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The Rust Belt may be battered, but rumors of its demise were greatly exaggerated. The Rust Belt is composed of areas in the northeastern United States between the Great Lakes and the Midwest. Specifically, the belt includes parts of New York, Pennsylvania, West Virginia, Ohio, and Indiana. Once known as the industrial heart of America, it was deemed the “Rust Belt” when American manufacturing began to wane in the 1980s. Today, marked by a decline in jobs, population, and urban decay, the region was once also called the Manufacturing Belt, the Factory Belt, and the Steel Belt. Manufacturing is not dead in the U.S., and the Rust Belt may be on the verge of a great reawakening, as several manufacturers and industries are adding or expanding in the region. From tool & gauge manufacturing in York, PA, to auto manufacturing in the Upper Midwest, the economic engine of manufacturing is turning over. Tool & Gauge Products Despite a rough few years of the recent recession, hand tool manufacturing exhibited consistent growth between 2010 and 2015. In this industry, manufacturers produce hand tools, precision measuring tools, and agricultural and woodcutting tools. Employing more than 25,500 people at 960 businesses in the U.S., the industry earned more than $7 billion in revenue in 2015. As the wheels of the economy have started to gain speed, weekend warriors and home DIYers are back at the stores ready to tackle home improvement projects. Experts anticipate slower growth in the industry over the next few years due to increased competition from foreign goods. Automobiles Green vehicles and renewed consumer spending are likely to boost American auto manufacturing in the upcoming years. Though auto manufacturing took hard hits in the recession, new car sales have mostly recovered thanks to rising consumer confidence and continued historically low interest rates. The industry was also boosted by Americans returning to work. In 2015, the American auto manufacturers raked in $123 billion in revenue, thanks to sky-high annual growth of 8.4%. The industry employs more than 72,355 people in America, and long term, the industry’s growth is looking good. Non-Traditional Manufacturing Though more traditional forms of manufacturing are declining as the country de-industrializes, there are still major manufacturing opportunities in the U.S. Non-traditional, research-intensive manufacturing may be the key to future growth in the Rust Belt. The biotechnology industry, for example, grew by 4% between 2010 and 2015, and analysts predict that growing demand for things like gene therapy and other medical applications will fuel this industry’s growth into the next decade. This industry includes pharmaceutical companies, and companies that specialize in agricultural research. Bio tech firms employ more than 217,000 people in the United States working for 2,169 businesses. Other non-traditional manufacturing industries like the info technology industry, 3-D printing, and robotics may render new manufacturing opportunities in the Rust Belt. Steel and Iron This once valued industry may not be making a comeback, but the industry may have stabilized after years of decimation during the global economic crisis. Falling steel prices, despite increased demand, means the industry isn’t growing, but it is contracting at a slower rate. Between 2010 and 2015, the industry realized $9.6 billion in revenue, marking a 1.6% decline in growth. Despite market contraction during the recession, the 387 steel and iron manufacturers in the U.S. continue to employ more than 97,000 people. There’s still a long road ahead for the once great Rust Belt. However, thanks to an economy that’s picking up speed, and American ingenuity, industries like tool & gauge manufacturing in York, PA, and auto manufacturing in the Upper Midwest are making annual gains. The Rust Belt is far from rusty.
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