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

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

“Small- to mid-sized business owners are experiencingsubstantial growth and are poised to reinvest in their business andemployees in 2016,” reported the November 2015 Michigan FutureBusiness Index, published Dec. 22 in partnership with Accident FundInsurance Company of America and the Michigan Business Network.

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

Among key findings of the phone and online survey of nearly 900company 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% in2011;

• 32% of companies hired people in 2015, compared to 11% in2011;

• 38% expect an improved bottom line over the next six months – anew high for the survey.

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

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

“Clearly, there is tremendous optimism about the businessclimate in Michigan and the opportunities for success, MikeBritt, president of Accident Fund Insurance Company of America,said. “We should all feel good about the improvements we've seen inMichigan over the past few years. However, we can't losesight of the challenges we face in attracting and retaining topemployees.”

However, while recruiting and retention were cited as employers'No. 1 concern, No. 2 was managing growth — not a bad thing, giventhe 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 offeringsover the coming year and over two-thirds believe Michigan is agreat market to find and retain customers. It's a great time to ownor work for a small business in Michigan,” the report said.