Believe it or not but the officially closed auto plants in U.S. are playing a pivotal role in keeping the depressing economy afloat and have proved to be a blessing in disguise, to say the least. Through a first-of-its-kind extensive study and research on locked down facilities, it has been found that developers are procuring closed plants on large-scale since last three years.
The trend has continuously strengthened its grip in the market and lower property values and plethora of closings have further encouraged developers to buy 32 properties since 2008. The sites are being used to set-up housing developments, warehouses, research centres, along with wind and solar energy plants. Of the total sites bought, eight are now schools or colleges, the study says.
In total, around half of the 263 plants that had locks hanging on their gates in the United States, have been infused with life in some way or the other. The research has been carried out by the Labour Department’s Office of Recovery for Auto Communities and Workers.
The incessant developments have ensured that the communities are able to earn significant tax revenue, which slipped away during the time of the plants' closure. However, the trend has not made much difference to the employment rate that fell sharply following the lock downs.
“These communities are often defined by these facilities in terms of employment and of their identity, and there’s an emotional and psychological benefit” to the fresh developments, said Jay Williams, Executive Director of the office.
It is important to note that though the reuse of idle sites has been actively seen on the cards, there are places where the process of reviving has been lax. One such place is North Tarrytown, New York. “We’re starting to get back on our feet and not be dependent on General Motors any more, but our down town still has a lot of vacant properties,” the administrator of North Tarrytown, Anthony Giaccio said.
Thus, the U.S. expects to see further boost in the developments as more and more developers are ought to join the league in the near future.
