Rail firm says it won’t reach 650-jobs goal in Muncie

Back to TopCommentsE-mailPrintBookmark and Share

A plan by Progress Rail Services to create up to 650 jobs in Muncie by 2012 will fall woefully short, according to The Economist magazine.

In a Friday online story detailing the city’s economic struggles, a Progress Rail spokeswoman said the company currently employs 150 people in Muncie and has scrapped the 650 target. It expects to have just 250 employees by the end of 2012.

The spokeswoman blamed the sluggish hiring on the weak economy.

Progress Rail, a subsidiary of Peoria, Ill.-based Caterpillar Inc., in October announced plans to locate a locomotive manufacturing facility in the city 60 miles northeast of Indianapolis.

The company said it would invest about $50 million to open the first locomotive manufacturing and assembly plant in the United States in several years.

The plant is in a 740,000-square-foot facility formerly occupied by ABB Power T&D Co., which closed in 1998.

The Indiana Economic Development Corp. said it would provide Progress Rail up to $3.5 million in performance-based tax credits and up to $1 million in training grants based on the company’s job-creation plans.

In addition, the IEDC said it would provide the city of Muncie with up to $1 million in infrastructure assistance from the state's Industrial Development Grant Fund.

And Delaware County considered a tax abatement, community revitalization enhancement district and tax increment financing request valued at about $22.5 million at the request of the Muncie-Delaware County Economic Development Alliance.

Only about $11 million in state and local incentives have been realized, according to The Economist. Still, that would equate to $44,000 per job.

Founded in 1983, Progress Rail makes, repairs and refurbishes freight cars, locomotives and rail track. In addition, the company oversees the reclamation of used rail, wrecked or retired railcars and locomotives and other scrap metal.

The company has more than 130 operating facilities throughout the U.S., Canada, Mexico, Brazil, Italy, Germany and the United Kingdom.



  • Another victim
    of the depression we've been in since 2008, more likely. Someone at Caterpillar or Progress Rail drank too much "recovery is happening" "Koolaid". If the railroads aren't buying rolling stock, or even ordering same, why go out on a limb to build a new plant to manufacture same?
  • Fraud
    The Indiana Economic Development Commission is eager to hand out corporate welfare and so, it seems, was the city. The city has already handled out over $11 mil in tax breaks and credits for 10% of the jobs agreed upon.

    City government and the IEDC eager to dole out OUR monies and REVENUES !!! Horrible and fraudulent management.
    Monies and tax credits should only be released IF and WHEN the equal number of jobs is created or else you run into this type of FRAUD.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Can your dog sign a marriage license or personally state that he wishes to join you in a legal union? If not then no, you cannot marry him. When you teach him to read, write, and speak a discernible language, then maybe you'll have a reasonable argument. Thanks for playing!

  2. Look no further than Mike Rowe, the former host of dirty jobs, who was also a classically trained singer.

  3. Current law states income taxes are paid to the county of residence not county of income source. The most likely scenario would be some alteration of the income tax distribution formula so money earned in Marion co. would go to Marion Co by residents of other counties would partially be distributed to Marion co. as opposed to now where the entirety is held by the resident's county.

  4. This is more same-old, same-old from a new generation of non-progressive 'progressives and fear mongers. One only needs to look at the economic havoc being experienced in California to understand the effect of drought on economies and people's lives. The same mindset in California turned a blind eye to the growth of population and water needs in California, defeating proposal after proposal to build reservoirs, improve water storage and delivery infrastructure...and the price now being paid for putting the demands of a raucous minority ahead of the needs of many. Some people never, never learn..

  5. I wonder if I can marry him too? Considering we are both males, wouldn't that be a same sex marriage as well? If they don't honor it, I'll scream discrimination just like all these people have....