Deindustrialization of Youngstown, Ohio
Encyclopedia
Deindustrialization
Deindustrialization is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially heavy industry or manufacturing industry. It is an opposite of industrialization.- Multiple interpretations :There are multiple...
of the city of Youngstown, Ohio
Youngstown, Ohio
Youngstown is a city in the U.S. state of Ohio and the county seat of Mahoning County; it also extends into Trumbull County. The municipality is situated on the Mahoning River, approximately southeast of Cleveland and northwest of Pittsburgh, Pennsylvania...
and surrounding areas, starting on September 19, 1977 (on what became known to locals as Black Monday) and continuing into the mid 1980s. While the collapse of the steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
industry in the region coincided with the general deindustrialization of Rust Belt
Rust Belt
The Rust Belt is a term that gained currency in the 1980s as the informal description of an area straddling the Midwestern and Northeastern United States, in which local economies traditionally garnered an increased manufacturing sector to add jobs and corporate profits...
cities such as Youngstown as well as the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
as a whole, Youngstown's economic struggles related to deindustrialization have been well documented.
Deindustrialization has had a lasting impact in the Mahoning Valley
Mahoning River
The Mahoning River is a river located in eastern Ohio and western Pennsylvania. It joins the Shenango River to form the Beaver River and is part of the Ohio River watershed.- Physical properties :...
region of Youngstown, as the city's population was cut in half as a result, while non-industrial businesses were forced to close or relocate due to the ripple effect of the loss of the steel industry. Although some other Rust Belt cities such as Pittsburgh have since successfully been able to diversify their economic base, as of December 2010, more than a generation after deindustrialization, Youngstown has not recovered.
History of steel
Founded by John YoungJohn Young (pioneer)
John Young was an American surveyor and pioneer. He is best known as the founder of Youngstown, Ohio, a village that eventually became one of the nation's largest steel producers. Young, a native of Whitestown, New York, first surveyed the area in 1796 and settled there soon after...
in 1797 in the Connecticut Western Reserve
Connecticut Western Reserve
The Connecticut Western Reserve was land claimed by Connecticut from 1662 to 1800 in the Northwest Territory in what is now northeastern Ohio.-History:...
section of the Northwest Territory
Northwest Territory
The Territory Northwest of the River Ohio, more commonly known as the Northwest Territory, was an organized incorporated territory of the United States that existed from July 13, 1787, until March 1, 1803, when the southeastern portion of the territory was admitted to the Union as the state of Ohio...
, Youngstown spent the first half of the 19th century as a small village, dependent on mostly agricultural needs, until the beginning of the Second Industrial Revolution
Second Industrial Revolution
The Second Industrial Revolution, also known as the Technological Revolution, was a phase of the larger Industrial Revolution corresponding to the latter half of the 19th century until World War I...
. The discovery of iron ore along the Mahoning River
Mahoning River
The Mahoning River is a river located in eastern Ohio and western Pennsylvania. It joins the Shenango River to form the Beaver River and is part of the Ohio River watershed.- Physical properties :...
, however, would make the city a viable and logical place to manufacture steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
. The city sits roughly in between Cleveland and Pittsburgh--steel manufacturers in their own right—and halfway between New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
. Youngstown Sheet and Tube
Youngstown Sheet and Tube
The Youngstown Iron Sheet and Tube Company, based in Youngstown, Ohio, was one of the largest steel manufacturers in the world. Officially, the company was created on November 23, 1900, when Articles of Incorporation of the Youngstown Iron Sheet and Tube Company were filed with the Ohio Secretary...
and Republic Steel
Republic Steel
Republic Steel was once the third largest steel producer in the United States.The Republic Iron and Steel Company was founded in Youngstown, Ohio in 1899....
were among the region's largest locally owned steel companies, while U.S. Steel
U.S. Steel
The United States Steel Corporation , more commonly known as U.S. Steel, is an integrated steel producer with major production operations in the United States, Canada, and Central Europe. The company is the world's tenth largest steel producer ranked by sales...
also had major operations in the region.
The steel boom led to an influx of immigrants to the area looking for work, as well as construction of skyscrapers in the area. (Though small by today's standards.) The city's population peaked at 170,002 in 1930, just at the onset of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
. World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
also brought a great demand for steel.
Decline
After World War II, demand for steel dropped off dramatically, and industrial base of Youngstown began to see a decline. Though population levels remained flat for a few more decades, population had not grown since the Great Depression. General MotorsGeneral Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
opened Lordstown Assembly
Lordstown Assembly
The Lordstown Complex is a General Motors automobile factory in Lordstown, Ohio comprising three facilities: Vehicle Assembly, Metal Center, and Paint Shop. The plant opened in 1966. Lordstown currently builds the global Chevrolet Cruze compact car....
in 1966 to help offset some losses, but would only prove to be a bandaid.
In 1969, Youngstown Sheet and Tube merged with the New Orleans-based Lykes Corporation, and in 1979 the combined Lykes-Youngstown was bought by the conglomerate LTV
Ling-Temco-Vought
Ling-Temco-Vought was a large U.S. conglomerate which existed from 1969 to 2000. At its peak, its component parts were involved in the aerospace industry, electronics, steel manufacturing, sporting goods, the airline industry, meat packing, car rentals and pharmaceuticals, among other...
. This brought decisions to the local economy out of the hands of the Youngstown area for the first time, although Republic Steel had moved to nearby Cleveland years earlier.
LTV had discovered that the numerous mills in the area had not been upgraded in literally decades, and would not meet pollution regulations set forth by the United States government without an expensive upgrade. In addition, many steel manufacturers were outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
steel to developing nations, where the costs would be cheaper and with fewer pollution regulations.
Black Monday
Due to the continuing struggles of the local steel industry, Youngstown Sheet and Tube announced on September 19, 1977 that it would shut down most of its Youngstown area operations by the end of the week. Although federal laws now require employers to give 60 days notice to its employees if they plan on doing mass layoffs, the laws were not in effect at the time, and Youngstown Sheet and Tube instantly put 5,000 workers out of work. The day is still known locally as "Black Monday".Youngstown Sheet and Tube's announcement would have a ripple effect in the area. Within two years, U.S. Steel pulled out of the Youngstown area and started scaling back its operations in Pittsburgh before eventually merging with Marathon Oil
Marathon Oil
Marathon Oil Corporation is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Angola and Canada. Principal development activities are in the United States, the United Kingdom, Norway,...
. (The two companies have since split.) Republic Steel held on into the 1980s but eventually filed for bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
. The resulting layoffs led to an immediate diaspora
Diaspora
A diaspora is "the movement, migration, or scattering of people away from an established or ancestral homeland" or "people dispersed by whatever cause to more than one location", or "people settled far from their ancestral homelands".The word has come to refer to historical mass-dispersions of...
from the region due to economic plight.
The move would have an effect on non-industrial businesses as well. Fast food chain Arby's
Arby's
Arby's is a fast food restaurant chain in the United States and Canada. Roark Capital Group owns 81.5% of the company, with Wendy's Company owning the other 18.5%. It is primarily known for selling roast beef sandwiches and curly fries. The Arby's menu also includes chicken sandwiches, appetizers,...
, which at the time was beginning to make a national push, moved its corporate headquarters out of the Youngstown area. Idora Park
Idora Park, Youngstown
Idora Park was a northeastern Ohio amusement park popularly known as "Youngstown's Million Dollar Playground."Built by the Youngstown Park and Falls Street Railway Company, the park's expansion coincided with the growth of the South Side of Youngstown, Ohio, in the Fosterville neighborhood...
, an amusement park
Amusement park
thumb|Cinderella Castle in [[Magic Kingdom]], [[Disney World]]Amusement and theme parks are terms for a group of entertainment attractions and rides and other events in a location for the enjoyment of large numbers of people...
in the area, suffered several fires before closing its doors in 1984. The Strouss
Strouss
Strouss was a department store serving the U.S. states of Ohio and Pennsylvania. Originally known as Strouss-Hirshberg Co., it was long the leading department store in the greater Youngstown, Ohio and the Mahoning/Shenango Valleys...
department store would be consolidated into Kaufmann's
Kaufmann's
Kaufmann's was a department store that originated in Pittsburgh, Pennsylvania. It was owned in the early 20th century by Edgar J. Kaufmann, patron of 'Fallingwater' and the Kaufmann's Desert House. In the post-war years the store became a regional chain in the eastern United States, and was last...
by its parent company, May Department Stores
May Department Stores
The May Department Stores Company was a national department store chain in the United States, founded in 1877 by David May. The company ceased to exist in 2005 when it was merged with Federated Department Stores, Inc . Prior to the merger it was headquartered in Downtown St. Louis, Missouri...
, before its own consolidation into Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
.
Aftermath
The city made attempts to attract another steel manufacturer, and even re-open Youngstown Sheet and Tube as a community-owned steel mill, but all these attempts failed. There have also been several instances of General MotorsGeneral Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
threatening to close Lordstown Assembly
Lordstown Assembly
The Lordstown Complex is a General Motors automobile factory in Lordstown, Ohio comprising three facilities: Vehicle Assembly, Metal Center, and Paint Shop. The plant opened in 1966. Lordstown currently builds the global Chevrolet Cruze compact car....
, especially after its 2009 bankruptcy
General Motors Chapter 11 reorganization
The General Motors Chapter 11 sale of the assets of automobile manufacturer General Motors and some of its subsidiaries was implemented through section 363 of Chapter 11, Title 11, United States Code in the United States Bankruptcy Court for the Southern District of New York...
. However, GM Lordstown remains open and is the area's largest industrial employer. Currently, Youngstown State University
Youngstown State University
Youngstown State University, founded in 1908, is an urban research university located in Youngstown, Ohio, United States. As of fall 2010, there were 15,194 students and a student-faculty ratio of 19:1. It is recognized as being one of the premier schools in the country, comparable to Ivy League...
is the area's largest overall employer, a far cry from the city's industrial past. Even though the area was embarrassed by the collapse of the Phar-Mor
Phar-Mor
Phar-Mor was a United States chain of discount drug stores, based in Youngstown, Ohio, and founded by Michael "Mickey" Monus and David S. Shapira in 1982. Some of its stores used the names Pharmhouse and Rx Place...
chain, Entrepreneur named Youngstown one of the top 10 cities to start a business in 2009.
Crime became a major problem for years, with Youngstown being a major haven for crime. Although this has since been cleaned up somewhat, as recent as 2006 the city was ranked as the 9th most dangerous city in the United States.
Current city leaders have admitted that Youngstown isn't going to regain its previous population highs and has since launched the Youngstown 2010 plan. The plan includes tearing down houses and turning it into greenspace, as well as attracting more diverse businesses. This has resulted in the city gaining international recognition, and a similar plan is being considered for the city of Detroit as a result of Youngstown's success.