Precedent Information

De-Industrialization of Cities:
Most communities that thrived during the Industrial Revolution in the late 19th century- first half of the 20th century are now challenged to find viable economic strategies for the 21st century Pittsburgh- the former steel capital of the world Detroit- the former motor city Cleveland- once an industrial giant
-challenges of these cities- slow job growth, declining home values, a diminishing tax base, concentrated poverty.
-world economy going through a major transition that is benefiting some cities and leaving other behind.
-causes- decline in manufacturing as a share of national employment, movement of people and jobs to low labor-cost areas, residential shifts to other
regions, and social and racial segregation.
-Positive elements of these areas- land, infrastructure, business opportunities, underutilized labor, and many of the nation’s major medical, educational, and research institutions.
-”a large number of older industrial cities are still struggling to make a successful transition from an economy based on routine manufacturing to one based on
more knowledge-oriented activities...the image of these cities has been one of empty down towns, deteriorating neighborhoods, and struggling families... still
grappling to overcome the painful legacy of severe industrial decline and population loss, these cities simply haven’t seen the widespread economic
revitalization now being enjoyed by so many other urban areas around the nation.” Retooling for Growth- pg. 33
-”if older industrial cities are to fully capitalize on the positive trends now at hand, government leaders need to design and implement a new urban agenda, one
aimed not at managing these cities’ economic decline, but at stimulating their economic revival.” Retooling for Growth- pg. 34
-“The shift from a manufacturing economy to a knowledge-based one has left many older industrial cities still grappling to find their economic niche.” (pg. 35)
-Physical redistribution of manufacturing coupled with advances in automation that sparked increases in productivity and a reduction in companies overall employment needs.
-Cities’ failure to replace the large numbers of well-paying industrial jobs they’ve lost with high-paying jobs in other rapid-growth sectors.
“Extreme economic and residential decentralization has left the poor and minorities isolated in the urban core, ‘spatially’ cut off from education and employment opportunities.” (pg. 37)
“A series of demographic trends are having a profound influence on how and where people choose to live and could significantly benefit older industrial cities.”
“Although economic changes have undoubtedly contributed to the decline of cities reliant on ‘old economy’ industries, moving forward, they also have the potential to give them back their competitive edge.”
Build on economic strengths:
-invest in downtown revitalization
-focus on cities competitive niches
-enhance the connectivity between regions
Transform the physical landscape
-invest in cataclytic development projects
-create marketable sites
-create neighborhoods of choice
What to do to bolster talent
-workforce development strategies
-invest in early childhood education
-new resources for public education
Characteristics of economically distressed cities:
-lost 8% of jobs from 1990-2000 while employment of non-distressed cities increased 18%
-experienced payroll growth of only 50% while payroll grew 91% in non-distressed cities
-saw the number of establishments grow just 1.4% while the number grew 18% in non-distressed communities
-had an average per capita income in 2000 that was only 78% of the non-distressed cities ($16,019 compared with $20,424)
-had a median household income that was 76% of the average of the non-distressed cities ($29,138 compared with $38,510)
-had an unemployment rate of 10% compared with 6% in the non-distressed cities.
-had a labor-force participation rate of 59% compared with 65% in the non-distressed cities.
-had a poverty rate of 23%, compared with 15% in non-distressed cities.

A recent report by Jobs for the Future attempted to define nationally relevant job clusters for low-skilled workers using a model based on Bureau of Labor Statistics Data
Site selection: Baltimore, Detriot, Los Angeles, Las Vegas, Orlando, New Orleans
East: Baltimore and Detroit- two old, industrial cities Baltimore: historically a port city located at the head of the Chesepeake Bay- shrinkage in the manufacturing sector, dilapitated housing stock, problem-plagued schools, loss of popualtion to the suburbs
-immense resources to build on- professional sports teams, historical heritage, reinvestment in the downtown waterfront, well-funded hospitals
and universities. Detroit: was for many decades the center of the automobile manufacturing indusry in the US. As the manufacturing sector declined and many of
the automobile manufacturing plants closed, Detriot experienced a tremendous decline in its traditional job center.
New Orleans- aftermath of Katrina, displaced from homes and jobs. Helping to define viable employment clusters as a way to help settle the lives of low income individuals who were displaced.
Orlando- tourism-based economy- low income jobs are in the service industry
Los Angeles- problem of immense population sprawl- the city is very spread out, making it difficult for the low-skilled to obtain transportation to and from the better jobs.
Las Vegas- large population growth- transformation from a tourist mecca into a city with many permanent residents.
The product of the analysis process was a group of 15-20 site specific occupations that are considered viable growth occupations for low-skilled workers in each of the six economically troubled metropolitan areas.
pg. 270- “The blame has much less to do with transitioning from a manufacturing based to a knowledge-based economy than with the political failure to organize assets and to dynamically adjust the mix of manufacturing activities, products, and production recipes in anticipation or and in reaction to changes in those activities, products, and recipes in competitor regions around the globe.