By: Ted Dabrowski and John Klingner
Talk about shooting yourself in the foot. Illinois lawmakers’ triumph with the “Workers’ Rights” amendment may very well condemn Gov. J.B. Pritzker and the General Assembly’s commitment to make Illinois “one of the leading EV hubs in the entire nation.” The constitutional amendment, which grants massive collective bargaining rights to Illinois labor, also blocks in perpetuity Right To Work (RTW) in the private sector. That doesn’t bode well for manufacturing in Illinois and EV industries in particular.
A review of the data below shows that the EV revolution is largely happening in Right-To-Work states – and that Illinois is already losing big. Crain’s recently reported that Illinois is zero for 18 in its attempts to attract EV battery factories. That’s not to say that a lack of RTW is the only factor hurting Illinois’ chances – businesses have long complained “about [Illinois’] tax rates, workers’ compensation system, precarious state finances and the drawn-out process of getting permits for new factories,” after all, but the correlation sure looks clear.
Let’s start with a graphic that shows the location of “industries of the future” including battery factories, EV plants, semiconductor plants, and more that have responded to Pres. Biden’s federal “green investments.” Illinois comes up empty.
Instead, massive battery and auto investments are concentrated in states that are almost entirely RTW, from Michigan down to Texas and then on over throughout the Southeast, as well as in several of the western states.
You can’t help but see the overlap with the RTW graphic below.
For another cut on where EV investment is taking place, take a look at the list of the 15 largest announced EV manufacturing facilities as of June 2022, according to The Atlas Public Policy Group. Illinois, despite Gov. Pritzker and lawmakers’ green devotion, again comes up empty.
Georgia is getting a Hyundai investment of nearly $5.6 billion and 8,100 jobs. Kentucky has won a $5.8 billion, 5,000-worker battery factory from Ford. And the same car maker will also build a $5.6 billion, 6,000 employee EV car plant in Tennessee.
A couple of those investments represent a blow to Illinois. Georgia is the recipient of a $5 billion, 7,500-employee investment from Illinois-based Rivian. And Stellantis, which has indefinitely idled a 1,350-employee Jeep Cherokee factory in Illinois, is investing in a $2.5 billion battery plant in neighboring Indiana.
Overall, Illinois has missed out on a lot of investment and jobs, as a recent WSJ article notes: “Through November, about $33 billion in new auto-factory investment has been pledged in the U.S., including money for the construction of new assembly plants and battery-making facilities, according to the Center for Automotive Research, a nonprofit organization based in Michigan.” That’s on top of $37 billion invested nationwide that Illinois failed to attract last year.
Illinois’ green failure
The WSJ article says that “The U.S. auto industry is entering one of its biggest factory-building booms in years, a surge of spending largely driven by the shift to electric vehicles and new federal subsidies aimed at boosting U.S. battery manufacturing.”
With Right-To-Work dead in Illinois, it’s hard to see how Illinois can play catch up. It’s a consequence of big-government, big-labor politics. Pritzker and other political leaders can push for Illinois to be either the nation’s extreme pro-union state or a leader in EV manufacturing…but not both.
But expect the governor to offer billions more in taxpayer subsidies – on top of the billions he’s already promised – in a futile effort to try.
Read more from Wirepoints:
- Belvidere auto plant closing looks like another blow to Illinois ‘reimagining electric vehicles’ industrial policy
- Electric Vehicle Makers ask Pritzker To Outlaw Their Competition
- Rivian stock price collapse, potential brownouts, highlight the danger of Illinois lawmakers picking winners and losers.
- The special interest smorgasbord inside Illinois lawmakers’ 800-page-plus green energy behemoth
Audio and summary 
If this bill passes, say goodbye to local control over all Illinois parks and expect to see open drug and alcohol use, needles, no sanitation and fire hazards, but no ordinary park users.
We aren’t just losing EV jobs because of the taxes, unions and crime in this state. We are losing every manufacturing job we have. The only new thing that is built anymore is medical facilities that don’t pay taxes. Hmmmm – maybe the governor has some kind of tie to pharma firms?
How can you lose something you never had? Illinois willingly exports jobs. Here, it’s now impossible to make money in Il Perfect!
https://www.cnbc.com/2023/01/05/map-which-states-will-build-the-most-ev-batteries-in-2030.html
Where are the elected republicans speaking out against this craziness. SILENCE !!!! I’m going to admit, I trusted my elected officials to speak in favor of good, that’s not the case.
Most IL Republicans are just Democrats with an R next to their name
No chance in hell that Illinois will be a hub of anything. They say one thing but actually do another. All government has done is make it difficult to do business in the state. They actually encourage businesses to close and move elsewhere, even though they say they do not. Nothing but lies coming from a Fat A$$ Governor.
Ouch, poor jb—-here Stellantis signing deal to build flying EV taxis in Georgia. https://www.wsj.com/articles/jeep-maker-stellantis-to-build-flying-taxis-with-archer-aviation-11672849851?st=syp9g0x6hye9kjz&reflink=article_email_share
While they close their largest auto manufacturing plant in Belvidere IL.
You could substitute Pa for Illinois.
Ted
I believe you are correct. Business leaders may love the short term monetary incentives that Pritzker is desperately offering but they are probably not naive enough to become entrapped in a State that will slowly fleece them of management control over their labor force. Their operating costs will most assuredly exceed multiple times the State incentives used to lure them into a very expensive trap that they will be paying for for years.
Democrats have shot themselves in the foot so many times I’m surprised they have any toes left. That fact doesn’t really matter as the voters who elect these incompetent bafoons will still pull that “D” lever no matter how bad things get.
Ted, be specific. Tell the people of Illinois which Republican legislator and which Senator voted to put Amendment 1 on the ballot in fall of 2022. Tell them. Please tell them. Then, tell them how much money each elected leader received from PAC’s and those Unions.
Of course, why would any company walk right into the spinning airplane propeller of a rabidly entitled set of labor union laws. Same goes for whoever gets the casino, that company better be ready to hand over control to the SEIU as every maid, waitress, bartender, dealer and janitor will be rabidly unionized. They’ll have to dial in some pretty bad winning odds on their slot machines to cover it. If you want more of something tax and regulate it less, if you want less of something just regulate it out of business before it even gets started. Pritzker is… Read more »
Forethought about ramifications is not the Democrats strong suit.
Yep, right up there with cause and effect or a consequence being preceeded by an action.
When employees in the government sector are paid MORE than the comparable private sector, the economy will suffer downwards
Whoever voted the -1 comment, defend your vote.
Have to throw the red BS flag on the Biden WH graphic – they had nothing to do with the new US Steel operation in Arkansas.
GM turned down assorted offers of freebies offered by Illinois back in the Saturn startup years because, quite simply, Illinois had the highest workman’s compensation insurance rates in the nation. So it’s not just right to work there are other issues too. Thank your local Democrats for it as they caused it
Correct. Worker’s compensation insurance in Illinois has driven companies out to Indiana and other states.
Here’s Pritzker’s next campaign poster
https://www.chisholm-poster.com/large/CL50915.jpg
Actually he looks a school age Joe Biden
Unions with their shrinking membership have become desperate. What they cannot achieve themselves they have decided to leverage their political clouts to get. IL is a perfect example. Tesla workers make more than UAW wages & benefits but since they don’t pay into the UAW’s coffers, they cannot be allowed to continue. You only have to watch how the Biden WH consistently ignores the biggest & most successful EV maker in the world to push legacy automakers who are full of UAW contracts. Tesla takes 10 hours to build a vehicle, VW takes at least 30. The other legacy automakers… Read more »
Everyone broke is the end game.
“You will own nothing and be happy”. WEF
I don’t think you will hear this in J.B.’s upcoming Inauguration speech. He and his fellow Democrats (and some Republicans) have driven manufacturing out of Illinois. Another faux pas and huge loss for Illinois workers. I’ve heard a lot of complaints from people, yet people keep voting them back into office.
As Illinois shifts private business to more hop-head shops, section 8 housing, and casino’s for revenue, look for taxes to keep increasing on stalwart private businesses that employ significant numbers – they to will downsize IL operations and eventually leave this state.
EV isn’t the future for Illinois. Who needs that? It’s cannabis!!! There are scores of conferences this year in Chicago. The Illinois Cannabis Convention, Illinois Women in Cannabis Conference, Cannabis Industry Conference (sponsored by Illinois CPAs, not kidding), National Cannabis Summit, The Cannabis Drinks Expo and more! It’s Illinois’ future fer sure, dude!
Lol. Almost funny. Oklahoma owns the cannabis market. Check out the Cowboy Cup. 12 x cheaper in OK. Yes, 12 times
Great article Ted & John. A couple other points: 1.) According to yesterdays Crains articale JB & UAW are pretty desperate to revive Stellantis EV deal and JB wants his $1 Billion “closing deal fund” passes ASAP/ real bad in Springfield. Since Illinois Amendment 1 was in reallity supposed to searve as a national labor union model and was backed by dems and big labor nationally it’s going to look really bad for jb, UAW, Biden Admin if all the EV plants are going to RTW states with rep governors. 2.) Next question to ask, are all these new plants… Read more »
Yes, the only way you can get anything built in Illinois is to pay a huge government bribe to that company to come here. Any CEO who would build a major plant in Illinois while Amendment 1 is still in our constitution will likely get sued by their shareholders. Better repeal it pretty quick JB and Chris.
The WRA creates uncertainty > Uncertainty is a business risk > Business tends to be risk averse, especially in matters of facilities and labor management
Big Labor is going to have a hard time convincing Big Business the WRA is a value add to their operations.
You have to try to understand the union bosses mindset = losing jobs isn’t a concern for them. As we just saw with the private union $40B pension bailout from Biden and establishment Republicans, with no reforms, it’s about Democrats and $$$ for the bosses.
Soon every public company will move out of IL. Worth more in another state.
Great job Wirepoints in connecting the dots. The residents of Illinois need to see how Illinois is being bypassed by most of the nation.