New Study Provides Blueprint for Postindustrial “Stagnating Cities”

Revival will come when the market changes—until then, city leaders should lay a foundation for future prosperity

NEW YORK, NY — While much of the U.S. economy has enjoyed strong growth over the past several years, many of the country’s postindustrial cities have been left behind. In a new Manhattan Institute report, senior fellow Aaron Renn analyzes a specific group of these “stagnating cities” and provides a blueprint for how they can prepare for the future. Rather than focus on ineffectual “economic development” projects, he argues, these cities should instead work to lay a foundation for renewal when the market changes.

The report defines “stagnating cities” as those with a population fewer than 1 million and a central city that has lost 20 percent or more of its population since peak. These are not the larger struggling cities of Cleveland or Detroit—instead, Renn focuses on the metros that rarely make headlines, including Danville, IL; Saginaw, MI; and Johnstown, PA.

These cities have in many ways been forgotten, and possess few assets to initiate a turnaround. A near-term revival is unlikely for these cities, according to Renn. Instead of focusing on economic development projects like Syracuse’s doomed $15 million film hub, city leaders should work to do the basics well and build a strong foundation for the future.

This foundation has three key pillars:

1. Fixing municipal finances;
2. Reforming and restructuring dysfunctional government institutions; and
3. Rebuilding government services.

Click here to read the full report