The City of Ann Arbor, Michigan

The City of Ann Arbor, Michigan

Ann Arbor, Michigan is the 7th largest city in Michigan, having an estimated population in 2004 of 113,5671. It is located in the East North Central region of the Midwest region of the United States2.

Ann Arbor lies in Washtenaw County (FIPS=26161)3, which is the only county in the Ann Arbor Metropolitan Statistical Area (11460). As you might have figured, Ann Arbor is the primary city of this statistical area.4 In terms of urban influence, Washtenaw County is classified as a small metropolitan area with fewer than 1 million residents. 5 In terms of its rural composition, Washtenaw County resides within a metro area containing 250,000 to 1 million people. 6

Ann Arbor has no real advantage when it comes to raw resources. It sits too far from Lake Erie to experience any transportation benefits, and the river that cuts through the city is too shallow and winding to be of any major commercial value. It doesn’t sit on any valuable mineral deposits, nor does it have any spectacular resources for heavy industries. There are reasons one would locate in Ann Arbor, though.

Numerous technology dependent companies call Ann Arbor home. These companies require highly skilled employees and being in general proximity to the University of Michigan makes that possible. One such employer is the EPA’s National Vehicle and Fuel Emissions Laboratory (NVFEL)7. Another company that requires skilled researchers is Pfizer. Though Pfizer is closing its doors in Ann Arbor, numerous startup companies are purchasing laboratories and hiring skilled graduates to continue pharmaceutical research8.

This is an obvious example of agglomerate power. Though all of these firms compete both for market share and skilled labor, they still share a close proximity to each other. There are external increasing returns to scale which is due directly to the environment (not just physical) of Ann Arbor.

Proximity is its greatest resource. As mentioned above, its spatial relationship the University of Michigan is invaluable. It is also located along two major highways in Michigan: Highway 23, that runs north to south, and Interstate 94 which runs east to west, straight through Detroit and pretty much links up with Toronto, Canada. Ann Arbor is a medium order city, and provides medium order services. The reason for this is due to the fact that Detroit (which has a population more than 7 times that of Ann Arbor) is located very close to Ann Arbor.

(The following information can be found on Table B)

Before we delve into more specific issues, let us consider some general information. Despite the fact that population of Washtenaw is growing, Ann Arbor’s population is shrinking. From 2000 to 2006, Washtenaw county posted an 6.55% population growth (a yearly geometric mean