Thursday, March 15, 2018

Is It Time To Retire The Term "Rust Belt?"



By T. R. Shaw Jr.

            My hometown of Battle Creek is getting some much appreciated attention lately.  The community has been featured in major business journals, national and international newspapers, and most recently a series of stories in Crains Michigan Business, and it’s not about cereal! 
           
However, in nearly every report, journalists couldn’t resist using the term “Rust Belt” when framing our region.  A term many of us scoff at from our past.

The recent accolades center on our community’s entrepreneurial efforts, and the growth of the Fort Custer Industrial Park, which in thirty years has attracted 70 firms from around the globe.   The Park is adjacent to Michigan’s third busiest airport with a 10,000 foot runway and lots of room to grow.

High tech companies supporting the automobile industry have occupied “The Fort” since 1974, employing more than 21,500 people.  Our biggest resident and employer is Denso Manufacturing, a Japanese owned company making heaters, air conditioners, and radiators for most of the auto industry and employing more than 2,100 associates (they don’t call them employees.)  Denso recently installed an impressive robotic line which didn’t replace any laborers. 

Battle Creek also landed lithium component manufacturer Toda USA which is making parts for the next generation of hybrid electric vehicles.  Toda recently inked a deal with BASF and will expand in the near future.  Oh, yes, Kellogg and Post are still here, but the community appears to have moved well beyond the “Cereal City” moniker.

Our economic development entity, Battle Creek Unlimited, which manages Fort Custer Industrial Park, formed in 1974 and took advantage of the former military base when it was officially closed by then Secretary of Defense Robert McNamara.  BCU recently cleared hundreds of acres, making them “infrastructure-ready” parcels, going well beyond “shovel ready,” and offering it to developers and corporations.  The interest in this land is overwhelming and will fill quickly; that’s very good for our region and state!  No Rust Belt mentality here!

Rust Belt is a term coined in the late 70’s and early 80’s during the worst part of the industrial decline.  Rust Belt refers to an economic region of the United States primarily in the formerly dominant industrial states of Illinois, Indiana, Michigan, Ohio, and Pennsylvania.   It came to symbolize a devastating economic change, primarily with the downsizing of the steel industry in towns like, Pittsburgh, Allentown and Youngstown.  The ripple of that economic decline has been felt throughout all the Midwest for thirty or more years, especially in Michigan where the automobile industry is dominant.

We have many “belts” in our nation, there is a snow belt, sun belt, corn belt, fruit belt and even a few Bible belts scattered throughout the nation.  Even our capital is situated within a “beltway.”  So the term Rust Belt was geographically fitting, for the decline of the steel industry and everything related to it during that era.  I question whether that term is still valid today with all the shifts and expansion in manufacturing and technology, which have replaced much of our hard industrial might?

In 1984 Scholars, Murray L. Weidenbaum and Michael J. Athey at Washington University in St. Louis, Center for the Study of American Business, addressed that topic in a point paper, The Revival of the Rust Belt.

In this study, they questioned if the term Rust Belt was then an anachronistic term with the coming changes in the Midwest.  They opined,

“The facts available to answer these questions are undramatic,
not supportive of any extreme position, and thus uncompetitive in
the marketplace for public policy viewpoints. The truth of the matter
is that some of this nation's heavy industry is no longer competitive
and is in the process of shrinking in size and importance;
steel and automobile companies have reported the most dramatic
cutbacks. Yet, on balance, the answer to each of the questions is a
clear "no."
If there is a "Rust Belt," it is far more a question of perception
than reality.”

            They went on to discuss how industry has been replaced by technology and the traditional labor jobs have given way to better ways and systems of doing things.  Basically, they denied that we truly have a “Rust Belt” under the current direction the region was moving. 

            If industrial giants of the past such as Andrew Carnegie and Harvey Firestone
were to visit their old companies, they would be pleasantly
surprised by the array of high technology now in use: industrial
robots, sophisticated process control, laser inspection, flexible
manufacturing systems (FMS), automated material handling,
and CAD/CAM (computer-aided design along with computer-aided
manufacturing).”

            These words were expressed in 1984 and still ring true today.  So my question is, why do we continue to accept and use the term Rust Belt, when so many great things are happening, especially here in Michigan?   Under Governor Jennifer Granholm, we created “Automation Alley,” in metro Detroit.   Under Governor Rick Snyder, we’ve come a long way in “reinventing” our state and how we do business.  Detroit is seeing unprecedented investment and growth around technology.  It’s the comeback city of the Midwest.  The auto industry stands on the brink of huge new advances with hybrid and electric cars.  For the first time in many years, companies are coming back to Michigan, rather than leaving to do business.

            True, we still have a long way to go economically, but we are far from the malaise of the so called Rust Belt era.   While many journalists and scholars still employ the term Rust Belt, I’d like to see that phrase used in historical perspective. 

            Yes, we may have been the Rust Belt, but that term really no longer fits the direction we are moving.  Too many good things are happening to be labeled with a term like that from the past.


            T. R. Shaw, Jr. is CEO of Shaw Communication in Battle Creek.  He is a freelance writer and aspiring author.

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