Great Lakes Region to See 43 Plant Startups and 4,700 New Jobs in Second-Quarter 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--There is no doubt that the U.S. Great Lakes region has been battered since the beginning of the recession in December 2007 by plant closings and consolidations, resulting in hundreds of thousands of lost jobs. The rapid decline of the automotive sector during this time has further decimated the region, especially states like Michigan, where reliance on the auto sector permeates every area. As the country begins its overall recovery, the Great Lakes region is beginning to see some positive signs within its borders as well. During the second quarter of this year, 43 plants currently under construction will begin operations, bringing more than 4,700 new jobs to the region.

Click image at right for a breakdown by state of new jobs and plants in the Great Lakes region in 2Q10.

While this is not a significant boost in jobs for a region that has suffered greatly, it is a step in the right direction and a positive sign of recovery to which leaders can point when assuring residents and companies that steps toward recovery are being made. For the region to fully recover, the U.S. automotive sector will have to make a significant recovery, which is highly unlikely in the near future. Even if automakers such as General Motors Corporation (Detroit, Michigan) can return to profitability this year, this will not automatically translate into the return of jobs to the region.

Automakers, much like companies in the heavy manufacturing sector, on which the Great Lakes region also relies, have spent a lot of time in the past 18 months closing or consolidating facilities in the region or have moved out completely, heading south to areas of the country with more favorable labor laws. These companies have learned how to do more with less, and are not likely to return to the free-spending ways of only a few years ago, ways that created thousands of additional jobs in the region.

For the coming quarter, the Industrial Manufacturing Industry will supply the largest amount of new jobs in the form of eight plants that will begin operations, creating 2,700 new jobs. The Metals & Minerals Industry will also contribute heavily with seven plants creating an additional 1,200 new jobs. Other industries will also add to the totals, but the bulk of the new jobs can be found in these two industries. The Pharmaceutical & Biotech Industry will add almost 800 new jobs at seven new plants to round out the top three jobs-creating industries for the quarter.

The state of Illinois will benefit the most from the coming quarter in regard to both the number of plants beginning operations and the total number of new jobs coming to its borders. Illinois will see 14 new plants open their doors, creating 2,500 new jobs during the quarter. The state of Ohio will see 10 plants begin operations, but will only add 500 new jobs. Indiana will have the second highest job gains with 930 jobs from eight new plants. Kentucky will have six plants begin operations and hire 550 new employees.

Although the plant and jobs numbers are low for the quarter, the fact that companies are willing to continue with construction plans rather than delay these projects is a good sign for the region. The number of new jobs should continue to increase throughout the summer in the Great Lakes as more plants begin operations. Hopefully, as the recession eases, we will see additional companies invest in the Great Lakes region with confidence, which will eventually add more jobs to the states. The unemployment rates in the region are almost critically high in many areas, and any new jobs created here are much more than welcome: they are a blessing.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.