The Illinois state flag. Image courtesy of rarrarorro via Shutterstock.
As states across the U.S. seek opportunities to foster business growth and cultivate economic prosperity, one stands out for its strategic approach to development in traditional and emerging industries alike. The recent five-year economic growth plan unveiled by Illinois aims to bolster industries crucial for future development — statewide and regionally — while prioritizing sustainable practices and creating an environment in which innovation and business success are the standard. The following offers a six-point prioritization list (of equal importance) for Illinois’ efforts in attracting businesses across six key industries of focus.
Plans and Priorities State- and Industry-Wide
- Equity
Equity is top of mind for Illinois’ strategic players championing economic growth. Addressing systemic inequities is a crucial element in all programming, training, and resources offered by the State. A rising tide lifts all boats, and Illinois’ commitment to supporting economic advancement for historically underserved communities, rural areas, people of color, people with disabilities, veterans, women, justice-impacted population, immigrant groups, and other historically marginalized communities ensures that all Illinoisans have abundant support as both individuals and organizations.
- Site Readiness
Our Vetted Sites program provides site and infrastructure data for fast-moving projects, while also helping properties and communities understand opportunities for improvement that would prepare them for additional growth. The program provides ample site data, so companies can make location decisions as quickly and accurately as possible.
Each Vetted Site is identified as a top site in Illinois based on eight site characteristics: acreage, utilities, logistics, permitting and entitlement, workforce, ownership, local and state incentives, and environmental and topographic conditions.
- Talent Development
Building on a workforce already recognized as world-class, the State will provide programming to upskill individuals in preparation for future demand. This includes creating additional Manufacturing Training Academies, building out the Fast Track Program, and working with local partners and employers to ensure talent development is tailored to employer needs, such as the UIUC Research Park, Argonne National Laboratory, and the Illinois Science and Tech Park. Illinois’ education pipeline starts early, with 670+ nationally-ranked high schools, and is home to 240+ universities and colleges that continue to prepare their students for real-world problem-solving and innovation.
With 6.4 million people, and a wide range of experience and skills, Illinois’ workforce supports the most in-demand fields and is recognized as #1 in the Midwest for workforce development by Site Selection magazine. For example, Illinois is in the top 10 most-concentrated transportation and material moving workforces in the nation with the single largest talent pool of transportation and material movers — unmatched in the Midwest.
- Investment and Incentivization
Offering competitive incentives remains a priority for Illinois to continue leading in the economic development landscape. Notably, new and extended programs include the Research & Development (R&D) Tax Credit, equaling 6.5% of qualifying expenditures; the Economic Development for a Growing Economy (EDGE) Tax Credit, which provides annual corporate tax credits to qualifying businesses which support job creation, capital investment, and improve the standard of living for Illinoisans; the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act, which boosts tax credits for retained employees of semiconductor projects from 25% to 75%, rising even further to 100% for those locating in an underserved or energy transition area; the Reimagining Energy and Vehicles (REV) Illinois program, created to attract companies along the supply chain in the electric vehicle (EV) and renewables sectors; and the historic Climate and Equitable Jobs Act (CEJA), which will train Illinoisans for jobs in the clean energy industry and help clean energy businesses grow.
- Resources to Drive Innovation
Capitalizing on its momentum as a state driving innovation, Illinois will continue to support startups and new initiatives that promise to revolutionize the way we live and work. As a prime example, in the fall of 2024, Illinois Governor JB Pritzker announced $500 million for building the Illinois Quantum and Microelectronics Park (IQMP), a first-of-its-kind park for quantum scale-up and related quantum and advanced microelectronics research and development.
Of the project, at the 2024 Chicago Quantum Summit, Governor Pritzker posed in his keynote address: “What makes a successful technology ecosystem? Brilliant scientists, startup capital, growth stage capital, visionary entrepreneurs, universities and national laboratories, and either a government who is directly supportive or getting the heck out of the way.” Illinois’ mission to catalyze private investment in partnership with state and federal funding creates an innovation incubator, out of which comes world-changing technology.
- Key Industries of Focus
Long known for its strength in sectors such as manufacturing and agriculture, Illinois will target economic development across six key industries in both traditional and emerging markets, including subsects within industries for which Illinois is perfectly suited: life sciences; quantum computing, AI, and microelectronics; clean energy production and manufacturing; advanced manufacturing; next generation agriculture, ag tech, and food processing; and transportation, distribution, and logistics (TDL).
Let’s dive in for a breakdown of each.
Life Sciences: Laying the Foundation for Medical Innovation
The plan underscores significant investment in life sciences, aiming to propel advancements in pharmaceuticals, biotechnology, medical devices, and genomics. Home to major life sciences companies like AbbVie, Baxter International, and Medline Industries, this sector’s growth is supported by robust funding for research and development facilities and partnerships with leading academic institutions, making it a prime area for commercial real estate development focused on innovation labs and tech parks.
Learn more about the plan for life sciences here. Interested in sites well-suited to companies in this industry? Check this out: Medina Plains, 254 acres of land in Peoria, Illinois.
Quantum Computing, AI, and Microelectronics: Leading the Tech Revolution
Acknowledging the rapid evolution of technology, the State is investing resources into quantum computing, artificial intelligence (AI), and microelectronics. These fields promise to revolutionize everything from data processing and telecommunications to advanced manufacturing and defense systems, offering lucrative opportunities for real estate professionals to develop properties that serve high-tech industries and house large-scale data centers.
Learn more about the plan for quantum computing, AI, and microelectronics here. Interested in sites well-suited to companies in this industry? Check this out: The Illinois Quantum and Microelectronics Park (IQMP), a $500 million quantum campus being built on the former U.S. Steel South Works site on Chicago’s South Side.
Clean Energy Production and Manufacturing: Shaping a Sustainable Future
In response to global shifts toward sustainability, the plan includes significant initiatives to boost clean energy production and manufacturing. This focus not only addresses the increasing demand for renewable energy solutions but also positions the state as a leader in the clean tech industry, ideal for developing green manufacturing facilities and eco-friendly corporate campuses.
Learn more about the plan for clean energy production and manufacturing and EVs here. Interested in sites well-suited to companies in this industry? Check this out: Megasite USA, 365 (and expandable to 3000) acres of land in Dwight, Illinois.
Advanced Manufacturing: Strengthening Industrial Capabilities
Building on a storied advanced manufacturing legacy, the State plans to modernize this sector through technological integration and smart factories. This revitalization will attract businesses looking to leverage advanced robotics, fabricated metals, chemical manufacturing, and advanced materials like nanomaterials, increasing the need for strategically-located industrial warehouses.
Learn more about the plan for advanced manufacturing here. Interested in sites well-suited to companies in this industry? Check this out: Mid-America International Gateway Park, 628 acres of land in Jerseyville, Illinois.
Next Generation Agriculture, Ag Tech, and Food Processing: Driving the Future of Food
Agriculture remains a cornerstone of Illinois’ economy, with new investments aimed at revolutionizing these sectors of next generation agriculture, ag tech, and food processing through technology. Ag tech and food processing advancements promise to enhance yield, sustainability, and food safety, sparking interest in rural and urban real estate developments that support vertical farming and distribution hubs.
Learn more about the plan for next generation agriculture, ag tech, and food processing here. Interested in sites well-suited to companies in this industry? Check this out: The Marquis Industrial Complex, 3300 acres of land in Hennepin, Illinois.
Transportation, Distribution, and Logistics: Creating a Top-Tier Supply Chain
Recognizing the critical role of transportation, distribution, and logistics in global trade, the State is enhancing its transportation infrastructure to support seamless distribution channels. This development is crucial for real estate professionals focusing on logistics parks, distribution centers, and multimodal facilities situated near major transport hubs.
Learn more about the plan for TDL here. Interested in sites well-suited to companies in this industry? Check this out: The Dual Rail Megasite, 1000 acres of land in Rochelle, Illinois.
Opportunities Ahead for Corporate Real Estate Executives and Developers
Illinois’ strategic focus on fostering key industries through its new economic plan showcases a commitment to leading global trends in both strategy and execution. For commercial real estate professionals and their clients, the opportunities to invest in and develop properties in these sectors are abundant and promising.
Interested in learning more about how Illinois can accelerate your business success in these dynamic industries? Get in touch with our team today.
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