Chicago s Business Growth Profile

Transcription

1 s Business Growth Profile New and Expanding Companies, 2010

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3 Year In Review s economy showed clear signs of recovery in The regional unemployment rate dropped to 9.0 percent in October 2010 from a peak of 11.7 percent in January Additionally, year-over-year manufacturing output in the region improved by 8.6 percent, as businesses began to rebuild inventories and fill new orders. World Business (WBC) has experienced this upward trend firsthand. In 2010, WBC fielded more business inquiries than 2009, and the organization directly assisted dozens of companies with relocation and expansion. Among these projects, 25 are included in this report, and 12 are showcased under WBC Project Highlights. Projects were selected from available data in the region, and meet one or more of the following criteria: at least $1 million investment, 20,000 additional sq ft, 50 additional jobs, a headquarters facility and/or WBC involvement. The reasons for choosing are as numerous as the businesses expanding here. In PricewaterhouseCoopers and The Partnership for New York City s Cities of Opportunity, a biannual assessment of 65 global cities, ranked second overall in two areas technology IQ/innovation and transportation/infrastructure and finished in the top tier in technology competitiveness and e-readiness, information/communications, biomed tech-transfer, hospitals, housing and mass transit. These advantages, combined with s strong workforce, business support services, location and leisure amenities, have helped attract and foster rapidly growing startups, such as Groupon, Redbox and Viewpoints as well as established industry leaders including Ford, Nestlé, and United Airlines. By many measures, is in a better economic position at the close of 2010 than it was in January; the following Business Growth Profile summarizing expansions of more than 14 million sq ft and nearly $2 billion in investment demonstrates that improvement.

4 WBC Project Highlights Key Industries Accenture Global Technology Labs New R&D facility 21,000 sq ft added 100+ employees added Biotech, Life Sciences & Pharma - The federal mandate to fully transition to electronic health records by 2012 has shifted development to 's health IT sector. Astellas Pharma, Chromatin, Lundbeck Inc., Sword Diagnostics and Therapeutic Proteins Inc. all expanded alongside Accretive Health, which is building a new processing center in downtown to house 650 new full-time employees. Digitech - It was a strong year for s tech ecosystem. TechAmerica's 2010 Cybercities report cited an increase of 422 tech establishments in the metro this year a figure punctuated by the rapid ascent of local companies like Cleversafe, Fieldglass, Groupon, Redbox and Viewpoints. At the same time, fresh capital continues to fuel other local success stories such as BrightTag, GrubHub, SitterCity, SproutSocial and more. Accretive Health New processing & training facility 650 employees added Education - s Loop U has 65,000 students and continued to expand, with Columbia College, DePaul University, John Marshall Law School and Roosevelt University committing to a collective 500,000 square feet of new space in downtown in 2010 alone. Financial Trading - Home to nearly two times the global derivatives activity as New York, continues to be a major center for trading. Sustained growth in 's financial sector has created a new fin-tech cluster and in 2010 numerous firms headquartered in announced expansions including Getco, Infinium Capital Management, Nico Holdings, Peak6 and Ronin Capital, many of them doubling in size. Cleversafe HQ expansion 15,000 sq ft total Manufacturing, Transportation & Warehousing - The area is a critical component of the national supply chain. It is centrally located at the intersection of six Class A railroads, and offers non-stop and direct flights to 220 cities worldwide. In 2010, Coyote Logistics, Cisco Systems, Whirlpool, Navistar International and many more expanded. Professional & Business Services - 's professional and business services sector has remained a leading driver of the economy. Accenture, Tate & Lyle and many others in the sector expanded in 2010.

5 Summary Table Sector Snapshot Industry Sector (NAICS) No. of Identified Projects Approx. Sq Ft Added 1 Approx. Investment 1 Manufacturing (31-33) Wholesale & Retail Trade (42, 44-45) Professional & Business Services, Financial Activities (52, 54) Transportation & Warehousing (48-49) Education & Healthcare Services (61-62) mil $801.7 mil mil $173.6 mil mil $410.9 mil mil $116.0 mil mil $186.0 mil Other mil $174.6 mil currently ranks in the Top 5 in output among 374 metro areas in a number of key industries including: Business & Financial Services, Manufacturing, Info-Tech, Health Services, and Transportation & Distribution. These sectors continue to be strong economic drivers, but growth in emerging industries such as financial technology ( fin-tech ) and health IT is also anticipated to create additional investment opportunities. Total mil $1.9 bil 1 Includes data (where disclosed) for projects in the metropolitan area that meet one or more of the following criteria (applies to leases and new construction): at least $1 million investment, 20,000 additional sq ft, 50 additional jobs, a headquarters facility and/or WBC involvement.

6 WBC Project Highlights Metro Region Coyote Logistics LLC HQ/DW expansion 175 employees added 140 retained Ford Motor Company Complete renovation and expansion of MF faciility $400 million investment 1,200 employees added Groupon HQ Expansion 500+ employees added 57,000 sq ft added 155,000 sq ft total Metro Development Notes According to Inc. magazine, 202 of the Fastest Growing Companies in the U.S. are in the metro area. Ford Motor Company added 1,200 new jobs and invested $400 million in the complete renovation of its Assembly Plant to accomodate the production of the new 2011 Ford Explorer. FedEx is building a 210,000 sq ft distribution facility in Lake County which will house 200 employees. It will join four other FedEx facilities serving the metro area and could grow to 500 when the facility is operating at full capacity in 2011.

7 Central Business District WBC Project Highlights Navistar International Corporation New HQ in Lisle New R&D facility in Melrose Park $205 million investment 3,600 new & retained Central Business District (CBD) Development Notes New and expanded projects in the Business District total more than 1.4 million sq ft, 1,972 new jobs and over $566 million in investment. United, which merged with Continental in 2010 to form the world's largest airline, has begun relocating the first of its employees from its suburban operations center into the Willis Tower. The newly merged company will be headquartered in, and has announced plans to occupy an additional three floors in the Willis Tower for a total 12 floors. The nearly 2 million sq ft building at 600 West ( 600 West ), the original Montgomery Ward s catalog warehouse along the River, is now fully occupied and is home to some of s most successful companies including Groupon, which recently anounced a 57,000 sq ft expansion to its headquarters. Therapeutic Proteins Inc. New HQ/R&D/MF facility $3 million investment 50 new employees 15,000 sq ft total Threadless.com HQ Expansion 45,000 sq ft total

8 WBC Project Highlights James Hardie Industries S.E. New N. American HQ 70 employees added 30 retained Tate & Lyle Hoffman Estates New N. American HQ 110,000 sq ft total Wanxiang America Naperville $47 million investment 330,000 sq ft total Global Leader has long been a center for international business. The region is home to more than 1,500 foreign-based companies, due largely to its economic diversity, talented workforce and world-class business resources. In 2010, 10 percent of all new and expanding projects identified were undertaken by foreign-based companies, representing more than 1 million sq. ft. and $470 million of investment. s advantages are widely recognized. Financial Times has repeatedly touted the city as having the top foreign investment strategy among major cities in the world; over the last decade, the region has attracted $40 billion in foreign direct investment. now ranks #6 of 65 cities worldwide in Foreign Policy magazine s annual Global Cities Index, up from #8 previously. The city is also one of eight Global Leaders, according to the City of London s Global Financial Centres report. As past achievements are no guarantee of future success, WBC staff and board members began formulating a global strategy in 2010, to be completed in The strategy will focus on new ways of promoting s diverse industries, creative people, and innovative ideas, keeping at the forefront of the global economy.

9 For More Information World Business 177 N State St, IL worldbusinesschicago.com World Business (WBC) leads s business retention, attraction and expansion efforts and raises s position as a premier global business destination, fostering private sector growth through the advancement of a business-friendly environment that attracts world-class talent. Sources This brief was compiled from the following sources: media outlets including Crain s Business, Globe St., and Midwest Real Estate News; CoStar, Hoover s, Manufacturers News, and WISER- Trade; company press releases, websites, and annual reports; real estate market reports from companies including CBRE, Colliers International, Grubb & Ellis, Jones Lang LaSalle and NAI Hiffman; and World Business internal reporting and interviews with companies. Photographs Accenture: Amata Office Centers Cleversafe: MB Real Estate Coyote Logistics: Green Exchange Groupon: Taconic Investment Partners LLC Navistar: LoopNet, Inc. Therapeutic Proteins: IIT University Technology Park Tate & Lyle: LoopNet, Inc.; Wanxiang: Wanxiang New Energy LLC. All of the following are CC photos from Flickr.com Accretive Health: Federal Reserve Bank of, Miracc Sector Snapshot: Aqua building in, Ellenprather95 Ford: Ford Assembly Plant, Zol87 Threadless: Threadless, Silver Marquis James Hardie: Continental Bank Bldg, LaSalle & Jackson, nithman