The latest CNBC Top States for Business ranking puts Illinois in the top 10 states for infrastructure, one of the 10 broad areas of competitiveness used to construct the ranking. Among other factors, according to the methodology, the infrastructure component considers “the vitality of each state’s transportation system by the value and volume of goods shipped by air, waterways, roads and rail. We look at the condition of highways and bridges, the availability of air travel and the time it takes to commute to work.”
Those infrastructure assets are of keen interest to the more than 21,000 transportation, logistics and distribution companies doing business in Illinois, which combined employ more than 346,000 people and contribute close to $50 billion annually to the state’s economy. These warehouse, freight, 3PL and other players give companies in the Midwest a fast lane to the rest of the U.S. and the world, whether they’re bringing raw materials in or shipping finished products out.
Illinois had the second highest number of new or expanded logistics facility announcements between 2020 and 2024, according to the Conway Projects Database, and Chicagoland ranked first in the metros category (see charts). The Windy City has the largest inventory of big-box facility space (warehouse or distribution center of 200K+ sq. ft.) in North America (610M+ sq. ft.), according to the Illinois Economic Development Corporation.
Why Companies Locate Their Logistics Facilities in Illinois
Among the many logistics assets to be found in Illinois are all six Class 1 railroads, the third largest Interstate system in the U.S. by mileage, water access to the Atlantic Ocean via the Great Lakes and the Gulf with more than 1,000 miles of inland waterways and two of the country’s leading air cargo facilities — Chicago O’Hare International and Rockford/Chicago International Airports.
These and other assets, including Illinois being a leading national supplier of transportation, logistics and distribution talent, are why corporate investors are so bullish on Land of Lincoln locations.
Canadian National Railway Company (CN), for example, is investing about $170 million of its 2025 capital investment program in Illinois, the company announced in June. Included are track maintenance, upgrades at its Homewood Campus, network improvements and investments earmarked for its planned Chicago Logistics Hub and intermodal terminal in Grundy County, southwest of Chicago. CN employs approximately 1,600 Illinoisans and operates more than 1,200 miles of rail in the state.
“We believe that investing in our network is about building for the future. Our continued infrastructure investment in Illinois will help strengthen the resiliency and efficiency of our network across the state,” said CN President and Chief Executive Officer Tracy Robinson in a statement. “Our focus remains on providing exceptional service to our customers and supply chain partners, supporting strong economic growth for North America and across communities where we operate.”
CN expects the Logistics Hub to create 6,500 jobs at full buildout. At press time, the facility was still in the proposed stage, but “CN is continuing to advance the project and will be commencing some early earthworks this year to prepare the site for future construction,” says a company spokesperson.
A Natural for the Ag Industry
Rainbow North America, a division of China-based Rainbow Agro, announced plans in March to build a Partner Production Center as part of a multi-phase expansion in Champaign. The global crop protection products supplier says improving its supply chain is a project motivator.
The company says the new center will afford “diverse import routes to optimize supply chain logistics and predictability, multiple tech-enabled production lines for high capacity, quality herbicide formulations and comprehensive packaging solutions, including bulk, to service the Midwest market.”
“By expanding our production capabilities and enhancing logistical efficiency, we will facilitate the growth of our partners by simplifying an increasingly complex and aging supply chain ecosystem,” said Tom Lyons, General Manager at Rainbow North America, in a statement.
The company says Champaign was selected as the center’s location due to its “central positioning to serve Midwestern agriculture and its leadership as a center of excellence for AgTech innovation. Additionally, the region’s highly skilled talent pool and well-established logistical infrastructure will allow Rainbow to better serve partners with speed, efficiency, and reliability.”
In August 2024, Ollie’s Bargain Outlet opened its fourth and newest distribution center in Princeton, Illinois, to bolster its presence in the Midwest and to expedite plans to expand westward. The retailer operates stores in 31 states.
The facility spans over 615,000 sq. ft. and is positioned to play a crucial role in Ollie’s growth, according to the Pennsylvania-based company, initially servicing approximately 60 stores in nine states and eventually servicing more than 150 stores. The $75 million distribution center will create over 200 new full-time jobs.
