MIDDLE MARKET HIGHLIGHT, AUGUST 2007

Racine, Wisconsin
Dan Marcec

Currently, the city and county of Racine are experiencing low availability, and developers are planning new speculative projects to meet the demand stemming from the lack of commercial space. Situated at the heart of the Interstate 94 corridor between Chicago and Milwaukee, Racine was traditionally considered as a “tweener” market, not able to attract business because of its distance from both cities. However, this is now changing.

“Given our location at the heart of this corridor, we’re finding that companies are interested in having equal access to both major markets,” says Gordy Kacala, executive director of the Racine Economic Development Corporation (EDC). “Another reason we’re now on the radar is that we’ve made significant infrastructure improvements throughout the county. For example, last year we completed utilities along Highway 20, our major state highway; in addition, two of our communities changed status from ‘towns’ to ‘villages,’ we’ve added TIF districts, and created strategic planning processes for the I-94 corridor and its environs.”

The local business climate includes a significant manufacturing component. Major economic drivers in Racine and Racine County include manufacturing for the agriculture, construction and mining industries; machinery manufacturing; navigational, measuring, electromedical and control instruments manufacturing; engine, turbine and power transmission; and equipment manufacturing.

In the professional services sector, dominating industries include computer systems design and related services; specialized design services; scientific research and development services; and other professional, scientific and technical services.

“In terms of attraction, we’re trying to get the word out, and visit with as many development people as possible about the availabilities in our area,” Kacala says.

“We also target overseas companies,” he continues. “A number of businesses have moved here from overseas unsolicited, and as a result, we’ve developed a good relationship with Germany, France and Sweden, so we focus efforts on continuing to attract that business.”

To aid in recruiting businesses, the EDC recently developed DRIVE, which stands for Developing Racine County through Innovation, Vision and Entrepreneurship. By conducting an analysis of the immediate three-county area (Racine, Kenosha and Walworth), DRIVE was able to identify the major growth industries exhibiting potential for continued employment growth, and now is targeting those to help existing companies in those sectors.

Specific developments in the area include the 2,300-acre Mt. Pleasant project, which includes 900 acres of industrial and commercial construction. A land-use plan has been completed for the development, which is set to include residential, commercial, industrial and open space. Residential development is occurring along the Highway 36 corridor on the west end, and construction of a bypass in the city of Burlington has ignited interest from many businesses.

Along Lake Michigan in the city of Racine, Point Blue currently is underway. The mixed-use project will feature approximately 500,000 square feet of residential and commercial space, situated on a brownfield site just north of downtown. Point Blue, along with two other residential projects in Racine, offers an alternative to the higher living costs in Chicago and Milwaukee.

“My personal forecast for the community is that there will continue to be small and medium-sized manufacturing firms seeking locations in the corridor, driven more by technology and innovation and less by labor costs,” Kacala says. “We fit into the advanced manufacturing niche, with access to both Chicago and Milwaukee, but we’re seeing a proliferation of professional office space as well; as the infrastructure is now available, I think we’ll see a lot more of that type of product.”


©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.