Opinion Blog Archive

Jul 01 22:10

Dave Boyle on Public and Private Partnerships

By: DetroitRenaissance

In this week’s “50 CEO’s on the D: Detroit Renaissance Reports,” Doug Rothwell speaks with Dave Boyle, President of National City Bank of Michigan.

Boyle speaks about the tough choices that public and private partnerships must face in order for them to grow individually. He notes that additionally, in order for change to happen, there needs to be structural reform first.

“Dave’s honesty and ideas are just the type of traits we need in order to keep moving forward,” said Detroit Renaissance’s President Doug Rothwell, who also serves as the show’s host, “It’s about leadership and looking for ways to reduce redundancy. Dave’s ideas could be a bit controversial, but they’re the brutal truth.”

Boyle’s transformational way of thinking reminds Detroit residents that there will have to be change over time in order for there to be growth later, and it is not the type of thing that can happen overnight.

Listen to the podcast here, or subscribe via your RSS reader or via iTunes.

Jun 25 12:55

Chris Ilitch on Fostering the Creative Class

By: DetroitRenaissance

In this week’s “50 CEO’s on the D: Detroit Renaissance Reports,” Doug Rothwell speaks with Chris Ilitch of Ilitch Holdings, Inc.

Ilitch and host Doug Rothwell discuss the necessity of sharing success stories in order to inspire young and upcoming entrepreneurs. He also concentrates on fostering creative growth so that companies will continue to expand and attract new businesses to the area.

“As a businessperson, you can look at what’s happening in the Southeast Michigan area two ways: you can see the struggles that the area is facing, or you can look at the opportunities,” Ilitch says, “It’s crucial that we leverage those opportunities by fostering the creative class and by continuing to plant seeds for future entrepreneurs. “

Ilitch and Rothwell go on to discuss the Creative Corridor and other initiatives taking place as part of the Detroit Renaissance’s revitalization plans.

Listen to the podcast here, or subscribe via your RSS reader or via iTunes.

Jun 23 21:13

"Reasons" Michigan Isn't Growing?

By: DougRothwell

There are lots of theories being talked about today as to why Michigan's unemployment rate is so high - now at 8.5%! This is intended as a fact-based reality check on the "reasons" we sometimes hear being voiced for our economic woes:

We have lousy weather

DON'T BUY IT: Minneapolis, San Francisco, Portland, Seattle and Chicago are doing just fine in cold or cloudy weather!

We need Detroit to be as vibrant as Chicago

WELL SURE, BUT NOT AN EXCUSE: A thriving big city helps any state economy and there are lots of us working to redevelop Detroit. But there aren't many strong big cities in the whole nation. Detroit has actually measured up pretty well in the current economic downturn and was leading the state in new housing starts until last year! But a big city isn't a pre-requisite for state growth. Think North Carolina, Arizona, Texas and Georgia. None have a city nearly as authentic and "cool" as Detroit.

We need to "diversify" the economy

SORT-OF: A diverse economy alone isn't the answer. For example, if Michigan's economy mirrored the nation, we'd be doing better than we have the past few years, but only "average" in overall performance relative to other states. What we need is an economy that is disproportionately weighted in high-growth sectors to beat the national average in creating per capita income growth.

We need to stop going after auto jobs

WHY??!!: Auto jobs pay consistently above the national average and have some of the highest spin-off impacts of any industry. It's also a global growth industry - see above. Ok, we can't just focus on manufacturing jobs. But wesure should be going after r & d investments from the global auto companies. Think India, China, etc.

We need a competitive business environment

TRUE: The ten states with the fastest per capita income growth are ranked on average twice as competitive as the ten slowest growing states according to Forbes. We don't have to be the cheapest place to do business to thrive, but we do need to offer good value for the dollar.

We need more college graduates

YES & MORE EDUCATED WORKERS PERIOD: Not only are more jobs requiring college degrees, but just about all the best paying jobs are requiring more education than what many believe is necessary to compete. Skilled trades, health care workers, IT professionals and many others that don't require a college degree for all their positons, still pay far higher than average wages. But they require considerable technical education beyond high school.

- Doug Rothwell

Photo courtesy of Downtown Detroit Partnership

Jun 19 21:31

The Push for Detroit’s Creative Class

By: DetroitRenaissance

Detroit’s creative sector is nothing to scoff at. With over 33,000 people working as advertisers, architects, writers, designers, and graphic artists, this aspect of Detroit’s work force is growing and staying on par with the rest of the country. In fact, according to a report by AngelouEconomics, creative industries pay more in Detroit than the national average. It’s just one of the many statistics that make Detroit’s creative class stand out.

In a recent article in Crain’s, writers Amy Whitesall and Maureen McDonald explore Detroit’s creative sector from the larger picture to the personal, and they expand on some of the details that make the “D” a creative hub:

In just three months last summer, almost 100,000 new travelers from Ohio and Indiana came to Detroit. An independent research company was able to trace those visits directly to D Brand materials. Those visitors pumped $70 million into the local economy. In 2006, the number of large conventions in the region grew by 50 percent, and the amount of business generated by those conventions grew 40 percent.

In a related article, Crain’s writer Kevin Hill urges readers to explore and expand the new website for creatives, DetroitMakeItHere.com:

Please kick the tires: register, create a profile, interact with your colleagues and other users, and post your own writings, photos and videos.

The site contains a free, searchable database of more than 1,600 creative companies in the region and exclusive Web-only stories, multimedia, how-to resources and more. You'll see it change a bit over the coming months, as we respond to your suggestions.

Blog Michigan Future, which covers “The Ongoing Story of Michigan’s Transformation,” had a post recently announcing Detroit Renaissance’s launch of the Creative Economy Initiative. They cite our own Doug Rothwell, who had this to say:

"We all know that we have a breadth of creative assets here in our region and this effort will not only build on these assets but allow us let the rest of the world know this is a great place to locate a creative business, source creative work or reside if you're a creative worker."

Jun 18 21:27

Greater Detroit Creative Business Accelerator Strategy Report Available

By: DetroitRenaissance

New Economy Strategies has prepared a Creative Business Accelerator Strategy for the Detroit Renaissance, and it is now available to download and view. The document examines the new role of business accelerators, as well as several case studies of locations where these accelerators have been most effective.

Concerning the new role of business accelerators, the NES explains that “’virtual incubators’ have emphasized social networking, technical consulting, and partner reliance over attempting to replicate all required services on-site in a single office.”

In exploring this, there are many questions that are raised for most business incubators, such as: What sustainable funding will be available to support our business accelerator? or How do we plan to grow our service level? These questions must be address in order to determine the success of any proposed incubator.

The case studies presented were chosen on a number of factors, including key initiatives and target industries. Some notable locations include Winston-Salem, North Carolina, whose Center for Design Innovation “focuses on design as an intersection point for a variety of industries including film, media arts, biotechnology, and advanced manufacturing.” This sort of initiative compliments Detroit’s own creative business accelerator.

London’s Creative Business Accelerator also supports creative businesses in the area and serves as an accurate example of an area with similar goals to those of Detroit. These and other case studies provide a look into the future of Southeast Michigan and what the development of a Creative Business Accelerator can be capable of. You can download and read the PDF of the full report here.

Jun 16 21:18

Greater Detroit Creative Clusters Incentives Strategy Available

By: DetroitRenaissance

Angelou Economics released their report on the Creative Clusters Incentives Strategy for Detroit Renaissance recently. In this document, Angelou outlines the methods for the creation of a creative business strategy in order to inspire future prosperity in the Detroit region. Aimed at promoting the development of creative industries, the report covers three areas:

Identifying best practices in successful communities.
Exploring the current incentives programs offered.
Developing an incentives strategy to attract and expand creative businesses.

The document expands on each of these categories. The first area, best practices, includes case studies and specific examples of places in the U.S. and beyond that offer tax exemption for artists and creative groups. These include the Rhode Island tax-free arts districts and the Charleston Digital Corridor.

Tax incentives and other inducements are resources that have not been taken advantage of in the Detroit area, according to the report. There are creative incentives available, however, including Film Incentives and the 21st Century Jobs Fund. Also included in this listing of current funds and incentives are grants and tax credits.

Angelou Economics concludes the report with a look at some recommendations of incentives that will ultimately serve to expand the region and retain creative companies and talent. These recommendations include targeting companies in various levels of creative class, making Detroit a “creative hub,” and attracting creative talent and finding appropriate places for them to live and work.

You can download and read the PDF of the full Creative Cluster Incentive Strategy here.

Jun 14 18:27

It's not just taxes - It's the cost of doing business...by Doug Rothwell

By: DougRothwell

Most of us know that to get Michigan back on track economically we need to accelerate job growth in high-wage sectors and improve our talent base. But having a competitive business climate matters too. That means not just competitive taxes, but an overall competitive cost structure to do business. Michigan ranks 40th among the states on Forbes most recent ranking of the total cost of doing business. Detroit ranked 162 out of 195 top metros. The Forbes measure is a good one because it considers not just the cost of taxes, but also the cost of labor, energy and office space. The top states for job growth over the past ten years score consistently higher in the Forbes business cost rankings than the low job growth states. The other interesting finding is that the highest rates of personal income growth tend to be in states Forbes identifies as having lower business costs. Taxes do matter, especially when you're Michigan and rank 49th out of 50 states on the Tax Foundation's latest corporate tax index. But it's really the total cost of doing business in Michigan that needs to be addressed as one prong of a three prong strategy to revive our economy.

Jun 13 18:06

Aerotropolis Executive Summary Available

By: DetroitRenaissance

The Detroit Renaissance is pleased to announce the release of the Aerotropolis Executive Summary. This recently released report about the Aerotropolis outlines some of the ways in which the development will benefit growth in the Southeast Michigan area. The document is summative of the concepts and processes under which the Aerotropolis was formed and will continue to grow.

The term Aerotropolis is used to “classify the economic development role of airports and aviation-driven enterprises in shaping 21st century urban growth and form.“ according to the concept designer, UNC’s Dr. John Kasarda. As part of the beginning stages of the development, Jones Lang LaSalle reviewed the Aerotropolis Pilot Action Area in order to evaluate the strengths and weaknesses of the physical property. Based on this review and other market analyses, an implementation strategy was born to identify the necessary steps for the successful development of the Aerotropolis.

These analyses are reviewed in depth in the document, complete with metrics explaining the scope we should expect from the development. An intricate peek into the specific areas of the project is also available here, including information on the parkways, greenways, and rail networks. Concluding with economic and fiscal impacts of these operations, the Aerotropolis Executive Summary also cites Research Triangle Park as a successful case study for the intended operations Michigan will be undergoing.

By presenting this information, Jones Lang LaSalle hopes to bring a visual and conclusive presentation of the development of the Aerotropolis. You can download PDF here.

Jun 12 11:27

Creating a Creative Corridor in Detroit...by Doug Rothwell

By: DougRothwell

Question: How can we retain talent, grow jobs and re-brand the image of our region?

Answer: By developing Woodward Avenue into a Creative Corridor.

The "creative sectors" of the economy (e.g.: advertising, design, media, etc.) are growing at twice the rate of the rest of the service sector and pay 50% more than average US wages. Detroit already has one of the top ten concentrations of creative workforces in the US. But we haven't been recognized as a creative community because our creative businesses are scattered throughout the region, whereas in most other creative hot spots creative businesses are concentrated in the central city.

The development of Woodward Avenue into a Creative Corridor is designed to increase the density of our creative workforce in downtown Detroit through the establishment of a business incubator, physical improvements to the Woodward streetscape, new business incentives and the development of creative "districts" along the Corridor.

This week we launched the Creative Corridor initiative through the creation of a new web site to connect the creative community with resources and services. Check out: detroitmakeithere.com to see the depth and breadth of our creative business community. We also unveiled a strategy to market Detroit as a creative hot spot with the theme Detroit Make It Here.

The initiative will cost about $50 million over 5 years to implement, but we're off to a great start. Check out more about the entire Creative Corridor initative at: detroitrenaissance.com/agenda/transforming-the-region

DougRothwell's blog

Jun 11 14:42

New Episode of "50 CEOs on the D" Features Rebecca Smith

By: DetroitRenaissance

In this week’s “50 CEO’s on the D: Detroit Renaissance Reports,” Doug Rothwell speaks with Rebecca Smith, President of the East Division of Huntington Bank. Smith notes that by taking risks in such avenues as venture capital, we will be able to create new entrepreneurial opportunities. Smith and host Doug Rothwell discuss how through putting capital back into the community, we will be able to foster future growth. The hope is to create a new business model for which others can use as an example.

“There are of course, glimmers of positive evidence that these risks are already happening,” Smith says, “Such as the Plymouth Management Company that is going to base it’s $30 Million venture capital fund toward Oakland University’s Smartphone business incubator, OU Inc. The question now is ‘How quickly can we accelerate this?’”

The discussion follows some of the other ways Detroit can be revitalized, as long as those involved are willing to put their best foot forward and have an optimistic outlook.

Listen to the podcast here, or subscribe via your RSS reader or via iTunes.