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BUSINESS Monday 10 deceMber 2018
A25

GM plant closing not expected to stall Detroit’s rebound

By COREY WILLIAMS
Associated Press
DETROIT (AP) — General
Motors’ planned shutdown
of its Detroit-Hamtramck
plant would leave only one
auto assembly factory in
the city known for “putting
America on wheels,” but
the closure and job losses
are not expected to stall-
out Detroit’s comeback
since its 2014 bankruptcy
exit.
Experts say a more tech-
driven and medical indus-
try economy is moving De-
troit further from a reliance
on manufacturing and that
GM’s downsizing in the
name of cost-cutting and
investment in autonomous
and electric vehicles won’t
hurt as much as past mass
layoffs and plant closings.
Detroit once was home
to about a dozen massive
assembly plants. A Fiat-
Chrysler facility on the east
side would be the last if
GM closes its Detroit-Ham- In a Dec. 7, 2009 file photo, Michigan Gov. Jennifer Granholm drives a pre-production Chevrolet Volt at the Hamtramck Assembly
tramck plant. About 1,500 plant in Hamtramck, Mich.
people work at the GM Associated Press
plant while Fiat-Chrysler’s Hamtramck plant and this had happened prior to to rise. Preliminary figures grams have not really
Jefferson Avenue plant a transmission facility in the city’s reorganization it from the U.S. Bureau of La- reached out to women or
employs about 5,000. Fiat- Warren. The jobs account could have been far more bor Statistics pegged un- people of color,” said Byrd-
Chrysler reportedly plans for only .2 percent of lo- harmful,” Sabino said. employment in Detroit in Hill, who added that fund-
to reopen a former engine cal county employment Detroit was about $12 bil- September at 7.9 percent. ing has been limited for lo-
plant on the city’s east side “muting the immediate ef- lion in debt before filing for While this is still well above cal tech-training providers.
to make Jeep Grand Cher- fect of the plant closures,” bankruptcy in 2013. Much the U.S. rate of 3.7 percent, Companies are looking
okee SUVs with three rows Moody’s Investors Service of that was erased or re- Detroit’s unemployment for more educated and
of seats starting with the said in a report. structured allowing the city has been dropping since tech savvy workers, espe-
2021 model year. That means there is less re- to improve services, like po- January 2014 when it was cially those with critical
“Manufacturing is now a liance on those jobs and lice and fire, and invest in nearly 18 percent. Detroit’s thinking, communications,
tech industry — you don’t plants to supply tax dollars neighborhoods. unemployment rate was collaborating and team
have to hire as many needed to help pay for city Detroit’s general fund bal- 28.9 percent in June 2009. building skills — someone
people to make as much services and fill out Detroit’s ance was about $595 mil- Preparing Detroit’s work- who is “able to think criti-
stuff,” said Ned Staebler, operating budget. lion at the end of the 2017 force for non-manufactur- cally about when to use
president and chief execu- But, Moody’s wrote, the im- fiscal year, compared to a ing jobs is one of the next the appropriate piece of
tive of the small business pact could grow “as GM deficit of about $73 million hurdles. technology,” said Tech-
incubator TechTown De- reduces salaried employ- that the city faced at the Mayor Mike Duggan has Town’s Staebler. With Ford
troit. “It’s not just General ees, if reduced production end of the 2013 fiscal year said more residents are also considering thousands
Motors. Every major OEM hurts ancillary suppliers or following years of a plum- enrolling in Detroit At Work of white-collar cuts, Detroit-
(original equipment manu- if there is a broader slow- meting population and tax free training programs. The area auto industry workers
facturer), major manufac- down in the industry.” base. programs offer training may find it difficult to find
turer is going through similar Detroit will experience A $36 million operating sur- and certifications for jobs new jobs or match their
processes. It’s a trend that some loss of tax revenue plus was expected for the that include information salaries if they go to other
is going to continue.” from the plant and people fiscal year 2018. technology, truck driving, industries, said David Kud-
GM wants to close four fa- working there, said law pro- A 30-year jobs forecast by health careers, computer la, CEO of Mainstay Capi-
cilities in the United States fessor Anthony Sabino of the Southeast Michigan networking and culinary tal Management in Grand
and one in Canada. Nearly the Tobin College of Busi- Council of Governments arts. Blanc, Michigan, which
all of the 8,000 white-collar ness at St. Johns University forecasts manufacturing But many people in the advises many auto industry
jobs GM expects to cut in New York. jobs in Detroit falling from city are not prepared for employees. “You’re going
company-wide would be Owners of shops and res- 23,000 three years ago to tech-related jobs that are to be going out in a mar-
at the automaker’s techni- taurants that catered to 16,000 by 2045. Over that in Detroit or on the way, ketplace where everybody
cal center just north of De- those workers will be im- same time, professional said Ida Byrd-Hill, president is cutting back,” he said.
troit in Macomb County’s pacted, too. and technical services, of Detroit-based Uplift Inc. Those with skills in develop-
Warren. “This will not derail the corporate headquarters, which provides computer ing autonomous or electric
Some of the 3,300 global (city’s) 21st century renais- administrative, support, programming language vehicles will have an easier
blue-collar job losses would sance. They are working waste services and health training. time finding work, Kudla
come from the Detroit- from a solid foundation. If care jobs are expected “A lot of the training pro- said.q