Op-Ed: Illinois manufacturers are in dire need of legal reform

By Zach Mottl
The Center Square

Illinois manufacturers are a cornerstone of the state’s economy, contributing $135.5 billion in economic value and accounting for more than 11% of Illinois’ gross domestic product. On top of that, Illinois employs more than 566,000 workers across over 12,000 manufacturing businesses statewide. But despite the industry’s enormous economic impact, manufacturers across Illinois are increasingly being forced to navigate one of the most hostile legal climates in the country.

At Atlas Tool Works in Cook County, which has been family-owned and operated since 1918, we serve our community by providing precision manufacturing services tailored to our customers. We have always been dedicated to fair, competitive prices, but providing these affordable services to our customers has become increasingly difficult as our legal climate drives up costs and makes it harder for us to invest in improving our business.

The current environment in Illinois too often rewards excessive litigation, sky-high settlements, and legal tactics that drive up costs for businesses of all sizes, rather than delivering real justice to those truly harmed. That’s why it’s no surprise that the American Tort Reform Foundation once again ranked three Illinois counties among the nation’s top Judicial Hellholes®.

The consequences of this legal climate extend far beyond the courtroom, into the everyday realities of Illinois employers and consumers.

According to recent economic analysis, lawsuit abuse costs Illinois residents over $2,000 annually, and that cost is paid through higher prices, increased insurance costs, and lost economic opportunity. These hidden costs impact everyone — from family-owned manufacturers and local retailers to consumers already struggling with inflation and rising living expenses. On top of the extremely high costs, Illinois has already lost more than 214,000 jobs this past year as excessive litigation and an unpredictable legal climate continue to push businesses and investment elsewhere.

For manufacturers, the stakes are especially high. Illinois businesses operate in a competitive environment where every dollar matters. When companies are forced to spend more on legal defense or costly settlements, that is money that cannot be invested in new equipment, workforce expansion, employee wages, or innovation. For a company like mine that has been around for more than 100 years, the costs of running a business have already far outpaced inflation. Adding lawsuit abuse to the growing list of financial pressures makes it increasingly difficult for manufacturers to remain competitive, plan for the future, and continue creating good-paying jobs in Illinois.

Over time, these challenges have forced businesses to make tough decisions. Companies are reconsidering growth plans and entrepreneurs are starting to think twice before making investment decisions. The result could be that employers start looking to relocate their operations to states with more predictable legal systems, potentially moving out of Illinois entirely.

Illinois should focus on attracting investment and strengthening its economy, not on maintaining its reputation as one of the most lawsuit-friendly states in the country.

Meaningful legal reforms are about restoring fairness and balance to a system that has a long record of increasingly incentivizing abusive litigation at the expense of job creators, workers, and consumers.

Other states have shown that reform works. Florida and Georgia enacted landmark reforms over the past few years that have helped balance the civil justice system, improve their business climates, attract investment, and reduce unnecessary financial pressures on small businesses.

If Illinois hopes to attract investment and keep manufacturers rooted here for generations to come, lawmakers in Springfield must focus on policies that prevent excessive litigation from hurting employers, workers, and the state’s economy.

The future of Illinois competitiveness depends on it.