In his inaugural address, President Barack Obama made the following declaration to the nation: "Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this America: They will be met."

I share President Obama's realism, hope, and determination. Like the rest of the country, Northwest Indiana faces serious challenges, but they can be met and our region can prosper.

Throughout our local history, steel has been the heart of our economy. When the steel industry is strong, the region thrives. When it struggles, the region suffers, as has been the case in this recession. Thus, revitalizing our steel industry remains the key to stabilizing the region and providing a foundation on which to build a new economy in Northwest Indiana.

When Congress took action earlier this year to revitalize the economy and create jobs by investing in infrastructure modernization and expansion projects, I amended the legislation to require use of American-made steel in those economic stimulus projects. U.S. taxpayer dollars should buy American products and put U.S. citizens to work. Buying exclusively American steel will create additional jobs and revive the local economy, plus ensure the quality and safety of our new infrastructure.

But depending on steel alone to fuel our economy is ill-advised, and it is imperative that we take action to diversify our economic activities. One way to do that is to rebuild the region into a place that attracts and retains workers in the new high-wage, high-technology, information economy.

I believe the place to start is with extending the South Shore Line to Lowell and Valparaiso. The South Shore expansion would be a transformational project for the region, helping us overcome regional transportation deficiencies and strengthening our ties with Chicago's massive economy. Studies show that the project would create 26,000 jobs in Northwest Indiana and increase economic output by $81 billion over the next 30 years. Recent population studies and cost-benefit analyses have shown that the best way to proceed with the project is to first extend a line to Lowell and then another to Valparaiso.

I am more committed than ever to the South Shore expansion, as I believe this economic downturn exemplifies the need to build such a pro-jobs, pro-growth public works project, and I will do everything I can to see both lines are built.

Further, if steel is the heart of our economy then we must possess the same commitment to preparing each resident for vibrant new jobs. Northwest Indiana's universities play a vital role in making this happen. As institutions of higher learning, they are responsible for training the region's next generation. Fortunately, efforts are already under way.

For example, the Valparaiso University Department of Geography and Meteorology has secured state-of-the-art meteorology equipment from the National Oceanic and Atmospheric Administration. That high-tech research and training equipment helps prepare students for challenging new jobs and attracts established professionals to the region.

Meanwhile, I fully support the Indiana University School of Medicine-Northwest's desire to become a full four-year program so its students do not have to move downstate to finish their degrees. If we couple that with a state-of-the-art trauma center for the region, Northwest Indiana could become a leader in medical care and research.

Perhaps the best example of our universities helping to build a new economy is Purdue. Not only is an expansion under way of the Purdue Technology Center of Northwest Indiana, where innovative business ideas are cultivated and allowed to flourish, but also Purdue University Calumet is undertaking a concerted effort to become a major player in high-tech education and research.

In 2007, I helped Purdue Calumet establish the Northwest Indiana Computational Grid in collaboration with Purdue-West Lafayette and Notre Dame. The grid ties Purdue Calumet into an advanced computing network with other institutions, including the Fermi National Accelerator Laboratory and Argonne National Laboratories, that advances educational and research opportunities. One such opportunity is the Center for Computational Simulation and Visualization where advanced computing capacity allows previously unimagined visual research. Results already are coming in. The center has identified an inefficiency in the blast furnaces that are used in the steelmaking process, helping our mills become more efficient.

Which brings me back to steel. Steel has been, is, and will be the heart of our local economy, but it is clear that steel alone can no longer drive the region. That is why we must focus on the heart and mind of Northwest Indiana if we are to build a new economy. That way, as we work to meet our many challenges, we can come out ahead as a new and improved Northwest Indiana.