2021 Indicators Show Explosive Growth in Total Shipments and Exports, Continued Growth in Employment

In 2021 FTZ #176 included nine activated operators:

• Bergstrom Inc., in Rockford, Winnebago County
• Brake Parts, in McHenry, McHenry County
• Cellusuede Products Inc., in Rockford, Winnebago County
• Chicago Importing Company, in Huntley, McHenry County
• Leading Americas, in Hampshire, Kane County
• Mitsubishi Logisnext Americas, in Marengo, McHenry County
• PCI Pharma Services, in Rockford, Winnebago County
• Schenker, Rockford, Winnebago County
• Staal & Plast, in Sycamore, DeKalb County

Economic indicators across all FTZ sites show continued growth across a 5-year period (2016 – 2021):

• 19% increase in employment
• 1,570% increase in the total value of shipments from FTZs
• 1,075% increase in total exports from FTZs

Operators report these zone benefits (edited to remove company identifying information and for clarity):

• Often customers come to our company with a new product they are trying to bring to market that isn’t yet FDA approved. Because we have an activated FTZ, they are able to import their product ahead of time and have it packaged and ready to go upon approval. This can be a deciding factor with some customers on if we get certain projects.
• FTZ status has allowed us to sell at a more competitive price once converted to a finished product.
• Our FTZ status allows us to be competitive for both domestic and international customers.
• The benefits realized from having FTZ status has helped our company to maintain American jobs and helped level the playing field against foreign competitors.
• The re-boxing and breakdown of parts and part kits allows the company to conduct this activity in the United States using domestic facilities and workforce.
• Having this ability allows for greater flexibility and competitiveness, which means our company can elect to conduct the activity in the United States, as necessary, rather than rely on overseas providers of the kitted items.
• Relief from inverted tariffs has given our company the opportunity to remain competitive in the our industry.
• The cost savings have improved our company’s business through reinvestment in its employees and facilities.
• Our company also benefits from cash flow savings from duty deferral, reduced weekly merchandise processing fees, and entry fee savings.

In 2021, cargo numbers grew 25%, with over 3.4 billion pounds of landed weight traveling through RFD compared to 2.7 billion pounds in 2020. December was the largest single month ever for cargo, with more than 431 million pounds of landed weight. The leading driver of cargo growth was the increase in the number of cargo flights, in addition to the new international cargo operations at RFD. Medical instruments/equipment, cell phones and computers were among some of the top imports and exports coming through RFD in 2021.

Companies in the FTZ 176 Service Area use the foreign-trade zone in traditional ways, including inverted tariff benefits and cash flow savings. In addition, we have several operators that specialize in FDA regulated products, conducting research and development operations and providing specialty packaging for imported products that are pre-FDA approval.