WBC

April 2009 :: Volume 54

In The Headlines Read More

WBC Presents at Global City Forum in Abu Dhabi World Business Chicago’s Director of International Business Development, Tom Bartkoski, was recently invited to present at the fourth annual Global City international forum, held in Abu Dhabi, United Arab Emirates. Read More

WBC Supports Chicago's Bid for the 2016 Olympics A Letter from WBC's Executive Director Rita Athas: I’m continuously asked about the city’s bid to host the 2016 Olympic and Paralympic Games. People ask what economic impact the Games would have, how they would shape our future business climate, and whether Chicago is ready to host the world, to which my answer is an emphatic yes. Read More

Great Plans for a Great City: Investing in Chicago’s Economic Engine The City of Chicago recently released a draft of the Chicago Central Area Action Plan, which recommends nearly forty downtown infrastructure improvement projects to undertake between now and 2020. Read More

WBC Presents at Global City Forum in Abu Dhabi World Business Chicago’s Director of International Business Development, Tom Bartkoski, was recently invited to present at the fourth annual Global City international forum for 2009, held in Abu Dhabi, United Arab Emirates. Bartkoski participated in a panel on competition for global talent, along with international representatives including Marie Therese McGivern, Director of Development, Belfast City Council, UK; Emeritus Mayor Peter Woods, Secretary General, United Cities and Local Governments Pacific; and moderator, Dermot Finch, Director, Centre for Cities, UK. Speakers and moderators attended at conference expense. In his presentation, "The Intersection of Immigrants, Connectedness and Competitiveness at the Chicago Crossroads," Bartkoski outlined Chicago’s long tradition of welcoming newcomers. He noted that Chicago's position as the third largest US city, in terms of economic output, would not have been possible without significant immigration over the generations. "Chicago is viewed as providing a good environment for international business because companies feel comfortable with the number of other cultures available in the workforce," Bartkoski said. "There has been a consistency of openness of attitude by the Mayor, Richard M. Daley, to immigrants, and the city knows it must continue to embrace this welcome to newcomers." The panel participants noted that upward mobility and opportunity are necessary for a community to fully benefit from an influx of in-migrating talent and energy. Bartkoski observed that it was no coincidence that one particularly talented individual with a multiethnic background was drawn to Chicago to start a family and build a career, a journey leading ultimately to the White House. With at least 30 different ethnic groups with a population of 25,000 or more, Chicago has a broad cultural and talent base from which to draw. Although, one current challenge is the US visa system - two thirds of doctoral candidates in science and engineering in the US are foreign-born, but upon receiving their degrees many cannot stay in the US to start businesses or continue research under current laws. Bartkoski also was interviewed by local media in the UAE. The UAE, and Abu Dhabi in particular, has seen rapid economic growth in recent years and is home to the world's largest sovereign fund, the Abu Dhabi Investment Authority. Global City is an international forum where public and private leaders exchange best practices and share sustainable urban strategies. Global City welcomed more than 100 leading international experts as speakers and forum participants, with leaders from 40 world cities in attendance.                                                                                                                                                                 PAGE UP

WBC Supports Chicago's Bid for the 2016 Olympics A Letter from WBC's Executive Director Rita Athas: World Business Chicago (WBC) is a key liaison between business and government, and at the helm of the organization, and surrounding the International Olympic Committee’s recent Chicago visit, I’m continuously asked about the city’s bid to host the 2016 Olympic and Paralympic Games. People ask what economic impact the Games would have, how they would shape our future business climate, and whether Chicago is ready to host the world, to which my answer is an emphatic yes. WBC is charged with bringing business to Chicago, and prides itself on promoting Chicago’s unmatched global business advantages - advantages that also prove Chicago is an ideal place for the 2016 Games. For instance, Chicago ranks among the world’s top six metropolitan economies, with a GDP of nearly $500 billion. The city boasts one of the most diversified economies in the world, with a wide range of industries providing jobs for our diverse residents. And, we’re home to 29 Fortune 500 company headquarters and more than 40 U.S. headquarters of foreign companies. Although Chicago is often recognized as an international city, hosting the 2016 Olympics would give us the rare opportunity to showcase our city to the world. Global business leaders would see our city on television, in print and on the internet, making it top-of-mind as an international business destination. Additionally, companies from around the world would locate here based on the contracts for work leading up to the Games. We are confident that they will find Chicago is an ideal city for business and stay long after the Games are over, contributing to our city’s business legacy. The Olympic Games would also give a boost to our existing companies. Industries including hotels, restaurants, and business services will see an increase in business, leading up to, during, and long after the Games are over. As we build upon the city’s strength as a global business destination, we see this as an opportunity for Chicago to be permanently etched on the global map. A key indicator that we are ready to host the world is the way businesses engage in civic life in Chicago. World Business Chicago is a prime example of this strong relationship, as a public/private organization with a Board of Directors comprised of some of Chicago’s top dedicated business leaders. Each time we reach out to a company making a location decision, our dedicated corporate leaders advocate for Chicago. And, the relationship is apparent throughout Chicago’s history, from the World’s Fairs in 1893 and 1933 to the construction of Millennium Park. Chicago’s business and civic leaders have come together time and again to serve the interests of our city and its residents. As Chicago’s leaders again step up to a significant challenge, I urge every resident of this great metropolitan area to show your support. Let’s showcase that our city is a global destination for business, and bring companies and jobs to Chicago that will contribute to our city’s incomparable quality of life. Sincerely, Rita Athas Executive Director World Business Chicago                                                                                                                                                                 PAGE UP

Great Plans for a Great City: Investing in Chicago’s Economic Engine The City of Chicago recently released a draft of the Chicago Central Area Action Plan, which recommends nearly 40 downtown infrastructure improvement projects to be undertaken between now and 2020. Working with business and civic leaders, the City issued the ‘Action Plan’ in an effort to prioritize projects from the 2003 Central Area Plan. Most of the projects outlined are related to transportation and open space infrastructure improvements at an estimated total cost of $15.55 billion. Also included are implementation recommendations spanning a variety of local, state, federal, and private funding sources. Under Mayor Daley’s leadership, investments in Chicago’s central business district have yielded huge dividends in terms of creating a thriving downtown that is attractive to businesses. In terms of economic development, continuing to make the right kinds of public infrastructure investments will help further position the Central Area for future growth, and also ensure that it remains the core of the region’s economic engine. The Plan estimates that total employment in the Central Area will reach between 630,000 and 650,000 by 2020, adding an average of 4,500 to 6,000 jobs downtown per year. Making investments in mass transit and open space infrastructure, such as these recommended in the Action Plan, is the most fundamental element of economic development – helping to create a vibrant environment attractive to companies and workers alike. The City’s Department of Zoning and Land Use Planning is presenting the Action Plan at various community meetings, and the proposal is open for public review and comment. Read a draft of the plan at the City’s Department of Zoning and Land Use Planning website.                                                                                                                                                                 PAGE UP

In The Headlines Monthly reports of non-farm “payroll employment” – which excludes business proprietors, the self-employed, unpaid family or volunteer workers, farm workers & domestic workers – have continued to show widespread job losses since the recession officially began in December 2007. The question “In the Headlines” will address this month is how changes in Chicago-area industry employment have or have not tracked those at the national level. That is: has Chicago lost more or fewer jobs in the hardest-hit industries, when compared to the U.S. as a whole? Are there sectors in which Chicago has fared better than the nation? While the National Bureau of Economic Research (NBER) established December 2007 as the official beginning of the he recession, employment declines began well before that date in many parts of the country. In fact, before seasonal adjustments (for weather conditions, holidays, etc.), U.S. non-farm employment peaked in November 2007, while metropolitan Chicago employment peaked even earlier, in June 2007. Because Chicago-area data is only available without seasonal adjustments, the analysis that follows is based on changes in seasonally unadjusted employment, measured from each area’s respective employment peaks (November ’07 nationally & June ’07 in Chicago). Though job losses have had an impact throughout the U.S. economy, the bulk of them have been seen in just a handful of sectors. Four sectors – out of a total of 12 – account for more than 75% of the nearly 7.7 million jobs lost nationally since U.S. employment peaked: Data from the U.S. Bureau of Labor Statistics (BLS) indicate that at its June 2007 peak, total employment in the Chicago Metropolitan Statistical Area (MSA) reached 4,614,500. Since then, it has fallen 6.1% to 4,331,400 as of March 2009 (preliminary). The three sectors posting the largest job losses in the Chicago MSA are the same as those for the nation. However, the 4th largest job-loss sector differs: Leisure & Hospitality in the Chicago area vs. Retail Trade at the national level. About 72% of Chicago-area job losses have occurred in these four sectors: The only sectors that have experienced growth at the national level since November 2007 are (1) Education & Health Services & (2) Government. Only Education & Health has shown net job growth in metro Chicago since its total employment peak in June 2007. When measured on the basis of percentage change from peak employment levels, the Chicago area has fared better than the U.S. in 5 of the 12 sectors: Education & Health Services Wholesale Trade Transportation & Utilities Retail Trade Manufacturing Both the national & local economies have experienced sobering job losses in nearly all sectors since their respective employment levels peaked during 2007. The extent to which Chicago losses mirror the nation have thus far varied by industry sector, & are likely to continue to do so in the months to come.                                                                                                                                                                 PAGE UP

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