WBC         
May 2009 :: Volume 55
In The Headlines



Read More		 WINDPOWER 2009 Conference -- an International Networking Success

World Business Chicago and its Chairman, Mayor Richard M. Daley, in conjunction with other key public, private and non-profit partners, recently hosted a VIP networking reception as a part of the American Wind Energy Association's WINDPOWER 2009 Conference and Exhibition.

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World Business Chicago Wins Accolades from Site Selection, fDi Magazine and the Business Marketing Association

This month, World Business Chicago received international recognition from Site Selection Magazine for being among the nation's top economic development groups.

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 Interview with John Mulherin, CEO, The Ziegler Companies, Inc.

The Ziegler Companies, Inc. is a growth-oriented boutique investment banking and investment services firm. The company moved its headquarters to Chicago in 2007. Ziegler CEO, John Mulherin discussed the company's decision to move to Chicago with WBC.


Read More

WINDPOWER 2009 Conference -- an International Networking Success

World Business Chicago (WBC) and its Chairman, Mayor Richard M. Daley, in conjunction with other key public, private and non-profit partners, hosted a VIP networking reception as a part of the American Wind Energy Association's (AWEA) WINDPOWER 2009 Conference and Exhibition at Chicago's McCormick Place in early May.

The reception, with nearly 200 people in attendance, was a collaborative effort of numerous organizations including the AWEA (Organizer/Sponsor), WBC (Organizer/Sponsor), MEGA (Sponsor), the City of Chicago (Organizer), the State of Illinois (Organizer) and the Illinois Finance Authority (Organizer).

The wind power industry is a top economic development priority for WBC, based on the industry's high growth potential, profitability, job creation/diversity, and wage levels. Chicago has recently attracted wind industry companies because of its business advantages including a skilled labor force, proximity to markets and supplies, natural sources of wind in Illinois and the Midwest, available real estate, access to airports, rail and highway systems and strong public sector commitments to wind industry use and production.

"The WINDPOWER conference provided World Business Chicago with a wonderful opportunity to showcase Chicago's position as a prime location for wind power companies," said Rita Athas, Executive Director of World Business Chicago. "By hosting this event, we are facilitating dialogue between visiting and local wind power companies, Chicago area companies that may do business with them and our local leaders, in order to foster growth and new opportunities."

Chicago's competitive advantages are evident in recent additions to the city's roster of notable wind power companies including:

Area Headquarters

  • Acciona N. America HQ
  • E.ON N. America Climate & Renewables HQ
  • Nordex USA Inc. HQ
  • Suzlon Wind Energy Corporation N. American HQ
  • Invenergy LLC HQ
  • Midwest Wind Energy LLC HQ
  • Trintek Energy Consulting HQ
  • Wind for Illinois HQ

Area Non-Headquarter Offices

  • Vestas America
  • Horizon Wind Energy
  • Siemens Energy & Automation
  • Winergy Drive Systems Corporation -- subsidiary of Siemens

WINDPOWER 2009, the largest annual wind conference and exhibition in the world, took place May 4th - 7th, 2009. The show featured more than 23,000 attendees and 1,280 exhibitors and generated an economic impact of more than $37 million to Chicago, according to the Chicago Convention and Tourism Bureau. Approximately 80 Illinois companies exhibited at the conference.

The 2009 show was originally scheduled to take place in Minneapolis, but was moved to Chicago to accommodate a 20% increase over expected attendance, which doubles last year's turnout in Houston. WINDPOWER is one of the 50 fastest-growing shows in North America according to Tradeshow Week magazine. Chicago also hosted AWEA's convention in 2004, when it drew 3,000 attendees.

Wind power companies are coming off a record-setting 2008, according to AWEA, and future growth is expected. Wind energy has firmly established itself as a mainstream energy source for electricity, with new wind projects completed in 2008 accounting for about 42% of the entire new power-producing capacity added nationally last year, according to initial estimates. Meanwhile, the American Recovery and Reinvestment Act (ARRA) included an unprecedented three-year extension of the production tax credit for wind power, giving the industry a new level of stability. According to AWEA, Illinois currently ranks eighth in the nation in wind energy production, with enough wind energy to provide power to more than 200,000 homes.

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World Business Chicago Wins Accolades from Site Selection, fDi Magazine and the Business Marketing Association



This month, World Business Chicago 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 is being honored as one of the "most effective" agencies, contributing to jobs created and capital investment in the Chicago area. In 2008, an estimated 120 companies located or expanded in the Chicago metro area, accounting for more than 10 million square feet of office space.

The magazine stated, "There is a reason why Chicago was ranked as the No. 1 metro in the U.S. in corporate project activity by Site Selection for three years in a row and six years out of seven. Few economic development organizations do their job any better than World Business Chicago."

Separately, fDi (Foreign Direct Investment) Magazine, a Financial Times publication, named Chicago the best North American city for FDI promotion strategy.  In the category, 128 cities submitted details about their promotion strategies, which were evaluated and scored by a panel of judges.

"Because of the city's diverse economy, we've had success in retaining and relocating companies to Chicago despite the economy in 2008," said Rita Athas, Executive Director of World Business Chicago. "World Business Chicago is fortunate to be able to showcase the city's tremendous resources, including its access to the world, diverse and talented workforce and unparalleled quality of life."

In consideration for the FDI promotion strategy category, World Business Chicago submitted information on staff dedicated to promoting direct investment, information on high-growth sectors with excellent potential within the city, descriptions of incentives available and high-profile sites available.

Chicago placed 2nd overall for the North American Cities of the Future for 2009/2010, scoring highest in the categories of economic potential and infrastructure.

Additionally, World Business Chicago, along with creative agency Downtown Partners Chicago, received a Silver Business Marketing Association award for the 2008 "We = Business" advertising campaign. The program, which included three different slogans (We = Business, We = Growth, and We = Opportunity), along with the tag line "Bringing Business to Chicago," increased WBC's brand awareness among senior-level business executives based in, or traveling to, Chicago.


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Interview with John Mulherin, CEO, The Ziegler Companies, Inc.

The Ziegler Companies, Inc. (symbol: ZGCO) is a growth-oriented boutique investment banking and investment services firm with a primary focus in the healthcare, senior living and church and school sectors.  The company moved its headquarters from Milwaukee to 200 S. Wacker Drive in Chicago in the fall of 2007. Ziegler CEO, John Mulherin discussed the company's decision to move to Chicago with WBC:

When and why did you choose to move to Chicago?
The decision to move was made in July 2007. I am a native Chicagoan, and therefore had firsthand knowledge of the city and its many positive business and lifestyle factors. The primary reasons for the move were the first-rate talent that would be available for our company to recruit as well as the importance of Chicago as a world economic and business center.

How did you connect with World Business Chicago and how did the organization assist you in the relocation process?

I was driving from Milwaukee to Chicago and called the directory assistance for City Hall. When the operator answered, I indicated that I was CEO of a company considering relocating to Chicago. After a hold period of 15-30 seconds, Paul O'Connor, then head of World Business Chicago, came on the line, identified himself and asked how he could be of assistance. It was a very favorable first impression, I must say.

What is the best thing about running a business in Chicago?

The breadth and depth of economic, social and cultural activities. The tremendous quality and commitment of business and governmental leadership. The terrific talent pool that we are able to access for our growth. The vibrant economy and business opportunities right in our own backyard. The natural beauty of the city and the Midwestern friendliness of everyone, at every level.

How would you explain to your shareholders that Chicago is the best location for your company?

We have significantly grown the company's talent, which is our primary asset. We have realized order of magnitude greater business opportunities. We have a modern, appealing new headquarters, developed at a very reasonable cost. We have been accepted with open arms into the community. These are all conditions that greatly enhance shareholder value.

How would you describe Chicago's business community?

Vibrant, diverse, friendly, powerful, open-minded, entrepreneurial.

When entertaining clients or business associates, where do you go and what do you do?

There are great restaurants in all price ranges. Higher-end favorites include Shaw's, Japonais, and the afternoon tea at the Peninsula Hotel. A neighborhood favorite in Pilsen is Nuevo Leon. Pizza, of course, is very important, and my choice is Due's. Italian beef is equally as important, and I really like Al's in Little Italy. Barbecue from Smoke Daddy's on Division near Damen is terrific. And Greek Islands or Santorini's in Greek Town are both fun places.

If you were to describe Chicago to a friend or family member that has not visited, what would you say?

An open, diverse and friendly place with world-class amenities including performing arts, museums, restaurants, architecture, schools, transportation, shopping and services, all of which can be tailored to suit almost any interest or taste. A great place to live and work.

Do you follow any pro sports teams? What is your favorite? Are you personally involved in any sports/recreational activities?

As a native southsider, I am a SOX fan, and have vivid memories of their 1959 Pennant win, when Mayor Richard J. Daley had the air raid siren activated to celebrate the occasion. I like our team equally this season, but we could use a little help for the pitching staff. I am also a Bear's fan with very happy memories of the 1985 Super Bowl team, and I am also in the "thumbs up" camp for the "new" Soldier Field.

What is your favorite place to visit in Chicago (it can be a site, building, store, restaurant, park, museum, library… anything)?

I have two favorites. I love the parks. Downtown, Grant Park with Buckingham Fountain, the Lincoln Statue and the Museum Campus are wonderful. And Millennium Park with "the Bean," the new bridge to the Art Institute, the Pritzker music pavilion, the Lurie Gardens, the animated Water Towers are all truly spectacular. Near North Lincoln Park with the Zoo and the Conservatory, and the pond is very entertaining. And South I like "the Point" in Hyde Park as a great lakefront summer gathering place and the South Shore Cultural Center in South Shore for golf, beautiful grounds, and the best beach (a real secret) in the city. I also love the major museums. Last weekend I viewed the new Modern Wing at the Art Institute. The new "America's" exhibit at the Field Museum of Natural History is very educational and interesting. I enjoy the Aquarium and Planetarium as well. And I plan to attend the new "Harry Potter" exhibit at the Museum of Science and Industry.

What area do you live in and why did you choose it?

I live in the South Loop. It's a great neighborhood, still developing with a nice mix of people, restaurants, small businesses and schools. I can walk or bike to the office. And we have a great view of the Chicago skyline from our apartment.


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In The Headlines

The U.S. auto industry has truly been "in the headlines" throughout the current recession, with a notable uptick in media coverage during the past few weeks. Chrysler entered bankruptcy on April 30 to restructure both its debt and operations, seeking court approval on May 14 to terminate contracts with nearly 800 of its approximately 3,200 dealer franchises. General Motors has also begun scaling back its dealer network, notifying 1,100 of its dealers that their franchise agreements would not be renewed upon their expiration at the end of 2010.

Significant declines in demand have taken a serious toll on automotive industry employment & output across the U.S. But where in the country is auto-related employment & output concentrated? In particular, how does the Chicago area fit into the overall distribution of auto industry jobs & production?

For the purposes of WBC's analysis, the "auto-related" economy has been defined as including manufacturing of automobiles, auto bodies, trailers & auto parts; wholesalers of auto parts & supplies; & auto dealers (both new & used vehicles).

Distribution of Auto-Related Employment & Output (2008)

Sixteen of the 21 metropolitan statistical areas (MSAs) with at least 5% of local employment in auto-related industries are located in the East North Central Division of the U.S.: Illinois, Indiana, Michigan, Ohio & Wisconsin. Topping the list are Elkhart-Goshen, Indiana at 23.3% & Kokomo, Indiana at 20.9%. Two MSAs in South Carolina & one each in Alabama, Tennessee & Virginia round out the list.



In terms of gross regional product (GRP), the East North Central Division again dominates the list of auto-industry-concentrated MSAs. Elkhart-Goshen, Indiana (29.6%) & Kokomo, Indiana (28.7%) again rank 1st & 2nd, followed by an additional 36 MSAs with at least 5% of GRP derived from auto-related industries. Eleven MSAs on the list fall outside of the East North Central Division -- these are distributed among Alabama, Kentucky, South Carolina, Tennessee & Virginia. (Note: graph below displays only MSAs with 7.0% or more of GRP in auto-related industries.)



Auto-Related Industries in the Chicago MSA

The Chicago MSA boasts the 3rd largest economy in the U.S., in terms of both total employment (4.5 million) & total GRP ($477 billion) as of 2008, ranking behind only New York City & Los Angeles. Due to its sizable workforce, the Chicago MSA is also the 4th largest in auto-related employment (62,500) & in auto-related GRP ($6.1 billion). As of year-end 2008, the Detroit MSA ranked #1 in terms of both employment & GRP, ahead of NYC, LA & Chicago.



Despite their overall magnitude, these auto-related numbers are not terribly significant in the overall context of the Chicago MSA economy. Auto-related employment represents only 1.4% of the MSA total, while auto-related GRP represents only 1.3% of the regional total. These proportions fall below the national average of 1.8% in terms of both employment & GRP. As a basis of comparison, the professional & business services sector represents 16% of regional employment & 17% of GRP -- more than 10 times the proportion represented by auto-related industries.
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While metro areas with high proportions of auto-related industry employment & GRP are heavily concentrated in adjacent & nearby states -- namely Indiana, Michigan & Ohio -- the Chicago MSA is not heavily dependent on auto-related industries for employment or economic output. The region relies less on these jobs than the U.S. average (1.3-1.4% vs. 1.8% nationally), and much less so than a large number of other Midwestern metro areas.


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