WBC

December 2009 :: Volume 62

Think Business. Think Chicago. Video Featuring Mellody Hobson Read More

Chicago's Economic Growth in 2009: World Business Chicago's Year-in-Review and Look Ahead Corporate relocations and expansions in the Chicago metro area have helped the city's economy, despite the downturn in 2009. Read More

Did You Know? Stories About Interesting Chicago Companies. Spotlight: Groupon A local Chicago company has saved its customers a total of over $56 million at the time this story was written. And the amount goes up daily, after millions of people get their daily Groupon in their e-mail inboxes. Read More

Chicago by the Numbers, December 2009 World Business Chicago tracks a number of indicators from month to month to gauge the strength of several aspects of the Chicago area economy. Read More

Chicago's Economic Growth in 2009: World Business Chicago's Year-in-Review and Look Ahead Corporate relocations and expansions in the Chicago metro area have helped the city's economy, despite the downturn in 2009. World Business Chicago (WBC) identified 11.6 million square feet of economic development activity representing more than $1.5 billion in investments in the metro area last year. From technology start-ups, to multinational corporations, the year-in-review demonstrates that numerous Chicago businesses continued to thrive in 2009. COMPANIES In one of Chicago's largest corporate relocations, United Airlines announced it will move its operational center, including 2,800 jobs, downtown to the Willis Tower, demonstrating an emerging trend of corporations migrating into the city. Shortly before United's announcement, Willis Group Holdings took over the naming rights for the former Sears Tower, moving nearly 500 associates into 140,000 square feet in the Willis Tower, the company's new regional headquarters. An influx of sustainable companies also found homes in Chicago this year, including Serious Materials. The sustainable/green building materials company acquired the shuttered Republic Windows and Doors facility and reopened the plant to manufacture energy-efficient windows and doors. The company is gradually hiring back the union employees placed out of work. MillerCoors also opened its new corporate headquarters, bringing 325 new jobs to 250 S. Wacker Drive, while international pharmaceutical powerhouse, Takeda, expanded its Chicago area operations to become its global development headquarters. Additionally, international derivatives powerhouse, CME Group finalized its TIF negotiations, committing to stay and grow in Chicago and add another 600 jobs over ten years. Chicago (including CME Group) dominates derivatives with a 25% global market share. World Business Chicago's monthly e-newsletter, Economic Focus, tracks relocations and expansions in the city, and cited more than 90 companies that have grown in Chicago over the last year including Xchanging, Dotomi, Sword Ciboodle, True Value, PC Mall/Sarcom. And, while many cities saw drastic declines in office costs due to deteriorating economic conditions, CB Richard Ellis' recent Global Market Rents report showed that costs in the Chicago central business district have remained stable over the last 12 months. INITIATIVES World Business Chicago's strategic partnerships, programs and travel missions have enhanced Chicago's position as a global business destination in 2009. WBC hosted visiting business leaders during conventions including WindPower 2009, NPE and SuperComm. The organization also partnered with Chicago's top business schools to utilize resources and network internationally, leading to the development of an Ambassador program to provide key influencers with materials to help them serve as spokespeople for the city. Staff traveled on business attraction missions to countries including the United Arab Emirates, China, Russia, Spain and Italy, and hosted international business leaders from many of those regions in return. WBC also provided networking opportunities to Chicago's business leaders, including an event with mayors from around the world as a part of the Global Cities Forum. Additionally, as a direct result of a round table discussion WBC coordinated with Mayor Daley and Chicago's leading executives, the Business Advisor program was created. The program pairs business leaders with City departments, in order to improve efficiencies. WBC also created new tools to market its services, and Chicago as a business destination. The Think Business. Think Chicago. campaign's first two videos featuring Mellody Hobson of Ariel Investments and Terrance Duffy of CME Group launched on the CNN Airport Network and YouTube. RECOGNITIONS WBC garnered international recognition for Chicago on the economic development stage in 2009. Chicago was the sole U.S. city to achieve the top international city for foreign investment, in IBM's annual Global Location Trends report, which records investment project announcements around the world to analyze global trends in corporate location decision making. WBC also received international recognition from Site Selection Magazine for being among the nation's top economic development groups.  This is the fourth consecutive year that WBC was honored as a "most effective" agency, contributing to jobs created and capital investment in the Chicago area. Additionally, fDi (Foreign Direct Investment) Magazine, a Financial Times publication, awarded Chicago the best North American city for FDI Promotion Strategy. A LOOK AHEAD WBC staff is currently working with a number of companies looking to expand or relocate in Chicago in the 2010. Plans are also underway to increase WBC's ever growing social media presence (in 2009 WBC became actively engaged in Twitter, LinkedIn and YouTube). In addition, WBC's Website will re-launch as a new state-of-the-art interactive environment where companies can find everything they need to make informed location decisions. New  additions to the video ad campaign will be produced, and  more will be announced in the year to come about WBC's leadership position within the Chicago Partnership for Competitiveness and Prosperity -- CP2 (a marketing partnership between the Chicago Convention and Tourism Bureau, Chicagoland Chamber of Commerce, and WBC).                                                                                                                                                                 PAGE UP

Do You Know? Stories About Interesting Chicago Companies. Spotlight: Groupon A local Chicago company has saved its customers a total of over $56 million at the time this story was written. And the amount goes up daily, after millions of people get their daily Groupon in their e-mail inboxes. Chicago-based Groupon is a social commerce service that leverages group buying and social media to provide big discounts on the best local businesses in major cities such as Chicago, Boston, New York City, San Francisco, Atlanta and Washington, D.C. To date, customers have purchased over 1.1 million Groupons on deals ranging from spa treatments and golf outings to fine dining and skydiving. This month, the company announced it raised a $30 million round of capital led by Accel Partners with participation from Groupon's initial investor, New Enterprise Associates. The financing will be used to accelerate Groupon's customer acquisition, expand into new geographies and further develop its technology. "We're proud of the positive impact Groupon is having on consumers and business owners," said Groupon founder and CEO Andrew Mason. "Groupon is pioneering a new category, and we believe adding Accel's experience partnering with digital and social media companies together with NEA's depth in the area will help us reach our full potential." Groupon employs 158 people in Chicago, with estimates to have 390 employees by the end of 2010. The company was a recipient of a 2009 Chicago Innovation Award, an achievement that celebrates the creative spirit of the Chicago region by recognizing and honoring the city's most innovative new products and services. "The social graph is laying the foundation for a new generation of industry-defining Internet companies, and Groupon has effectively invented social commerce," said Kevin Efrusy, Partner at Accel Partners. "Andrew and the Groupon team are executing with incredible focus at a breakneck pace and are delighting both their merchants and customers." People are buying, and businesses are reaping the benefits, posing an innovative way to reach a new audience. For example, the Art Institute of Chicago offered a Groupon last summer resulting in 5,000 new yearlong memberships purchased - 5.9% of the 85,000 members that the organization had built up over 130 years; nearly 98% of those buyers were first-time Art Institute members. About Groupon Groupon, launched in November 2008 in Chicago, features a daily deal on the best stuff to do, eat, see, and buy in 26 major cities across the United States, including Chicago, Boston, New York City, San Francisco, Atlanta and Washington, D.C. Groupon uses collective buying power to offer unbeatable prices and provide a win-win for businesses and consumers. The social commerce service is a project of The Point, an online community launched in 2007 for organizing group action. Groupon plans to be in 30 cities by the end of 2009. For more information, visit Groupon.com. To learn more on how to become a featured business visit  GrouponWorks.com. About Accel Founded in 1983, Accel Partners has a long history of excellence and innovation in venture capital, and is dedicated to partnering with outstanding entrepreneurs and management teams to build world-class businesses. Accel today invests globally, with offices in Palo Alto, California, London, UK, and Bangalore, India as well as in China via the IDG-Accel Partnership. With over $6 billion under management, Accel has helped entrepreneurs build over 300 successful companies, many of which have defined their categories. For more information on Accel, visit: www.facebook.com/accel.                                                                                                                                                                 PAGE UP

Chicago by the Numbers, December 2009 World Business Chicago tracks a number of indicators from month to month to gauge the strength of several aspects of the Chicago area economy. These include employment in major sectors, residential and office real estate data, price and purchasing indexes, and auto/truck sales. Several key trends are evident in this edition of By The Numbers:   Total employment increased slightly, largely influenced by gains in Government and Education and Health sectors.  (Total private sector employment decreased overall); however, the Chicago area unemployment continued to increase, reaching 10.3% in October. Although consumer confidence levels dipped from September to October, auto and truck sales both improved. The Chicago Purchasing Managers Index, a monthly index tracking regional manufacturing activity, indicated new orders and production in October 2009 reached the highest rates in over a year. The Chicago Fed Midwest Manufacturing Index also increased in October, with all four regional industry sectors (auto, steel, machinery, resources) showing improvement. In summary, while unemployment remains high, there are early indications of positive activity within the local manufacturing sector. These and other trends are illustrated in this month's By The Numbers table (PDF).                                                                                                                                                                 PAGE UP

Think Business. Think Chicago. Video Featuring Mellody Hobson The leaders of some of Chicago's most successful businesses explain why the city is the ultimate global business destination in World Business Chicago's ad campaign, Think Business. Think Chicago. Created by Downtown Partners, this spot features Ariel Investment's president, Mellody Hobson. Take a look:                                                                                                                                                                 PAGE UP

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