How Illinois Competes to Win

Arecord-setting run of economic development wins has Intersect Illinois riding high and looking for more. To get a closer look at how Illinois lands game-changing capital investment projects, we turned to the leaders of Intersect Illinois — Chairman of the Board John Atkinson and Interim CEO Paulina San Millan.

Illinois has long been one of the manufacturing powerhouses of the country. What factors make it this way?

JOHN ATKINSON: Illinois’ rich manufacturing history has evolved into an advanced, technology-driven sector. We have the talent companies need, the infrastructure to move products efficiently and effectively, and the sites to meet so many diverse needs.

In terms of talent, we have a vast talent pool ready for manufacturing jobs coming out of our renowned universities, large community college system and training programs. As demand for manufacturing talent continues to grow, Illinois is investing in programs like Manufacturing Training Academies and Career and Technical Education (CTE) programs throughout the state that are preparing the next generation for jobs of the future.

In fact, Site Selection named Illinois the best state in the region for workforce development, recognizing its efforts to meet the demands of emerging industries such as electric vehicle manufacturing.

PAULINA SAN MILLAN: Companies are taking notice. For example, Rivian recently expanded its manufacturing operations in Normal, Illinois, where it employs more than 8,000, adding an additional 550 jobs and investing $1.5 billion to increase production; the state is working with Rivian on job training as a part of the expansion.

Our infrastructure also helps us lead in manufacturing. Whether it’s via road, air, port or rail, manufacturing companies can easily and efficiently transport goods. CNBC recognized this, naming Illinois’ infrastructure one of the best in the country in its 2024 Top states for Business rankings.

Finally, the state has ample available sites for manufacturing. Our Vetted Sites program highlights our best 200-plus-acre greenfield sites around the state, providing relevant site details that help inform location decisions.

Greater Chicago has won the Top Metro Award from Site Selection Magazine for a record 11 years in a row, and Illinois remains near the top of the state list each year. What are Chicago and Illinois’ secrets for remaining on top?

ATKINSON: It’s no accident Chicago has secured this huge honor for corporate investment 11 times in a row, or that the state has continuously been ranked among the top. Illinois is home to one of the country’s most diverse economies, where multiple industries thrive. The Chicago metro area provides access to diverse and skilled talent, global connectivity, robust infrastructure, and a world-class business environment, at a low cost compared to other big cities. From its thriving tech community to life sciences to financial services, the Chicago metro provides an attractive value proposition for companies looking to grow.

SAN MILLAN: In Illinois we’ve had major project wins, from Gotion investing $2 billion in its electric vehicle battery manufacturing plant, to Rivian to Lion Electric investing more than $131 million in the largest all-electric commercial vehicle production plant of its kind in the U.S. The momentum is real.

Illinois has nearly 2,000 major corporate headquarters operations statewide. Talent drives HQ decisions of companies. How does Illinois’ talent stack up against its competitors?

SAN MILLAN: Our talent and workforce are key reasons companies choose to locate or expand in Illinois. The state is home to some of the world’s top universities and the country’s third-largest community college system. We are home to two of the top business schools; the University of Illinois alone graduates more engineers than Caltech, MIT and Stanford combined.

ATKINSON: Additionally, we have some of the most unique and productive workforce training programs in the country, where we bring together public and private sectors to benefit both. An example of this is TCCI and Richland Community College’s collaboration. The state provided more than $20 million in capital grants to the City of Decatur and Richland Community College to build the first-of-its-kind Climatic Center for Innovation and Research as well as the EV + Energy Workforce Training Academy. Through the program, Richland will have three classrooms located within TCCI for an immersive hands-on learning experience, with cutting edge R&D with state-of-the-art climatic testing capabilities for EVs. Illinois truly is at an advantage when it comes to talent.

Does Illinois have any new incentive programs at its disposal to help expanding companies?

ATKINSON: Under the leadership of Governor Pritzker, Illinois is building its toolkit of incentives for companies that invest and bring jobs to the state. For example, in 2024 Illinois’ legislature signed a package of incentives that will spur investment and sharpen the state’s competitive edge in high-growth industries, such as quantum, semiconductors, EVs, clean energy and film. This omnibus package is anticipated to generate more than an estimated $21 billion over the next 30 years.

Programs such as the REV (Reimagining Energy and Vehicles) Act have helped to attract significant investment and thousands of good-paying jobs from EV companies including Rivian, Gotion and TCCI. At the same time, those companies noted the state’s infrastructure and workforce as reasons for growing here, along with the state support.

SAN MILLAN: But while incentives are a key part of the state’s economic development toolkit, they are just one piece of the puzzle. Our assets — world-class workforce and talent, infrastructure and transportation, and our supportive ecosystem, when combined with incentives, provide a complete package for companies looking to expand or relocate.

What is happening on the available sites front in your state?

“Governor Pritzker has made a strong commitment to economic development, and under his leadership, Team Illinois has come together to attract new businesses — and that means prioritizing site readiness.”
— John Atkinson, Chairman of the Board, Intersect Illinois
 

ATKINSON: Governor Pritzker has made a strong commitment to economic development, and under his leadership, Team Illinois has come together to attract new businesses — and that means prioritizing site readiness.

Additionally, Illinois’ efforts in the past year to further modernize its infrastructure for future development opportunities underscore its commitment to site readiness. The Department of Commerce and Economic Opportunity (DCEO) also announced $42 million in funding for a new Regional Site Readiness Program to prepare for industrial development across the state. This program complements DCEO’s Megasites Investment program, which aims to make the state more competitive for large-scale industrial investments.

SAN MILLAN: At Intersect Illinois, we continue to add to our Vetted Sites program that identifies top acreage greenfield sites and reviews characteristics including utilities, logistics, permitting and entitlement, workforce, ownership, local and state incentives, and environmental and topographic conditions. This program helps location decision-makers get up to speed quickly on sites that would meet their needs. We are paving the way for future growth.

Entrepreneurship and innovation play a major role in economic development. How well does Illinois do in fostering and supporting these areas and in ensuring a smooth pathway for startups?

ATKINSON: Illinois has always been, and will continue to be, a hub for innovation and that can’t be more apparent than in its recent efforts to solidify the state as the world’s hub for quantum computing. Quantum computing has the potential to change the world, and we want that to begin in Illinois. That is why the state is investing in its bold vision to build a $500 million mega-campus to catalyze rapid innovation.

SAN MILLAN: Bedrock Materials is another great example of a startup choosing to locate in Illinois because of the state’s unmatched resources for innovation. Originating out of Stanford, the battery technology startup chose to locate its R&D headquarters in Chicago, noting the state’s access to talent, its rich EV and manufacturing ecosystems, and its tremendous R&D community, which includes Argonne National Laboratory and Fermilab.

Additionally, companies in the burgeoning sustainable aviation fuel (SAF) industry have found Illinois to be a favorable place to start up and commercialize. Companies like LanzaJet have chosen Illinois because of resources including the state’s SAF tax credit, its robust ecosystem (including strong R&D), its wealth of feedstocks, its skilled biofuels workforce, and access to a large customer base.

What impact will the new Quantum Campus have on Illinois and the nation?

ATKINSON: The Illinois Quantum and Microelectronics Park (IQMP) is the result of Illinois’ bold vision for a first-of-its-kind campus to bring together both private and public sector entities to catalyze rapid innovation and further establish the growing industry here.

The campus will attract new businesses, and support the growth and adoption of technologies, putting the state in a strong position to attract additional investments around quantum and other initiatives. DARPA has committed to being a part of the campus, announcing it will house its Quantum Proving Ground applied research program at the IQMP to prototype and test promising quantum technologies. PsiQuantum, a quantum computing company, is our first anchor tenant, having committed to building, housing and operating a full-scale, fault-tolerant quantum computer here.

Quantum technologies have the potential to change the world by solving some of the biggest challenges in health care, energy, transportation, national security and more. Here in Illinois, we have the existing ecosystem and resources to become the global hub for quantum, and the IQMP will help bring investment, access to good jobs, and economic development in our communities.

Chicago has long been America’s logistics hub. What makes it this way, and are there any new investments in this area?

“You can reach nearly the entire North American market within a four-hour flight or 83% of the continental U.S. within a two-day drive of Illinois.”
— Paulina San Millan, CEO, Intersect Illinois

SAN MILLAN: We’ve touched on numerous industries that are strong in Illinois — from manufacturing, to agribusiness, to technology. All of these need two things — talent and infrastructure. Our transportation, distribution and logistics (TDL) infrastructure is rivaled by few.

You can reach nearly the entire North American market within a four-hour flight or 83% of the continental U.S. within a two-day drive. Additionally, we have the third-largest highway system, are the only place where all Class I railroads meet in two places and are home to three major inland ports with access to the Atlantic Ocean, Great Lakes and Gulf of Mexico.

This central location, unparalleled access and supportive state government make it a natural destination for TDL. These are also why we are fourth in the nation for the number of transportation and warehousing establishments.