South Bend, Indiana - Economy

Economy

South Bend's location on the St. Joseph River led to an industrial-based economy in the late 19th century and early-to-mid-20th century. In 1923, industrialist and entrepreneur Vincent H. Bendix selected South Bend as the site of his new manufacturing plant for automotive parts. He chose South Bend primarily because it was on a rail line midway between Chicago and Detroit, the two automotive manufacturing centers of the United States at the time. Eventually, the Bendix corporation would build a vast manufacturing complex on its South Bend acreage served by the major railroads, including a huge shipping and receiving building where railroad cars could enter at one end, unload, and depart at the opposite end.

By the end of World War II that economy began to diminish. The Studebaker plant, which had been one of the city's largest industrial employers, closed in 1963; its engine block plant shuttered the following year. Parts of the Bendix factory complex were later acquired and subdivided between Honeywell Corporation and Bosch Corporation respectively. Honeywell Aerospace continues to manufacture aviation products at its former Bendix facility. In 2010, Bosch announced that it will cease all operations at its Bendix plant location in South Bend by the end of 2011.

These and other remnants of the old economy can still be seen in the abandoned industrial buildings around the city, most of which have not been reclaimed, though a number have been demolished. Since the 1960s, education, health care, and small business have come to the forefront of South Bend's economy, though the city has never regained the level of prosperity it enjoyed before that time. Large swaths of housing—7.4% of the city's housing stock in 2006—remain vacant.

Nearby University of Notre Dame is a large contributor to the local economy. The university is the largest employer in St. Joseph County, employing 4,758 people.

Health care is another major contributor to the South Bend economy. Memorial Health System is the largest employer in the city. In 2012, Memorial announced that it was merging with Elkhart General Hospital, located in Elkhart County, to form Beacon Health System. Other notable businesses include Honeywell, Bosch, Woodwind & Brasswind, and PEI Genesis. AM General, Crowe Horwath, Martin's Super Markets, and Schurz Communications have corporate headquarters in South Bend.

Efforts are underway to spur economic growth in South Bend. The St. Joe Valley Metronet is a not-for-profit organization attempting to create a more robust telecommunications infrastructure capable of inexpensive high-speed data transmission. It is thought this could bring more high tech firms to the city and surrounding area. Redevelopment is underway for some of the abandoned industrial facilities, with the abandoned Oliver Corporation buildings being the most recent example of reclaimed property.

In 2012 Kiplinger's Personal Finance ranked South Bend eight of the "Ten Best Cities for Cheapskates".