plant to launch a new vehicle, a positive sign for the plant that faces another
round of layoffs starting next month amid slow car sales. The Detroit automaker said the new vehicle, is "unlike any in the plant's 32-year history." The investment is
part of the $5.4 billion GM said it plans to spend to upgrade U.S. plants over three years and the 650 new jobs those investments are expected to create.
Magna International Ι Auto Supplier : Relocating
Marada Industries, a Magna International subsidiary which operates as Cosma Body Assembly Michigan, will build a 150,000 square foot facility on a 32-acre parcel
of land near Milford Road and Grand River Avenue. The site was chosen over competing locations in Ohio, South Carolina, and Ontario. The facility will be used to
supply underbody structural components to the auto industry.
Schostak Brothers & Company Ι Real Estate: Expanding
Livonia-based Schostak Brothers & Company has begun a $2 million project to redevelop a former Home Depot in Redford Township for light industrial use.
Work on the 145,728-square-foot store, on Inkster Road between Plymouth Road and I-96, is scheduled to be complete by July. The industrial space vacancy rate
in western Wayne County is currently 7.5 percent, compared with 17.2 percent in 2010, Schostak Bros. said.
Professional &
Business Services,
379,200, 19%
Trade, Transportation
&Utilities,
361,200, 18%
Educational &
Health Services,
306,100, 16%
Manufacturing,
249,600, 13%
Leisure & Hospitality,
191,300, 10%
Government,
184,600, 9%
Financial Activities,
108,500, 6%
Other Services,
77,800, 4%
Mining, Logging
& Construction,
71,800, 4%
Information,
27,600, 1%