Illinois Outlook CBRE Commercial Real Estate Services Worldwide. Dan Seals, Assistant Director Illinois Department of Commerce & Economic Opportunity

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1 Illinois Outlook CBRE Commercial Real Estate Services Worldwide Dan Seals, Assistant Director Illinois Department of Commerce & Economic Opportunity

2 Long-Term Challenges

3 Organic Growth or New Business Attraction?

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7 The State s Approach Reduce Uncertainty Reduce the Cost of Business We Don t Create Jobs, We Support the Ecosystem for Jobs Invest in Infrastructure Invest in Education

8 Reduce Uncertainty by Fixing Pensions Pension Cost as % of Total General Funds Revenues FY08 Pensions 6% FY13 Pensions 15% FY20 Pensions 40% Other General Funds Appropria tions 94% Other General Funds Appropria tions 85% Other General Funds Appropria tions 60% 85

9 Reducing the Cost of Business Workers Comp Reform Unemployment Insurance Reform Extension of the R&D Tax Credit Medicaid Reform The reform plan would save about a halfbillion dollars annually for employers, mostly by slashing by 30 percent the fees that doctors and hospitals get to treat injured workers. --St. Louis Post Dispatch Illinois businesses will save more than $400 million in unemployment insurance taxes thanks to the actions of state officials, who today refinanced a federal loan used to pay unemployment insurance claims. --Illinois Chamber of Commerce Illinois signed a five year extension of their state research and development tax credit program earlier this month, a boon to companies across the state. --Tax Point Advisors Illinois new Medicaid reform law is expected to save the state an estimated $800 million over the next five years by tightening eligibility requirements for enrollment and providing more cost-effective care. --Chicago Sun- Times 9

10 Investing in Infrastructure Illinois Jobs Now! Is a $31 Billion capital plan that bolsters our position as the hub of the Midwest Illinois plans to provide a 110 mph rail service, as part of a critical Chicago-St. Louis rail corridor Highways across the state are being improved and expanded Broadband Access is also being expanded across the state.

11 Investing in Education K-12 Education Funding has been Increased We launched Illinois Pathways to better align our schools with our industries We Must also focus on Workforce Development

12 Workforce Highly Educated Over 200 R&D Centers Technological Savvy Best Business Schools in the World More than 30 % of Illinoisans over age 25 hold a B.A. or higher (12 th in the U.S.), and More than 11 % of Illinoisans hold advanced degrees (11 th among the 50 states). Source: 2010 Census Bureau American Community Survey (ACS) Illinois colleges and universities grab more research dollars than other Midwestern states (Illinois Innovation Index 12/19/2011). Argonne National Labs is a world leader in research 2011 TechAmerica ranks Illinois 8 th in the U.S. for high tech employment 201,400 workers. #1 University of Chicago Booth School of Business #4 Northwestern Kellogg School of Business Businessweek

13 Illinois Economy is Picking Up Steam $43,721 Per Capita Personal Income in 2011 Increase of $1,696 from 2010 to 2011 Added +158,200 private sector jobs since January 2010 Manufacturing jobs are a leading growth sector Unemployment fell - 0.3% to 8.8% - October 2012 Report Largest monthly decline since September 1992

14 Business Expansions NTN 150 Jobs, $53MM Invested Federal Savings Bank 300 Jobs, $10.6MM Invested LaFarge 90 Jobs, $8.4MM Invested Woodward 104 Created, $46MM Invested Nippon Sharyo 250 Jobs, $35MM Invested, More to Come Covidien 115 Jobs, $30MM Invested

15 Exports are Up $64.8 Billion $50 Billion Illinois exports totaled over $64.8 billion in $14.8 billion growth % increase Illinois export growth in 2011 was nearly double the average U.S. export growth of 16%

16 2001/Q1 2001/Q4 2002/Q3 2003/Q2 2004/Q1 2004/Q4 2005/Q3 2006/Q2 2007/Q1 2007/Q4 2008/Q3 2009/Q2 2010/Q1 2010/Q4 2011/Q3 2012/Q2 On Track to Double Exports by 2014 $18,000,000,000 $16,000,000,000 $14,000,000,000 $12,000,000,000 $10,000,000,000 $8,000,000,000 $6,000,000,000 $4,000,000,000 $2,000,000,000 $0 Source: WISER

17 People are Noticing Illinois ranked #2 among all states in new plant openings by Site Selection Chicago is the 3 rd most affordable city to do business according to CNN Money MoneyRates.com lists Illinois as the top state for making a living Chicago is ranked 10 th in the world for high-tech start-ups in the first Global survey from Startup Genome.

18 Why Illinois? Illinois' business climate outshines its neighbors, -Crain s Chicago Business, Oct. 17, 2011) The state has a larger pool of talented workers, bigger markets, more money for investment and better transportation.

19 Ranked #4 in Fortune 500 Companies

20 Make no little plans. They have no magic to stir men s blood. --Daniel Burnham

21 Contact Me DCEO Chicago James R. Thompson Center 100 W. Randolph, Chicago, IL (312) DCEO Springfield Ridgely Building 500 E. Monroe Springfield, IL (217) ONLINE: Department of Commerce & Economic Opportunity Illinois DCEO