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Small manufacturers bet on Detroit brand despite bankruptcy

Nearly six years of Detroit's story has been relentless erosion of its once mighty manufacturing base, but the Motor City, and even face bankruptcy long clutch of small producers have moved to re-ignite the "Detroit manufacturers' brands.
So that products from bicycles to luxury watches and designed for the homeless "sleeping bag" coat, these small companies into a surprising number of failures and the decline is more common today, in a city demand for goods.
"Our customers come from all walks of life, and are looking for soul and a little bit of something that is authentic Detroit," said Eric Yelsma, founder of the Detroit Denim Ltd, which produces handmade jeans. "We can not let them fast enough."
With the rich and powerful co-founder Dan Gilbert, Quicken Loans online mortgage provider has helped 9,000 employees at a cost of $ 100 million, in the process, led to a boom in downtown Detroit Pistons new entrepreneurs wronged.
"We have not done this before, said:" Zak Pashak, and has invested $ 2 million in Detroit bike, which will begin production in August and its "city bike" model, aimed at creating 40,000 bicycles a year.
"We just jump with both feet, and said:" Pashak, started out as a bar owner in his hometown of Calgary and winding in Detroit, a city he grew envious of its Motown music. "The United States needs to work and start doing something here again, this is a good reason."
Detroit's manufacturing start-ups do not have a city's unemployment rate was 11.7% in June have much impact. As a whole, they created only a few hundred jobs, just a small part of department from March 2012 to March 2013 at the Detroit Metropolitan area 7,700 manufacturing jobs created, according to government data released .
Because they are small, start-up companies manufacturing Detroit faint signs that, after decades of cars or rely on grand plans to revitalize Detroit economic diversification such as casinos. They are also relatively expensive special commodity, consumer spending in the city has been suffering for many years.
"I think that these small businesses provide better hope Detroit than any big answer," University of Michigan professor of urban planning Margaret Dewar said. "The city has been looking at a big solution to the problem has not been working."
Detroit's auto industry to build, draw hundreds of thousands of jobs. However, the U.S. car manufacturers to shift production elsewhere, the city's population increased from 1.8 million in 1950 to a peak down to about 700,000, only a high-volume car factory still makes cars in the city. Detroit has long-term debt of more than $ 1.8 billion U.S. dollars, and in July 18 State-appointed emergency managers, Kevyn Orr, "Bankruptcy Law" Chapter 9 bankruptcy protection, the largest ever U.S. municipal bankruptcy.
"Looking to the future."
Detroit's new entrepreneurs, despite the city's financial constraints, undaunted lacking in many neighborhoods of the street and flaky police and emergency services and other basic services.
"Most of the people have been set up here with family and friends who have done so, regardless of the poor Egner," said David, New Economy Initiative, "$ 100 million fund to help entrepreneurs in Detroit's executive director.
Encourage them to Orr services and infrastructure investment plans, as part of the restructuring the city. "Once the service improved, I think we will see growth from the group of family and friends outside the company, Egner said."
The largest city of the small newcomer called Shinola, during the Great Depression to buy the brand in 2011, the company set up shop watch manufacturer. Headquartered in Dallas bedrock manufacturing, accessories company Fossil founder Tom · Kartsotis founded by a venture capital firm to take advantage of Detroit's decision to support underutilized labor and resonant American mystery.
Bedrock CEO Heath Carr said: "When we came here, we found a lot of vitality of young people who do not specialize in Detroit in the past, but look to the future,." "There is a movement in the United States in American goods, but our problem is that they will support its own wallet, because most things here are more expensive."
Recent consumer research, including the November 2012 Boston Consulting Group survey, about 80 percent of U.S. respondents said they are willing to pay a premium for American-made goods.
Bedrock spent an undisclosed sum of the equipment and worker training last month in a clean environment Shinola watches assembled not far from downtown Detroit. Some of the major Swiss or China, but the company has two tabs certified personnel can modify the design.
"Jalil said," It means a lot to me, to make these watches in Detroit, the Detroit native Shinola two watchmakers one Kizy. Until Shinola came, Kizy Michigan has felt like many locals looking for work, they need to leave the state.
Shinola 75 person staff, have the capacity to produce 500,000 watches a year. The first batch of 2500 watches, priced from $ 475 to $ 800, within a few days early this year sold to buyers throughout the United States. Companies providing products teething problems, "Karl said, in part because Shinola demand underestimated.
"This is a good question," Karl said. "But we are trying to manage our customers' expectations."
Shinola also assembled Shinola bike here, at least two other small-scale bicycle manufacturer: Detroit Bicycle Company and custom bike builders slingshot bike, which is in West Michigan Grand Rapids relocation competition. Pashak Detroit bike, it will employ 30 people to begin production in August.
"Old crazy"
The city's new manufacturers face many new enterprises are facing common challenges: Managing consumer expectations, and strive to meet the demand, finding qualified workers to increase production, or develop new bearing costs.
Eric Yelsma form after losing his job selling specialty printing chemicals, once the price of oil reached $ 100 a barrel in 2008 Detroit cowboy. Yelsma hope to expand four Detroit cowboy wages, but few Americans know how to make jeans.
This segment of the labor force is almost minimal, "he said." "So far, we have come to dry."
Local veterans group is considering a plan to fund a six-month training course to become what Yelsma described as "crazy old" sewing machine, one of more than a century-old "cowboy blacksmith" three veterans. Detroit denim jeans sell $ 250.
Cowboys Detroit nonprofit shared space and licensing program, which makes sleeping bag coats for the homeless. Licensing Program Quicken Loans Gilbert and SPANX founder Sara Blakely backing, making donated materials - from General Motors Corporation and workwear brand Carhartt Insulated jacket.
Veronika Scott, 24 years old, graduated from the College for Creative Studies in Detroit who founded the licensing program, which means that most of the nine original adoption of homeless women, she has found a place to live, because to get a job. Coat demand is strong enough, Scott planning a "buy one, get one" program in the fall for $ 200, the customer will get the coats and a donation to a homeless person.
U.S. President Andrew Pierce, marketing consultant Prophet, said Detroit's new manufacturers to enter the U.S. carmaker Chrysler Detroit's reputation as "Imported from Detroit" ads.
"Detroit brand is very authentic and a little gritty in a good way," Pierce said. American-made goods beyond the growing desire, Detroit attraction "is the" American Dream "part is all about rebuilding the crisis."
 



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