Yet another Illinois company is pulling up stakes and moving to Indiana. Hoist Liftruck, a manufacturer of forklifts, is moving from Bedford Park across the border to East Chicago:
The growing company needed more space for its manufacturing operations, and when it found a suitable building in East Chicago, it decided to make the leap. It was an easy decision, because Indiana offers a better business climate than Illinois and Hoist will save “many millions of dollars a year†by moving, said Marty Flaska, president and CEO of the company.
“The environment isn’t friendly for what I do†in Illinois, Flaska said.
In East Chicago, he said, Hoist will save $1 million annually on workers’ compensation-related costs, a significant sum for the firm. Workers’ compensation lawyers in Cook County right now are bringing three to four illegitimate claims against the firm a month, costing it money, according to Flaska.
Indiana also offers lower taxes for the company and less-expensive housing for his employees, he said. Hoist employs welders, assemblers, material handlers and other production workers. Hoist’s lifts are used by big manufacturers, like automakers.
Incentives played a critical role in the company’s decision to leave Illinois. Hoist will be able to lay claim on a big package of tax credits as it ramps up operations in East Chicago. By 2022, the company plans to employ around 500 people there.
The Indiana Economic Development Corporation has offered the company close to $8.3 million in tax credits, according to a statement. The city of East Chicago and economic development agencies in Lake County, Ind., are also chipping in subsidies.
If memory serves, Hoist was a client of mine 25, 30 years ago. I never did anything for them directly but one of my guys did. I haven’t heard from them in decades.
At some point Illinois is going to need to decide what kind of state it’s going to be. It can’t go on losing companies to Indiana, Wisconsin, and Iowa forever.
Hell, or Indiana… Hell, or Indiana….
I’m going to need more time before I make my decision.
Hmmm….why Indiana? Oh yeah, that’s right, it’s a RTW state. But of course, none of that matters, as the thumb of union rule is so business-friendly!
Sounds like they are getting millions in lower taxes, but getting closer to 10 million in subsidies. No wonder they are leaving. Will be interesting to see how long Indiana can sustain that.
Steve
In the final analysis Illinois loses economic activity while Indiana gains. There are all sorts of different things Illinois might do. It isn’t doing them.
I guess. For me this is just another long term issue for our country. Places like Chicago provide the world class infrastructure and education needed to make world class companies. States that do not support that kind of infrastructure have lower tax rates, and can afford to pay (subsidize) those companies to come to their states once they are operative. Is that really sustainable for us in the long run? (Remember that I am from Indiana and have a passing acquaintance with schools there.) Those same states also, by and large, don’t provide health care for the poorer 15%-25% of their populations. What happens as we persistently leave those people out of our potential pool of innovators? Anyway, in the short run, Indiana wins, just not sure where this goes long term.
Steve
jan-Once again, union membership in private companies is down around 6% now (8% or 9% in Illinois last time I looked). Gotta find a new bogeyman. Personally, I would just blame it on Obama.
I’d take a Purdue University engineer for a classic widget maker I n almost all disciplines over a Northwestern techie 7 days a week. Or an Iilinois Institute of Technology engineer. U of I is good, but it’s actually downstate and more focused on Chem E and CS. And then there is Rose Hulman in Indiana.
Indiana University and Notre Dame have the best undergrad business schools in the Midwest. Period. (And top 5-7 in the country) Last time I looked they were in Indiana. At the graduate level Northwestern and Chicago lose their grads to the four corners of the country. It’s not IL vs IN, and the grads tend not to aspire to making forklifts.
Better rethink that education thing, steve. You are full of it.
Undergrad b school? LOL. Anyway, I will grant you Purdue is a great engineering school. (I had a full scholarship there. Gave it up when I went into the military.) But beyond that, you just don’t see Indiana schools in the top 10-20 on much of anything. Math, physics and the other sciences? U Chicago, U. Illinois and an occasional Northwestern. If you want to believe we can lead the world’s economy by turning out good little b school drones to find better ways to market toilet paper, go ahead.
Steve