Is America on the Grow Again? Top 5 Industrial Cities in the U.S.

The poet Carl Sandburg wrote eloquently about American industrial workers in his poem Chicago, the “city of the broad shoulders”. This image of a brawny economy is essentially how the world perceives the U.S.: we are doers, we are makers of things. However from a (possibly inflated) 30% of our workforce dedicated to this sector in the post-war 1950s to a low of 8.5% in 2017, industrial growth remains a key metric. And, despite the slow recovery from the economic downturn of 2008, the methodology currently used to take the nation’s pulse is by the growth in its manufacturing sectors. This is because every dollar of manufacturer goods generates an additional 40 cents’ output from other economic sectors. From the smelting of metal, to the honing of gages, to the soldering of motherboards, every industrial job provides a salary that supports a household which in turn supports the local economy. In this posting, we’ll examine where industrial growth is increasing, as well as where, and possibly why, it isn’t.

1. Orlando FLA/USA: Nope, exciting new attractions associated with the Disney enterprise are not the reason that Orlando tops our list for economic growth. Once a hotbed for aerospace and technology firms, this region has seen almost 24% industrial job growth since 2012. This surge can be traced to both multinationals like Mitsubishi and Siemens Energy, as well as Lockheed Martin and a wide number of small sub-contractors.
2. What is it with cities that start with the letter O? From Orlando we travel across the nation to Oakland, north of L.A. where factory workers have increased by 22% since 2012 in this smokin’ hot tech center.
3. Dear to Carl Sandburg, the heartland places third overall with the greater Grand Rapids region in Michigan posting a leap of almost 21% in industrial employment due to almost 2,500 manufacturing firms within its footprint. Here the leading employer is metals and plastics, followed by biopharmaceuticals and medical devices, production technology, food processing and lastly, automotive. As in Florida, the big employers such as General Motors, Cargill, Kellogg’s, Bissell, and Amway are reinforced by their much smaller subcontractors leading to an economic boost across firms of every size. Tied for number three is Reno Nevada, which on the strength of one industry, Tesla’s battery manufacturing plant, has seen an increase of 30% employment growth since the plant opened last year.
4. It’s back down to Florida for the 4th and 5th spots on this survey. Miami has posted an almost 23% growth in industrial employment over the past six years.
5. At number 5. West Palm Beach/Boca Raton/Delray Beach is generally associated with an upscale, recreational lifestyle, luxurious homes, boutiques, and dining destinations. Yet this region has posted an almost 28% increase in industrial jobs since 2012 due to a marked increase in executive positions within the aerospace and technology sectors.

Skilled workforces, low cost to work and to live, business-friendly regions that offer lower or no income taxes (which translates to higher wages), reasonable housing prices, and pro-development, low-restriction building policies are among the many reasons these urban areas have seen exponential industrial growth over the past 6 years. However, there are numerous urban areas, once known for their manufacturing companies, that have fallen down the charts. Some have morphed into sectors for other types of businesses such as educational, research, or recreational. Others have been supplanted by areas that offer milder climates, better education systems, and a lower cost of living overall. These tarnished regions include:

1. Los Angeles/Glendale/Long Beach: The garment industry, aerospace, and technology jobs in what was once the nation’s largest industrial center, have left at a rate of 20% over the last decade. It is believed that given an economic retrofit and a major reboot, this once thriving region will again diversify its economy and attract new industries to its cities.
2. Sadly, in recent years, the “city of the broad shoulders”, Sandburg’s Chicago, has not been pulling its weight economically. It has posted less than 1% employment gains since 2012. This means that jobs have been leaving in droves, most likely to the Grand Rapids area where the climate for business has been made as enticing as possible.
3. Another region that has been hemorrhaging jobs is the greater Houston area which includes the upscale semi-suburban towns of Woodlands and Sugar Land. Exponential grown in the early 2000s ended abruptly at the end of that decade, thereby encouraging economic expats. The nationwide energy industry decline caused regions that depended on this sector for its economic welfare post job losses of 12% since 2012. The aerospace industry was also hard hit contributing to this decline.
4. While New Orleans can fall back on its tourism, the state of Oklahoma is not a vacation destination. For decades refining energy from petrochemicals and natural gas had made this industry the state’s top employer. Currently, Oklahoma, and Oklahoma City in particular, is turning to wind power, geothermal, and solar development hoping for a job resurgence via the state’s new diverse energy plan.
5. While New Orleans can fall back on its tourism, the state of Oklahoma is not a vacation destination. For decades refining energy from petrochemicals and natural gas had made this industry the state’s top employer. Currently, Oklahoma, and Oklahoma City in particular, is turning to wind power, geothermal, and solar development hoping for a job resurgence via the state’s new diverse energy plan.

What is called America’s ‘great job resurgence’ is taking place primarily in smaller cities. Thanks to a number of factors it has become increasing possible for these more rural areas to compete for skilled workers with large urban areas. There are many reasons for this. As mentioned above, many municipalities tempt industries and workers to their regions with higher wages, lower taxes, low crime, and generally, an improved quality of life. These are factors that matter to families, and industries seeking the best and brightest workforces are taking heed. Other regions, like the Midwestern “rust belt”, have seen their economies suffer for decades, as older industries lacked the skilled workers or money for technology upgrades to keep pace with more prosperous regions. Here, the government has stepped in, providing incentives for businesses to employ and train local workers, thereby improving their economy and reducing both crime and poverty rates.

Our nation’s industries, long the backbone of our economy, are rallying after what for most, has been a very trying decade. Slow but steady growth is being seen and acceptable employment, taxation, and housing solutions are being implemented. Things are looking good, America. Here’s to continued our economic growth!