General Motors announced Jan. 28 that it will devote $175 million to its Janesville plant. Gov. Jim Doyle was present alongside GM officials and local union representatives to publicize the investment, which will retain the plant’s 3,900 jobs.
“It made sense to continue doing business in Janesville,” GM manufacturing spokesman Dan Flores said. “They have solid management and union relations, all with a high commitment and understanding to the competitive nature of this investment.”
Factors in choosing Janesville for the investment included a competitive local labor agreement, incentives from the state, workforce performance and local infrastructure, according to Flores.
In addition to maintaining current jobs, the money will also prepare the facility for a new product assignment, securing GM business in what State Sen. Judy Robson (D-Janesville) called in a release a “cornerstone of the regional economy.”
Janesville’s success comes as welcome news to the Doyle administration.
“The governor has helped to put Wisconsin back on the right track in the last year through a balanced budget, regulatory reform and working to make Wisconsin more friendly to business by eliminating taxes on creating jobs,” deputy press secretary Jessica Erickson said.
Wisconsin has suffered more in terms of job loss relative to many parts of the nation, because of its heavy reliance on manufacturing, according to Joel Rogers, director of the University of Wisconsin Center on Wisconsin Strategies. The Doyle administration worked closely with GM officials for several months to secure the agreement, Flores said.
As part of the investment, Doyle also stressed the importance of worker-training programs like those in place at the Janesville plant. The governor is now backing a new $10 million worker-training initiative.
“The bill would help companies by providing free job training if the company is making a large investment in the workplace or creating a significant number of new jobs,” Erickson said.
Worker training was a large part of the company’s decision to invest in Janesville, according to Flores.
“Just as important as preparing the facility is preparing the workforce, and when you’re talking about a place like Janesville where there are thousands of workers, that’s a tremendous cost.”
The state’s $5 million incentive package, which includes grants from the Department of Commerce as well as the Department of Workforce Development, will significantly ease this cost for the GM.
Rogers applauded the governor’s job-training initiative.
“Too long has the government subsidized firms with no accountability,” he said, adding that Doyle’s policy to provide worker training is a better alternative than direct subsidies to industry.
According to Erickson, the GM investment signals a bright future for the state’s economy.
“The fact that GM invested $175 million in Wisconsin is a sign of our economy being back on the right track.”