Sterling Heights and Warren Announce New Defense Industry Economic Development Partnership
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In a bold move to reinforce their position as national leaders in defense manufacturing and innovation, today the Sterling Heights and Warren city councils approved a groundbreaking regional economic development partnership focused on supporting and expanding the multi-billion defense industry in Warren and Sterling Heights: The Arsenal Alliance. The communities are contributing $500,000 annually to bring millions in funding for strategic economic development goals that will support continued investment in our vital defense industry.



Recognizing the region's rich defense manufacturing history and strategic importance of the Defense Corridor that runs through both cities, this collaborative initiative will augment the defense sector by establishing a shared economic development team to provide contractual services. This team will be dedicated to advancing the defense and aerospace industries in this corridor and will work in tandem with state, county, and local stakeholders to protect, maintain, and grow the region's established and emerging defense assets while positioning the two communities to lead the next era of national defense innovation.

This collaboration will play a vital role in leading and executing a long-term strategy for defense industry sustainability and growth. Key responsibilities of the economic development team will include:

• Analyzing local, national, and global defense trends to benchmark performance and identify areas for growth.
• Support existing workforce development programs and ensure the defense community has access to STEM education efforts, workforce training and talent pipeline programs.
• Promoting policies at all levels of government that support the defense sector and emphasize its economic and technological contributions.
• Strengthening connections and collaboration among those in the defense industry, government agencies, educational institutions, and non-profits by regularly uniting regional partners to address challenges, identify attraction opportunities and enhance military readiness.
• Developing a forward-looking strategy to keep the region competitive amid evolving technologies and global defense market dynamics.

The initiative will be rolled out in three strategic phases including stakeholder identification/research, strategic planning/road mapping and implementation that includes regular tracking of progress and scorecard evaluations.

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The defense industry has long been a cornerstone of the local economy. Macomb County — anchored by Sterling Heights and Warren — accounts for approximately 65% of all defense work in Michigan, highlighting the area's pivotal role in national defense. The Detroit Arsenal located in Warren, home to the U.S. Army Tank-Automotive and Armaments Command (TACOM) headquarters, is the only active-duty U.S. military installation in the state of Michigan and the only active-duty Army installation in three states (Michigan, Ohio and Indiana). Home to many organizations that generate U.S. military readiness around the world, Detroit Arsenal and its Michigan-based workforce of more than 6,000 people contribute billions of dollars in economic impact to the state's economy each year. Sterling Heights is home to defense and aerospace juggernauts like BAE Systems, General Dynamic Land Systems (GDLS), Rheinmetall, to name a few supporting thousands of high paying jobs.

Notable statistics include:

• Over $65 billion in Department of Defense contracts awarded to Macomb County businesses since 2000.
• $3.21 billion in defense contracts awarded in 2024 alone, spread across 4,808 individual contracts.
• $6.7 billion in Gross Regional Product related to the defense sector.
• Robust specialized employment for military armored vehicle, tank, and tank component manufacturing — a national benchmark.
• $25 billion in defense contracts secured by 413 Macomb County businesses from 2010–2020.
• Within the defense corridor, there are roughly 47,000 people employed, supporting an additional 71,000 local jobs, and creating a total economic impact for Sterling Heights and Warren of $8.7 billion in wages.

"The strength of the Arsenal Alliance is collaboration," said Sterling Heights Mayor Michael Taylor. "We'll be using this alliance to best support the long-term success of the defense corridor and preserve the 10,000+ high-paying jobs it supports, not only for our two communities, but also for the rest of the nation. We will be working hand in hand with the Michigan Office of Defense Aerospace and Innovation (ODAI) and Macomb County leaders, legislative teams and many other defense partners to supplement their good work protecting and growing the defense sector."

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"This is about preparing for the future," said Warren Mayor Lori Stone. "When we all work together, we all win. We look forward to more defense contracts awarded to local businesses, more jobs and an enhanced workforce. TACOM and Ground Vehicle Systems Center, both headquartered in Warren, are key contributors to this economic engine and underscore the importance of a unified strategy to support the vast network of local companies that supply and innovate for the defense sector."

"The defense sector is critically important to the State of Michigan and Macomb County," said Sterling Heights Senior Economic Development Advisor Luke Bonner. "It's imperative that Warren and Sterling Heights do everything possible to protect these valuable assets unmatched elsewhere in the Country. Our two cities need to join the existing state and county efforts to achieve long-term success. The Arsenal Alliance reflects the all-hands-on-deck call to action necessary to bolster the defense industry in two of the state's largest cities."

Through the Arsenal Alliance, the cities of Sterling Heights and Warren are proud to lead the way in this innovative approach to regional collaboration and economic development. With the shared vision and resources of both communities, this partnership will support the region's position as a global hub for defense innovation that drives economic growth, enhances national security and ensures the region's continued leadership in military technology for years to come.

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