BY SUSAN K. LACEFIELD, ASSOCIATE MANAGING EDITOR
SITE SELECTION
CRISSCROSSED BY 12 MAJOR INTERSTATES. SERVED BY SEVEN
Class 1 railroads. Home to O’Hare International, one of the world’s
premier aircargo gateways. And a history of investing in transportation
infrastructure that stretches back to the 1830s. The state of Illinois has a lot
going for it as a hub of logistics and distribution activity.
As Dan Seals, assistant director of the Illinois Department of Commerce
and Economic Opportunity, puts it: “Logistics is at the core of what we do.”
With that kind of infrastructure and history, it’s easy to see why Illinois
would make a good location for a Midwest distribution center. But it’s
not ideal for every company, according to site selection consultants and
industrial real estate firms. Here are four factors to consider when deciding
whether or not to locate your next DC there: three in favor and one against.
ADVANTAGE 1: LOCATION
One of the most obvious reasons to locate a distribution center in Illinois
is the city of Chicago, with its consumer base of 2.72 million people. As the
third-largest metro area in the country, Chicago is a market that can’t be
ignored. “People just need to be here to serve this market whether it is by
a warehouse close to the metro area or out and away from the city in more
of a regional DC,” says Bill Frain, senior vice president with the industrial
real estate firm CBRE. “Our population base just really compels people to
be here.”
strategicinsight
Illinois: Driven by logistics
With a long history as a
center for logistics and
transportation, Illinois
might be a good spot for
your next Midwest DC.
Here are three reasons to
consider the state … and
one reason not to.
