It's the ongoing revenge of the Rustbelt, as cities once built upon steel, coal and blue-collar muscle power are now returning to vigor with new businesses and an optimism missing for decades.

In Ohio, the health care industry, led by the expansion-minded Cleveland Clinic, is transforming Cleveland's economic landscape. A couple hours to the east, in Pennsylvania, Pittsburgh real estate is going through the roof, driven by a spate of entrepreneurial types too young to be held captive by the city's steelmaking past. And in the Wolverine state, Michigan, sales are up, companies are hiring and the mood is upbeat.

“Small- to mid-sized business owners are experiencing substantial growth and are poised to reinvest in their business and employees in 2016,” reported the November 2015 Michigan Future Business Index, published Dec. 22 in partnership with Accident Fund Insurance Company of America and the Michigan Business Network.

An interesting discovery: The Motor City was the hottest job market, despite its fall from grace as the auto-making capital of the world. The survey found that Metro Detroit is currently a hotbed for hiring.

Among key findings of the phone and online survey of nearly 900 company representatives included:

70% of respondents are satisfied with the economy;
50% said sales are up, compared to 35% in late 2011;
44% of the companies will hire more workers in 2016;
42% expect to increase wages in 2016;
44% of companies reported rising wages as compared to 15% in 2011;
32% of companies hired people in 2015, compared to 11% in 2011;
38% expect an improved bottom line over the next six months – a new high for the survey.

“Keeping and attracting good employees remains the greatest challenge to small business owners,” the report said. “Twenty-two percent cite labor market challenges as their biggest concern, up from 16% in the June survey.”

A third of respondents said they've got postings for jobs that aren't being filled because the right employee isn't out there.

“Clearly, there is tremendous optimism about the business climate in Michigan and the opportunities for success, Mike Britt, president of Accident Fund Insurance Company of America, said. “We should all feel good about the improvements we've seen in Michigan over the past few years. However, we can't lose sight of the challenges we face in attracting and retaining top employees.”

However, while recruiting and retention were cited as employers' No. 1 concern, No. 2 was managing growth — not a bad thing, given the Rustbelt's long decline following the collapse of the U.S. steel and auto industries.

“Four in ten plan to expand their product or service offerings over the coming year and over two-thirds believe Michigan is a great market to find and retain customers. It's a great time to own or work for a small business in Michigan,” the report said.

Instant Insights /

Rustbelt's Small Businesses Bullish on 2016

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