The Economy of Dearborn, Michigan

Introduction to Dearborn’s Economy

Dearborn has a diverse and thriving local economy. As home to the world headquarters of Ford Motor Company, automotive manufacturing and research has an outsized impact. But the city also hosts a growing advanced manufacturing sector, as well as health care, retail, hospitality and tourism industries. This article will provide an in-depth overview of all facets of Dearborn’s economy.

Major Industries and Major Employers

Automotive Manufacturing

As the longtime home of Ford Motor Company, automotive manufacturing and automotive research and development are central to Dearborn’s economic identity. Ford has more employees in Michigan than any other state, with over 50,000 jobs tied directly to the company. Automotive suppliers and advanced manufacturers working with lightweight materials, mobility technology, batteries and sensors have also located in Dearborn to be close to Ford’s headquarters and local talent pool.

Major employers in the automotive sector include:

• Ford Motor Company (World HQ)
• Magna International
• Detroit Manufacturing Systems
• Mahle Behr USA

Healthcare and Biomedical Research

Healthcare employs over 7,000 people in Dearborn and is another vital industry. Beaumont Hospital is the city’s largest employer after Ford. Additional major healthcare employers include Oakwood Hospital and Dearborn Surgical Center.

The Henry Ford Centennial Library and Wagner Archives attract medical researchers from around the world due to their extensive holdings in the field. Biomedical startups have located around Henry Ford Health System due to research collaborations.

Major healthcare and biomedical research employers include:

• Beaumont Hospital (Dearborn)
• Oakwood Hospital
• Henry Ford Health System
• Dearborn Surgical Center
• Midwestern Biological Research

Food Production & Distribution

Dearborn is home to one of the largest concentrations of food production and distribution in the Midwest. Facilities for national brands like Better Made Snack Foods, Kowalski Sausage Company, and Damascus Bakeries create local jobs. The city’s adjacency to Detroit Metro Airport and major rail and highway networks make it an distribution hub companies like Red Bull and Fresh N Local Foods.

Major food production and distribution employers include:

• Better Made Snack Foods
• Kowalski Sausage Company
• Damascus Bakeries
• Red Bull Distribution Company
• Fresh N Local Foods

Retail, Hospitality and Entertainment

Downtown Dearborn and East Dearborn each have thriving pedestrian-scale retail districts with independent shops, restaurants, cafes and entertainment venues that employ thousands. Retail chains like Target and Best Buy have located near Ford headquarters. And tourism drivers like The Henry Ford History Museum, the Ford Estate, and the MGM Grand Casino all provide jobs in hospitality.

Major employers in retail, hospitality and entertainment include:

• The Henry Ford Museum/Greenfield Village
• MGM Grand Detroit
• Target Corporation
• Best Buy co. Inc.
• Doubletree by Hilton

Small Businesses in Dearborn

Dearborn’s economy is also fueled by thousands of family-owned small businesses, from restaurants to accounting firms to salons. A few notable small businesses include:

Retail

• Dearborn Music (music equipment)
• Ten Thousand Villages (fair trade crafts)
• Amiry Jewelry (custom jewelry)

Restaurants & Cafes

• La Ziza (Mediterranean)
• Steve’s Backroom ( bars and grills)
• O’Kelley Coffee (café)

Services

• J Kaddo Salon (hair salon)
• Hollander & Lone (accounting)
• Frame Fit (custom framing)

Immigrant-owned small businesses that reflect Dearborn’s diversity are also commonplace, like Iraqi-owned Rafidein Printing and Yeminite-owned Germack Coffee Roasters.

Real Estate and Development

Real estate development has accelerated in Dearborn, reflecting strong economic fundamentals. Below are details on major development projects, housing, office space and more.

New Commercial Developments

• Wagner Place – Downtown development with 225 apartments and retail
• The Gateway – East Dearborn development with offices and a hotel
• OHM Modular Office Building – Ultra efficient modular office space

New Housing Units

Over 2,000 new market-rate and affordable housing units have been recently constructed or are in development. Units include apartments, condos and townhouses.

Office Vacancy Rates

At just 6.3% as of 2022, Dearborn has one of the lowest office vacancy rates in Metro Detroit. Space is quickly leased as companies seek modern space close to Ford Motor Company and area talent.

Retail Vacancy Rates

Retail vacancy rates have dropped below 5%, down from over 25% in 2013. As available space has been quickly leased, rents have risen over 30% since 2018.

Local Jobs Outlook

Economic projections call for continued job growth of over 10% in healthcare services, computer systems design, scientific research and tech services. Automotive manufacturing may lose some jobs to automation but remains a vital anchor employer.

Government Financial Incentives

Dearborn offers competitive tax incentives for eligible companies. These include property tax abatements on new developments. Companies working in target industries like information technology, biomedical services, digital media and environment tech are eligible for additional subsidies.

Conclusion

From automotive Fortune 500 companies to upstart tech firms to family-owned bakeries, Dearborn has a diverse, resilient, and growing economy. A highly-trained workforce, extensive logistics infrastructure, available real estate and strong city finances help attract and retain employers. While challenges remain, indicators suggest economic expansion and job growth in Dearborn’s future.