ROCHELLE — As economic development director for the City of Rochelle, Jason Anderson is tasked with promoting Rochelle and attracting businesses.
Sometimes building relationships means traveling halfway around the world.
Anderson recently returned from a trade mission to Japan to meet with the country’s government and business leaders at a conference with members of Intersect Illinois and Gov. Bruce Rauner. A total of 15 members were in the delegation with Anderson, who was one of three economic development directors in the group.
This year marks the 49th annual joint meeting between Japan and the midwest and the first international tour for Gov. Rauner. The mission is an opportunity to not only build trade ties but to also reinforce the business relationships already established. More than 600 Japanese companies have offices or manufacturing facilities already in the state of Illinois.
“It was really a privilege and an honor for Rochelle to be represented on this trade mission…this trade mission by the governor was an international event and we were part of it,” Anderson said.
Anderson’s expenses for the trip were paid exclusively through private donations raised by the Greater Rochelle Economic Development Corporation, which he also directs.
During the week-long event, Anderson and the delegation participated in meetings with multiple Japanese officials and businessmen coming together with five out of the 10 midwest governors in attendance.
“We got to meet businessmen of small to mid-sized to very large Japanese companies that have an interest in one way or another in the U.S., building a facility, or expanding a market,” Anderson explained. “Everywhere we went we were well received. The state of Illinois has a tremendously positive reputation among the Japanese.”
Of the more than 600 Japanese companies in Illinois employing nearly 50,000 people, Anderson said that more than $2 billion of trade occurs between Japan and Illinois each year.
Declining population
Anderson recalled a special opportunity to attend a briefing with the U.S. Embassy where he learned Japan’s officials are predicting their country’s population to drop to 85 million people by the year 2060. Several factors include lower marriage and birth rates along with strict immigration policies.
As workforce numbers decline, opportunities for Japanese companies to operate in other countries will increase. Economic development directors such as Anderson know it is important to open lines of communication to establish relationships with potential investors.
“Economic development is not what’s going to happen tomorrow, what’s going to happen in the next 10, 20 or 50 years. Building these relationships with these companies, that is what this trip [was] about,” Anderson said. “Some Japanese businesses are family owned — fourth, fifth and sixth generations are running these plants. Building relationships with them is key because if they are not producing offshore now, they will be. Then the question is where.”

Along with the future population challenges Japan is facing, the country has always faced challenges due to its geographical location. The amount of natural disasters that have occurred and the country’s size are also stacked against them.
“Japan is about the size of California, with 126 million people living on that island,” Anderson said. “Most everything outside of rice is imported…the average sized farm is 43 acres. You can’t raise that many cattle on a 43 acre farm, so much of what they have is imported.”

Auto plant in the ‘Hub City?’
Although the timing was close, the announcement of Toyota-Mazda’s intention to build a production facility and Rochelle being on the short list of prospective sites had nothing to do with the trip to Japan. Anderson said the trade mission had been planned well before that.
But, Anderson said, those two eventually merged while in Japan during their tours of manufacturing facilities that build parts for the major automakers. Reportedly, the automakers are searching for a 1,000-acre site to build a facility at an estimated cost of $1.6 billion and to be operational in 2021. It was announced Illinois is one of 10 states being considered, with Rochelle being one of the cities specifically in the state of Illinois.
Looking back when Toyota built a plant in Kentucky more than 30 years ago, Anderson noted since then nearly 200 industries have been created along the interstate corridor to support it. The decision to locate within Rochelle’s city limits could spur development along the Interstate 39 corridor creating a major economic impact on the region, something Anderson referred to as a “vertical and horizontal effect” in bringing businesses to the area.
He indicated Rochelle is “definitely in the hunt” among the places being considered.
“We are patiently waiting. They evaluate however many and then they eliminate,” Anderson explained. “Site selection is really site elimination. But when they make that decision then the real work begins…now where are all the suppliers going to come from? If we land this, in the next three to five years we will be planting other companies to support this and that will involve a huge amount of opportunity.”
Rochelle’s main attractions include the infrastructure already in place — proximity to two interstates and two major railroads, and the land. A decision could come as early as the first part of 2018.
Anderson offered the flipside — what if the automaker doesn’t choose Rochelle?
“We have certainly proven we are worthy of consideration of a project of this nature,” Anderson said. “There will be other projects that will come. We really do expect this will benefit us whether we win or we don’t.”

Foundation
Anderson focused on the strengths the state has to offer. Although the reputation might say Illinois is not a good place to do business, he referred to the time decades ago when the state was known as a “powerhouse.”
“Illinois has the rail, road, airports, waterways already built. When people say ‘why do people want to be in Illinois?’ Guess what? The infrastructure is still here. You can’t suddenly create thousands of miles of roads and highways. Rail doesn’t get built anymore yet there are six railroads that converge into the state,” Anderson said. “Rochelle sits here at the intersection of two interstate highways and two railroads. I say what made Illinois great 30-40 years ago is still here. Now we have to get back to promoting it.”
All in all, the trade mission was a great opportunity to connect high profile companies in Japan with Gov. Rauner’s office, the Illinois Department of Commerce, and Intersect Illinois and to make them aware of all the state and Rochelle has to offer.
Anderson noted the business relationships formed and by the governor going on the trade mission will, he believes, “pay dividends.”
“By virtue of all of those relationships, we will see more things happen here. I can’t tell you which and when, but I can tell you the foundation has been laid,” Anderson added. “Rochelle is on the front burner with a lot of opportunity, but it takes years to develop it. Things will only come as fast as they come. It begins with these relationships, developing trust, and fostering it.”