That’s how I was feeling the other day when I read about the steel plant closing
in Granite City, Illinois.
About 2,100 people are out of work.
And lots of folks are asking: Is this really just a temporary closing?
I hope it is.
Just over a decade ago, in my hometown of Galesburg, a town about the same size
as Granite City, we lost 2,000 jobs when Maytag closed its refrigerator plant.
I remember hearing the pain in people’s voices as they talked about their jobs
disappearing. It was a time of navel gazing and reevaluation.
Folks wanted things to get better, but they just wouldn’t. Even today, Galesburg
has yet to fully recover.
Illinois factory jobs are vanishing faster than emails on Hillary Clinton’s
computer.
But that’s not the case everywhere.
Just look at Indiana.
Since March 2012, Indiana has added 39,000 manufacturing jobs, while Illinois
has lost 2,500, according to the U.S. Bureau of Labor Statistics.
That’s a pathetic performance on Illinois’ part.
The Land of Lincoln is experiencing an exodus of jobs and people. States with
lower taxes or regulations like Indiana, Texas and Florida have been the
beneficiaries of this diaspora.
Yet another Illinois steel-industry company announced this month it is moving
operations elsewhere.
It is jumping the border to Indiana.
And its taking 100 new jobs with it.
South Holland-based T&B Steel Tubing will invest $5.6 million to build a
brand-new facility in Gary, Indiana.
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Also Romeoville-based American Stair Corp. Inc., a manufacturer of
steel stairs and railings, announced in February it will be
relocating to a new plant in Hammond, Ind., by the end of the year.
This will yield nearly 200 new manufacturing jobs in the border town
over the next three years.
So why are businesses moving elsewhere?
Many companies prefer to operate in right-to-work states.
Recently, I had a chat with someome who promotes economic
development in Iowa and Illinois for the Quad-City Chamber of
Commerce.
He said it’s not uncommon for businesses seeking a site to want to
build in right-to-work states. This means only Iowa sites in that
bi-state region are considered for those businesses.
But Illinois functions at a disadvantage in other areas as well.
One of the big areas companies executives consider are the costs of
workers compensation.
Workers comp is the insurance employers have to buy in case an
employee gets hurt on the job.
Workers comp rates in Illinois are among the highest in the nation.
According to Springfield-based Selvaggio Steel. Steel workers
falling under one particular class cost Illinois manufacturers more
than $14 in workers’ compensation costs per $100 of payroll. In
Indiana, that number stands at just below $5.
That’s a big cost savings that makes it difficult for the Land of
Lincoln to compete.
And until we see fundamental reform in the areas of taxes, labor law
and workers compensation, Illinois won’t compete.
[This
article courtesy of
Illinois News Network.]
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