Will The Real Youngstown Please Stand Up!!!

Last week, the Mahoning Valley was shocked to learn that out of the top 100 metropolitan areas in the United States, it has the highest rate of poverty in the country. The Brookings Institute, who compiles data such as this, stated that Youngstown has the nation’s “highest concentration” of poverty. Concentrated Poverty is defined as a population in which 40% live with an income at or below the poverty level, approximately $22,000.00/family of four. 49.7% of the City of Youngstown’s population lives below the poverty level. By comparison, Cleveland has 42% and Columbus is around 27%.

Well…what do you with this? The study says this is still a residual result from the loss of the steel mills 35 years ago. I suppose that's part of it. But statistics don’t always tell the story. In addition to being listed as the city with the most poverty, over the past 1 ½ years Youngstown has been listed as the best city in the country in which to start a business, and hold onto your hats, one of the top 5 cities in the country in which to find a job. What????? We’re nothing if not schizophrenic!!!!

Actually, all of these labels are correct. On the down side, there IS a concentration of poor directly resulting from the loss of the steel mills. These folks never left the city, caught in the Great Society/government welfare trap. They have no life chances, no hope, and are entwined in a web of poverty, drug use, and violence. At this point, I’m not sure what type of program can help these folks. We did this to them. Just go to the Jobs and Family Services and look at the blank expressions on these folks’ faces. It is tragic, and more of the same is NOT a solution.

This is a long standing problem from the past, and those of us who live here are not surprised. But the statistics are factually misleading. Youngstown is not now, and has not been for a long time, considered to be in the top 100 metropolitan areas. It has a population of barely 75,000 and shrinking rapidly. Many are seniors who, one by one, are claiming their reward in heaven, concentrating the poverty within the city limits even more. Mahoning County's population has shrunk from being close to 400,000 to around 235,000. It has taken 35 years to get to this point.

But there’s good news tonight. All of the above is looking in the rear view mirror. The fact is that Youngstown is on the cusp of a dynamic and growing future. It is already leading Ohio out of the economic doldrums and is flashing on everybody’s radar. There are a number of reasons that make the Mahoning Valley the place you want to be over the next 20 years.

1) Youngstown has always had a strong small and mid-sized manufacturing base even after the mills closed. That is what kept the area from total collapse. And these operations grew lean and tough. The Mahoning Valley has one the highest export rates as a percentage of its GDP in Ohio. We are the Ohio leader in international trade and are major beneficiaries (more money coming in than going out) from NAFTA, something the unions don’t want to admit.

2) Although it still maintains a reputation as a union stronghold, a lot of it is bravado and habit. The truth is that the local unions have learned that everybody has to thrive in order for an area to grow. The proof is in General Motors Lordstown where the unions have actively worked with management to allow the growth of the area's auto industry. With new car lines and three shifts, it shows that this area is not just a strong union area, but an area where business and unions know how to create an atmosphere for job growth and industry. it is a dynamite combination.

3) Youngstown is ground zero for America’s gas and oil shale boom. V and M Star is building a $600 million pipe mill on the Mahoning River. Who’d have thought? That project is so big, it is overshadowing all of the other smaller companies associated with shale that are popping up all over the valley, both start ups and existing companies moving here from all over the world. This is a big deal.

4) Along with the shale, the local banks which were barely surviving just a year ago, will be flush with cash as the gas lease money begins to make its way into our economy. It is a lot of money, and locals still don't understand how much money is involved.  I keep harping that local officials should meet with the local banks to see what can be done to keep them local and prevent a raid on the area's deposits by the big nationals, which will take the deposits for growth in other areas. We need a collaborative effort to keep the money here.

5) Youngstown hasn’t gotten the name Dehli on the Mahoning for nothing. It is a major call center hub…and growing every year. At least 6,000 jobs are based in this industry. They are not the highest paying jobs in the world, but it provides good income in an area where the cost of living is low.

The Youngstown area is one of contrasts. I suspect that when the next census is taken, you will see a startling growth in the area’s population as things turn around and the senior population residual from the steel glory days continues to die off. Youngstown has weathered this current recession well compared to areas like Toledo and Dayton. We are on our way. We are survivors. Perhaps as we work hard on growing our Valley, we will be able to devise ways to address the legacy of the past, and develop worthwhile and effective programs to deal with poverty and get folks out of the cycle.  We need to get our name off of that poverty list. 

Meanwhile, as the saying goes, a rising tide raises all boats…and the tide is rising here in the Mahoning Valley.