DTE Energy on trajectory to exceed $1 billion spend with Michigan-based companies in 2016
Michigan suppliers highly competitive with national peers on cost and quality
DETROIT, July 6, 2016 /PRNewswire/ -- DTE Energy has surpassed its first quarter target and is on track to fulfill its pledge to bring more work back to the state by spending more than $1 billion with Michigan-based companies this year. DTE's Chairman and CEO Gerry Anderson today announced that through the month of May, DTE spent more than $480 million with Michigan-based companies, well above its first quarter target of $333 million. As a result, the company has revised its 2016 forecast upward to between $1.1 and $1.2 billion.
"Our efforts to transfer our purchases to local suppliers began during the economic downturn in 2010," said Anderson. "Over the past five years, we have increased our spend with Michigan suppliers from $475 million in 2010 to $945 million in 2015. This is a cumulative increase of $1.7 billion that has created 8,500 new jobs as a result. As we deepen our ties to Michigan's supplier base, cost and quality remain priorities, and we've found that Michigan's companies are able to match or beat companies from around the country in these areas."
DTE is accomplishing this while ensuring low costs and high quality, demonstrating Michigan's overall competitiveness.
"A great example of our work in this area is a minority-owned company called URG. URG is a company that locates gas lines so that construction workers don't damage them," Anderson said. "When we began working with them more than six years ago, they were a start-up with a handful of employees. Today they have 462 employees and are one of our best contractors in this area."
DTE has also made a commitment to support businesses within the city of Detroit, by increasing spend with Detroit-based suppliers, as well as with minority and women-owned businesses. DTE has doubled its Detroit spend over the past five years from $80 million to $160 million. So far this year, the company has spent $112 million within the city.
According to Anderson, one of DTE's top Detroit suppliers is Detroit Labs LLC. The company helped DTE develop its new Energy Outage Tracker app. The app lets customers report outages, track the process as power gets restored, and find places with the lights still on while they wait.
"With the option of tech companies across the U.S., including experts from Silicon Valley, we chose to keep our spending right here in Michigan. When Detroit companies like Detroit Labs succeeds, DTE succeeds, and all of Michigan succeeds," Anderson said.
In addition to the company's Michigan and Detroit spend, DTE is also committed to developing a diverse, inclusive supply base. DTE's Supplier Diversity program is part of its overall business strategy to help the company – and the businesses that support them – succeed in an increasingly competitive environment. The company provides minority, women-owned and military veteran-owned firms with advocacy, training, mentoring and business opportunities and development experiences. DTE also has doubled its efforts with minority and women-owned businesses, having gone from $175 million in 2011 to $370 million in 2015.
"DTE works day in and day-out to provide affordable, reliable service to our customers and it's even more rewarding when we deliver on this promise while investing in Michigan-based businesses. In 2015, we exceeded our goal, and we're doing it again in 2016, helping to drive the Michigan economy," said Anderson. "Working with our suppliers every step of the way allows both DTE and its partners to achieve great things. The collective efforts bring new businesses and jobs to Michigan, while strengthening the vitality of our communities."
About DTE Energy
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric utility serving 2.2 million customers in Southeastern Michigan and a natural gas utility serving 1.2 million customers in Michigan. The DTE Energy portfolio includes non-utility energy businesses focused on power and industrial projects, natural gas pipelines, gathering and storage, and energy marketing and trading. As one of Michigan's leading corporate citizens, DTE Energy is a force for growth and prosperity in the 450 Michigan communities it serves in a variety of ways, including philanthropy, volunteerism and economic progress. Information about DTE Energy is available at dteenergy.com, twitter.com/dteenergy and facebook.com/dteenergy.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dte-energy-on-trajectory-to-exceed-1-billion-spend-with-michigan-based-companies-in-2016-300294649.html
SOURCE DTE Energy