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Who understands how Detroit needs to change?

Published January 2nd, 2010 in recession, real estate, abandoned, decay, transit, public transportation, ignorance, Denver, dysfunctional, light rail, cold, urban, poverty, urban living, rants, Michigan, jobs, economy, winter, photos, photography and Detroit. 5 Comments

After living and working for the past two years in D.C., and Denver, Colorado, coming back to the Detroit area is a real eye opener. What was once a maddening and frustrating place to live is now just plain depressing. With the real unemployment rate estimated to be near 20% for the state, and a ridiculously high 50% for the city of Detroit, still falling real estate values (down 40% in my area, and including our house), a crumbling infrastructure, financially strapped municipalities and school districts, and a apparent 50% commercial vacancy rate (just judging by what I can see..), the metro area seems to continually worsen. Each time I come back it seems that things couldn’t get worse (even though I don’t believe the area’s hit bottom yet), yet it always does.

Living in the area, one becomes accustomed to things residents in most other areas would never imagine. Roads that get complaints in other areas, metro Detroiters can only dream about. The public transit that others complain about being crowded or expensive, doesn’t even exist here. Same with the practically non-existent bike lanes. In Denver I ride my bike everywhere, only getting in the car to make longer distance trips. It’s something that I found to be unacceptably difficult here in southeastern Michigan. When I did make a trip by bicycle here, I was that strange person riding their bike on the road carrying grocery bags; presumably some poor sap who’d had his license taken away, or who didn’t have enough money for a car. In Denver, I’m just one of many using a bicycle for, believe it or not, transportation. Imagine that… Our neighbor here in metro Detroit would drive one block to buy cigarettes.

Driving around metro Detroit, it’s rare to see more than one or two people out getting exercise of any kind. In Denver it would be rare to see less than a dozen people exercising on my two mile ride to work. The weekly Wednesday night cruiser ride in Denver attracted up to 850 riders on a single night this past summer. Of course one has considering how many other options there are for socializing, entertainment, and outdoor activities. On any given week there will be rides, runs, creative Meetups, art openings, and just about anything else an active person under the age of 95 might enjoy. I know some of these things exist in metro Detroit, but the often long distance between them isn’t just inconvenient, but a huge waste of time, and dangerous when you consider all of the different highways one would have to travel to get from, say, Royal Oak to Ann Arbor on a weekday evening.

I have a point, beyond yet one more rant about the area. And the point is this: does anyone, who hasn’t left, or doesn’t want to leave, understand what needs to change about the metro area? Everyone knows that Michigan needs jobs. But I get the feeling that many who remain believe that those who left were weak, or quitters, or don’t like hard work. Those “quitters” who left the state, left because they had other opportunities…better opportunities, and most likely a chance at a better lifestyle. They didn’t leave because they weren’t up for a challenge. If an area offers jobs, and “opportunities” rooted in the past, and another area is embracing the future, why would I choose that challenge? If you can be on a better team, who wouldn’t choose it? Sure, some would rather be a big fish in a small pond, but this particular pond keeps getting smaller, and dirtier.

The point is often made that the area needs to bring back manufacturing jobs. I wouldn’t argue that manufacturing jobs…heck any jobs, would be good for the area. But maybe what the area really needs is to face reality. Metro Detroiters need to adapt to changing times. An education may be a good place for many to start. The claim is often made that metro Detroiters are scrappy, gritty, and hard working survivors. What mid-west city doesn’t believe that? The question is, what do survivors do when there old way of doing things doesn’t work anymore? They change their way of doing things. What did metro Detroit do when it was obvious the ways of the past were going to end soon? Nothing. Detroit made pretty much all of the same mistakes Pittsburgh has made, but unfortunately, unlike Pittsburgh, Detroit’s had very little of the fortuitous investments in other industries.

The question that should be asked, that often isn’t, is why have our young and highly educated citizens been leaving for decades? If the question was asked of every one of them, that has left the state, one would get a variety of answers from jobs to lifestyle. If you were to ask what it would take to get them to come back to metro Detroit, the answers would be equally varied, but I doubt many want to come back for traditional manufacturing jobs. Nor did many of them leave because of a lack of traditional manufacturing jobs. As a friend said the other night, “the state is a storefront. Why would anyone want to come in?”

When time Magazine offered advertising space for a campaign designed to draw this very demographic to southeastern Michigan, they asked five large agencies to answer the question, “If I’m young, talented and creative, and open to all kinds of opportunities, why Detroit?” Take a look at the ads… My personal opinion is that these ads do a better job of answering, “if I’m young, talented and creative, and open to all kinds of opportunities, why leave Detroit?” The ads do a great job of pointing out the disconnect that exists between those who have lived here a long time, and made lots of money here, and those of a younger more mobile generation. Outside of the suburbs of Detroit, who cares about Kid Rock? It really makes me wonder, if these people even understand what types of music the target demographic listens to? I can tell you, it’s not Kid Rock. Not a single one touched on any compelling reason for someone from outside of the area, to relocated here. Why are we even asking the old guard how to attract a new generation of creative, enthusiastic, and highly motivated entrepreneurs and creatives? L. Brooks Patterson still wants to stake metro Detroit’s future on the widening of I-75 from 8 Mile to M-59. MDOT and SEMCOG still seem to believe all transportation should be done in an automobile. No bikes, no trains, no walking…again that’s for the Third World poor, such as those in New York, Chicago, Atlanta, San Francisco, Portland, Denver, London, Brussels, and Toronto.

The morning after I arrived back in metro Detroit, we watched part of a round-table discussion on a local news show. The topic was, of course, about the area’s future. It appeared that not one of the participants was under the age of 60. Not that those over 60 have nothing to contribute. But asking only those who lived through a very different time period how we should proceed into the future misses the point entirely. We are in this situation because we (they) thought that what worked in the past would surely work in the future. If it was good enough then, it’s good enough now. Needless to say, watching did not make me feel very encouraged about the future of metro Detroit. Does anybody here, in any leadership position, with any power, or with money, get it yet? Do they understand the real issues? Do they know what it’s going to take to bring people back, or to make them stay?

Freelance Nation

Published December 18th, 2009 in portland, self-employment, freelance, economy, jobs, Detroit, Michigan and Uncategorized. 0 Comments

I recently got to thinking about freelancing, why I and others do it, and what it means for cities like Detroit. An article on Business Week’s website titled, Beware the Freelance Economy, discusses a recent trend in this country in which the share of business with no employees (freelance) has increased relative to traditional employee businesses. The author contends that freelance businesses do not increase employment, nor create wealth. Furthermore the author believes that, “…people would be more productive in this part-time work if they did it as employees who were part of a bigger organization that could achieve scale economies…” He finishes up with a bit of a warning, and a general question as to why this trend is occurring.

Having been a full time freelancer, or self-employed individual as I liked to call it, for almost five years, and now a part time freelancer, I feel like responding to some of the points made in the article. I also think I have a pretty good answer for why this trend, that the author finds so troubling, is occurring. Being a fairly typical Gen Xer, I saw the Boomer Generation as missing out on so many important parts of life. I lacked direction, and questioned everything. The answer, “because that’s life…” or whatever, didn’t quite cut it for me. I saw a lot of, unnecessary in my mind, stress, and anger in the generation ahead of me as they strove for middle and upper management positions at large corporations that ultimately failed to offer the promised stability or loyalty that their employees seemed to give them.

This appeared to be the American Dream. Work 60 plus hours at a company that saw you as disposable, so you could own a couple of cars and a house in the suburbs. Along with that came dedicating your life to a corporate entity that often became more important than family, hours waiting in rush hour traffic, and generally mind numbing and unrewarding work. Like so many others though, as much as I despised the large corporate workplace, I found the need to make a decent living, have health insurance, and a desire to save some money for later in life. Working in bike shops, and the like wasn’t cutting it. After college graduation I bounced between “real” jobs like accounting, and fun jobs like working in bike shops. The real jobs left me feeling unfulfilled. I worked hard at them, and was often recognized by my employers as a top employee, yet they did little for my soul. Working in the bike shop, on the other hand, allowed me to introduce people to an activity that could become a meaningful part of their lives. Often times the relationship between customers and employees turned into long term friendships in ways they rarely did in my “real” jobs.

During the almost five years of self-employment, I experienced unprecedented self motivation, and dedication to my work. Ownership, it turned out, was very important to me, as was actually being interested in what I did all day…every day. Furthermore the feeling of control, and the escape of the high school mentality of my “real” jobs, where employers cared more about when I came and went and less about what I actually accomplished, was rather nice. Self employment comes with it’s own set of headaches, but what job or career doesn’t?

Now, almost everyone I know is self-employed or a part time freelancer. We all do multiple things with our lives. Dedication to the big corporation isn’t as appealing, doesn’t seem to offer what it used to, and certainly isn’t the end all, be all of most people’s lives. Personal growth and satisfaction seem to be as important as money these days. And while a part time job at Starbucks may (this is arguable) contribute more to wealth and job creation than freelancing, it may not contribute more to self-fulfillment and personal growth. While the author, Scott Shane, may be a professor of entrepreneurial studies, most freelancers couldn’t care less about the National implications of their side businesses. They do it because they want to. They do it because they need to. And this is as it should be. As a country we should embrace this. If someone feels motivated enough to do work on the side, it should be encouraged. My freelancing earns me more money to me than a second job would, and employs me just as much. The additional money earned is put back into the economy when I go out to eat, go on vacation, or by a new bicycle. It’s money that wouldn’t have been spent with out the side work. And more importantly it’s fed my need for personally satisfying work, and has led to other career opportunities that I would not have had otherwise.

Finally, what does freelancing mean to cities like Detroit? And why should cities like Detroit embrace freelancing and self-employment? While most freelance work may never lead directly to larger, job producing companies, some will. Connections will be made, networks will grow, and the area can benefit directly from them. Portland, Oregon, is an example of a city that has, for many years, attracted freelancers, and many companies have been started by the self-employed joining together. Detroit currently has a low cost of living, allowing for freelancers to keep a low overhead while building their business. Most will never amount to more than that, but even if a few do, it will contribute to health of the economy and the reputation of the area. A good reputation for entrepreneurship, self-employment, and creativity will attract more of the same. The alternative is always relying on someone else to provide for employment opportunities. And as it stands right now, nobody seems to be stepping in to fill that need.

Who’s left Michigan? And who’s left in Michigan?

Published October 18th, 2009 in industry, moving, abandoned, housing, dysfunctional, portland, abandone houses, decay, industrial, jobs, Michigan, economy, big three, photos, photography and Detroit. 2 Comments

The other night I had a conversation with someone still living in metro Detroit. We talked about the national economy, and local Detroit metro economy as well. Now that I’ve been, for the most part, working outside of Michigan for the last couple of years, I see things from a slightly different perspective. Those who live in Michigan are, I imagine, feeling a greater weight, than those of us who live in areas with a better economic outlook. While I’m not viewing the world through rose colored glasses, I certainly see a better national future than did the person on the other end of the line. I believe many regions in this country are well positioned for the future. Unfortunately, where we did agree was in the belief that Michigan, and metro Detroit, is not one of those regions.

For many years now, I’ve been stressing that as bad as things were, I believed they would get much worse for the area. Upon moving back to metro Detroit from Portland, Oregon, I suffered from a pretty big dose of culture shock. The people, the place, and mostly the attitude was completely different. In Portland people, with good educations, often with plenty of experience as well, moved to the area just to be there. They wanted to be around other young, educated, and often creative, individuals. They wanted to be around the kinds of people that start businesses like Resource Revival, Portland Design Works, and River City Bicycles. They wanted to have the chance to work for companies like Nike, Keen, Adidas, Weiden + Kennedy, and Second Story Interactive. I’ve never been able to say the same about Detroit. Though I’m sure there are some who have made a decision to live in Detroit for reasons other than family or a job, I’ve never met any.

Growing up in metro Detroit almost everyone I knew with a lot of money worked in the one industry. If they didn’t work for the Big Three, they had a family business, and it was most likely an automotive supplier, or somehow serviced the auto industry. The pay was often ridiculously high, and the bar was often too low. The pay didn’t necessarily go to the best, but to most well connected. Of course this wasn’t, and isn’t, strictly a problem in one industry, but as the auto industry grew, the problem grew too. At one point in the late 80’s and early 90’s the zip-code I lived in was the wealthiest in the country. This occurred even as the auto industry was in decline. Already almost everyone I knew, around my age, wanted to “escape” from Michigan, and the bloated, insular, and dysfunctional industry that dominated the area. Unfortunately the high pay, and security of the jobs in the industry sucked many back to the state after college, but the foundation for a healthy, innovative, and diversified economy was long gone. As soon as the over heated economy, built on debt, began to cool, the exodus from Michigan moved into overdrive.

Who has left? Anyone with a good education, or skills that were in demand nationwide, such as software engineers, chemical engineers, and many other high tech and creative workers. They were the ones who could go almost anywhere. If you had a good education, and new you could get a good job anywhere, would you stay in a region whose main city leads the nation in crime rates, unemployment and poverty, suffers from a low level of education, has few cultural and recreational opportunities, bad traffic with no alternatives, and a sprawling and poorly designed metro area? Of course the suburbs don’t suffer as the city does from these afflictions, but let’s be honest, young, educated, creative types like cities. No matter what your middle aged, suburb loving, curmudgeon beliefs are, the younger generation likes what cities offer. Even if they don’t live in the city, they want to be near a vibrant one. They want culture, jobs, variety, choices in transportation, and vitality.

So who is left? Is it, as this article claims, the strongest that remain? Maybe those who stayed are stronger. Who knows, though it looks like it is the educated who are leaving, and it appears that the poorer, and less educated would like to leave, but find it much more difficult. But, regardless, metro Detroit needs much more than strength. It needs leadership, creativity, innovation, and vision. Detroit needs a new direction. There are a few good signs, as the article points out, but why did it take so long for anyone to take action? What was going on the last 20 years or so? Nothing as far as I could see. I was there. It wasn’t necessarily that no one cared, but that no one cared to see what was coming. Sure there were the few who were planning for the future, but for the most part it seemed as if Michigan was enjoying a party most believed would never end. Now the party is over, and many are pointing fingers. It’s the liberals fault. It’s bad tax policy. Blah, blah, blah… The ship is underwater. Time to stop the blame game.

It’s not that I believe Detroit has no future, it’s just that I think that it’s going to take a long time to attract the people that are needed to turn things around. Maybe a turn around isn’t even possible. Do we even want to go back? What we really need is to move forward. Michigan has waited far to long to face what was the future, and is now the present, but better late than never I guess. I certainly don’t have the answers, but I do know that unless Michigan can attract, and keep the types of people that are leaving, the state doesn’t have much of a future.

Health care can’t save Michigan, or I told you so part 3…Michigan’s future, and some photos

Published September 26th, 2009 in dysfunctional, health care, sprawl, news, abandone houses, automotive, free market, capitalism, ignorance, industry, abandoned, jobs, poverty, urban living, Michigan, economy, big three, urban, photos, photography and Detroit. 1 Comment

In May of 2008, I read an article regarding the expansion of the area’s hospitals, and the growth of the health care industry in general. At the same time, I also wrote about how I had viewed this as a potential problem for a long time. The idea, at the time, seemed to be that Michigan’s, and in particular, metro Detroit’s, economy could be saved by health care. And, so the growth of the local hospitals could put more people to work. Former automotive employees could be retrained to work in the health care industry. Best of all, the health care industry was largely immune to the ups and downs of the economy. People always need health care! And with our aging population, we’d have an ever increasing supply of patients.

What wasn’t often mentioned was that Michigan, and again, metro Detroit in particular, was losing population at the same time that the hospitals were expanding. The problem with the health care as savior plan, was no different than the belief that the housing market, or the commercial real estate markets would keep growing despite a declining population. From my conversations with industry “experts” and from reading and watching the local news, it was obvious that many people, whom I had generally assumed knew more than me, couldn’t imagine a Michigan any different from the one they were living in in 2005 or so. The real estate markets were booming, the health care industry was booming, and the Big Three seemed to be doing not to terribly bad (other than maybe Ford). If one only looked at the surface, things may have looked so-so in Michigan, but if you were to have looked a little deeper, things looked like they were going to become downright horrible. The population had been stagnant or declining for a while. Michigan was one of the few states in recent history with this distinction. We were far too heavily dependent on an ailing industry with a broken business model, whose employee’s pay rate was not based off of market forces in any way, and whose management teams couldn’t seem to see past the ends of their noses, or a least past the next quarterly profit report. And we kept on building, and moving further from Detroit, using used tax payer money to help build infrastructure for new developments, while our old infrastructure crumbled. It angered at least a few of us, that no one seemed to be able to (or at least didn’t want to) see that a declining population whose economy was based on one broken and declining industry, and whose current investments were being made on new, and largely unneeded infrastructure, was doomed to failure, and soon.

In my business, when I asked questions about the, seemingly huge, number of new housing developments being built in the middle of nowhere, I was constantly told things like, “our projections show that we can build like this indefinitely”, and “as fast as we build them, people buy them”. Were are these people coming from, I would ask. The answer was usually something like, “a lot come from Detroit, or from older suburbs”. Apparently, no one thought to follow this logic to the end of the line. If Detroit has been losing population for 40 years, and people move from Detroit to Dexter, who is buying the house in Detroit so that the purchase in Dexter can be made? People were buying houses in Detroit at the time, but obviously less than were leaving Detroit. The problem was simple. You can not expand the number of houses if the number of people is going down, with out driving prices down. But what was such an obvious sign of trouble at the time, is that prices were rising, and people were sure they would keep rising.

So Michigan had a declining population, dependent on a downsizing industry with a broken business model, that had already been laying off large numbers of employees for years, an over saturated residential and commercial real estate market, and of course a largely under educated work force. But, we need not fear because the health care industry was going to save us. We’d all become doctors, nurses, assistants, or administrators, and we could just all be at the hospital all the time, either taking care of someone, or being taken care of by someone else. It’s the logic that seemed to be used by the Big Three for a while. For quite some time, almost all television advertising was directed toward their own employees. Who advertises to themselves? I’ll pay you, and you can then give it back to me in exchange for the thing you just made, that I paid you for. Maybe if we just make a chain letter, and send it to all of our friends, we can all get rich!

Unfortunately, a market based economy requires more than one or two industries to work. And so, it was always obvious, that unless something fundamental changed in Michigan, that we couldn’t depend on the health care industry to save us. As it turns out, the health care industry isn’t immune to downturns in the economy after all. It should have been obvious all along. If you are out of a job, or have no insurance, do you put off medical care and procedures? Of course. And if there are less people in the state, are there less potential patients? Of course. Michigan, like any other state, can’t depend on any one industry to keep the economic engine running. It takes a progressive, and diversified economy to be successful. No one knows for sure what the next big industry will be. Who predicted Google? At the time, most people thought search engines couldn’t possibly make money, and yet online advertising, has been a growth industry for years. Trying to create a plan for the future, based on the past, is unlikely to work. Sure the past holds lessons to learn from, but the future remains unknown. What Michigan needs to do is to put a priority on education, entrepreneurship, and quality of life. Of course Michigan’s broke, so it’ll be very difficult for the government to do what is needed, but the real change needs to come from the citizens who live there. If Michigan becomes a holdout of stodgy, grumpy, and angry citizens, that resists any change at all costs, then the downhill slide will continue for decades more. But if the cheap living can attract a new younger and more progressive generation, then Michigan may have a chance.

A lesson in free speech, blah, blah, something, something, and some photos of Detroit

Published September 13th, 2009 in are you kidding?, industry, news, dysfunctional, socialism, unsubstantiated, industrial, economy, poverty, Michigan, politics, politicians, jobs, angry people and Detroit. 1 Comment

After a week of listening to crazy political, economic, and social theories, beliefs, and comments, I felt the need to vent. Unfortunately I wrote way too much, so I’ll only post a little bit at a time. I hope not to come off as preaching from a soap box, but rather presenting information that seems to be too often misunderstood.

Having a discussion about politics is similar to a discussion about religion. It takes the right combination of individuals to have a civil discussion (as evidenced by our recent national political screaming matches…err, I mean discussions). Unfortunately, bringing reason and facts to a political discussion is about as welcome and useful as it is in most religious ones. That is to say, facts and reasoned arguments are not very welcome at all. It’s too bad, as a debate of political, economic, and social theory is a good thing. Yet it seems to be almost impossible to have. If you are going to disagree, at least get your facts and statistics straight. As Mark Twain said, “Facts, or what a man believes to be facts, are always delightful - Get your facts first, and then you can distort ‘em as much as you please.” That way if you want to make stuff up, at least you’ll be less likely to come off as part of the lunatic fringe.

The first topic in which it was obvious many of the participants of the “discussions” didn’t have much of an understanding is:

Free speech, and the protection of it under the First Amendment of the Constitution

From the Constitution: “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.”

Note, you do not have a protection from corporations, private businesses, or individuals. Therefore if someone in the press criticizes what you have said, or suggests you shouldn’t have said it, your right to free speech has not been violated. If an online forum deletes your idiotic (or thoughtful) comment, your right to free speech has not been violated. If someone tells you to “shut up,” your right to free speech has not been violated. Furthermore, there is a whole host of instances in which, the amendment has been interpreted to allow for the restriction of the individuals right to free speech by the federal government (judicial activism has a long history, knows no political boundaries). Of course this is a very limited presentation on your first amendment protections. It is only meant to explain your right, or lack thereof, as it pertains to the, apparently, very common misconception that you are granted the right to free speech in every domain.

And here’s the blah, blah, something, something part:

There’s been a claim that the the federal government can’t do anything right (no pun intended). That they’ll obviously bungle anything they do, other than, depending on your point of view, highways, defense, social security, sewers, water, and electricity. In direct opposition of the first statement is a second one. The second statement often used in conjunction with the first says, that the federal government shouldn’t be involved in health care because they’ll drive the private businesses out of business due to a lower operating cost. Well, which is it? It can’t be both. Is the government more efficient…or less?

Don Tapscott provides a good argument in favor of my long held desire to clean house at the Big Three, in a “Crisis of leadership.”

At least we’re not Texas. Does anyone other than a Texan like Texas?

This poor woman decides to leave Detroit after 60 years, and get berated by idiots in the comments. What the hell? Can’t people can’t just say, “good luck.” Or how about, don’t say anything? Really, we’d all appreciate it.

Too little, too late?

Published June 15th, 2009 in are you kidding?, industry, decay, industrial, recession, news, automotive, dysfunctional, bailout, photos, photography, politics, rants, Michigan, politicians, angry people, big three, economy, jobs and Detroit. 2 Comments

U.S. automakers agree to new fuel efficiency standards. U.S. automakers cut costs. U.S. automakers make fuel efficient vehicles. That’s great. The problem isn’t necessarily with what Big Three execs agree to now, or what they say now, it’s what has happened over the last 35, or so, years. GM, and the other American automobile manufacturers have a really bad legacy. Any other companies that were as poorly managed would be out of business. Even with a massive taxpayer bailout, GM is still filing for bankruptcy. That alone speaks volumes.

While Toyota may be hurting, it doesn’t appear they will be filing for bankruptcy. And, Honda, while posting some recent losses appears to be well positioned for the future. It’s as if the American automotive industry is given a pass for failing to plan successfully for the future. And worse yet, for failures which are often admitted, even by Wagoner himself.

It’s sad. I am still paying on a house in metro Detroit, as are others I’m sure, even while having to leave the state to make a living. We are, in effect, paying the price for the short sightedness of our political and corporate leaders. The Big Three execs seem downright excited about new fuel efficiency standards, and electric vehicles. Too bad they didn’t seem remotely interested even ten years ago, and in fact banded together to fight new CAFE standards multiple times.

The argument, by Big Three defenders, is always, “they sold what the public wanted.” Of course the truth is usually not that simple, nor is the past performance proof of future results. Just because people bought Ford Excursions when gas was $1.25/gallon, doesn’t mean they’ll buy them when gas is $3/gallon. But if we are to believe upper management at the Big Three, no one could have seen this coming. Plenty of people did, and smaller companies with less funding, fewer employees, and much less experience in the automotive industry are now leading the way in electric vehicles. While GM has long since canceled the EV1 program, companies such as Tesla, Fisker, and Detroit Electric are now either already selling, or are close to selling everything from high performance sports cars to affordable family sedans.

You’ll often hear, that it wasn’t short sightedness. That it must be the unions fault, or perhaps it’s just a bad economy. The Big Three have been losing market share and money for much longer than this current economic downturn. Not that I’m not going to defend the UAW. I believe the UAW leadership was self-serving and short sighted, just like management, and our political leaders. I also believe that while much of the union rank and file knew the good times wouldn’t last, most just decided to get it while the getting was good. That’s a pretty short sighted game plan as well. It seems no one could see beyond the end of their nose.

So now, with Chrysler and GM going through bankruptcy, the Big Three are suddenly excited about fuel efficiency standards, controlling costs, and alternative fuel vehicles. Is it too little, too late? And opinions range from Detroit’s too excited about green cars, to the Big Three’s not embracing green cars enough, to Rick Wagoner is a scapegoat, to Rick Wagoner is to blame, to GM has too many brands, to GM should hold to brands, to Obama is doing too much, to Obama is doing too little. Nobody knows exactly what will work, or even if anything will work. Writers from many media outlets including writers from both the Washington Post and Business Week are at odds as to the reasons for the fall of the Big Three, and how to save it.

The only thing that seems certain is that whatever the fix is, it’s at least 20 years too late. Already the stumbles of the Big Three are opening the doors even wider for foreign manufacturers. I suppose it’s human nature to wait until the roof is collapsing to attempt to fix it, but with all of the money paid to almost everyone involved, you’d hope for a better outcome. When CEOs are paid millions, you expect them to fix inefficiencies, broken business models, and foresee possible future challenges. Gas prices may not stay at $1.25/gallon, consumers may not always want really large SUVs, and the economy may not always grow at record rates. It seems that the claims that no one could see these things coming are a bit disingenuous. It seems more likely that our leaders were simply blind or ignorant. Consumers didn’t always like SUVs. In fact Jeeps were at one point just for that off road enthusiast down the street. Pickup trucks were for construction workers and hunters. Gasoline is a limited resource. We have experienced rising fuel prices several times before. Consumers couldn’t really afford $50k automobiles, but an economy that seemed good led consumers to leverage themselves to buy Hummers and Escalades (among other things). Of course the economy would slow down. It had to. Anyone who couldn’t see that, simply didn’t want to.

More of the same, or, why I continue to beat a dead horse…

Published May 23rd, 2009 in transit, news, moving, public transportation, dysfunctional, anonymous, abandone houses, Denver, abandoned, urban, angry people, urban living, Michigan, jobs, economy, photos, photography and Detroit. 0 Comments

I know I say the same things over and over. I guess I just feel I can’t say them enough. One of my favorite topics is the need to make the Metro Detroit area an attractive place to live. The usual xenophobic reaction is to resist any kind of change. The typical mindset seems to be something like the following: If something worked 75 years ago, it’s got to work now. We didn’t need mass transit, bike lanes, or parks then, so why would we need them now. In fact people only go to cities for jobs, right? So we need to get some big corporation to relocate to our sad, depressed area, and give us jobs.

In reality, highly educated, creative, young people go where they want to go. And guess what? They don’t want to go to Metro Detroit. They want to go to cities they may actually enjoy living in, not just one that provides a job. A good urban area can, and usually does attract educated, creative, and entrepreneurial young professionals, so important to economic growth. And young, creative, educated types start companies, and create jobs. Corporations are also much more likely to locate where they can pick from a large qualified workforce.

The metro area, and Michigan as a whole, has not been very forward thinking. In fact it’s pretty much been in reverse, while the vast majority of the country was in drive. Now, believe it or not, G.M. is planning to cut even more white collar jobs, we are having to loan G.M. $4B more, GMAC is getting a $7.5B loan, and the automotive industry’s pension funds appear to be on life support.

And to top it all off, Detroit’s got an image problem, largely due to the darn media. Constantly painting Detroit in a bad light; how could they? If only they new the truth; it’s a safe city, with lots of job opportunities and a bright future… Heck, even I am getting hate messages. Apparently I am a “disgusting human being” for taking photos of abandonment, and I surely “could’ve chosen a different subject matter.” Shoot the messenger. Always a good idea. In fact maybe if we say, “Detroit is good enough. Detroit is smart enough, and gosh darn it, people like Detroit”, maybe the abandonment and corruption will magically vanish, jobs will appear, and the economy and unemployment won’t be the worst in the nation anymore. Maybe I can pretend my house is worth more than my mortgage too.

Detroit does have a future of some kind. Most likely though, it’ll never look like it did 4o years ago. It’ll almost certainly be something very different. Hopefully, at the very least, it’ll look very different than it does today. Some possibilities include urban farming, green spaces, giving away land to entrepreneurs and urban villages. It’s obvious that Detroit can’t provide traditional services to the area it currently encompasses. It is time for a change.

Finally, while I feel very bad for the subject of this story, you just have to ask, “what were you thinking?” or “were you thinking?” It’s not like the Metro Detroit areas outlook suddenly went from promising to bleak overnight.

Job opening in Detroit

Published March 30th, 2009 in abandoned, decay, industrial, cold, industry, recession, snow, dysfunctional, bailout, news, urban, winter, politicians, politics, poverty, Michigan, jobs, economy, photos, photography, big three and Detroit. 4 Comments

Looks like there’s a job opening at G.M. With Rick Wagoner gone General Motors is now leaderless. What will they do? They won’t know how to make cars or, more importantly, how to make money…oh wait they already don’t know how to make money. In fact since they had industry insiders leading the charge towards irrelevance for decades maybe the could hire someone with no industry experience…like me, for instance. I have no idea how to manage an auto manufacturing company, neither did Rick Wagoner apparently. Rick Wagoner was paid lots of money. Oh sure, by Wall Street standards he was paid practically nothing, but compared to me, he was paid a lot. They could have paid me a lot less, and ended up in the same spot.

All kidding aside (ok, most), Chrysler and G.M. appear to be in deep doo-doo. I wondered what Cerberus was thinking when they purchased Chrysler from Daimler-Benz. I know what Cerberus’ M.O. is, but I think they were overly optomistic, and I don’t think their plan worked out too well. Now Chrysler has to Merge with Fiat. Wonderful. So, now, two crappy car companies can make crappy cars together. Maybe, at least, the crappy cars will cost less. I know I’m bound to anger some with statements such as the one I just made, but let me make it clear, that I believe management is to blame. The Union played a role in Chrysler’s demise as well, but any time a company is poorly run, and Chrysler has been poorly run, management is to blame. Management’s job is to maker sure all parts of a company function in unison to achieve a goal. If the goal is wrong, or portions of the company are not performing, it’s always managements job to redress such issues. And, most likely what G.M. really needs is a leader who the skeptical public will believe feels as disgusted with the old ways as they do. Someone who isn’t part of the dysfunctional machine, and shows a desire for a complete overhaul.

With two (here, and here) recent announcements by smaller companies, you have to wonder where the Big Three have had their collective heads lodged lately. Of course those cars aren’t out yet, and Tesla, and Detroit Electric have nothing to lose by making claims they may not be able to follow through on. Meanwhile the Big Three can’t afford to fall short of big claims. But that’s mainly because they’ve become the definition of over promising and under delivering. They’ve already used up their “get out of jail free” cards. Still, why did G.M. wait until the verge of bankruptcy to come up with a plan for a usable electric vehicle?

So the price to pay for such short-sightedness by the Big Three is partial socialization of a huge portion of our manufacturing industry. Anyone who’s angry about the state we are in should have spoken up long ago. It’s now a choice of pay to save the very ones at center of problem, or pay the price of doing nothing, and watching as an entire industry collapses around us. And actually there’s a third scenario as well. We may pay to save the industry, only to have it fail anyway.

Preaching to the choir…

Published January 25th, 2009 in moving, abandoned, decay, industry, recession, dysfunctional, light rail, public transportation, industrial, photos, politics, rants, Michigan, politicians, jobs, photography, economy and Detroit. 0 Comments

A discussion with my sister-in-law, regarding the inevitability of change, facing change, and dealing with change, somehow made me think of Detroit. Detroit’s like some people I know who refuse to face up to the fact that change is inevitable. And not only that it’s inevitable, but that you’d better prepare for it, and make the most of it. Once change is accepted, it can become an opportunity. Anyone who knows me, is well aware of how irritated Michigan’s, and Metro Detroit’s, resistance to change makes me.

As an individual, I, like so many others, had to face up the reality that the opportunities that my previous career choice, and my location in Metro Detroit, offered were limited. I mourned the loss of what I once had, and moved on. I learned new skills, used my spare time to build up some experience in my new industry, and, along with a move to a new, more economically viable location, am making a good living in an industry with a lot more current and future potential.

For Metro Detroit, it’s time to mourn and move on. The past is past. It’s time to look towards the future. Time to figure out how to become relevant in the 21st century. When I talk with friends,with similar sensibilities, I always realize how we are simply preaching to the choir. More and more, people are coming to the realization that we are in the midst of a dramatic shift away from our industrial past. When will a Critical Mass emerge, that will force the change upon the area, that is necessary Detroit’s survival? Talk is cheap, and as these articles suggest, there’s plenty of talk…plenty of preaching to the choir. How can we convince the skeptics that change is not only inevitable, but necessary, potentially the best thing that can happen to the area?

New Detroit: A Radical Vision of America’s Greenest City

Immigrants in the 313: This is where the future begins

Essay: Is mass transit in Metro Detroit for real this time?

Return to Detroit

Published January 18th, 2009 in decay, cold, urban, abandoned, industry, dysfunctional, housing, winter, photos, smoking, rants, Michigan, jobs, economy, photography, big three and Detroit. 0 Comments

I made two separate trips to Metro Detroit recently, and was reminded of both why I miss the area, and why I hate it. First, we made the usual holiday family visit to Detroit, followed shortly after by a business trip to the area. During both trips we experienced the usual irritants such as only seeing the sun twice in a week, and driving on some of the worst roads on the planet.

The first trip back started with an evening of food and drinks with friends at the Royal Oak Brewery. Even though most of the restaurant is non-smoking, the entire place filled with smoke fairly quickly. By the time we left, we reeked of smoke, and my throat was scratchy. The next morning both my wife and I woke up with terrible headaches which developed in to full blown migraines. The next night, while laying incapacitated, and doped up on anti-nausea and migraine medication, I was already cursing my return to Detroit. In most major cities (at least the ones I like), you can enjoy dinner and a drink without smelling like an ashtray, but not in Detroit.

During our trip we constantly heard how Detroit’s automotive legacy was responsible for making this country what it is today, so therefore the (not so) Big 3 deserve loans. Guess what? Nobody cares. The Big 3 have had a broken business model for years, didn’t control their costs, gave away the automobile market to their foreign competitors, and failed to conceive of rising gas prices (how could gas get more expensive). The rest of the country doesn’t care much about the Big 3, because they’ve been aware of the industry’s problems for years. Why is Detroit still trying to avoid the inevitable?

We also heard how auto workers have hard jobs, and are hard workers. Unfortunately how hard your job is does not determine pay. Sorry, but, most of the time, it’s true. The market determines pay, and if you are easy to replace the market pays less. If you are difficult to replace, the market pays more. Simple enough. Workers for the Big 3 (both management and union) were often paid rates much higher than similar jobs in other industries. The wages had to fall to what both the companies can pay, and what the market will bear.

On the second trip back, while doing a job at the North American International Auto Show, I experienced the, seemingly never ending, incompetence of Detroit. When we went to park at Cobo Hall, the ticket machine wasn’t working, so one worker would remove the ticket from the machine, and give it to the driver. The driver would advance two feet to the toll booth where another worker took that same ticket, and ten dollars. That seemed strange, but it got worse. When attempting to leave, the same worker that took the ticket and your money at the booth, asked for our ticket again. We had to explain to him how he took our ticket, and our money, when we entered. Eventually we convinced him that we’d already paid, and we headed home.

The final kick in the teeth came from a publisher of several prominent magazines in the area. I had provided photography for use in an issue of one of their magazines. After agreeing to an amount, and running the images in the magazine, the editor, after several weeks of back and forth emails and phone calls attempting to get my invoice paid, told me that the person who agreed to an amount for reuse of the images had no authority to negotiate, and therefore they would not be paying me. Thanks for nothing. I’ve been asked many times why I haven’t worked for this particular publisher in the past. Well, this is the reason.

I’m always torn, when thinking about whether or not I want to move back to Metro Detroit at some point. We still have our families, friends, and a house in the area, but going back is like beating your head against a wall. The big question is always, what will happen to the area. The problem is that, collectively, the question wasn’t asked until it was too late. If Detroit hopes to remake itself, it’s got to do better.

The Motor(less) City