nce known derisively as the Rust Belt, the Great Lakes region today is an economically diverse group of states and provinces with a decided preference for high-tech firms. From Duluth, Minn., in the west to Buffalo in the east, cities along the lakes are cultivating ground for startups and existing companies. And, many of the more scenic sections along the source of one-fifth of the world's fresh surface water seek to build on established tourist destinations. But the area's locus as a multinational center of trade continues to drive both industry and infrastructure projects.
        A year after 9/11, security remains a large issue these days. To be sure, the lakes have the attention of Homeland Security czar Tom Ridge, who hails from Erie, Pa. The U.S. and Canada have been working on a "Smart Border" accord for months, which would boost security at crossings. On the state-province level, Michigan and Ontario inked a memorandum of understanding in June, which includes promotion of border security in addition to trade, tourism and transportation.
        Along those lines, the Michigan Department of Transportation has begun a feasibility study for a third border crossing between Detroit and Windsor. The study will determine whether a bridge or tunnel is needed to accommodate growth.

Automotive expansion continues in Michigan and other Great Lakes States. An example is the GM plant in Lansing where the new Cadillac CTS sedan is assembled.

        While economic development is broadening and heavy manufacturing is no longer the only game in town, that should not be misconstrued as a loss for big automakers. In Michigan, witness the construction of two new GM plants in Lansing and the revamping of a Ford plant in Dearborn.
        Automotive supplier Collins & Aikman announced in June an expansion of its operations in Port Huron, which will create 417 jobs. Michigan Economic Development Corp. (MEDC) provided a Single Business Tax Credit worth more than $2.2 million over a 12-year period for the company to expand in Port Huron, rather than Ontario.
        "The expansion of our Port Huron facility is testament to the continued growth of our company," said Thomas E. Evans, Collins & Aikman chairman & CEO. Evans cites assistance of state and local economic development agencies as an important element in C&A's expansion decision.
        "While it's not growing at the same pace, there is still substantial manufacturing in Michigan," says Kathy Blake, senior vice president, business development, Michigan Economic Development Corp. "The economy is more diversified."
        Blake says Great Lakes states are competing for the same industries. This includes the life sciences and other R&D initiatives.
        John Boyd, principal of The Boyd Company, a location-consulting firm in Princeton, N.J., says his clients are increasingly focusing on north-south corridors, which bring the Great Lakes states into play.
        "Many companies have already reconfigured and downsized their manufacturing operations," Boyd says. "Now they are focusing on distribution centers. These are attractive targets for communities in that they offer high-paying career positions. Many are sophisticated info technology centers and as a result their labor force is knowledge-based. Companies are trending toward fewer, but larger, warehouses."
        Regions near Canada, particularly those with good Interstate access, are prime areas for distribution centers, Boyd says, pointing out that NAFTA has changed the traditional east-west flow of goods to north-south. The Midwest is also appealing to corporate headquarters moves, a la Boeing's relocation from Seattle to Chicago, Boyd says.
        "The Boeing move will be a precursor for other high-profile headquarters moves," Boyd says. "From the Midwest, corporate executives can pretty much travel throughout the 48 contiguous states in a one-day trip. Both coasts are accessible in a matter of hours."

Effort Promotes Lake Superior Startups

Minnesota claims the No. 9 position in a recent economic competitiveness survey by Beacon Hill Institute (BHI), an economic policy institute at Suffolk University in Boston. The survey gave Minnesota high marks for its finance sector, infrastructure and human resources programs.
        The Port of Duluth-Superior, gateway to the world for much of the Midwest's grain, ore and coal, generated an economic impact of $210 million in 2001 and was responsible for nearly 2000 jobs, according to the Duluth Seaway Port Authority. Duluth-Superior is the Great Lakes' largest cargo port.
        But despite the major asset of the port, the region encompassing northeastern Minnesota and northwestern Wisconsin, while scenic, has not been a magnet for major relocations in recent years. Taking a crack from a different angle, some local entrepreneurs have formed an organization to create technology-based, high-paying companies over the next decade. The Ten Rivers project has a goal of creating one new company per year over the next 10 years, with each company to eventually employ 100 people.
        "In addition to the traditional economic growth model of attracting new businesses to the area, the goal of Ten Rivers is to be proactive and actually start and grow them," says Jerry Johnson, CEO of Ten Rivers.
        The first Ten Rivers company launched in late 2001 in Bayfield, Wis. Able Learning develops and markets Web-based knowledge-sharing software systems and content. The software provides tools that allow comp anies and educational institutions to capture knowledge and then share it with employees, vendors and customers in remote locations.
        "It's a different model for economic development," says Vince Beacom, president and CEO of Able Learning. "We want to create a technology-based cluster with local ownership and good-paying jobs."