Springfield,

Major Industries and Commercial Activity

Springfield's diversified economic base is balanced between the public and private sectors; government, services, and retail trade are the principal industries. A central location and a highly developed transportation and communications network contribute to the city's position as a center of business and professional activity, particularly health care and finance. Springfield is also the headquarters of 12 national insurance companies and more than 165 state, regional, and national associations. Manufacturing firms in Sangamon County produce goods for national distribution and international export.

Items and goods produced: tractors, electric meters, radio parts, flour, cereal products, automatic coffee makers, mattresses, plastic pipe, farm implements, livestock and poultry feeds, yeast, power plant boiler installations, printed circuits, steel storage tanks

Incentive Programs—New and Existing Companies

Local programs

The city of Springfield runs two loan programs to aid financing for the small business community. For businesses with less than five persons, the Microenterprise Loan Program offers loans between $1,000 and $10,000 for equipment, furniture, fixtures, and working capital, with interest below the market rate. Accounting assistance is also provided. The Business Loan Program provides funding up to $50,000 for non-manufacturing businesses and up to $100,000 for manufacturing businesses. The loans are granted based on job creation and gap financing.

The Springfield Enterprise Zone encourages job creation and capital investment in areas of economic distress and promotes neighborhood revitalization in targeted areas. Companies can take advantage of property tax abatements and a sales tax exemption on all building materials purchased within the state of Illinois.

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. Currently, Springfield has four TIF districts. The Illinois Department of Commerce and Economic Opportunity offers financial and technical assistance to qualified businesses wishing to locate or expand in Illinois.

Job training programs

The Capital City Center, a partnership between Lincoln Land Community College, Central Management Services, and the University of Illinois at Springfield, provides technology training to interested businesses through scheduled courses and customized training programs.

Development Projects

Springfield has recently undergone a spurt of intense economic development, with many companies and organizations building in or relocating to the area. In 2004 Wells Fargo Home Mortgage opened a new, $41 million, 185,000-square-foot facility, giving the company the capacity to accommodate 750 employees. Later that year a new, 43,000 square foot Illinois Supreme Court Building opened. In 2005 the Illinois Air National Guard received $10 million in federal funding for the construction of a new facility to be located at Springfield Capital Airport. The new facility will have more than 45,000 square feet of space to be used as a dining area, medical clinic, and administrative offices.

In 2005 Springfield opened the Abraham Lincoln Presidential Library and Museum, an event that drew local and national media attention. The 160,000-square-foot, $115 million library and museum serve as the center for research and study of the life and times of Abraham Lincoln and the American Civil War. It is the nation's largest presidential library.

Economic Development Information: City of Springfield Office of Planning and Economic Development, 231 S. 6th St., Springfield, IL 62701; telephone (217)789-2377. Illinois Department of Commerce and Economic Opportunity, 620 E. Adams, Springfield, IL 62701; telephone (217)782-7500

Commercial Shipping

A transportation hub for markets throughout the United States, the Springfield metropolitan area is served by 35 intrastate and 75 interstate motor freight carriers. Forty-one truck terminals are located in the community. Springfield/Sangamon County is linked with major national rail networks via five railroads, two of which operate facilities in the city, and a local rail company that maintains a switch-yard. Capital Airport provides daily commercial flights, as well as complete charter, aircraft repair and maintenance, and fuel services.

Labor Force and Employment Outlook

The Springfield-Sangamon County labor force is one of the largest in central Illinois, with the highest commuting-in rate of any central Illinois community. The labor pool in the Springfield area is extensive and includes unemployed, under-employed, and re-entering retirees, representing a potential available workforce of 228,057 individuals in the Springfield area. Of that number, 31 percent have experience in computers and/or electronics, 37.4 percent in health care or medical devices, 21.5 percent in manufacturing, and 20 percent in agriculture and agribusiness. Sixty-eight percent of the city's underemployed have attended college, and 52 percent are between the ages of 20 and 39. Seventy percent have indicated interest in additional training.

In an audit conducted by The Center for Governmental Studies at Northern Illinois University, researchers found that the overall labor quality in Springfield is considered among the best in the nation by local employers. Employers rated employees good or very good on job performance as it relates to trainability, basic skills, productivity, and attitudes. Employees also showed low rates of turnover and absenteeism.

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

Size of nonagricultural labor force: 110,200

Number of workers employed in . . . construction and mining: 5,100

manufacturing: 3,400

trade, transportation and utilities: 17,900

information: 3,100

financial activities: 7,500

professional and business services: 10,500

educational and health services: 16,200

leisure and hospitality: 10,200

other services: 6,400

government: 29,900

Average hourly earnings of production workers in manufacturing: $15.61 (statewide average)

Unemployment rate: 5.1% (March 2005)

Cost of Living

With a cost of living level below the national average, Springfield residents are reported to have higher disposable income for recreation, savings, and other discretionary expenditures.

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

2004 (3rd Quarter) ACCRA Cost of Living Index: 91.0 (U.S. average = 100.0)

2004 (3rd Quarter) ACCRA Average House Price: $227,414

State income tax rate: 3.0%

State sales tax rate: 5.0%

Local income tax rate: None

Local sales tax rate: 2.5% (plus a county tax of 0.25%)

Property tax rate: 7.87% (valuation is 33.3% of real property)

Economic Information: Greater Springfield Chamber of Commerce, 3 S. Old State Capitol Plaza, Springfield, IL 62701; telephone (217)525-1173