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Good news and not so great news in Site Selection report

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Illinois

* Site Selection magazine…

It’s hard enough to maintain a first-place finish in Site Selection’s annual ranking of state business climates three years in a row. Georgia did that last year. This year, it extends that winning streak with a fourth consecutive top billing. This ranking combines an equal share of subjective and objective criteria.

Fifty percent of the ranking is based on a survey of site selectors – corporate facility investors and site consultants — who indicate simply which states they deem to be the most business friendly. Texas and South Carolina were first and second by that measure, followed by Georgia. At 50 percent of the total, a third-place finish earned Georgia significant points. That’s the subjective part. The other 50 percent — the objective side — is a combination of factors primarily based on announced project data resident in the Conway Projects Database (see the methodology below), which credits areas with corporate facility projects of at least $1 million in capital investment, 20 or more new jobs or new construction of at least 20,000 sq. ft.

Illinois doesn’t fare well on the “subjective side” because of our well-deserved reputation. We’re 24th.

But Illinois’ performance far outpaces its bad rep. On the objective side of actual new projects of at least $1 million, things are much different. Illinois ranked 3rd in total numbers of new projects in 2014, 2015 and did so again in 2016.

Even so, the state is slipping in projects per capita. Illinois ranked 8th per capita in 2014, but moved up to 4th place in 2015. We’re now down to an 11th place slot in projects per capita.

The site’s overall ranking had Illinois tied for 15th with Michigan and Iowa.

* Related…

* Cahill: Indiana can’t compete on costs. You heard me.

* A Sneak Peek of the Seismic Shift in Corporate Tax Breaks: New nationwide accounting rules now require state and local governments to report all economic development incentives programs — like Boeing’s — as foregone tax revenue. Beginning with fiscal 2017’s annual financial reports, the Governmental Accounting Standards Board (GASB) is requiring governments to report things like the total number and value of tax abatements that year, the criteria that businesses must meet, and how the government will get that money back if the goals aren’t achieved (commonly referred to as clawback provisions). Reporting the annual value of these abatements will clearly show their effect on governments’ bottom lines.

posted by Rich Miller
Wednesday, Dec 7, 16 @ 12:39 pm

Comments

Just think where we’d be without Chicago and the suburbs.

Comment by GA Watcher Wednesday, Dec 7, 16 @ 12:43 pm
But BigBrain’s template for the future — IN — is 10th…..so he must work harder to drive us into the gutter. Maybe the rate hike will help

Comment by Annonin' Wednesday, Dec 7, 16 @ 12:53 pm
Last time I heard from the IPI, Illinois is last place in everything.

Comment by Liberty Wednesday, Dec 7, 16 @ 12:57 pm
Objective facts are for yooge, mean, dishonest losers unworthy of Tic-tacs — sad!

Comment by wordslinger Wednesday, Dec 7, 16 @ 1:27 pm
On the “subjective side,” our well deserved reputation lands us in the middle of the 50 state ranking? Right about average? Maybe our reputation isn’t really so bad. Compared to other states.

Comment by Anonymous Wednesday, Dec 7, 16 @ 1:28 pm
From Joe Chaill’s article- “A better approach to economic development focuses not so much on costs but on another business priority—growth. States should develop the attributes that help companies drive growth—education, highly skilled workers, new technology, advanced research, global transit connections and strong communications infrastructure. These factors spark innovation, productivity and efficiency. And they explain why companies flock to California despite the high cost of doing business there. Illinois has many of these qualities, as well, with its first-class universities, national research labs, educated workforce, transportation network and innovative projects like Chicago’s digital manufacturing initiative.”

Now, does Joe’s description of growth jive with Rauner’s? Seems like Rauner is willing to scimp on some of those inputs to deplete the land for his own harvests. Sustainable production vs. slash and burn.

Comment by Anon221 Wednesday, Dec 7, 16 @ 1:36 pm
Chicago helps our rankings being arguably one of only two world class cities in the US (New York obviously being the other). It’s one of the items that downstate Illinois needs to understand. Now, one of the things Chicago politicians need to understand when they go to Springfield is that about 80 - 85% of the geographical area of Illinois is not competitive to places like Indiana, Georgia, Tennessee, etc.

Asset wise, Illinois is a top 3 State, but our dysfunction (both Republican & Democrat) holds us back.

Comment by Ahoy! Wednesday, Dec 7, 16 @ 1:43 pm
As noted, would be curious to see our rank without the Chicago area. The rest of Illinois has been left to twist in the wind for years.

Comment by Shemp Wednesday, Dec 7, 16 @ 11:37 pm
Eight comments for a thread that says Illinois is at the top of the list?

The Raunerbots must not get a pudding pop for chiming in.

I hope they’re all healthy and not scared of the folks who disagree with them.

Comment by wordslinger Wednesday, Dec 7, 16 @ 11:56 pm