These are good times for Gordy Kacala, executive director of RCEDC.
He has secrets to keep.
After almost three decades working to enhance the economic development of Racine County, Kacala is busy bringing together developers, communities and landowners – all (hopefully!) to provide tax base, jobs and services for county residents.
How many secrets is Kacala holding close right now? More than 1.5 million of them -- if each square foot of soon-to-be-announced construction is counted as a secret.
Kacala really wants to take me into his confidence; he gives hints, lets me guess wrong once or twice, helps me narrow it down. Then, when I finally come up with the right company behind an upcoming project, he swears me to secrecy, alas.
In the past month, three large projects have been announced: a 380,000 sq. ft. warehouse in Sturtevant, and two warehouses totalling 420,000 sq. ft. in Mount Pleasant.
These, encompassing 126 acres, are just the tip of the iceberg. There are approximately 900 acres of business-industrial potential just in the narrow corridor between Highways 11 and 20, and I-94 and Hwy. V.
The 900-acre figure is significant in light of a 2005 SEWRPC study which examined all developable land in existing industrial/business parks in Racine County. The study concluded that less than 500 available acres met seven key criteria (streets, sewers, buildable, etc.) in the entire county.
Expect a major announcement from that other end of the county soon. (Hint: “Burlington is our hottest community.”)
Which still leaves more than 1 million square-feet of development in Kacala's pipeline.
“I'm surprised by the size; they're huge,” Kacala says. “We're back to large facilities. Companies are centralizing their regional focus.”
But why should we care about warehouses when it's really manufacturing jobs we want and need?
Kacala lets me know, in no uncertain terms. (He tells me the same question was asked by a certain reporter I consider dumber than a rock. I am mortified.)
“Warehouse-distribution centers are good for three reasons: They bring tax base; given our location they're an understandable use; and, finally, because of changes in manufacturing and out-sourcing, this is the way business is done today.”
Get the warehouse, and it “solidifies” a company's presence. “Warehousing and manufacturing go together,” he says.
Furthermore, “If people see things happening, it will change perceptions,” he says. “We've got to change the minds of people who live here first.”
There's another, less-benign reason why we should be glad developers are building distribution warehouses here: Our existing labor force isn't ready for manufacturing jobs.
Yes, the city of Racine has an 8.6% unemployment rate (the rest of the county is about half that). But Kacala cites the 2000 Census, which showed that 42% of males age 18-24 don't have a high school education. A sobering statistic.
That was six years ago; Kacala estimates the figure might hold true today for 18-28-year-olds, or 18-30's. Two local companies, he says, “bought robots because they can't find trained people.”
“We're competing with China,” he says.
Pointing to the small amount of newly available industrial land within the city, the former Jacobsen-Textron site, Kacala says: “It's not the availability of land that's the problem, it's the labor force.” He's had to deliver that unhappy message to a number of inner-city organizations seeking jobs for their constituents. Education is the key.
The development is coming; if we don't improve our own labor force, Kacala says, more than a million workers live in the I-94 corridor, from Lake County to Milwaukee; “relatively good commuting distance.”
Development will provide a range of jobs. Yes, warehouse jobs are at the lower end, but it's all we can now fill.
“If we get the businesses here, and unemployment is still 10%, then we've (failed) big-time.”
Today, “every location within a softball throw of Milwaukee is developed.”
Kacala says he receives one or two development inquiries a week, and 10-15% of those turn out to become projects we have a shot at. “Fifty-two a year; if you get 10 of those, that's pretty substantial.”
For now, Racine County is in the catbird seat.
That was six years ago; Kacala estimates the figure might hold true today for 18-28-year-olds, or 18-30's. Two local companies, he says, “bought robots because they can't find trained people.”
ReplyDelete“We're competing with China,” he says.
Sir you are wrong RUSD is failing Racine.
As is RAMAC for walking lock step with RUSD/J WAX
Your group is the only one doing anything. But my question is is the copmany that did your web page from Racine? If not why not?