Lake Erie's Role in Ohio Business and Industry

Introduction

Lake Erie serves as a vital economic artery connecting the industrial and commercial markets of Northern Ohio, the state of Ohio, and the entire United States.

Background on Lake Erie

Lake Erie forms the northern boundary of the state of Ohio, separating it from Canada. It is the fourth largest of the Great Lakes and the twelfth largest freshwater lake in the world. It provides significant drinking water to the surrounding cities and towns and is used extensively for recreation and fishing (Hansen). It also supplies large quantities of hydroelectric power throughout the region.

The dedication of the St. Lawrence Seaway in 1959 opened Ohio's Lake Erie ports to ships of all flags. Prior to construction of the Seaway, only very small "canalers" could reach the Lakes from the Atlantic, so overseas trade via the Lakes was insignificant. Today, the saltwater trade to and from Ohio is an important segment of Great Lakes shipping, accounting for 1.7 million tons (Martel and Schultheiss). As the following sections demonstrate, Lake Erie is also extremely significant to the broader business community.

Lake Erie's Significance to Business and Industry

Lake Erie supports all types of business and industry through its shipping routes and natural resources. The lake contains large amounts of sand and gravel, which construction companies use for a variety of products. The building industry relies on these materials for cement, paving, laying stone and brick, and many other applications. Much of this sand and gravel comes from yearly dredging, which is necessary to keep Ohio's ports open.

There are eight ports located on Lake Erie in Northern Ohio. The ease of transportation on and around the lake contributes to industrial growth in communities throughout the region. Oregon, Ohio has created a free trade zone in the Lucas County Port. "The site of the first Great Lakes foreign trade zone, the Port is the number one grain exporter on the Great Lakes and is Oregon's key to the seas of the world. Sun and BP Oil refining companies cover over one square mile, employ over a thousand full-time employees, and together process over a quarter million barrels of oil every day" (Editors). Free trade allows industry to conduct business without the tariffs associated with non-free trade zones and encourages businesses to locate in the area. Free trade zones are usually situated at transportation hubs, and Lake Erie is the backbone of this hub, which includes highways for truck travel, railroads, and lake shipping.

Shipping is perhaps the first thing that comes to mind in connection with Lake Erie. Vessels travel from Lake Erie to Lake Ontario through the Welland Canal. Because the New York State Canal Barge System links Lake Erie with the Hudson River, shipping can continue all the way to the Atlantic Ocean and then anywhere in the world. The Welland Canal is important because it allows ships to bypass Niagara Falls (Colman).

Shipping and Port Infrastructure

Shipping is so important to Ohio that the Ohio Environmental Protection Agency developed a multi-year plan called "Ship Ohio" to improve Lake Erie ports and attract more businesses to ship their products on the lake. The project was slated for completion in 2002. The redevelopment of Ohio's lake ports also included significant redesign of the highways leading in and out of the Lake Erie area. These highways support the delivery of materials for lake shipment; they were redesigned to carry heavier loads and to streamline traffic around the lake (Green).

A special type of vessel carries cargo around the lakes. As Neil Schultheiss explains, "To handle Great Lakes cargo, a special type of vessel has evolved — the North American 'laker,' the largest being 1,013 feet (335 meters) long, capable of carrying up to 70,000 tons (70,966 tonnes) of iron ore or 1,700,000 bushels (45,552.5 tonnes) of grain in one trip." Shipping on Lake Erie has thus evolved into a specialized industry requiring shipyards, ship maintenance, and the manpower to load, unload, crew, and build the vessels used on the lake. One of the largest maritime support ports on the lake is Cleveland, where many ships go for maintenance and where many maritime union and support organizations are headquartered (Martel and Schultheiss).

Conclusion

Many other products ship out over Lake Erie every day. They include coal, stone products, salt, cement, sand, grain, and petroleum products. In any given year, approximately 18 million of the 35 million tons shipped throughout the Great Lakes originate from Ohio ports (Martel and Schultheiss).

Without Lake Erie, Ohio's business and industrial economy would look far different. The lake supports shipping options that would not exist if Ohio were landlocked. Industries would likely have migrated to areas where long-range shipping was more viable, perhaps along the Atlantic coast. Lake Erie also contributes to the recreation economy as a tourist attraction, and even more so because local residents use the lake for recreation throughout the year, creating business for industries as diverse as pleasure boat dealers, fishing suppliers, and food vendors.

Lake Erie is most important for shipping, but Ohio's industry also draws heavily on the lake's natural resources, such as sand and gravel. Numerous hydroelectric power plants along the lake's shores generate additional economic activity. Cheap, plentiful power is itself an incentive for businesses to locate in the region. Without the lake, Northern Ohio would be vastly different, and the goods and services it supplies to the rest of the country would be more difficult to obtain — and almost certainly more expensive as a result.

Lake Erie plays a critical role in the lives of the people of Northern Ohio, the state, and the entire country. As Dr. Reutter writes in the Twine Line newsletter, "When Ohio Sea Grant began in 1977, there were about 50 charter captains on Lake Erie and just over 200 marine-related businesses. Today there are about 1,000 charter captains and well over 400 marine-related businesses, and Ohio Sea Grant has played a large role in these increases. Tourism, fishing, and boating are very important on Lake Erie, but future development must be well planned and done in a sustainable fashion since overcrowding is becoming a problem."

Reutter captures the broader significance of the lake succinctly: "Many people believe Lake Erie is Ohio's most valuable natural resource and possibly the most important lake in the world."

Colman, Jonathon D. "Great Lakes Ports and Shipping." TEACH Great Lakes. 10 Jan. 2002.

Editors. "Community Profile." Oregon, Ohio.com. 2002.

Green, Nate. "Lake Erie Protection & Restoration Plan." Ohio State Environmental Protection Agency. 6 Sept. 2001.

Hansen, Michael C. "The History of Lake Erie." Ohio Department of Natural Resources. 30 Dec. 1999.

Martel, Bob, and Neil Schultheiss. "Great Lakes Shipping: The Vital Link for Ohio Industry." Lake Carriers' Association.

Reutter, Dr. Jeffrey M. "Lake Erie's Past and Future." Twine Line. November/December 1999.

Schultheiss, Neil. "Welcome to Great Lakes Shipping." Great Lakes and Seaway Shipping. 2002.

Staff. "Lakes, Rivers, and Canals." Ohio History Central. 1995.