Waterloo Region tech sector eyeing Detroit as competitor for talent

It’s no secret, Kitchener-Waterloo is known for being a tech powerhouse.

Waterloo Region currently ranks as the #1 small tech talent market in North America for a fourth consecutive year, according to the CBRE 2024 Scoring Tech Report. Overall, the region was ranked #18.

But it seems one North American city is emerging as a competitor – Detroit.

It’s seeing a resurgence following a years-long workforce crisis.

“Local, state and federal officials recognized that and they responded with major resources and there was a sense of urgency. But a lot of money has been thrown at it,” explained Tony LaMantia, CEO of the Waterloo Region Economic Development Corporation.

In that same CBRE report, Detroit jumped from #27 to #22 overall this year, while Waterloo Region stayed the same.

Part of what’s leading this turnaround is a new world-class technology innovation hub at Michigan Central Station.

It’s home to more than 100 startups and is becoming, essentially, what Communitech is to Waterloo Region.

Communitech’s CEO has taken note, but is quick to highlight Waterloo Region’s successes too.

“There’s nearly 30,000 tech workers here, and we’re solidly ahead of many U.S. cities, including Detroit,” Chris Albinson said.

In February, he and other representatives from Waterloo Region took a bus trip to Detroit and learned what that city is doing right.

Albinson praised Detroit’s new downtown innovation district and said part of what’s driving the city forward is a partnership between the automotive and tech industries.

He adds, Detroit’s major professional sports franchises are also a big draw for young tech talent.

“If you want to be globally competitive, I think you want to have all of those aspects of civic life – a great place to live and a great place to work. And we need to go faster if we’re going to keep up with places like Detroit,” Albinson said.

They’re also keeping an eye on Waterloo Region’s tech sector across the border.

“We know what’s going on in the Waterloo, Cambridge and the Toronto corridor very well too,” said Glenn Stevens of the Detroit Regional Chamber, and also the vice-president of automotive and mobility initiatives for that organization.

He sees Detroit’s rise in the North American tech space as an opportunity for collaboration between Ontario and Michigan.

“We have an incredible trading partnership just in the automotive industry and we’re about to have a new bridge,” Stevens said. “Michigan Central and the innovation that’s going on in downtown Detroit is really exciting and really important to Detroit and Michigan’s future, but it’s directly linked to Ontario and Waterloo.”

Albinson and Communitech see the partnership opportunities too. But he wants the region to remain among the best and says it takes a community effort to ensure it’s an attractive place to work and play.

“The reality is we’ve got some big challenges in front of us. We need about 70,000 new housing units to be created. We need better and faster transit. We need all-day, two-way GO Transit to actually exist,” said Albinson. “I think if you want to stay competitive, you really need to go after the opportunities and be ambitious.”