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It is possible to serve
Chicago from outside the
state. For example, some
companies serve the city
from regional logistics
hubs such as Indianapolis
or Louisville, or across
the state line in southeast Wisconsin. “But ultimately, service requirements are changing,
and as speed to market
becomes more critical, I think more
people are going to make decisions
based on being close to market,”
says Frain.
Adam Roth, director of NAI
Global Logistics, a real estate and
supply chain solution firm that
focuses on distribution and warehouse companies, says a “
reur-banization” trend is under way in
Chicagoland that will compel companies to bring their distribution
facilities within the city limits.
Illinois also has the benefit of
being located in the middle of the
continent, with excellent connec-
tions by rail, truck, air, and barge
to East and West Coast ports as well
as the Gulf of Mexico and Canada.
As a result, some companies use
their area DCs to serve not just the
state or region, but also national
and even international markets. In
2012, Illinois’ exports to Canada
and Mexico exceeded $25 billion,
according to John Greuling, presi-
dent and CEO of the Will County Center
for Economic Development, a nonprofit
development organization for Will County,
located 35 miles southwest of Chicago.
“We’re a natural hub geographically,”
says Greuling. “Illinois really meets the
needs of just about any company looking
to import/export to serve a good part of the
North American market.”
ADVANTAGE 2: INVESTMENT IN
INFRASTRUCTURE
Since the early 1800s (almost as soon as
Illinois became a state), the Illinois legislature and business community have tried to
take advantage of the state’s prime location
by building a superior transportation infrastructure. This commitment has continued
into the 21st century, with more than $43
billion being poured into its infrastructure
since 2010, according to Seals.
For example, the “Chicago Region
Environmental and Transportation
Efficiency Program” (CREATE), a partnership between rail companies and federal,
state, and city government, is investing
$3.8 billion in 70 projects to improve
freight and passenger rail efficiency in the
city. Another public-private partnership is
looking to create the “Illiana Expressway,”
which would link Illinois and Indiana, and
allow trucks to bypass Chicago.
Perhaps the century’s most successful
infrastructure investment so far has been
the CenterPoint Intermodal Center (CIC)
in Will County. Opened in 2001, CIC is
the largest master-planned inland port in
North America, situated on more than
6,500 acres just outside Chicago, according
to Michael Murphy, CenterPoint’s chief
development officer. Located near the
interchange of Interstates 55 and 80, the
center has access to the BNSF Railway’s
Logistics Park in Elwood and the Union
Pacific Railroad Co.’s intermodal terminal
in Joliet. By allowing companies to avoid
the rail congestion that occurs at older
rail yards inside the city limits, the intermodal facility helps shippers reduce dray
costs and cut their carbon footprint, says
Murphy.
“I think the investment that CenterPoint
Properties made in the intermodal facility
in Joliet and Elwood is paying enormous
dividends for the region,” says Frain, not-
