Factor

Strengths (Internal Advantages)

Weaknesses (Internal Disadvantages)

Opportunities (External Potential)

Threats (External Challenges)

Ease of Doing Business

World-Class Infrastructure: Top 10 national ranking for infrastructure (CNBC 2025). Access to Capital: Top 5 national ranking for access to capital. Central Logistics Hub: Unparalleled transportation network (air, rail, road, and water) for distribution.

High Cost of Business: Ranked near the middle/low end (19th in CNBC 2025) due to high taxes and regulatory costs. Fiscal Challenges: Deep-rooted fiscal issues, including large public pension obligations, creating tax and budget uncertainty.

Rising National Ranking: Significant climb in overall national business rankings (to #13 in CNBC 2025), attracting new corporate relocations (e.g., Pure Lithium). Tech/Innovation Investment: Strong focus on high-growth sectors like Quantum Computing, AI, and Life Sciences, securing significant federal/private investment.

Out-Migration: Persistent population decline and labor force shrinking, particularly of high-wage workers. Competitive Pressure: Neighboring states may offer lower tax and operating costs, luring existing businesses away.

Domestic Manufacturing

Diversified Base: 4th largest manufacturing state with over 14,000 companies across sectors (heavy equipment, food, chemicals, advanced manufacturing). Strong Supply Chain for EVs/Quantum: Active initiatives and new facilities to build out supply chains for electric vehicles and quantum technology. Skilled Workforce Focus: Dedicated programs (e.g., world-class manufacturing academies) to train the next generation of advanced manufacturers.

Labor Cost & Tariffs: Manufacturers face increased difficulty navigating business due to high labor costs and uncertainty from new federal tariffs. Regional Sluggishness: Manufacturing growth has flattened or weakened in some major metro areas (e.g., Chicago, Rockford) over the last year.

Reshoring/Onshoring: Global supply chain disruptions and federal incentives may drive companies to bring manufacturing back to the secure, central US location. Automation & Industry 4.0: Opportunity to lead in the adoption of new manufacturing technologies (AI, robotics) to increase productivity and offset labor costs.

Economic Slowdown: The overall national and regional economic forecast predicts weaker growth, which could dampen demand for manufactured goods. Global Tariff Instability: Unpredictable federal trade policy and global reciprocal tariffs create massive uncertainty for export-reliant manufacturers.

Sustainability Initiatives

Energy Leadership: #1 in the nation for Nuclear Energy generation, providing a reliable, low-carbon power base. Proactive Legislation: Strong state and local legislative efforts (e.g., Clean and Reliable Grid Affordability Act) to advance clean energy and green building. Clean Energy Investment: Doubling of private-sector investment in the clean energy economy in the past year, showing private commitment.

Infrastructure Barriers: Existing utility-scale grid connections can be difficult and slow for connecting new clean power sources. New Energy Demand: Rapid growth in high-energy sectors (e.g., Data Centers) threatens to offset gains in energy efficiency and clean generation.

Federal Funding: Access to significant federal grants and incentives for grid modernization, clean manufacturing, and green infrastructure (e.g., microelectronics). Energy Efficiency Savings: Large-scale energy efficiency programs (e.g., ComEd) continue to provide billions in savings for customers, freeing up capital for further investment.

Regulatory Hurdles: Delay or failure to adopt strong energy codes across the state could slow progress on building efficiency. NIMBYism/Local Opposition: Local opposition to new renewable energy projects (wind/solar farms) could slow the state's transition to 100% clean energy goals.

Balance of Trade & Global Contribution

4th Largest Exporter: Nationally ranked as the 4th largest state exporter of goods, with exports totaling over $80.8 billion in 2024. Diverse Export Mix: Top exports include high-value and diversified products: Chemicals, Machinery, Computer Products, and Agricultural Goods. Strong Trade Partners: Stable and large export markets in North America (Canada, Mexico) and robust growth in new markets (Netherlands, Australia, Malaysia).

Significant Trade Deficit: Illinois has a consistently large negative trade balance, with imports ($18.9B in July 2025) significantly outpacing exports ($5.86B in July 2025). Small Business Export Share: Small- and medium-sized enterprises (SMEs) make up 89% of exporters but only account for 24% of total export value, indicating untapped potential.

Foreign Direct Investment (FDI): High ranking (#5 in the nation by projects) for FDI, which creates jobs and injects capital into the state's economy. New Free Trade Agreements (FTAs): Potential for the US to negotiate new FTAs that could benefit Illinois's massive agricultural and machinery export sectors.

Geopolitical Tensions: Global trade disputes and the US's new reciprocal tariffs threaten existing export relationships and supply chain stability. Commodity Price Volatility: Reliance on global demand for key exports (e.g., soybeans, corn) makes the state vulnerable to volatile global commodity prices.