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The Rust Belt reflects much of what's good and bad with the current economy — the industrial market is in the dumps; residential construction is hanging tough; and office construction is spotty and dependent on the local employment picture. With so much of the region's industrial might tied to the auto market, when Motor City sneezes, the rest of the region catches a cold.
Skeptics wonder how long Detroit's automakers can rely on the fumes of zero-percent financing to continue to drive new car sales. Office vacancy rates are ugly in many metropolitan areas; Chicago and Detroit have downtown vacancy rates of over 20 percent, according to Grubb-Ellis.
Still, some new construction projects are pumping some life into the region's economy. Ford Motor Co.'s supplier campus being built near its South Side Chicago assembly plant will have 800 employees by 2003.
(in millions of dollars)