CHICAGO POSITIONED FOR GROWTH IN LOGISTICS TECH

Publication: Chicago Business Bulletin: April, 2022 | Logistics Tech in Chicago

CHICAGO, April 19, 2022 /PRNewswire/ -- World Business Chicago, the city's public-private economic development agency, today published its latest research report digging into Chicago's logistics tech sector.

The city's economic agency now publishes original research-based content monthly. This latest report digs into Chicago's legacy infrastructure, current record-breaking levels of VC investment, plus strong network of universities, colleges, research incubators, have Chicago well positioned for significant growth in the logistics tech vertical.

Chicago stands at the U.S. crossroads of transportation, distribution and logistics. Chicago located companies benefit from central location advantage, diverse talent pipeline and ever-evolving and growing logistics tech and innovation. On the heels of today's report, Chicago was recognized as a top business hub by Business Facilities magazine (March/April 2022). Chicago is a city of movement, transporting people, goods, and new technology across the nation and around the world.

"With the increased investment and business accelerating from tech and innovation, coupled with the city's commitment to inclusive economic development, locally based and founded startups, companies, corporations will continue to be well positioned to thrive, expand and grow," said Michael Fassnacht, President & CEO, World Business Chicago, Chief Marketing Officer, city of Chicago.

The World Business Chicago Research Center found an 802 percent increase in Logistics Tech growth capital since 2019 in the Chicago area, stemming from an upsurge in e-commerce, the global supply chain crisis, and increased demand for emerging and accelerated tech like blockchain. Consider:

• Logistics tech has raised $1.38B in growth capital 2021, up from just $0.15B in 2019.  
• Chicago growth capital investment beat out New York by 301 percentage points between 2019-2021,
• Over 100 locally headquartered companies that employ over 34,000 individuals

"Chicago is the center of the American logistics universe," says Will Kerr, President, Edge Logistics. "The Chicago logistics and logistics technology community has led the charge in new ideas for decades. The rest of the nation is noticing what is being built here in Chicago every day and the investments are pouring in. This trend will continue for years to come as TD&L business evolves and that change is created here in Chicago."

According to World Business Chicago, Chicago is a key e-commerce and transportation hub; this being a significant draw for companies looking to grow and expand, especially including those seeking to tap into the 6 of 7 class I railroads run through Chicago. Chicago's TD&L market is one of the nation's largest, employing over 260K individuals generating $24B annually. 

"In the course of readying our latest report, we found that Chicago offers the second highest concentration of workers in both transportation and tech, behind San Bernardino Valley," said Hannah Loftus, Research Director, World Business Chicago. "That coupled with data that ranks Chicago as a top city for related occupations in logistics, sales and engineering, led to our finding that Chicago is primed for significant growth in this sector." 

Within the larger verticals of Chicago's ecosystem, Logistics Tech has the second-highest growth in investments in 2021. This tech ecosystem now comprises 5 unicorns and 2 publicly held companies, the median post-deal valuation increased to $190M from $50M in 2020, demonstrating the size and maturity of Chicago logistics tech firms.

Chicago-based incubator programs, like 1871's Supply Chain Innovation Lab which launches applications April 2022, are an opportunity to fill gaps in early-stage logistics tech firms developing supply chain and logistics technology.

In conclusion, the April, 2022 edition of The WBC Research Center, Chicago Business Bulletin reports:

• Growth in value and size of Chicago logistics tech firms attracts more venture capital, private equity for growth and corporate VC
• Chicago is a market of choice for corporate relocations and expansions offering a unique blend of a maturing VC ecosystem, a legacy TD&L industry and a diverse talent pool
• Innovation labs in Chicago are taking advantage of the opportunity to develop underrepresented vertical segments, supporting early-stage firms, and capturing more and diverse tech talent.

About World Business Chicago

World Business Chicago serves a critical role in driving inclusive and equitable recovery throughout the city's 77-neighborhoods. As the city's economic development agency, World Business Chicago leads business acquisition, workforce and talent, community impact and equity, support of our business community and promotion of Chicago as a leading global city. Most recently Site Selection magazine awarded Chicago with the distinction as the No. #1 Top Metro, for the ninth consecutive year, for business expansion and relocation.

The preceding month's research report, Fintech in Chicago, a new perspective on Chicago's most storied industry, coincided with the agency's declaration that Fintech was its fifth priority sector, joining manufacturing, transportation logistics and distribution, food and agriculture, and healthcare, biotech and life sciences. For business related news, announcements, and original research-based content, follow World Business Chicago on Linkedin, Twitter. 

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SOURCE World Business Chicago