Coming Back from Economic Despair: Case Studies of Small- and Medium-Size American Cities

Abstract

The authors examined a geographically and economically diverse group of 34 small- and medium-size communities that experienced long periods of economic prosperity built around a major industry or company and that then suffered economic declines when those industries substantially reduced their workforces and in some instances closed. The authors’ interviews with local officials and community leaders found that the response to this weakened economic position was typically delayed: Often, a decade or more was required before a plan of action to attract new business and diversify its employment base was developed. Environmental and labor stigmas also had to be overcome. These places provide a valuable insight into what may lie ahead for other small- and medium-size communities that could be affected by the loss of a dominant employer and others that may be faced with economic stagnation. The lack of leadership and a shared vision within a community is likely to prove economically disastrous.

The Shrinking Mining City: Urban Dynamics and Contested Territory

“…As mentioned above, the fortunes of the economies of single‐industry communities have always been tied to the ‘boom and bust’ cycles of the market for minerals upon which they rely (Johansson et al ., 1992; Neil and Tykkläinen, 1992; Bridge, 2004b; Moody, 2007; Leadbeater, 2008). However, particularly since the 1970s, global restructuring of the economy has led to mining cities becoming even more vulnerable to global mineral market fluctuations and decisions of transnational mining companies (Neil and Tykkläinen, 1992; Maude and Hugo, 1992; Randall and Ironside, 1996; Tsutsumi, 2000; Mayer and Greenberg, 2001; Dale, 2002; Bridge, 2004b; Bartos, 2007; Graulau, 2008). In addition, mining cities are now affected by another outside force: technological change.…”

“…Finally, mining communities around the world share a legacy of environmental degradation (Mayer and Greenberg, 2001; Kuyek and Coumans, 2003; Bridge, 2004a; Leadbeater, 2007; 2008; Martinez‐Fernandez and Wu 2007c; Moody, 2007) and negative health impacts (Bridge, 2004a; Leadbeater, 2008). Kuyek and Coumans (2003: 18) explain that ‘[m]ining frequently has a large environmental footprint that extends well beyond the pit itself: air pollution, enormous consumption of energy, and road and rail transportation byproducts are some of the environmental costs associated with mining’.…”

“…In some unfortunate cases, the clean‐up never happens (Martinez‐Fernandez and Wu, 2007c). These lasting environmental problems negatively affect the attractiveness of these cities to new industries that are seeking appropriate sites (Mayer and Greenberg, 2001) and to knowledge workers and their families. Where mining remains a productive industry, the balance between mining and protecting the environment and health of local residents unfortunately has yet to been found.…”

“Small Cities Blues:” Looking for Growth Factors in Small and Medium-Sized Cities

“…Variables used in these tests are all measured for 2000, or as changes in their levels from 1990 to 2000. The 3 agglomeration-particularly that of industrial clustering-still hold center stage (Krugman 1998;O hUallachain 1999;Mayer and Greenberg 2001;Camagni 2002;Porter 2000Porter , 2003. This is in contrast to earlier times, when decentralization caused by decreasing transportation and communication costs was considered the norm (Zelinsky 1962).…”

“…Very few studies of small metro areas exist and most of them are case studies. (For instance, through a series of interviews with local officials, Mayer and Greenberg (2001) examined 34 small cities that had suffered a major plant closing to see how they fared in the years after the event.) Still, regardless of methodology, almost all studies show that on a number of measurable scales, such as unemployment and poverty rates or population decreases, smaller cities are losing their economic viability in the new global economy (U.S. Department of Housing and Urban Development 1999; Erhlick 2000; Raymond and Pascarella 1987).…”