2023 Annual report submitted to National FTZ Board

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2023 Indicators Show Continued Growth in Employment, Value of Shipments and Exports

In 2023 FTZ #176 included eight 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
  • Staal & Plast, in Sycamore, DeKalb County

Economic indicators across all FTZ sites show continued growth across a 5-year period (2018 – 2023):

  • 42% increase in employment
  • 289% increase in the total value of shipments from FTZs
  • 109% increase in total exports from FTZs

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

  • FTZ status has helped our company earn many jobs that it otherwise would not have. It has become quite common for customers to approach us due to this strategic advantage.
  • 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 our 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 our industry.
  • The cost savings have improved our business operations through reinvestment in employees and facilities.
  • Our company also benefits from cash flow savings from duty deferral and reduced weekly merchandise processing fees, and entry fee savings.

In 2022 (2023 data is not yet released) RFD became the 13th largest air cargo airport in the U.S. with over 3.4 billion 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. For the 5-years between 2017 – 2022, exports from the Rockford MSA saw a 9% CAGR with Rockford now the 72nd largest metropolitan exporter in 2022.

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.