Chicago’s Business Growth Profileworldbusinesschicago.dreamhosters.com/files/data/2014 Biz...
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Chicago’s Business Growth ProfileNew and Expanded Companies, 2013
World Business Chicago | Business Growth Profile
World Business Chicago (WBC) leads Chicago’s business retention, attraction and expansion efforts and raises the city’s position as a premier global business destina-tion. Chaired by Mayor Rahm Emanuel, WBC fosters private sector growth through the advancement of a business-friendly environment that attracts world class talent, and is responsible for the implementation of Chicago’s Plan for Economic Growth and Jobs.
WBC tracks new and expanding companies with a physical address in the Chicago metropolitan statistical area that meet at least one of these criteria (applies to leases and new construction): $1M investment, a net gain of 20,000 square feet, a net gain of 50 jobs, a headquarters facility and/or WBC involvement. WBC captures project infor-mation at the time of announcement on a rolling basis from media outlets, press releas-es, company websites, and WBC internal reporting; the quality of each record depends on the availability of data and resources to input and confirm information. Data subject to revision.
To submit a business expansion for inclusion in WBC’s quarterly “Chicago Growing” feature or next year’s Business Growth Profile, please email a project description to [email protected]
Mayor Rahm Emanuel, ChairmanMichael Sacks, Vice-ChairmanJeff Malehorn, President & CEO
New + Expanded Companies | 2013
Business Growth in 2013Chicago-area business expansions tracked by World Business Chicago (WBC) represented the addition of nearly 40,000 jobs, 35 million square feet of space, and over $6 billion in investments in 2013, contributing to a top honor from Site Selection magazine as the #1 Metro for Corporate Investment in the U.S. Chicago’s success can be attributed to its central location and connectivity, extensive talent pipeline, and quality of life. To further that success, Chicago’s engaged business community has a shared vision for continued growth. WBC is leading the implementation of Mayor Rahm Emanuel’s Plan for Economic Growth and Jobs, announced in 2011. The large-scale effects of this plan, and its many strategies and initiatives can be seen in the business expansion results:
• Transportation and Logistics – In 2013, Chicago’s infrastructure supported more container traffic than any port in the western hemisphere, 546 million public transit passengers, 87 million passengers (up 9 percent from the prior year) on flights to over 200 destinations, and 128,000 tons of air cargo (up 5 percent from the prior year), resulting in accolades including “best-connected airport” from the Massachusetts Institute of Technology. Chicago also welcomed the groundbreaking of DHL’s largest global forwarding facility in the nation. WBC is helping Chicago companies lead the transition to next-generation T+L by launching the Supply Chain Innovation Network of Chicago (SINC), an organization exploring public policy, innovation, talent attraction, and collaboration to elevate Chicago’s competitive advantage across the supply chain.
• Advanced Manufacturing – In 2013, WBC brought together key organizations to develop a scalable platform for manufacturing service coordination across the region and assess workforce needs and training. Also in 2013, Method announced it will open a flagship manufacturing facility that will bring nearly 100 manufacturing jobs to Chicago.
• Workforce – Companies consistently refer to talent as a key driver in the decision to expand in Chicago. WBC is leading the ThinkChicago initiative to actively recruit talent and engage university and corporate alumni to continue to build a demand-driven, targeted workforce.
• Innovation and Entrepreneurship – Chicago’s innovation ecosystem has grown rapidly, with more than $1 billion invested in startups in 2013, a 169 percent increase from 2012, according to Built In Chicago. Since 2011, WBC has worked with more than 100 info/digital/media companies including (in 2013): Gogo in-flight wireless provider, Google, and Grainger e-commerce. To build on this momentum, WBC launched ChicagoNEXT, a dedicated effort to drive growth and opportunity in the business climate related to science, technology, innovation and entrepreneurship.
By summarizing the success of local companies and providing insights from the WBC Business Development team, the following pages detail how the Chicago regional economy has grown in the past year.
World Business Chicago | Business Growth Profile
Refers to data for new and expanding companies with a physical address in the 14-county Chicago region that meet at least one of these criteria: $1M investment, a net gain of 20,000 sq ft, a net gain of 50 jobs, a headquarters facility and/or WBC involvement. WBC captures project information at the time of announcement from media outlets, press releases, company websites, and WBC internal reporting on a rolling basis; the quality of each record depends on the availability of data and resources to input and confirm information. Data subject to revision.
Metro by the Numbers677 projects
34.9M square feet
38,051 jobs$6.0B investment
Nearly 1/2 are companies that have relocated from outside the region or added a new facility to their presence in Chicago.
New + Expanded Companies | 2013
Industry Impact
Includes public administration (2,500 jobs), management of companies (700), construction (442), mining (60), utilities (30)
new & retained jobsconfirmed regionwide
Manufacturing
Other*
Retail
860
3,455
3,732
7,786
new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
Professional, Scientific& Technical Services
Education
Wholesale Trade
Transportation& Warehousing
1,937
358
3,700
5,858new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
Finance, Insurance& Real Estate
Information
Administrative, Support& Other Services
Arts, Entertainment,Accommodation& Food Services
1,041
356
3,661
5,307new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
new & retained jobsconfirmed regionwide
Healthcare & Social Assistance
619
1764
92
18124
1455
882
1517
4822
2022
2230
2410
1613S C S C S C
S C S C S C
S C S C S C
S C S C S C
S:C:
Suburban Chicago
Chicago (city)
*
World Business Chicago | Business Growth Profile
City Development Notes
• Referred to as the “Hottest Urban Center in the U.S.” by Crain’s Chicago Business, Chicago welcomed 217 new and expanding businesses in 2013—nearly a third of the region’s total—comprising 4.6 million square feet of added space, 21,312 new and retained jobs, and $3.0 billion in investment. Of these, 61 were headquarters, 12 were suburb-to-city moves, and 119 were specific to the Central Business District (see map, below).
• With 1,088,765 total jobs in 2013, the city of Chicago had more employment opportunities within its borders than the entire metropolitan regions of San Jose, CA, Austin, TX, and Portland, OR.
• Startups continued to fuel a “technology submarket” west of the Loop, for which real estate consulting firm CBRE reported an average vacancy rate of less than half the overall market. Google’s announcement to move its 500-person office to W. Fulton Street, coupled with spillover from River North, pushed the tech corridor westward.
City Focus
Gogo LLCChicagoHQ relocation from suburbs500+ jobs created and retained 230,000 sq ft total
Assisted Living ConceptsChicagoHQ relocation from WI100 new jobs
Coeur MiningChicagoHQ relocation from ID$11 million investment60 new jobs30,000 sq ft total
WBC Company Highlights
New + Expanded Companies | 2013
Bank of ChinaChicagoFirst US branch outside NY and LA15 new jobs13,000+ sq ft total
airberlinChicagoNew nonstop service between Berlin and Chicago O’Hare
Hannover Fairs USAChicagoAmerican HQ relocation from NJ15 new jobs
WBC Company HighlightsInternational Reach
Foreign Direct Investment (FDI)
The number of tracked international companies new to, or expanding in, Chicago increased from 80 in 2012 to 114 in 2013. Approximately 40 percent of the region’s international investments were made within the city. The following table, while not necessarily exhaustive, summarizes major international projects by country and industry.
Country Projects Jobs Sectors
Germany 17 788
Mgmt. consulting, engineering, trade show organizers, data processing & hosting, telecomm., air transp., rail transp. support activities, freight transp. arrangement, supermarkets, merchant wholesalers, kidney dialysis centers, fiber optic cable mfg., mea-suring device mfg., metal mfg., organic chemical mfg.
UK 16 382
Office admin. services, mgmt. consulting, market research, certi-fied public accountants, computer systems design, insurance carriers, data processing & hosting, hotels, warehouse mgmt. systems software, software publishers, logistics, gasket & sealing device mfg., distilleries, marketing & sales
Japan 11 1,127
Advertising, industrial equipment wholesalers, metal wholesalers, hose mfg., steel mfg.,, photographic equipment mfg., broom & mop mfg., toy & game mfg., motor vehicle transmission & power train parts mfg., plastics product mfg., inorganic chemi-cal mfg.
Canada 10 194Advertising, engineering, mgmt. consulting, commercial bank-ing, line-haul railroads, health supplement stores, metal whole-salers, fertilizer mfg., wineries, water & sewer line construction
Ireland 6 279Mgmt. consulting, data processing & hosting, medical equip-ment wholesalers, hardware wholesalers, grocery wholesalers, prepared food mfg.
France 5 513 Food service contractors, business support services, women's clothing stores, electrical distributors
China 5 41 Lawyers, commercial banking, motion picture theaters, air transp., synthetic rubber mfg.
Other 44 4,674
Italy (4 projects), Australia (4), Switzerland (3), Finland (3), Singapore (3), Korea (3), New Zealand (2), Sweden (2), Belgium (2), Netherlands (2), Taiwan (2), UAE (2), Denmark (2), India (2), Cyprus (1), Austria (1), Hong Kong (1), Qatar (1), Israel (1), British Virgin Islands (1), Luxembourg (1), Mexico (1)
Targeted Approach
One of the 10 strategies of Mayor Rahm Emanuel’s Plan for Economic Growth and Jobs currently being implemented by WBC is to enhance Chicago’s position as a center for business services and headquarters. Targeted business outreach initiatives are a key part of this strategy, and helped contribute to Chicago’s ranking as the top metro in North America for FDI projects (IBM, 2013).
World Business Chicago | Business Growth Profile
WBC ObservationsWBC staff worked directly on 134 expansion and relocation projects and successfully closed 45 projects that added and retained 4,270 jobs across the Chicago region in 2013. Trends noted throughout the year include:
Continued HQ Migration to Chicago – the growth of headquarters remained strong, with 61 companies choosing to relocate or expand their central operations in the city of Chicago, bringing or retaining nearly 6,000 employees. More than 60 percent of WBC’s successfully completed proj-ects last year were classified as headquarters relocations or expansions. Building on the region’s position as a global headquarters center with 30 Fortune 500 companies, the city began the year with Coeur Mining’s announcement that it was relocating its headquarters with 60 jobs from Coeur d’Alene, ID to Chicago. This was followed by Gogo’s mid-year deci-sion to move its suburban headquarters to downtown Chicago. And as 2013 came to a close, agribusiness giant ADM announced the decision to relocate its headquarters, including roughly 100 employees, from down-state Decatur to Chicago, further solidifying the city’s position as a nexus for headquarters.
Continued Growth and Recognition as Tech Center – Tech compa-nies have also increasingly decided to locate in Chicago. In 2013, more than one third of the companies WBC successfully recruited to locate or expand in Chicago were in the technology space (including hardware, software, internet, e-commerce or other related operations). Successes include large companies such as Grainger, Hyatt, and Medline, which moved technology operations downtown. They also include operations for up-and-comers such as AppGravity, Belly, and FieldAware. Indicative of this activity within the infotech sector, IBM ranked Chicago as a top location for software development in its 2013 report on the world’s most competitive cities.
Chicago’s Advantages – Drawing on feedback from firms that located or expanded in the city in 2013, WBC continues to find that markets and ac-cess to talent are among the most frequently given reasons for choosing Chicago. These unique attributes and the city’s many other competitive advantages prompt companies to expand and relocate in Chicago and have led to the city taking Site Selection’s “Top Metro” title for 2013.
WBC Company Highlights
Connected HealthChicagoNew HQ85 new jobs4,500 square feet total
Power ConstructionChicagoHQ relocation from suburbs 200 jobs created and retained35,000 sq ft total
DMC, Inc.ChicagoHQ expansion20 new jobs5,000 sq ft added12,000 sq ft total
New + Expanded Companies | 2013
Includes data (where disclosed) for companies (closed projects) that WBC assisted in 2013. Projects classified according to WBC-defined industry groups. Multiple expansion reasons may be reported for individual projects.
WBC-Assisted Companies
Emnos USA Corp.ChicagoNew North American HQ for German co.30 new jobs8,300 sq ft total
Swisse VitaminsChicagoNew North American HQ for Australian co.100 new jobs4,000+ sq ft total
MethodChicagoFirst US manufacturing facility$39 million investment65 new jobs150,000 sq ft total
WBC Company Highlights
Reasons for Locating in Chicago
Company Industries
World Business Chicago | Business Growth Profile
Attracting Outside InvestmentOver half of 2013’s business expansions in the city of Chicago were from companies that were new to the region or adding a new facility to their existing presence. Illustrated below, new com-panies to the region came from across the globe.
Coeur d’Alene, ID
Menomenee, WI Canada
United Arab EmiratesClinton, MA
SwitzerlandItaly (2)BelgiumGermany (3)AustriaJapanQatarChina (3)SingaporeNew ZealandAustralia
Belgium
Champaign, ILHidalgo, TX
Monterey, CASanta Clara, CAMenlo Park, CA
Reston, VA
Tucson, AZ
San Jose, CA
Dallas, TX
GermanyChina
FranceCanada (3)
Brookfield, WI
Princeton, NJ
United Kingdom (2)
Newtown, PA
New York, NY (2)
Atlanta, GA
Sweden
New + Expanded Companies | 2013
For More InformationWorld Business Chicago177 North State Street, Suite 500Chicago, IL 60601312.553.0500WorldBusinessChicago.com
Media inquiries: Karley Sweet, [email protected], 312.553.4658
Liz Jellema, Research DirectorWendi Taylor Nations, Chief Marketing Officer
SourcesThis brief was compiled from the following sources: Area Development Online | BidClerk/Crains Construc-tion Pipeline | Bisnow.com | Biz Journals | BizTimes | The Business Journal | Business Wire | CBRE | CBS Chi-cago | Chicago Business Journal | Chicago Grid | Chicago Sun-Times | Chicago Tribune | chicago.gopride.com | City of Chicago | City of Rolling Meadows | Colliers | Conway Data | Cook County Recorder of Deeds | CoStar | Crains Chicago Business| Curbed Chicago | Daily Herald | Des Plaines Patch | Digital Journal | Duke Realty | Examiner | fDi Markets | FedEx | GlobeSt.com | Hoovers | Illinois Department of Commerce and Economic Opportunity | IndyStar | Jones Lang Lasalle | Kenosha News | Lee & Associates | LoopNet | Mar-ketWatch | MarketWire | NAI Hiffman | NAIOP | Northwest Indiana Business Quarterly | Northwest Indiana Times | NREI Online | PaineWetzel | Patch | Plastics Today | PostTrib | PR Newswire | PRWeb | RealtyTrac | REJournals | Site Selection Impact Report | Southland Business | Village of Bartlett | World Business Chicago
PhotographsCover: Monroe Building (Coeur Mining): Flickr user UIC Digital Collections | Gogo LLC: Sterling Bay Com-panies | Assisted Living Concepts: Chicagosavvytours.com | Coeur Mining: Flickr user UIC Digital Collec-tions | Bank of China: CoStar | Hannover Fairs USA: BOMA | airberlin: Chicago Department of Aviation | Connected Health: Wicker Park and Bucktown Chamber of Commerce | DMC Inc.: LoopNet | Power Construction: LoopNet | Emnos USA Corp.: Hines | Swisse Vitamins: LoopNet | Method: Flikr user Geno
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