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