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Campbell Ewald Returning to Detroit

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bilde?Site=C3&Date=20130306&Category=BIZ&ArtNo=303060324&Ref=AR&MaxW=640&Border=0&Ad-agency-Campbell-Ewald-relocating-downtown-Detroit

Ad agency Campbell Ewald relocating to downtown Detroit | The Detroit News | detroitnews.com

"A variety of sources are reporting Campbell Ewald's move could bring up to 600 workers downtown."

I am sure this got some play in other threads running, but I thought it merited a separate thread. I first heard the news yesterday and started doing some research on the topic this morning.

I am very excited about this. Baby steps. Everything starts with baby steps. Bringing close to 600 full time employees back to the heart of Detroit can do nothing, but help.

How many of those 600 will be single, 20 somethings that will pick up and move somewhere downtown close to work? If I were single, 20 something (neither apply) and found this out and did not have a house already...I would 100% move to a loft or apartment down there.

The only negative is to Warren, but Warren is not hurting like Detroit is (at least I have not heard of them hurting, but either way Detroit is the center and needs it more than Warren does....sorry if you live in Warren.).

Do you guys see any negative impact besides Warren?

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The reason they moved back in 1978 from Detroit to Warren (at least what they SAID the reason was)....was to get closer to the HQ of the biggest firm they had a contract on (GM), GM dumped them in 2010 and now another big company they just recently signed on with is:

It has since diversified, adding Zipcar, the world's largest car-sharing service, earlier this year.

Maybe Zipcar is closer to reality for the Detroit area then I originally thought.

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I'm sure all their workers are thrilled that they now get to pay that wonderful city tax.

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I'm sure all their workers are thrilled that they now get to pay that wonderful city tax.

It is only 3% and we are not talking about people making 8.00 an hour, so I think they will be fine.

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It is only 3% and we are not talking about people making 8.00 an hour, so I think they will be fine.

3% of say, 50 grand a year is something like 1500 in extra taxes, according to my bad math skills.

I'd not be happy.

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3% of say, 50 grand a year is something like 1500 in extra taxes, according to my bad math skills.

I'd not be happy.

If you get paid weekly that is 29.00 a week. If you are on a very strict budget that would hurt a little. We have friends who are hardcore on the Dave Ramsey bandwagon. So strict if they run out of food money allocated for that month they buy no more food and go to their parents house to eat.

For them this would suck. We have a budget, but it is fairly flexible so it would not effect us as bad.

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I'm sure I'll be labeled a Detroit hater, but Campbell Ewald moving is a benefit to the economy of 0. All we've done is shuffle the chairs around the dining room. It hurts the tax base of Warren and helps Detroit. Big deal. I'd rather the taxes go to Warren.

When we start bringing in business's from outside the state, now your talking job creation and THEN it's time to get excited.

Also, I'm very curious what were the incentives given to Campbell Ewald to move and after subtracting those incentives from the taxes generated is it really a net positive for Detroit?

Call me cynical, but there has got to be something in it for Campbell Ewald besides the pleasure of working in Detroit.

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CE is down to under 600 employees? man, they really are hurting. i have to imagine they've closed their Southfield office entirely.

that stretch of Van Dyke where they are located has been dead for a decade. i'm surprised it's taken them this long to leave, proximity to the Tech Center be dammed.

i'm so glad i got out of that crappy business.

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Yes, but this cuts into people's fireworks money. How else are they gonna' be able to set off m80s at one in the morning on weeknights?

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I'm sure I'll be labeled a Detroit hater, but Campbell Ewald moving is a benefit to the economy of 0. All we've done is shuffle the chairs around the dining room. It hurts the tax base of Warren and helps Detroit. Big deal. I'd rather the taxes go to Warren.

When we start bringing in business's from outside the state, now your talking job creation and THEN it's time to get excited.

Also, I'm very curious what were the incentives given to Campbell Ewald to move and after subtracting those incentives from the taxes generated is it really a net positive for Detroit?

Call me cynical, but there has got to be something in it for Campbell Ewald besides the pleasure of working in Detroit.

You have to understand trickle down economics. Even with 'incentives' this is a plus for the city...for the state? I agree the net is basically zero (but I may be able to argue there would be a positive for the state as a whole simply for the major city to start an uptrend.)

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CE is down to under 600 employees? man, they really are hurting. i have to imagine they've closed their Southfield office entirely.

that stretch of Van Dyke where they are located has been dead for a decade. i'm surprised it's taken them this long to leave, proximity to the Tech Center be dammed.

i'm so glad i got out of that crappy business.

Hater.

:classic:

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I worked there for 5 years. This is the right decision for any hope of new clients and talent. However. this is not a good company. Pretty sick from the top down. And keep in mind I have worked at 5 agencies and love 4 of them. So I hope there has been a culture change that helps retain good clients and people.

As far as city tax. It will absolutely hurt a lot of people. I know the general feeling is all ad people make six figures and live lavish lifestyles. But that is not true at all. There are many, many people making 25-50K. Advertising can pay well. But that is for a very elite few.

I know this is a very disorganized rant. But I guess I would say that this is a step in the right direction. And I hope they have learned through 3 years of a lot of failure that they need to do things differently. Cause that is the only way this is a success.

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You have to understand trickle down economics.

rhino would be about the last person I would suggest needs to understand trickle down economics.

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If you get paid weekly that is 29.00 a week. If you are on a very strict budget that would hurt a little. We have friends who are hardcore on the Dave Ramsey bandwagon. So strict if they run out of food money allocated for that month they buy no more food and go to their parents house to eat.

For them this would suck. We have a budget, but it is fairly flexible so it would not effect us as bad.

I don't care how you break it down, losing $1,500 from your salary would suck. It shouldn't stop people from eating or paying the bills, but it would easily make life less comfortable for those families making around $50,000 a year. Hopefully this increased expense due to moving is offset by increased revenue to the company and thusly (hopefully), an increase in everyone's pay.

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3% of say, 50 grand a year is something like 1500 in extra taxes, according to my bad math skills.

I'd not be happy.

Everyone please at least argue over the right numbers.:wink:

For 2013: 2.4% resident, 1.2% non-resident payroll, 2% corporate.

Longer term the state has mandated it fall to 2%/1% over the next few years.

Edited by Gehringer_2

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I don't care how you break it down, losing $1,500 from your salary would suck. It shouldn't stop people from eating or paying the bills, but it would easily make life less comfortable for those families making around $50,000 a year. Hopefully this increased expense due to moving is offset by increased revenue to the company and thusly (hopefully), an increase in everyone's pay.

Come on, the tax would only be about $0.17 an hour.

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Come on, the tax would only be about $0.17 an hour.

I don't care how you break it down, it is $1,500 a year per $50,000. It's like the time share salesmen I recently talked to. He kept asking me, "How much can I afford a month? $50? $100?" The time share was $12,000. The total cost was what I cared about. $1,500 a year is a lot of money...at least to me it is, even if it is simply $125 a month or $31.25 a week (I don't make $50,000 so perhaps the tax wouldn't matter as much if I did)

Again, hopefully the employees see a decent jump in sales and it off sets the 3% tax, and/or it keeps the company from going under.

EDIT: Is my math wrong or wouldn't the tax be closer to $.75 an hour on a normal 40 hour work week for someone making $50,000 a year? (That seems way too high to me)

Edited by belcherboy

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3% of say, 50 grand a year is something like 1500 in extra taxes, according to my bad math skills.

I'd not be happy.

Not to mention the 2% payroll tax cut expired recently. I am familar with that area in Warren as I used to work there out of college and would drive by. Lots of places around to eat and run quick errands if you had to. That's gone by moving to Detroit. But "Hey, it's cool to be down here....."

(edit- I see Zimm said the Van Dyke area's dead now.... that could be. I worked out there in 1998/1999. That was one of the things I liked about it. Lots of places to eat out for lunch. But that was before kids when doing that wasn't an issue)

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I don't care how you break it down, it is $1,500 a year. It's like the time share salesmen I recently talked to. He kept asking me, "How much can I afford a month? $50? $100?" The time share was $12,000. The total cost was what I cared about. $1,500 a year is a lot of money...at least to me it is.

For a non-resident making $50K, make it $600/yr

https://www.detroitmi.gov/Departments/Finance/IncomeTax/CityofDetroitIncomeTaxRates/tabid/1655/Default.aspx

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I don't care how you break it down, losing $1,500 from your salary would suck. It shouldn't stop people from eating or paying the bills, but it would easily make life less comfortable for those families making around $50,000 a year. Hopefully this increased expense due to moving is offset by increased revenue to the company and thusly (hopefully), an increase in everyone's pay.

I have lost almost exactly that amount on my checks this year. On salary...my checks are exactly the same every week....with the additional 2% taken out for FICA and FED...I personally plan on asking for a raise this year to offset this and then some. I would imagine that the companies overall operating cost (ONLY in terms of salary) will most likely go up as a result because I would imagine they would do the same thing I am doing.....asking for a raise to off set it. The cost benefit of moving downtown may save the company enough that they can afford to give small raises to offset the new tax.

Nobody likes paying more taxes, but there are a lot of people out there screaming about how the government is spending that money...at least in this case it would be local money that gets corrupted!

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Everyone please at least argue over the right numbers.:wink:

For 2013: 2.4% resident, 1.2% non-resident payroll, 2% corporate.

Longer term the state has mandated it fall to 2%/1% over the next few years.

I should have known better than to round the tax to 3% around here!

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I have lost almost exactly that amount on my checks this year. On salary...my checks are exactly the same every week....with the additional 2% taken out for FICA and FED...I personally plan on asking for a raise this year to offset this and then some. I would imagine that the companies overall operating cost (ONLY in terms of salary) will most likely go up as a result because I would imagine they would do the same thing I am doing.....asking for a raise to off set it. The cost benefit of moving downtown may save the company enough that they can afford to give small raises to offset the new tax.Nobody likes paying more taxes, but there are a lot of people out there screaming about how the government is spending that money...at least in this case it would be local money that gets corrupted!

And that would help negate their reason for moving in the first place.....

But I have seen cases in the past where companies that moved to Detroit did adjust compensation to accommodate the new tax.

I personally would hate working downtown. Then again, I work 2.3 miles from home and go home nearly every day for lunch so I guess I'm spoiled.

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