Earlier this spring, Sterling Heights city leaders took stock of their hardy defense industry and committed to the theory that the best offense is a good defense. A proactive decision was made in partnership with their neighbors in Warren and The Arsenal Alliance was formed, a regional economic development partnership that aims to support and expand a sector of their local economy that is critical to the financial fortunes of Warren and Sterling Heights, Michigan’s third- and fourth-largest cities, respectively.

The two cities have committed to fund The Arsenal Alliance by combining to contribute $500,000 to the regional partnership each year – and with good reason. Warren and Sterling Heights, Michigan’s respective third- and fourth-largest cities, are both state and national leaders in the defense industry; their shared defense corridor employs approximately 47,000 people, with those jobs supporting another 71,000 local jobs on top of that. It’s an industry on which the workers in these two cities rely: the defense industry in Sterling Heights and Warren creates $8.7 billion in wages. Nearly 65 percent of Michigan’s defense industry can be found in Macomb County, and much of it in the county’s two largest cities.

So it’s no surprise that Sterling Heights is committed to its defense industry and the economic benefits that it so robustly enjoys, but that doesn’t make the development of The Arsenal Alliance any less groundbreaking.

“The defense sector is critically important to the State of Michigan and Macomb County,” said Sterling Heights Senior Economic Development Advisor Luke Bonner when announcing the alliance this past April. “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.”

File photo: David LewinskiInside DCS Corporation in Sterling Heights.While this shared investment by two of Michigan’s largest cities is still in the early stages of research and analysis, Sterling Heights has already scored wins for its defense industry in the time since the alliance was first announced. And though the Arsenal Alliance wasn’t specifically identified as a reason for its decision to expand into Michigan with its newly opened office in Sterling Heights, the city’s unique defense industry infrastructure was indubitably a deciding factor for Rafael Systems Global Sustainment. The American subsidiary of Rafael Advanced Defense Systems announced its plans for stateside expansion with the opening of its Michigan technology and management headquarters at Velocity earlier in June.

“As we grow, we are deeply focused on contributing to the economic and strategic vitality of this region,” says Dr. Melanie Stager, RSGS program and capture director. “This office is both a physical and symbolic investment in the future of defense in Michigan.”
Photos: David LewinskiVelocity is located at 6633 18 Mile Rd. in Sterling Heights.
That RSGS landed in Michigan and at the Velocity business and innovation hub is no coincidence. The business center operates as a key cog in the Sterling Heights entrepreneurial and economic ecosystem – and that very much includes the defense industry. Velocity is designated as a Michigan Economic Development Corporation SmartZone, an innovation hub for high-tech and advanced manufacturing businesses, entrepreneurs, and researchers. Velocity is also home to the Macomb County International Landing Zone, an especially important factor in RSGS looking to establish itself and expand in Michigan.

It’s the International Landing Zone that is able to offer companies like RSGS enticing perks like free office space and business acceleration programs, and that’s exactly what Velocity specializes in.

“This launch is about more than a new building – it’s about long-term investment in American capability,” says Marc Shepard, vice president and general manager at RSGS. “We’re building sovereign U.S. operations that allow us to be agile, integrated, and fully aligned with national priorities.”

The City of Sterling Heights recently stressed the importance of its defense industry in the city’s recently approved 2025 Master Plan, the guiding document for economic and community development in Sterling Heights for the next 10 years. And should the Arsenal Alliance succeed in its mission, local workforce development programs will have to generate the talent necessary to fill those pipelines.
File photo: David LewinskiAn office for the Michigan Defense Center inside Velocity in 2022.
The city seemingly has that covered, too. Look no further than a 100,000 sq. ft. facility on Van Dyke Avenue, which, along with nearby Mound Road, is considered a primary wing of the Corridor of Defense. It’s there where the Southeast Michigan Construction Academy (SEMCA) nonprofit has announced plans to relocate their main campus from Madison Heights. The $10 million development will feature labs and classrooms outfitted with the latest state-of-the-art equipment, and all to provide hands-on instruction for the trades. It’s a list that includes electrical, carpentry, HVAC, welding, and more.

"SEMCA’s decision to expand to Sterling Heights supports our city’s commitment to workforce development and economic growth," said Mayor Michael Taylor. "With nearly 100,000 square feet of new training space, this facility will not only provide life-changing career opportunities for residents across Southeast Michigan but will also strengthen our local economy for years to come. We’re proud to support SEMCA’s vision and excited about the positive impact they’ll bring to our community."