Rust Belt

DEFINITION of 'Rust Belt'

A slang term for a geographic region in the United States stretching from New York through the Midwest that was once involved in steel production and manufacturing. The Rust Belt became an industrial hub due to its proximity to the Great Lakes, canals and rivers, which allowed companies to gain access to raw materials and ship out finished products. This region is called the Rust Belt because the decline in industrial work has left many factories abandoned and uncared for, rusting due to their exposure to the elements. It has also been referred to as the manufacturing belt as well as the factory belt.

BREAKING DOWN 'Rust Belt'

Some of America's more prominent industries, such as steel production and automobile manufacturing, were located in the Rust Belt area. They have declined over the years due to the increased cost of domestic labor and the capital intensive nature of manufacturing. Blue collar jobs have moved overseas more and more, forcing local governments to rethink the type of manufacturing and businesses that can profitably operate in the area. The Rust Belt generally begins in central New York and runs west through Pennsylvania, Ohio, Michigan and northern Illinois and Indiana.

RELATED TERMS
  1. Rust Bowl

    A geographic region that was formerly a manufacturing or industrial ...
  2. Belt And Suspenders

    A term used to mean conservatism and safety in lending practices. ...
  3. Six Sigma certification

    Six Sigma Certification is a process of verification of an individual's ...
  4. Steel Industry ETF

    A sector exchange-traded fund that invests only in companies ...
  5. Akio Mimura

    Served as chairman and president of Nippon Steel Corp. Mimura ...
  6. Value Chain

    A high-level model of how businesses receive raw materials as ...
Related Articles
  1. Investing Basics

    A Guide To The Six Sigma Green Belt

    Curious about the Six Sigma Green Belt? Here's what you need to know.
  2. Investing

    How China Impacts the Global Steel Industry

    The Chinese economy is having a significant impact on the performance and profitability of steel and mining stocks.
  3. Investing

    More Waiters and Bartenders Than Manufacturing Workers Spells Trouble

    Learn how jobs in bartending and waiting tables are displacing manufacturing jobs, and how this is troubling to the overall U.S. economy.
  4. Investing News

    Global Steel Industry Faces “Severe Winter”

    The global steel industry is in deep crisis due to overcapacity, falling prices and rising competition that has threatened the survival of many companies.
  5. Investing News

    2 Reasons to Expect a Soft FQ4 From Steel Dynamics

    While the company is doing a solid job controlling what it can, the overall steel industry continues to soften.
  6. Economics

    How Does a Company Use Raw Materials?

    Raw materials are the basic components of a finished product.
  7. Stock Analysis

    The Market May Have Already Given Steel Dynamics Its Due

    Steel Dynamics has rebounded sharply but remains a quality name.
  8. Stock Analysis

    Steel Cycle Looks Good

    Buying cyclical stocks at the right time can be a great investment strategy, but it requires more than just trying to time a cycle to benefit.
  9. Trading Strategies

    Commodities Outlook For The Remainder Of 2012: Base Metals

    Steel is iron alloyed with other compounds like carbon. It is the most widely produced metal in the world. This industry is dominated by China. At one time the U.S. was the top producer, but ...
  10. Fundamental Analysis

    Is a U.S. Industrial Recession on the Horizon in 2016?

    Find out why the industrial economy may be teetering on an industrial recession and what could prevent it from going over the cliff.
RELATED FAQS
  1. What are some examples of prime cost items?

    Learn about prime cost, including the definition of raw materials and direct labor, and how the types of expenses included ... Read Answer >>
  2. Which commodities are the main input materials for the automotive sector?

    Explore the materials used by automakers to create modern cars and trucks. Find out more about the materials market as it ... Read Answer >>
  3. Why did the U.S. government take control of the steel industry in 1952?

    In early 1950, Senator McCarthy began seeing communists in every shadow, prompting him to accuse the Truman administration ... Read Answer >>
  4. What was the first company with a $1 billion market cap?

    United States Steel Corportation (NYSE:X) was the world's first company to surpass the market capitalization mark of $1 billion ... Read Answer >>
  5. What is 'capital' in relation to the factors of production?

    Find out what economists mean by physical capital, how it contributes to the productivity of labor and why it is a crucial ... Read Answer >>
  6. Is there a difference in risk between the different regions of the U.S. banks?

    Find out why there are different amounts of risk for different regional banks in the US. It depends on regional exposure ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center