Peoria: Economy

Major Industries and Commercial Activity

Located at the center of a fertile agricultural region, with corn and soybeans as principal crops, Peoria is an important livestock and grain exporting market. Farm production and livestock sales in the three-county area are among the highest in the nation. Peoria is surrounded by rich bituminous coal fields that hold reserves estimated to last for 150 years and slated for worldwide distribution.

Manufacturing is a major industry; more than 200 diversified firms make nearly 1,000 different products. Peoria is the headquarters of two of the largest U.S. earth-moving equipment makers, which record an average of $2 billion in shipments annually. Local companies produce more than 14 percent of the country's internal-combustion engines and about 8 percent of all construction machinery in North America. The city is also the base for several distilleries and breweries.

The National Center for Agriculture Research is operated in Peoria by the United States Department of Agriculture; there, soil testing and chemical development are important areas of research. Peoria has formed the Biotechnical Research and Development Consortium to allow private development and marketing of the products developed at the center's Agricultural Research Lab and to expand the use of patents into the private sector.

Peoria is a main test market for several national consumer research firms such as Nielsen Data Markets, Inc., which has established one of its six facilities in the city. Health care, education, insurance, finance, and government are the other primary non-manufacturing sectors.

Items and goods produced: tractors, beverages, alcohol and solvents, brick, tile, caskets, castings, cordage, cotton goods, fencing and wire products, nails, animal feeds, food and dairy products, pharmaceuticals, steel, paper, household products, storage batteries, electric motor rails and bases, air-conditioning equipment, furnaces, oil burners, road machinery, heavy graders, strawboard, tools, dies, labels, grease and hides, millworking

Incentive Programs—New and Existing Companies

Local programs

Business is encouraged in Peoria through a variety of local programs. Among economic incentives are sales and property tax credits and exemptions, and industrial revenue bonds. Six Urban Enterprise Zones have been established in the Peoria metropolitan area; benefits include state tax exemptions and credits, building permit waivers, and property tax abatement. The Economic Development Council for Central Illinois (EDC) assists Peoria-area businesses in start-up, growth, or expansion.

State programs

In 1977 the Illinois legislature adopted the Tax Increment Allocation Redevelopment Act to provide municipalities with a unique tool to finance and stimulate urban redevelopment. Through the use of Tax Increment Financing (TIF), cities can stimulate private investment by offering incentives to attract and retain businesses, improve their community areas, and maintain a well-educated and highly trained labor force.

Illinois Governor Rod Blagojevich has implemented the Opportunity Returns regional economic development plan throughout the state of Illinois. The state has been divided into ten regions that have common economic strengths and needs; specific economic development plans are created for each region. Opportunity Returns is considered the most aggressive and comprehensive plan for job creation in Illinois history.

Job training programs

Job training is available through state agencies and educational institutions. The Workforce Network is a partnership between local and state workforce organizations that enables them to coordinate their services and offer them through a one-stop system. Their Career Resource Center offers job search, education, and career-training information in a user-friendly environment.

Development Projects

In 2005 Governor Blagojevich announced the Turner Center for Entrepreneurship at Bradley University would receive $250,000 in funding from the Illinois Department of Commerce and Economic Opportunity to further expand its programs. Such programs will include a financial award program of up to $5,000 designed to help small business owners and entrepreneurs obtain professional services for business plan assistance, evaluation of startup and expansion plans, and other approved support services.

Work began in 2002 on a $400 million interstate project that will result in the reconstruction of Interstate 74, which intersects Peoria. When completed the expanded roadway—one of the heaviest traveled sections of I-74—will provide easier access and have improved lighting and landscaping.

Economic Development Information: The Economic Development Council for Central Illinois, 124 SW Adams Street, Suite 300, Peoria, IL 61602-1388; telephone (309)676-7500; Illinois Department of Commerce and Community Affairs, 100 West Randolph Street, Suite 3-400, Chicago, IL 60601; telephone (312)814-7179

Commercial Shipping

With access to three interstate and four federal highways, metropolitan Peoria is linked to markets nationwide by 137 motor freight carriers, 99 of which maintain local terminals, and 13 railroads. Air cargo transfer facilities are available at Greater Peoria Regional Airport and two private airfields. Four barge lines transport more than 48 million tons during a year-round navigation season through the Peoria Lock and Dam, a major link from the Gulf of Mexico to the St. Lawrence Seaway. Peoria is a Foreign Trade Zone.

Labor Force and Employment Outlook

Peoria workers are recognized for their high productivity, which exceeds the state and national averages. More than half the work force is engaged in white-collar occupations in retail trade, professional services, and government; manufacturing accounts for a large portion of the work force. Nearly 70 percent of workers have at least a high school degree. Manufacturers and agribusinesses are said to have been successful in retraining and modernizing the work force through the strong training networks between the private and education sectors.

Chemical distillation of grain and corn, paper products and printed material, coal production, and automotive parts are gaining rapidly as major manufacturing areas. Peoria's has always been a strong retail market; further retail development in the downtown area and more strip malls are expected.

The following is a summary of data regarding the Peoria metropolitan area labor force, 2004 annual average.

Size of non-agricultural labor force: 174,700

Number of workers employed in . . .

construction and mining: 8,400

manufacturing: 28,200

trade, transportation and utilities: 33,100

information: 3,000

financial activities: 8,500

professional and business services: 17,200

educational and health services: 30,400

leisure and hospitality: 17,500

other services: 7,400

government: 21,000

Average hourly earnings of production workers employed in manufacturing: $17.88

Unemployment rate: 6.2% (February 2005)

Largest employers	Number of employees
Caterpillar, Inc.	17,847
St. Francis Medical Center	4,250
School District 150	2,847
Methodist Medical Center	2,600
Keystone Steel and Wire Company	1,675
AES Great Plains-CILCO	1,600
Bradley University	1,200
Komatsu America International	1,100

Cost of Living

The following is a summary of data regarding several key cost of living factors in the Peoria area.

2004 (3rd Quarter) ACCRA Average House Price: $280,500

2004 (3rd Quarter) ACCRA Cost of Living Index: 98.2 (U.S. average = 100.0)

State income tax rate: 3.0%

State sales tax rate: 6.25% (1% on food and drugs)

Local income tax rate: None

Local sales tax rate: 1.5% (2005)

Property tax rate: 7.9419% per $100 assessed valuation (2002)