Joel Kotkin, an expert on global, economic, political and social trends, says cities like Cleveland have growth opportunities that areas such as Silicon Valley don't have.
CLEVELAND, Ohio -- Joel Kotkin, an expert on global, economic, political and social trends, says cities such as Cleveland have growth potential that areas like the Silicon Valley don't have.
Kotkin argues that the term "Rust Belt," generally used to describe once thriving industrial areas in the Great Lakes states, are now too often characterized by economic decline, population loss and urban decay.
A different story needs to be told, he said.
Clik here to view.
Joel Kotkin, one of the nation's leading thinkers on urban development and the global economy, talks about the evolution and future of Cleveland and other Rust Belt cities Developing medical instruments are more important than developing something like Facebook, Kotkin said at a City Club luncheon Wednesday.
Places like Silicon Valley may dominate for certain tech jobs, but they're not the real drivers of future job growth, and skyrocketing housing prices make California no longer places of opportunity for people who lack financial resources. Housing prices in the Bay Area are growing 10 times faster than incomes.
"They are becoming, as journalist Simon Kuper puts it, 'the vast gated communities where the 1 percent reproduces itself,'" he said.
That's good news for cities like Cleveland. While core industries such as manufacturing may not ever return to its best years, Kotkin said embedded skills are crucial for other thriving industries including creating medical devices.
The big growth potential is embedded in existing industries and creating new companies. That includes finding ways to apply capabilities to "the Internet of Things," a term used to describe how it seems everything is connected to the Internet, from clothes and appliances to homes and cars.
"Fundamentally tech is not leaving Cleveland. It's been here all along. It's just being deployed differently," he said, noting that because of the Internet, more people can work in different places and choosing to live in more affordable cities like Cleveland.
"Manufacturing has to be part of growth for this part of the country," he said, noting that the field is increasingly technology-intensive and often pays better than some jobs that require college degrees. It's a field that also needs highly skilled researchers and engineers.
"Manufacturing is still important and part of the arsenal," he said.
States like Texas, Ohio and Louisiana, offer a combination of embedded skills necessary for new technologies and advanced manufacturing jobs, and that's attracting an influx of young college-educated individuals interested in low-cost, urban living.
They're also attracting aging millennials who are choosing to live in suburbs and areas with populations the size of about 1 million to 2 million people, as opposed to places like New York, Los Angeles and Chicago.
A recent analysis of 2010 Census data by the Brookings Institution found that the percentage of middle incomes in metropolitan regions such as those three cities has been in a decline for the last 30 years, in part because of high housing and business costs.
"Something positive is happening that no one would have talked about 10 years ago," Kotkin said, noting that watching where new plants are moving is a good sign for economic growth for states like Ohio.
Kotkin said Cleveland should look into finding more ways to attract immigrants, such as cities like Houston. Research shows that foreign born people often tend to work harder and longer and are willing to do jobs that others won't do. They also bring different skill sets, hence the reason about half of Silicon Valley is foreign born, he said.
"Economies that bring in different elements will generally do better," he said. "You've started the way to make a case to millennials, but you also want immigrants. If immigrants can find their way to Houston, they can find their way to Cleveland."
"Cleveland has to wage it's own campaign in its own time, building off its technology base," he said."What you want to promote is that Cleveland is a great place to live, find a job and buy a house."