Study: $5B from Stellantis could equal $3B for Belvidere area residents

Jeff Kolkey, Rockford Register Star
Updated ·3 min read

An estimated $4.9 billion investment at the Belvidere Assembly Plant would mean far more than the resurrection of thousands of good-paying jobs. It could drive population growth and generate billions in wealth for residents across the region.

A macro economic analysis commissioned by the Region 1 Planning Council on behalf of Illinois and conducted by Regional Economic Models Inc., or REMI, found that residents of Boone County alone would see an additional $3 billion over three decades, Region 1 Director of Community Impact Jason Holcomb said.

"For every worker that's in manufacturing, how many workers equal an extra barista at the coffee shop because you have more people purchasing coffee?" Holcomb said. "There's a certain number that's going to then translate into additional teachers because you have more kids in the area."

Stellantis — maker of Dodge, Jeep, Ram and Chrysler — plans under a tentative agreement with the United Auto Workers to ramp up operations, expand its footprint in Belvidere and hire about 2,500 workers to build 80,000 to 100,000 midsize trucks a year starting in 2027 and another 1,000 to produce batteries starting in 2028.

More: Agreement would revive idled Belvidere Assembly Plant

Such production jobs, known as direct or primary jobs, will require the creation of additional parts supplier jobs. Those thousands of jobs will in turn lead to an expansion of "indirect jobs," which are all kinds of jobs across the community needed because of increased demand for everything from daycare to construction to barbershops, Holcomb said.

UAW workers are in the midst of a ratification process on a tentative agreement with Stellantis and the other Detroit Three car manufacturers. A tentative agreement calls for either building a new Belvidere Assembly Plant or retooling the current plant, constructing a new battery production facility and turning at least part of the current Belvidere facility into a parts distribution mega hub.

If those things happen, the REMI analysis pointed to the following economic impacts in Boone County over the next 30 years:

  • $3 billion in personal income

  • $45 million in additional sales tax revenue

  • 30,000 additional residents

  • $400 million more in residential property taxes

Although the study focused on Boone County, where taxing bodies are expected to grant Stellantis property tax abatements to incentivize the expansion, neighboring counties such as Winnebago and McHenry should benefit as well because of the job growth.

Illinois Rep. Dave Vella, D-Rockford, said the investment could be "life-changing."

"This will change the face of the whole region," Vella said. "Back when the Belvidere Assembly Plant was really rolling, it wasn't just Rockford and Belvidere, it was DeKalb and Freeport and Sycamore — I mean the whole region. And now that you have the infrastructure, and you already are starting to see it, other businesses will start jumping on the backs of that. Things will happen."

During his visit to Belvidere last week alongside President Joe Biden, UAW President Shawn Fain credited a team effort that included local, state and federal officials who compiled an attractive incentive package.

But Fain said it was the "Stand-Up Strike" and UAW workers who were sick of watching as "billionaires strip our communities for parts" who hammered the automakers into making the promised investments, Fain said.

"The world is never going to forget what saved Belvidere: It was the Stand-Up Strike," Fain said. "What saved Belvidere was UAW workers all over the country willing to do whatever it takes. Workers who were fed up with going backwards. Workers who are willing to stand up and take back their lives."

Transform Rockford Executive Director Wally Haas said he expects the infusion of new and returning jobs to ripple across the economy.

"This is not just a huge win for Belvidere," Haas said. "It's huge for Rockford and all the surrounding communities."

Jeff Kolkey can be reached at (815) 987-1374, via email at jkolkey@rrstar.com and on Twitter @jeffkolkey.

This article originally appeared on Rockford Register Star: Reopening, expanding Belvidere plant could mean big bucks for residents