Archive for the 'recession' Category



The Abandoned House of the week, and the remaking of Detroit

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I saw the following in a Richard Florida article in the Atlantic Monthly, titled How The Crash Will Reshape America: “The great urbanist Jane Jacobs was among the first to identify cities’ diverse economic and social structures as the true engines of growth. Although the specialization identified by Adam Smith creates powerful efficiency gains, Jacobs argued that the jostling of many different professions and different types of people, all in a dense environment, is an essential spur to innovation—to the creation of things that are truly new. And innovation, in the long run, is what keeps cities vital and relevant.”

My experience has certainly led me to believe that this is true. I recently read this article about “job sprawl”, which is the condition that exists in Metro Detroit, where most of the jobs are far away from the city core. I once read an article in the Oakland Business Review, about a company located in Oxford, who was unable to find a qualified software engineer. My first thought was, “no shit?” If you are located over 40 miles from the nearest large city, you should probably expect it to be hard to fill technical positions that require a lot of training, and/or education. It looked like a good fit for me, but living in Berkley at the time it was still 30 miles away, and probably an hour or more drive in rush hour traffic. When living in Washington, D.C., I was bombarded with calls and emails from recruiters and head hunters, trying to fill web developer positions in the D.C. area. If the job was not located on the Metro line, or at least within walking distance of the line, I simply said I wasn’t interested.

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If you employ low skilled workers you can locate almost anywhere, but if you need highly skilled, and/or educated, you’re best bet is to be near an area with a relatively high population density. It’s fairly easy to find low skilled workers. Not so when it comes to skilled labor. I’ve had recruiters from around the country contact me because of my specific skill set. They are often having trouble filling these positions. I’ve now worked for multiple companies in densely populated areas that had trouble filling positions. In fact I am currently working for a company that has been trying to fill positions since before I began work there almost a year ago. They are located in an urban center where there is an active high tech community. If they were located 40+ miles from the city, their chances of filling the positions would be slim to none. It’s not that tech workers don’t like the country side; it’s just that in an urban setting you have a much higher concentration of such workers. Your chances of finding the person to fill your high tech role far from the city are not as likely. Someone is going to have a long drive…if they’re willing to do it at all.

Will this change in Detroit? I don’t know. I’m not all that optimistic about Metro Detroit’s outlook. Areas like Royal Oak, and Ann Arbor at least have, arguably, resources, infrastructure and population density to decent tech centers. Currently, Ann Arbor is the area most resembling a creative center, and has the advantage of one of the best public universities in the country. Detroit has the New Center Area, and the Central Business District, but both areas are fairly far from the areas with the highest concentrations of creative workers such as Ferndale, Royal Oak, and Ann Arbor. Detroit has a long way to go to even approach the level of safety, livability, and urban conveniences that the previously mentioned suburban areas already have. Detroit’s advantage at this point are the incredibly low costs of land and buildings. The fact that a start up could acquire large amounts of space and land for very little money should a selling point. The fact that the area is losing the very residents a start up often needs, along with a reputation of as one of the most dangerous cities in the country makes the few pluses at lot less valuable. Detroit will need both the grass roots enthusiasm it’s been seeing, along with large amounts of public, and private funding to even have a chance of becoming a reasonably desirable place to live or do business.

The abandoned house of the week

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How will Rick get his mojo back? - Anonymous letter sent to The Motor(less) City

Rumors have surfaced amidst speculation that Rick Wagoner, former General Motors Corp. Chairman and Chief Executive, is said to be “strongly considering” applying for a position as an unpaid intern with mo (www.lessismo.com), a marketing and creative services firm with offices in Oak Park, Michigan – a Detroit suburb.

An unconfirmed source close to Mr. Wagoner acknowledged earlier today: “Rick has admired the creative work of mo for years now, and he’s expressed very sincere interest in learning more about their internship programs - now that he is able to devote himself more fully to his creative and aesthetic impulses, he is anxious to explore the possibilities.”

That same undisclosed source continues: “Aside from their great work, Rick loves the companies’ name, mo – it reminds him of Motown; he fondly recalls the day when automobiles were made - right here - in Detroit! Cars that Americans coveted - bought and drove. He feels a strong connection with the ‘creative types’ as he calls them, and he now deeply regrets not having hired mo years ago. Wagoner believes that GM’s legacy of ill-conceived and poorly executed marketing programs and initiatives could have been avoided if mo had been on the job…” continues that same close source to the former CEO. “In retrospect, he [Rick] now believes that mo was the answer to GM’s prayers all along…and they were regrettably overlooked in lieu of larger institutional firms.”

A representative of mo issued this prepared statement: “We cannot comment on any conversations we may or may not have had to date with Mr. Wagoner about a position with mo. We adhere to a rigorous standard of excellence for all of our interns. Inclusion in our popular program is based solely on the merit of the individual’s application and the enthusiasm of each candidate, as well as any practical experience they may have in our industry. No exceptions will be made based on previous [CEO] status, race, gender, or ethnicity. Any candidate applying for an internship with us who does not meet our high expectations and standards will not be considered for inclusion, and Mr. Wagoner is no exception. We look forward to reviewing his completed application. And if indeed Mr. Wagoner is looking to get his mojo back, he has certainly come to the right place to find it.”

That same mo representative declined comment on the suggestion the small firm might have saved GM from financial ruin, but added:

“We all either drive Toyotas or we ride our bikes to work – everyone deserves reliable transportation.”

When asked about the recent developments with mo, an employee who asked to remain anonymous said that General Motors Corp. was preparing a statement indicating that it was ‘still reviewing’ the specifics of Wagoner’s compensation package with GM, but internal sources had suggested that an unpaid internship “may appear imprudent for Rick at this juncture given the devaluation of [his] severance package…”

Wagoner’s salary was rolled back in 2008 - his compensation was tied to the company’s stock performance, which has declined significantly since he took the helm of the floundering automotive company. He agreed to accept a salary of $1 for 2009 as part of the automaker’s restructuring plan. Wagner is rumored to be found regularly roaming the halls of the GM headquarters, quietly repeating to himself, “I need to learn a trade…some sort of skill. Maybe graphics. Maybe house painting.”

Rick Wagoner has served as CEO for almost nine of the 32-years he has been employed with General Motors.

Mr. Wagoner was not available for comment.

Job opening in Detroit

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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.

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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.

The abandoned house of the week

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Liberals are destroying everything!!!

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Since right wing blogs continue to link to The Motor(less) City as proof that liberals are destroying the country, I’ve decided I’d have to contribute some thoughts of my own. Claiming that Democrats are the cause of Detroit’s and Michigan’s woes, is simply as much without proof as claiming Republican’s are 100% responsible for our current National economic situation. Since Governor Granholm is responsible for the state of Michigan, former president George W. Bush is obviously responsible for the mess everyone else is in. Unfortunately, picking one particular piece of the equation, and tying all responsibility to it, is simply irresponsible in itself. Before Jennifer Granholm allowed Michigan to ignore pending doom, John Engler did the same. Almost all of Michigan’s politicians failed to position the State for the future. The generally Republican business leaders of the Big 3 and other industries failed to position their own companies for the future, and they were paid millions of dollars for such wonderful leadership.

I’m not a fan of high taxes. I don’t know anyone who is. Possibly the only people who like high taxes are those who don’t pay them. Responsible spending is what we all want (or none if you’re Libertarian). “No pork”, we say! Pork is bad…unless it benefits me. But then, of course it’s not pork. It’s a tax break, or a tax credit, or a stimulus bill. Whatever it is, it’s bad when it benefits others and good when it benefits us. Remember “the bridge to nowhere“? Yeah…me too. Who were the biggest proponents of that, almost undeniably pork, monstrosity?

I tend to fall into the camp that politicians generally fall into one category: self-serving. They don’t do things for you or me, unless we’re doing something for them…though come to think of it, that tends to be all job situations doesn’t it? I guess we all just like to think that politicians may be individuals who truly believe in public service, and I suppose it may be more true if we didn’t pay them so well (including benefits and post political career opportunities). The system works like this: I (or, more likely, a big company or other large donor) give money to a politician with the implicate agreement that the politician gives something in return. Conservatives, just as often as Liberals, play the game to large success. Think farm subsidies, or “clean coal” incentives.

Feel free to link to my site.  But if you simply want to use a photo as proof of some unsubstantiated belief, and you have no background information about the image, or the location it’s from…please, do some homework first. At least present your point of view with some facts. And my feelings on this are not limited to conservative blogs, but extend to any blog. Do yourself and your readers a favor. Do some of your own research. Then link to my site. And if I print a bunch of unsubstantiated b.s., please point it out. I may not agree, or change it, but I would appreciate it.

Detroit…

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I recently came across two articles that speak of feelings many from Detroit currently feel. Feeling both torn between hating the area for it’s many short comings, and loving it for some reason as well. Maybe it’s what Detroit represents (or used to anyway): hard work and ingenuity. Or maybe it’s more simple than that. Maybe it’s just that it’s home.

Either way, questions such as, can Detroit become what it once was, or more simply can it survive, are constantly asked? Survive, it will, but become the major center of a new economy, like it was before, is next to impossible. It is what it is, and through the hard work, perseverance, and creativity of those who choose to stick it out, or who have no choice, Detroit can, and likely will, become a much better place.

Motor City Breakdown

The Detroit Dilemma

More Kwame…Detroit’s future…and of course, an abandoned house

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It’s hard to let go of the whole Kwame Kilpatrick thing. He (supposedly) holds a party with strippers in his mayoral mansion when his wife was out of town. The stripper is killed. Police officers investigate. The mayor fires the investigating officers, who sue the city for wrongful termination. During the trial, the mayor commits perjury, over an affair with his chief of staff. The city settles with the officers for $8.4 million, and Kwame goes to jail. Kwame gets out of jail. Kwame gets six figure job with a division of Compuware.

Now you may think that given the state of the economy in this country, that it would be very easy to find a qualified sales person (who gets paid anywhere from $120,000 to $360,000 annually), who isn’t a convicted ex-mayor. So it’s not surprising that Peter Karmanos finds himself having to defend his decision to hire a corrupt, former politician, who’s just gotten out of jail after committing perjury, while having an affair, and costing his city over $8 million. Peter must owe somebody big time.

To all the unemployed, non-perjurying, non-cheating employees, who haven’t cost their bankrupt employers over $8 million in wrongful termination suits, and who would make perfectly qualified sales people…it must be your honesty and hard work that’s preventing you from finding that quarter of a million dollar per year paycheck you’ve been looking for. My faith in corporate America has been restored.

As Detroit becomes largely an abandoned wasteland, it can be difficult to imagine a different, and hopefully better future for the city. But with all of this abandonment comes a clean slate. Land is cheap. Housing and commercial space is cheap too. At one time, Chelsea, SoHo, and the Meat Packing District of New York, were places only the poor and creative wanted to inhabit. Now of course, neither the poor, nor the creative (save the few who made it big) can afford to live in these areas anymore. Where are the adventurous, creative souls, who make art, start businesses, and generally make a place into a place that the less adventurous want to live in, to go next? How about Detroit. We’ve got room, it’s cheap, and no one cares what you do.

Preaching to the choir…

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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.

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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?

Detroit’s abandoned house of the week

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