EDWARDSVILLE, ILL., June 2, 2017… Madison County is leading the nation in warehouse and logistics activity, according to a research study recently released by the Leadership Council of Southwestern Illinois. The study report identified the economic impact of warehousing and logistics on Madison County. Combined, the Gateway Commerce Center, Lakeview Commerce Park, and the Northgate Industrial Park have an annual economic impact of over $1.3 billion in Madison County. These logistic centers generate around 10,000 jobs and almost $445 million in wages. Nearly 4% of all employment in Madison County is attributable to the warehousing and storage industry, which is 5.4 times more than the national level. Employment in these industries has increased six-fold since 2001, while total wages paid has similarly increased seven-fold. Between 2012 and 2045, the Greater STL area’s multimodal freight activity is projected to increase by 74%.
Annually, the centers produce around $50 million state and local tax revenue. The collective property tax alone is about $6 million a year, with an additional $44 million paid to Illinois, Madison County, and local taxing bodies in income sales, corporate, payroll and property taxes.
“I think that when people drive by the Commerce Centers all they see are buildings. People would be surprised at the large number of people employed locally in the logistics and warehousing industry, and its tremendous impact on the economy of Madison County,” said John Navin, Dean and Professor of Economics at Ohio Northern University.
The Economic Impact of Warehousing & Logistics on Madison County, Illinois focuses on the Gateway Commerce Center, Lakeview Commerce Park, and the Northgate Industrial Park. Madison County Government, City of Edwardsville, Leadership Council Southwestern Illinois, and St. Louis Regional Chamber sponsored the research report. The authors include Timothy S. Sullivan, Ph.D., John C. Navin, Ph.D., and Warren D. Richards, M.S. from the Department of Economics and Finance at Southern Illinois University Edwardsville, School of Business, as well as the James F. Dicke College of Business Administration at Ohio Northern University.
On top of previous and current economic development and growth, the Gateway Commerce Center, Lakeview Commerce Park, and the Northgate Industrial Park still have potential to further expand and develop the Madison County area. The Gateway Commerce Center has over 2,300 acres of developable space. In 2016 the Gateway Commerce Center introduced a new Amazon fulfillment center with over 750,000 sq. ft. of space. The Lakeview Commerce Center is second largest in regards to acreage and employment. Lakeview has well over 750 acres, with still 350 acres underdeveloped. In recent years, Lakeview, completed a $1.5 million infrastructure update. Northgate Industrial Park’s largest tenants include Gateway Packaging, Chestnut Health Systems and Heidtman Steel Products. Northgate currently provides 700 acres of developable real estate.
“Gateway Commerce Center, Lakeview Commerce Park, and Northgate Industrial Park are all prime economic development locations in Southwestern Illinois. When these sites are partnered with our multi-modal strengths, these locations are even more appealing. It is no surprise to the region that Cushman & Wakefield named Gateway Commerce Center as one of the top 10 hottest locations in the nation,” said Ronda Sauget, Executive Director of the Leadership Council Southwestern Illinois.
The Leadership Council Southwestern Illinois is a member-based, economic development corporation representing Madison and St. Clair counties. The Council works to unite business, industry, government, education and labor for economic growth in Southwestern Illinois. These effective partnerships serve as a driving force behind successful economic development efforts throughout the Metro East region.