Why Illinois - Illinois Department of Commerce and Economic Opportunity

2013 Site Selection Top Metros and States • Chicago #1 • Illinois #3

Why Illinois?

Why Illinois?

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Why Illinois?

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Strong and diverse economy

Strategic location and world class

infrastructure

Abundant and highly-skilled workforce

Growth oriented tax and incentive programs

High Quality of Life

• Population: 12.8 million in Illinois

(2.7 million in Chicago )

• Illinois’ 2000 foreign firms employ more

than 350,000 residents

• Gross State Product $695 billion (2012)

5th highest GDP in the U.S.

Ranked 19th in the world against GDPs

GDP is larger than the GDP of Sweden and

Switzerland

• Illinois exports over $60 billion annually

Illinois has the 5th largest economy in the U.S.


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Agriculture

and Food

Illinois is a global leader in several industries.

Manufacturing

Bio-

technology

• 3rd largest manufacturing state; value added manufacturing totals $103.7 billion

• 582,900 manufacturing jobs in Illinois

• Agricultural commodities generate more than $13.3 billion annually

• Illinois ranks 6th in exports of agricultural commodities

• 2272 food processors in the state – 2nd largest manufacturing activity

• Illinois ranked #1 in the nation for biotech growth by Business Facilities

• Over 78,910 biotech jobs in the state

• More than 550 companies operate R&D facilities in Illinois

• Home to the world’s top life science companies including Abbott, ADM, Takeda

Technology

and R&D

• 20,000+ programmers in the Chicago area alone

• Home to 144 university research centers, 71 federal centers, 7 tech parks

• Argonne National Labs is one of the nation’s leading research centers on advanced

materials, chemical/energy technology and biotech

• University of Illinois has 2 of the nation’s leading centers dedicated to nanotech

Coal • 30 million short tons of coal produced annually; expected to double in a decade

• 22 current active mines in the state


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•  Illinois is home to 32 Fortune 500 companies (27 in Chicagoland area) – compared with 10 in Missouri, 9 in Wisconsin, 6 in Indiana, and 3 in Iowa

•  13 Fortune “Global 500” companies •  17 Financial Times “Global 500” companies •  124 major corporate world headquarters

Global business leaders choose Illinois


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Air

Transport

Illinois’ superior infrastructure is the best in the Midwest

and tops in the nation.

Railroads

Interstate

Highways

Waterways

Data

transport

• 3 international airports (O’Hare, Midway and Rockford)

• O’Hare has 2nd highest air traffic in U.S. flies direct to 68 int’l destinations

• Rockford is 2nd fastest growing cargo airport in the U.S.(2008)

• 3 coast to coast interstates pass through Illinois

• 3rd largest interstate system in the nation

• 16,000 miles of state highways

• Illinois is home to over 9,700 trucking establishments

• Illinois is the center of the nation’s rail network

• Chicago is the largest U.S. rail gateway

• 6 out of 7 of the nation’s Class I railways have terminals in Chicago

• 50% of all railroad freight in the U.S. passes through Illinois

• 1,118 miles of navigable waterways

• 13 port districts and waterways provide critical link between Atlantic, Great Lakes,

and Gulf of Mexico

• Port of Chicago handles over 38 million tons of goods and is served by 4 railroads

and 2 interstate highways

• 4,100 miles of new broadband fiber optic cable connects Illinois

• All major interchange carriers have presence in Illinois

Strategic location and world class infrastructure

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Illinois provides unique access to the North American market.

• Located at the industrial and geographic

heart of the nation, Illinois companies enjoy

unrivaled access to markets.

• Nearly one fifth of the Gross National

Product is produced in the Midwest and

nearly half of all the goods and services

created in the U.S. are produced within one

day’s drive of the state line.


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• 42% of North American consumers

are less than 2 day drive away

• 29% of North American industry is

within one day’s truck delivery

Illinois has an unparalleled freight and rail transport system.

• Center point of the Interstate highway system

• 3rd largest interstate network in the U.S.

• 2nd among states in miles of freight railroad

•4th in number of freight railroads

• Only gateway where 6 out 7 Class I North

American railroads can interchange traffic

• 50% of U.S. container rail freight passes

through Chicago’s rail yards


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Illinois’ large and talented workforce is a critical competitive advantage.

• Illinois’ 6.6 million workforce is double that of the

largest bordering state

• 60% of workers have education beyond a high school

degree, 34% have a bachelor’s degree and 11.5%

have a graduate degree

• 4th largest tech workforce (20,000+ in Chicago)

• 48 community colleges provide training in over 300

different careers/occupations

• Home to Northwestern, University of Chicago and the

University of Illinois

“It’s a real magnet for all the kids who go to

college in the Mid-West. Getting the best

people is paramount to what we do.”

– CEO Accenture PLC

“We have a significant office in Chicago

because it is a world class city that has world

class customers and world class talent. We

locate our offices where top talent wants to live

and work and that’s Chicago”

– Google Spokesman

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• 87% of Illinoisans have completed high school or

its equivalent and 34% have earned a bachelor’s

degree or better.

• According to U.S News and World Report,

Northwestern has the #2 program in materials, #3

program in manufacturing, and the top marketing

program in the U.S.

• Illinois has the 3rd largest community college

system in the nation.

• More than 93% of community college students

remain in Illinois to work. Source: Illinois Community College Board, 2011 Fiscal Year


Illinois’ educational system supports and provides a trained workforce

for the future. 3

Illinois universities that rank among the nation’s top universities:

• University of Chicago – Chicago

• University of Illinois – Urbana-Champaign

• Illinois Institute of Technology – Chicago

• Loyola University – Chicago

• Northwestern University – Evanston

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Technical

Assistance

Incentive

Programs

Advantage

Illinois (SMEs)

Employee

Training

• Location and building identification support

• Key regulations and policy insight

• Access to critical governmental agencies, e.g. IDOT

Positive business climate and competitive tax rates

Illinois’ tax and incentive programs create jobs and grow the economy.

• Economic Development for a Growing Economy (EDGE)

• Business Development Public Infrastructure (BDPIP)

• High Impact Business (Enterprise Zone – HIB)

• Large Business Development Program (LBDP)

• Capital Access Program

• Participation Loan Program

• Collateral Support Program

• Invest Illinois Venture Fund

• Technical assistance through DCEO’s Workforce Development Department (linking to

training and hiring resources)

• Employer Investment Program

Foreign Trade

Zones • FTZs are sites where foreign and domestic merchandise is considered to be in

international trade and not subject to U.S. customs duties

• There are 8 FTZs and 29 subzones located throughout Illinois

Illinois’ corporate tax rates are lower than many of its competitors

in the region and country.

Corporate

tax rates

Effective Tax

rates on new

investments

Midwest Other States

• Indiana – 8.5%

• Wisconsin – 7.9%

• Illinois – 7.0%

• Pennsylvania – 9.9%

• New Jersey – 9%

• California – 8.84%

• New York – 7.1%

• Illinois – 7.0%

State Tax Rate National Rank

• U.S. Median

• Michigan

• Missouri

• Indiana

• Illinois

• 7.3%

• 7.2%

• 7.1%

• 6.8%

• 4.6%

• N/A

• 24

• 22

• 19

• 5

• Despite raising taxes

to reduce debt,

Illinois remains

competitive with

states in the Mid-

West and across the

country

• Effective tax rate on

new investment

accounts for all

deductions and

credits offered by the

state

• Illinois’ effective tax

rate on new

investment is the

5th lowest in the

country – 2011 E&Y

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Total annual office space rental

costs ($ per sq. ft.)

Source: CB Richard Ellis, Global Market Rents

Chicago office space costs are significantly lower than its

global competitors. 4


Hong Kong $235

Tokyo (Inner Central) $161

London (City) $133

New York (Midtown) $120

Toronto $ 61

Washington, D.C. (CBD) $ 98

Boston (CBD) $ 94

San Francisco (CBD) $ 96

Los Angeles $ 79

Chicago (CBD) $ 28

Illinois’ high quality of life offers big city advantages

and small town charm.

Chicago is a world class city for culture and amenities

• 150+ THEATER COMPANIES

• 35+ MUSEUMS

• 570 PARKS, 26 MILES OF LAKEFRONT AND 31

BEACHES

• World class sports teams

• Hundreds of music venues

Historic Illinois offers:

• Springfield’s Abraham Lincoln museum

• Fabled Route 66

• Hiking in southern Illinois and boating in Great

Rivers region

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Why Illinois?

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Why Illinois?

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Strategic location and world class

infrastructure


Growth oriented tax and incentive programs


Economy & Finance

Why Illinois - Illinois Department of Commerce and Economic Opportunity