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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

mailto:wbc%40worldbusinesschicago.com?subject=%28Project%20Description%29

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.


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.


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




Professional, Scientific& Technical Services

Education

Wholesale Trade

Transportation& Warehousing

1,937

358

3,700

5,858new & 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




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)

*


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


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).


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.


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


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


Reasons for Locating in Chicago

Company Industries


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

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