Watlow to lay off 200, close Richmond facility by 2021

Richmond is losing one of its largest employers, Watlow, by the end of summer next year, said the village president and a company spokesman.

The company, which is based in St. Louis and manufactures thermal sensors, controls and systems for use in the energy, medical equipment and technology industries, is laying off about 200 workers between now and when it stops operations at its facility at 5710 Kenosha St. next year.

The move will allow the business to move its sensor product lines made at the Richmond location, which Watlow has occupied since the mid-1980s, into its other operating facilities where more complex products are assembled, company communications director Bob Moore said.

“This was in consideration for a little while,” Moore said. “The pandemic didn’t have much to do with the decision to do it. It was the next natural step given the progression of our business. We certainly have had a good run with Richmond, and we’ve been very enmeshed with the community for many years. It was an unfortunate situation all around, but sometimes these decisions are necessary to maintain a business.”

A small number of employees will be offered telecommuting positions, and opportunities to transfer to another Watlow facility will be available to qualified workers desiring such a move, Moore said. The employees getting laid off will be given a severance package by the company to assist with their transitions.

Jim McConoughey, president of the McHenry County Economic Development Corp., said his organization is prepared to help laid-off Watlow employees move into positions with area employers requiring similar skills. He said the property once vacated is unlikely to linger unoccupied, citing recent commercial real estate activity.

“There are a lot of manufacturers in the region that are interested in the style and skill sets of those employees,” McConoughey said. “We’ve seen properties in the region, they’ve had a pretty good absorption rate. That’s the idea that something goes on the market and then gets picked by another user or renter, and those transfers in the real estate market have been pretty solid.”

The property is located just west of the Route 173 and 12 intersection, just north of the village’s downtown and not far from the Wisconsin border.

Richmond village President Craig Kunz lamented the loss of Watlow for the municipality, noting that its workers sometimes spent money at local retailers and restaurants. Kunz said he would be open to talking with fellow elected officials about targeting the Watlow property with local tax incentives, if it would help a potential new user make an attractive proposal for repurposing the facility.

“Watlow has been an excellent resident here in town,” Kunz said. “We would love to see some other company come in – light manufacturing like they are – and replace them. We are open to discussions with anyone that would be interested in that facility. Needless to say, we need to see who it is and what they’re proposing before we could sit down and talk truly in earnest with them.”