Ypsilanti Township retailers feel strain from General Motors' shutdown of Willow Run plant
Last Wednesday American Tailoring owner Ruth Bradley called two of her employees and told them their services wouldn’t be required for the remainder of the week.
Three years ago, those same employees would have logged eight to nine hours everyday, but business has dropped off so steeply that Bradley mostly works alone at her Ford Boulevard shop in Ypsilanti Township.
Like most other business owners in the area, the impact of General Motors shuttering its Willow Run Plant can be found on the small business’s bottom line.
That has led the many mom and pop shops on the eastern edge of the community -many of which once served thousands of plant employees - to lay off their own staff.
“You could call any business around here and ask anyone - they have been affected by the plant closing,” Bradley said. “I have seen a huge difference. That’s why a lot of people are laying off employees. They can’t help it. If you want to keep your doors open, you are going to have to make cuts.”
Like many businesses within a close proximity to the plant, Bradley’s strategy for survival calls for cutting overhead and relying on less people to perform a day's work. She only uses lights that are “absolutely necessary” and doesn’t turn on her neon outdoor sign quite as much.
Ron Scheuneman, a manager at Preferred Auto Glass and Trim, reports that his Ypsilanti Township location near Woodlawn Avenue and Ecorse Road has dropped from five employees to three over the last four years.
He said the company has seen a roughly 50 percent drop in business during that time and different approaches to reducing overhead are being considered, such as negotiating better deals with suppliers to help lower prices.
Scheuneman said people just don’t have the disposable income to fix up their cars like they used to when the factory workers were taking home thousands in profit sharing and putting in overtime.
“They had money flowing out of their pockets and they were spending it on everything they wanted,” Scheuneman said. “That’s not the case now.”
Lunch sales at the Pizza Perfect on Ford Boulevard were brisk until the factory’s employee population started dwindling several years ago. Now Jennifer Hildebrandt, who co-owns the store with her husband, said they are considering whether or not it’s worth staying open for lunch.
She estimated Pizza Perfect's sales have dropped by roughly a third over the last several years, and they plan to advertise more, despite the cost of doing so.
Hildebrandt remains hopeful someone new will move into the factory, but says the 12- to 14-hour days she and her husband work at the pizza parlor aren’t producing as much in sales.
“We used have tickets and tickets of Hydromatic orders lined up everyday," she said. "... It has slowly kind of disintegrated over the last few years.
“We need to think about what we’re going to do because it’s really tiring, and the lunch shift mostly isn’t doing it anymore.”
Jason Broski, owner of C.J.’s Cycle and Marine on Michigan Avenue experienced a similar decline in sales over the last three years. Employees there have taken wage cuts and Broski says he isn’t paying as many bills as he once was.
He said he is fortunate C.J.'s overhead was low before the situation deteriorated, otherwise the store might not be open today. Still, Broski has entertained the idea of moving C.J.'s somewhere to the South where heating bills aren’t such a concern, but he figures the economy isn’t much better anywhere else.
“Everything gets cut in half except bills and utilities,” he said. “I just hope it comes back, but it feels like when they close it ain’t coming back.”
Comments
Monica
Sun, Dec 26, 2010 : 8:55 p.m.
This is a late comment to this story but I can speak, as a customer of American Tailoring on multiple occasions, (including altering my wedding dress in 2000) Ruth is a great lady, a Christian (you would get 10 percent off for taking in a Sunday Church Program) and would be a grave lost to the Ypsilanti Township community if her business were to close. We have to DO SOMETHING to help these local business owners out until this economy in Ypsilanti Township picks back up. I am sure that she did not want nor desire to lay-off the two workers she was forced too due to falling revenue for her business. Ypsilanti Township is 'thisclose' to looking like a ghost town. The city of Ypsilanti (downtown) is three steps away from the same. If nothing is done, both areas will appear more like Detroit than the Middle Class community many of us were raised within. I will be praying for Ruth and her business, being able to survive this storm!
AlphaAlpha
Sun, Dec 19, 2010 : 4:07 p.m.
To be clear, the astute comment was with respect to Mr. Jacobs' first comment. The tone and differences between his first and second comments are compelling. We do not need to (nor can we even) 'declare the almighty dollar worthless'. A unit of currency (as opposed to money) is just that; it's value is perceived, not inherent, but the issues western society face today are irrespective of the currency at hand, as well as whether we have a 'capitalist' (we don't) system, or a 'socialist' system (we don't), or some hybrid (we do). The issues are also unrelated to wealth distribution, which, prior to the industrial revolution, was much more lopsided (in favor of the rich) than 80/20. The issues at hand stem from deep seated human psychology, from hard wired and soft wired phenomena, and from an interaction of economics and sociology. We have just experienced a credit mania; one of many throughout recorded history; it will likely play out, i.e., unwind, over quite a few years, and it will be a most unpleasant experience for many people, but it is temporary, and there will indeed be brighter days ahead.
AlphaAlpha
Sun, Dec 19, 2010 : 1:54 p.m.
Astute comments Mr. Jacobs. Additional factors include: 1. Trade policy (understood and influenced by few outside the various groups organized to influence national trade policy) encouraging what is now called outsourcing and offshoring. 2. US citizens choosing not to purchase the variety of economical cars which were in fact continuously offered by domestic automakers; this factor is comparatively minor compared to others, as large vehicle gas mileage improved dramatically; importers sold many SUVs here as well. 3. The unchallenged ability of an illegal trade cartel (with tacit approval from non-cartel producers) to conspire, and succeed, in keeping crude oil prices much higher than a legal, free market would allow. 4. Encouragement for citizens from advertisers, lenders, and all manner of product manufacturers and marketers to spend freely on products which are not particularly needed, has led to consumer and public debt levels which are unsustainable. 5. The profound lack of even basic financial education taught in schools today puts 'graduates' at a substantial societal disadvantage; the side effects of this financial illiteracy are widely evident to those looking for it. 6. Comparative glorification of entertainment, leisure, and profligate spending, compared to learning basic finance, saving for the future, and working a little more while it's possible, has also contributed substantially to a nation which now faces another multi generational economic event which will result in a lower standard of living for virtually every citizen. Even those in professions seemingly insulated from the general public are, and will continue to be negatively affected: lower real estate values, lower equity values, lower wage increases, etc. Welcome to the Age of Austerity.
Soothslayer
Sun, Dec 19, 2010 : 12:36 p.m.
@jns131 - Good reference about Ohio as they may be worse off than Michigan, who knows? YES, M!ch!gan! We're #1 (for last). Here's a related article about the plight of Ohio from chief economist out of DC Dr. Charles McMillian that may help with some insight and understanding regarding how debt, "stimulus" (also funded by foreign debt) and the evils of unchecked trade deficits can ruin the "American Way" we've worked so hard and continue to fight for: http://www.ourfuture.org/blog-entry/out-work-ohio. You can read more of his equally depressing but nonethless truthful and insighful posts here: http://www.ourfuture.org/users/new-383 Revisiting this has gotten me worked up so now for the full on, no holds barred rant (news)... Recovery for 2011 or 2012? No. Just because companies, according to Wall Street (who benefits when companies make money), are reporting profits (they NEVER "cook the books" to appease shareholders) doesn't translate to mean that the middle class, the ovewhelming majority of the American economic engine, will be able to find "work", support its families and rise above poverty. The distribution of wealth of America has forever changed and will not return to the masses unless we all agree to declare the almighty dollar worthless. Think about it, most (population wise) would probably have little to loose and alot to gain by starting over with a clean slate and new monetary system. Wealth used to be controlled by an 80/20 split (20% controlling 80% of the wealth). Henry Ford had it right, pay people a decent working wage and together you can share in the prosperity. This ideal worked well for America during the next several decades of the industrial age. Today the wealth distribution in the US is more like a 95/2 split (95% of the wealth is now controlled by top 2 or 1%). Thanks to decades of erosion of the Ford idea through government policy, special funding and the work of the now extinct "middle class" the once affluent shareholders have now been able to become the super rich. Do we now need to find or create a new news source that will correctly report on and represent the interests of the "common man"? Probably. Big media is telling you what the shareholders want you to hear: Everything's fine, spend and keep the wealthy in power. Spend what little money you have & we can go back to the good old days of buying on loans, credit cards and prayers. Cash your unemployment checks at Walmart & save!
jns131
Sun, Dec 19, 2010 : 11:31 a.m.
Andy Jacobs? Amen to that statement. My husband and I totally agree that if the big 3 kept up they would not shuttering today. Yes, I agree unions have hurt but they do help as well. Nevertheless, the only thing to do with that huge area is either turn it into a huge outlet mall or tear it down. Because I really don't think anyone wants another Cedar Point in the area. An end to an era and what a sad downfall for everyone involved.
Myles
Fri, Jun 22, 2012 : 10:04 p.m.
The huge space still remains empty but the the airport next door is still busy as always. And I agree, either tear it down or turn it into something that Ypsilanti needs. But I would love it if one of the big 3 re opened the plant. That plant is the same plant where Jeep was founded and for GM to just get rid of it like that is ridiculous
Soothslayer
Sun, Dec 19, 2010 : 11:10 a.m.
Too bad the Big 3 didn't take the foreign car "invasion" seriously enough 30 years ago and instead focused on building big crappy vehicles that INCREASED our foreign oil dependency. Double or triple whammy against the US now that many from this industry are now unemployed (no US sales, more US $ overseas, no US mfg work). Regarding all other products everyone can thank themselves for shopping price, price, price and praising Walmart for crummy landfill merchandise. For decades during the "transition" Americans had a choice and could have demand American made quality products but you didn't care. We were happy as clams buying big gas guzzling SUV's and crappy products at Walmart to save a dollar but in fact each dollar "saved" and more foreign oil monies spent just further increased our trade deficit and put the US deeper and deeper in the hole. Lesson learned? Most likely not. Save up, buy and demand quality American made (not 1-2 yr landfill trash appliances and textile goods) and keep more of your $ in the US by conserving fuel as much as possible. Wasting gas (remember where it comes from and where your $ goes) isn't good for our economy and overall is unpatriotic. "Home" economics 101 folks, think.
Glen S.
Sun, Dec 19, 2010 : 10:20 a.m.
Funny how -- with all the recent congratulations being offered to the lean, mean and "profitable" NEW GM -- nobody ever seems to mention that the "new" GM exists only because it was given permission to jettison all or most of its now-undesirable legacy plants, equipment and people. While executives at GM are busy being patted on the back for their company's "recovery," thousands (hundreds of thousands?) of its former workers and retirees -- along with the many small businesses, neighborhoods and communities that have served and benefited from it for generations -- are left to pick up the pieces.
jondhall
Sun, Dec 19, 2010 : 9:48 a.m.
As a capitalist its difficult to say this, however we need to close our borders and tax all imports. As a young boy I recall my father who worked at Ford, coming home and commenting, on how the Japanese where touring the plant, taking pictures and notes. Competition is fine, stealing our technology, having the government subsidize your product is another thing. We can still make anything in this country, we can be self reliant. Rumor is when Donald Trump is elected all IMPORTS will be taxed. NAFTA what a novel idea for Mexico that is. May I say in ending not what Reverend Wright said, may I still say God Bless America?
average joe
Sun, Dec 19, 2010 : 9:29 a.m.
Not that my comment is directly related to the closing of this piece of history, but does show how far we've drifted away from the way America provided for itself in the past as fasteddy said. I bought a couple of 1x4s at the local home depot yesterday that the label said were a "product of sweden". These were just common boards, like regular 2x4's, nothing special. If we can't even raise our own trees, & mill our own lumber, then we have a much bigger problem in this country. I find it hard to believe that it is cheaper for HD to buy lumber from across the atlantic & ship it here than it is for us to produce it in this country, or even Canada.
goingfast3579
Sun, Dec 19, 2010 : 7:10 a.m.
I feel for the small business but this has been going on for 20 yrs or more. Sure Hydro but there neighbor B.O.C. a lot of those people went south to Saturn. That's another story. I will not get someone started on Union Workers or Non but both these jobs paid a living wage for those to use how they wished whether it be buying a American made product, Which most Manufacturing workers still will look for. Buying a Home, Paying Taxes, Sending selves or Children to school. Starting a small Business. Spending the money locally. Nobody has mentioned how Manufacturing Workers have donated to charity whether with money or time. The United States started with Inventions and Manufacturing. When they are to build a new store existing property should be used. If another country can ship here we sure can make product and ship there. If there is a need for a product in another country re-open closed plant here make part and ship. If there is a need to close plant here and there is a plant elsewhere close that plant and bring it back. Sorry to sound isolationist but that is how it should be we as Americans, South East Michiganders we need to take care of # 1 as we are and should always be # 1. By the way this out of story but Happy Holidays to all.