"The Japanese certainly have softened the blow from autos," says economist Swonk. "Ohio has been below the national average in unemployment lately, and Honda is a big factor in that," she adds.
But Japanese steelmakers have become big players in the region as well. In addition to the Nippon-Inland joint venture, the best example may be the case of National Steel, which has been rapidly modernizing its sprawling Great Lakes Steel operation in Ecorse, Mich., outside Detroit, in order to supply higher quality steel to the auto industry. National is a joint venture between Nippon Kokan Steel of Japan and Pittsburgh's National Intergroup.
"Virtually all of the Japanese investment in the American steel industry is in the Midwest," observes Bernard Lashinsky, an economist at Inland Steel.
In fact, the Midwest is apparently benefitting from Japanese investment more than almost any other region of the nation. A February survey of Japanese companies by the Japan External Trade Organization found that Illinois, Ohio and Michigan all ranked in the top five states in the country in terms of the number of Japanese factories or other facilities they have attracted.
While California, which traditionally has been a favorite location for Japanese firms, still ranks first with 202 plants, the survey found that Ohio and Illinois have had the greatest growth in new Japanese factories since 1985.
JAPANESE IN THE MIDWEST
Employment at Japanese-owned facilities in six Midwestern states.
Employee origin Ill. Ind. Mich. Minn. Ohio Wis. Total Assigned from Japan 2,087 522 1,526 23 1,086 43 5,287 Local staff 33,703 8,164 22,517 2,234 30,539 409 97,566 Total 35,790 8,686 24,043 2,257 31,625 452 102,855
Japanese facilities (offices, factories, etc.) in six Midwestern states, by industry and state.
Industry type Ill. Ind. Mich. Minn. Ohio Wis. Agriculture, 1 0 0 0 2 0 forestry, fisheries Construction 5 2 1 1 2 0 Manufacturing 212 64 206 21 109 16 Transportation, 33 1 12 5 13 1 warehouse Services (restaurant, 67 0 6 1 2 1 travel, etc.) Commercial trade 148 7 24 3 21 1 (sales, retail, etc.) Finance, insurance, 36 0 3 1 1 0 real estate Miscellaneous 11 0 6 0 1 1 (economic organizations, etc.)
Source: "Japanese Direct Investment in the Midwest: 1989 Survey" by the Consulate General of Japan at Chicago
