Investments in the manufacturing workforce are key to Illinois’ economic competitiveness
As artificial intelligence, automation, and new energy sources reshape our economy, Illinois’ manufacturing sector must also evolve.
Illinois has the third-largest manufacturing sector in the United States, behind only California and Texas. Our manufacturing sector annually contributes more than $130 billion to the economy. That’s more than all the private and public sector activity in 12 U.S. states, and as large as Idaho’s entire economy.
But while manufacturing is a driver of Illinois’ economic strength, the sector has faced a shortage of sufficiently skilled workers.
At a time when a large number of workers are retiring and the sector has become responsible for reshoring production at home, the ability to access new pools of candidates and train the highly specialized workforce needed for today’s manufacturing careers is critical.
Researchers have found that some workforce development programs can be “low-efficacy” and wasteful. Many provide training that is not applicable to in-demand jobs in local labor markets. However, certain workforce development programs in manufacturing, construction, and health care have been notable exceptions.
For instance, Illinois’ construction preapprenticeship programs based at community colleges and nonprofit organizations have worked as intended, transforming lives and creating stable skilled labor pipelines. A recent study by the Illinois Economic Policy Institute and the Project for Middle Class Renewal at the University of Illinois revealed that preapprenticeship programs are training thousands of participants, delivering new pathways into registered apprenticeship programs and other middle-class career opportunities, and generating a 900% return on investment over 10 years — unmatched by other workforce development initiatives.
The story is no different in the manufacturing trades.
The most successful workforce development programs convene groups of manufacturing employers together to define shared needs and then customize training opportunities based on the capabilities of the local labor force. Community colleges are often effective intermediaries, serving as regional hubs that deliver hands-on technical training to develop skilled workers who are able to apply high-level science and engineering techniques without bachelor’s degrees. Research shows these manufacturing programs also have high returns on investment.
Richland Community College in Decatur is a case in point. The college delivers training programs for various clean energy pathways, such as solar installers and home energy auditors, and it also offers Industrial Job Skills Training. This 13-week program has rigorous modules in industrial skills, CNC machining, welding, and machine operation. These skills are useful for partner employers such as ADM and Caterpillar but are transferable to wind turbine manufacturing, automotive or even construction jobs.
The Jane Addams Resource Corporation in Chicago is another example, offering 10- to 20-week programs in mechanical assembly, welding, 3D printing, and CNC machining. Graduates average starting wages between $20 and $30 per hour, and many double their previous salaries in the first year.
Sadly, recent federal policy decisions have caused the manufacturing employment outlook to take a turn for the worse over recent months. First, haphazard tariffs have increased input costs, shrunk overseas markets, and caused manufacturing jobs to decline every month since April 2025. Second, the loss of Inflation Reduction Act and CHIPS funding due to the “One Big Beautiful Bill Act” is reducing investment in many advanced manufacturing facilities that would otherwise have created thousands of quality jobs.
But while the federal government is turning away from the industries of the future, Illinois is focusing on them. Lawmakers recently enacted the Advancing Innovative Manufacturing (AIM) tax credit to attract companies that invest $10 million or more in the state. Illinois also is investing $24 million in grant funding to establish six new Manufacturing Training Academies at community colleges.
Ultimately, the data argues for doing more in this space. Manufacturing training programs are a good investment because they develop skilled labor supply pools for in-demand careers at little to no cost to participants, while helping to ensure that the industry remains competitive, innovative, and resilient in the months and years ahead.
• Frank Manzo IV is an economist at the nonpartisan Illinois Economic Policy Institute.