Dec. 30--PEORIA -- After several years of riding the smooth waves of prosperity provided by Caterpillar Inc., the area got hit twice in the last six months by news of tidal wave proportions.

The question is, which way will the ripples flow the strongest in 2009 and beyond?

While there is no question that economic news dominated central Illinois as it did the nation in 2008, it really was topsy-turvy year with good news mixing with bad.

"It was a year filled with some big surprises, good and bad," said Jim McConoughey, president of the Heartland Partnership.

He said the area is experiencing "a dialing back" right now as Caterpillar, the health care sector and others put some things off until the economy improves. That, McConoughey said, will make a rough go a little easier here than in some places around the country.

"When we see our friends and neighbors lose their jobs, it's difficult. But there are whole communities out there being devastated by a lack of planning, planning our companies and leaders have done here that will help us get through it," he said. "We are making good headway toward that." While 2008 started with concerns about the economy growing, most in central Illinois still believed the region could dodge what was happening nationally.

While housing sales were down, they were off by sizable margins. Farmers were coming off a great year in 2007 and expected more this year. Unemployment worsened but more jobs were being created in the region, headed by the manufacturing and health care sectors.

Caterpillar had a record year in 2007 and expected more growth in 2008 and the local SCOPE report -- Statistical Composite of the Peoria Economy compiled for the Journal Star by Bradley University -- showed stability.

Caterpillar continued its big financial numbers, as did Keystone Consolidated Industries and RLI Corp. and Aventine Renewable Energy.

A big development project announced in the spring was the East Peoria/Downtown 2010 project slated for an 88-acre site in the middle of East Peoria. The site, which once held Caterpillar factories, will become a mixed-use office and retail development the city believes will generate $130 million in new investment. Cullinan Properties is the developer.

Even at midyear, despite a drop in consumer confidence and signs the economic woes were starting to be felt locally, Caterpillar buoyed local spirits when it announced a $1 billion commitment to upgrade its Illinois facilities with some reorganization it said would result in more job growth overall.