It is Not just the Auto Industry Driving Detroit’s Economy

Although Michigan’s economy will likely always be dependent on the automobile industry, it is the more nimble “New Economy” that has taken hold of the area.

“Many of the region’s technology jobs have a direct relationship to the auto industry,” said Scott Goemmel, co-founder of Troy-based PMV Technologies. “However, what often gets overshadowed is the growing tech sector away from that industry.”

While Michigan has lost a staggering 88,000 manufacturing jobs over the past few years, according to the 2006 Michigan Manufacturers Directory, companies in the tech sector continued to march forward.

The auto industry, including manufacturing sectors, still accounts for a huge portion of the state’s jobs, but information technology and life science companies are gaining ground, according to several reports.

Automation Alley, Michigan’s own version of Silicon Alley, boasts a booming industry with above-average wages, high-skilled and high-knowledge jobs, groundbreaking discoveries, and investment by firms from around the world, according a report released by the Automation Alley Consortium.

"Finding tech workers with a solid 3 to 5 years experience is the biggest challenge right now" - Scott Goemmel, co-founder of Troy-based PMV Technologies.

PMV technology alone has more than tripled it staff to 40 over the past four years, and Goemmel expects that number to keep expanding.

“We are constantly on the lookout for talented people,” he said.

The state was recently ranked the 10th largest Cyberstate in terms of tech employment in the nation, according to a report from AeA, the nation’s largest trade association for the high-tech industry. The majority of Michigan’s tech employment comes in two sectors: research, development and testing labs; and engineering services.

“The region’s tech job market has continued to grow outside the traditional industries for several years now,” said Robert Dickey, senior vice president of Sapphire Technologies, an IT staffing firm.

Tech job listings for the Detroit area on Dice, the leading technology career site, registered a solid 6% increase during a recent three-month period ending in June.

The average yearly salary for IT workers in Detroit is $65,500. The most sought-after IT skills right now, according to Dice, include Oracle, SAP and Java.

“Detroit isn’t just about making cars anymore,” said Scot Melland, Dice CEO. “There is a lot going on in the city, and around the state.”

And some big players also have the Motor City on their mind.

Last week Google announced it would open a 1,000-person office for its AdWords division in the Ann Arbor area by 2007.

Other large tech-dependent firms are also gearing up to add staff.

Comcast says it expects to hire 400 technicians, account executives and customer support staff and Verizon plans to fill 130 positions by the fall.

“Finding tech workers with a solid 3 to 5 years experience is the biggest challenge right now,” Goemmel said.

Comments? Please contact the Dice writers at feedback@dice.com.


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