Detroit was one of the hardest hit cities by the recent recession, forcing many business owners to close up shop and move while subsequently putting thousands of residents out of work. This wasn’t the first time a major US city had been hit by a recession, but what made this instance different was its impact. Detroit was in such a bad place that city officials were forced to declare bankruptcy in 2013, attesting to its problematic state. But things are beginning to turn around for the city, as new reports indicate its experiencing a manufacturing revival.
Detroit has long been viewed as the automotive “hub” of the US, and rightfully so: many of nation’s leading automakers have headquarters or branches set up here, churning out cars, trucks and other vehicles on a daily basis. But the city’s automotive industry was also hit by the recent recession, with some automakers either closing their doors or seeking financial assistance to stay afloat. While many automakers are still struggling, Detroit’s automotive industry is slowly but surely turning back around.
It’s not the automotive industry that’s experiencing a comeback in Detroit. It’s also several smaller branches and sectors, one of which is robotics. As noted by CNBC, ABB Robotics has just recently opened a new shop in Detroit. The company says this new expansion is part of its overall global strategy to attract more North American customers. ABB Robotics believes the new plant will reduce its delivery schedules in the US from 20-25 weeks to just 6-10 weeks.
CNBS further adds that Detroit’s manufacturing revival is attributed to several different factors, including public and private initiative, high-tech startups, fundraising, venture capital, and craftsmanship movement.
“A confluence of factors—including public and private initiatives, high-tech incubators, philanthropic fundraising, an influx of venture capital and a craftsmanship movement—are bringing Detroit back from the depths of municipal bankruptcy and widespread unemployment, which stands at 7.8 percent in metro Detroit, according to the U.S. Bureau of Labor Statistics,” wrote CNBC in its report on Detroit’s turnaround.
There’s a still a lot of work to be done before Detroit reclaims all of the ground it lost during the recession. However, these recent changes signal a strong turnaround for the once-struggling Michigan city.No tags for this post.