WARN Act Layoffs in Mchenry County, Illinois

In-Depth Analysis: Layoffs in McHenry County, Illinois

# McHenry County, Illinois: Layoff Patterns and Workforce Displacement (2015–2024)

Overview: Scale and Significance of Layoffs

McHenry County has experienced nine WARN Act notifications affecting 1,442 workers across a decade-long period from 2015 through 2024. While this number is modest relative to larger metropolitan areas, the concentration of layoffs among dominant employers and the county's mid-sized manufacturing and distribution base means these reductions carry outsized economic weight in community employment, consumer spending, and tax revenue. An average of roughly 160 workers displaced per WARN notice—notably higher than many county averages—suggests that McHenry County's layoffs are driven by large, consequential facility closures and major workforce restructurings rather than incremental attrition.

The timing of these notifications reveals vulnerability points in the county's economic cycle. Half of the nine notices occurred during two distinct periods: 2020 (two notices, coinciding with pandemic-driven economic disruption) and 2022 (two notices, reflecting post-stimulus labor market volatility and supply chain recalibration). The remaining five notices spread across 2015–2019 and 2023–2024 suggest an underlying structural fragility in McHenry County's core industries rather than isolated incidents.

Key Employers and Drivers of Displacement

The layoff landscape is sharply concentrated among a handful of multinational and regional powerhouses. NDSM Chemung leads with 247 displaced workers in a single notification, followed closely by True Value (243 workers) and Cardinal Health (236 workers). These three companies alone account for 726 workers—50 percent of the county's total WARN-notified displacement. The presence of major wholesale and chemical distribution operations highlights McHenry County's function as a logistics and supply chain hub within the greater Chicago metropolitan region.

Watlow Electric Manufacturing eliminated 192 positions, underscoring fragility in the industrial controls and heating equipment sector. Silgan Plastics removed 151 workers from its operations, reflecting broader consolidation pressures in the commodity plastics industry. Centegra Health System, the county's second-largest healthcare employer filing WARN notices, displaced 130 workers—a significant blow to local healthcare employment. Kemper Valve & Fittings (110 workers) and Berry Global (82 workers) further illustrate exposure to cyclical manufacturing and packaging sectors.

Ticketmaster's 51-worker reduction is the smallest single notice but noteworthy as the only information technology employer in the dataset. This suggests that McHenry County, unlike some Midwest tech hubs, has limited concentration in high-wage software and digital service industries and remains anchored in legacy manufacturing and distribution.

The absence of H-1B sponsorship data specifically for McHenry County employers in the provided dataset prevents direct analysis of foreign skilled-worker displacement. However, Illinois statewide H-1B petitions concentrate among global IT consulting firms (Capgemini America, Infosys, Tata Consulting Services) and management consultancies, none of which appear in McHenry County WARN notices. This absence suggests the county's larger employers rely less on visa-sponsored talent and more on domestic manufacturing and logistics workforces—a structural difference with implications for wage pressure and workforce retraining needs.

Industry Patterns: Manufacturing Dominance and Vulnerability

Manufacturing accounted for four of nine WARN notices (44 percent), establishing it as the county's most vulnerable sector. These notices span chemicals (NDSM Chemung), industrial controls (Watlow Electric), plastics (Silgan), and packaging (Berry Global)—all sectors exposed to commodity price volatility, automation pressure, and global supply chain restructuring. The manufacturing concentration reflects McHenry County's legacy as an industrial production center, but also exposes the county to cyclical downturns and long-term secular decline.

Healthcare delivered two notices affecting 130 workers, positioning it as the second-most-impacted sector. Centegra Health System's WARN notification suggests consolidation, facility closures, or clinical restructuring rather than broad industry contraction. Healthcare generally remains resilient in Illinois despite periodic facility restructuring, but the presence of a major health system layoff signals that local healthcare growth cannot be assumed countercyclical.

Wholesale trade (represented by True Value and Cardinal Health) and transportation logistics cluster around the county's regional distribution function. True Value's 243-worker reduction is particularly significant given the company's historical role as a regional employment anchor. Its WARN notice likely reflects the company's ongoing shift away from physical retail distribution toward e-commerce fulfillment and supplier consolidation.

The IT sector's minimal representation—only Ticketmaster with 51 workers—underscores McHenry County's limited foothold in high-wage service industries and suggests vulnerability to job market dynamics driven by older industrial and logistics sectors.

Geographic Concentration: Crystal Lake at the Center

Layoffs concentrate sharply in Crystal Lake, which accounted for three of nine WARN notices and represents the county's primary employment hub. Harvard and Woodstock each experienced two notices, while Winona and Darrell Road each recorded one. This geographic distribution reflects Crystal Lake's position as the county's largest city and commercial center. The concentration of nearly one-third of all notices in a single municipality means that Crystal Lake's recession vulnerability and labor market resilience are disproportionately important to overall county economic performance.

The dispersal of remaining notices across smaller municipalities suggests that major employers are not evenly distributed across McHenry County, creating uneven economic shock absorption. A future WARN notice from a major Crystal Lake-based employer could significantly destabilize the broader county labor market.

Historical Trends: Clustered Disruption

WARN notice frequency reveals a lumpy, episodic pattern rather than steady-state displacement. The single notices in 2015–2017 suggest baseline structural adjustment. The 2020 spike (two notices) aligns with pandemic-driven closures and service disruptions. The 2022 clustering (two notices) corresponds to post-pandemic supply chain chaos and inventory correction. The 2023 and 2024 single notices suggest return to lower baseline, though the decade-long sample size limits trend confidence.

Year-over-year volatility in WARN notices—ranging from zero to two per year—suggests McHenry County lacks large-scale, sustained job creation that could offset displacement. Without robust new employer attraction or facility expansion, the county remains dependent on the stability of existing large employers, many of which operate in cyclical industries.

Local Economic Impact: Earnings Loss and Fiscal Stress

The 1,442 displaced workers represent direct earnings losses of likely $80–120 million annually, assuming average wages of $55,000–85,000 across manufacturing, healthcare, and wholesale sectors. These workers face 60-day notice periods but frequently experience extended joblessness given occupational specificity in manufacturing and logistics. Displaced workers in industrial controls and chemical manufacturing often require significant retraining to transition into growing sectors.

McHenry County's property tax base, which relies on commercial and industrial assessment, faces erosion as major employers downsize facilities or shutter operations. School districts and municipal services experience delayed but cumulative revenue pressure. Consumer spending declines as displaced workers exhaust savings and reduce discretionary purchases, affecting retail and hospitality employment.

The county's unemployment rate and labor force participation metrics warrant close monitoring given Illinois' 5.0 percent state unemployment rate (February 2026) versus national 4.3 percent (March 2026). McHenry County's predominantly manufacturing-based workforce may experience above-state-average joblessness, particularly if displaced workers lack portable skills for growing sectors.

Structural Vulnerabilities and Policy Implications

McHenry County's WARN notice pattern reflects a county anchored in mid-twentieth-century industrial and logistics sectors with limited diversification into high-wage services or technology. The absence of IT sector employment, despite regional proximity to Chicago's tech corridor, suggests limited venture capital attraction and startup ecosystem development. Manufacturing's continued dominance exposes the county to automation, globalization, and commodity market pressure.

Targeted workforce development in advanced manufacturing, logistics automation, and healthcare occupations could improve labor market resilience. Attraction of regional distribution centers and light manufacturing in higher-value sectors could rebalance the employment base. Without proactive economic development, McHenry County will likely continue experiencing episodic WARN notices as legacy employers optimize operations through workforce reductions.