Could Peoria Lose its Komatsu Plant to Milwaukee?
An article appearing in Wednesday's Milwaukee Journal-Sentinel online includes an ominous possibility, not for now, but possibly the near future.
First some background. Komatsu acquired Joy Global on April 5, 2017. Renamed Komatsu Mining Systems, its West Milwaukee, Wisconsin plant manufactures mining shovels and various components (including gears). At the time, demand for mining equipment had been depressed for several years, and many workers were on layoff. Recently, Komatsu announced that it would move work to West Milwaukee from China.
Now comes the announcement that Komatsu is developing a new manufacturing plant in the Milwaukee Harbor area, immediate west of Jones Island. After clearing and environmental cleanup, the site will be ready for development sometime in 2019.
The new site, which is expected to replace some or all of existing West Milwaukee plant operations, will significantly improve outbound logistics. At present, large components moving to the harbor a trucked via a circuitous routing to reach the harbor, where they're loaded onto lake freighters. A new site adjacent to the harbor will eliminate this bottleneck.
It should be noted that the West Milwaukee plant also sits near Miller Park, home of the Milwaukee Brewers baseball team. So once it is replaced by new facilities, the old site could be sold for a considerable sum for commercial redevelopment.
The portion of the article which caught my attention was this
The new site, which is expected to replace some or all of existing West Milwaukee plant operations, will significantly improve outbound logistics. At present, large components moving to the harbor a trucked via a circuitous routing to reach the harbor, where they're loaded onto lake freighters. A new site adjacent to the harbor will eliminate this bottleneck.
It should be noted that the West Milwaukee plant also sits near Miller Park, home of the Milwaukee Brewers baseball team. So once it is replaced by new facilities, the old site could be sold for a considerable sum for commercial redevelopment.
The portion of the article which caught my attention was this
Komatsu, which bought Joy Global Inc. in 2017, could relocate other operations from outside Wisconsin to the former Solvay site.
Komatsu's Peoria plant comes to mind. Large, off-highway mining trucks are made here. Most chasses are shipped by rail to ports on the East Coast, Gulf Coast and West Coast for export. This operation could some day be consolidated with the new Milwaukee operation.
I hope I'm wrong, but it may well happen. Illinois is becoming increasingly hostile to business while neighboring states, such as Wisconsin, have become more business-friendly. Case in point: when pressured to deal with the state's budget problems, politicians are more likely to propose tax increases rather than fiscal restraint.
It wasn't always this way. Many older folks will remember that for a generation following the Second World War, Illinois held its own on industrial development. A large population, transportation infrastructure and central location attracted a lot of factories. Many poor decisions by Illinois government since the 1970s, however, have significantly increased the cost of doing business, and has largely deterred large-scale industrial development.
Let's hope something changes soon, or more losses of factories and jobs are inevitable.
I hope I'm wrong, but it may well happen. Illinois is becoming increasingly hostile to business while neighboring states, such as Wisconsin, have become more business-friendly. Case in point: when pressured to deal with the state's budget problems, politicians are more likely to propose tax increases rather than fiscal restraint.
It wasn't always this way. Many older folks will remember that for a generation following the Second World War, Illinois held its own on industrial development. A large population, transportation infrastructure and central location attracted a lot of factories. Many poor decisions by Illinois government since the 1970s, however, have significantly increased the cost of doing business, and has largely deterred large-scale industrial development.
Let's hope something changes soon, or more losses of factories and jobs are inevitable.
- David P. Jordan
As long they keep the engineering department in Peoria. I have a son-in-law that is in that department. Yes, I also hope that they keep the factory in Peoria.
ReplyDeleteSad what’s become of Illinois
ReplyDeleteI hope I'm wrong but that "outside Wisconsin" part just drips "Peoria."
Delete