The Rust Belt region, once a hub of economic growth due to its abundance of natural resources and transportation infrastructure, saw a decline in the 1970s due to foreign competition and higher wages. Many cities struggled to recover, but some found new industries. The region’s future is predicted to be in the service sector.
Once upon a time, the region between the Midwestern and Mid-Atlantic states, roughly from Wisconsin to New Jersey, enjoyed booming economic growth due to an abundance of coal, iron ore, and other important resources natural. These states also had the ability to transport finished goods by railroad or waterway to their own port cities such as Chicago, Detroit, Pittsburgh and Buffalo. By the 1970s, however, many of the region’s factories had closed, and the abundance of buildings locked up and protected by rusting gates gave the region a new name, the Rust Belt.
The Rust Belt region, especially the Midwestern states of Michigan, Indiana, Ohio, and Pennsylvania, specialized in the production of steel and steel-derived products such as automobiles and industrial equipment. The abundant supplies of coal mined from West Virginia and Pennsylvania could easily be transported to steel mills in Cleveland and Pittsburgh, and finished steel could be exported internationally from the Mid-Atlantic ports of Boston and New York City. With a steady supply of labor also came an economic boom for the cities that supported the workers. This name would never have applied to places like Pittsburgh, Cleveland or Detroit in the early 20th century.
By the late 1950s, however, there was already some economic writing on the wall for the region. Foreign steel was becoming cheaper to import and higher in overall quality. Negotiations between unionized workers and management resulted in higher wages and other benefits, but domestic steel buyers were no longer willing to absorb the higher cost of American steel produced in Midwestern factories. In the 1970s, a general downturn in the American economy combined with foreign competition caused many steel mills and other heavy manufacturing industries to close, thus creating the area severely depressed.
Many cities located in the Rust Belt have had a difficult time recovering from the loss of important industries and the flight of workers to other regions of the country. Recruiting new industries became a challenge for these states as companies sought cheaper labor and lower manufacturing costs in the non-union Sun-Belt states located in the Deep South. Some cities, such as Detroit, Cleveland, and Pittsburgh, were hit especially hard, as their economies were heavily dependent on manufacturing.
Eventually, many cities located in the heart of the region found new industries to replace the closed steel mills and manufacturing plants, but many of these new industries, such as medical research and plastics, employ only a fraction of the number of workers as plants previous ones once did. Some new Rust Belt industries also require specialized training, although many former factory workers have enrolled in training programs that improve their chances of being hired as skilled workers.
The region still faces many challenges in its continued economic recovery, but the future looks more promising for cities that have managed to find new industries. Many economists don’t predict a return to the manufacturing economy that originally fueled the Rust Belt’s glory days, but they do predict that the region will eventually find a niche in the service sector that will improve its overall economy and attract workers to the area.
Protect your devices with Threat Protection by NordVPN
