>> WELCOME BACK.
IT HAS BEEN THAT TIME OF YEAR.
WE HAD THE STATE OF THE UNION.
STATE OF THE STATE.
STATE OF THE CITY.
NOW COMES THE STATE OF THE
REGION WHICH OF COURSE IS THE
PER VIEW OF THE DETROIT REGIONAL
CHAMBER.
VERY TRICKY TIME TO FIGURE OUT
THE HIGHS AND LOWS WITH A BACK
DROP LIKE A FUN HOUSE MIRROR
ONLY IT ISN’T ANY FUN.
LET’S TALK ABOUT IT WITH THE CEO
SANDY BER RIEW IS HERE.
ENTREPRENEUR NICHOLAS WHOSE
LATEST VENTURE IS HUSH WHICH SAY
TECH SECURITY AND DANIEL HOUSE
SENIOR EDITOR AND BUSINESS
COLUMNIST FOR THE DETROIT NEWS.
>> AND A SANDY, I WANT TO START
BY ASKING YOU OF TRYING TO
ASSEMBLE AN INTERPRET DATA AT A
TIME LIKE THIS.
I WOULDN’T WANT TO TRY TO FIGURE
OUT THE AVERAGE WIND SPEET SPEED
IN THE MIDDLE OF A TORNADO AND
THAT’S WHAT YOU ARE TRYING TO DO
A LITTLE BIT ISN’T IT?
>> YES, IT WAS WHAT MY GRADUATE
PROFESSOR IN ECONOMIC SAID.
THERE ARE OUTLINERS IN DATA BUT
SOMETIMES JUST OUTLINE NERS.
THAT’S WHAT IT S. IT IS A SNAP
SHOT IN TIME AND YOU CAN LIEU
THROUGH THIS DATA AND PAINT AN
INCREDIBLY POSITIVE PICTURE
ABOUT MICHIGAN OR AN INCREDIBLY
NEGATIVE PICTURE USING TS SAME
SET OF DATA.
AGAIN, IT’S LIKE AT COLLIDE
SCOPES WHEN WE WERE KIDS.
>> YOU TWO FELLOW PEOPLE HERE AT
THE ROUND TABLE SHAKING YOUR
HEADS.
YOU CAN MAKE THIS WHATEVER WE
WANT.
LET’S START WITH, WHAT IS THE
MOST WORRISOME THING YOU CAME
ACROSS AND MOST PROMISING THING?
>> MOST WORRISOME IS OUR
CHALLENGES PRIOR TO COVID ARE
CHALLENGES TODAY.
EDUCATIONAL ATTAINMENT RVETLE
WORKFORCE, THOSE ARE CHALLENGES
THEN AND NOW.
AND THE BEST THING AND ANOTHER
HEADLINE OUT OF HERE IS THAT
MICHIGAN HAS WITH STOOD THIS
ECONOMIC CHALLENGE, THIS
PANDEMIC PERIOD FAR BETTER THAN
A, WE WE WOULD HAVE EXPECTED AND
B, THE REST OF THE NATION.
AND WE’VE NEVER SEEN THAT IN
MICHIGAN BEFORE.
YOU KNOW THE OLD LINE ABOUT
MICHIGAN, WHEN THE REST OF THE
COUNTRY GETS THE COLD, WE GET
THE FLU.
NOT THIS TIME BUDDY.
WE ACTUALLY OUT PERFORMED AND
DID QUITE WELL AND THE THIRD
HEADLINE IS THAT THE WAY
CONSUMERS FEEL HAS NOTHING TO DO
WITH HOW CONSUMERS ARE BEHAVING.
>> BECAUSE AS AN ENTRA PA
ENTREPRENEUR, THIS IS VERY MUCH
YOUR BUSINESS.
TRYING TO FIND NEGATIVE AND
POSITIVE.
YOU WERE SHAKE YOUR HEAD WHEN
YOU SAY THINGS WENT WELL AND
THINGS NOT SO GOOD.
WHAT ARE YOU SEEING?
>> MUCH OF THE SAME.
WE’RE EXCITED ABOUT THE ABILITY
TO BUILD A BUSINESS HERE IN
MICHIGAN.
ONE OF THE THINGS THEY REPORTED
NOT ENOUGH ENPA NEWER ACTIVITY.
IN 2021.
IN THE COUNTRY FOR NEW
BUSINESSES THAT WERE STARTED.
WE’RE PART OF THAT.
WE’RE EXCITED ABOUT WHAT WE SEE
SO FAR.
WHERE ARE YOUR WORRY SPOTS AS
YOU THINK ABOUT EXPANDING AND
MOVING AROUND?
>> TALENT.
AILTS ABOUT FINDING PEOPLE.
THAT’S THE ISSUE.
EVERYONE I TALK TO IS LOOKING
FOR THE RIGHT PEOPLE.
>> YOU NOAH PARENTALLY AMERICA
HAS TALENT I HERE.
AT LEAST THAT’S WHAT NBC TELLS
ME DANIEL.
BUT THIS HAS BEEN THE THEME.
I CAN’T REMEMBER THE LAST TIME
WE WEREN’T TALKING ABOUT IT.
AND I THINK IT CONNECTS TO WHAT
WE HAVE BEEN SPENDING A LOT OF
TIME RUNNING OUR TEAM AND
WORKING ON A LOT OF THE ELECTRA
FA INDICATION AND PIVOT, I’M NOT
SURE HOW WELL PREPARED WE ARE
FOR THE TRANSITION AND I THINK
THAT GETS BACK TO THE TALENT.
AND EDUCATIONAL ATTAINMENT AND A
LOT OF HANG RINGING BACK LAST
FALL WHEN FORD SAID THEY WOULD
MAKE AN $11.4 BILLION INVESTMENT
IN TENNESSEE AND KENTUCKY AND
NOT HERE.
GM IS DOING THAT NOW.
BUT WE HAVE NO GUARANTEES AND NO
CLAIM THAT WE’RE GOING TO GET
MORE OF THAT INVESTMENT.
WE’LL GET SOME BUT A LOT PER
COULD LATING AND I DON’T KNOW
HOW WELL POSITIONED WE ARE FOR.
THAT THE OTHER THING I WOULD
SAY, I HAD THE SAME TAKE WAY
THAT SANDY DID, IT’S SO
REMARKABLE THAT THIS STATE WENT
THROUGH ONE OF THE MOST
INCREDIBLE ECONOMIC SHOCKS OF
OUR LIFE TIMES AND FRANKLY THAT
IT’S LEADING INDUSTRIES DIDN’T
RUN INTO REALLY SERIOUS
DIFFICULTIES.
>> ESPECIALLY --
>> THEY MANAGED THEIR WAY
THROUGH IT.
>> AND WHEN WE TALK ABOUT CHIP
SHORTAGES, WHAT IS HIT HARDER
THAN THE AUTO INDUSTRY.
THE AUTO INDUSTRY IS GETTING HIT
HARDER THAN ANY INDUSTRY AND
THEN YOU ADD THE WAR IN UKRAINE.
YOU HAVE A THING LIKE NEON.
YOU DON’T KNOW WHAT THAT IS.
FIFTY% OF NEON COMES OWFTS
UKRAINE AND YOU NEED THAT TO
MAKE SEMI CON DUCK TERS A.
SUPPLIESERS IN HEADS AND WE GOT
IT BUT IF WE’RE SIX MONTHS DOWN
THE ROAD.
THEY ARE GETTING WHACKED
CONTINUALLY.
>> AND SANDY, I’M A LITTLE LOST
TRYING TO FIGURE OUT WHAT THE
NEW NORMAL IS.
WELCOME TO OUR WORLD.
EXACTLY RIGHT.
SO I SEE THINGS LIKE WE’VE
ALWAYS USED DOWNTOWN RETAIL AS
AN EKG WHEN IT COMES TO DETROIT
AND WE KNOW WHAT A FLAT LINE
LOOKS LIKE, IT WAS THAT WAY FOR
A LONG TIME.
WE HAD HIGH PROFILE RETAIL
CLOSURES AND RESTAURANT CLOSURES
AND I’M THINKING TO MYSELF, IS
THAT LIKE IT ALWAYS WAS A SIGN
OF ECONOMIC HEALTH OR IS THAT
TOUGHEN UP BUTTER CUP.
THIS IS THE WORLD OF PEOPLE
WORKING FROM HOME.
IT’S AMAZON AND UBER EATS.
>> WELL, CERTAINLY WHAT WE’RE
SEEING IN CLOSURES ESPECIALLY IN
CORS, IT COULD BE THE DETROIT
CORE, DOWNTOWN TROY OR ANY OTHER
URBAN AREA, YOU’RE SEEING
BUSINESS CLOSURES BECAUSE OF
VERY THAT.
PEOPLE ARE STAYING HOME N. MY
OFFICE, IN MY BUILDING, WHEN I’M
IN THE OFFICE I COULD SHOOT A
CANYON DOWN ONE OF THE HALLS A
A, EVEN TODAY AND NOT HIT
ANYONE.
ONE, ANOTHER SIGN FOR OPTIMISM
IS THE INCREDIBLE NEW BUSINESS
STARTS.
THOSE NUMBERS ARE OFF THE
CHARTS.
WE’VE NEVER SEEN THEM ANY
HIGHER.
DURING THE GREAT RECESSION WE
WERE UPSIDE DOWN AND WE’RE
SEEING.
THAT RESTAURANTS.
YOU MENTIONED THE RESTAURANTS
THAT CLOSED, THOSE ENTREPRENEURS
WHO STARTED THOSE RESTAURANTS
ARE STARTING NEW ONES.
SO I THINK WE’RE IN THE MIDDLE
OF A CHURCHEN, NOT A FLAT STATE.
>> AND YOU WERE SAYING YOU HAD
20 NEW EMPLOYEES, YOU’VE ONLY
MET TWO OF THEM FACE TO FACE.
THAT’S RIGHT.
NEW REALITY OR IS THAT GRADUALLY
CHANGING.
IT’S GRADUALLY CHANGES.
WE HAD THE FIRST DAY BACK IN THE
OFFICE LAST WEEK.
WE WANT PEOPLE BACK IN THE
OFFICE, NOT FIVE DAYS BUT TWO OR
THREE.
AND GOING DOWNTOWN, WE’RE SEEING
THAT ACTIVITY LEVEL WHERE IT’S
NOT A GHOST TOWN IN THE ENTIRE
OFFICE BUT PEOPLE WHOO WANT TO
GET IN.
>> BUT A LOT OF PEOPLE THAT WANT
TO WORK AT HOME NOW.
>> BUT THEY ARE BEGINNING TO
COME OUT GIVEN THE WEATHER.
WE’LL SEE MORE ACTIVITIES NOW.
IT’S INTERESTING, THE YOUNGER
PEOPLE, THEY LIKE THE
FLEXIBILITY.
I LIKE THE FLEXIBILITY.
I SPENT A LOT OF TIME WORKING
OUT OF MY OFFICE AT HOME FOR A
LOT OF YEARS.
BUT WE HAVE REPORT THEARS HAVE
WORKED FOR US FOR TWO YEARS THAT
NEVER SPENT A DAY IN THE OFFICE
EVER.
>> AND I THINK THE WAY WE’RE
GOING.
>> I’M SURE THEY ARE OUT THERE
SOMEWHERE.
I THINK THE POINT SANDY IS MAKE
ABOUT RESTAURANTS AND OTHER
BUSINESSES AND WHAT WE’RE
TALKING ABOUT AND THE WORK
SPACE, THEY ARE ALL
INTERRELATED.
WE’RE WORKING ON A STORY RIGHT
NOW AND DRY CLEANERS, 30% OF ALL
DRY CLEANERS IF THEY HAVEN’T
SHUTDOWN, THEY WILL SHUTDOWN.
FEWER PEOPLE DRESSED LIKE THIS
AND NEED THIS STUFF.
AND MORE OFTEN DRESSED LIKE THIS
AND DRESSING LIKE THIS FOR TWO
YEARS AND THAT’S N- AND OUR
ECONOMY WILL PLAY ON THE
ECONOMY.
GOOD BECAUSE THE DRY CLEANERS
SHRUNK ALL MY CLOTHES.
>> THIS GREAT WHATEVER YOU WANT
TO CALL IT.
THE GREAT RESIGNATION, GREAT
RECONSIDERATION, WHATEVER IT S.
IT TELLS US SOMETHING WE LONG
SUSPECTED ABOUT YOUNGER WORKERS.
THEY DON’T HAVE THE LOYALTY TO
THE EMPLOYERS THAT I THINK
EMPLOYERS OVER DECADES HAVE
GROWN TO EXPECT FROM THEIR
WORKERS.
THAT’S HUGE IMPLICATION.
YEAH, BUT LOYALTY IS LEARNED AND
WHAT DRIVES EMPLOYEE BEHAVIOR
HAS CHANGED OVER THE DECADES.
DANIEL AND I ARE OLD ENOUGH, NOT
YOU NICHOLAS THAT WHEN WE GOT
THE ASSIGNMENT FROM OUR BOSS
THAT’S YOU’RE MOVING TO
NASHVILLE, WE WOULD SAY GREAT, I
ALWAYS WANTED TO MOVE TO
NASHVILLE.
AND THE NEXT THING WE DO IS LOOK
AT A MAP AND SAY WHERE IS
NASHVILLE?
>> WORKERS TODAY WON’T DO.
THAT EMPLOYERS HAVE TO BE FLEX A
ABLE.
TODAY’S YOUNG WORKERS WORK HARD
AND THEY ARE INNOVATIVE BUT THEY
WANT TO WORK ON THEIR TERMS.
WE HAVE TO FIGURE OUT WHAT THEY
WANT AND PROVIDE THAT BALANCE
BETWEEN WHAT THE BUSINESS AND
OUR CLIENTS WANT AND NEED AND
WORK WITH THEM.
AND YOU HAVE TO TRUST THEM AND
TRUST IS EARNED AND IN OUR DPIS
BUSINESS, IF YOU’RE WORKING
REMOTELY AND YOU DON’T ANSWER
YOUR PHONE OR TEXT OR E-MAIL,
THAT’S A REAL PROBABLY.
AND BUT AS LONG AS YOU DO AND I
KNOW YOU’RE THERE AND A KNOW YOU
CAN DELIVER, THAT’S WHAT
MATTERS, IT’S NOT WHERE YOU’RE
SITTING BECAUSE WE RUN A NEWS
ROOM AT THE DETROIT NEWS AND
WE’RE NOT THE ONLY ONE.
EVERYONE HAS DONE IT REMOTELY
FOR TWO YEARS AND DONE A LOT OF
REALLY GOOD WORK AND HAD HUGE
READER SHIP BUT SO WE KNOW HOW
TO DO IT.
THESE PEOPLE NEED IT.
I’M VERY CURIOUS NICK LOST ABOUT
WHETHER OR NOT PEOPLE HAVE THE
SAME.
WE’RE SEEING EVERYBODY OVER ZOO.
IT’S DIFFERENT AND YOU’RE NOT
HAVING THE SAME CONVERSATIONS IN
THE HALLWAY OR AT A CUBICLE
WHEREVER IT MIGHT BE.
WHAT ARE THE IMPLICATIONS FOR
YOU SO WE’RE FINDING PEOPLE AS
THEY ADVANCE THEIR CAREER, THEY
WANT TO GET BACK TO THE OFFICE
BECAUSE THEY NEED THAT MENTOR
SHIP.
YOU HAVE SOMEONE LOOKING AFTER
OR GUIDING YOU.
YES, THOSE FOLKS DON’T HAVE.
THAT THEY ARE LOOKING TO COME
BACK AS A RESULT OF.
THAT AGAIN, IT WON’T BE THE FIVE
DAYS A WEEK BUT THEY ARE LOOK
FOR CEREMONIES.
YOU COME IN AND WE HAVE A
COMPANY GATHERING OR WEEKLY
COFFEE.
AND THOSE HUMAN ACCESS.
THESE ARE STILL NEED.
I’M NOT SURE YOU HAVE THOSE AS
WELL.
WE HAVE THE YOUNG FOLKS.
AND WHAT EXECUTIVES ARE LOOK
FOR.
THE REASON WHY THE SMART ONES
WANT THEM BACK IS NOT FOR
EFFICIENCY AND NOT FOR
MONITORING.
IT’S FOR COLLABORATION AND
INNOVATION.
DRIVING QUALITY.
THOSE ARE THE THINGS THAT HAVE
BEEN A CHALLENGE DURING ZOOM.
DON’T UNDERESTIMATE SOMEONE LIKE
GENERAL MOTORS.
TWO WORDS, WORK APPROPRIATELY.
YES, TERRIFIC ADVICE.
I WOULD SAY YOU HAVE THE GLASS
3/4 FULL FOR THE DETROIT REGION.