New Detroit

 

 

"Move over George Jetson - we are coming!"

 

 

Lots and lots of talk about Detroit this past week. None of it good. The Detroit of old, just like the New Orleans of old, are probably gone - gone forever. For example, the following was taken from the Detroit Free Press last week:

(First, the good news)

Ford plans to hire 800 more salaried employees in the U.S. than it had previously planned for this year. The automaker said today that it is adding 3,000 U.S. salaried workers in 2013, including 85%-90% in Michigan. It had previously announced plans to add 2,200.

(Now, the not so good news)

About eight in 10 of the new workers are engineers or information technology specialists.

(Now, the bad news)

The new jobs are less than a third of the 13,000 salaried employees Ford fired or bought out from 2006 to 2009.

If you are a resident of Detroit, here is the nut of the problem. The thousands of thousands of "wrench turner" UAW jobs in the Detroit auto industry are gone - gone forever. Welcome to the brave new world of both manufacturing and the auto industry. Today's cars look more like computers than cars. Ten years from now, cars will look and drive more like space ships. Yes, technology is moving that fast. If you are not trained to be a part of this fast moving, highly competitive industry, there will be no seat at the table for you.

In the shell of a city that remains of Detroit, the out of wedlock birth rate is almost 80%. Many studies have shown that out of wedlock birth and poverty go hand in hand. Couple that with a graduation rate of 65% in the Detroit Public School system, and you have a large number of people who will not get a seat at the new table. Many of the 65% who graduate are so poorly educated, they will not have a prayer in succeeding in college.

Poverty, lack of education, and decades of financial mismanagement have led to Detroit being what it is today. A New Detroit will rise soon - only it might not be in Michigan. The New Detroit will have access to highly skilled and uniquely trained workers, and a location with minimal regulatory and tax burdens.

Listening to former Michigan governor Jennifer Granholm last week, I was tempted to give her a drug test. She was either on drugs or full of pixie dust. She talked about the business climate in Detroit like it was "great" and any problems were due to (of course), the mean old execs in the car companies. She would have loved to blame the Republicans in Detroit, but alas and alack, there has not been a Republican in that city in decades.

For those who will be working in the new auto industry located in New Detroit, have a great ride. We are truly on the verge of having cars which look more like George Jetson's car than Dad's old Buick. The new cars will last longer, look sharper, be powered by more diverse fuels, and be more autonomous. In short, they will be designed by computers and build by computers. The jobs will be for those able to build and program the computers that build the cars.

For those who want it, the future is yours. For those who want to hold onto old Detroit, I am afraid there is no future.