Top 5 Ann Arbor area companies that we thought were stable, only to find out otherwise
Washtenaw County is expected to add more than 8,000 jobs in 2011, 2012 and 2013 after a protracted period of economic decline — but several notable pockets of instability remain.
Thomson Reuters employs about 800 workers at its Ann Arbor-based health care and science division, which will be sold.
File photo | AnnArbor.com
But once in a while, a company that we believed to be stable turns out to be struggling.
In 2007, for example, pharmaceutical giant Pfizer Inc. shocked Michigan by announcing that it would exit Ann Arbor, displacing more than 2,100 workers in a move even the governor didn't see coming.
Here are five companies with a local presence that we thought could be counted on for stability — only to find out recently that instability is their new reality:
1. ReCellular. The cell phone recycling firm, which maintains a 13,000-square-foot corporate headquarters in Ann Arbor and a 57,000-square-foot plant in Dexter, acknowledged Thursday that it had slashed jobs. Sources told AnnArbor.com that the company laid off about 70 workers, leaving it with more than 250 at all of its locations.
The news was particularly surprising because the company had previously claimed that it would achieve a revenue increase of more than 50 percent in 2011.
Now, it's becoming clearer that a dynamic market for recycled cell phones is being turned on its head by the surge of smart phones onto the market. There's no reason to be worried for ReCellular's existence, but it's now obvious that the company faces a tough battle for market share.
2. Thomson Reuters. The Ann Arbor-based health care and science division of the information services giant is profitable and growing — and now it's up for sale. That the division is for sale won't necessarily mean cuts. In fact, it could mean growth if the buyer decides to expand.
But a sale of an 800-person operation like Thomson Reuters' is always nerve-wracking for the local workers and community.
3. CitiMortgage. The Pittsfield Township operation of this lending giant seems to oscillate between periods of rapid growth and rapid decline.
But it seemed that the housing industry was starting to stabilize and home buyers would limp back into the market. Then, in April, the company cut 108 jobs — and projections show that mortgage originations and refinancing will stay sluggish for a while.
4. Tecumseh Products. In November, the Pittsfield Township-based maker of refrigeration units purchased a 50,000-square-foot building near South State and Textile roads with plans to launch a technology center. The deal, announced by then-CEO Jim Wainwright, seemed to signal that the manufacturing firm had emerged from the economic crisis with a platform for growth.
But the firm in March revealed a 2010 loss of $56.8 million and summarily dispensed with Wainwright, showing that stability is still a long way off.
5. Country Market. The Saline store of the Michigan-based grocery chain said in fall 2009 that the opening of a new Walmart superstore less than a mile east on Michigan Avenue in Pittsfield Township did not have a particularly notable impact on its business.
But the chain recently acknowledged that after more than 18 months of competition with Walmart, it's clear that the Walmart is costing the Country Market about $1 million in annual sales. Although the store may be fine for now, in the low-margin grocery business, that could be hard to stomach forever.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
tmo
Tue, Jun 28, 2011 : 2:26 a.m.
If 'we' were honest 'we' would add AA.com to the list.
Huron 74
Mon, Jun 27, 2011 : 11:22 p.m.
On the note about Pfizer: "In 2007, for example, pharmaceutical giant Pfizer Inc. shocked Michigan by announcing that it would exit Ann Arbor, displacing more than 2,100 workers in a move even the governor didn't see coming." Uh, that would have been Gov. Jenny. She couldn't see far enough to tie her shoes for the sake of keeping jobs in Michigan. Tens of thousands of jobs left on her watch.
huh7891
Mon, Jun 27, 2011 : 10:27 p.m.
Just because a company layoff workers doesn't mean they are unstable. Could it mean they are top heavy.. Or hired workers for the business peaks and things have slowed down..yes. CitiMortgage probably hired workers to cover the surge in refinances, things have slowed down or they could be changing processes to be more efficient...layoffs do not always indicate a Co is unstable.
RuralMom
Mon, Jun 27, 2011 : 8:38 p.m.
I always get a good laugh at people on their soapboxes with the "Buy US made". Do you know how little that means? Literally it can be made in another country (where the majority of the labor is performed) and then assembled or repackaged here, and its MADE IN THE U.S.A. Hardly seems the intent of the Buy American Made Products. Until we can get a grip on what constitutes Made in the U.S.A., we will continue to contribute to our own downfall. I am a displaced worked under NAFTA since one of my former employers closed up shop and left town in 2002. At that time, many employees choose to go on to Pfizer despite an industry reputation of building up and pulling out. When you know that's there reptuation, don't expect that you will be the exception.
towny
Mon, Jun 27, 2011 : 7:10 p.m.
The general public is not concerned about buying local or usa products. They just care about saving a little money now forget about the future. Little do they realize the ramifications of there actions. Buy local, usa or stand and watch this country struggle economically as it does. But, the general public is not smart enough to realize that the little money they save by buying other than local or usa company's will cost them ten fold down line. Do not forget about all the big corporations that have taken all the jobs out of this country to save costs. Ford is an example (mexico). Most foreign auto makers have more percentage of there vehicles built in this country than our big 3. Do not expect much to change. As long as most people get there's they simply are blind and do not care. Just try to imagine what it could be like in this country if the general public would make the right decision to keep our money here.
Dennis
Fri, Jul 1, 2011 : 5:27 p.m.
It's not just "Buy American" ! It's "Build American" ! America and Michigan will not come back until we have decent paying manufacturing jobs. That is what kept this country and this state strong. We need a "Manufacturing Policy" in this country and in this state.
Dukdust
Mon, Jun 27, 2011 : 6:50 p.m.
Spooner has a point...rather than fawn over the big employers in the city how about helping the little guys who are doing it right? Mark's Carts comes to mind...
Spooner
Mon, Jun 27, 2011 : 5:12 p.m.
Clearly I'm not as important as Borders, Pfizer, or much of any company. I have no employees except myself. HOWEVER, I have been a fixture in Ann Arbor for 40 years, and if people don't buy more of my hats, I'm going to disappear. BUY LOCAL OR BYE BYE!!!
jhammer
Mon, Jun 27, 2011 : 4:13 p.m.
So, you mean all CEOs/leaders are not completely truthful with reality all of the time? Next we'll be talking about how aa.com's staff being downsized is NOT really to upgrade local journalism as previously noted.
jhammer
Mon, Jun 27, 2011 : 9:59 p.m.
Mike K - No arguments from me. I actually believe CEOs/leaders have a responsibility to create a positive atmosphere, even if they know Rome is burning. To admit failure would have customers, employees, shareholders, etc, running for the exits in a panic. Transparency, combined with optimism is a good mix that the majority of companies share.
Mike K
Mon, Jun 27, 2011 : 9:35 p.m.
The CEO's and leaders are more truthful than ANY politician.
Roadman
Mon, Jun 27, 2011 : 3:36 p.m.
The Counrty Market scenario is not new. Drug store national chains have also hit the independents very hard and the independents are becoming a dying breed. The American icon of the small family owned grocery or pharmacy in sububurban or rural America is being supplanted by the super-chains with low-paid workers, large percentage of imported goods and poorer quality products and service..
Ann English
Mon, Jun 27, 2011 : 10:13 p.m.
Years ago, I received hardcopies of Country Market advertisements in the mail. I still base my grocery purchases on advertised food and price comparisons. But now I shop less at the Saline Walmart because the Ypsilanti Walmart has begun selling food it didn't sell in the past, in an effort to compete with Saline's supercenter Walmart. I don't rely on Walmart advertising for my purchases there; what I buy there could cost 20 cents or more elsewhere, both food and nonfood.
grye
Mon, Jun 27, 2011 : 12:49 p.m.
Have you looked at General Dynamics in Ypsi? The staffing levels are half of what they were in 2006.
grye
Wed, Jun 29, 2011 : 4:37 p.m.
You are correct, however after General Dynamics acquired the company, they mismanaged so bad that many of the technical staff have left to start other companies in the area. The potential for the facility to remain open for the extent of the lease is questionable.
John of Saline
Mon, Jun 27, 2011 : 8:47 p.m.
That's the remnant of ERIM.
JB1
Mon, Jun 27, 2011 : 12:44 p.m.
I can't even begin to comprehend how strange this article is. Something out of a high school journalism class?
toofmullets
Mon, Jun 27, 2011 : 12:38 p.m.
I don't think TR's sale of the healthcare business has anything to do with government policies. It's a very rational business decision from TR's perspective.
Mike
Mon, Jun 27, 2011 : noon
Obviusly there weren't enough regulations and taxes in place to keep them afloat along with a good healthy dose of Chinese stimulus money.
f4phantomII
Mon, Jun 27, 2011 : 11:32 a.m.
Don't forget the, "Jobs saved". LOL.
Goober
Mon, Jun 27, 2011 : 10:56 a.m.
I guess I am confused and do not know who the 'we' is, as referenced in this article. If you look at our economy and industries for the past several years, there is not a single one of these companies that would be on any list as being stable. On this basis, I would like to know who is projecting the employment growth (add more than 8,000 jobs) in the next several years, as well as the growth data to back up the projection. Maybe Google is projecting to add the same positions that they were supposed to add previously. To AnnArbor.com. Please give us more details behind this article so that we can best understand if we should start the party now on the basis of future employment growth or discount the projection as another Google employment plan to be executed.