Detroit: America's Next Tech Boomtown
jfruh writes: "Over the past few years, the growth rate in Detroit tech jobs has been twice the natural average. The reason is the industry that still makes Detroit a company town: U.S. automotive companies are getting into high tech in a big way, and need qualified people to help them do it. Another bonus: the rent is a lot cheaper than it is in San Francisco. '[A]ccording to Automation Alley's 2013 Technology Industry Report, the metro Detroit area grew to a total of 242,520 technology industry jobs in 2011, representing a 15% increase from the 2010 level of 210,984 technology industry jobs. No other benchmarked region had greater technology industry growth than metro Detroit in this period. Further, according to the report, this growth helped propel metro Detroit to a ranking of fourth among the 14 benchmarked regions, passing San Jose."
That's a fact.
Nobody dealin' with that winter, for rent.
"Flyin' in just a sweet place,
Never been known to fail..."
Detroit's population is success-proof, they will find a way to drive away wealth as they always have, perhaps another riot will return them to the poverty they've earned so well.
You can have my SIG when you pry it from my cold, dead hands.
If true, this is great for Detroit. That said, what the heck is the "natural average" of job growth?
Finding God in a Dog
I heard that they gave Omni Consumer Products^W^W^W Google to clean up the town. They're doing something with drones.
the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff
in that area of the country? it does not seem so, to me. seems more like deep red states, more or less. not exactly what tech people flock to, to be honest.
weather is a huge turn-off. culture of progress and new ideas is not there.
crime and corruption IS there. well, the ceo's will like it, at least; but the rest of us, not so much..
--
"It is now safe to switch off your computer."
Wanted: People who are smart enough to work in tech, but dumb enough to live in an unsafe place.
Coder's Stone: The programming language quick ref for iPad
Over the past few years, the growth rate in Detroit tech jobs has been twice the natural average.
It's not just growth. Detroit has had lots of tech jobs for decades. It's been in the top 5 markets for many types of tech jobs for a long time. There is an ENORMOUS amount of technology that goes into automobile manufacturing. Robotics, CAD, industrial automation, materials science, welding, forming, coatings, chemicals, software and more. There are very few places in the USA with a higher density of engineering talent and opportunity.
Oh and before someone makes yet another ill informed remark about Detroit City, don't confuse Metro Detroit with Detroit City. Oakland County, immediately to the north of Detroit is one of the 10 wealthiest counties in the entire USA and has a AAA credit rating. Michigan is actually a really nice place to live, especially if you love the outdoors. Ann Arbor which is close by is a fantastic college town too if that suits your sensibilities.
List of the most dangerous cities in the US for 2013. Detroit is 3rd, right after Flint, Michigan.
I bet they're counting Ann Arbor and maybe even Windsor Ontario as "Detroit".
Detroit proper? NFW.
... you have to live in Detroit...
I went back for a visit last winter. It's sad. There are tiny pockets of hold outs and then the rest is just a free for all. Scrappers have gutted ever bit of available metal from any empty building not staffed with armed guards. This is best done with a sledge hammer and torch. The buildings are not recoverable after that. The roads are worse than a dirt road. At least gravity levels those out a bit. Then there's the crime.
.5 miles away: "Don't they realize when things get bad enough they're gonna be food for the locals?" He just laughed and said no.
I found a hipster pocket in DelRay. Perhaps one of the most obliterated areas. The homes are early 20th cen and cute. They sell for about $10 - 100. If you can find a buyer. There was a 2 block section of white hipsters fixing up their little gems. Baby strollers, all the trimmings. And I commented to a friend who still lives about
Nothing has really changed there. Sadly it won't. The mentality is still the same. No matter how much money you throw at it. The city is corrupt from the ground up and has been for 100+ yrs. The new mayor may help. But he'll most likely give up like Archer did. Without a major paradigm shift in mentality it will always be Detroit.
shhh, we do not need anymore people in the area. I like to be in demand and getting the proper money for my skill set. Do not blow it for the people here making bank.
It doesn't necessarily mean someone is making a dumb decision. This can be a perfectly legitimate, sensible option, IMO.
I knew people who moved to Mexico in the past, with similar motivations. If you can earn enough money there, you can easily afford to build yourself a fortress of a house and hire people to go out and run errands for you, etc. It might not make sense for someone with a whole family to take care of. But a younger, single person who might tend to be more of an introvert in the first place might be happy to "go where the money is" and spend a portion of it to buy the security that's lacking in the environment otherwise.
Upsides: Detroit gets to pull itself up, maybe a single-digit percentages from the bottom.
Downsides: Tech people have to make a grim choice to take those jobs, consumers have to get more stuff in our cars that we don't really want.
I'm a Rust Belt kid, so seeing northern cities on something of a comeback trajectory is a good thing to me. The problem is image -- you have to find techies who are willing to put up with a very messed up local economy and deal with winter. I'm from Buffalo, and winters there are very long and cold. The obvious benefit is that the cost of living is much lower than California or similar. I couldn't believe last time I was in CA to visit a friend that they had just paid almost a million dollars for a 3-bedroom house with no property. I don't care how good the weather is, that's absolutely nuts, and I live in the NYC metro area, so I know about high real estate prices.
I think it's all cyclical. Right now where I am, everyone is moving to North Carolina (Why??) People cite a much lower cost of living. That's true -- you can sell your Long Island house and buy (literally) a mansion on several acres in NC. The only problem is that Charlotte, RTP, etc. are still cities and real estate that's close to jobs is going to be more. Your mansion is going to be 25 miles' drive from anywhere. Atlanta has a similar issue -- people deal with multi-hour commutes so they can live in a massive house inside a gated community in the middle of nowhere. Side note - a friend of mine who moved there for a job refers to Cary, NC as an acronym -- Containment Area for Relocated Yankees.
Personally, I love winter and would have no desire to move somewhere like Florida, Texas, or Arizona. Right now, those are the cheapest places business-wise, so jobs move there. But the northern states can play the game too. New York just gave some new businesses a 10 year tax holiday if they locate in certain parts of the state. All the state economic development agencies engage in this kind of poaching. The only problem is that the South is better at it because they don't fund schools and local governments to the same extent. If Michigan and Detroit are serious about this, and can afford it, then the businesses will move back. Executives don't care because they would either stay put or be happy just about anywhere. To them, it's not all that hard to pick up and move.
Low real estate prices, compact metro areas that mean short commute times, etc. are advantages that these states and cities can use. We'll see if it pans out.
I smell fuzzy math. It usually smells like bullshit.
Are we talking real, full time, long term jobs, or did they hit the jackpot at the H1-B lottery?
Yanno, I can't help but think of this scene from the Kentucky Fried Movie whenever somebody suggests that something is going to go to Detroit.
This sig no verb.
and cheap wages (lower rent means you can pay people less). People will go where the work is, whether they like it or not.
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A nice package but you have to look under the cover and ask
As a Tech worker do I
Want to deal with East Coast Winters?
Live in the Cultural Mecca of the Mid-West?
Live in Detroit?
Deal with the crime?
Raise kids and send them to school there?
Work at a huge Dinosaur of a corporation?
As someone who has spent time in the Mid-west rust belt, I just don't see many people with real talent being willing to sign up for that.
-Just saying
Detroit a tech hub? LOL, make sure you get a carry permit when you move there. It would have to be a fat paycheck indeed to get me within 30 miles of Detroilet.
And I've known people who have been mugged. I've seen signs posted warning office employees of men running about mugging people whilst brandishing firearms.
Protip: Statistically, you're nobody. Bonus protip: The vast majority of people in SF aren't mugged. The vast majority of people in Detroit aren't mugged.
Hell, the vast majority of people in Camden aren't murdered.
Doesn't mean your threat-free experience equates to the sort of 'safety' people like to imagine, though.
Denver-Boulder, noticeably absent, recently pegged as having the most scientists per capita than anywhere else in the nation. Hell, Twitter just acquired my downstairs neighbors.
I grew up in the midwest and prefer the west coast. When I want snow, I can go to the mountains to experience it.
I have a few relatives who expressed displeasure because I bought an imported car 16 years ago (don't blame me for wanting a well made car when America's big 3 where producing a lot of junk). I still drive that car today; they've had to replace their American made cars a couple times. They lived a couple of states away from Michigan, I'd guess that Michigan itself would be worse. As a techie, I want to be able to figure out what works instead of clinging to tradition.
I also wouldn't want my kids anywhere near Detroit schools.
I left Detroit for San Diego around 1985. I wrote software for various auto-related stuff (CNC, gauging, factory automation, SQC, Variation Analysis...) when I was there, and the experience was invaluable.
The irony is that the percentage of tech works now is likely many times what it was when I was there. The job loss has been in blue-collor factory jobs, support jobs for the closed factories, service and retail to support all those workers, etc. etc. etc.
Yea, my old high school (Cass Tech) got gutted by a scrapper fire. (They built a new school, and the old one was to be turned into Condos...)
... Need I say anything else?
Detoilet is a failure because of BLACKS, nothing else.
White create.
Blacks destroy.
Any questions?
they'll move on when the time comes. Most of 'em have degrees. They'll leave behind the slums. While they're there the locals won't mess with them, because if they do the police (who are heavily armed thanks to 30 years of hand-me-downs from the military) will bust some heads until they do. Remember the last round of riots in Los Angeles? Everyone laughed and called them dumb because they trashed their own neighborhoods. That wasn't by choice. There were cops in full riot gear with military grade tanks cordoning off the rich communities so they didn't spill over...
The poor have learned to keep their misery to themselves...
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Low numbers making small increases can be made to sound impressive if expressed as percentages. True fact.
why would they do that to you?
Totally unkool, bro.
Metro Atlanta with family in Birmingham and Berkeley, CA.
So, I have seen a bit of the differences of American attitude.
Here in Metro Atlanta, we have pockets of folks who would fit right in at Berkely - the stereotype of course - and in Berkely, there are folks who'd fit right in with my Bible thumping-Republicans can do no wrong-anal retentive only dogs can hear them fart Conservatives:FoxNews can be too Liberal for them - type of people.
Generally speaking, outside of the pockets of educated people, the masses here in the Bible Belt are ignorant. They are the ones who think there is a "controversy" when it comes to Evolution. They think the Bible is a historical document - it is fact - not allegorical stories by Iron Age Jews.
You drive down I-75 and below Macon you see billboards by ELECTED REPRESENTATIVES proclaiming their Christianity and "conservative" values.
Here in the Bible Belt, most folks make the Middle Eastern religious fanatics look tame.
The Bible Belt Jesus is a gun carrying, anti-poor, no-empathy or compassion white asshole. Fuck the POOR! They deserve it!
Might makes right and if you're poor, you are defective - the whole "eye of the camel" thing goes past their ignorant heads.
It's all Old Testament here bud - and those people fit the New Testament into that Biblical View.
tl;dr: The people in the Bible Belt are just as bad as the Muslim nuts they condemn. They don't stone anyone or blow shit up because they are 'God fear'in Mericans who follow the law! But don't take our gund away! We may need to kill someone - fuck the "Thou shall no kill" because it ain't applicable!"
P.S. I have NEVER met a Christian in the USofA - ever.
Funny, because Detroit isn't that far removed from St. Louis weather-wise, and STL is the tech hub of the midwest.
I've lived both places within the last 10 years plus I got my education at WashU. St Louis is decidedly NOT the "tech hub of the midwest". Plenty going on there and some pretty good talent and a nice place to live but there is WAY more tech going on near Detroit than in St Louis except for a few areas. If there is a "tech hub of the midwest" it is either Chicago or Detroit depending on how you want to measure it.
Dice ranked Missouri as the fastest growing state in regards to tech jobs last year.
Not hard to grow fast when you don't have all that many to begin with. Plus a lot of the tech jobs in Missouri are in Kansas City.
What makes ME laugh about such articles is that Detroit is in the midst of some *serious* financial issues.
Detroit CITY is in the midst of such issues. Detroit METRO is largely unaffected. Oakland County immediately to the north of Detroit City is one of the ten wealthiest counties in the US and has a AAA credit rating. Guess where 80% of the population of Metro Detroit lives? (hint - it isn't in Detroit City)
Who would want to live anyplace near such a situation?
Because most people who live NEAR Detroit City don't live IN Detroit City and haven't for a long time. Metro Detroit is actually a very nice place to live and Michigan is absolutely beautiful. I know because I've lived there.
It's like a third world country in decline, with the crime, blight and debt in abundance.
If you think that then you really know nothing about it and clearly haven't visited the area. Yes there are some parts of Detroit City that are pretty crappy. That doesn't describe much of the rest of Michigan.
Nope, articles like this are just the dying gasps of the marketing company hired to try and attract new business to a sinking ship.
Automation Alley is not a marketing company. They are a sort of tech transfer organization/incubator that helps Michigan businesses grow. It's actually a pretty neat operation and I've been to events they hold. The studies they cite are actually well researched and factual. There are a HUGE number of tech jobs in Michigan and Metro Detroit has more engineers per square mile than all but a handful of cities in the US. There is an enormous amount of technology that goes into manufacturing and about 50 of the largest manufacturing companies plus their supply chains are headquartered in Michigan, most fairly close to Detroit.
The accent.
It's a number ploy by a marketing firm...
It most assuredly is not a marketing ploy. There is a HUGE number of technology jobs in and around Detroit Metro and always has been because guess what? There is a LOT of technology that goes into manufacturing cars. Robotics, computers, automation, coatings, materials science, welding, forming, stamping, chemicals, etc. As the auto industry has bounced back from 2008-2009, job growth has rebounded too. It's actually not surprising at all that Detroit's job growth is rather high at the moment.
Trust me, you DON'T want to live anywhere near there..
Only morons who have never actually come to Michigan think that. Look, 80% of Detroit Metro is outside the City. Oakland Country which is immediately to the north of Detroit is one to the ten wealthiest counties in the US, has a AAA credit rating and is a genuinely nice place to live. Ann Arbor (20 miles west) is one if the nicest college towns you could ever want to visit and has some really cool business activity going on.
List of the most dangerous cities in the US for 2013. Detroit is 3rd, right after Flint, Michigan.
So what? 80% of the population of Detroit Metro lives outside the City. Most of Detroit Metro is actually quite safe, similar to any other large metropolitan region. Very few people live in the City and most of the near-term economic opportunity and jobs is not in the City either. I've lived near Detroit and very rarely had any reason to visit the City itself. If I dropped you off in nearby city like Birmingham you'll find it to be as nice a place as just about anywhere in San Francisco and VERY safe.
That's a strange way to spell "ghetto".
a lot of car makers can build cars in the USA profitably. even small cars. except GM and Ford
Given that Ford earned $7.2 Billion in net income in 2013 and GM made a $3.8 billion profit over the same period I think GM and Ford will be very surprised to hear that they cannot make cars in the US profitably since most of their profit comes from US operations.
part of the problem is the factories are old and there is no more room to expand.
You don't need to expand factories to make the efficient. Inefficient factories get shut down and those that remain are doing just fine. I have visited numerous Ford and GM assembly plants (as well as Toyota and Honda) and for the most part they are as efficient and profitable as those of their leading competitors.
Once you get past all the glitz, glamour and Robocop statue, you're still left with Detroit.
The problem is, Texas has been electing politicians that while they apparently are exactly what Texas thinks is good, look to the rest of the non-red country as not so hot.
You mean like how the rest of the country elected George Bush twice?
The infrastructure here is crumbled to dust, any real data pipelines are to the west at Ann Arbor which by the way is where any michigan real tech companies are at.
Detroit is dead, they need to bullzose the whole thing and start over.
Do not look at laser with remaining good eye.
A detroiter thinking winters are bad..... HAHAHAHAHA!
I live in michigan to the west, I would get 8-20X more snow than detroit ever did. This winter I had 6 feet in my front yard. 6 feet of snow, think about that.
Detroiters are as wimpy as Atlantaians when it comes to snow, come on over and visit the lake michigan side where we get real amounts of snow. 1 foot overnight doesnt even close schools.
Do not look at laser with remaining good eye.
I take it the executives of these companies will be living somewhere the weather is livable and the food is decent.
The weather in Michigan is tremendous unless you are a complete wuss about a little snow. If you actually like to go outside the weather is terrific, particularly if you like boating. Never more than 80 miles from one of the Great Lakes anywhere in Michigan. In the summer I never been anyplace with better weather. Detroit Metro has about 4 million residents who think you are a big old wuss.
Furthermore there are terrific food establishments and markets in the Detroit Metro area. Roast, Zingermans, Eastern Market and lots lots more. There are high quality grocery stores and farmers markets everywhere. The fresh produce is tremendous.
It may not be as bad outside the city, but in my experience, it was nearly so.
Bullshit. Where did you live? Oakland, McComb an Washtenaw counties are all very nice places to live.
... if they can live long enough without being murdered.
I'm sure that's true if you're counting traditional engineering fields, meaning not including software engineers. I'm not sure it would still be true if you included software
Not as much software as some other places but that is changing FAST. Cars are getting a lot of software these days and so is the equipment used to make them. Plus a lot of software companies have a presence in the area including Google and some other big names. University of Michigan produces a lot of pretty good software talent and places like Ann Arbor are great places to start tech ventures.
Software is just a small, though important, part of technology. Apple, Google, Microsoft, Amazon and Facebook hardly comprise the entirety of the technology universe.
please don't move here, i hear SanFran is nice.
I came to the datacenter drunk with a fake ID, don't you want to be just like me?
We need a Detroit ETF
Real Christians don't discriminate other Christians. These Bible Belt Christians discriminate against Asian-American Christians.
They are Pharisees at best, the exact group of people Jesus trying to condemn.
New Economic Perspectives
You are @#$%ing crazy if you think Detroit is safer than Oakland, in the aggregate, by any measure.
Real estate is dirt cheap compare to San Francisco. Heck, you can get a house for a few HUNDRED dollars!
New Economic Perspectives
Detroit? There are two kinds of people in Detroit. Corrupt politicians and union bosses on the take and stubborn backwards people who would rather starve than change. If you're not bringing back the glory days of the 1960's where a high school grad could make $40,000/yr with benefits then they won't listen to you.
Land is like $1.99 per 500 acres, but you get no mail, trash service, recycling, ambulance service or cops. You DO get door-to-door squatters, though...
I challange these claims. It looks like a bunch of spin doctoring to me.
1. Automotive industry there is bust. and without that, there isn't enough demand for technology, so the market can't be that big.
2. The city is bankrupt, and that is never a good environment to move or initialize a startup technology venture.
3. Austerity measures have already raided pensions to nearly 5%. That is a very toxic workplace.
...it's the content of their character. 50+ years on uninterrupted Democratic rule will do that to a place...
Mod parent up. Defense contractors. Lots of good work, but also a lot of waste.
New technologies have left Detroit behind.
OK, let's get started. I've had this dream for more than a decade now. and I've asked you all to share with me. In six months we begin construction... of Delta City. where Old Detroit now stands. I grew up in Old Detroit.... as a child I played in its streets.... those same streets have become a breeding ground for crime and social decay. Before we employ the 2 million workers that will breathe life into this city again we must pacify Old Detroit. Although shifts in the tax structure have created an economy ideal for corporate growth, community services, in this case law enforcement, have suffered. I think it's time we gave something back. Dick?
Fellow executives... it gives me great pleasure to introduce you to the future of law enforcement. ED 209. ....
Except ED 209 will be a General Atomics Predator.
I'm really surprised that technology companies still have this "old school" thinking when it comes to the location of their people. A good technology company should not have a geographic area if they are able to leverage remote workers effectively. Unfortunately the "butts in seats" mentality still exists despite the technology existing to make life better for everyone. The Linux Kernel team is a great example of effective remote teamwork.
NSaaaaaa NSaaaaaa
USA is going no where you have ZERO TRUST...
This is doomed to failure anyway, simply because car manufacturers are going for the wrong high tech. Self driving cars work, they work well on today's roads with today's technology and no current auto manufacturer wants anything to do with it. Because they'll replace traditional human driven automobiles wholesale, turning cars into something closer to a fungible commodity rather than a potential high profit margin status symbol they can be today.
But consumers aren't going to care. Self driving cars are safe, and 99% of the population is going to want the car to drive itself while they do whatever over any amount of other high tech gadgetry. What's the point of a high tech infotainment system and a thousand "driver alert" safety things when you can just stare at your phone in perfect safety while you're on your commute? The horse and buggy of human driven cars have numbered days, and like all the big carriage manufacturers of a hundred+ years ago today's auto manufacturers are too scared and too stolid to acknowledge as much, hoping instead that somehow giving their outdated products better amenities will cancel their obsolescence.
you paranoid conspiracy theorist!
Internet speeds in Ann Arbor don't look significantly different than the rest of Metro Detroit or any other major metro area.
See for yourself.
http://www.broadbandmap.gov/sp...
Milwaukee has a number of parallels to Detroit, but just enough differences that we are not, and will not be, the "next Detroit." Milwaukee is on the upswing. The city has a growing population once again, following its decline during the era of deindustrialization and urban-to-suburban flight. Milwaukee still has good bones, and as more people come here, they find it has a real vibrancy to it. We're truly blessed with a number of great local coffee roasters, including Anodyne, Stone Creek, Sven's, and Valentine, in addition to the ubiquitous Colectivo (formerly Alterra). Pabst, Schlitz and Miller made Milwaukee a beer capitol, and now we've got fantastic microbreweries, Lakefront Brewing, Milwaukee Brewing Company, St. Francis Brewery, and the crowdfunded Brenner Brewing Company. There's five colleges and two major universities within city limits, and a great publicly-owned international airport.
Milwaukee's Green Corridor along S. 6th Street is our sandbox for sustainable development. Among many attributes, it has the world's largest slab of water-permeable concrete, which was made part of the stormwater containment system that runs a beautiful stream and provides water for the on-site community gardens. A food hub is being developed just across the street from there, and we're showing true green development is replete with benefits.
The 20th century saw Milwaukee's first apex, and we're building toward a larger, more sustainable one right now. I'm thrilled to be part of it.
-- haaz.
Detroit industries went from being run by the competent to being run by the relatives of the competent. To top it off it became the playground of MBAs replacing technical management, and considered itself to have too good a reputation to every have to worry about the likes of Toyota. When a slightly tweaked version of a 1938 German car was vastly more technologically advanced than their product they didn't react, and their sheer size and inertia was the only thing that stopped Detroit being a ghost town in the 1960s.
Silicon Valley doesn't quite have that problem yet - apart from disasters in progress like HP of course.
I'm in tech. I own a home in Metro Detroit (because hardly anyone who says they're from Detroit actually lives within the city limits). I grew up here. I've seen innumerable flashes of hope followed by complete failure and two recessions. Let the hipsters move in and resurrect the slums - I want no more part of it. I'm moving to where governments and fiscal policies are more** sane, where unions don't run the town. I don't understand why people continue to defend such a backwards, bleak, cold and dreary place incapable of handling success and where the majority populace of the largest city in the area refuses to break free from a cycle of public assistance and plantation mentality. Call me racist, call me a bigot, I could care less - Live here, spend years here, and you'll see the region for what it is. The sad matter of fact is that Henry Ford's dystopia will never rise from the ashes of entitlement run absolutely amok. Detroit and the region will remain a minor player for generations to come. It'll probably be followed by jeers and shouts of 'good riddance,' but I'm out the door, heading out of state. Leaving that mess, the negative attitudes, the shitty weather and the awful political and financial climate behind me.
that's why it's such a rathole.
Starting with the Model Cities Program in the sixties, it's been the Social Scientists' paradise. Every liberal idea has been implemented there. Any number of youtube videos will show you how wonderful The D is.
And you want racism? Detroit has plenty of it, the black on white variety. You didn't hear about it, but a white motorist accidentally hit a black youth. When he got out of his vehicle to render assistance, he was beaten nearly to death by blacks. Yes it was a hate crime, yes he was attacked for his skin color, no it won't be prosecuted as such. What a great place to raise kids /s.
I'll take the south any day, it's much more tolerant. This Michigander has had it.
Well, what about all the IT jobs lost in the last 20 years in the Detroit area?
Troy/Auburn Hils etc used to be a 'hi tech corridor' when GM/EDS etc etc
were hiring all those Liberal Arts grads and teaching them to code in PL/1,IMS/DB2...
Would be nice if there actually WERE some jobs in Michigan. there aren't any right now...
still in detroit?
That's why the Detroit the article is talking about, is all of southeast Michigan except the liberal utopia of the city of Detroit.
Disclaimer: I escaped it in 1970.
You can buy a WHOLE HOUSE in Detroit for the cost of one month's rent in the Bay Area. And enjoy a city with a thriving arts and music scene, free-thinking spirit and authentic culture.
Yes, how do you manipulate the mouse and spacebar without opposable thumbs?