Forward Observations: Hope in Detroit

I passed through Detroit twice last year, which is two times more than I had in several years prior. Considering that I’ve covered manufacturing since the late 1990s, this long gap is somewhat telling. Years ago, when Detroit was a manufacturing hub and magnet for job-seekers from all over the country, I expect I would have been very familiar with the city and its role as host of the mighty U.S. auto industry. If Detroit had not evolved into our nation’s so-called “murder capital” (a title that now apparently belongs to nearby Flint), the city might have hosted a respectable share of the many manufacturing-related conferences and expositions that now wind up in sunny, but manufacturing-neutral zones like Orlando and Las Vegas.

The last time I was in Detroit prior to my 2014 trips, in fact, my company (not the one I’m with now) opted to house our small group across the river in Windsor, Ontario, rather than deal with the perceived danger of bunking down for the night in downtown Detroit. That alone was enough to make me feel sad for this once-great city.

But now there’s hope for Detroit. The city emerged from bankruptcy in December, opening the doors to new possibilities once again. It actually has been on the move for some time. Plans were unveiled recently, for example, to build a new, $650 million stadium for the Detroit Red Wings. A downtown streetcar line is under construction, and a new, $550 million bridge connecting Detroit and Windsor has been proposed. Joining these high-profile projects are a host of returning and start-up businesses, attracted by affordable rents and real estate, and driven, in part, by young entrepreneurs.

The Big Three automakers, still headquartered in and around Detroit, are also playing their part. Chrysler has been adding jobs at its Jeep assembly plant in Detroit and investing money in its Michigan engine plants. GM has added shifts at its Detroit assembly plant where it makes the Chevy Volt and other cars, and is helping fund the streetcar project. Ford has invested in a local digital-radio start-up company, and also spent nearly $2 billion on the aluminum body-panel redesign of its long-time top-selling F-150 pick-up for 2015. That project alone added 850 new jobs, which should have brought much added joy to the Detroit-area’s holiday season.

Ford’s move is worth a closer look because it was bolder than most auto-industry projects that see the light of day. The company’s decision to do away with the steel body panels (and their 700 extra pounds) on such an iconic part of its stable caused fear among some F-150 faithful that the truck’s ability to take a beating would be compromised. Some also questioned the wisdom of spending so much for only a modest average MPG gain (from 17/23 to 19/26).

I have to believe Ford was looking ahead with its decision to green-light this project. It seems to be a triple play: a vote for the future of car manufacturing, for sustainability and for Detroit. Much of the company’s money, for example, went back into the famous Rouge facility in nearby Dearborn, which has built the F-150 exclusively for many years. To make the switch to military-grade aluminum, the body shop was gutted, new production machinery installed and 500 robots added, along with all those new jobs. The first 2015 F-150 didn’t leave the Rouge until November, so we don’t know much about sales yet, but I anticipate they’ll remain strong. Detroit and its caretakers seem to have turned the corner. I’m looking forward to spending another night in town soon.