< Previous58 I N T E R S E C T IL L I N OI SP H A R M A C E UT I C AL SI N T E R S E C T I L L I N O I S 59Australian-owned CSL Behring, a multi-national pharmaceutical firm, is the biggest manufacturing employer in Kankakee County, Illinois. Fresh off an expansion that cost close to a quarter-billion dollars, the company is about to launch what will likely be the largest investment in an existing business in the county’s history.CSL is a Melbourne-based maker of medication derived from plasma. The company’s biotherapies treat numerous disorders, including hemophilia and hereditary angioedema. The Kankakee County plant, which currently employs about 1,100 workers, also produces Zemaira, a medication used to treat the inherited disorder, Alpha-1. “We are building buildings to satisfy the needs of the patients who rely on these medications,” says plant manager and senior vice president Tricia Stewart. “This is about patient needs and demand for our product. These are life-saving medications that go around the world.”To accommodate the new expansion, CSL Behring purchased the 74-acre former Bunge Edible Oil plant property in Bourbonnais Township, next to its campus. Company officials are not yet giving away details of the planned expansion, but they say it is so extensive that it could take 12 years to complete. Officials with knowledge of the project confirm that it’s highly ambitious.“We estimate jobs in the thousands and total investment in the billions,” says Mark Peterson, president and CEO of Intersect Illinois, the privately funded, statewide economic development organization that is charged with marketing the state and recruiting new companies.“The company has big plans for the former Bunge site although nothing has been made public,” says Stewart, adding that “We are really setting ourselves up for the future. We plan on bringing more and more of our products here to Kankakee.”The company will begin with a reported 1.8-million-square-by G A R Y D A U G H T E R SALife-saving drug companies from around the globe choose Illinois for location and talent.Life-saving drug companies from around the globe choose Illinois for location and talent.60 I N T E R S E C T IL L I N OI Sfoot addition to its campus called CSL South, where it’s completing construction of a $240-million, 300,000-square-foot, seven-story tower building. The campus will spread out from the tower to include manufacturing and processing buildings built during the next decade.CSL Behring isn’t the only foreign-owned pharmaceutical giant that’s betting on Illinois. Vetter, a Germany-based contract development and manufacturing organization (CDMO) that specializes in aseptic filling of syringe systems, cartridges and vials, is making a huge investment in Des Plaines, just five minutes from Chicago’s O’Hare International Airport.Vetter — which signed economic development agreements with the Illinois Department of Commerce and Economic Opportunity and with the City of Des Plaines — is destined to invest some $320 million and create at least 300 to 500 new jobs. The company plans to reuse two existing buildings on property that was owned by the Salvation Army, and construct six new buildings, for a total of over 1.2 million sq. ft. of building area.“Vetter will create hundreds of quality, high-skill jobs for Illinois residents, growing their presence in Illinois with lots of opportunity for future growth,” Illinois Governor Bruce Rauner said. “The collaboration between the State, the ILBEDC (Illinois Business and Economic Development Corporation) and our local partners was instrumental in attracting an investment of this scope and magnitude, which will reap economic benefits for Illinois for years to come.”Peter Soelkner, managing director of Vetter Pharma International GmbH, expresses optimism about the company’s Chicagoland expansion.“Des Plaines,” says Soelkner, “offers a diverse business environment that is focused on success and growth. We discovered a workforce in Greater Chicago that is committed to exceptional customer service. We have the feeling that business gets done here, and the local workforce is well educated and hardworking. And of course, the high quality of life that we have experienced so far is an important additional factor, being relevant for our customer relations and employees’ well-being.”World HealthChicago is the magnet for Illinois’s pharmaceutical industry. Dominating Chicago’s pharmaceutical cluster are large, publicly traded multinationals such as Baxter International, Abbott Laboratories, Horizon Pharma, Abbvie, Medline, Astellas, Fresenius Kabi and Takeda.“We literally have 50-plus of the top pharmaceutical companies in the world have either operations here, headquarters here or “We discovered a workforce in Greater Chicago that is committed to exceptional customer service. We have the feeling that business gets done here, and the local workforce is well educated and hardworking. And of course, the high quality of life that we have experienced so far is an important additional factor, being relevant for our customer relations and employees’ well-being.” — Peter Soelkner, managing director of Vetter Pharma International GmbHI N T E R S E C T I L L I N O I S 61major operations of some sort here,” says Peterson.In addition, the federal government maintains a significant footprint with two research sites, Argonne National Laboratory in Woodbridge and Fermi National Accelerator Laboratory in Batavia. Argonne and Fermilab boost the state’s R&D activity by more than $1 billion annually while also contributing critical resources to, and collaborating with, the business and academic R&D communities.Among other resources to fuel research and collaboration are the Illinois Science + Technology Park, a 24-acre campus complete with an incubator for lab-based startups, and Illinois Medical District, one of the largest urban medical districts in the U.S.“It is a very strong cluster for us and it’s growing,” says Peterson. “I think together with the strength of colleges and universities and the strength of top institutions like Northwestern and the University of Chicago and the University of Illinois, it’s a very strong cluster of science and technology and life sciences and biopharmaceuticals that’s really a strength for us.“Chicago is a global city and pharmaceuticals is a very globalized business. Many of these companies are foreign owned. They’re Japanese, they’re Italian, they’re German, they’re from all over the world. The other thing is the logistics. When you’re flying people all over the world, in and out of O’Hare, it’s very simple. It’s the same with moving product. If you have to move product, whether it’s by rail or highway or waterway, there’s really no better place in the country to do that than right here in the Chicagoland area. We have a lot of the pieces and parts that make pharmaceutical companies very, very successful here. “When you compare it to other strong clusters on the East Coast or West Coast, the cost of doing business is much less here. From a cost standpoint, especially bringing new companies from the foreign markets into the United States, I think we can make a compelling case for why they should do it here.” “Chicago is a global city and pharmaceuticals is a very globalized business.” — Mark Peterson, president and CEO of Intersect IllinoisImage: Getty Images62 I N T E R S E C T IL L I N O I SA G RI C UL T U R Eby MAR K AR E N Dgriculture is not just our largest industry; it is Illinois’ most important legacy,” Gov. Bruce Rauner told a gathering of farmers at Big Prairie Farms, a ,-acre operation in Carmi, in southeastern Illinois, in late December. “ at is why it is so important that we remain responsive to the people who own the state’s , farms. We need their businesses to thrive and we need to help them grow by encouraging innovation and education.”About . million acres, or roughly percent of the state’s land total, are farmed in Illinois. e state is a leading producer of soybeans, corn and swine. And Illinois ranks third nationally in the export of agricultural commodities, with $ . billion worth of goods shipped to other countries annually, according to the Illinois Department of Agriculture.“Agriculture is at the heart of our economy,” said Rauner, who earlier in declared a harvest emergency to help speed crop transportation after rain delays a ected both planting and harvest. “My administration will continue to ght for a business climate that supports farmers and bolsters Illinois’ economy.”Following are snapshots of the Land of Lincoln’s agriculture industry that illustrate why the governor is so focused on this vital industry:“AAgrarian Agenda Blueberry Hill Farm in the Shawnee HillsPhoto by Heather OvermanI N T E R S E C T I L L I N O I S 63Economic Engine• Illinois’ agricultural commodities generate more than $19 billion annually. • Corn accounts for 54 percent of that total; soybeans contribute 27 percent, and the combined marketing of livestock, dairy and poultry generates 13 percent. The balance comes from sales of wheat and other crops, including fruits and vegetables.What Illinois Farms Produce• Illinois is a leading producer of soybeans, corn and swine. • Other agricultural commodities include cattle, wheat, oats, sorghum, hay, sheep, poultry, fruits and vegetables. • Illinois also produces several specialty crops, such as buckwheat, horse radish, lima beans, grapes and Christmas trees.Agricultural Competitiveness• More than 2,000 miles of interstate highway and 34,500 miles of other state highway make trucking of goods fast and efficient. • Chicago is home to the largest rail gateway in the nation, connectinag eastern and western United States. • The state boasts some 1,100 airports, landing areas and heliports, including Chicago’s O’Hare International, through which more than 65 million travelers pass annually. • Illinois’ 1,118 miles of navigable waterways, including the Illinois and Mississippi rivers, make barge traffic an excellent option for shipment of grain to the Gulf of Mexico.To Market• Illinois is home to 2,640 food manufacturing companies.• It ranks first in the nation with $180 billion in processed food sales. Most of these companies are located in the Chicago metropolitan area, which contains one of the largest concentrations of food-related businesses in the world.• Illinois’ agricultural commodities also provide the base for such products as animal feed, ink, paint, adhesives, clothing, soap, wax, cosmetics, medicines, furniture, paper and lumber. • Each year, 274 million bushels of Illinois corn are used to produce more ethanol than any other state — about 678 million gallons.Exports• Illinois ranks third nationally in the export of agricultural commodities with $8.2 billion worth of goods shipped to other countries. • Exports from Illinois account for 6 percent of all U.S. agricultural exports. • Illinois is the nation’s second leading exporter of both soybeans and feed grains and related products. • Approximately 44 percent of grain produced in Illinois is sold for export.Farm Factoids• As of February 2017, Illinois had 72,200 farms. • Illinois farmland covers nearly 27 million acres — about 75 percent of the state’s total land area. • The average size of an Illinois farm, including hobby farms, is 358 acres. • Most farm acreage is devoted to grain, mainly corn and soybeans. Nearly 10 percent of Illinois farms have swine. Beef cows are found on about 23 percent of farms, while about 3 percent have dairy cows. The Industry withIndustry withF OO D P R OC E S S I N Gby MAR K AR E N Dor a city that’s synonymous with delicious foods — Chicago deep dish pizza, Chicago-style hot dogs and of course its classic Italian beef — it should come as no surprise Illinois knows a thing or two about making good food. Illinois is America’s top state for processed food sales; expansions at food processing facilities are commonplace in the state. Berner Food & Beverage, a leading private label and contract manufacturing supplier of shelf-stable beverages, dips, sauces and aerosol cheese, opened in September a newly expanded manufacturing facility in Dakota that triples its manufacturing space. “We have not only tripled our manufacturing footprint with this expanded facility, we have increased our most important asset, our employees — we have been able to grow from employees, adding over jobs in our local area, and we’re still continuing to encourage job creation in our area,” noted Kurt Seagrist, Chief Executive Officer. The expansion increases the facility footprint from , square feet of manufacturing FRana Meal Solutions is relocating its headquarters to Bartlett, IL.Photos courtesy Rana Meal Solutions and Getty Images64 I N T E R S E C T IL L I N O I SwithwithAAAAAAppppppApAAApApApAAApAApAAApApApAAApA ppppppppppppppppppeeepepppepepepppeptttttttttttteteeeteteteeetetitttitititttitttttttttttttttttttttttitttitttitttitititttitttitttitttitttitttitttitititttitttitttiteeetetttetetetttetI N T E R S E C T I L L I N O I S 65space to more than 285,000 square feet; warehousing space increased 170,000 square feet.Two food processing expansions are under way in Bartlett, at the Brewster Creek Business Park. Get Fresh Produce opened an 86,000-square-foot facility there in 2009. It plans to build a 151,000-square-foot building on a 9.25-acre site adjacent to that. Rana Meal Solutions, a producer of pasta products, is relocating its headquarters from Oakbrook to the park, where it is building a 326,000-square-foot manufacturing facility.Natural RefrigerationSun Basket, a meal-kit service featuring organic produce and clean ingredients, has expanded its southern Illinois distribution center in the massive underground cave known as Rock City.“Sun Basket’s expansion in Illinois is stimulating regional and statewide economic growth,” noted Gov. Bruce Rauner at the May 10th opening ceremony. “This is a great example of a quality company investing in the natural assets, talented workforce, and geographic advantage that Illinois provides. Their expansion will enable the company to deliver more healthy, quality meals across the country, and it will pay off in new jobs for the people of Illinois.”The Sun Basket facility employs nearly 400 employees, 90 percent of whom are from Illinois. The company’s expansion will increase investment in the region by adding more than 100 new jobs. Sun Basket’s distribution network allows meal kit delivery to 98 percent of the continental U.S.Admiral Parkway, the site developer, recently upgraded and retrofitted the cave for Sun Basket’s expansion. The natural cooling properties of the Rock City facility provide energy usage and cost savings, which aligns with Sun Basket’s company commitment to environmental sustainability. “With the launch of this new facility, we now have the ability to support over $1B revenue and build the pre-eminent nationwide healthy meal kit service in the U.S.,” said Adam Zbar, CEO and co-founder of Sun Basket. “We were particularly excited in partnering with Rock City given its unique underground cave location adds to our focus on sustainability, which is a core part of our business model.” “Illinois is a leader in the production of agricultural commodities and is where a significant amount of processing, packaging, and distribution occurs; the state ranks first by processed food sales and fifth by food and agriculture exported product value.” — Excerpted from FARM (Food and Agriculture RoadMap) Illinois, a 2015 report from the FARM Illinois Leadership Council, a blueprint for enabling Illinois and the Chicago region to become the global hub for food and agriculture system innovationILLINOIS DAIRY EXPORTSBY THE NUMBERS630Dairy farms35Dairy plants383Illinois jobs created by dairy exports$41 millionin dairy exports$92 millionIllinois economic impact from dairy exportsSource: Illinois Milk Producers’ Association66 I N T E R S E C T IL L I N OI STThe demise of manufacturing has been predicted for years, but the sector is busier fulfilling today’s orders than doomsday prophecies. Since spring 2015, among the more than 27,600 corporate facility investments tracked around the world by the Conway Projects Database maintained by Site Selection magazine publisher Conway Inc.’s analytics division, nearly 52 percent have involved a manufacturing component.Manufacturers in Illinois account for 13.39 percent of the total output in the state, employing 9.5 percent of the workforce — there were 571,800 manufacturing employees in the state in 2016.Even the places that seem to have left manufacturing behind long ago really haven’t. Lest you think Greater Chicago’s economy consists of software developers, brewpubs and co-working spaces full of video-game inventors, a look at that same database shows that nearly 31 percent of all projects tracked in the metro area since 2001 have a manufacturing component. Home to more than 363,000 manufacturing jobs, the region accounted for more than 60 percent of the state’s manufacturing employment, establishments, and output in 2016.The momentum continues. According to a new study released in summer 2018 by the Century Foundation and the University of Illinois at Chicago’s Great Cities Institute, between April 2017 and March 2018, manufacturing yielded more than 58,000 job postings, ahead of such sectors as retail and even transportation/warehousing, a regional staple.A D V AN C E D MAN U F A C T U R I N Gby A D A M BR UN STBLAZINGFUTUREto theaTRAILBLAZINGFUTUREto theaTRAILBLAZINGFUTUREto theaTRAILBradley University in PeoriaPhoto courtesy of Bradley UniversityI N T E R S E C T I L L I N O I S 67From 2001 to 2016, the Chicago region lost nearly 170,000 manufacturing jobs and the rest of Illinois lost more than 100,000 manufacturing jobs. But at the same time, output from manufacturing in the Chicago region and in other Illinois metro areas rose by nearly 5 percent over that same period. That pretty much defines what advanced manufacturing can do.“With productivity rates nearly twice as high as all other industries, advanced manufacturing industries contain large concentrations of skilled workers in science, technology, engineering, and mathematics (STEM) fields,” explains a report from the Chicago Metropolitan Agency for Planning. “Employment in advanced manufacturing industries, such as biopharmaceuticals and electrical equipment, accounts for nearly 40 percent of metropolitan Chicago’s 360,000 manufacturing jobs. These jobs tally half of all manufacturing jobs in other Illinois metropolitan areas, and nearly 40 percent of all nonmetropolitan manufacturing jobs.”Most of those operations involve the sort of digital- and computer-enhanced processes that make old-style manufacturing into the “advanced” kind. But making skilled workers to make those things and run those processes could be the most advanced step of all.ICATT, TMA, IMEC, DMDII and YouA number of resources in Illinois have ramped up to do just that.Launched by the German-American Chamber of Commerce-Midwest, the Illinois Consortium for Advanced Technical Training (ICATT) apprenticeship program first caught fire with manufacturers in northern Illinois, and now has spread to more than 40 company partners, as well as a new outpost in southwestern Illinois near St. Louis, Missouri, connected to Southwestern Illinois College (SWIC).“The ICATT Apprenticeship Program combines company-specific knowledge, theory and hands-on learning to train a globally competitive workforce, and, ultimately, deliver a pipeline of skilled talent to the company,” said Mario Kratsch, head of the ICATT Apprenticeship Program, in a January 2018 announcement that the program had doubled its numbers of companies and apprentices in its second year of existence. “Our program is the only one in the Midwest fully benchmarked on the time-tested German Dual Education System, and we are elated that more companies are finding that the program is what they need to train and retain employees, so that their company can keep pace with market demands.”Founded in 1925, the Technology & Manufacturing Association (TMA) represents and supports manufacturers in the tri-state Chicago metro region. TMA has almost 1,000 members representing over 32,000 employees and nearly 26 million sq. ft. of manufacturing plant. In May, TMA saw 51 apprentices graduate from its own Related Theory program, a 70-year-old program that involves attending class two evenings a week for 28 weeks a year while “The ICATT Apprenticeship Program combines company-specific knowledge, theory and hands-on learning to train a globally competitive workforce, and, ultimately, deliver a pipeline of skilled talent to the company,”— Mario Kratsch, head of the ICATT Apprenticeship ProgramILLINOIS MANUFACTURING EXCELLENCE CENTER 2017 ECONOMIC IMPACT614companies assisted3,677jobs created and retained$411,367,826Aggregate ImpactNext >