State’s Manufacturing Industry is Crucial to Economic Growth as Unemployment is Down and Jobs are Up
CHICAGO – One day after President Barack Obama visited Illinois to highlight the nation’s economic comeback, the Quinn Administration today joined Americans across the country on National Manufacturing Day to honor the nation’s factories for their contributions to the economy. Manufacturing is the number one industry in Illinois, fostering technology and innovation leadership and providing a broad range of jobs and economic stability to the state.
“As the third largest manufacturing state in the nation, we celebrate our manufacturing industry every day, where production is thriving and helping to drive our state’s economic comeback,” Illinois Department of Commerce and Economic Opportunity (DCEO) Director Adam Pollet said. “Just last month, we added 2,100 manufacturing jobs. When our manufacturing industry grows, we are able to create jobs in transportation and supplier industries that strengthen our economy across every part of the state. The Land of Lincoln wouldn’t be what it is today without the hardworking men and women who serve as the foundation to our growth in manufacturing.”
During his speech, President Obama noted that the manufacturing industry is growing nearly twice as fast as the rest of the economy. In Illinois, manufacturing comprises approximately 14 percent of Illinois’ gross domestic product and makes up more than 10 percent of the total workforce. Illinois ranks as the third largest manufacturing state, with the industry’s presence felt across all regions of the state.
In February, Governor Quinn joined President Barack Obama to announce a new digital manufacturing lab in Illinois, an initiative made possible by $16 million investment from the state. The Digital Manufacturing and Design Innovation Institute (DMDI), operated by UI Labs in Chicago, will connect factories around the state to new technology that improves their efficiency. Following the state’s backing, the U.S. Department of Defense gave DMDI a crucial $70 million contract to help design systems for the armed services.
Federal data show that since early 2009, when the Great Recession was in full force, the number of Illinois businesses devoted to transportation and warehousing has grown by more than 26 percent, to a current total of 16,499. Manufacturing firms also have increased over the five-year period, adding 207 businesses in Illinois to a current tally of 19,306.
In July, Governor Quinn signed a proclamation declaring October as Manufacturing Month in Illinois. As Governor, he has long been supportive of Illinois’ manufacturing industry and has used performance-based tax incentives and state-supported loans, among other programs, to drive the industry and support growth across Illinois.
Illinois provides manufacturers quick access to all of North America because of its location, not only as the hub of the Midwest, but also its access to all forms of transportation: water, road, rail and air. Governor Quinn has supported these companies with a $31 billion public works program, one of the largest capital construction commitments in the nation, to ensure efficiency across Illinois’ 21st century transportation systems.
Examples of state investments in support of manufacturers and allied areas such as trucking and logistics include:
• Weber-Stephen Products, maker of the Weber Grill, which is building a distribution center in Huntley that will create 120 jobs. State incentives and a $59 million highway interchange allowed the project to happen.
• Wm. Wrigley Jr., which is building a manufacturing plant in Yorkville, creating 75 jobs.
• Wheatland Tube, which has used state job training funds to help it expand its Chicago payroll of more than 200 employees.
• Hof Haus Meat Products in Chicago, a recipient of a state-backed loan that is helping it expand and hire 25 new workers.
• Cloverleaf Cold Storage in Monmouth, where state incentives and road improvements will help the company create 155 jobs.
• Pinnacle Foods, a producer of well-known grocery products, which is doubling its workforce in St. Elmo, adding 90 jobs.
• Slidematic Precision Components, which is adding 25 jobs and retaining 125 in Rockford.
Illinois’ unemployment rate hit a six-year low in August when it fell to 6.7 percent. August’s total private sector job gains in Illinois of more than 13,000 positions included 2,100 in manufacturing. Since early 2010, when job growth returned to Illinois following the last recession, the state’s manufacturers have added 19,200 jobs, bringing their total payrolls to 573,300.
The number of people employed in all industries in Illinois remains above six million, continuing a 2014 trend that has seen more people working in this state than at any time since early 2009.
Manufacturing Day is a national event that supports hundreds of companies across North America. To learn more about Manufacturing Day, visit www.mfgday.com.
For more information on doing business in Illinois, go to www.illinois.gov/dceo.
Source: illinois.gov
