Automation Alley forecasts economic growth for Southeast Michigan technology companies in 2016 — and predicts the region will outperform even Silicon Valley in many key areas, including revenue, R&D investment and hiring. These findings and more were revealed in Automation Alley’s 2016 Technology Industry Report.
For 2016, the report surveyed top senior technology executives in both Southeast Michigan and Silicon Valley. Almost all Southeast Michigan tech executives predict revenue growth (99 percent) this year and 25 percent of those predict more than a 15 percent increase. And, Southeast Michigan trumps Silicon Valley when it comes to return on investment and cost of living for its employees. A vast majority of Southeast Michigan executives (83 percent) believe technology companies can have greater return on investment doing business in metro Detroit while only 69 percent of their Silicon Valley counterparts believe the same to be true about the Valley. And, cost of living for employees in Southeast Michigan is far superior to Silicon Valley. For example, median housing prices are 412 percent higher in San Jose than in metro Detroit.
Automation Alley’s 2016 Technology Industry Report key findings include:
Southeast Michigan technology leaders are optimistic about 2016 growth.
- 99 percent in Southeast Michigan project revenue growth in 2016
- 83 percent in Southeast Michigan expect an increase in their company’s R&D spending
- 82 percent in Southeast Michigan plan to hire more talent in 2016
Southeast Michigan is a better place for technology professionals to build their careers than Silicon Valley.
- 74 percent in Southeast Michigan believe the area has a comparatively lower cost of living, compared to 48 percent in Silicon Valley
- 81 percent in Southeast Michigan agree this region provides more networking opportunities than other metro areas, compared to 77 percent in Silicon Valley
- 85 percent in Southeast Michigan believe this region has leading academic institutions for self-advancement, compared to only 68 percent in Silicon Valley
Southeast Michigan is a better place for technology companies to do business than Silicon Valley.
- 74 percent in Southeast Michigan believe it is easier for technology companies to retain talent in this region, compared to only 67 percent in Silicon Valley
- 83 percent in Southeast Michigan agree that technology companies can have greater return on investment in the metro area, compared to only 69 percent in Silicon Valley
- 68 percent in Southeast Michigan agreed that technology companies can benefit from the lower cost of capital in the metro area, compared to 60 percent in Silicon Valley