Michigan as an Automobile Hub - Essay Example

? Michigan as an Automobile Hub Introduction Detroit is stands out as the most populous of Michigan and was the first in the country to host automobile companies. Some of the major automobile companies to establish their bases in the State included: Ford, General Motors and Chrysler. However, the place was not only home to auto manufacturers, it was also home to dealers and suppliers of auto parts. There are many reasons behind this. For instance, even before motor vehicle were invested or brought to America, Detroit was an industrial city boasting of a diverse, extensively regional manufacturing hub. In addition, in 1990, the city ranked thirteenth amongst largest cities in the United States with a population of about 285,000 residents (Cooney & Yacobucci, 2006). The other thing is that the city was situated along a river, whose water offered power and transportation for outgoing goods and incoming supplies. This paper therefore, seeks to find out why for almost the past hundred years, the automotive industry has dominated Michigan’s economy. In addition, the paper will explore how and why the industry established itself in Michigan, and what have been its effects--positive and negative. From the beginning, Detroit was preferably positioned to be a hub of the automobile industry in the United States. This is based on the fact that the place was squarely located in the heartland of United States—an area that connected many other key regions in the US. For instance, it was linked Pennsylvania, lower New England, Ohio, Illinois and Indiana (McAlinden & Andrea, 1992). With these, the required raw materials for production of automobiles were easily transported to the city via rail and the Great Lakes waterways (McAlinden & Andrea, 1992). Furthermore, the coal producing regions of West Virginia and Pennsylvania were directly connected to Michigan and specifically Detroit by rail. Furthermore, the great steel factories of Youngstown, Pittsburgh, Gary, Chicago and Cleveland were just a few miles away from Detroit. The copper and iron mining zones of Minnesota and northern Michigan were reachable without any difficulty by ship (McGinnis, 2005). The other contributing factor was that its centrality at west and east confluence offered auto manufacturers easy access both to the much needed capital and product markets for its unprecedented growth. The contribution of Henry Ford and Dodge was another factor behind the establishment of Michigan as an auto hub (Cooney & Yacobucci, 2006). Before, the coming of Ford, the first auto companies were very tiny operations, however, this changed as Ford invented the methods of mass production, along with the advanced assembly line techniques, including vast River Rouge complex, aspects which turned around the scale and scope of auto production in Michigan (McGinnis, 2005). Dodge, on the other hand, set up an enormous Main automobile Plant just close to that of Ford. All these grand automobile plants served to turn Michigan into an American automobile hub. The accessibility of Detroit also brought in enough workers who provided reliable labor for the labor-hungry automobile industry. Potential auto workers from Midwest moved into the area as a result of the declining logging industry. In short, Henry Ford, based in Detroit, Michigan, was responsible for the groundbreaking innovations that were later copied by competitors such as Chrysler, American Motors and General Motors. Each organization set up their headquarters in the Detroit making it the main center for car production not just in America but also world over. Positive impacts of auto industry in Michigan Enhanced Diversity The emergence of the automobile industry completely transformed Michigan and especially Detroit, attracting more than one million new migrants and via its technological aspect and its demographic impact, reshaped the cityscape in different ways. The population of the State changed in diversity (McAlinden & Andrea, 1992). On top of migrants from the hinterlands of Midwest, auto producers, more and more cast their nets wide. Companies such as Ford recruited skilled employees from the industrial areas of Scotland and England. With the need to find more new labor sources, companies extended their recruiting networks overseas, to places such as the Middle East and Mexico. Real Estate Developed In the 1920s, the State of Michigan and particularly Detroit City underwent rapid growth analogous to automobile production. Its population had increased to about 1.7 million, making Detroit the fourth largest city in America. With this, by the mid-20th century, the city of Detroit had emerged as a home of blue-collar workers (McGinnis, 2005). In the 1920s, a number of automobile workers utilized their income to buy plots to set up their own homes, some bought brick bungalows or the small wood houses that were developed in the suburbs of Detroit. After World War II, however, rates of acquiring homes increased leading to the establishment of mortgages to enable workers to own homes (McGinnis, 2005). Flush with the riches generated by auto manufacturing, white collar employees, on the other hand, started to purchase homes in places that were more and more far-away from places where blue-collar employees were based. Attracted good Infrastructure Auto workers together with the automobile companies reshaped the geography of not only Detroit, but also Michigan as a whole. Two of the first expressways in the US were set up in Detroit. In 1942, the Davison Freeway was completed to offer easy access to the automobile companies in Highland Park as well as the East Side. Another expressway was constructed during World War II to connect the city of Detroit with the expansive Willow Run aircraft factory (McAlinden & Andrea, 1992). The new expressways sped the suburbanization process. New housing projects for both white and blue collar automobile employees sprung up nearly everywhere. Negative Impacts Declining public Transportation As Detroit and Michigan developed, as a result of the booming auto industry, public policy oriented toward private car ownership (McAlinden & Andrea, 1992). This led to a decline in funds for public transportation, resulting in a fall in ridership. With this, states public transit system was neglected, leading to increased service cuts in addition to reducing public support for the system. In fact, by the end of the 20th century, it was apparent that the State that was home to American automobile industry had poorest and dilapidated public transit systems. Decentralization and Downsizing The decentralization of the auto industry, in the 1950s, had profound impacts on both the workers and the urban geography of the city (Cooney & Yacobucci, 2006). The decentralization accelerated the suburbanization process, as autoworkers followed their jobs. However, this process depended on the capability of individuals as auto companies relocated to white small towns far-away from where most blue-collar workers lived. Black workers were the most disadvantaged people during this process. They lost their jobs in the central city of Detroit and could not be accommodated in the white small towns or simply the isolated suburbs that attracted a number of automobile companies. Further, given the lack of proper public transportation system, workers from the central city found it hard to get to their places of work. The Beauty of the City was Lost The downsizing process as well as shutdown of factories in central city of Detroit devastated urban and adjacent neighborhoods. For instance, the bars, restaurants and small shops that catered to autoworkers shutdown (McAlinden & Andrea, 1992). People, as well, relocated from the neighborhoods that provided autoworkers for plants that were closed. With the looming old factories and without jobs, such neighborhoods became less attractive to anyone who wanted to settle down. Detroit city also struggled so much to recover the revenues they lost as a result of the closure of automobile companies. The loss of wage taxes, property taxes as well as the population was highly distressing, particularly for the local government as it had to foot the costs of not only providing education, but also social services to an poor population (McGinnis, 2005). The impact of plant shutdown on the environment was shocking. The place was typified by accumulated residue of industrial waste. In general, Michigan and more especially major cities retained the glory of the state as a home to automobile industry in America. However, the problems of laying-off workers and pollution have characterized the industry. For instance, at the turn of 21st century, nearly all automobile companies in the state risked running out of operation due to insolvency. Conclusion As it has been established, there were reasons as to why and how the auto industry was established in Michigan. The State had a well developed city of Detroit that served as the point of attraction. In addition, the city was served by the much needed transport systems that would deliver both finished products and raw materials to the plants. The innovativeness of Henry Ford also served to position Detroit as an automobile hub. These industries also had constructive and negative impacts to the state. They offered employment, tax revenue and supported rapid infrastructural developments. On the other hand, other areas were neglected and the aspect of decentralization and downsizing completely affected the image of the city. References Cooney, S., & Yacobucci, B. (2006). United States automotive industry: policy overview and recent history. New York : Nova Science Publishers. McAlinden, S., & Andrea, D. (1992). Michigan: still the automotive state?: state policy and the automotive industry in Michigan. Detroit: University of Michigan. McGinnis, C. (2005). Michigan genealogy: sources & resources. Baltimore: Genealogical Pub. Co.,. Read More