< Previous18 I N T E R S E C T IL L I N O I Ss President and CEO of Intersect Illinois, Mark S. Peterson serves as the state’s chief economic developer. He comes to the job with impeccable credentials.Prior to accepting his role leading Intersect Illinois, he served as President and CEO of the Greater Rochester Enterprise, successfully recruiting scores of new companies, creating thousands of new jobs and securing more than $ . billion in new investments in Upstate New York.In the following interview, Peterson discusses the approach that Intersect Illinois takes to helping companies expand and thrive in the Prairie State.What have been the three biggest project wins in Illinois over the past year?PETERSON: e project with the biggest impact is CSL Behring, a pharmaceutical company, in Kankakee. It will take years to build out the entire . -million-square-foot campus. It will be well over a billion dollars in capital investment and will create thousands of new jobs. Other top projects of recent note include Nucor Steel. is was an existing rm that was a threat to leave our state. Instead, they will add jobs and invest $ million into an expansion in steel manufacturing right here in Illinois. We brought all the partners to the table to make that deal happen. In addition, Facebook just announced it is taking up additional oors in Chicago — with no incentives at all. ey told us that they want to grow in Illinois due to the talent here. And they are not alone. Google is growing here; Microsoft is too. A very vibrant millennial population is here with a lot of technology talent. We have many great universities here, and grads from Big schools want to move to Chicago. All the tech rms know that. ese highly skilled graduates have opportunities on either coast. But New York is a very expensive place to live. ey know that they can do very well in Chicago and have a great lifestyle. As a result, a lot of our large companies are moving from the suburbs back to the city. What are your top economic development priorities for the year ahead?PETERSON: Our top priorities are targeted strategies for foreign direct investment. When I got here a year ago, I was brought in to I N T E R V I E W W I T H M A R K P E T E R S O NSeasoned economic development pro takes the helm at Intersect Illinois.by R O N S TA R N E RALeadingtheLeadingtheLeadingChargeLeadingChargeLeadingLeadingtheChargeI N T E R S E C T I L L I N O I S 19ramp up the organization. Since then, the pipeline of projects for Illinois has increased by almost percent. We are now working on over attraction projects. It was about to a year ago. We will continue to be very aggressive in the FDI arena. What business climate improvements has Illinois adopted recently?PETERSON: We are starting to get our scal house in order. And when you look at the amount of regulation that has been reduced in the last two to three years, a lot of unfriendly business regulations have been eliminated. ere is some old stu that needs to be modernized. at is being done here now. You are seeing that in the energy and nancial and manufacturing sectors. What are your state’s fastest-growing industries right now?PETERSON: Technology including ntech, pharmaceutical, traditional manufacturing, and food and agriculture. We have more patents in food-related industries than anyone else. We have accelerators and incubators in other sectors too. We get companies coming from other countries, and we help them grow. What are some unheralded sectors that are emerging as an economic force in Illinois?PETERSON: We are in the center of this whole blockchain and cybersecurity work. I see that being an industry sector exploding soon. Also, software and logistics. Amazon hired its ,th employee in Illinois this year. e magnitude of the shift happening in Illinois now — in automation, arti cial intelligence, cybersecurity, blockchain, etc. — a lot of players are here in this sector.How important to Illinois’ economy is FDI and trade?PETERSON: It is very signi cant. We are the th largest economy in the world. We are the dominant trading partner in the Midwest by a large margin. Over , foreign-owned companies do business in Illinois. at is the largest concentration in the Midwest. e Governor has done three overseas trade mission trips already this year. We will drive the FDI strategy very hard. Over percent of our projects in the pipeline right now are FDI. “We are now working over 100 attraction projects. It was about 18 to 20 a year ago. We will continue to be very aggressive in the FDI arena.” — Mark Peterson, President and CEO, Intersect Illinois20 I N T E R S E C T IL L I N O I SC OV E R S T O R Y Illinois is North America’s undisputed leader in FDI.by R O N S TA R N E Rby R O N S TA R N E RWORLD CHANGERSPhoto: Getty ImagesI N T E R S E C T I L L I N O I S 21hen Japanese firm DMG MORI announced in July that it would relocate its North American headquarters to Chicago, the move confirmed what many business leaders already knew: Illinois is a global leader in foreign direct investment.With ,-plus foreign companies operating in Illinois, generating over $ billion in FDI projects, the momentum of global deal flow is clearly on Illinois’ side.“We have a strong support network for international companies. We have over trade-based organizations, and we have tremendous connectivity through O’Hare and Midway international airports,” says Andrea Zopp, president and CEO of World Business Chicago. “With direct international flights a day, no other place in the country can compete with what Illinois has to offer foreign companies.”hen Japanese firm DMG MORI announced in July that it would relocate its North W22 I N T E R S E C T IL L I N OI SThe numbers tell the story:• More than 80 international consulates are based in Illinois.• More than 40 distinct ethnic communities have a population of at least 35,000 or greater in Illinois.• Of the 1,800-plus foreign firms that call Illinois home, many are household names such as Novartis, Ricoh, Bombardier, Siemens and BP.• Illinois ranks No. 5 in the U.S. for number of employees supported by U.S. subsidiaries of foreign-owned companies.• Illinois boasts eight Foreign Trade Zones.The top countries for FDI in Illinois are the UK, which supports 63,564 jobs in Illinois; Japan, which supports 47,232 jobs; and Germany, which accounts for 36,702 jobs. Canada ranks fourth with 36,143 jobs, while France ranks fifth with 20,018.Intersect Illinois recently helped welcome the newly appointed Japanese Ambassador to the United States to Illinois on a visit that focused on furthering the state’s business ties to Japan. Shortly thereafter, DMG MORI, which provides innovative machine tools to customers worldwide, selected Chicago for its new North American headquarters.“Manufacturing is written in Chicago’s DNA, and today the sector is running on all cylinders,” Chicago Mayor Rahm Emanuel said. “Thanks to world-class institutions like Illinois Tech and global companies like DMG MORI, we are creating jobs today while ensuring the future of manufacturing in Chicago is even stronger than its past.”On that same day, the 2018 IBM Global Locations Trend report revealed that, for the sixth year in a row, Chicago leads the U.S. in FDI. The report also noted that Chicago has risen a spot to enter the top five cities globally in FDI.Chicago ranks first in North America in FDI and trails only London, Paris, Singapore and Amsterdam-Rotterdam in terms of the total number of FDI deals worldwide.“Chicago has ranked as the “No other place in the country can compete with what Illinois has to offer foreign companies.”— Andrea Zopp, President & CEO, World Business ChicagoI N T E R S E C T I L L I N O I S 23top city in North America for the number of significant foreign investment projects for six consecutive years,” said Roel Spee, global leader of IBM-Plant Location International. “Along with rising this year to a top five global ranking, this reinforces Chicago’s position as a prime city for global investment.”While Chicago is America’s top global hub, it is not the only place in Illinois that consistently attracts FDI. As the corresponding map on page 25 shows, Illinois’ expansive FDI network is spread statewide. Virtually every county in Illinois has at least one foreign-owned business operation, and most counties have more than one.Intersect Illinois notes that 40 percent of its active projects in the pipeline are of foreign origin. And with recent trade missions to Tokyo, China, Poland and Germany, Intersect Illinois anticipates landing more FDI deals very soon.“The bottom line is that we have the infrastructure and we have the base of talent that international companies need to be globally 24 I N T E R S E C T IL L I N OI Scompetitive,” says Zopp. “That is why companies from around the world are coming here. We have the number one law school and the number one business school. We have over 140 languages spoken in our public schools. We have a very strong ethnic and immigrant community. And this is a great place to live.”Illinois regularly strikes agreements with other countries and cities abroad to further business ties. “We have agreements with Mexican cities and with London and Tel Aviv,” says Zopp. “A company from Ireland is looking at us right now. We will build on these relationships, and as we do, more FDI projects will end up in Illinois.”The China Chamber of Commerce will hold a large meeting this fall in Chicago, ensuring that Chinese business interests get a closeup look at what Illinois has to offer.“When companies come from other countries, they want to feel comfortable,” says Zopp. “We make sure they feel that way. We are very welcoming.” I N T E R S E C T I L L I N O I S 2526 I N T E R S E C T IL L I N O I SBOARDING PASSto a Brighter FutureBOARDING PASSto a Brighter FutureO’HARE AIRPORTO’HARE AIRPORTO’Hare’s big project is just one aspect of the state’smultifaceted role in international commerce.BOARDING PASSto a Brighter FutureBOARDING PASSto a Brighter FutureO’HARE AIRPORTO’HARE AIRPORTO’Hare’s big project is just one aspect of the state’smultifaceted role in international commerce.BOARDING PASSto a Brighter FutureBOARDING PASSto a Brighter FutureO’HARE AIRPORTO’HARE AIRPORTO’Hare’s big project is just one aspect of the state’smultifaceted role in international commerce.new international terminal is part of an $ . -billion modernization at O’Hare International Airport in Chicago. ere are more than consulates and consuls general based in that city, with more honorary consuls scattered throughout the state from Swansea to Moline. e state’s roster of foreign investors is as strong and diverse as 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commerce.multifaceted role in international commerce.multifaceted role in international commerce.multifaceted role in international commerce.new international terminal is part of an $ . -billion is part of an $ . -billion modernization at O’Hare International Airport in Chicago. ere are more than consulates and consuls general based in that city, with more honorary consuls scattered throughout the state from Swansea to Moline. e state’s roster of foreign investors is as strong and diverse as its population.In other words, it’s safe to say Illinois is among the most globally connected states in the nation. at assertion received further con rmation in July , when the IBM Global Location Trends report identi ed Chicago — for the sixth year in a row — as the No. North American city for foreign direct investment (FDI), and among the top ve cities globally. e metro area is home to more than G L O B A L C O N N EC T I V I T Yby A D A M BR UN SImage: Getty ImagesAI N T E R S E C T I L L I N O I S 27, foreign-based companies, accounting for more than $ billion in FDI.Just before the news broke, Chicago Mayor Rahm Emanuel and Andrea Zopp, President and CEO of World Business Chicago, led an economic mission to China and Japan, partly to protect Chicago jobs threatened by a trade war. CRRC Sifang is building a $-million facility on the Southeast Side of Chicago that will assemble the Chicago Transit Authority’s newest rail cars and create more than factory and construction jobs. Emanuel met with Chinese Vice President Wang Qishan and CRRC Sifang executives, and announced afterward that the project will move forward, with Chicago employees soon traveling to China for training.While in China, the mayor and World Business Chicago also continued implementation of the Gateway Cities Agreement. In Japan, Emanuel signed the rst economic partnership between the Japanese government and a city anywhere in the world.“By creating economic partnerships around the world and growing our international network,” Zopp said in a release celebrating the IBM report’s ndings, “we ensure that Chicago leads on the global stage.” e region’s world-scale transport network helps ensure that status too. O’Hare is among only a few airports worldwide that rank in the top for both passenger volume and cargo tonnage. Total air cargo tonnage handled at O’Hare was approximately . million tons in , a nearly -percent increase over the previous record for the airport set in . In , O’Hare and Midway airports handled more than million passengers, also surpassing the previous record set in . Points AbroadGrant Klinzman, economic development press secretary for Chicago Mayor Rahm Emanuel, recently replied to a few questions about transport, trade and multinational commerce.From your recent economic mission to Asia, describe how business leaders perceived the city and the state of Illinois in terms of global connectivity, diverse talent base and multinational corporate presence.Grant Klinzman: Business leaders were impressed with Chicago’s talent base (high percentage of college graduates and diverse base), and the fact that Chicago will shortly be one of only ve cities in the world to have nonstop access to all major world continental groupings, as well as Chicago’s location at the center of North America’s air, transport and rail O’Hare’s $8.7-billion Terminal Area Plan (TAP) will provide the first major capital improvements to terminals in 25 years and the largest expansion in the airport’s history. “The O’Hare transformation is a boarding pass to a brighter future for Chicago,” said Mayor Rahm Emanuel.Photo courtesy of City of Chicago Aviation DepartmentNext >