Detroit is an up-and-coming player in the tech scene, building and diversifying after years of manufacturing and automotive experience.
The city is well-located, too, strategically located near huge consumer markets on both sides of the Canada-US border.
Hold on. This story sounds familiar…
Like Detroit, Waterloo is a high-growth tech hub located near several major cities with a long history of manufacturing. Given the similarities in expertise, experience and strategic location, Waterloo and Detroit make for an excellent matchup.
Comparative data is a key component of international expansion, as it helps business leaders determine which region is optimal for their future growth and success. The fastest way to identify contenders from your pool of expansion options is through data that analyzes talent, workforce, cost, and quality of life trends.
Our recently released Technology Data Book features comparisons between eleven different tech hubs across North America, focusing on numbers at the core of almost every expansion decision in the tech industry. We’ve already compared Silicon Valley, New York and Pittsburgh – Detroit is up next to take on Waterloo.
Data Point #1: Tech workforce size and growth
| Total Tech Workforce | Concentration | Growth (5 years) | |
|---|---|---|---|
| Waterloo | 29,100 | 9.6% | 45.5% |
| Detroit | 97,720 | 4.6% | -3% |
Source: CBRE Scoring Tech Talent Report 2024
Detroit has a much larger tech workforce than Waterloo region, with nearly 100,000 workers compared to Waterloo’s 29,100. However, size doesn’t tell the full story.
The Waterloo community boasts one of the highest tech talent concentrations among the 11 hubs in our Technology Data Book, with 9.6% of its workforce in tech—more than double Detroit’s 4.6%. And while Detroit’s tech workforce has declined (-3%) over the past five years, Waterloo’s has surged by 45.5%.
In fact, CBRE reported that Waterloo was one of the top five markets with the highest tech job growth rates in 2024 – out of fifty North American markets.
Key takeaway: Detroit’s workforce is larger, but Waterloo’s is growing faster and has a higher talent concentration.
We also benefit from Toronto’s massive ecosystem. The Toronto-Waterloo Corridor stretches between both communities and boasts a cumulative tech workforce of more than 343,200.
Data Point #2: Population growth
| Overall Growth Population | Growth in the Age 20-30 Demographic | Growth in Age 30-40 Demographic | |
|---|---|---|---|
| Waterloo | 3.7% | 29.2% | 20.2% |
| Detroit | 0.5% | -3.4% | 7.7% |
Source: Lightcast, 2023. Population growth from 2017-2022 at the CD/MSA level; CBRE Scoring Tech Talent Report 2024
Right across the row, Waterloo’s populations soar above Detroit’s. In contrast to Detroit’s faltering populations, especially in the 20-30s demographic, Waterloo is bursting with bright, young and in-their-prime talent.
The Waterloo ecosystem’s impressive density is an indicator of the quantity and quality of our tech workforce. Our growth in the 20-30s and 30-40s demographics demonstrates how Waterloo’s tech community is attracting – and retaining – talented young professionals. Waterloo is a place where people want to work and innovate, as well as live and play.
Data Point #3: Estimated one-year company costs
| Estimated cost (USD) | |
|---|---|
| Waterloo | $37,561,739 |
| Detroit | $50,470,002 |
Source: CBRE Scoring Tech Talent Report 2024 – based on office space and wages for 500 people
With a price tag of $50,470,000, Detroit is a much more expensive location to set up shop – $ 13M more to be exact.
Based on wages for 500 people and 60,000 square feet of office space, this data set showcases Waterloo’s affordability. CBRE reports that tech wages are 17% higher in the United States, which contributes to Detroit’s expenses and Waterloo’s lower annual costs, but the exchange rate is also a big driver. The Waterloo area is known for its business affordability, with lower company costs and corporate taxes.
Data Point #4: Payroll taxes
| Payroll Tax per Software Engineer (USD) | |
|---|---|
| Waterloo | $4,258.72/year (based on a salary of $82,515) |
| Detroit | $9,302.32/year (based on a salary of $117,697) |
Source: Salaries from Economic Research Institute, Q3 2024. Taxes from respective governments.
Payroll taxes are a key factor in Waterloo’s overall affordability, especially in an industry where operational costs continue to rise. In Detroit, payroll taxes are more than double those in Waterloo, adding a significant financial burden for companies scaling their workforce.
For businesses planning rapid expansion, choosing a jurisdiction with lower payroll taxes can free up capital for talent investment, innovation, and long-term growth—without the concern of rising tax obligations hindering progress.
Data Point #5: Talent diversity
| Immigrant as a % of the total population | |
|---|---|
| Waterloo | 25.8% |
| Detroit | 10% |
Source: Statista, January 2023
Waterloo Region’s population is significantly more diverse than Detroit’s – with 2.5x the immigrant population. Our world-renowned post-secondary schools attract aspiring talent from around the world, contributing to our tech ecosystem in several ways, and Canada’s excellent business immigration programs make it easy for companies to recruit top global talent.
Our diversity is an important element of our success as a thriving tech hub and key to the quality of life we enjoy here. The Waterloo community has a rich blend of cultures and backgrounds, and we pride ourselves on creating a vibrant and inclusive community.
Our new Data Book offers thirteen different tables comparing salaries, taxes, population growth, talent diversity and more across eleven North American tech communities, including Austin, Seattle, Pittsburgh, New York and Silicon Valley. Download your free copy now.