More than 375,000 Illinoisans work at foreign-owned companies, 36% in the manufacturing sector, according to the Global Business Alliance (GBA), which tracks and advocates for foreign direct investment (FDI) nationally and at the state level. That number represents 7.4% of total employment in Illinois. Moreover, FDI employment grew 8% from 2016 to 2021, according to GBA, whereas overall private-sector employment fell 3% during that time.
Intersect Illinois, a public-private partnership that helps companies locate in or expand in Illinois, notes that the top five international companies in Illinois alone employ roughly 50,000 people. These include Compass Group based in the U.K., Otto Krahn Group (Germany), Canadian National Railway (Canada), Swiss Steel Group (Switzerland) and Schneider Electric (France). Companies based in these countries and Japan employ the most workers stemming from FDI in Illinois.
Other than being home to Chicago, the third largest U.S. city by population and the top Midwest commercial hub, why do so many foreign companies invest in Illinois?
“The number of jobs created by global investment in Illinois has been growing for years, beating the national average in the concentration of these jobs. Clearly, global investment is a critical component of Illinois’ economy.”
— Jonathan Samford, Executive Vice President, Global Business Alliance
Checking All the Boxes
“International companies make the decision to invest in states like Illinois for access to world-class universities, a talented workforce, an unrivaled consumer market and quality infrastructure,” says GBA Executive Vice President Jonathan Samford.
More than 190 higher education institutions are in Illinois that combined graduate more than 825,000 annually. That’s a deep labor pool for foreign-owned and domestic companies to draw from.
And Illinois is well situated and equipped for companies bringing materials in and shipping finished products out. All of the Class I railroads operate in Illinois, and the state is home to eight foreign trade zones. Chicago O’Hare International Airport has nonstop flights to more than 200 destinations worldwide, which makes visiting the parent company overseas a cinch. O’Hare and Chicago/Rockford International Airport are among the largest U.S. cargo airports. These are key assets for manufacturers and other employers.
“International companies investing in Illinois help bolster America’s manufacturing sector,” says GBA’s Samford. “Of the 376,700 workers employed by these international companies in Illinois, nearly 40% have advanced manufacturing jobs. The great thing about these investments is that they aren’t just for two or three years; they are decades-long commitments. Zurich Insurance, for example, has operated in the U.S. for over a century.
“The number of jobs created by global investment in Illinois has been growing for years, beating the national average in the concentration of these jobs,” adds Samford. “Clearly, global investment is a critical component of Illinois’ economy.”
Record Export Sales in ’23
In June, Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity announced record export sales of more than $78 billion in 2023. Illinois is the fifth-largest exporting state in the U.S. and the top state for exports in the Midwest.
Canada is by far the top destination for Illinois exports, with $20.5 billion worth heading north of the border in 2023. Mexico is the second-largest export market at nearly $13 billion, followed by Germany ($4.5 billion), China ($4.41 billion) and Australia ($4.40 billion). Top exports to Canada are machinery, chemicals and transportation equipment.
Also in June, Governor Pritzker and Ontario Premier Doug Ford signed a Memorandum of Understanding that a statement from the Governor’s Office says “strengthens collaborations to attract trade opportunities and investments for both Illinoisans and Ontarians. With a focus on manufacturing, energy, agriculture, and automotive industries, the MOU aims to improve workforce development, expand innovation and technology, and grow the total Illinois-Ontario trade value, which is already valued at over $19.5 billion (USD).”
