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* I asked Mark Denzler with the Illinois Manufacturers’ Association to send me his thoughts on what he thinks the state needs to do on the economic development front…
One of only five states with a Gross Domestic Product surpassing $1 trillion a year, Illinois is an economic powerhouse fueled by innovative manufacturers, abundant agricultural resources, a wide array of energy producers, vibrant financial and insurance sectors, dynamic tourism and hospitality, and a strong retail sector. Illinois has numerous advantages that make it attractive for businesses to locate and grow here, including our central location, strong transportation infrastructure, robust higher education system and skilled workforce.
These attributes, and others, helped secure 664 business expansions and relocations last year. This marks tremendous progress from where we were a few short years ago, when our state struggled to pay its bills and had what could only be described as anemic economic development tools.
This didn’t happen by accident. It took the full force of the Governor’s office, working in conjunction with the Department of Commerce and Economic Opportunity, Intersect Illinois, the General Assembly and businesses groups throughout the state to identify problems and chart solutions. Working together, we’ve established historic incentives to attract a quantum campus, electric vehicle production, reshore microchip manufacturing, foster energy and agricultural innovation. We’ve invested in programs to train employees, implement apprenticeship programs and fill open positions.
Despite these important gains, data shows we are still falling short on several key economic benchmarks. Illinois was the last state to fully recover employment in the wake of the coronavirus pandemic and we continue to lag in GDP growth, wages and job creation. These are warning signs that trouble lies ahead unless we take decisive action. Luckily, recent history proves that we can accomplish great things by working collaboratively.
Key areas of opportunity include:
1. Energy: Eliminate the moratorium on new nuclear construction, extend the life of gas plants, invest in transmission infrastructure and encouraging new technology like battery storage. Illinois needs safe, reliable and abundant energy to support emerging industries and technology including quantum computing, advanced manufacturing, data centers, and AI.
2. Education: Create a modern and skilled workforce by continuing to invest in K-12 education, higher education, and Career & Technical Education. Students should be allowed to waive the foreign language course requirements in favor of enrolling in CTE classes. We need to encourage education innovation, such as creating community college classrooms inside businesses.
3. Affordability: Assist families who face challenges finding affordable housing and day care. Creating incentives to build affordable housing and streamline day care permitting so businesses can operate and provide free, onsite day care for their employees.
4. Permitting and Regulatory Reform: Site selectors and businesses often ask how long it will take to put a shovel in the ground. Illinois streamlined many laws during the pandemic such as the One Day in Seven Rest Act, daycare licensing, and truck delivery times only to revert back to burdensome systems. Double down on the successful vetted sites program.
5. Tax Modernization: Create a tax system reflective of today’s society that reduces the crushing burden of property taxes that stunts growth and negatively impacts homeowners. Economists note that the best tax systems are broad-based with low rates.
6. Small Business Relief: For decades, policy makers exempted small businesses from most state mandates, but that is no longer the case. Small businesses that are the backbone of our economy now face costly and cumbersome mandates.
7. Invest in Existing Companies: While attracting new companies is important, we must ensure existing employers stay and grow in Illinois. Revise state incentives to include CapX incentives for small and mid-sized companies who are investing annually in their facilities. Grow technical assistance programs and build supply chains to encourage growth. Programs offered by IMEC, MxD, 1871, P33, Current, and others provide a key strategic advantage for Illinois.
8. Grow Trade: Foster international trade for manufacturers, farmers, and businesses. Illinois is the 4th largest exporting state and 95 percent of the world’s consumers live outside the United States.
9. Modernize O’Hare Airport: Stop delays and limit cost overruns while creating a modern regional transportation system.
Illinois is now open for business when the doors were previously closed. It’s time to build on our success and double down to make sure that we not only lead the Midwest, but the nation, in economic development and job growth.
Thoughts?
posted by Rich Miller
Monday, Apr 21, 25 @ 9:25 am
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A breakthrough in thought.
We should also breath fresh air and drink pure water.
Comment by Stix Hix Monday, Apr 21, 25 @ 9:35 am
Tax modernization? Details, please.
Comment by Anyone Remember Monday, Apr 21, 25 @ 9:39 am
Tax idea: Reduce the use tax for manufacturing and business under $10,000,000 to 3%.
Compete with mid-west states by limiting lost wages to 1 year in worker comp claims.
Comment by Dave Ristau Monday, Apr 21, 25 @ 9:49 am
Some of our border counties like Rock Island along the Mississippi River are getting beaten up economically by Iowa next door. Illinois needs to dial in on some new ideas for border counties.
Comment by Here Monday, Apr 21, 25 @ 9:53 am
The Governor could make good on his promise to phase out the franchise tax. A small, but good faith step to show he is serious about helping small business.
Comment by Wilson Monday, Apr 21, 25 @ 9:58 am
Refreshing list of ideas. Now if we only had a political system where leaders from both parties could engage without worrying about giving the other side a win. I know, I’m dreaming.
Comment by Norseman Monday, Apr 21, 25 @ 10:01 am
>> 1. Energy: Eliminate the moratorium on new nuclear construction
If a gigawatt nuclear reactor is added to one of the existing plants, it would be one of the largest capital projects in the history of the state. Let’s do it.
Also, Prairie State is going to be around long enough to do a coal2nuclear conversion at their site…
Comment by Michael McLean Monday, Apr 21, 25 @ 10:08 am
== Permitting and Regulatory Reform: Site selectors and businesses often ask how long it will take to put a shovel in the ground. ==
The abundance agenda.
Comment by Incandenza Monday, Apr 21, 25 @ 10:16 am
First, kudos to Denzler on a complete change of tone from previous statewide associations and association leaders, most notably the Illinois Chamber of Commerce.
Note how Denzler does not harp on things that he knows will only create partisan divide and that he cannot deliver and therefore should not promise to his membership, such as work comp, prevailing wage, and tort “reform.”
in fact, that is a brunt criticism of the Rauner administration.
That said, I would take issue with this:
“Illinois was the last state to fully recover employment in the wake of the coronavirus pandemic and we continue to lag in GDP growth, wages and job creation.”
Its been often said that Illinois’ balanced economy insulates us to a degree, and it is why it is among the last to feel an economic downturn, our downturns are less catastrophic, and we are the last and slowest to recover.
Its also why Chicagoland has not suffered the way that other Midwest “Rust Belt” cities have.
My advice to Denzler, the IMA, the Governor, and the General Assembly is to not focus to much on percieved weaknesses, and to come up with a list of manufacturing subsectors that you would like Illinois to build a brand around, and really focus there.
Is it green energy? EVs? Robotics? Transportation?
Rockford used to be known as “Screw City” because it led the US in manfacturing connectors. Northern Indiana leads the US in RV manfacturing.
Chicago used to be “Hog Butcher to the World.”
Personally I think that between John Deere, Caterpillar, and Rivian, Illinois has the potential to be not just a transportation hub, but a transportation manufacturing hub, making everything from bicycles to high speed rail.
Unfortunately China is really kicking our butts now in key areas such as Materials Science research, but Northwestern and UIUC can turn that around with some focus.
Comment by Thomas Paine Monday, Apr 21, 25 @ 10:43 am
Mark is well intended and thoughtful. Most statements include works like “invest” which means government spending. Can he give us a hint on what he intends to tap and who will be the tape—es?
BTW fewer mandates/regs tends to result in the need for clean-up and remediation — aka Pillsbury Clean Up — how does that get funded?
Comment by Annonin' Monday, Apr 21, 25 @ 11:16 am
This list is…fine.
Agree with annonin’ that many of these points are just more spending requests. That is fine…but who pays for it? His members? We all want to invest in education and childcare but these things have a high cost. Especially in tough budget years.
Comment by Lakefront Monday, Apr 21, 25 @ 11:30 am
Good ideas that most can support.
Comment by walker Monday, Apr 21, 25 @ 11:32 am
== continue to lag in GDP growth, wages and job creation. ==
Traditionally, Illinois has lagged by a year to year and a half both going into and coming out of a recession. So I wouldn’t be too concerned yet … another quarter or two will tell the tale.
Comment by RNUG Monday, Apr 21, 25 @ 11:45 am
Perhaps, if some of these organizations that purport to be supportive of business actually spoke in support of business- IMA and others are complicit in the Governors schema. They are mute on the key issues- taxation, regulation, lack of business friendly policy. They dance around key business issues so they can be on the Governors Fanboy club.
Comment by DRI Monday, Apr 21, 25 @ 11:55 am
Energy / energy storage
Traditionally, you don’t think of hydroelectric in Illinois. But the plant at Keokuk, Iowa was /is a big energy driver starting over a century ago.
I’ve often wondered if the long stalled Hunter Lake could be used as a hydroelectric storage battery. Use solar or wind during the day to pump water from Springfield to Hunter, then at night let Hunter run through turbines into Springfield. Hunter was always going to have fluctuating water levels anyway … this would just be a bit more drastic fluctuation. If I remember correctly, there was only going to be something like a 17 foot height difference, so it may not be feasible … but it is something to consider.
We could also look at the possibility of new hydroelectric plants along rivers or lake discharges.
Comment by RNUG Monday, Apr 21, 25 @ 11:56 am
Refreshing response. This is an old concept but a Total Quality Management review of regulations would help a lot. What are the steps involved and are they necessary? Not sure what small biz mandates need to be rolled back but also worth a look. Fostering trade is critical but (non partisan perspective), the U.S. feds are now the biggest barrier.
Comment by levivotedforjudy Monday, Apr 21, 25 @ 11:59 am
@thomas paine- Have you even been paying attention? The issues that no one talks about- High Taxes, excessive pro-labor legislations , Higher unemployment than the national average, pension debt, all issues impacting business growth for those here. IMA and others tout the governor’s line. But they are complicit.
Comment by DRI Monday, Apr 21, 25 @ 12:02 pm
==The issues that no one talks about==
What rock have you been living under? That’s all the doomsday purveyors in this state talk about.
The IMA is providing ideas and here you are, another doomsday purveyor, telling them that they don’t know what they are talking about because you want to blame the state’s woes on unions and pensions. Go apply for a job at the Illinois Policy Institute. I’m sure they are looking for more of your kind.
Comment by Demoralized Monday, Apr 21, 25 @ 12:28 pm
RNUG- interesting thought about Hunter Lake being used as a hydroelectric storage battery. Are you familiar with Ameren’s Taum Sauk Energy Center? It is just that, a hydroelectric storage battery. It’s also a 360 degree dam, so less disruptive than traditional hydro plants. Assuming they avoid future incidents like 2005 break.
Comment by Brave New World Monday, Apr 21, 25 @ 12:55 pm
@DRI -
Who should I believe, you or Mark Denzler, whose members employ 650K Illinoisans with a GDP of $580 Billion?
The IMA is calling for reducing property taxes while expressing support for a service tax in theory. That’s not the answer you want to hear, but its a pretty defendable position.
Comment by Thomas Paine Monday, Apr 21, 25 @ 1:21 pm
The IMA is a great asset to Illinois and partner. They deserve great attention to what they request. Yes, the state may need regulatory improvement. But it’s quaint to worry too much about that now. Have they seen the stock market lately? The current international business environment and US reputation? It’s not a Democratic state’s business climate doing that.
Comment by Grandson of Man Monday, Apr 21, 25 @ 1:35 pm