Racine: Economy

Major Industries and Commercial Activity

The recent history of the city of Racine is a story of downtown revitalization. During the 1980s Racine County lost an average of 1,000 jobs per year and many downtown retailers closed or moved to new outlying malls or elsewhere. A group of local business leaders marshaled private, county, and city support in their efforts to turn a declining downtown area with a failing commercial harbor into a vital, attractive harbor complex that would attract tourism and convention activity. The project includes a 110-acre 921-slip luxury harbor/marina; a 16-acre county park; and a 6-acre city-owned festival park that contains both indoor and outdoor facilities designed for year-round use. The city, county, and private sector have pumped more than $25 million into the projects. By the early 1990s, 50 new retailers had moved to the central city and more than 100,000 square feet of first-class office space was added to the downtown. In addition, the revitalized lakefront has spurred more than $30 million in private investment, including a 76-unit lakefront condominium.

Racine's small-business, industrial base is an important part of the region's economy. There are more than 300 established manufacturing firms across Racine County, employing 25,000 people; a number of the firms are based in the city of Racine. The 10 largest manufacturers employ about 60 percent of the workers, with the remaining 40 percent working for small companies. Racine is world headquarters of S.C. Johnson Wax, one of the world's leading manufacturers of chemical specialty products for home care, insect control, and personal care. One of the largest privately-held family controlled businesses in the United States, it is the city's major employer. Another important local firm is In-Sink-Erator, the world's largest manufacturer of food waste disposers and hot water dispensers. The first food disposer was created in 1927 in Racine by John W. Hammes, founder of the company that began operations in 1937. Today the company also markets water heaters, dishwashers, and trash compactors.

In 1842 Jerome Increase Case began a threshing machine works in Racine, and today CNH (formerly J.I. Case) is known worldwide for its quality agricultural and construction equipment. With origins in the city dating back more than 40 years, Master Appliance Corporation has become one of the world's leading designers, manufacturers and marketers of heat tools for industry. Golden Books (formerly Western Publishing Company), the nation's largest publisher and producer of children's storybooks, was founded in Racine in 1907 as a small printing company. The company is also a major producer of puzzles and youth electronic books and products, and ranks among the largest commercial printers in the United States. Founded in Racine more than 70 years ago, Jacobsen, a Textron company, has built a worldwide reputation for delivering the finest in turf maintenance equipment, from precision greenmowers to giant 16-foot rotary mowers.

Items and goods produced: paper products, electric and electronic products, rubber and plastic products, fabricated metal products, wood products, apparel, transportation equipment, printing and publishing

Incentive Programs—New and Existing Companies

Local programs

The Racine County Economic Development Corporation (RCEDC) offers a number of different loans for purposes such as purchase of land, buildings, machinery and equipment, new construction or relocation, working capital, inventory, and fixed assets; some are specific to companies in Racine county, others to companies in the city of Racine. With the Racine Development Group loan fund, businesses and developers that are interested in working in low or moderate income Racine neighborhoods are eligible to apply. Other RCEDC loans benefit businesses that are women- or minority-owned. The Racine Area Manufacturers and Commerce (RAMAC) organizes a number of projects and programs to assist area businesses. RAMAC's Golden Key Awards recognize outstanding businesses in the Racine area; the Business After 5 program offers local networking opportunities; RAMAC's Speakers Bureau provides knowledgeable speakers on a variety of subjects; and the International Outreach Office assists local businesses in accessing world markets.

State programs

Wisconsin's Department of Commerce was created in 1996; it offers a variety of loan and grant programs for both businesses and communities. The depart-ment's Disadvantaged Business Enterprise Program was created to increase participation of firms owned by disadvantaged individuals in all federal aid and state transportation facility contracts. The department's Minority Business Development loan program provides financial assistance for the creation and expansion of minority-owned businesses in Wisconsin through low interest loans. The Employee Ownership Assistance Loan Program helps groups of employees purchase businesses that would otherwise close by providing individual awards up to $15,000 for feasibility studies or professional assistance. The state of Wisconsin extends tax exemptions for manufacturing machinery and equipment, inventories, and pollution control equipment; tax credits for research and development and energy conservation; and a 60 percent exclusion of state capital gains held for twelve months. The state provides labor training, infrastructure, asset-based lending, and high-technology awards.

Job training programs

Gateway Technical College, in addition to offering both associate and technical degrees in 77 different fields, can create customized training programs offered either on campus or at employer sites. The school also provides one-on-one technical assistance in areas such as production and marketing. Gateway's staff consults with local businesses to determine employee retraining needs, and can also give technical assistance to those companies seeking to develop grants for other local, state, or federal training programs. The Wisconsin Department of Development offers Customized Labor Training grants for training or retraining of in-state workers, providing an economic contribution to the area. Through the Job Training Partnership Act, the Southeastern Wisconsin Private Industry Council provides trained employees and customized training to unskilled adults and youths for entry into the labor force and offers on-the-job training with 50 percent wage reimbursement offered to employers along with summer youth programs.

Development Projects

In 2004, the city of Racine was awarded $550,000 from the Wisconsin Department of Commerce to clean up a contaminated brownfield site and develop an industrial park, where up to 200 people would be employed. Plans continue to move forward with the Kenosha-Racine-Milwaukee (KRM) commuter rail Metra extension. Wisconsin government and business community officials plan to advance development plans that would add a 33-mile extension of the Chicago Metra service that currently ends in Kenosha. The expansion would use existing upgraded rail right-of-way, and provide seven round-trip trains per day between Chicago and Milwaukee, with stops planned in Milwaukee, Cudahy-St. Francis, South Milwaukee, Oak Creek, Caledonia, Racine, and Somers.

Economic Development Information: Racine County Economic Development Corporation, 2320 Renaissance Blvd., Sturtevant, WI 53177; telephone (262)898-7400; email [email protected]

Commercial Shipping

Rail freight service is provided by the Union Pacific Railroad, the Wisconsin Central Ltd., and the CP Rail System. There are 95 widely distributed trucking and warehousing establishments in Racine County; the area has direct access to Interstate Highway 94 via state trunk highways. The city is located 30 miles south of the Port of Milwaukee, which provides Great Lakes Seaway access and a Foreign Trade Zone. Three Racine County aviation facilities accommodate all business aircraft, with Chicago's O'Hare International Airport and Milwaukee's Mitchell International Airport both less than 60 miles away.

Labor Force and Employment Outlook

The Racine County labor force is just under 100,000 people; together with the labor force from surrounding communities, Racine has an abundant supply of workers. In Wisconsin, absenteeism is below the national average, and the state has the lowest national percentage of employees who leave jobs because they choose to. Wisconsin's labor hours lost due to work stoppages were only one-fifth that of the nation, which contributed to businesses' increased productivity and reduced manufacturing costs.

Industry Week Magazine named the Racine metropolitan area one of 50 world class manufacturing centers in 2000, indicating the strength of the city's manufacturing sector.

The following is a summary of data regarding the Racine metropolitan area labor force, 2004 annual averages.

Size of non-agricultural labor force: 79,600

Number of workers employed in . . .

construction and mining: 4,000

manufacturing: 19,000

trade, transportation, and utilities: 15,200

information: 600

financial activities: 2,600

professional and business services: 6,400

educational and health services: 10,400

leisure and hospitality: 6,600

other services: 4,700

government: 10,200

Average hourly earnings of production workers employed in manufacturing: $16.19 (statewide)

Unemployment rate: 6.6% (March 2005)

Cost of Living

The following is a summary of data regarding several key cost of living factors in the Racine area.

2004 ACCRA Average House Price: Not reported

2004 ACCRA Cost of Living Index: Not reported

State income tax rate: Ranges from 4.6% to 6.75% (tax year 2004)

State sales tax rate: 5.0%

Local income tax rate: None

Local sales tax rate: 0.1%

Property tax rate: $27.97 per $1,000 of equalized valuation

Economic Information: Wisconsin Department of Commerce, 201 W. Washington Ave., Madison, WI 53708; telephone (608)266-1018

Racine: Recreation

Sightseeing

Racine's Southside Historic District has an impressive collection of more than 14 blocks of homes and buildings on the National Register of Historic Places. The district contains many architectural styles, including Tudor, Victorian, Federal, Italianate, and Queen Anne. Of special interest are the English Gothic-style buildings at the DeKoven Center Retreat/Conference Center. The Henrietta Benstead Hall, built in the Colonial Revival style, incorporates the classical details of the Queen Anne style, and features Tiffany windows and quality furnishings. Across the street is the Italianate style Masonic Temple, built circa 1856. The mansion contains two operable theaters and features a unique Egyptian motif in the style of the 1920s. Both structures are lavishly lighted and decorated during the Christmas season and are open for tours.

A favorite local site for picnic outings and observation of more than 200 resident animals is the 32-acre Racine Zoological Society, located on the shores of Lake Michigan. One of the few free zoos in the country, it is home to popular exhibits such as the recently remodeled primate and large cat building. Each summer, the zoo's amphitheater hosts nationally known jazz musicians and weekly concerts by the Racine Concert Band. The Firehouse 3 Museum, in an authentic fire house, features antique fire fighting equipment including an 1882 steamer, a 1930 pumper, a working Gamewell Telegraphic Alarm System, and a hand-drawn hose cart. A theater shows films and videos on fire prevention. The Modine-Benstead Observatory is open to the public to examine the skies when visibility allows; its facilities include two dome observatories and a main building that houses a telescope, an observation deck, library, and meeting room.

The beautiful grounds of the S.C. Johnson Wax Company, one of the city's largest employers, house the Golden Rondelle Theater, the center for the company's guest relations and public tour program. Originally designed by Lippincott and Margulies as the S.C. Johnson Pavilion at the 1964 World's Fair, it featured the film To be Alive!, which summarized the joys of living through sight and sound. After the fair, the theater was relocated to Racine, where the structure was redesigned to complement the Frank Lloyd Wright-designed Administration Building and Research Tower, which is open for tours. The theater, which is also open to the public, features films on flight, ecology, and U.S. history.

West of Racine are rural communities, including Union Grove, Wind Lake, Caledonia, Burlington, and Waterford. These western Racine County towns and cities offer a wide variety of interests including antique shops, plenty of parks for picnicking, plenty of lakes and rivers for watersports, and farmers markets.

Arts and Culture

For more than 60 years, the Racine Theatre Guild has produced comedies, suspense thrillers, musicals, and dramas in an 8-play season. The Malt House Theater, in nearby Burlington, is home of the Haylofters, Wisconsin's oldest community theater group. The group presents three productions and a children's play each year in the renovated malt house.

Founded in 1932, the Racine Symphony Orchestra is the only orchestra in the state to perform year-round. The Orchestra performs three distinct concert series annually in addition to a summer Lakeside Pops series. The Racine Choral Arts Society, founded in 1987, performs a varied repertoire ranging from medieval chant to African American gospel. The Chorus schedules solo performances and performs with the Racine and Milwaukee symphony orchestras.

Racine's Charles A. Wustum Museum of Fine Arts has, for more than 60 years, provided changing exhibits, classes, tours, and lectures. It features one of the top-10 craft collections in the country and houses a shop with artist-made gifts. The museum is located in a historic Italianate mansion on 13 acres of land, complete with a formal garden. The Racine County Historical Museum, a registered historic landmark, is devoted to the preservation of county artifacts and archives through its exhibits, events, and other educational programs.

Festivals and Holidays

May's Lakefront Artist Fair features original art and handi-crafts by more than 100 artists, and is the Racine Montessori School's major fundraiser. In September the Racine Antiques Fair at the County Fairgrounds offers one of the Midwest's finest collections of antiques, while later that month Preservation Racine's annual Tour of Historic Homes features tours of houses of historical interest. For more than 16 years, November's Festival of Trees at the Racine on the Lake Festival Hall displays more than 100 professionally decorated Christmas trees, wreaths, and gingerbread houses. Thousands are drawn to May's two-day Chocolate City Festival in nearby Burlington, which features outdoor music, a city bike ride, parade, and many chocolate exhibits—with tasting encouraged.

One of Racine's most popular events is Harbor Fest, held at the Lake Festival Park every June. The festival hosts more than 25 live musical performances on 3 stages, 12 regional restaurants, a children's area, and numerous special events and displays. In July, also along the lakefront, Racine's Salmon-A-Rama is considered the world's largest freshwater fishing event. The nine-day fishing contest, with prizes totaling $100,000, is accompanied by a festival featuring live music, food vendors, and commercial exhibits.

Sports for the Spectator

Professional baseball, hockey, soccer, basketball, and football sporting events can be found in Racine and in nearby Kenosha, Milwaukee, and Chicago. The Racine Raiders, part of the Mid-Continental Football League, stir up semi-pro football excitement at historic Horlick Field.

Sports for the Participant

The YWCA Riverbend Nature Center, an 80-acre year-round nature and recreation center, offers hiking, bird watching, demonstrations, nature studies, and canoe rental along Racine's Root River. Quarry Lake Park, a former limestone quarry, is a mecca for scuba divers and a great place for swimmers looking for spring-fed waters. The 40-acre park has an 18-acre lake that varies in depth up to 100 feet and an expansive sandy beach. North Beach provides more than a mile of clean, white sandy beach with lifeguards and picnic areas. Sixteen-acre Racine County Harbor Park, which extends out into Lake Michigan, offers fishing, a modern fish-cleaning station, and an observation deck with spectacular views. Visitors can enjoy a peaceful stroll around the Reefpoint Marina. Racine is host to the world's biggest freshwater fishing contest, Salmon-a-Rama, an annual event that attracts thousands of fishermen to take their shot at landing "the big one."

Racine County is home to a number of 18-hole golf courses and one 27-hole golf course located on rolling green hills. The City of Racine maintains the grounds of more than 85 parks that feature baseball diamonds, boat launches, soccer fields, fishing facilities, picnic areas, and tennis courts. Racine County also offers one of the most complete and varied bicycle trail networks, with a signed 100-mile bicycle route that circles the entire county. Off-road bicycle trails, surfaced with either crushed limestone or blacktop, total 17 miles. Lake Michigan provides opportunities for both boating and game fishing.

Shopping and Dining

The city and county of Racine offer many shops filled with antiques, resale items, and collectibles. A waterfront showplace, downtown Racine, which is linked with the Racine Civic Centre complex and the nearly 1,000-slip Reefpoint Marina, has many beautifully renovated buildings housing fine jewelry shops and unique collections of sportswear, quality clothing, fine furniture, and specialty shops. Porter's of Racine, an 80,000 square-foot fine furniture store, is recognized throughout the region and may be the oldest retail establishment in the Midwest. Milaeger's offers a wide variety of flowering plants in 71 greenhouses; the company specializes in perennials, and has merchandize pertaining to all facets of gardening and outdoor living. The county is also home to The Seven Mile Fair, Wisconsin's largest flea market. Open every weekend, the market features hundreds of vendors selling clothes, toys, tools, jewelry, electronics, luggage, and more. During the summer months a farmers market is also in operation.

No visit to Racine would be complete without sampling the local delicacy, Danish Kringle, a flaky, oval-shaped coffee cake made of traditional Danish pastry and filled with a variety of fruits or nuts. O&H Danish Bakery, founded in 1949, makes them daily using all-natural ingredients. Kewpee Sandwich Shop, known throughout the Midwest, is one of the oldest hamburger restaurants in the area. Mid-priced family restaurants share the local spotlight with ethnic eateries, including Italian and Chinese, as well as places offering meat and potatoes or the catch of day from the Great Lakes.

Visitor Information: Racine County Convention and Visitors Bureau, 14015 Washington Ave., Sturtevant, WI 53177; toll-free (800)C-RACINE

Racine: History

City Settled by Yankees

The first known visit by white men to the Root River area, the site of present-day Racine, occurred in 1679 when explorers LaSalle and Tonti stopped there on their search for a route to the Mississippi River. Prior to the 1830s, the area of southeastern Wisconsin was inhabited by the Potawatomi tribe, whose rights to the lands were recognized by the federal government. By 1833 the U.S. government made an agreement with the Potawatomi to purchase five million acres of land, including the area where Racine is located. Soon after, the Potawatomi were moved by the government to areas in the western United States. The first settlers arrived in what came to be Racine County about 1820 and established trading posts along the Root River in the present day cities of Racine and Caledonia.

In 1834 Gilbert Knapp settled at the mouth of the Root River and blazed out a 160-acre claim. From 1834 to 1836 the community was named Root for the river on which the city was settled (Root being the English translation for the name the Potawatomi called the river). After 1836 the name was changed to Racine, the French word for root, but the English word was retained for the name of the river. From the spot at the mouth of the river and spreading westward across the entire county, commercial and industrial enterprises sprang up. In 1834 and 1835 hundreds of settlers migrated west to the newly open lands. Northern Europeans settled along waterways throughout Racine County, utilizing them for transportation and power.

Shortly after Racine's founding, a saw mill was constructed, which proved to be a real convenience to the settlers. By 1840, 337 settlers lived in the area and by 1844 the city had 1,100 people. The government built a lighthouse in 1839, a $10,000 courthouse in 1840, and several bridges and a major hotel. Between 1844 and 1860 the government assisted in the completion of the harbor. A large elevator was built in 1867 to load the ships with wheat that was brought to Racine and stored in dozens of grain warehouses. The elevator was destroyed by a fire in 1882.

Manufacturing Anchors Local Economy

The young city was supported by a large farming community that came to town for manufactured goods. The city's growth coincided with the invention and development of agriculture machinery and other labor-saving devices. A flour and feed business was Racine's first. Other early industries were boots and shoes, tanneries, clothing, wagons and carriages, soap and candles, saddles, trucks, harnesses, and blacksmithing. By 1860 boat building and brick making were added.

Racine's first school was built in 1836. During the Civil War, the Camp Utley federal war camp was built in Racine. In 1884 the first ship entered the newly built harbor. That same year, upon the city's fiftieth birthday, a monument that still stands in Monument Square was erected to honor the city's Civil War soldiers.

Over the years, as waterways declined in importance, railroads became the major transport for freight. The first railroad to reach Racine arrived in 1853 and the first steam engine came into use in 1867.

A number of local industries have had a vital relation to the growth and prosperity of the city itself. The J. I. Case Plow Threshing Machine Works was established in 1844. In 1886 S.C. Johnson began a parquet flooring manufacturing operation, which diversified over the years and is now one of the city's largest employers. Gold Metal Camp Furniture was started in 1892, the Racine Rubber Company in 1910, Mitchell Motor Car Company in 1903, and Western Publishing in 1908.

The Great Depression of the 1930s was especially severe in the agricultural sector and the sale of farm machinery drastically declined. By 1937 recovery had begun, and World War II accelerated that recovery. However, from 1945 through 1960 the business community, always sensitive to national business cycles, experienced slow post-war growth. In the 1960s, the voluntary desegregation of the schools became a national model. During the 1960s and 1970s Racine manufacturing entered a growth cycle, and printing, publishing, and chemical production became more predominant.

During the 1970s there was an increased movement of industry from central Racine to the outlying areas. In 1971 the University of Wisconsin-Parkside was founded in a rural setting between Racine and the nearby city of Kenosha.

The construction of the multimillion-dollar Racine On The Lake Festival Park marina complex in the 1980s spurred the growth of tourist visits to the city, particularly from the Chicago and Milwaukee areas. Today, Racine's waterfront community thrives with cultural attractions, sporting activities, festivals, and other tourist attractions. This influx of tourism has boosted many areas of Racine's economy.

Historical Information: Racine County Historical Society and Museum, 701 S. Main St., PO Box 1527, Racine, WI 53401; telephone (414)637-8585

Racine: Education and Research

Elementary and Secondary Schools

The Racine Unified School District is a composite of city, suburban, and rural areas contained in a 100-square-mile area. Racine County is known for having outstanding schools, and many innovative, state-wide models have been developed in the school districts. The district achieves above national test score averages on standardized tests and on both SAT and ACT tests. More than 70 percent of district high school graduates indicate attending a post-secondary institution. The district's 2003 graduation rate was 75.7 percent; 48 percent of the district's teachers hold a master's degree or higher.

The following is a summary of data regarding Racine's public schools as of the 2003–2004 school year.

Total enrollment: 21,500

Number of facilities

elementary schools: 21

middle schools: 6

senior high schools: 4

other: 2 charter schools

Student/teacher ratio: 14:1

Teacher salaries

minimum: $28,318

maximum: $58,716

Funding per pupil: $10,048

There are dozens of private schools in Racine, including the Prairie School, an independent college preparatory school that teaches nursery through twelfth grade and emphasizes arts education. Racine has thirty parochial schools in the area, accommodating approximately 6,400 students.

Public Schools Information: Racine Unified School District, 2220 Northwestern Ave., Racine, WI 53404; telephone (262)635-5600

Colleges and Universities

The University of Wisconsin-Parkside, part of the University of Wisconsin system, serves more than 4,700 undergraduate and graduate students on its 700-acre campus located between the cities of Racine and Kenosha. The university has schools of liberal arts and science and technology, and offers undergraduate course work in 24 major fields of study. In addition, the school offers a master's degree in business administration and a master's degree in applied molecular biology, the only one of its kind in Wisconsin. Gateway Technical College offers associate degree, diploma, and certificate programs, as well as educational classes offered to specifically meet area employment needs. The school works with more than 20,000 enrollees annually, and offers programs in more than 77 fields. Its facilities include three full-service campuses.

In nearby Kenosha County, Carthage College offers liberal arts degrees in 33 major fields and enrolls approximately 1,500 students. The short commute to Milwaukee allows Racine residents to attend classes at dozens of colleges and universities, including Marquette University, Milwaukee School of Engineering, and the University of Wisconsin-Milwaukee.

Libraries and Research Centers

The Racine Public Library contains more than a quarter of a million volumes, subscribes to nearly 650 publications, and has more than 5,000 microfilms and films. The library's special collections include works on Racine history and the Early Childhood Resource Collection. In addition to the spacious main library that offers views of Lake Michigan, the library operates a bookmobile and has a number of return box locations. Programs for teens, children, adults, and families are also available.

At the University of Wisconsin-Parkside Center for Survey and Marketing Research, studies on travel and tourism and product and market feasibility are conducted. The university's Industrial Automation Research Center researches real time computer application with an emphasis on automation systems, and the Bio Medical Institute conducts applied and fundamental research in drug design, evaluation, and electromagnetic field application.

Public Library Information: Racine Public Library, 75 Seventh St., Racine, WI 53403; telephone (262)636-9252; email ref–[email protected]

Racine: Population Profile

Metropolitan Area Residents

1990: 175,034

2000: 188,831

2003 estimate: 192,284

Percent change, 1990–2000: 7.9%

U.S. rank in 1980: 23rd

U.S. rank in 1990: Not reported

U.S. rank in 2000: 26th (CMSA)

City Residents

1980: 85,725

1990: 84,298

2000: 81,855

2003 estimate: 80,266

Percent change, 1990–2000: -3.0%

U.S. rank in 1990: 248th (State rank: 4th)

U.S. rank in 2000: 356th (State rank: 5th)

Density: 5,267.6 people per square mile (2000)

Racial and ethnic characteristics (2000)

White: 58,214

Black or African American: 17,692

American Indian or Alaska Native: 736

Asian: 669

Native Hawaiian and Pacific Islander: 74

Hispanic or Latino (may be of any race): 11,422

Other: 6,714

Percent of residents born in state: 70.2% (2000)

Age characteristics (2000)

Population under 5 years old: 6,565

Population 5 to 9 years old: 6,594

Population 10 to 14 years old: 6,500

Population 15 to 19 years old: 6,390

Population 20 to 24 years old: 5,544

Population 25 to 34 years old: 11,682

Population 35 to 44 years old: 12,837

Population 45 to 54 years old: 9,840

Population 55 to 59 years old: 3,255

Population 60 to 64 years old: 2,623

Population 65 to 74 years old: 4,906

Population 75 to 84 years old: 3,776

Population 85 years and older: 1,343

Median age: 33.1 years

Births (2003, Racine County)

Total number: 2,539

Deaths (2003, Racine County)

Total number: 1,492

Money income (1999)

Per capita income: $17,705

Median household income: $37,164

Total households: 31,358

Number of households with income of . . .

less than $10,000: 3,036

$10,000 to $14,999: 2,271

$15,000 to $24,999: 4,885

$25,000 to $34,999: 4,592

$35,000 to $49,999: 5,514

$50,000 to $74,999: 6,647

$75,000 to $99,999: 2,793

$100,000 to $149,999: 1,209

$150,000 to $199,999: 191

$200,000 or more: 220

Percent of families below poverty level: 10.8% (47.1% of which were female householder families with related children under 5 years)

2002 FBI Crime Index Total: 3,736.2