The Illinois Policy Institute reports Wynright Will Shutter Two Illinois Plants in favor of Indiana.
> A suburban manufacturer has announced plans to invest $26 million into a new facility in Hobart, Indiana, while shuttering its two Illinois plants.
> Wynright Corporation, a subsidiary of Japan-based Daifuku, operates facilities in the villages of Oak Lawn and Elk Grove. Both facilities are set to close this fall after the storage equipment manufacturer accepted a deal from Indiana officials that included $6 million in state subsidies and a $100,000 training grant, according to Crain’s Chicago Business. The city of Hobart and Northern Indiana Public Service Company, the region’s gas supplier, are also providing economic incentives to the company.
> A spokesperson for the Indiana Economic Development Corporation told Crain’s that the new Indiana plant will replace both of the manufacturer’s existing Illinois plants. The Indiana site is expected to create nearly 600 jobs within three years.
> More affordable property taxes and lower workers’ compensation costs in Indiana have proven attractive to Illinois manufacturers, who are struggling in a far less competitive business climate.
> While awarding subsidies to select businesses is not a sustainable formula for economic growth, the ease with which businesses can be poached from Illinois through special economic incentives should not be overlooked. In June, Atlantic Coca-Cola Bottling Co. announced that it would relocate its Rock Island facility to Walcott, Iowa, accepting a property tax rebate estimated between $450,000 and $500,000 and a sales tax rebate of more than $240,000.
> Illinois’ own efforts to spur economic growth with special incentives have seen little success. Takeda Pharmaceuticals, one of the state’s top tax credit recipients, recently announced plans to close its 1,000-employee headquarters in Deerfield. And rail car manufacturer Nippon Sharyo is closing its doors in Rochelle, despite having received more than $10 million in state subsidies and tax credits.
Exodus Picks Up Steam
The Illinois exodus picks up steam. And it’s just starting.
The Illinois “solution” will of course be even higher property taxes.
Mike “Mish” Shedlock
“While awarding subsidies to select businesses is not a sustainable formula for economic growth…”
Sure it is – it can be sustained by continually shrinking the government and getting it out of the way productive businesses!
I’m not defending Illinois, however it has to be pointed out that Indiana is #11 in the list of states that take more money from the Federal government, and Illinois is #48 (thus pays more into the Federal government than they get back).
When you are short changing your citizens and putting them on the Federal safety nets you can afford to undercut surrounding states with lower property taxes, etc.
It is a bit like Walmart and Amazon relying on Medicare and SNAP to pay their employees less than they need to live on.
What a load of crap. Illinois has so many people who receive federal benefit that are not counted in the STATE totals that it’s not funny.
themo, you apparently forgot to factor in welfare benefits.
Democrats are in control and in power.
Public unions and their benefits will be protected.
Even until the day before bankruptcy.
Unfortunately, Illinois’ ultimate solution will be some form of Federal transfers. As always, from those more competent than them, to themselves, and others similarly lacking in competence and decency. While the indoctrinati will be told that unless they go along, there will be Tanks in the Stree!, Starving Children! and that, booohooo, The Syyyystem Wiiilll Collaaapse!!!