Published September 30, 2007 in the Hibbing Daily Tribune

The new Iron Range century
By Aaron J. Brown

The modern Iron Range “started” in the late 1800s, but our region is really from the 20th Century. Our biggest years of growth occurred during that century and you’ve probably noticed that many of our local towns are celebrating centennials. We’re seven years into a new century, however, and it’s time to take stock of where we are. I’m talking about our economy, but only because in the north woods of Minnesota the economy is as necessary for survival as fire, food and shelter. 

For almost two decades, the rallying cry on the Iron Range has been “jobs, jobs, jobs.” This slogan represents both the articulation of our biggest needs (jobs) and our most used strategy in getting them (repeating the word three times, like in “Wizard of Oz”). The problem with job creation is that it’s very complicated. 

Strangely, something about Iron Range economic development reminds me of my brief time on the Cherry High School FFA farm management team. I figured running a farm couldn’t be that bad. Buy low, sell high, right? In practice, however, you’ve got to know your soil, your region’s water and weather, your seeds and then – when that’s done – you have to run a business as big as most of the manufacturing companies in an Iron Range industrial park. Importantly, you can’t keep doing things the exact same way and expect consistent results. You must not only adapt to conditions, but anticipate years down the line.

We still rely on iron mining as the cornerstone of our economy here. Since the last new taconite plant was built on the Iron Range in the 1970s we’ve seen a gradual decline in population and the availability of good jobs. Two major taconite plants have shut down completely, with the rest experiencing temporary shutdowns or slowdowns during bad cycles in the steel market.

In response, the Iron Range is modernizing its century-old traditional industries to compete for the new century; just as taconite lifted us out of the natural ore age. A push for biofuels and new wood products has relieved our up-and-down logging industry. Recently, officials announced that an iron nugget plant on the East Range and a taconite mine and steel plant on the West Range could begin construction within a year. We shouldn’t overlook the fact that these projects will be built on the exact sites of our region’s two major failed taconite plants, LTV in the east and Butler in the west. In effect, the “new’ jobs created aren’t new at all. They are modernized versions of old jobs we lost. We should welcome these advancements but again our fortunes lie with steel industry, not our own ingenuity.

The new Iron Range century must begin with small business development and growth. Look around at the larger companies that have shown the most loyalty and given back the most to their communities. In many these companies started in our region and grew alongside it. Tax incentives and multi-million dollar grants and loans have their place, but on their own these strategies will never foster the regional depth and the healthy public/private relationship we need. Homegrown success will better survive economic hardship. Companies that rely heavily on the Range’s unique public funding sources are less likely to succeed when the money dries up.

I see this sentiment in a report by the new nonprofit think tank “Minnesota 2020,” detailed in a Sept. 12 Business North story by Paul Lundgren. Entitled “Chasing Smokestacks, Stranding Small Businesses: Rural Minnesota’s Crisis,” the report says that state government should shift its resources to create an environment where small businesses can start and thrive.

The fundamentals of growing corn and modernizing the Iron Range remain about the same. Create an environment conducive to growth and plant many small seeds. We need to shore up our roads and schools on the Iron Range, both of which are declining but remain central to the success of any economic projects. The economy of the future relies on ultra-fast, affordable Internet and we aren’t even close. The debate in the Hibbing area over a sanitary sewer district highlights another important infrastructure issue. IRR and state dollars should focus on infrastructure and local school district solvency first. After that, businesses will grow because of the good environment to do business, not because we paid them. Every Iron Ranger will directly benefit from the public spending, instead of just the businesses that receive aid.

Innovation saved this area before and must do so again. In many ways we’re on the right track but are failing to build for the long haul. Remember, we’re working in a new Iron Range century now. New conditions require new strategies.

Aaron J. Brown is a columnist for the Hibbing Daily Tribune.

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