The Economy of Farmington Hills, Michigan

Farmington Hills is a large suburban city located in southeastern Michigan, around 20 miles northwest of downtown Detroit. With a population of over 82,000 residents, Farmington Hills has a robust and diverse economy anchored by several major industries. Some key facts about the Farmington Hills economy:

• The largest employment sectors are health care, retail trade, and professional/technical services. Major employers include Beaumont Health, Farmington Public Schools, Bosch, and more.
• Farmington Hills has a median household income of around $75,000, which is significantly higher than the national median. The city has low unemployment and poverty rates.
• Numerous corporate headquarters and regional offices are located in Farmington Hills due to its proximity to Detroit and educated workforce. Notable companies headquartered here include Ally Financial, Cooper-Standard Automotive, and Flagstar Bank.
• The city has excellent transportation infrastructure including access to major highways, Detroit Metro Airport, and public transit. This connectivity supports business activity and growth.
• Farmington Hills is home to a bustling retail sector concentrated in large shopping centers. Popular malls include Twelve Oaks Mall and West Oaks Shopping Center.
• Continued development of high-end housing, corporate campuses, and mixed-use projects point to Farmington Hills’ economic strength going forward.

Below we’ll explore key industries, major employers, income and wages, transportation access, and other factors driving the Farmington Hills economy.

Major Industries and Employers

The largest employment sectors in Farmington Hills are:

Healthcare – Beaumont Health is the city’s top employer with several major hospital campuses. Henry Ford Medical Group and many other health practices and services also have a strong presence here. The highly skilled healthcare workforce contributes greatly to the local economy.

Retail Trade – Numerous major retail centers provide thousands of jobs. Twelve Oaks Mall is one of the largest malls in Michigan with over 250 stores. West Oaks Shopping Center also attracts shoppers from across the region.

Professional, Scientific, and Technical Services – The skilled knowledge workforce is a hallmark of Farmington Hills. Major employers in professional services include accounting firms like Plante Moran and IT consulting companies.

Manufacturing – Manufacturing remains an important part of the diversified business mix in Farmington Hills. Automotive suppliers like Cooper-Standard Automotive are major advanced manufacturers in the city.

Finance and Insurance – Finance and insurance companies are attracted to Farmington Hills due to its educated workforce. Ally Financial, Flagstar Bank, and auto insurers have regional hubs here.

Other major employers located in Farmington Hills:

• Farmington Public Schools
• Robert Bosch GmbH
• Hitachi
• United Shore Financial Services
• Farmers Insurance Group

Income and Wages

Farmington Hills enjoys high household income levels and low unemployment:

• The median household income is $75,080, significantly above the national median of around $62,000.
• Only 5.1% of individuals live below the poverty line.
• Unemployment rate is around 3.0%, below state and national averages.
• Per capita income is over $44,000.

Higher wages in major industries like healthcare and professional services contribute to strong income levels. The concentration of high-paying jobs attracts talent and boosts consumer spending power in the local economy.

However, economic disparities do exist. Southwestern parts of Farmington Hills have higher poverty rates than the rest of the city. Addressing inequality while maintaining economic competitiveness will be an important long-term priority.

Transportation Access and Infrastructure

Farmington Hills’ strategic location and robust infrastructure make it highly accessible:

• Several major highways pass directly through or near the city, including I-696, I-275, and M-5. These provide quick access to downtown Detroit in around 20 minutes.
• Detroit Metro Airport is just 25 miles away. As an international hub, this provides connectivity for business travel and cargo.
• Farmington Hills has a Walk Score of 35, indicating most errands require a car. However, downtown areas are somewhat more walkable.
• The SMART public bus system offers routes connecting Farmington Hills to Detroit and other suburbs.
• An Amtrak station in nearby Farmington provides passenger rail service.
• Bike lanes and pathways make cycling another option for commuting.

Overall, the transportation network provides businesses and residents with convenience and connections supporting economic activity. As future investments are made, encouraging multi-modal transit will be important for sustainability.

Commercial Real Estate and Development

Demand for commercial real estate remains strong in Farmington Hills:

• Class A office spaces are concentrated along Northwestern Highway and near major malls. Vacancy rates are low at around 10% due to demand from corporate tenants.
• Industrial parks along I-696 provide centrally located distribution and manufacturing facilities.
• Retail centers continue to attract new stores and restaurants, such as recent additions like REI Co-op and Dave & Buster’s at Twelve Oaks Mall.
• Mixed-use developments are adding new housing, retail, and offices in downtown areas to create live-work-play environments.

Notable recent and upcoming development projects include:

• A new 9-story mid-rise office building at the Farmington Hills Corporate Center.
• Revitalization of the World Wide Center on Haggerty Road into a walkable mixed-use neighborhood.
• A 150-room hotel near the Farmington Hills Golf Club to support business and leisure travel.

Continued investment reflects confidence in the city and points to a strong economic outlook. The diverse mix of commercial real estate is a major draw for companies.

Business Climate and Incentives

Farmington Hills works proactively to maintain a business-friendly climate:

• Tax incentives like Commercial Rehabilitation districts have spurred downtown redevelopment.
• The city partners with the Farmington Area Chamber of Commerce to promote business growth through events, networking, and training.
• Streamlined permitting and licensing processes save companies time and money.
• Farmington Hills employs economic development staff focused specifically on attracting, retaining, and growing businesses.
• Co-working spaces and small business support services provide affordable resources for entrepreneurs.
• High-speed fiber optic internet through Upward Information Technology Infrastructure supports digital transformation.
• Rankings like #17 Best Place for Business and Careers by Forbes showcase the city’s advantages.

The welcoming environment, strategic location, and skilled workforce make Farmington Hills a premier suburb for companies seeking talent and connections to the broader Detroit metro region.

Outlook

Farmington Hills has major assets that will continue to drive prosperity:

• Strong knowledge-based sectors like finance and professional services will lead job creation. The highly educated workforce is a magnet for corporate investment.
• Health services will grow as the population ages and medical technologies advance. Beaumont Health’s expansion exemplifies this trend.
• Retail will thrive due to rising consumer spending and demand for mixed-use living spaces. However, adapting to e-commerce disruption will be critical.
• Advanced manufacturing, including electric vehicles and mobility tech, will play an increasing role given Detroit’s automotive heritage.
• Commercial and residential development will reshape downtowns into vibrant live-work-play communities that attract millennials.

However, the city faces challenges to sustain long-term growth:

• Attracting and retaining young professionals will be key to filling high-skill jobs. Partnerships with universities and community organizations can help achieve this.
• Supporting startups and small businesses will ensure economic diversity. Incubators like the Farmington Innovation Center provide resources, but more investment is needed.
• Infrastructure modernization, including roads and broadband, is necessary to maintain competitiveness. This requires coordinated planning and funding prioritization.
• Suburban office parks need refreshing to provide the amenities younger workers expect. Retrofitting these areas into mixed-use spaces can unlock their potential.

Overall, Farmington Hills’ diversity and connections to Detroit make it well-positioned for continued prosperity. Strategic planning and public-private collaboration will ensure it remains one of Michigan’s premier economic hubs. The future is bright.