Chicago’s rise was aided by manufacturing but a new report says manufacturing in the region is lagging:
While the 14-county tri-state area was the fourth-largest exporter among the 100 top metro areas nationwide in 2012, it fell to the middle of the pack on gross domestic product growth, export growth and exports as a share of economic activity, according to “Revival in the Heartland: Manufacturing and Trade in Chicago,” a report to be released Wednesday by HSBC Bank and the Chicago Council on Global Affairs.
“Manufacturing in Chicago is an old heavyweight slugger, punching below its weight,” the study stated, noting that it remains the second-largest economic driver in the region after government and social services…
Study authors and individual manufacturers cite a range of historical factors that have contributed to the weak performance:
•A lack of civic and government attention to the sector because of a perception that it was dying.
•An absence of intraregional cooperation on economic issues.
•Freight rail gridlock.
•Lingering wariness about expanding business within the state, given its fiscal problems.
The article notes the ongoing loss of manufacturing jobs in recent decades, even on top of the decline of such jobs in the 1960s and 1970s. The initial drop significantly impacted social conditions, as noted by William Julius Wilson in his writings. Even as Chicago has avoided the decline narrative associated with numerous other Rust Belt cities (Detroit as a common example but also including places like Cleveland, Buffalo, Youngstown, and numerous other cities), a steady decrease in manufacturing continues to present challenges.