Chicago Economic & Finance News

[migueltorres]

and the corporate migration to downtown continues...

UHC moves suburban headquarters downtown

UHC, an organization representing the bulk of the United States’ academic medical centers, has moved its headquarters from Oak Brook to downtown Chicago.

The group has a 12-year lease on 77,000 square feet at 155 N. Wacker Dr.

The organization is bringing 250 employees downtown and plans to add staff during the next few years.

http://www.chicagotribune.com/busine...,2802887.story

[Nowhereman1280]

Looks like that tax hike is really driving companies out of state...

[sentinel]

Originally Posted by Nowhereman1280

Looks like that tax hike is really driving companies out of state...

Not sure if that's applicable here though.. to be honest, I don't know much about UHC but I wonder if, as an organizational (potentially non-profit?) type system if they pay taxes anyway...Not that any for-profit public or private companies pay taxes anyway (tax loopholes, incentives, etc), which is why I'm incensed by the whole 'moving-out-of-Illinois' drama bullshit that a lot of these companies are pulling.

On a side note, many thanks to you Nowhereman and 10023, as well as other forumers for providing very informative and important insight into the world of finance - It always makes for fascinating reading and occasionally allays fears that the Chicagoland/Illinois economy will go the way of Metro Detroit/Michigan.

[Beta_Magellan]

A nice overview of the Chicago economy over the past couple of years:

Chicago's Center Leads the Way?
July 11, 2011
Bill Testa on the Midwest Economy

As central cities go in the Midwest, the city of Chicago is often held up as exceptionally successful, having experienced something of an economic renaissance since 1990. Much like other Midwest central cities, Chicago suffered acutely from population and manufacturing decline accompanied by sharp suburbanization during the 1970s and 1980s. The city’s population declined 10.7 percent during the 1970s and another 7.4 percent during the 1980s, which amounted to a population loss of 583,000 over the two decades. But a population turnaround unfolded in the 1990s when Chicago enjoyed a population gain of 4.0 percent—the first such gain since the 1950s. The trend proved to be short-lived, however, as the recent decade 2000-10 took back 6.9 percent of Chicago’s population.



Despite such mixed success, Chicago does stand out somewhat among large metropolitan areas in the Midwest region, boasting several elements of marked improvement since 1990. For one, the city has attracted a population of educated, mostly young, working adults. Owing to in-migration, the city’s 25-34 year old population now has a higher four-year college attainment rate than the suburbs. Residential neighborhoods in the city (and the downtown itself) have especially shifted toward young and college educated households, who have invested heavily in housing and housing rehab. In the process, Chicago’s manufacturing orientation has transformed to service jobs in the business services, finance, education, and health care sectors.

Read the rest at http://midwest.chicagofedblogs.org/a...os_center.html

[the urban politician]

^ Nice find

[lawfin]

Since demography influences economics / business investment I thought i'd put this link to a cool tribune map here

http://media.apps.chicagotribune.com...ing/index.html

[lawfin]

OK so I put this here because of the down stream affects of a possible demographic shift; and the underlying increase in funding that may be necessary as well. If a mod thinks this should be in it own thread then perhaps it should be moved...

More families sticking with city and private schools on North and Northwest sides
By Tara Malone, Tribune reporter
http://www.chicagotribune.com/news/e...0,296761.story


July 19, 2011
Claire Wapole grew up riding city buses to school and studying in city classrooms, where she took creative writing and even dissected a shark.

But multimillion-dollar deficits and the academic inequities in Chicago Public Schools had her agonizing over the choice she and her husband had made to raise their own children in the city............

....The decision put the Wapoles among the vanguard of an enrollment boom unfolding in public and private schools alike on the northern stretch of the city. Whether lured by burgeoning efforts to improve urban education or locked into a home they cannot sell, the tide of middle-class city residents moving to the suburbs as their children reach kindergarten may be slowing, enrollment records and demographic data suggest.

Schools on the North and Northwest sides enrolled more students even as enrollment slipped across the city's school system to 404,589 last year, down 1.5 percent from five years ago, state records show.

Student attendance in the northern stretch of the city climbed 2.4 percent during the last two years from 121,897 to 124,836 students in 2010-11, according to district enrollment records...........

............The pull of city living also may play into an enrollment boom in parochial schools, which are less expensive than other private schools. City preschool and kindergarten enrollment in the Roman Catholic Archdiocese of Chicago schools outpaced the rate of growth recently seen across the archdiocese that spans Cook and Lake counties, records show.

[lawfin]

Man the Chicago forums have been dead dead dead....is everyone on vacation? Or beat down by the heat?

[the urban politician]

Originally Posted by lawfin

Man the Chicago forums have been dead dead dead....is everyone on vacation? Or beat down by the heat?

^ Probably a combination of both

[Chicago103]

Originally Posted by lawfin

OK so I put this here because of the down stream affects of a possible demographic shift; and the underlying increase in funding that may be necessary as well. If a mod thinks this should be in it own thread then perhaps it should be moved...

More families sticking with city and private schools on North and Northwest sides
By Tara Malone, Tribune reporter
http://www.chicagotribune.com/news/e...0,296761.story


July 19, 2011
Claire Wapole grew up riding city buses to school and studying in city classrooms, where she took creative writing and even dissected a shark.

But multimillion-dollar deficits and the academic inequities in Chicago Public Schools had her agonizing over the choice she and her husband had made to raise their own children in the city............

....The decision put the Wapoles among the vanguard of an enrollment boom unfolding in public and private schools alike on the northern stretch of the city. Whether lured by burgeoning efforts to improve urban education or locked into a home they cannot sell, the tide of middle-class city residents moving to the suburbs as their children reach kindergarten may be slowing, enrollment records and demographic data suggest.

Schools on the North and Northwest sides enrolled more students even as enrollment slipped across the city's school system to 404,589 last year, down 1.5 percent from five years ago, state records show.

Student attendance in the northern stretch of the city climbed 2.4 percent during the last two years from 121,897 to 124,836 students in 2010-11, according to district enrollment records...........

............The pull of city living also may play into an enrollment boom in parochial schools, which are less expensive than other private schools. City preschool and kindergarten enrollment in the Roman Catholic Archdiocese of Chicago schools outpaced the rate of growth recently seen across the archdiocese that spans Cook and Lake counties, records show.

A encouraging trend that shows Chicago is also part of the movement seen in other cities where more middle class families are raising kids in the city. In the same token I don't think it is as hard to raise kids in the city or as rare as the media or popular opinion claims it to be. Even with private schools, many distort how expensive it is as if only rich people can afford it, most people who send kids to Catholic parochial schools in the city are normal middle class people who probably make less money than many of the yuppies who claim they can't afford to raise kids in the city.

Also I know times are different and some things are more expensive nowadays but why is that you hear about families in the 1950's who lived in the city and sent five kids to Catholic schools and worked blue collar jobs but nowadays a yuppie making six figures can't figure out how to raise one brat in the city? Either people have a distorted perception of how difficult it really is or our modern quality of life isn't what it is cracked up to be. I mean if I can't even duplicate for my children how my grandparents were raised in the city as children of fresh off the boat stockyard workers then our society sucks plain and simple, so much for progress.

[Vlajos]

I think many yuppie families are just spoiled. They want everything with no sacrifice.

[10023]

Originally Posted by Vlajos

I think many yuppie families are just spoiled. They want everything with no sacrifice.

Most of those guys work really hard at jobs they hate in order to have enough money for these things. They are making sacrifices.

[Vlajos]

Originally Posted by 10023

Most of those guys work really hard at jobs they hate in order to have enough money for these things. They are making sacrifices.

I am most certainly a yuppie by any measure. Yuppies aren't making sacrifices like folks in the past.

[Attrill]

Originally Posted by Chicago103

Also I know times are different and some things are more expensive nowadays but why is that you hear about families in the 1950's who lived in the city and sent five kids to Catholic schools and worked blue collar jobs but nowadays a yuppie making six figures can't figure out how to raise one brat in the city? Either people have a distorted perception of how difficult it really is or our modern quality of life isn't what it is cracked up to be. I mean if I can't even duplicate for my children how my grandparents were raised in the city as children of fresh off the boat stockyard workers then our society sucks plain and simple, so much for progress.

Unless all their kids got scholarships there was no way in the world fresh off the boat stockyard workers were sending 5 kids to private schools in the 1950's. Don't confuse the conditions of immigrants in the early 20th century with those of the mid 20th century. By the 50's the sacrifices being made were far from what was faced by immigrants before WWI. By WWII unions had ended the most egregious of abuses and the stockyards were no longer what was depicted in "The Jungle". The workers of the early 20th century were not only unable to send their kids to Catholic schools, their kids had to start working at 10 or 12. In 1919 most kids were working before the age of 15. The average work week was about 60 hours in 1900, and about 40 hours in 1950 (and real earnings rose dramatically as well). Labor laws and unions completely changed the living situation of most Americans.

That said, even with unions and labor laws about 50% of kids in the 50's did not finish high school (compared to about 90% today). There are a lot of other reasons why it is actually tougher financially today than it was in the 50's and 60's. Housing prices are 2 to 3 times higher, real wages have been declining since the early 60's, and the two earner household is now the norm. The American worker has been steadily losing ground since the 60's.

[sukwoo]

Originally Posted by Vlajos

I am most certainly a yuppie by any measure. Yuppies aren't making sacrifices like folks in the past.

Nobody makes sacrifices like folks in the past. Even the poorest of the poor has material comforts that the rich 50 years ago could only dream about.

[Chicago103]

Originally Posted by Attrill

Unless all their kids got scholarships there was no way in the world fresh off the boat stockyard workers were sending 5 kids to private schools in the 1950's. Don't confuse the conditions of immigrants in the early 20th century with those of the mid 20th century. By the 50's the sacrifices being made were far from what was faced by immigrants before WWI. By WWII unions had ended the most egregious of abuses and the stockyards were no longer what was depicted in "The Jungle". The workers of the early 20th century were not only unable to send their kids to Catholic schools, their kids had to start working at 10 or 12. In 1919 most kids were working before the age of 15. The average work week was about 60 hours in 1900, and about 40 hours in 1950 (and real earnings rose dramatically as well). Labor laws and unions completely changed the living situation of most Americans.

That said, even with unions and labor laws about 50% of kids in the 50's did not finish high school (compared to about 90% today). There are a lot of other reasons why it is actually tougher financially today than it was in the 50's and 60's. Housing prices are 2 to 3 times higher, real wages have been declining since the early 60's, and the two earner household is now the norm. The American worker has been steadily losing ground since the 60's.

I was actually referring to two different time periods but didn't clarify. The time my grandparents grew up was actually more like the 1910's-1930's and they did have a harder life but even all of them spent at least part of their schooling at Catholic schools. The 1950's and 1960's was the time my parents grew up in and their parents were high school educated middle class workers, my mom came from a family of eight children and most of them went to Catholic schools for at least part of their schooling, my mom the youngest never went to public school. The yuppies today have far more education, floor space, cars and money than what my parents had growing up and many of them have trouble dealing with one kid. These people could easily afford to live a very comfortable life in my neighborhood with one or two kids. Parochial schools are also much cheaper than secular private schools. Many of the people who are the biggest whiners are often those that have much more money than most families with children have in the city even in this day and age. They just think 3,000 square feet and an acre yard is a necessity for two kids.

[lawfin]

Originally Posted by Chicago103

I was actually referring to two different time periods but didn't clarify. The time my grandparents grew up was actually more like the 1910's-1930's and they did have a harder life but even all of them spent at least part of their schooling at Catholic schools. The 1950's and 1960's was the time my parents grew up in and their parents were high school educated middle class workers, my mom came from a family of eight children and most of them went to Catholic schools for at least part of their schooling, my mom the youngest never went to public school. The yuppies today have far more education, floor space, cars and money than what my parents had growing up and many of them have trouble dealing with one kid. These people could easily afford to live a very comfortable life in my neighborhood with one or two kids. Parochial schools are also much cheaper than secular private schools. Many of the people who are the biggest whiners are often those that have much more money than most families with children have in the city even in this day and age. They just think 3,000 square feet and an acre yard is a necessity for two kids.

I am sympathetic to your argument and I think it touches on deeper issues touched on by Attril above; one thing I can think of is when I was young my parents, who were off the boat immigrant....didn't own a car. My dad had a company car until roughly the early 80's my mom didn't get a new car until maybe 1984; she had a used one from my aunt for a time in the late 70's.

Now almost all of my cousins who have families have at least 2 cars and often a third vehicle / mini-van. Just getting rid of one of those would probably save 8-10 K a year; more than enough to go to a Catholic parochial for multiple children.

Incidentally, my fathers sisters were both here prior to him in total there were 13 of us.between 3 families and we all went to catholic grammar / hs --from the late 1960's - early 1990's (brother graduated HS in '92)

[spyguy]

http://www.chicagotribune.com/busine...529,full.story

In search for talent, companies relocating to downtown Chicago
By Alejandra Cancino July 31, 2011

As the office-space market slowly recovers, downtown Chicago is benefiting from a trend long in the making: companies relocating from the suburbs.

During the past five years, at least 10 companies have relocated some or all of their business downtown, including United Airlines, BP and Willis Group Holdings. Now, Acco Brands, Sara Lee Corp. and Barilla are among companies said to be considering moving to the city.

[Attrill]

http://www.chicagotribune.com/busine...,1327621.story

Kraft Foods to split into 2 companies

Kraft also announced that its second-quarter earnings climbed 4 percent and raised its outlook for the year

By Emily Bryson York
Tribune staff reporter

The Northfield-based conglomerate, currently the world's second-largest food company, said it will divide itself into two publicly-traded companies next year: a $16 billion North American grocery business, and a $32 billion global snacking business. Both companies are expected to be based in Chicago.

Good news that they're staying in the Chicago area. It will be interesting to see if they need more office space, or if they'll just locate both companies at the Northfield Campus.

[Vlajos]

Originally Posted by spyguy

http://www.chicagotribune.com/busine...529,full.story

In search for talent, companies relocating to downtown Chicago
By Alejandra Cancino July 31, 2011

As the office-space market slowly recovers, downtown Chicago is benefiting from a trend long in the making: companies relocating from the suburbs.

During the past five years, at least 10 companies have relocated some or all of their business downtown, including United Airlines, BP and Willis Group Holdings. Now, Acco Brands, Sara Lee Corp. and Barilla are among companies said to be considering moving to the city.

I saw this article in Sunday's paper. What is Barilla?