WORK FORCE ANALYSIS
OF THE DECATUR-MACON COUNTY AREA

The Economic Development Corporation of Decatur and Macon County (EDC) and the Workforce Investment Board of Macon and Dewitt Counties (WIB) contracted with Carter & Burgess, in association with Nortillo and Associates, in the third quarter of 2006, to conduct a work force analysis which focused on general manufacturing and biotechnology/food processing. This analysis was done through face-to-face interviews with many of the major area employers in these sectors as well as education and training providers and other organizations which work with employment issues. Follow up interviews specifically dealing with the employment, training and availability of welders were conducted with several of the organizations involved in the first set of interviews.

Areas considered in the analysis included factors critical in hiring – labor availability, wages, fringe benefits, commuting distance, labor quality characteristics and skill assessment. A comparative analysis of wages in specific job classifications was done between Decatur and Cedar Rapids, Iowa; Dayton, Ohio; Fort Wayne, Indiana; Knoxville, Tennessee; and Rockford, Illinois; as well as between Decatur and the statewide averages of Illinois, Indiana, Kentucky, Missouri and the United States. The study also looked at quality of life factors critical in relocation considerations of personnel to the Decatur area and made comparative analysis of some of those with both national data as well as data from the cities used in the wage comparisons.

A key component of the analysis was the assessment of current area education programs being used to meet the needs of individuals either currently employed or seeking employment in the general manufacturing or biotechnology/food processing industry sectors. It should be noted that interviewee comments related to District 61 reflect perceptions regarding the District prior to 2006. Improvements in operations and performance standards since the arrival of the new administration are beginning to have the intended effect.

Employment/Occupation Trends

• The total Macon & DeWitt county labor pool in 2005 was 62,178, up from 61,290 in 2002. The unemployment rate has continued to improve during this time period from a high of 10.5 percent in 2002 to 6.0 percent in 2005. 2007 has shown continued job growth with the most recent (July 2007) rate of 6.0 percent.
• The Decatur area has a potential labor force of 96,368 within a 30-mile radius. Of this number, 50,053 are white collar workers, and 28,897 are blue collar workers.
• According to employer interviews, 81.25 percent of the current work force lives within 15 miles of Decatur.
• From 2000 to 2003, employment in the manufacturing sector showed modest gains while employment in the professional/scientific/technology sector increased by 34 percent and in the healthcare sector employment increased by 7.4 percent.
• Between 2002 and 2012, the largest projected occupation gains are for maintenance mechanics (21.3 percent) and welders (23.1 percent)
• The largest projected job losses between 2002 and 2012 are production laborer (10.4 percent decrease) and millwright (5.2 percent decrease).

• Generally, Decatur-Macon County area manufacturing wages are lower than the communities used as a comparison in this analysis.
• Decatur has the lowest welder, millwright, maintenance mechanic and machinist wages.
• Fort Wayne and Knoxville have lower assembler and pipefitter wages.

• Compared to state and U.S. average wages of general manufacturing occupations, Decatur has the lowest welder and millwright wages.
• In the food/biotechnology manufacturing sector, the comparison of Decatur’s wages to other similar communities vary by occupation.
• Decatur has the lowest machine operator wages.
• Only Knoxville has lower laborer wages.
• Decatur’s packaging operator wages are much higher than all other communities used in the comparison.
• Decatur’s forklift wages are higher than Cedar Rapids, Fort Wayne and Knoxville.
• Decatur’s food chemist and food engineer wages are higher than Fort Wayne and Knoxville.
  

• Decatur has the lowest laborer and machine operator wages compared to state averages used in the analysis as well as compared to the U.S. average.
• In the Decatur area the average value of fringe benefits of companies interviewed was 26.5 percent of wages. Common benefits provided include: health care for employees and family; flexible spending accounts; short and long term disability; life insurance; 401K retirement plan; tuition reimbursement; life insurance; and paid time off.
  

Labor Availability

• In all sectors and occupations, unskilled labor availability is good.
• It is often difficult to find skilled workers - millwrights, pipefitters, maintenance mechanics and welders. Employers are having to outsource work that could have been done in-house or decline work because of lack of available workers, particularly in these areas.
• Availability of engineers and chemists is above average although some employers are having a difficult time recruiting people to these positions.
  

Labor Quality

During interviews of area employers which were conducted for this analysis, the employer representatives were asked to measure several labor characteristics on a 10-point scale, with a 1 rating equating poor and 10 rating equating excellent. With the exception of basic skills which measure new applicants, all factors rate the companies’ existing work force. The results are as follows:

• Non-food Manufacturing
• Lack of Turnover 6.83
• Worker Absenteeism 5.75
• Worker Attitudes 7.58
• Worker Trainability 7.58
• Worker Basic Skills 5.00
• Worker Communications 7.25
• Lack of Alcohol/Drug Use 5.58
• Worker Productivity 8.08
  

• Food/Biotechnology Manufacturing
• Lack of Turnover 8.00
• Worker Absenteeism 8.33
• Worker Attitudes 7.33
• Worker Trainability 8.00
• Worker Basic Skills 5.33
• Worker Communications 8.00
• Lack of Alcohol/Drug Use 8.00
• Worker Productivity 9.33
  

• In general, there are concerns about the lack of sufficient basic skills – the understanding and ability to apply 8th grade level math, reading and comprehension skills – of new applicants.
  

Education/Training

• Richland Community College – 2-year community college which offers 23 technical courses, leading to a basic or advance manufacturing certificate. Richland has and will work with area businesses to develop customized training programs.
• Decatur Tech Academy – grant-supported vocational-technology program which includes Industrial Manufacturing Operations, Construction Skills Trades and Welding Program for Decatur high school juniors and seniors.
• Institute for Construction Education – non-profit organization which creates and promotes trades and management education programs and works to improve work place safety.
• Capital Area Career Center – vocational technology program for high school juniors and seniors in Sangamon County.
• Workforce Investment Board – help to support several industrial education programs
• Employers are generally pleased with the community college and vo-tech programs but would like to have all educational venues provide better basic and soft skills training. In addition, they would like to see more coordinated efforts between training providers.
• At the time of the survey, employers were extremely concerned with the quality of education being received at the Decatur Public Schools.
• There is a need for a closer connection between training providers and area businesses so that training appropriate to company needs can be provided.
  

Relocation/Quality of Life

• Decatur cost of living and housing costs are lower than three of the five comparison communities.
• Generally, employers are satisfied with the quality of life in the Decatur area. The only exception to this is the quality of the Decatur public schools.
  

Summary
The workforce analysis shows that the Decatur-Macon County area offers significant reasons for new employers to consider locating in the area and for existing employers to expand their current operations. The potential labor pool – employed as well as unemployed workers – has increased during the past three years. The area is showing modest gains in jobs in the manufacturing area and significant increases in employment opportunities in the professional and technical fields. The Decatur area has a mature workforce which is highly productive and trainable and which brings good attitudes into the workplace.

When looking at Decatur-Macon County’s wages compared to similar communities; Illinois and other state averages; and the national averages for positions found in the general manufacturing, as well as biotechnology/food processing industries, the wages offered in the Decatur area are extremely competitive; and, in fact, in many instances prove the area is the low-cost wage location. When comparing factors in Decatur-Macon County which may impact relocation decisions, the area once again generally has a lower cost of living and lower housing costs than many other similar communities in the United States.

The Metro Decatur Region also has challenges which will need to be considered and addressed by the community in order to continue to provide a productive workforce to the area’s employers both now and in the future. In the short term, the lack of basic skills of new employees and the need for all levels of education – from the Decatur Public School system to those in outlying areas of the county to vocational and community college institutions – to address this is a consistent concern among employers. There are many opportunities and levels of instruction which could be used to strengthen math, reading and communication skills of these potential employees before they enter the workforce. Another area of critical interest is providing training opportunities for individuals interested in the fields of welding and maintenance mechanics – positions which employers need to fill now.

Long term, the Decatur area has a mature workforce which, because of retirement, will largely need to be replaced in the next 5 to 10 years. There is an opportunity for area educational institutions, employers, labor organizations and others to work together to identify skills which will be needed in the workplace and to create instructional programs to better prepare individuals in these areas.

All-in-all, the Decatur - Macon County area is well positioned to provide the opportunity for our communities, businesses and labor to continue to capitalize on the productive and talented workforce it has today and work together to provide the foundation necessary to continue this growth well into the future.