The Opportunity

The city of Detroit is a multi-billion dollar B2B economy, and sourcing locally is a win-win-win situation. For buyers, a recent study of procurement practices found that local sourcing could lower costs by up to 25%. For suppliers, the same research reported the potential of $2.5 billion in projected new revenue if they did more business with other Detroit companies. And finally, for the city of Detroit, increasing local sourcing could generate up to 7,700 new jobs.

D2D connects Detroit companies with quality local suppliers who understand the local market, offer tighter times and quick responses. At the same time D2D is building a community of businesses that are supporting each other’s economic success.

Using tools such as the Pure Michigan Connect database, selected buyer and supplier events, and DEGC’s experienced business development staff, D2D expects to —

• Increase the levels of spend from local buyers to local suppliers in the city of Detroit, spurring an increase of employment and investment.
• Increase the capacity of local suppliers to respond to new growth opportunities.
• Encourage and support a culture amongst city businesses to support each other’s economic success.
• Build the capacity of the Detroit business support system to help city businesses unlock growth opportunities.

 

The History

D2D is an outgrowth of innovative work spearheaded by Midtown Detroit Inc. (MDI) and three Midtown anchor institutions, Wayne State University, Henry Ford Health System, and Detroit Medical Center that together spend approximately $1.6 billion from external suppliers.

In 2010, MDI and the three anchors worked with U3 Ventures to develop Source Detroit, a program to increase the share of those contracts going to Detroit businesses. Detroit Economic Growth Corporation (DEGC) has supported their effort by helping to recruit Detroit businesses that could compete for contract opportunities. Source Detroit has convened commodity groups around increased spend opportunities, held a Detroit-based vendor fair and communicated the need for a shared supplier database. To date, the program has generated approximately $16.5M in spend transfers to Detroit-based companies. This impact has had immeasurable effects throughout the local business community.

DEGC saw the opportunity to expand the impact of Source Detroit and help businesses throughout Detroit grow by building the culture of businesses helping each other succeed in the city. It commissioned the Initiative for a Competitive Inner City to conduct an analysis of the citywide opportunity. ICIC found that growing the local business-to-business sector in Detroit could support an additional 7,700 jobs and over $2.5 billion in firm revenue. Growing the local business-to-business sector has also been called out as an important part of the city’s economic growth strategy in the Detroit Future City plan.

D2D has been informed by Source Detroit, the Michigan Pure Michigan Connect Program (PMBC), and other models throughout the country including Cleveland, Pittsburgh, Philadelphia, El Paso, New York and San Jose. It is funded through the generous support of the New Economy Initiative for Southeast Michigan. To date, the D2D team has been focused on recruiting large buyers, organizing strong Detroit suppliers, creating a marketing strategy, and completing two research projects in order to better understand opportunities and challenges in the local business-to-business arena.

The Partners

DEGC

Detroit Economic Growth Corporation has served as the lead implementing agency for business retention, attraction, and economic development initiatives in the city of Detroit since 1978. DEGC is considered a trusted agency in supporting many community and economic development initiatives through the years. In 2012 alone, projects managed or assisted by DEGC through its staff work for public authorities, or its other initiatives are expected to lead to $486 million in private and public investment in the city of Detroit when they are completed, generating new or saving approximately 2,000 jobs in the city.

DEGC’s Business Development program manages various programs to help businesses start, grow and expand in the city of Detroit. Some of these programs include Business Attraction, Business Retention, the Business Support Network (BSN), Creative Corridor Incentive Fund (CCIF), D2D, the Green Grocer Program, Renewable Energy Detroit Initiative (REDI) and REVOLVE.

NEI

The New Economy Initiative for Southeast Michigan (NEI) was launched in 2008 as a unique philanthropic initiative aimed at helping to restore southeast Michigan to a position of leadership in the new global economy. NEI is committed to increasing prosperity and expanding opportunity for all residents and communities in the region. Ten national and local foundations have committed $100 million to this eight-year initiative to accelerate the transition of metro Detroit to an innovation-based economy.

The D2D program is proud to be supported by NEI and to incorporate their vision of capturing and creating new markets in an equitable manner. We thank them for their support.

D2D Program Contact

D2DBUSINESS.ORG
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