Enhancing Chicago’s Factories with Technology

The Chicago Journal Staff 2 on February 10, 2026

Chicago has long been one of America’s great manufacturing centers. Today, that legacy is entering a new phase shaped by automation, artificial intelligence, and digital data systems. Across the United States, manufacturers are investing heavily in smart technologies to improve productivity, solve labor shortages, and remain competitive in a changing global economy. These national trends are now influencing how factories in and around Chicago modernize their operations.

Industry leaders say the shift toward “smart manufacturing” is no longer optional. Tim Gaus, a smart manufacturing business leader at Deloitte, explained the urgency facing companies across the sector. He said, “The smart manufacturing journey is still emerging, but its value is undeniable,” adding that organizations that delay investment “may not be able to defer much longer.”

Research supports this view. Deloitte’s survey of large manufacturers found companies reporting up to 20 % improvements in production output and employee productivity, along with 15 % gains in unlocked capacity after adopting smart manufacturing tools. These results show why technology adoption is becoming central to factory strategy in regions like Chicago, where efficiency and workforce stability directly affect local economic health.

Labor shortages are another major driver of technological change. A global manufacturing survey found 70 % of U.S. organizations affected by worker shortages, pushing companies toward automation, predictive analytics, and AI-based quality control. Nearly half of the surveyed manufacturers plan to implement AI within two years, while one-third already use it in daily operations.

For Chicago’s industrial base, which includes both advanced production and legacy equipment, digital transformation often means upgrading existing machines rather than replacing them. At MxD, a Chicago-area innovation center focused on manufacturing technology, engineers demonstrate how real-time data can reshape factory performance. Tony Del Sesto, vice president for projects and engineering, described the importance of turning raw machine data into actionable insight. He explained, “I gather, analyze information, draw conclusions, and communicate back to my control systems to make improvements… now we’re doing it in real time.”

This ability to predict maintenance needs or optimize production timing can reduce downtime and save money—critical advantages for manufacturers competing in national and global markets. Even low-cost digital retrofits can transform older industrial equipment into connected systems capable of sharing performance data instantly.

National technology companies and automation providers are accelerating this transformation. Firms such as Siemens, Rockwell Automation, ABB, and Honeywell are developing robotics, industrial internet platforms, and digital-twin simulation tools that allow factories to monitor operations continuously and adjust production in real time. These technologies are forming the backbone of the next generation of manufacturing facilities.

Industry executives emphasize that technology alone is not enough. Blake Moret, CEO of Rockwell Automation, said manufacturers are using smart systems to manage disruption and create new opportunities, adding that “innovation and resilience go hand in hand.” His statement reflects a broader belief that digital transformation must combine advanced tools with skilled workers and strong leadership.

Data from Rockwell Automation shows 95 % of manufacturers have invested in or plan to invest in AI within five years, while many companies are also retraining employees or hiring new technical staff to support these systems. This focus on workforce development is especially relevant for Chicago, where manufacturing jobs remain an important part of the regional economy.

The technological shift is part of a broader industrial evolution often described as Industry 4.0. Chandra Brown, chief executive of the manufacturing innovation organization MxD, called it “the digital ‘Industry 4.0’ revolution,” noting that manufacturing will change rapidly as companies adapt to new tools and business models. Her perspective highlights why cities with strong industrial histories—like Chicago—are central to the future of advanced production in the United States.

Real-world factory projects illustrate what this future may look like. New AI-driven manufacturing plants use robotics, sensors, drones, and digital-twin simulations to detect defects, manage inventory, and reduce costs in real time. Even with heavy automation, companies stress that human workers remain essential, with large facilities planning to employ thousands of people alongside advanced machines.

This balance between automation and employment is critical for policymakers and communities. Smart manufacturing can strengthen regional economies by increasing productivity and attracting investment, but it also requires training programs to help workers transition into technical roles. National surveys show manufacturers increasingly prioritizing upskilling existing employees as part of digital transformation.

For Chicago, the modernization of factories carries broader economic meaning. Manufacturing innovation supports supply chains, transportation networks, and research institutions across the Midwest. It also connects the city to national efforts in clean energy, electric vehicles, and advanced materials—industries that depend on high-precision production and digital control systems.

The direction is clear. Technology is reshaping how factories operate, how workers contribute, and how cities compete. Smart manufacturing promises faster production, better quality, and stronger resilience during economic disruption. Yet success depends on careful investment, workforce training, and collaboration between industry, government, and research institutions.

Chicago’s manufacturing story began with steel, railroads, and mass production. Its next chapter will be written in code, sensors, and intelligent machines. As national leaders continue to push the boundaries of automation and AI, the transformation of America’s factories is already underway—and Chicago is positioned to remain part of that future.

How Communities Are Setting the Terms for Chicago’s Data Center Growth

The Chicago Journal Staff on February 10, 2026

By: William Jones

Chicago’s data center market is entering a decisive phase, but the clearest signal about where it’s headed isn’t coming from developers or city hall. It’s coming from residents.

New national research from Airedale by Modine suggests that communities are not instinctively opposed to nearby data centers, as the long-standing “NIMBY” narrative would suggest. In fact, the Data Center Community Acceptance Report reveals that support is conditional. People are willing to live near data centers when projects deliver clear local benefits, minimize disruption, and are designed with community expectations in mind.

That finding lands at a critical moment for the Chicago region. Industry forecasts show local data center capacity is expected to grow by 239%, positioning Chicagoland for one of the largest infrastructure expansions it has seen in decades. As that growth accelerates, the central question is no longer whether data centers will expand, but under what terms communities are willing to accept them.

A Growth Market Shaped by Policy, Not Just Demand

Chicago has long been attractive to data center operators because of its central location, dense fiber networks, and proximity to major corporate and government users. What’s new is how explicitly local policy is shaping that growth.

In 2024, the Chicago City Council adopted an ordinance designed to incentivize data residency, encouraging developers to store municipal data within city limits. While technical in nature, the policy sends a broader message: data centers are being treated less as anonymous industrial facilities and more as civic infrastructure, tied directly to public services, security, and long-term resilience.

By linking incentives to local data storage, the city is asserting leverage over how and where facilities are built. It’s a shift from reactive zoning decisions to proactive rule-setting, signaling that communities expect a say in how digital infrastructure integrates into the urban environment.

Suburban Expansion Raises the Stakes

Outside the city, the scale of proposed development is even more striking, and so are the expectations placed on developers.

In Lake County, the village of Grayslake is moving forward with plans for a multi-billion-dollar data center campus that could exceed 10 million square feet if fully built out, potentially making it one of the largest development projects in the county’s history. For a community of Grayslake’s size, that scale transforms data centers from abstract economic drivers into everyday neighbors.

Projects of this magnitude inevitably raise questions about land use, traffic, noise, power demand, and property values. But the Airedale survey suggests those questions don’t necessarily signal opposition. More often, they reflect a desire to understand what communities receive in return for hosting infrastructure that will operate for decades.

What The Public Is Actually Asking For

The Airedale survey reveals how people prioritize the factors that move them from skepticism to support, and it’s less ideological than many assume.

Economic participation comes first. Job creation and local tax benefits generated the strongest support among respondents. They produced high levels of “very supportive” responses, indicating residents who might actively advocate for projects they see as contributing locally.

For Chicago-area communities weighing rezonings or incentive packages, this underscores the importance of clarity. Vague promises of “economic impact” carry less weight than specific commitments to local hiring, workforce development, and municipal revenue.

Design and technology choices matter more than distance. Noise is often cited as a primary concern in data center debates, yet only a small share of respondents viewed data centers as extremely loud. What changed opinions was not relocation, but mitigation. A majority said quieter cooling technologies and other noise-reduction measures would make them more comfortable with nearby facilities.

That finding reframes noise as an engineering and design issue rather than an inevitable byproduct of development. Cooling systems, site layout, and operating practices become part of the community conversation, not just technical decisions made behind closed doors.

Transparency builds trust. A notable portion of respondents said they don’t feel well-informed about data centers. In practice, that lack of understanding can fuel resistance, especially when projects are large and unfamiliar. Early, plain-language explanations, covering everything from sound levels to energy use, can prevent uncertainty from hardening into opposition.

Rethinking Property Value Fears

Property values are among the most emotionally charged issues in local development debates, yet the survey data complicates the prevailing narrative. A plurality of respondents expect no impact on property values from a nearby data center, while many others anticipate only modest changes. Significant declines were expected by a relatively small minority.

For planners and elected officials in the Chicago region, this suggests property value concerns may be more malleable than often assumed. When communities receive credible information and see thoughtful site design, worst-case assumptions lose traction.

A Negotiated Model of Growth Takes Shape

Taken together, Chicago’s policy moves and the Airedale survey data point to the same conclusion: the region’s data center expansion is being negotiated in real time.

Cities are using tools like data residency ordinances to define how infrastructure aligns with public priorities. Suburbs are weighing benefits and impacts at an unprecedented scale. Residents are setting expectations around jobs, noise, and transparency before projects are fully approved.

This does not mean growth will slow. In fact, it may move more efficiently. Developers who align early with community priorities often face fewer delays, fewer appeals, and less friction during the approval process.

Chicago’s Influence May Extend Beyond Illinois

As data center capacity accelerates, Chicago is emerging as a case study in how communities shape modern infrastructure. The old model of “build first, explain later” is giving way to one where expectations are defined upfront.

The data indicate that communities are not rejecting data centers. They are setting terms. And in a market poised for triple-digit growth, those terms are becoming as important as power availability or fiber access.

For Chicago and its suburbs, the future of data center development will not be decided solely in boardrooms or council chambers. It will be shaped block by block, through a process that rewards listening as much as investment.

Disclaimer: The information provided in this article is based on publicly available research. While every effort has been made to ensure the accuracy of the content, some figures, forecasts, and specific claims mentioned have not been independently verified. Readers are encouraged to conduct their own research or consult relevant industry sources for further confirmation. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of any affiliated organizations.