Recently released reports of the 1980 Census
of Population has again focused attention on the
relatively poor economic performance of the
Northeast region. This paper suggests that the
labor costs and market conditions that have alleqedly
been responsible for the movement of traditional
manufacturing out of the Northeast may
be changing. Thus, this movement will not be a
"drag" on the future economic development of the
Northeast. The potential "turnaround" in the
Northeast is suggested by the recent economic
performance in New England and by Pittsburgh's
ability to attract firms in rapidly growing
manufacturing sectors.