California has long been a hub of medtech innovation. Many of the world’s best ideas, technologies, and companies were born there. But as organizations move from R&D to large-scale manufacturing, many are expanding beyond California, and Illinois has emerged as a compelling destination.
1. Cost Advantages
- Electricity costs: California industrial rates average ~22¢/kWh, while Illinois is under 10¢/kWh.
- Real estate: Industrial space in Illinois averages less than half the cost of comparable Southern California markets.
- Bottom line: Lower costs directly reduce cleanroom and production line expenses.
2. Logistics & Distribution
- National crossroads: Illinois sits at the heart of US logistics, with 25% of US freight rail passing through Chicago.
- Global access: O’Hare offers extensive direct routes for teams and time-sensitive freight.
- Speed to customers: Two-day ground reach to most of the U.S. accelerates pilot builds, V&V shipments, and clinical supply.
3. Skilled Workforce
- Medtech ecosystem: Illinois is home to leaders like Abbott, Baxter, Medline, and GE HealthCare.
- University pipeline: Leading universities (Northwestern, UChicago, UIUC) feed strong biomedical and manufacturing engineering talent.
- Startup energy: Local incubators and accelerators like MATTER and mHUB are attracting startups, creating a vibrant medtech community.
4. Central Time Zone
- Coast-to-coast friendly: Morning calls with Boston and afternoon calls with California make easy coast-to-coast collaboration.
5. Incentives for Growth
- Pro-manufacturing programs: Illinois offers programs like the EDGE tax credit, directly rewarding job creation and capital investment.
- State positioning: Illinois has positioned itself as a hub for life sciences and advanced manufacturing.
6. Resilience & Risk Mitigation
- Stable infrastructure: Illinois has reliable power and water access and ranks #3 nationally for grid reliability.
- Inland resilience: Reduced exposure to hurricanes, storm surge, and coastal flooding.
The Takeaway
California will always be a hub for innovation and design. But as medtech companies scale, Illinois offers an attractive option for manufacturing with lower costs, faster logistics, and a skilled workforce at the heart of the country.
At Medical Murray, we’ve built that foundation in Illinois, helping companies transition from early-stage development to reliable large-scale production of catheters, implants, and single-use devices.