The number of local manufacturing jobs is declining because of a weak national economy, said Roger Hopkins, executive director of DeKalb County Economic Development Corporation.

“It’s not about a lack of demand,” Hopkins said. “It’s about consolidating to a smaller facility and being more efficient. They are substituting machinery for manpower.”

A perfect example, Hopkins said, is Caterpillar Heavy Equipment and Engine Manufacturer selling its DeKalb County location to AGCO Corporation, which closed the local tractor manufacturing warehouse.

Ruth Anne Tobias, research associate at NIU’s Center for Governmental Studies, worked on the 2003 Northwest Illinois Market Facts for the center.

“The trends in the global economy are showing a dip in manufacturing and a sharp rise in services in the coming years,” Tobias said.

The study showed a 2.1 percent drop in manufacturing’s share of the labor force from 1990 to 2002 and projected another 1.3 percent drop by 2010.

Services are moving in to replace manufacturing, which explains the rise of insurance firms, educational facilities and health and welfare programs, she said.

Hopkins said he also has seen a change in focus toward the growing service sector. Outsourcing from an outside supplier or manufacturer to cut costs is taking over, and it’s becoming harder and harder to say who is doing the job, Hopkins said.

Hopkins said he wants to keep the DeKalb economy vital by attracting diverse industry. Some target industries include packaging, warehousing and distribution and graphic arts, Hopkins said.

Service and retail employment is continuing its growth, exemplified by the opening of the new Best Buy and expansion of shopping options on Route 23, Hopkins said.

“Most electronics, appliances and clothing were previously purchased outside of the county. Now DeKalb is bringing in shoppers from Rochelle and Dixon,” Hopkins said.

Beth Spencer, communications director for the Illinois AFL-CIO, said the job situation for manufacturing is pretty ominous.

Spencer said she thinks foreign trade policy is to blame. Companies are going overseas for cheaper labor and because they have no environmental standards to follow, Spencer said. Spencer also said health care costs for employees are so high that businesses can’t afford to keep employees.

One way to alleviate the problem is to give tax breaks to domestic industries, Spencer said.