Netflix’s hit series Stranger Things has been lauded for its faithful presentation of small-town Midwestern America in the 1980s. In the third season, the suburban shopping mall takes center stage as a new retail and recreational phenomenon that changed how adults shopped and kids passed their time.

But there was another consequence of the rise of the mall: an empty Main Street, with closed-up shops, vacant sidewalks and few cars. In the fictional town of Hawkins, IN, from Stranger Things, the shiny new Starcourt Mall opens up and mom-and-pops like Melvald’s General Store experience huge drops in foot traffic and sales.

Minneapolis was recently named one of the five best cities in the Midwest for tech startups, based on access to resources and overall business climate.

Now, there’s a renewed opportunity for niche stores, breweries and restaurants on Main Street again, says lifelong Indiana resident Lisa Gapen, owner of AIA affiliate Generate Sales & Marketing in Crown Point, IN. Big corporations too are taking advantage of a lower cost of doing business in the area by opening locations there.

The region, known traditionally as the Rust Belt for its long history of manufacturing, was hit hard by the exodus of companies in the past several decades. But manufacturing, waste management, food production and automotive businesses are among the firms that have moved part of or all their operations over the Illinois state line to Indiana, accounting for thousands of new jobs, according to the Indiana Economic Development Corporation. “We’ve benefitted from the high cost of living and property taxes in Illinois,” Gapen says.

Cities continue to experience population growth at a rate higher than the national average of 5.5%. The population of Fargo, ND, grew 17.3% from 2010 to 2018, according to the Manhattan Institute, followed by Des Moines, IA, at 14.6% and Columbus, OH, at 10.5%.

But the Midwest has also been impacted by trade developments, including a tit-for-tat tariff war with China, the largest export country for U.S. agricultural products at 17% of the total market, according to the Minnesota Department of Agriculture. Soybeans, which have long been on the tariffs list, make up 52% of the agricultural exports to China, the vast majority of which are grown on Midwestern farms.

President Trump has also signed a replacement to the North American Free Trade Agreement (NAFTA). The new United States-Mexico-Canada Act (USMCA) mandates that automobiles be constructed with more USA-made materials and 40% of each vehicle must be made by workers earning at least $16 an hour, which may open up more stateside facilities that can afford to offer higher pay, compared to low-paying plants in Mexico.

Marty McDonald, president & CEO of McDonald Imaging Solutions (asi/522770) in West Des Moines, IA, is optimistic. Though not all companies will return, the Iowa native says agriculture and insurance are mainstays and tech startups are opening. Chicago, Minneapolis, Indianapolis, St. Louis and Ann Arbor are the top five Midwestern cities for startups, according to Midwest venture capital firm M25, based on access to resources and overall business climate.

New construction is also ramping up, McDonald adds. And thanks to its high scores for its job market, quality of life, net migration, value and overall desirability, Des Moines was recently named fifth on U.S. News & World Report’s annual Best Places to Live list.

“It’s family-friendly, the crime rate is low and there’s business opportunity,” says McDonald. “The local government is giving companies tax incentives to set up here and expand.”

Meanwhile, Detroit has long been the poster child of a booming manufacturing city hit hard by outsourcing. It was once a well-to-do metropolis of more than 1.8 million people at its peak in 1950, many of them having flocked there for union jobs and good pensions. But the Motor City has been through tough times in recent decades. Though it’s still home to GM, Ford and Chrysler, it’s currently transforming itself into a place that manufactures a new type of car.

“There’s more technology that goes into cars, so tech companies have the opportunity to move here,” says Mike Fossano, vice president of Premier Communications Group (asi/298496) in Royal Oak, MI. “They’ll innovate and create new jobs.” 

Sara Lavenduski is the senior editor for Advantages. Tweet: @SaraLav_ASI. Contact: slavenduski@asicentral.com