Talented workers are migrating to a state that backs both human and investment capital.
You might not think that a U-Haul truck could be a harbinger of an improving business climate, but dig beneath the numbers and you see a clear pattern emerging.
From January to July of this year, Greater Chicago saw an influx of new residents from places like Milwaukee, Indianapolis and Detroit. According to U-Haul, one-way rental data during the first six months of 2025, these Midwest cities ranked as the top places of origin for these relocating renters. St. Louis and Dallas also placed in the top five.
This new data corroborates a longer-term migration pattern uncovered recently by Hamilton Lombard of the Weldon Cooper Center for Public Service at the University of Virginia. A top demographic researcher, Lombard discovered the places that are attracting the largest numbers of new residents among 25-to-44-year-olds. From 2020 to 2024, the Northern Illinois cities of Pontiac, Rochelle and Rockford all gained new residents among this cohort at a rate of 2% or greater.
When significant pockets of your state gain the most coveted workforce demographic in sizable numbers, it shows that what you are doing in economic development is making a positive difference.
Attractive meeting places are common in Illinois, and the new Chicago Fire stadium will be no different.
Rendering courtesy of Chicago Fire FC
For Illinois, this new wave of talent in-migration indicates that growing employers are attracting the kind of workers that most places want to hire. And in Illinois, corporations are adding new workplace facilities faster than any place in America other than Texas. With 664 corporate facility investment deals in 2024, Illinois outpaced 48 other states in this key economic development performance metric — and this was the third year in a row that the Land of Lincoln achieved this lofty milestone.
Paulina San Millan, senior vice president of business development for the Illinois Economic Development Corporation, says that a key factor in her state’s sustained run of success is the fact that “no one industry dominates. We support all sectors. The state’s investment in workforce keeps attracting companies. They can come to Illinois knowing that the worker training programs will be here and that we have already trained and equipped a ready workforce. We have one of the highest rates of workers with a college degree or higher in the nation. That makes a big difference.”
Assets Abound in Illinois
Elizabeth Gichana, vice president of life sciences business development for the Illinois EDC, adds that “our infrastructure is a major factor. We have two major airports in Chicago in O’Hare and Midway. We have sufficient water and other essential utilities. We have top-tier research institutions, national labs and a top-rated community college system.”
John Boyd Jr., principal of The Boyd Company Inc., a national site selection consulting firm with offices in Florida and New Jersey, put it this way: “Chicago remains a compelling city for national corporate headquarters for a number of reasons. I would first point to the role that O’Hare plays in connecting Chicago-based companies to the national and global marketplace. Added to O’Hare’s role is Chicago’s fundamental advantage of its mid-continent location. Also, Chicago has a long pedigree as a leading U.S. head office city which has engendered a deep pool of head office support services in fields like accounting, finance, management consulting, engineering, advertising and public relations.”
State government works hard to make Illinois affordable, he adds. “Chicago has a generous incentive program tailored to attracting a corporate headquarters,” Boyd says. “On the operating cost front, we have always characterized Chicago as not overpriced.”
The new AIM Tax Credit rewards existing and new manufacturers when they grow in Illinois, providing a tax credit of 3-7% based on the size of their investment.
Source: Illinois EDC
In fact, when The Boyd Company’s BizCosts recently ranked the top 20 headquarters markets in the U.S. on their annual operating costs, the Chicago Central Loop district came in at No. 5 among the least-expensive office markets in the nation.
“The state’s investment in workforce keeps attracting companies. They can come to Illinois knowing that the worker training programs will be here and that we have already trained and equipped a ready workforce. We have one of the highest rates of workers with a college degree or higher in the nation. That makes a big difference.”
— Paulina San Millan, Senior Vice President, Illinois EDC
As Boyd notes, Illinois has always maintained a competitive edge when it comes to incentivizing businesses to locate or expand in the state. The new balanced-budget package passed in Illinois advances the state incentives programs even further. Among other key measures, the legislation included the following: The Advanced Innovative Manufacturing for Illinois (AIM) Tax Credit offers tax incentives to companies investing heavily in facilities and equipment, and is especially geared to benefit small and mid-sized firms. A new CapX Tax Credit rewards existing manufacturers in Illinois by offering a tax credit ranging from 3% to 7% based on the size of their investment.
The most important capital investment program in the FY26 Budget was the State’s Surplus to Success Program ($300M) and the targeted site readiness funding ($200M). This paragraph should be reworked to reflect the state’s investment in site readiness.
As one leader at the Great River Economic Development Foundation said, “This is a forward-thinking Economic Development Package that brings targeted incentives and strategic investments aimed at strengthening Illinois’ business community.”
Illinois maintains other advantages as well. For example:
- The state boasts five international airports and seven additional commercial airports. O’Hare in Chicago offers the most flights of any U.S. airport.
- Illinois is the only state that has all seven Class I freight railroads.
- Chicago is home to the third largest intermodal port in the world.
- Illinois has the third largest Interstate Highway System in the U.S.
- Illinois has two major inland ports and 14 waterway ports.
A Leader in Innovation
Beyond these assets, Illinois is known across the world for the way it supports research, innovation and entrepreneurship. More than 200 spaces are now available to innovators across Illinois at places like incubators, coworking centers, accelerators, research centers and technology parks.
San Millan notes that “We have put $500 million into this sector [in the last fiscal year]. We understand quantum; and we know how fast these industries move in their decision making. We are seeing a lot of interest [from companies] domestically and from other countries who want to be part of the Illinois Quantum and Microelectronics Park on Lake Michigan in Chicago. These companies need places to go and they want to be in Illinois.”
San Millan adds that “having two national labs is key for us. That attracts interest from a lot of companies.” The Argonne National Laboratory in Lemont and the Fermi National Accelerator Laboratory in Batavia are both attracting global interest and inquiries, according to San Millan. Argonne specializes in advanced energy research, while Fermilab is devoted to research in particle physics.
As Elizabeth Gichana of Illinois EDC says, “We like to focus on what keeps us on the competitive edge.”
