Racine: Economy
Major Industries and Commercial Activity
The recent history of the city of Racine is a story of downtown revitalization. During the 1980s Racine County lost an average of 1,000 jobs per year and many downtown retailers closed or moved to new outlying malls or elsewhere. A group of local business leaders marshaled private, county, and city support in their efforts to turn a declining downtown area with a failing commercial harbor into a vital, attractive harbor complex that would attract tourism and convention activity. The project includes a 110-acre 921-slip luxury harbor/marina; a 16-acre county park; and a 6-acre city-owned festival park that contains both indoor and outdoor facilities designed for year-round use. The city, county, and private sector have pumped more than $25 million into the projects. By the early 1990s, 50 new retailers had moved to the central city and more than 100,000 square feet of first-class office space was added to the downtown. In addition, the revitalized lakefront has spurred more than $30 million in private investment, including a 76-unit lakefront condominium.
Racine's small-business, industrial base is an important part of the region's economy. There are more than 300 established manufacturing firms across Racine County, employing 25,000 people; a number of the firms are based in the city of Racine. The 10 largest manufacturers employ about 60 percent of the workers, with the remaining 40 percent working for small companies. Racine is world headquarters of S.C. Johnson Wax, one of the world's leading manufacturers of chemical specialty products for home care, insect control, and personal care. One of the largest privately-held family controlled businesses in the United States, it is the city's major employer. Another important local firm is In-Sink-Erator, the world's largest manufacturer of food waste disposers and hot water dispensers. The first food disposer was created in 1927 in Racine by John W. Hammes, founder of the company that began operations in 1937. Today the company also markets water heaters, dishwashers, and trash compactors.
In 1842 Jerome Increase Case began a threshing machine works in Racine, and today CNH (formerly J.I. Case) is known worldwide for its quality agricultural and construction equipment. With origins in the city dating back more than 40 years, Master Appliance Corporation has become one of the world's leading designers, manufacturers and marketers of heat tools for industry. Golden Books (formerly Western Publishing Company), the nation's largest publisher and producer of children's storybooks, was founded in Racine in 1907 as a small printing company. The company is also a major producer of puzzles and youth electronic books and products, and ranks among the largest commercial printers in the United States. Founded in Racine more than 70 years ago, Jacobsen, a Textron company, has built a worldwide reputation for delivering the finest in turf maintenance equipment, from precision greenmowers to giant 16-foot rotary mowers.
Items and goods produced: paper products, electric and electronic products, rubber and plastic products, fabricated metal products, wood products, apparel, transportation equipment, printing and publishing
Incentive Programs—New and Existing Companies
Local programs
The Racine County Economic Development Corporation (RCEDC) offers a number of different loans for purposes such as purchase of land, buildings, machinery and equipment, new construction or relocation, working capital, inventory, and fixed assets; some are specific to companies in Racine county, others to companies in the city of Racine. With the Racine Development Group loan fund, businesses and developers that are interested in working in low or moderate income Racine neighborhoods are eligible to apply. Other RCEDC loans benefit businesses that are women- or minority-owned. The Racine Area Manufacturers and Commerce (RAMAC) organizes a number of projects and programs to assist area businesses. RAMAC's Golden Key Awards recognize outstanding businesses in the Racine area; the Business After 5 program offers local networking opportunities; RAMAC's Speakers Bureau provides knowledgeable speakers on a variety of subjects; and the International Outreach Office assists local businesses in accessing world markets.
State programs
Wisconsin's Department of Commerce was created in 1996; it offers a variety of loan and grant programs for both businesses and communities. The depart-ment's Disadvantaged Business Enterprise Program was created to increase participation of firms owned by disadvantaged individuals in all federal aid and state transportation facility contracts. The department's Minority Business Development loan program provides financial assistance for the creation and expansion of minority-owned businesses in Wisconsin through low interest loans. The Employee Ownership Assistance Loan Program helps groups of employees purchase businesses that would otherwise close by providing individual awards up to $15,000 for feasibility studies or professional assistance. The state of Wisconsin extends tax exemptions for manufacturing machinery and equipment, inventories, and pollution control equipment; tax credits for research and development and energy conservation; and a 60 percent exclusion of state capital gains held for twelve months. The state provides labor training, infrastructure, asset-based lending, and high-technology awards.
Job training programs
Gateway Technical College, in addition to offering both associate and technical degrees in 77 different fields, can create customized training programs offered either on campus or at employer sites. The school also provides one-on-one technical assistance in areas such as production and marketing. Gateway's staff consults with local businesses to determine employee retraining needs, and can also give technical assistance to those companies seeking to develop grants for other local, state, or federal training programs. The Wisconsin Department of Development offers Customized Labor Training grants for training or retraining of in-state workers, providing an economic contribution to the area. Through the Job Training Partnership Act, the Southeastern Wisconsin Private Industry Council provides trained employees and customized training to unskilled adults and youths for entry into the labor force and offers on-the-job training with 50 percent wage reimbursement offered to employers along with summer youth programs.
Development Projects
In 2004, the city of Racine was awarded $550,000 from the Wisconsin Department of Commerce to clean up a contaminated brownfield site and develop an industrial park, where up to 200 people would be employed. Plans continue to move forward with the Kenosha-Racine-Milwaukee (KRM) commuter rail Metra extension. Wisconsin government and business community officials plan to advance development plans that would add a 33-mile extension of the Chicago Metra service that currently ends in Kenosha. The expansion would use existing upgraded rail right-of-way, and provide seven round-trip trains per day between Chicago and Milwaukee, with stops planned in Milwaukee, Cudahy-St. Francis, South Milwaukee, Oak Creek, Caledonia, Racine, and Somers.
Economic Development Information: Racine County Economic Development Corporation, 2320 Renaissance Blvd., Sturtevant, WI 53177; telephone (262)898-7400; email rcedc@racinecountyedc.org
Commercial Shipping
Rail freight service is provided by the Union Pacific Railroad, the Wisconsin Central Ltd., and the CP Rail System. There are 95 widely distributed trucking and warehousing establishments in Racine County; the area has direct access to Interstate Highway 94 via state trunk highways. The city is located 30 miles south of the Port of Milwaukee, which provides Great Lakes Seaway access and a Foreign Trade Zone. Three Racine County aviation facilities accommodate all business aircraft, with Chicago's O'Hare International Airport and Milwaukee's Mitchell International Airport both less than 60 miles away.
Labor Force and Employment Outlook
The Racine County labor force is just under 100,000 people; together with the labor force from surrounding communities, Racine has an abundant supply of workers. In Wisconsin, absenteeism is below the national average, and the state has the lowest national percentage of employees who leave jobs because they choose to. Wisconsin's labor hours lost due to work stoppages were only one-fifth that of the nation, which contributed to businesses' increased productivity and reduced manufacturing costs.
Industry Week Magazine named the Racine metropolitan area one of 50 world class manufacturing centers in 2000, indicating the strength of the city's manufacturing sector.
The following is a summary of data regarding the Racine metropolitan area labor force, 2004 annual averages.
Size of non-agricultural labor force: 79,600
Number of workers employed in . . .
construction and mining: 4,000
manufacturing: 19,000
trade, transportation, and utilities: 15,200
information: 600
financial activities: 2,600
professional and business services: 6,400
educational and health services: 10,400
leisure and hospitality: 6,600
other services: 4,700
government: 10,200
Average hourly earnings of production workers employed in manufacturing: $16.19 (statewide)
Unemployment rate: 6.6% (March 2005)
| Largest employers (Racine County) | Number of employees |
| All Saints Medical Center Inc. | (No figures available) |
| Racine Unified School District | |
| S.C. Johnson and Son, Inc. |
| CNH America LLC | (No figures available) |
| County of Racine | |
| City of Racine | |
| Emerson Electric Co. | |
| Wal-Mart Associates, Inc. | |
| Adecco USA Inc. | |
| Department of Corrections | |
| Modine Manufacturing Co. | |
| JohnsonDiversey Inc. | |
| Department of Health and Family | |
| Bombardier Motor Corp. | |
| Aurora Health Care of Southern Lake |
Cost of Living
The following is a summary of data regarding several key cost of living factors in the Racine area.
2004 ACCRA Average House Price: Not reported
2004 ACCRA Cost of Living Index: Not reported
State income tax rate: Ranges from 4.6% to 6.75% (tax year 2004)
State sales tax rate: 5.0%
Local income tax rate: None
Local sales tax rate: 0.1%
Property tax rate: $27.97 per $1,000 of equalized valuation
Economic Information: Wisconsin Department of Commerce, 201 W. Washington Ave., Madison, WI 53708; telephone (608)266-1018