Peoria Standard

Beginning with a sharp plummet first recorded in July 2009, from which Peoria has never quite recovered, recently revealed data on local manufacturing jobs indicate that the city hit an all-time low as of August.

Once nearly dependent on equipment manufacturing giant Caterpillar Inc., Peoria’s economy declined in response to layoffs at the locally headquartered company, severely reducing a local labor force once buttressed by the industrial manufacturer.

In addition to the Caterpillar layoffs, Peoria’s employment numbers have also suffered at the hands of state government. Analysts at the Illinois Policy Institute noted that Illinois’ elected leaders have essentially undermined the economic balance of cities such as Peoria by “by making them unattractive for new production investments … And that means state government is a major impediment to creating jobs middle-class workers need to support their families.”

In the early 90s, almost one in every four jobs in the city was directly tied to manufacturing. Today, that figure is halved, with only one out of every eight positions classified in that sector. This figure is lower than any recorded even during the Great Recession. Additionally, an impaired manufacturing sector translates to a reduction in the city’s overall labor force numbers — with July 2016’s figures tallying 21,000 under that of July 2009, when the labor force first tanked.

To an extent, Peoria’s results — which translate to a 10 percent loss in jobs — mirror Illinois’ figures. Statewide jobs diminished by 143,000 since before the recession. While those numbers render Illinois’ results equivalent to just a 2 percent reduction, the Land of Lincoln nevertheless remains a poor performer in comparison with its neighbors.

Illinois’ adjoining Midwestern neighbor states — including Indiana, Wisconsin, Iowa and Missouri — have all managed to bounce back from recession. All four have reported workforce numbers higher than those before the recession.

Caterpillar spokespersons have indicated that its problems in Peoria are not unique, and that it has experienced slow growth on a global scale of late due to suppressed construction on an international level, hence reducing demand for machinery.

CAT’s CEO Doug Oberhelman himself acknowledged the trend as far back as over four years ago when he published a letter in the Springfield State Journal-Register detailing why his company curtailed its regional investments in Illinois. Quite frankly, he attributed the situation to unfriendly state policies — even as he expressed positive sentiments about Illinois itself.

Oberhelman predicted in February 2012 that without significant tax and regulatory changes, the state would continue to witness a decline in the manufacturing sector. Indeed, Illinois then became the only regional state to lose manufacturing jobs, slipping by 11,000 slots during a time period when neighboring Indiana gained 40,000 and Michigan almost 75,000.

The CEO’s misgivings were recently further validated when the Illinois Manufacturers’ Association (IMA) echoed his warning. The association’s CEO, Greg Baise, said that state government is driving business away from Illinois in a Sept. 27 letter directed to the same Springfield newspaper to which Oberhelman addressed his message years ago.

In his letter, Baise outlined a five-part “Middle Class Manufacturing Agenda” which he said could alleviate Illinois’ workforce woes. His plan included spending and regulatory reforms, a balanced budget, expanded sales tax to include services as well as products, a complete revamping of the property tax system, and closing the job skills gap by addressing vocational training in high schools to supply skilled manufacturing workers for years to come.

“Illinois needs to be ready when global economic trends again favor manufacturers,” Michael Lucci, VP of Policy for the Illinois Policy Institute, said. “The moral failure of politicians, who idly watch as jobs leave the state, has to stop on a bipartisan basis. And at long last, policies need to be put in place so Peoria, Rockford, Decatur and Aurora can be in line for new investments in manufacturing facilities.”

Caterpillar Inc. manufactures construction and mining equipment, diesel and natural gas engines and industrial gas turbines, with a wide complement of affiliated services worldwide, from its headquarters in Peoria.