November 16th 2024.
Tim Henderson, a writer for Stateline.org, delves into the transformation of McLean County, Illinois brought about by the COVID-19 pandemic. Prior to the outbreak, the county was primarily recognized for being home to State Farm Insurance and Illinois State University. However, in recent times, the county has seen a surge in manufacturing, particularly in the production of Rivian electric vehicles and Ferrero candies at a new candy factory.
Patrick Hoban, the president of Bloomington-Normal Economic Development Council in McLean County, remarks on this shift, stating that the county was not previously known for its involvement in the food and electric car industries. He notes that the rise in manufacturing has been swift, with Rivian's employment numbers skyrocketing from 300 to 8,000 employees in a short period of time.
This trend of bringing manufacturing jobs to smaller cities with lower costs of living is not unique to McLean County. In fact, it is a part of a larger movement that has been underway for some time. The Economic Innovation Group, a bipartisan public policy organization in Washington, D.C., reports that between 2019 and 2023, there has been a significant increase in manufacturing jobs, marking the first time since the 1970s that manufacturing employment has fully recovered from a recession.
Despite this positive growth, the number of manufacturing jobs is still significantly lower than it was in the past, with the peak being in 1979. Joseph McCartin, a professor at Georgetown University and expert in labor history, explains that the manufacturing industry has been on the rise since 2010, following the Great Recession. However, the pandemic has caused some disruptions in this progress. Nevertheless, the Biden administration has taken steps to boost both wages and jobs through initiatives such as the CHIPS and Science Act and the Inflation Reduction Act.
Unfortunately, the outcome of the recent election may have a significant impact on these efforts. McCartin suggests that the Biden administration's approach of promoting union jobs and fair wages may be hindered by the election results. Additionally, the potential deportation of immigrant workers under the new Trump administration could pose a challenge for employers trying to fill lower-paying manufacturing jobs, such as those in meat processing.
The Economic Innovation Group report also highlights the specific areas where the growth in manufacturing jobs has occurred. Interestingly, it is the smaller urban areas, such as McLean County, that have seen the most significant increases. On the other hand, rural areas have experienced a decline in manufacturing jobs, while large cities have remained relatively stable.
A closer look at the data from the federal Bureau of Labor Statistics reveals that the majority of the growth in manufacturing jobs has been in the Sun Belt and Western states. Nevada, Utah, Arizona, and Florida have seen the largest percentage increases, while Texas, Florida, and Georgia have seen the most significant raw numbers of new jobs. Additionally, states like Alabama and Mississippi have also seen a rise in automotive jobs, thanks to lower costs and state laws that weaken unions.
In conclusion, the COVID-19 pandemic has brought about significant changes in the manufacturing industry, with smaller cities and states in the South and West seeing the most growth. However, the outcome of the recent election and potential policy changes may impact the trajectory of this trend in the future.
In the pre-pandemic era, McLean County, Illinois was mostly recognized as the home of State Farm Insurance in Bloomington and Illinois State University in Normal. However, the region is now experiencing a major transformation as it becomes a hub for manufacturing companies due to its lower cost of living. With the recent establishment of a Rivian electric vehicle factory and a new candy production plant for famous brands like Kinder Bueno and Ferrero, McLean County is now known for its diverse industries.
Patrick Hoban, the president of Bloomington-Normal Economic Development Council, expressed his surprise at the sudden shift in the county's economy. He stated that food and electric cars were not previously associated with the region, but now they are the driving forces behind its economic growth. In just a short period, Rivian has expanded its workforce from 300 to 8,000 employees, catching many off guard with their rapid growth.
President-elect Donald Trump has promised to revive American manufacturing, which resonated with many areas that have suffered from the outsourcing of factory jobs. However, this revival has already been underway in many places, including McLean County. According to a recent report by the Economic Innovation Group, a bipartisan public policy organization, the county is experiencing a significant increase in manufacturing jobs between 2019 and 2023. This is the first time since the 1970s that manufacturing employment has fully recovered from a recession.
Although the number of manufacturing jobs in 2023 is slightly higher than in 2019, it has significantly declined since its peak in 1979. Joseph McCartin, a labor history expert, believes that manufacturing has been on the rise since 2010, but the pandemic has interrupted this progress. However, with the recent increase in wages and job opportunities through the CHIPS and Science Act and the Inflation Reduction Act, there is hope for a continued upward trend under the Biden administration.
McCartin also mentioned the Biden administration's efforts to ensure that these manufacturing jobs offer union-level wages. However, with the results of the recent election, this approach may no longer be viable. Moreover, if the new Trump administration follows through with their plans to deport immigrants, employers may struggle to fill lower-paying manufacturing jobs such as meat processing. William Jones, a history professor at the University of Minnesota, believes that industries that heavily rely on immigrant labor will be greatly affected by these policies.
According to the Economic Innovation Group report, the majority of the growth in manufacturing jobs is happening in small urban areas like McLean County, while rural areas are experiencing declines, and large cities are seeing no change. States in the Sun Belt and the West, such as Nevada, Utah, Arizona, and Florida, have seen the most significant increases in manufacturing jobs between 2019 and 2023. Texas, Florida, and Georgia have also seen a substantial increase in new manufacturing jobs.
The Southern states of Alabama and Mississippi have also seen a surge in automotive jobs due to their lower costs and "right-to-work" laws that weaken unions. These states have seen a significant increase in vehicle manufacturing, with Alabama adding 7,800 jobs and Mississippi adding 6,600 jobs, the highest outside of California.
In conclusion, McLean County's transformation from an insurance and university town to a manufacturing hub is a prime example of the current trend of bringing factories to smaller cities with lower costs of living. The county's success in attracting big companies like Rivian and Ferrero is a testament to its potential for growth and development. With the right policies and initiatives, McLean County and other areas like it can continue to thrive and contribute to the revival of American manufacturing.
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