What GM’s Cut Backs May Mean for Detroit
This Monday, GM announced that it would be cutting roughly 14,700 jobs across North America, including here in Detroit, by means of closing some of its production plants. Although sales haven’t quite been where they were in 2016, this still comes as a surprise to many and leaves us wondering what will happen with the Big Three and the future of Detroit.
According to NBC News, GM is looking to close four plants in the U.S. and one in Canada- one of those plants being the Detroit-Hamtramck transmission facility in Warren. Roughly 8,000 of the positions GM cut were full-time salary positions. This may just be the start in a decline of manufacturing jobs in and around Detroit, as there are predictions that manufacturing jobs in the city will drop to 16,000 positions by 2045 from the 23,000 positions last year. This further creates worry due to Detroit’s still-above-nationwide-average unemployment rate of 7.9% (the national average is currently 3.7%). With GM closing their plant in Warren, Detroit will be left with only one auto plant in the city, Fiat-Chrysler’s Jefferson Avenue plant.
What’s the Plan?
Part of GM’s plan is to trim away plants that are operating far below capacity in order to save costs alongside their efforts to start cutting out smaller cars and sedans in favor of the production of trucks and SUVs, as well as research in electric and automated vehicles. GM isn’t alone in these acts, Ford announced it would stop producing sedans and cars earlier this year as well, but it still leaves us wondering what the future of Detroit’s economy holds and what, if any, jobs will be available to its citizens.
Some experts urge us not to worry, as even though many jobs are being lost in the automotive realm, Detroit is seeing a surge of companies in the medical and technology fields moving into the city and generating revenue. Already, Detroit is in need of more skilled, educated and technical workers than ever before. This, however, isn’t necessarily the solution to all our problems.
Conclusion
Although other fields are flocking to and advancing in Detroit, the Motor City has always been just that- a city built around the automotive industry with hourly laborers filling production plants. With that being said, a large portion of Detroit’s work force, especially those just being laid off by GM, are blue collar workers that aren’t trained properly in the medical or technology fields. So, although new jobs are being created, it doesn’t necessarily mean all the jobs we are now losing will be easily and equally replaced. Detroit’s workforce will need to make a shift in education and training to cater towards these industries, should they really end up replacing automotive as Detroit’s main industry.
Only time will tell, however, what the future of the automotive industry will be in Detroit, and where Detroit’s economy will go overall. For now, we can continue doing what we do best- cars- and hope that the industry and sales start to rise again. Already, the Big Three are investing, researching and building more electric and automatic vehicles, so perhaps the plants GM is closing now will reopen in the future to produce all-new vehicles. But like I said, for now, only time will tell.
Holbrook Auto Parts has been a staple of the automotive industry in Detroit for over 75 years, and we don’t think the industry is going anywhere. We’ve seen ups and downs before, but no matter what happens Detroit always finds a way to pull through. We think we’ll see a shift in skills and mindset in Detroit’s workforce that will make sure the future of the auto industry, whatever it may have in store, will remain in the Motor City.
Images from pixabay.com
