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Incoming Asian companies to boost
Detroit's Economy Is Detroit Ready?
By Aaron Foley
The Michigan Korean Weekly
T
he momentum around Detroit's slow-but-steady come-
back has attracted throngs of new residents to the
city's downtown core and reinvestment from several
firms. But while big real estate deals and large-scale moves
grab headlines, smaller business owners are still taking a
wait-and-see approach, particularly minority-owned firms.
Across Metro Detroit, suppliers, logistics firms, engineer-
ing offices, medical companies and other businesses are
weighing their options. Hedge their bets in the suburbs or
ride the waves in Detroit?
Yong Joo Lee is president of automotive supplier Kwang
Jin, which counts General Motors and Chrysler as two of its
biggest clients. The company's rapid expansion and dealings
in both the Americas and Lee's home in Korea prompted the
company to consider growing in Detroit.
But while headquartered in Sterling Heights, Kwang Jin
eventually settled on a building in Warren for several rea-
sons and will expand there next year, Lee says. For one,
while downtown Detroit is on an upswing, the company was
hesitant about other areas. And downtown Detroit doesn't
have the type of facilities — a widespread, up-to-date ware-
house-type with thousands of square footage, for example
— that would meet the company's needs.
Another reason? Safety, Lee says. "One of the things we
asked our employees was about security if we went down-
town, and how many police officers are in the city of Detroit
before and after the bankruptcy. It sounds like people don't
think downtown has enough resources for businesses that
need security."
Detroit's tax on employees who commute out of the city
hurts employees, too. "If they are not living in Detroit, they
have to pay city tax. That's one of the concerns of people. I
don't know why a metropolitan city does that," Lee says.
Kwang Jin makes an effort to hire within the city, often
through agencies, but many of those employees end up
moving to the suburbs anyway, Lee says. "Many of the
Chaldeans are going to Warren," he notes.
Macomb County saw the highest gain in Asian-American
and Pacific Islander population since 2000, rising 48.3% and
nearly tying with Washtenaw County with an overall popu-
lation of 25,242 residents, according to the 2010 census.
Oakland County is the most densely populated, with nearly
70,000 Asian-American and Pacific Islander residents.
But, Lee adds, "When we hire, it doesn't matter where
they live. It's mostly about their skills."
For Grace Lee, chief financial officer and a co-founder of
developer Logic Solutions, hiring is often tied to proximity
to her firm's Ann Arbor location. Most of the talent is drawn
from the University of Michigan.
Because the university has consistently drawn Asian stu-
dents, many have put down roots in the Ann Arbor area over
the last few decades — something Detroit lacks, Lee says.
"Asian markets, Asian restaurants — they don't have it (in
downtown Detroit)," Lee says. "It becomes a chicken-egg
thing."
International recruits tend to feel more comfortable in
areas where "it feels like home," Lee says. "We like to be
around the culture that we know."
Like Yong Joo Lee, Grace Lee agrees that Detroit's come-
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risks of locating their operation
in any city based on the poten-
tial return to their investors. So
we may say that we cater to certain industries or certain
countries, but ultimately, we have to cater to the business
acumen of the company's investors and management," he
says.
While not having the same issues with utilities as Taquim,
Wong says he hopes Detroit Mayor Mike Duggan and the
city council continue to emphasize safety and security for
all who do business in the city limits, as well as eliminat-
ing bureaucracy and fixing other issues — like roads, for
example.
"Like every major city, we have areas of benefits and
areas where improvements can be made. Detroit has
evolved and reinvented itself many times as our population,
our industries and our economy change," Wong says.
Despite Detroit's numerous challenges, solidarity is the
Yong Joo Lee, President of Kwang Jin America
key to success.
Wong adds, "one of the main areas to focus on is to work
back is partially reliant on creating communities that are
together,
regardless of class, race, religion, age, wealth, to
welcoming to all. "It's going to grow naturally," she says,
tighten our belts together where needed, to look at the long-
noting the city's past efforts to create a Chinatown or Asian
term benefits even though there may be short-term inconve-
Village didn't take off as expected.
nience — so that all of us in the area will leave the city in a
There are success stories in the city — though they come
continuously
better position for our next generation."
with some compromise.
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When looking to set up shop for MQRG, an automotive
retrofitter, Ehsan Taqbeem and his business partner wanted
nowhere else but Detroit. They have office space just a
stone's throw from a Chrysler plant in eastside Detroit, a few
miles from downtown.
But while business has been good, Taquim says there
have been challenges with city services — and services
offered in the city. When they first opened, it took months
for DTE Energy to set up service. MQRG also doesn't have
running water in its office, because the Detroit Water and
Sewerage Department, for reasons unknown, has yet to
show up.
"Don't let anybody fool you, Detroit still has a lot of chal-
lenges," Taqbeem says. "We still don't have internet service
About this series
Five minority media outlets with a combined estimated circulation of
120,000 weekly--Latino Press, The Michigan Citizen, The Jewish News,
The Michigan Korean Weekly, The Arab American News—are part of
New Michigan Media and are taking part in The Detroit Journalism
Cooperative (DJC). Funded by the John S. and James L. Knight
Foundation, Renaissance Journalism's Michigan Reporting Initiative and
the Ford Foundation, the DJC aims to report about and create com-
munity engagement opportunities pertaining to the Detroit bankruptcy
and recovery. Each article in the series appears in all the NMM member
newspapers. This article is from THE MICHIGAN KOREAN WEEKLY. The
DJC is a unique collaboration between important media outlets of the
region, and includes The Center for Michigan's Bridge Magazine, Detroit
Public Television, Michigan Public Radio, WDET and New Michigan
Media. The Detroit Free Press is also participating in the DJC effort.
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