Before the start of World War II, Chicago’s vast industrial base served the nation well. In 1947, as the nation’s manufacturing capital, Chicago led the way in the production of iron, steel, communications equipment, candy, and other products. By 1950, 36% of Chicago’s employed residents worked in manufacturing, writes chicago1.one.
The Great Industrial Decline
After the end of World War II, the future of the city’s industrial economy seemed secure to many. From 1946 to 1951, 204 major industrial projects worth $131 million were under construction in Chicago. Another 143 projects were underway in the suburbs. Overall, the Chicago area led other metropolitan regions in the country in terms of production volume.
Between 1947 and 1951, local corporations built over 800 industrial buildings. Of these, 443 were factories totaling 13.4 million square feet. By the end of that era, 8,000 acres of land had been allocated for industrial needs, not counting railway property.
However, by the late 1930s, much of the city’s industrial base was in decline. The food, garment, furniture, and lighting industries were slowly but noticeably reducing their production volumes. On the eve of World War II, these sectors accounted for over 25% of all industrial workers in the city. By the 1970s, the garment industry employed only about 7,000 people. Many clothing manufacturers initially moved South, where labor costs were lower. The American market for ready-made footwear and clothing was eventually taken over by Asian manufacturers. The enterprises that remained in the city tried desperately to introduce new production methods to cut labor costs.
Following the Great Depression and World War II, the furniture industry also collapsed. Many companies relocated South, particularly to Virginia and North Carolina. The reason was cheaper labor and the absence of unions, plus an abundance of raw materials. By 1997, none of the largest furniture manufacturers were based in Illinois.
Outdated Buildings and Lack of Space
In the 1950s, the city faced numerous problems related to the development of its industrial base. Production was mostly housed in old buildings, and demand exceeded the amount of available land. Many enterprises were squeezed into multi-story buildings, surrounded by partially empty outbuildings or small plots of land. Chicago had about 6 million square feet of vacant space, mostly in old buildings located in the central district. A somewhat larger industrial belt stretched from Belmont Avenue to Garfield Boulevard, where 80% of the city’s workers were employed.
Most of the vacant real estate had poor location, small size, or mixed ownership. Overcrowded streets and a lack of housing for working-class families hindered the full development of the industrial sector. Moreover, many businesses were located in residential areas; the situation only changed in 1923 when the zoning ordinance was passed.
The city’s complex railway system also divided many districts into isolated zones, and railway crossings hampered the growth of post-war automobile traffic. It’s no surprise that many companies moved to the suburbs. Part of the problem lay in the almost universal preference for single-story buildings. The high cost of urban land made it impossible to build industrial complexes similar to the campus-style facilities found in the suburbs.
Within Chicago itself, about 4,000 acres of land were allocated for industrial sites, but they varied in size, condition, and distribution. About 1,000 acres were near Lake Calumet, but development was prohibited because there was no waste dumping site. Railroads owned 16,000 acres but forced industries located on their land to use rail transport. Most businesses refused to do this as trucks became increasingly popular. The city also suffered from uneven land availability. The North Side had many small vacant plots.
Another problem was related to urban renewal plans, especially highway construction. In the early 1950s, planners estimated that the construction of the Eisenhower Expressway would displace 59 West Side manufacturing firms. The planned Kennedy Expressway was projected to displace another 225 manufacturing firms. Consequently, most industrial companies began moving outside the city limits to the suburbs and even out of the region.
Steel Production and Meat Processing
In Chicago, the steel and iron ore industries were located in the East Side, Hegewisch, and South Chicago districts. The first plant was established there in 1875. Five years later, the North Chicago Rolling Mill Company opened another factory at the mouth of the Calumet River. Thus, active steel production began. By 1954, the Chicago Steel District, including Western Indiana, had become the largest steel producer in the world, boasting 161 furnaces. New factories, led by giants like Chicago Steel District and US Steel, opened annually and operated successfully. Workers in this sector were considered the most highly paid at the time.
As for the meat industry, it flourished even during World War II. The Union Stock Yard, which opened on Christmas Day in 1865, soon became the country’s largest livestock market. By the 1870s, Chicago’s slaughterhouses began moving closer to the stockyards in the Packingtown area. In 1924, the Union Stock Yard sold the largest number of livestock—18.6 million head of hogs, sheep, and cattle. That same year, a record 122,749 hogs arrived for sale at the enormous two-story hog house that stretched four blocks from Halsted Street to Racine Avenue. In 1927, Chicago had the highest concentration of refrigerated warehouses in the country, as the city successfully dominated the industry.
Despite Chicago’s leadership over other meat processing centers, the industry began to experience significant changes. From 1923 to 1929, revenue from cattle sales dropped by 18%. This was linked to an increase in the number of smaller meat processing plants. In the fall of 1952, Swift & Company ceased hog slaughtering in Chicago. The reason was that the hog population in the local market was too small, and the old buildings were expensive to maintain. This foreshadowed the industry’s further decline in Chicago. Three years later, the Wilson and Company plant was also closed, and 3,000 people lost their jobs. This all led to the first serious post-industrial crisis.
Many citizens did not consider the decline of the meat industry a problem at all. The manufacturing base still seemed large, stable, and growing. Chicago also dominated the confectionery industry. Over 100 manufacturers were involved in candy production. In the 1950s, this industry employed about 22,000 people.
The city attracted industry with its good road network, cheap immigrant labor, and easy access to agricultural products. Despite the loss of many manufacturing enterprises, Chicago continued to lead in the production of steel, diesel locomotives, electronic equipment, and other products.
Post-Collapse Flourishing
The industrial decline in the city continued into the 1970s. Soon after, the American steel industry experienced a sudden collapse. Chicago’s old and inefficient mills failed to compete with newer, modern foreign plants. By 1979, many enterprises were closing en masse, and approximately 160,000 steelworkers lost their jobs.
Residential gentrification created enormous problems for the city’s industry. From 1987, factory buildings began to be converted into apartments. By 1990, residents of Clybourn began complaining about the dirt and noise from the A. Finkl & Sons plant. In 2008, the plant moved to the South Side steel district.
The erosion of the city’s industrial base continued until the late 1940s. During World War II, the federal government poured large amounts of money into California and other states. Taxpayer funds were used to build bases, improve the aerospace industry, and other military-oriented sectors. Illinois and other states suffered from this. Chicago manufacturers failed to modernize industrial practices. Globalization negatively affected the city’s economy and weakened its industrial base. Despite everything, Chicago overcame its difficulties and ranked second among the best manufacturing cities in the U.S. in 2018.