Northern United States

The Northern United States—centered on the Great Lakes industrial heartland—remains an economic powerhouse despite decades of narrative about Rust Belt decline. The six core states (Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin) exported $312.9 billion in 2024, accounting for 15.2% of total U.S. exports. Transportation equipment manufacturing leads, representing 23.9% of the national total. Ohio produces 15% of American raw steel. Michigan hosts over 160 aerospace companies.

The binational integration distinguishes this region. U.S.-Canadian trade through the Great Lakes reaches $278 billion annually—more than the region trades with Mexico, China, the UK, Germany, and Japan combined. The 107 million residents across eight states and two provinces form an economic zone that transcends national boundaries. Chicago, Toronto, and Detroit anchor metropolitan economies that feed manufacturing supply chains.

Trade uncertainty weighs on 2025 performance. First-half manufactured goods exports declined 5.7% compared to 2024. New export orders fell for four consecutive months. The same global integration that built regional prosperity now creates vulnerability when tariffs disrupt flows. Yet the fundamental advantages persist: Great Lakes water resources, established supplier networks, skilled workforces trained across generations.

By 2026, the Northern United States will likely continue its complicated reality: manufacturing importance undiminished even as job counts shift toward Sun Belt alternatives. The freshwater advantage gains salience as climate concerns intensify—positioning the region for industries where water matters more than taxes.