Chicago's Business Growth Profile - New and Expanded Companies, 2013

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Chicago's Business Growth Profile - New and Expanded Companies, 2013
Chicago’s Business
Growth Profile
New and Expanded Companies, 2013
Chicago's Business Growth Profile - New 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
 wbc@worldbusinesschicago.com

 Mayor Rahm Emanuel, Chairman
 Michael Sacks, Vice-Chairman
 Jeff Malehorn, President & CEO
Chicago's Business Growth Profile - New and Expanded Companies, 2013
New + Expanded Companies | 2013

Business Growth in 2013
Chicago-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.
Chicago's Business Growth Profile - New and Expanded Companies, 2013
World Business Chicago | Business Growth Profile

    Metro by the Numbers
                                                                                   677 projects
                                                                               38,051 jobs
                                                                                   $6.0B investment
                                                                                    34.9M square feet

                                                                                        Nearly 1/2
                                                                                        are companies that have
                                                                                        relocated from outside the
                                                                                        region or added a new facility
                                                                                        to their presence in Chicago.

    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.
Chicago's Business Growth Profile - New and Expanded Companies, 2013
New + Expanded Companies | 2013

Industry Impact
Manufacturing                     Professional, Scientific             Finance, Insurance
                                  & Technical Services                 & Real Estate

           7,786                            5,858                                             5,307
 S C       new & retained jobs    S C       new & retained jobs          S C                  new & retained jobs
124 18     confirmed regionwide   22 48     confirmed regionwide         13 16                confirmed regionwide

Other*                            Education                            Information

           3,732                            3,700                                             3,661
 S   C     new & retained jobs    S C       new & retained jobs          S C                  new & retained jobs
 2   9     confirmed regionwide   17 15     confirmed regionwide         10 24                confirmed regionwide

Retail                            Wholesale Trade                      Administrative, Support
                                                                       & Other Services

           3,455                            1,937                                             1,041
S C        new & retained jobs    S    C    new & retained jobs          S C                  new & retained jobs
64 17      confirmed regionwide   82   8    confirmed regionwide         30 22                confirmed regionwide

Healthcare                        Transportation                       Arts, Entertainment,
& Social Assistance               & Warehousing                        Accommodation
                                                                       & Food Services

           860                              358                                               356
S    C     new & retained jobs    S C       new & retained jobs          S C                  new & retained jobs
19   6     confirmed regionwide   55 14     confirmed regionwide         22 20                confirmed regionwide

                                                                      * Includes public administration (2,500 jobs), management of
                                                                        companies (700), construction (442), mining (60), utilities (30)

S: Suburban Chicago
C: Chicago (city)
Chicago's Business Growth Profile - New and Expanded Companies, 2013
World Business Chicago | Business Growth Profile

WBC Company
Highlights                   City Focus
                             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
Gogo LLC
Chicago                          were specific to the Central Business District (see map, below).
HQ relocation from suburbs   •   With 1,088,765 total jobs in 2013, the city of Chicago had more
500+ jobs created and
retained                         employment opportunities within its borders than the entire
230,000 sq ft total
                                 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.
Assisted Living
Concepts
Chicago
HQ relocation from WI
100 new jobs

Coeur Mining
Chicago
HQ relocation from ID
$11 million investment
60 new jobs
30,000 sq ft total
Chicago's Business Growth Profile - New and Expanded Companies, 2013
New + Expanded Companies | 2013

International Reach                                                                                  WBC Company
                                                                                                     Highlights
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.
                                                                                                     Bank of China
Country    Projects Jobs    Sectors                                                                  Chicago
                                                                                                     First US branch outside
                            Mgmt. consulting, engineering, trade show organizers, data
                                                                                                     NY and LA
                            processing & hosting, telecomm., air transp., rail transp. support
                                                                                                     15 new jobs
Germany    17       788     activities, freight transp. arrangement, supermarkets, merchant
                                                                                                     13,000+ sq ft total
                            wholesalers, kidney dialysis centers, fiber optic cable mfg., mea-
                            suring device mfg., metal mfg., organic chemical mfg.
                            Office admin. services, mgmt. consulting, market research, certi-
                            fied public accountants, computer systems design, insurance
UK         16       382     carriers, data processing & hosting, hotels, warehouse mgmt.
                            systems software, software publishers, logistics, gasket & sealing
                            device mfg., distilleries, marketing & sales
                            Advertising, industrial equipment wholesalers, metal wholesalers,
                            hose mfg., steel mfg.,, photographic equipment mfg., broom
Japan      11       1,127   & mop mfg., toy & game mfg., motor vehicle transmission &
                            power train parts mfg., plastics product mfg., inorganic chemi-
                            cal mfg.                                                           Hannover Fairs USA
                                                                                               Chicago
                            Advertising, engineering, mgmt. consulting, commercial bank-       American HQ relocation
Canada     10       194     ing, line-haul railroads, health supplement stores, metal whole-   from NJ
                            salers, fertilizer mfg., wineries, water & sewer line construction 15 new jobs
                            Mgmt. consulting, data processing & hosting, medical equip-
Ireland    6        279     ment wholesalers, hardware wholesalers, grocery wholesalers,
                            prepared food mfg.
                            Food service contractors, business support services, women's
France     5        513     clothing stores, electrical distributors
                            Lawyers, commercial banking, motion picture theaters, air
China      5        41      transp., synthetic rubber mfg.
                            Italy (4 projects), Australia (4), Switzerland (3), Finland (3),
                            Singapore (3), Korea (3), New Zealand (2), Sweden (2), Belgium
Other      44       4,674   (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)                           airberlin
                                                                                                     Chicago
                                                                                                     New nonstop service
Targeted Approach                                                                                    between Berlin and
                                                                                                     Chicago O’Hare

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).
Chicago's Business Growth Profile - New and Expanded Companies, 2013
World Business Chicago | Business Growth Profile

WBC Company
Highlights                  WBC Observations
                            WBC 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
Connected Health
Chicago                     employees. More than 60 percent of WBC’s successfully completed proj-
New HQ                      ects last year were classified as headquarters relocations or expansions.
85 new jobs
4,500 square feet total     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.
DMC, Inc.
Chicago                     Continued Growth and Recognition as Tech Center – Tech compa-
HQ expansion
20 new jobs                 nies have also increasingly decided to locate in Chicago. In 2013, more
5,000 sq ft added
                            than one third of the companies WBC successfully recruited to locate or
12,000 sq ft total
                            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.

Power Construction
Chicago                     Chicago’s Advantages – Drawing on feedback from firms that located or
HQ relocation from          expanded in the city in 2013, WBC continues to find that markets and ac-
suburbs
200 jobs created and        cess to talent are among the most frequently given reasons for choosing
retained                    Chicago. These unique attributes and the city’s many other competitive
35,000 sq ft total
                            advantages prompt companies to expand and relocate in Chicago and
                            have led to the city taking Site Selection’s “Top Metro” title for 2013.
Chicago's Business Growth Profile - New and Expanded Companies, 2013
New + Expanded Companies | 2013

   WBC-Assisted Companies                                                             WBC Company
                                                                                      Highlights

Company Industries

                                                                                      Emnos USA Corp.
                                                                                      Chicago
                                                                                      New North American HQ
                                                                                      for German co.
                                                                                      30 new jobs
                                                                                      8,300 sq ft total

            Reasons for Locating in Chicago                                           Swisse Vitamins
                                                                                      Chicago
                                                                                      New North American HQ
                                                                                      for Australian co.
                                                                                      100 new jobs
                                                                                      4,000+ sq ft total

                                                                                      Method
                                                                                      Chicago
                                                                                      First US manufacturing
                                                                                      facility
                                                                                      $39 million investment
                              Includes data (where disclosed) for companies           65 new jobs
                              (closed projects) that WBC assisted in 2013. Projects   150,000 sq ft total
                              classified according to WBC-defined industry groups.
                              Multiple expansion reasons may be reported for
                              individual projects.
Chicago's Business Growth Profile - New and Expanded Companies, 2013
World Business Chicago | Business Growth Profile

         Attracting Outside Investment
         Over 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.
                                                          Brookfield, WI                              China
                                                                     Germany   France
                                                    Canada (3)
                           Menomenee, WI Canada

Coeur d’Alene, ID                                                                                     United Arab Emirates
                                                                                                      Clinton, MA

                                                                                                       Princeton, NJ
                                                                                                       Sweden
                                                                                                       United Kingdom (2)
                                                                                                        Switzerland
                                                                                                        Italy (2)
                                                                                                        Belgium
                                                                                                        Germany (3)
                                                                                                        Austria
                                                                                                        Japan
                                                                                                        Qatar
                                                                                                        China (3)
                                                                                                        Singapore
  Menlo Park, CA
  Santa Clara, CA                                                                                       New Zealand
  Monterey, CA                                                                                          Australia
      Dallas, TX                                                                                        New York, NY (2)
                                                                                                         Newtown, PA
 San Jose, CA

                                                                                                         Reston, VA

      Tucson, AZ

                                                                                                              Belgium

                                                                                        Atlanta, GA
                                              Champaign, IL
             Hidalgo, TX
New + Expanded Companies | 2013

For More Information
World Business Chicago
177 North State Street, Suite 500
Chicago, IL 60601
312.553.0500
WorldBusinessChicago.com

Media inquiries: Karley Sweet, ksweet@worldbusinesschicago.com, 312.553.4658

Liz Jellema, Research Director
Wendi Taylor Nations, Chief Marketing Officer

Sources
This 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

Photographs
Cover: 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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