Economy of Peoria, IL

Peoria, Illinois, is a city with a diverse and evolving economy rooted in a rich history of manufacturing, healthcare, and agriculture. Located along the Illinois River, Peoria serves as a regional economic hub for Central Illinois. Its economic landscape has transitioned over the years from a manufacturing powerhouse to a more diversified economy, including sectors like healthcare, education, and service industries.
Overview of Peoria’s Economic Landscape
Peoria’s economy is defined by its historical ties to manufacturing, particularly with Caterpillar Inc., a Fortune 500 company that was headquartered in Peoria for nearly a century. Today, Peoria’s economy is more varied, with significant contributions from the healthcare sector, education, logistics, and professional services. The city’s strategic location along the Illinois River, combined with its robust infrastructure, continues to make it an attractive location for businesses and industries.
Healthcare and Medical Services
Major Healthcare Providers
Healthcare is the largest employer in Peoria, driven by the presence of major hospitals and healthcare networks. The city’s healthcare sector not only serves the local population but also attracts patients from surrounding regions.
- OSF HealthCare Saint Francis Medical Center: One of the largest medical centers in Illinois, providing a wide range of healthcare services, including specialized care in pediatrics, cancer treatment, and cardiovascular services.
- UnityPoint Health – Methodist: A key provider of healthcare services, offering primary care, surgical services, and emergency care.
- Children’s Hospital of Illinois: A leading pediatric hospital within OSF Saint Francis, recognized for its specialized pediatric care.
Economic Impact of Healthcare
The healthcare sector significantly contributes to Peoria’s economy through employment, research, and development. The presence of medical schools, such as the University of Illinois College of Medicine at Peoria, fosters a strong link between education and healthcare, promoting innovation and advanced medical research.
Employment in Healthcare
Healthcare provides thousands of jobs in Peoria, ranging from medical professionals to administrative staff. The demand for healthcare services continues to grow, driving further investment in facilities and technology.
Manufacturing and Industry
Historical Manufacturing Base
Peoria has a long-standing tradition of manufacturing, historically driven by Caterpillar Inc., which was founded in the city in 1925. Although Caterpillar moved its global headquarters to Deerfield, Illinois, in 2017, it maintains a significant presence in Peoria with several manufacturing and engineering facilities.
Current Manufacturing Landscape
While manufacturing in Peoria has diversified beyond Caterpillar, the sector remains a cornerstone of the local economy. Other notable manufacturers include:
- Komatsu America Corp.: A leading global manufacturer of construction and mining equipment.
- Advanced Medical Transport: Specializes in the manufacturing of ambulances and emergency medical vehicles.
- SMF Inc.: A custom metal fabrication company that serves a variety of industries, including agriculture and construction.
Employment in Manufacturing
Manufacturing jobs in Peoria provide competitive wages and benefits, supporting a substantial portion of the workforce. The sector continues to adapt with the integration of advanced manufacturing technologies and automation.
Education and Research
Higher Education Institutions
Peoria is home to several higher education institutions that contribute significantly to the local economy through education, research, and community engagement.
- Bradley University: A private university known for its business, engineering, and communications programs. Bradley University also fosters innovation and entrepreneurship through its Turner School of Entrepreneurship and Innovation.
- University of Illinois College of Medicine at Peoria: A medical school that provides education and training for future healthcare professionals, contributing to the healthcare sector’s growth.
- Illinois Central College: A community college offering a variety of programs that support workforce development in the region.
Research and Development
Research initiatives in Peoria are closely linked to the healthcare and education sectors. Collaborative projects between universities and healthcare providers drive innovation in medical research, technology development, and clinical trials.
Agriculture and Agribusiness
Agricultural Economy
Peoria’s location in the fertile Illinois River Valley makes it an important center for agriculture and agribusiness. The region’s agricultural activities include corn and soybean production, livestock farming, and agritech innovations.
Agribusiness Companies
Several agribusiness companies operate in and around Peoria, supporting the local economy through production, processing, and distribution.
- ADM (Archer Daniels Midland): One of the world’s largest agricultural processors and food ingredient providers, with operations in the Peoria area.
- Growmark: A regional cooperative providing agricultural products, services, and solutions for farmers.
Employment in Agriculture
Agriculture and related industries provide employment opportunities in farming, logistics, and agribusiness management. The sector also supports local markets and contributes to Peoria’s food supply chain.
Retail and Hospitality
Retail Hubs
Peoria serves as a retail hub for Central Illinois, with a variety of shopping centers, independent boutiques, and large retail chains.
- Northwoods Mall: A major shopping destination featuring national retailers, dining options, and entertainment.
- The Shoppes at Grand Prairie: An outdoor lifestyle center offering a mix of retail stores, restaurants, and entertainment venues.
Hospitality and Tourism
Peoria’s hospitality sector benefits from the city’s attractions, events, and riverfront activities. The city’s convention center, hotels, and restaurants cater to both business travelers and tourists.
Economic Impact of Tourism
Tourism contributes to the local economy through spending on accommodation, dining, and entertainment. Popular attractions include the Peoria Riverfront Museum, Peoria Zoo, and various festivals and events throughout the year.
Transportation and Logistics
Transportation Infrastructure
Peoria’s strategic location along the Illinois River and its access to major highways and rail networks make it a key logistics hub. The city is well-connected, facilitating the movement of goods and services.
- Greater Peoria Regional Airport: Provides passenger and cargo services, linking Peoria to major cities across the United States.
- River Transportation: The Illinois River allows for barge traffic, supporting the movement of bulk goods such as agricultural products and manufactured goods.
- Rail Services: Peoria is served by multiple rail lines, including those operated by Norfolk Southern and Union Pacific, supporting freight transportation.
Logistics and Distribution
Peoria’s logistics sector supports a variety of industries, including manufacturing, agriculture, and retail. Distribution centers and warehousing facilities play a crucial role in the local economy, providing jobs and facilitating trade.
Economic Development Initiatives
Peoria Economic Development Council
The Peoria Economic Development Council (PEDC) works to promote business growth, attract new investments, and support the local workforce. Key initiatives include:
- Business Retention and Expansion: Programs aimed at supporting existing businesses and encouraging their growth.
- Workforce Development: Training and education programs designed to equip the local workforce with skills in demand by employers.
- Innovation and Entrepreneurship: Efforts to foster a vibrant startup ecosystem, including support for small businesses and technology-based companies.
Tax Incentives and Business Support
Peoria offers various tax incentives and support programs to attract and retain businesses. These include property tax abatements, low-interest loans, and assistance with site selection and development.
Challenges Facing Peoria’s Economy
Economic Diversification
While Peoria has made significant strides in diversifying its economy, challenges remain. The city’s historical reliance on manufacturing means it must continue to adapt to changes in the global economy and shifts in industrial demand.
Workforce Development
Peoria faces challenges related to workforce development, including the need for skilled labor in healthcare, technology, and advanced manufacturing. Efforts are ongoing to address these needs through education, training, and partnerships between industry and educational institutions.
Economic Disparities
Economic disparities exist within Peoria, with certain neighborhoods experiencing higher levels of poverty and unemployment. Addressing these disparities is a priority for local leaders, with initiatives focused on community development and job creation.
Future Economic Prospects
Opportunities for Growth
Peoria is positioned for future economic growth, driven by its strong healthcare sector, strategic location, and ongoing economic development efforts. Key opportunities include:
- Technology and Innovation: Expanding the city’s technology sector through support for startups and tech companies.
- Sustainability Initiatives: Leveraging Peoria’s agricultural base to develop sustainable practices and green technologies.
- Infrastructure Improvements: Investing in transportation and infrastructure to support business growth and enhance quality of life.
Vision for Peoria’s Economy
The vision for Peoria’s economy includes building a diverse, resilient, and inclusive economic landscape that supports a high quality of life for all residents. Continued investment in education, innovation, and community development will be crucial to achieving this vision.
Conclusion
Peoria, IL, boasts a dynamic and evolving economy rooted in a diverse range of sectors, from healthcare and manufacturing to agriculture and logistics. The city’s strategic location, robust infrastructure, and commitment to economic development position it well for future growth. As Peoria continues to adapt to the challenges and opportunities of the modern economy, its focus on innovation, workforce development, and community engagement will be key to sustaining its economic vitality. Whether you’re a business looking to invest, a job seeker, or a resident, Peoria offers a vibrant economic environment with a wealth of opportunities.
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