P001_CCB_20210322.indd 1 the SiliconValley ofpot How Chicagobecame win themback Chicago mustdoto Valley” business, forthepot says no Holdings. dustries, Cresco Labs andVera- Green marijuana: sell umb In- the United States that grow and ve biggest public companies in Weed. CONVENTIONS companies into giants marijuana turn local Early obstacleshelped “Chicago isSilicon inasense ishometo ecity three ofthe Call Chicago thecapital ofBig FACTORIES FORWARD force. of alagginglabor accelerating ahead tech advancesare heats upagain, of theeconomy’ As the‘engine MANUFACTURING VOL. 44,NO.12 NEWSPAPER l BY JOHN PLETZ PAGE 15 : What . PAGE ChicagoBusiness.com/CrainsForum FIND THECOMPLETESERIESONLINE l ALL RIGHTSRESERVED l l COPYRIGHT2021CRAINCOMMUNICATIONSINC. 3 nue rose 151percent last year, soar.their fortunes GTI’s reve- companies havego-based seen in Illinois last year, the Chica- of recreational marijuana sales o. Fueled by inpart thelaunch aslegalizationthe country took acrossning licenses oracquiring giants,emerged asindustry win- privately heldPharmaCann have use, GTI, Cresco, Verano and marijuanaand sell formedical issued its torst grow licenses application.cense Crescoadvised on its original li- consultant from Denver who Kayvan Khalatbari, acannabis In the six years since Illinois IN DEMAND JOBS CHICAGOBUSINESS.COM : eration, Chicago istheearly percent inthepast 12months. and itsstock has increased 650 Cresco CEOCharlie Bachtell Here are the10hottest well-paying careers inIllinois For the rst timeinagen- See See WEED COVID pain. investors’ always sharing aren’tCEOs PAGE 4 JOE CAHILL on Page 29 | MARCH 22,2021| MARCH |

JOHN R. BOEHM

$3.50 A movingtarget Herd immunity: Threshold for stopping COVID ishigherinsomeareas hoods—with ahigher concen- hoods—with across each ofthecity’s neighbor- 250,000, immunity must spread 5,000 Chicagoans andsickened thatize avirus has nearly killed munity.” “herd associated with widely im- percent ofthepopulation, alevel forvaccinesanxiously to reach 70 accelerate, public waits aweary It’s notthat simple. To neutral- As COVID-19 inoculations BY STEPHANIE GOLDBERG showpieces. out among home that stands &CraftsAn Arts PAGE REAL ESTATE 31 showing we’re at 70or80percent, stop COVID-19.necessarily mix of1.9millionresidents won’t In otherwords, vaccinating any hit harder thepandemic. during tration inareas that have been still unvaccinated. many are healthcare workers MINDING THE GAP: “Even iftheoverall average is See See HERD on Page 23 . Why so PAGE PAGE 3 3/19/21 2:43PM 12

ZAC OSGOOD

CREDIT FACTORIES FORWARD Socially consciousinvestinggainscurrencyasinvestorsseektoimprovesustainability and bene t thesocialgoodwhilestillmakingmoney.

PAGE 15 2 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS New coalition wants lawmakers to ride herd on ComEd The groups are seeking an end to utility donations to political campaigns consumers rst once and for all,” AARP Illinois Director Bob Gallo and ratepayer- nanced charitable contributions, among other things says in a release. ComEd’s formula rate-making BY STEVE DANIELS e investigation thus far has re- favor in Spring eld, including util- authority expires at the end of next sulted in criminal charges against ity donations to state politicians’ year, and it’s attempting to take ad- Two consumer groups and a former ComEd CEO Anne Pramag- campaigns and ratepayer funding vantage this year and next. ComEd prominent environmental organi- giore, former lobbyist Michael Mc- of utilities’ contributions to chari- has budgeted nearly $4 billion in zation are joining forces to clamp Clain and two others. Madigan, ties. ComEd in the past has called on spending on the local grid through down on utility practices that though a target of the probe, hasn’t nonpro ts it’s helped nance to ad- GETTY IMAGES 2022—investments that will lead to resulted in favorable legislation been charged and says he’s done vocate on its behalf when it’s lobbied higher rates. raising delivery rates for consum- nothing wrong. for lucrative laws in the state capital. of CUB. He notes that some of the Gov. J.B. Pritzker has called on ers and padding pro ts of Com- e coalition also wants to “re- provisions the new coalition wants state lawmakers to pass compre- monwealth Edison and downstate store oversight” of ComEd. Illinois CUB MISSING are in the bill CUB is supporting. hensive energy legislation this power company Ameren Illinois. PIRG has called for an audit of Notably missing from the coa- e coalition hopes AARP in par- spring that would put Illinois on AARP Illinois, Illinois PIRG and ComEd’s billions in capital spend- lition is the state’s most high-pro- ticular might add some heft to its in- course for a carbon-free pow- the Environmental Law & Poli- ing enabled by the 2011 smart-grid le consumer advocate on utility uence. Seniors vote at higher rates er-generation industry. But, as is cy Center have formed the “Take law that was at the heart of the fed- issues, the Citizens Utility Board. than other demographics. Utilities typical in energy politics, various Our Power Back” coalition. It’s eral government’s investigation of CUB is part of the Illinois Clean have run roughshod over consum- interests are vying for support, and advocating that ComEd reimburse ComEd’s relationship with Madi- Jobs Coalition, which has called er groups in past negotiations over it’s unclear if that goal will be met. consumers for the pro ts it gained gan’s political operation. ComEd’s for an end to annual formula rates wide-ranging energy bills, but that In the past, utility clout made par- through a nearly decadelong brib- delivery rates increased 37 percent for ComEd and Ameren but also was before ComEd’s admissions of ties at loggerheads come to the ta- ery scheme aimed at winning sup- thanks to the law, which allowed has a far broader agenda aimed at inuence-peddling and bribery. ble and get what favorable policies port from then-House Speaker Mi- the utility to change its rates every overhauling the state’s power-gen- “On behalf of our members, and they could from the process. e chael Madigan, the most powerful year via a formula that took away eration industry. all Illinoisans 50-plus, we stand dynamic is dierent now thanks to politician in the state at the time. much of the discretion state utility “We view it as a complementary fervently against this corruption ComEd’s disgrace, and even peo- ComEd admitted to the scheme in regulators had over rate-setting. eort, and our focus is on passing that has hurt everyday Illinoisans ple involved in the talks on a reg- a deferred-prosecution agreement And it wants to end some of the the Clean Energy Jobs Act,” says and implore the General Assem- ular basis are struggling to predict with federal prosecutors in July. levers ComEd has employed to win David Kolata, executive director bly to support this agenda and put the outcome. Exelon CEO’s pay: As if the ComEd scandal never happened With 2020 comp of more than $15 million, Chris Crane paid no nancial price for projected a cost of up to $950 mil- er Exelon execs will depend on how lion before taxes due to that week. the company performs within that ComEd’s admissions of bribery and the $200 million ne Exelon shareholders paid Exelon correspondingly reduced range. A spokesman said those tar- its adjusted operating earnings fore- gets for Crane and the others were BY STEVE DANIELS eld from 2011 to 2016, resulting in entire business to ensure that noth- cast for 2021 to a range of $2.60 per set in January—before the Texas hundreds of millions of dollars of ing like it ever happens again.” share to $3 per share. at’s down eect was known—and happened It’s as if the Commonwealth Ed- additional revenues annually. In addition, there are questions as from $3.22 per share in 2020. to fall within the revised earnings ison scandal last year never hap- “Exelon was not made a party to whether the cash bonuses Crane “e guidance for 2021 is lower range provided to investors in late pened. to the deferred prosecution agree- and other senior executives are paid than the adjusted operating EPS February, after Texas. e company Exelon CEO Chris Crane, along ment and no charges were brought at this time next year will take into results for 2020 as a result of the im- doesn’t disclose ahead of time what with other top executives, paid no against it,” reads the only substan- account the company’s poor and pacts of the severe weather event in that target range is. price in terms of their 2020 com- tive statement in the proxy on the costly performance during the ex- Texas, lower realized energy prices, Exelon forecast in February that pensation for the breathtaking cor- matter. treme winter weather in Texas last and lower capacity revenues, par- Texas would reduce earnings per ruption confessed by the company’s month. Exelon owns three large tially oset by opportunities and share by 20 cents, and that’s only largest utility subsidiary, according FINE EXCLUDED natural gas- red power plants in growth at the utilities,” the company assuming the company nds hun- to the company proxy, led March Adding to the mix is that Ex- Texas, and they failed to operate says in the proxy. dreds of millions in cost osets to 17 with the Securities & Exchange elon ignored the $200 million ne during the disaster. e company Cash bonuses for Crane and oth- help blunt the impact. Commission. ComEd paid the federal govern- Crane received $15.2 million ment as part of its deal with pros- in cash, stock and other bene ts, ecutors. e $200 million was ex- down slightly from $15.3 million the cluded from the “adjusted operating year before. His $1.9 million in cash earnings” on which Crane and oth- incentive pay—the primary reec- er executives were judged in deter- tion of the company’s performance mining their bonuses. Had the 20 last year—was down slightly from cents-per-share loss from the ne $2.1 million the year before. been included, Exelon’s earnings Barely a mention was made in wouldn’t have reached even the the proxy of ComEd’s admissions threshold on which Crane and the wintrust.com/privateclient to a nearly decadelong campaign others were paid the bonus. of bribery and inuence peddling In an email, a company spokes- aimed at winning the favor of then- man says, “Chris Crane’s 2020 com- House Speaker Michael Madi- pensation appropriately reects NEW NAME SAME GREAT SERVICE gan. Former ComEd CEO Anne the company’s strong nancial and Pramaggiore has been charged in operational performance against the scheme, which so far hasn’t re- goals the board set. e deferred sulted in charges against Madigan. prosecution agreement this year ree aliated lobbyists also were ended the U.S. Attorney’s investiga- Let us re-introduce ourselves. We’ve renamed our Wintrust Wealth Services group to Wintrust charged, and one former ComEd tion into ComEd and Exelon, and Private Client. We want to make sure you know that we’re dedicated to helping private clients exec pleaded guilty to conspiracy. we concluded that the conduct at Pramaggiore and the three lobby- issue was orchestrated by a small manage day-to-day finances, strategies for growth, and solutions to protect wealth. With a high- ists have pleaded not guilty. number of senior ComEd employ- touch, white glove experience, you’ll work with experts in this space who craft custom solutions e scheme largely occurred un- ees and outside consultants that to meet your individual needs. der Crane’s watch, yet he and oth- no longer work for the company. er Exelon senior executives have Although the DPA contained no al- pinned the blame on Pramaggiore legations of wrongdoing by Exelon, and the others while professing no the company moved aggressively to knowledge of how ComEd was win- implement comprehensive ethics Banking products provided by Wintrust Financial Corp. banks. ning legislative triumphs in Spring- and compliance reforms across the Securities, insurance products, financial planning, and investment management services o ered through Wintrust Investments, LLC (Member FINRA/SIPC), founded in 1931. Trust and asset management services o ered by The Chicago Trust Company, N.A. and Great Lakes Advisors, LLC, respectively. GREG HINZ Investment products such as stocks, bonds, and mutual funds are: IS ON VACATION NOT FDIC INSURED | NOT BANK GUARANTEED | MAY LOSE VALUE | NOT A DEPOSIT | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 3 A COVID mystery: Vaccination rates in health care Knowing the number and identities of unvaccinated medical workers would help in ght against coronavirus

BY A.D. QUIG

More than three months into a massive COVID-19 vaccination campaign that started with people who work in hospitals, clinics and nursing homes, local o cials don’t know how many health care work- ers have been inoculated. Although anecdotal evidence suggests more than 160,000 across the state might still be unvaccinated, the actual number is unknown. A re- lated unknown: Which members of the health care workforce haven’t

been vaccinated. BOEHM R. JOHN Knowing the number and iden- Illinois had an estimated 540,000 health care tities of unvaccinated health care workers when the vaccine rollout began. workers is “essential” to understand- ing our vulnerability to COVID, says cinated workers to COVID wards, Dr. Emily Landon, the executive potentially furthering viral spread. medical director for infection pre- Public health agencies can’t target vention and control at the Univer- vaccine promotion eorts to the sity of Chicago Medicine. “It’s hard unvaccinated and learn whether for humanity to get back to normal workers are hesitant to get shots, or without knowing who’s vaccinated.” just having a hard time scheduling at information gap impedes vaccination appointments. And pa- the COVID ght in important ways. tients can’t evaluate the level of risk ough hospitals and clinics main- in various health care settings. tain strict COVID protocols, they might unwittingly assign unvac- See VACCINATIONS on Page 23 The battle to bring back convention biz Our traditional advantages CRAIN’S ILLUSTRATION / GETTY IMAGES / ILLUSTRATION CRAIN’S —size and the city—may not win the day now Your house sold in a BY DANNY ECKER Gov. J.B. Pritzker this month answered the long-standing ques- tion about when McCormick Place might resume hosting events. few days. Now what? Whether the convention center ever generates its pre-COVID-19 If they haven’t lined up a new home or an Airbnb, sellers are writing economic impact again, however, is still in doubt.

rent-back deals into contracts BY DENNIS RODKIN While they cling to a desperately ECKER DANNY needed glimmer of hope that meet- McCormick Place has burnished its image for BECAUSE THEY HAD BEEN WATCHING the real estate Mundelein and their furniture into storage. ings and trade shows will come decades as a top destination for conventions. market, Lisa and Joe Krogman had a feeling their With the inventory of homes for sale super-tight back with limited capacity this house in Hawthorn Woods in Lake County would and aordability high thanks to low interest rates, summer, anxious hospitality in- perts say: Some of Chicago’s his- sell fast. It sold in a single day, which was “much many homes in the Chicago area are landing buyers dustry stakeholders have few clues torical advantages in an industry quicker than I imagined,” Lisa Krogman says. within a few days of hitting the market. about what those events will look whose canceled events cost the Fortunately they had been looking for temporary ere’s no o cial count of quick sales, but so far like when they do—or how they city an estimated $3 billion in lo- housing, so the Krogmans were able to put their in 2021, dozens of homes have sold in less than a may change for good. e pandem- cal spending over the past year are house under contract to a seller without anxiety week, Crain’s found by watching sale records. Two ic has in some ways reinforced the now cloudier. Having the biggest about where they’d go next, a concern that grips among many examples: In Logan Square, a house bedrock of the convention indus- convention center on the conti- many sellers in this year’s fast-moving housing on Bernard Street came on the market Feb. 2 ask- try—that people need to meet face- nent may no longer be as crucial market. ing $695,000 and went under contract six days lat- to-face to do business—yet also if some events shrink with more When the sale of their house on Governors Way er. e sale closed March 12 at 5 percent over the proved what can be accomplished people participating online. Even closed March 3, the Krogmans, both engineers, virtually, and for a lot cheaper. moved their family of ve into an Airbnb rental in See RENT-BACKS on Page 29 e bottom line, meetings ex- See CONVENTIONS on Page 28

P003_CCB_20210322.indd 3 3/19/21 2:42 PM 4 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS CHICAGO COMES BACK JOE CAHILL ON BUSINESS COVID tests boards on executive pay Corporate proxy statements will set “prior to the time the Compen- make interesting reading this year. sation and Leadership Perfor- No, really. is year’s annual mance Committee could have lings will show how the economic known or anticipated the impacts fallout of COVID-19 aected exec- of the COVID-19 pandemic.” utive compensation at America’s Motorola Solutions also paid biggest companies. Between the executive bonuses despite missing lines, proxies will speak volumes performance targets. Instead of about those companies’ com- the goose eggs they earned under mitment to the principle that pay established metrics, top executives GETTY IMAGES should reect performance. got bonuses at 50 to 65 percent of Corporate boards like to trum- the targeted amounts. e switch pet their fealty to the concept, and was worth $1.4 million to CEO most have structured elaborate Greg Brown. Motorola shares rose What it takes to rebuild with compensation programs designed 6 percent last year while the broad- to link the pay of CEOs and other er market climbed 16 percent. top brass to the results they deliver Explaining the move, a compa- for shareholders. ny ling says, “the pandemic rep- more women in leadership Pay-for-performance pays o resented an extraordinary event handsomely when a booming outside of management’s control,” The COVID crisis illuminated more crises, especially relating to gender. Here’s how we economy lifts prots, shareholder crediting execs with “an admirable returns and other metrics that job supporting key public safety can nd a way forward that includes underrepresented voices as decision-makers. drive pay under today’s execu- and other essential customers” tive compensation programs. during the year. BY EMILY DRAKE AND TODD CONNOR making statistics, statements and Pay-for-performance can turn One big local company ham- commitments available as a model painful when external conditions mered by COVID took a dierent Chicago Comes Back is a weekly series on ChicagoBusiness.com pro- for how we can get there much fast- sour, pushing compensation met- approach. Aircraft maker Boeing viding leadership insights to help your business move forward, written by er. And as an entrepreneur myself, rics down. posted a $12 billion loss as sales leadership consultants Emily Drake and Todd Connor. we need more female venture-capi- e most disruptive event to hit fell 32 percent to $58 billion on Drake and Connor facilitate Crain’s Leadership Academy. Drake is talist decision-makers. American business since World plunging air travel demand. Boe- a licensed therapist, owner of the Collective Academy and a leadership War II will show how much pain ing stock fell 34 percent. Newly ap- coach. Connor is the founder of Bunker Labs and the Collective Academy TC: So, transparency, listening, cu- executives are willing to take. pointed CEO David Calhoun took and is also a leadership consultant. rating vs. creating—these are roles COVID-19 and related lockdowns no salary after March 2020 and Check out previous installments at ChicagoBusiness.com/comesback. dominant culture can play, because received no annual bonus. He it’s the right thing to do. I couldn’t SOME BOARDS ARE TINKERING did receive long-term equity TODD CONNOR: Sometimes I feel about 20 were founded and led by agree more. A recent McKinsey awards worth about $21 mil- like talking about structural change women. We can agree that’s unac- report on leading through crisis WITH PERFORMANCE METRICS. lion, most of which are subject shuts people down—and I get it. It’s ceptable. But I’m nervous we’ll stay shared a powerful truth: “A crisis is to performance-based vesting human nature to do what’s com- there and not move forward, with when it is most important for lead- have devastated some industries, criteria over a period of years. fortable, or stay in the discomfort the intention to advance women ers to uphold a vital aspect of their sending revenues, prots and Credit Boeing for declining to we know. International Women’s because it’s simply the right thing to role—making a positive dierence share prices plunging. Sharehold- lower the bar retroactively. Ad- Day and marking the one-year an- do—not because it “plays well.” in people’s lives.” Whether it’s men- ers of those companies are in a justing performance metrics after niversary of the World Health Or- toring—through a formal program world of hurt. the fact insulates executives from ganization determining COVID-19 TC: I know you’ve been going or just doing it because it’s the right CEOs? Performance metrics external events deemed beyond to be a pandemic all took place the through your own process with thing to do—I’d ask all leaders to under many compensation plans their control. Shareholders get no same week. e city is opening up. that, getting clear on your motiva- evaluate where they are showing up would dictate that some executives such protection. For those of us who are more than tion for the actions you’ve taken as for service. Do you have women on receive no bonuses for 2020, a Companies tend to stick with two weeks out from our second vac- a leader, whether it’s for external af- your personal advisory board? Do multimillion-dollar blow in many established metrics when external cine, we have new guidelines from rmation, or like you said, because you center women in conversations cases. But boards of directors often forces have the opposite eect. the CDC. In all that, I’ve been feel- it’s right, full stop. e latter is hard- about changes to culture, strategy have discretion to override pre-es- Executive pay soars during good ing tempered hope. While anniver- er. I get distracted by my own pur- and hiring? Do they have a seat at tablished performance metrics times, even though CEOs have no saries and months or days that hon- suits, too. But I’ll say this: As a man, the table? Are they in the succes- and protect execs against the worst control over the events boosting or a moment or progress matter, I now overlay that instinct with the sion plan? outcome. company performance. I’m watchful for the seduction that question, “Is this my time to lead?” Some local boards are doing just COVID may cast a spotlight on we’ve “arrived” vs. the acknowledg- Even with women making progress ED: You often say, “If you want to that. At Deereld-based drugstore that inconsistency, as companies ment of the progress and the com- in accessing the C-suite, or start- be on Crain’s list of Best Places chain Walgreens Boots Alliance, helped by the pandemic disclose mitment to continuing the ght. Is ing companies, it’s nowhere near to Work, then be a great place to for example, COVID’s impact on executive pay. Packaged foods that too gloomy for spring’s arrival? where it should be. work.” Simple, not easy. It reminds store trac and expenses crushed companies like Kraft Heinz and And while women represent 70 me of our tendency to overcompli- a protability gure used to deter- Mondelez have soared on demand EMILY DRAKE: Not at all. It sounds percent of the global health work- cate how structures are dismantled mine executive bonuses. Under from consumers forced to eat like a leadership skill I’ve been force, they have also lost jobs at and new ones are built. And no one that metric, three senior executives more meals at home. Will their cultivating: bounded optimism. twice the rate of men. Here in Chi- loves and honors the complexity of didn’t qualify for an annual bonus brass take the full compensation And I think as the seasons go on, cago, though, as well as abroad, human beings more than me, but for 2020. payable under performance met- we’ll be able to be truly optimistic. many have noted the unique im- the simple truth is, our systems ar- Not to worry. Walgreens’ board rics boosted by that demand? But you’re right: Leadership isn’t pact of women in political leader- en’t working, we need to x them, tinkered with the metrics, using For one local company, the about milestones, it’s about the ship and the impact on a COVID to make amends for what we didn’t original standards for half the year answer is yes. Chicago-based food long game. e crisis of COVID il- recovery in countries like Denmark, know before, and to create a way and new criteria for the six months company Conagra boosted CEO luminated more crises, especially Germany and New Zealand. forward that centers underrepre- aected by COVID. Presto: Co-CO- Sean Connolly’s annual bonus 63 as it relates to gender: the crisis of sented voices to make decisions. Os Ornella Barra and Alex Gourlay, percent to $2.6 million as operat- women leaving the workforce, and ED: And that’s just one measure of is column has been about Chi- along with CFO James Kehoe, each ing income and cash ows blew it’s disproportionate eect on Black progress. We’ve had the great priv- cago coming back, and we are, but got an annual bonus of about $1 past targets. and Brown women, the insanity of ilege of working with organizations what it isn’t about is an outcome. million. eir total pay for scal I don’t fault Conagra for sticking the slowness of progress in gender to design programming for female 2020 rose between 26 percent to its metrics. But criteria that pay parity, and the list goes on. Ev- leaders, especially in male-dom- TC: Right. If readers haven’t no- and 34 percent to a range of $8.7 are good enough for good times eryone should read, share and take inated industries like technology ticed, we’re in the midst of a jour- million to $11 million, as prot fell should be good enough for hard action outlined in the Crain’s op-ed and manufacturing. I’m grateful to ney. COVID illuminated what we 89 percent and Walgreens shares times, too. Boards that drop met- last month about how to ensure do the work, but at the rate we’re either didn’t know, or probably dropped 26 percent. rics to prop up executive compen- a recovery from the “shecession.” going, pay parity isn’t happening more honestly, that we ignored. A Walgreens’ proxy notes that sation are paying for something Even as a woman, I was appalled for another 40 years. at’s un- pivot from self to other is how I’d original performance metrics were other than performance. to learn that among startups that acceptable to me. We need more like to lead going forward. I know have gone public since 2013, only companies to take Adobe’s lead: you do, too. WORK YOUR WAY ANYWHERE Whether you're working at home, in the office, or splitting time between both, we've got you covered.

Shop all the latest tech and security solutions your business needs • PCs, Printers and Networking • Cyber-Security Software • 24/7 Remote Tech Support

We’re here to help Chicago businesses work productively and #KeepBusinessGoing. Learn more today at officedepot.com

FREE Next-Business-Day Shipping Free Curbside Pickup on qualifying orders of $60 or more within our local delivery areas. when you order online at least 2 hours before store closing. See below for details. Visit officedepot.com/pickup for details. Curbside available in most stores* Free Shipping/Delivery: Minimum purchase required after discounts and before taxes. Orders must be placed by 5:00 P.M. local time (in most locations) via phone/online or 3:00 PM *Subject to state and local regulations, our stores are via fax. Orders outside our local delivery area and most furniture, oversized, bulk items, cases of open for business. Please call your local store for updated bottled water and other beverages and special order items do not qualify. Non-qualifying orders hours and information. incur a delivery charge. Delivery fees will be noted prior to purchase. Other restrictions apply. See officedepot.com/delivery, call 800.GO.DEPOT or ask a store associate for details.

We reserve the right to limit quantities sold to each customer. We are not responsible for errors. Office Depot® is a trademark of The Office Club, Inc. OfficeMax® is a trademark of OMX, Inc. ©2021 Office Depot, LLC. All rights reserved. RU030821

21cb0085.pdf RunDate 3/8/21 FULL PAGE Color: 4/C 6 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS Debt troubles cloud future of another suburban mall Owner of Lincolnwood Town Center defaults on $47.3M mortgage, contemplates restructuring

BY ALBY GALLUN ee Mills, Yorktown Center, the Arbo- fered a big setback in 2018 when retum of South Barrington and the Carson’s, its biggest tenant, Debt woes are mounting for an- North Riverside Park Mall all have closed its department store there. other local shopping mall: the Lin- faced debt problems of varying de- e property bounced back in

colnwood Town Center. grees over the past year. 2019 when furniture retailer the GROUP COSTAR e owner of the 423,000-square- Washington Prime, a real estate RoomPlace leased the Carson’s Lincolnwood Town Center foot mall, Washington Prime Group, investment trust, was able to nego- space. But the mall is just 77.3 per- is on bankruptcy watch and missed tiate a so-called forbearance agree- cent occupied now, according to the REIT could renance the shopping servicer of the non-recourse loan its January payment on the proper- ment last year over the mortgage annual report, and it was not gener- center with a new loan. Mall values and is considering various options,” ty’s $47.3 million mortgage. Compli- on the Lincolnwood Town Center, a ating enough cash ow to cover its have declined so much and lenders Washington Prime said in its annual cating matters further, the mortgage mall at the corner of Touhy Avenue debt payments even in 2019. are so leery of the sector that it’s be- report. matures April 1, and it’s unclear and McCormick Boulevard. Under It’s unclear what comes next for come extremely hard to renance A Washington Prime executive how Washington Prime will come a forbearance agreement, lenders the property. Its mortgage comes the properties. declines to comment. A represen- up with the money to pay it o—or agree not to take legal action, like due April 1, but it’s just one of many It’s most denitely a lot harder tative of the special servicer, New if it will even try. ling a foreclosure suit, against a problems facing Washington Prime, than it was in 2014, when newly in- York-based Torchlight Investors, did Malls like Lincolnwood Town property owner that has defaulted which conrmed March 16 that it dependent Washington Prime took not return a call. Center have suered greatly during on a loan, and the borrower often may try to restructure its debt in out the loan on Lincolnwood Town e shopping mall industry was the coronavirus pandemic, which agrees to some kind of payment Chapter 11 bankruptcy protection. Center. e debt then was packaged ourishing when Lincolnwood has merely compounded the prob- plan in return. e REIT, which was spun o in with other loans and sold to bond Town Center celebrated its grand lems they already were facing as e pact allowed Washington 2014 from Indianapolis-based Si- investors in a commercial mort- opening in 1990. e festivities in- online shopping ate into the brick- Prime to suspend monthly pay- mon Property Group, owns about gage-backed securities oering. At cluded “Wheel of Fortune” star Van- and-mortar retail market. ments on Lincolnwood Town Cen- 100 shopping centers in the U.S., the time, the mall was appraised at na White, who signed autographs. With many stores closed in the ter’s mortgage from May through including properties in Waukegan, $89.1 million. But the mall’s fortunes have fad- early days of the pandemic, shop- October of last year, according to se- Orland Park and Countryside. A special servicer, or rm hired ed in recent years. Its revenue fell pers shifted even more purchas- curities lings. Payments resumed Washington Prime could include to oversee troubled CMBS loans, is to $8.7 million in 2019, down 29 es online. Some retailers simply in November, but Washington Lincolnwood Town Center as part of now in charge of the mortgage on percent from 2016, according to stopped paying their rent. What was Prime defaulted on the debt when a broader restructuring, or it could the Lincolnwood mall. Bloomberg data. Its net operat- a slow decline in the sector quickly it missed its January payment, ac- just decide to give up the property, e Washington Prime venture ing income fell 40 percent over the turned into a crisis for many land- cording to its 2020 annual report. avoiding a foreclosure ght. It’s also that owns the property “has initi- same period, to $3.3 million. Data lords. Big local properties like Gurn- Lincolnwood Town Center suf- possible, though not likely, that the ated discussions with the special for 2020 is not yet available.

CHICAGO CFO OF THE YEAR® AWARDS 10TH ANNIVERSARY | NOVEMBER 18, 2021

NOMINATIONS ACCEPTED THRU MAY 24, 2021

Bringing the Chicago area business community together to honor and celebrate excellence in nancial leadership. Find nomination information and learn more about the Chicago CFO of the Year®Awards at www.chicagocfo.org Questions? Contact Susan Gidley at [email protected] or 312.263.1661

Our Prestigious Sponsors: Media Sponsor: CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 7 PepsiCo inks LeBron James to big endorsement deal last year to invest more than $400 Mtn Dew Rise Energy, but we also The hoops star and cultural icon is backing a new beverage million over ve years in Black- look forward to the collective im- that’s part of the Chicago-based Gatorade division owned businesses and in Black pact we can make on the people communities as well as to “increase we serve through education, so- conquer the day,” Fabiola Torres, Black representation at PepsiCo.” cial justice and community initia- BY E.J. SCHULTZ PepsiCo’s chief marketing o cer “LeBron is arguably the most tives.” It’s o cial: PepsiCo has poached and senior VP for its energy cate- inuential celebrity in the galaxy James in a statement said: “It’s LeBron James from Coca-Cola Co. gory, said in a statement. “LeBron right now. He dominates on the important to me that I believe in e basketball megastar will be is the epitome of motivation and court, has a thriving enterprise, the brands and products where the face of the new Mtn Dew Rise has achieved legendary status by DEW MTN puts his family rst, and is com- I invest my time. When I rst Energy drink—a product of Pep- seizing every morning. He not only munity service eorts, especially mitted to social change and mak- learned about the message behind siCo’s Chicago-based Gatorade continues to excel on and o the those related to diversity. In its press ing a positive impact on commu- the drink—the fact that every day division—as part of a larger en- court but has dedicated his life to release announcing the signing of nities,” Adam Harter, PepsiCo’s is a chance to rise for all of us—that dorsement deal that will include help others rise as well.” James, PepsiCo stated the deal will senior VP for media, sports and really resonated with me.” other brands across PepsiCo’s PepsiCo also seems poised to “touch on numerous aspects of entertainment, said in a state- food and beverage lineup, as well use LeBron’s standing in the sports James’ wide-ranging work,” while ment. “He is not only going to be E.J. Schultz writes for Crain’s sis- as social justice endeavors, the world and beyond to boost its com- referencing the company’s pledge an incredible brand partner to ter publication AdAge. company conrmed last week. Coca-Cola Co. said in January that it had parted ways with James, ending a relationship that began in 2003 when he was 18 years old. Pepsi had declined to comment on reports that it landed the star, until March 17, when it outlined the relationship. e company did not disclose nancial terms of the multiyear deal, but James is known to command top dollar. ... He ranks No. 3 on the list of the “world’s 50 most marketable ath- letes” compiled late last year by Nielsen, trailing only international soccer stars Lionel Messi and Cris- tiano Ronaldo. Pepsi is inking James as it seeks a bigger slice of the energy drink market, which grew 7% by dollar sales in 2020, according to Bev- erage Digest. Monster and Red Bull continue to dominate, with 33% and 24% share by volume re- spectively, according to Beverage Digest. But Coca-Cola Co. and PepsiCo have spent more money on marketing and product devel- opment in recent years in hopes of gaining ground. Coca-Cola in- troduced Coke Energy last year— with roughly three times the caf- feine of regular Coke—and backed it with a Super Bowl ad. For PepsiCo, Mtn Dew Rise is “a big bet for them and with a big bet you want a big personality to help sell that to consumers—and that is what they are doing with LeBron,” says Beverage Digest Editor and Publisher Duane Stanford. Rise is positioned as a morning drink. It has 180 mg of caeine, vitamins A and C, as well as fruit juice and Citicoline, a dietary sup- plement that has been used to improve brain function. Flavors include Pomegranate Blue Burst, Orange Breeze, Strawberry Mel- on Spark, Tropical Sunrise, Berry Blitz and Peach Mango Dawn. Cans feature a lion—described by PepsiCo as “a king with a erce inner spirit”—as part of a visual identity created by PepsiCo’s in- house design team. e brand re- leased a promotional video show- ing James’ face emerging from the Centene East Coast Headquarters lion image. A larger brand cam- paign is expected later this year Charlotte, North Carolina from Mtn Dew agency TBWA\Chi- at\Day New York. “As energy beverages evolve We see our work through the eyes of the people who will use them every day. Through their to provide even more functional eyes, we see places of innovation, industry, technology, healing, research and entertainment. benets, we’re excited to intro- duce the new Mtn Dew Rise En- The result? Powerful structures with impacts that reach far beyond these walls. ergy for those looking for a morn- ing boost with enhanced mental claycorp.com clarity and immune support that helps you conquer the morning to 8 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS Rule would slow Emmett Till, Muddy Waters museums Ald. Sophia King shepherds a proposal to require zoning approval for turning historic houses into museums

BY DENNIS RODKIN for any house museum, similar to what a proposed high-rise needs if At a time when at least four its developers aim to go taller than South Side homes are in the pro- “by right” zoning would permit. cess of being turned into muse- e chair of the committee, Ald. ums honoring their Black former Tom Tunney, 44th, held the pro- residents, one alderman aims to posal for consideration at the com- require more input from neighbors mittee’s March 23 meeting. on projects like them. If enacted, the ordinance could Ald. Sophia King, 4th, found that slow development of several proj- The former home of blues great Muddy Waters, at 4339 S. Lake Park Ave., is at the center of this photo. owners of these homes can turn ects that are on the boards, all them into museums “by right,” honoring history in Chicago. e the Nation of Islam, but Crain’s was no means to inuence the chang- hammer instead of a scalpel” to re- meaning they do not require any former homes of both civil rights not able to conrm. es. solve problems like excess parking. zoning change. icon Emmett Till, in West Wood- “I’m disheartened by what “It’s an attraction,” King said in Davis says her group would glad- at means “you can come into lawn, and blues great Muddy Ald. King is doing,” says Chandra the meeting. “You’re bringing peo- ly work with neighbors to devise a a neighborhood and basically just Waters, in North Kenwood, are in Cooper, a great-granddaughter ple into the neighborhood. ere parking solution that works for ev- turn your house into a museum the early stages of conversion to of McKinley Morganeld, whose are no considerations for quality of eryone but that adding a new layer without any other consideration,” museums. Also being discussed stage name was Muddy Waters. life in the neighborhood. I’m just of aldermanic control isn’t neces- King said at a Feb. 24 meeting of is a museum or nonprot use for Cooper is leading the eort to turn asking that there be a communi- sary to accomplish that. the Chicago City Council’s com- a Washington Park greystone that Muddy Waters’ former home at ty process, that aldermen are in- Given the dire economic con- mittee on zoning, landmarks and was a settlement house for Black 4339 S. Lake Park Ave. into a mu- volved.” ditions in West Englewood, Davis building standards. King said that women coming up from the South seum, an eort that got a $50,000 King did not respond to Crain’s says, she feels condent the neigh- in the Great Migration. grant from the National Trust for multiple requests for comment. bors would put developing projects e long-vacant former Historic Preservation in July. Cooper says she has worked with that bring new vitality to the block “I THINK THIS IS A WAY TO BASICALLY home of Black commu- “I think this is a way to basically King and her oce on details of over arguments about parking. SHUT DOWN OUR EFFORTS TO nity leaders Lu and Jorja shut down our eorts to preserve the Muddy Waters project and “she “We can have economic develop- English Palmer at 3654 this Black legacy,” Cooper tells never mentioned that this zoning ment of our Black neighborhoods PRESERVE THIS BLACK LEGACY.” S. King Drive is under Crain’s. e house has been in der- rule was something she was going without sacricing the benets of contract to a purchaser elict condition for years, but Coo- to do. Why not tell us? It feels like living in a peaceful neighborhood,” Chandra Cooper, a great-granddaughter that additionally wants per says a new roof will go on next she pulled the rug out from under Davis says. of Muddy Waters to turn it into a museum week, thanks to the National Trust u s .” Preservation Chicago posted a and library. grant, and rehab will follow. Naomi Davis, whose group petition against King’s ordinance her research came as a surprise to Ward Miller, executive director of King said that a house museum Blacks in Green owns the former at Change.org. As of 11 a.m. March city staers when she presented it Preservation Chicago, says there is might gobble up street parking home of Emmett Till and his moth- 18, it had more than 2,900 signa- to them several months ago. also a museum proposed in a Ken- and in other ways impact peo- er, Mamie Till-Mobley, on South tures. e group plans to present King is proposing an ordinance wood home that would honor Eli- ple in neighboring houses, and Saint Lawrence, tells Crain’s that the petition at the zoning commit- that would require a zoning change jah Muhammad, the late leader of that the community currently has King’s ordinance “is using a sledge- tee’s March 23 meeting. Port of Chicago ready to court industrial developers Move could attract e-commerce and logistics companies and result in hundreds of jobs

BY ALBY GALLUN developer with an industrial park the district to be dissolved. just up the road, in Pullman. e board considered a pro- E-commerce and logistics com- “It’s got great freeway access, posal to privatize the district but panies seeking warehouse space and you’ve got great proximity to rejected the idea in 2019. e on Chicago’s Southeast Side may the population center,” says Doig, board also is searching for a new soon have another place to set up who plans to submit a proposal executive director after its previ- shop. for the parcel. ous one resigned in October. e Port of Chicago is getting e board of the Illinois Inter- Port Chairman Ivan Solis did ready to oer about 90 acres along national Port District, which runs not return a call. the Bishop Ford Freeway for in- the Port of Chicago, was expect- e port, which covers 1,790 dustrial development, land that ed to consider a measure to seek acres, already includes the Har- could attract interest from busi- proposals from developers for borside International Golf Center, nesses in the expanding transpor- the property. A developer would and CNI has proposed building a tation, distribution and logistics likely control the land through a casino there. An industrial de- industries. A big development long-term lease, rather than buy- velopment could generate some there could bring hundreds of ing it from the port, Doig says. income for the district and turn jobs to an area still trying to ll The decision to develop the a long-fallow stretch of land into the economic void created by the land is part of a larger master something useful. Doig estimates The Port of Chicago plans to seek development proposals for about 90 acres, at left, along the east side slow decline of the steel industry. planning process by the board the site could accommodate in- of the Bishop Ford Freeway. e location, sandwiched be- to reposition the port and bring dustrial buildings totaling about tween the Bishop Ford and Lake in new uses. The port district a million square feet. site into Pullman Park, an indus- out of the question, according to Calumet north of 130th Street, board, whose members are ap- CNI is on the hunt for more land trial park that includes a Method Doig. e e-commerce giant isn’t could be especially appealing to pointed by the governor of Illi- as it wraps up a major develop- soap factory and distribution cen- tapped out on industrial space in companies that need last-mile nois and mayor of Chicago, has ment on the former Ryerson Steel ters for Whole Foods Market, SC the city, with plans for new distri- warehouse space to store prod- faced criticism over the years property in Pullman, on the west Johnson and Amazon. About 800 bution centers in Bridgeport and ucts for delivery directly to con- for poor management and stag- side of the Bishop Ford. And Doig people work in the park today. Gage Park. sumers in the city, says David nant shipping volumes. The Civ- sees his project in Pullman as a Even though Amazon already “I think Amazon, given their Doig, president of Chicago Neigh- ic Federation, a Chicago fiscal model for the port site. CNI has has a warehouse in Pullman, an- appetite, would be a possibility,” borhood Initiatives, a nonprot watchdog group, has called for developed most of the 170-acre other one on the port site isn’t he says. CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 9 New York investor makes big Fulton Market bet fall in the space previously occupied Vista Property Group is planting a high-pro le stake in the now-trendy former by Bushala’s shuttered Brass Mon- key Brasserie restaurant. meatpacking district while investor Marc Bushala completes a lucrative cash-out Mishan says Vista will market BY DANNY ECKER MAB bought the 88,000-square- the fully leased Morgan Manufac- the 400 N. Morgan property to new foot industrial property at 401 N. turing property—in which restau- commercial tenants and has no im- Hymie Mishan is betting there’s a Morgan from electrical safety equip- rant group Alinea and reservation mediate plans to redevelop it with lot more room for the Fulton Market ment maker Salisbury by Honeywell platform company Tock have oc- something larger. But that could District to grow on the other side of in December 2012 for $1.2 million, es—and a site across the street that it change, especially now that 27th the COVID-19 pandemic. according to Cook County property could redevelop down the road. It’s Ward Ald. Walter Burnett is allowing His New York-based real estate records. at was six months before a wager Mishan says he is making residential development in Fulton

rm Vista Property Group paid Google announced it would move with the comfort of long-term ten- PARTNERS GREENSTONE Market north of Lake Street. Burnett nearly $32 million in a pair of trans- its Chicago oce to Fulton Market, ants in one property and the poten- 401 and 400 N. Morgan St., lower left, run lifted his long-standing ban on that actions this month for properties which set o a transformation of tial to cash in later on the other. along the northern edge of the Fulton Market use early in the pandemic to try to at 400 and 401 N. Morgan St., one the gritty neighborhood into what is “We believe that in less than three District. stoke new projects. block north of Google’s Midwest now a trendy corporate destination years, these corridors—Morgan, Danny Spitz of Chicago-based headquarters in the trendy former and home to some of the city’s most Kinzie and Carroll (Avenue)—will Morgan Manufacturing will contin- brokerage Greenstone Partners rep- meatpacking corridor. expensive commercial property. see multiple additional projects ue to operate the event space and resented Vista Property Group in the In the larger of the two deals, Mis- Bushala said at the time that breaking ground, and existing proj- plans to open a new restaurant this Morgan Street deals. han con rms that Vista paid almost he planned to spend between $7 ects will stabilize and bring trac $25 million for the property an- million and $8 million turning the to the area,” Mishan says, citing new chored by event space Morgan Man- building into an event and oce buildings already underway like ufacturing covering a full city block space, eventually completing the developer Trammell Crow’s Fulton Royal Bank offers commercial loans bounded by Morgan, Kinzie and redeveloped Morgan Manufactur- Labs life sciences hub two blocks Sangamon streets and the Metra ing property in 2014. After lling away at 400 N. Aberdeen St. with attractive rates and terms. tracks running through the neigh- up the balance of the building with Among other projects proposed borhood. Separately, Vista paid $7 oce tenants, MAB capitalized on nearby, developer Sterling Bay plans million for a vacant 7,000-square- skyrocketing Fulton Market proper- to add oce buildings at 1000 W. foot building across the street on ty values in 2017, when it re nanced Carroll Ave. and 345 N. Morgan St. Contact Andrew Morua, Senior Vice President 17,000 square feet of land at 400 N. the property with an $18 million that were slated to be part of a mas- 2IƓFHŘ0RELOH Morgan. loan, property records show. sive Google expansion before the (PDLODPRUXD#UR\DOEDQNXV e purchases plant a high-pro- Across the street, MAB paid just pandemic set in. %LOLQJXDOŧ(QJOLVKDQG6SDQLVK le stake in Fulton Market for Vista under $2 million for 400 N. Morgan “ere’s just so much to look for- Putting community first since 1887. and complete a lucrative cash-out in December 2013. e vacant prop- ward to, and we have the luxury of for the seller on both properties, erty previously was the Pagoda Red being able to operate a fully leased Chicago restaurateur and real estate Asian furniture store and an oce building,” Mishan says. royal-bank.us entrepreneur Marc Bushala’s MAB for T-shirt company readless. Mishan declines to share lease Member FDIC Capital Management. Now Vista has paid a premium for terms at 401 N. Morgan but says /RFDWLRQVLQ&KLFDJR:HVWPRQWDQG1LOHV

AN ARCHITECTURAL MASTERPIECE CELEBRATED & REIMAGINED

Originally constructed in 1925, Tribune Tower serves as a beacon, stretching skyward at the threshold of the Magnificent Mile, reminding us of the extraordinary history of Chicago. Tribune Tower Residences, now reimagined and meticulously designed, offers 1 to 4+ bedroom luxury condominiums with 56 unique floor plans creating a seamless connection between yesterday and today.

VISIT OUR SALES GALLERY TO EXPERIENCE THE TRIBUNE TOWER RESIDENCES. BY APPOINTMENT ONLY. tribunetower.com 312.967.3700

All floor plans shown are for illustrative purposes only. Floor plans may not depict final design of units as constructed and may not be drawn to scale. All sketches, renderings, architectural models, materials, plans, specifications, terms, prices, conditions and statements, including estimated timeframes and dates, contained herein are proposed only and are not intended to constitute representations. Developer reserves the right to make modifications in its sole discretion and without prior notice. All photographs and renderings are merely intended as illustrations of the activities and concepts depicted therein as interpreted by the artists. Developer makes no representations regarding any view and/or exposure to light at any time including any existing or future construction by either owner or a third party. Square footage and ceiling heights are approximate and may be based on various measurement methodologies, subject to construction variances and tolerances, as well as redesign, and vary from unit to unit (and may vary from floor to floor). This brochure shall not constitute a valid offer in any jurisdiction where prior registration is required and not yet fulfilled. Where used, developer shall mean Tribune Tower West (Chicago) Owner, LLC and its affiliated entities and their respective managers, members, directors, shareholders, partners, agents, affiliates and employees. DL# 2556130 10 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS LETTER TO THE EDITOR Questions we should ask about ComEd’s grid investment n a recent article about ComEd’s grid in- EDITORIAL vestment plans, Crain’s reports ComEd was Igranted the customer rate decreases it re- quested the last three years in a row (“ComEd says it’s powering toward a record prot,” March 8). It also points out ComEd prots Time for Pritzker to deliver on ‘fair maps’ promise have fallen in some years and when they’ve in- creased, increases have generally been small. llinois lawmakers on March 17 began tive in the House and taking shape in the at’s all true. But the article doesn’t address the once-in-a-decade task of redraw- Senate have a few short months to draw a couple of the most important questions that ing the lines that make up congres- up a plan. “We are acutely aware of the many people are, and should be, asking. sional and state legislative districts. constitutional deadline of June 30,” Senate First, what is the condition of the power grid is year, however, the process is President Don Harmon tells Crain’s, but today, and what do we need to do to make it Iunlike recent remaps, for a variety of rea- he’s “condent we’ll get our work done,” more resilient? is question is on everyone’s sons—some that are outside local ocials’ including getting public input from all 102 minds in the aftermath of the catastrophic grid control, others that are squarely in their of Illinois’ counties. failures in California and Texas over the last wheelhouse. e ideal solution would be to pass and In the outside-our-control category is sign a bill to establish an independent, the COVID-sparked delay of the census nonpartisan public commission to draw data that mapmakers typically rely on, the maps. Short of that, lawmakers should and as Crain’s political reporter A.D. Quig at least commit that districts will be drawn Chief executive o cer KC Crain pointed out in her coverage of the map- without regard to where incumbents live, Group publisher/executive editor Jim Kirk making kicko, that means it’s still unclear as the BGA suggests would be one way Associate publisher Kate Van Etten whether Illinois will lose one or two seats to short-circuit the incumbents-rst ap- * * * in Congress, on top of the looming ques- proach that has distorted past maps. Editor Ann Dwyer tion of how lawmakers will balance the Similarly, Crain’s columnist and Change Creative director Thomas J. Linden drop in Illinois’ Black population against Illinois Executive Director Madeleine the rise in Latino population—not to men- Doubek argues that if legislators choose to Assistant managing editor Jan Parr tion how, or whether, the Democrats who draw maps without waiting for new census Assistant managing editor/ Joe Cahill columnist control the Statehouse, the Senate and the data, they should commit, by law, to revis- governor’s mansion will yet again wield iting and revising the maps once the new Assistant managing editor/digital Ann R. Weiler the remap as a weapon against their Re- census gures are distributed. With new Deputy digital editor Todd J. Behme publican counterparts to hold onto power. census data, the people deserve a chance Digital design editor Jason McGregor Senior art director Karen Freese Zane is last notion is the cynical reader’s ILLUSTRATION CRAIN’S to provide input again. cue to smirk. But there are a few more fac- As a candidate, Pritzker repeatedly and Copy chief Scott Williams tors to consider before pausing to roll one’s political mapmaking process in decades since the maps were last drawn in 2011. loudly declared that he understood how Deputy digital editor/ Sarah Zimmerman eyes: For one thing, the master manipula- past has allowed Illinois politicians to pick From 2012 to 2016, more than half the in- corrosive Illinois’ mapmaking dynamic audience and social media tor of Illinois’ political machinery, Michael their voters, not the other way around. Our cumbents in the General Assembly faced has been to the state’s politics as well as its Forum editor Cassandra West Madigan, is no longer in power. Second, governor has promised an end to that era. no general election contest at all. at’s the economy. He pledged to undo it. And now Political columnist Greg Hinz our governor, J.B. Pritzker, campaigned Just how badly gerrymandered are Il- result of maps twisted to maximize Dem- everyone reading this must put pressure Senior reporters Steve Daniels for oce on a promise to end the political linois’ maps? As Crain’s columnist and ocratic control of as many districts in the on his legislative counterparts to deliver Alby Gallun gerrymandering that has made so many Better Government Association President state as possible—as Greising terms it, “a a fair map to his desk—and then hold the John Pletz elected ocials in this state comfortable to David Greising points out, more than 95 Rube Goldberg perpetual re-election ma- governor to his oft-repeated promise that Reporters Danny Ecker the point of being utterly unaccountable to percent of incumbents seeking re-election chine.” he would approve no map unless it was fair Stephanie Goldberg anyone but their friends and donors. e were returned to oce in the elections held e redistricting committees now ac- to all Illinoisans. Wendell Hutson Ally Marotti YOUR VIEW A.D. Quig Dennis Rodkin Steven R. Strahler Contributing photographer John R. Boehm Ensuring post-pandemic growth is equitable * * * Director of digital strategy Frank Sennett ooking at the empty, board- service organizations, which focus Yet the business service organizations that nities. In this area, business service organi- Director of custom media Sarah Chow ed-up storefronts across on helping and training founders train and help entrepreneurs in underserved zations could be encouraged to collaborate * * * Chicago’s neighborhoods, and small-business owners across neighborhoods do not have systematic ac- with each other, as well as other education- L Production manager David Adair it is hard to believe the projec- the city’s neighborhoods. Investing cess to technological tools that they can al partners, to create programming around tions that the American economy in these programs, making them introduce to entrepreneurs. is is an area innovation and service development that Account executives Claudia Hippel will return to its pre-pandemic widely available and complement- where the technology entrepreneurship eco- builds on the entrepreneurs’ and neighbor- Christine Rozmanich size by the middle of this year, ing current oerings with targeted system of downtown Chicago, and the major hoods’ assets, while responding to trends. Bridget Sevcik as the Congressional Budget Of- seed-stage nancing for the most corporations that have long invested in tech- Finally, entrepreneurs need capital. e Laura Warren ce has projected. e pandemic promising ideas can help direct the nology assets, could have a signicant and training programs we studied across Chica- Courtney Rush has widened the equity gap in ed- nature of Chicago’s post-pandemic positive impact on equitable growth. go refer business owners to lenders that can Amy Skarnulis ucation, employment and venture Maija Renko is a growth. e city’s philanthropic By partnering with entrepreneurship help them build their credit and access loans. People on the Move manager Debora Stein capital, and the projected growth professor at De- community, socially responsible training programs run by business service However, what could really boost a neigh- Events/marketing coordinator Lauren Jackson back is unlikely to be equitable. Paul University’s corporations and city government organizations, they could help bridge the di- borhood entrepreneur’s success is a busi- Project manager Joanna Metzger e same Congressional Budget Driehaus College can invest in these programs for vide that can otherwise hold back the recov- ness development grant. A grant of $5,000 Marketing manager Jessica Dalka Oce report also predicts the of Business. diverse entrepreneurs to impact ery of underserved neighborhoods. was mentioned by many of our study’s busi- Digital designer Christine Balch number of employed Americans the direction of economic recovery Second, while the existing entrepreneur ness service organization representatives as will not return to its pre-pandemic levels and to make it more equitable. training programs deliver widely needed a number that could make a dierence for Crain Communications Inc. until 2024. Chicago’s underserved neigh- Many such entrepreneur training pro- nancial management and marketing con- many of the early-stage entrepreneurs they Keith E. Crain Mary Kay Crain borhoods and Mayor Lori Lightfoot’s Invest grams already exist, so what should be the tent, there is an additional need to help en- work with. e city’s business service orga- Chairman Vice chairman KC Crain Chris Crain South/West strategy cannot wait that long. nature of further investment in them? Our trepreneurs ensure the long-term compet- nizations could channel philanthropic and Chief executive o cer Senior executive vice president New business startup rates have shown recent research points out some needs. itiveness of their businesses. is may not government funding to business owners Lexie Crain Armstrong Robert Recchia a surprising upward trend in the pandem- First, the pandemic has shown the impact be the rst thing on an entrepreneur’s mind who need the funds to launch and grow. Secretary Chief nancial o cer ic, and once consumer demand in services of the digital divide on business success. when they look to start a business, but adopt- To be sure, neighborhood entrepreneurs Veebha Mehta Chief marketing o cer and retail rebounds, entrepreneurial activity Many small and young brick-and-mortar ing a longer-term mindset does not mean alone are not able to bring back the jobs and * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. can pick up even more. What entrepreneurs businesses have been able to pivot to online creating lofty goals and unrealistic visions opportunities lost to the pandemic. Howev- Founder Chairman need to successfully launch and grow their sales, but many have not. Post-pandemic, without regard to realities. er, without an investment in them, the recov- (1885-1973) (1911-1996) businesses is no mystery: knowledge, capital customers will continue to shop online, and Neighborhood entrepreneurs can be en- ery of Chicago risks further contributing to For subscription information and delivery concerns and networks. All of these are being delivered entrepreneurs will have to make their prod- couraged to use their available means as the inequity between neighborhoods that pros- please email [email protected] in dozens of programs by Chicago’s business ucts and services available accordingly. starting point for identifying new opportu- per and those that fall further behind. or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations).

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters Sound o : Send a column for the Opinion page to editor@ to Crain’s Chicago Business, 150 N. Michigan Ave., Chicago, IL 60601, or email us at [email protected]. Please chicagobusiness.com. Please include a phone number for veri cation include your full name, the city from which you’re writing and a phone number for fact-checking purposes. purposes, and limit submissions to 425 words or fewer. CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 11 LETTER TO THE EDITOR Questions we should ask about ComEd’s grid investment n a recent article about ComEd’s grid in- nine months. Second, how do we keep bills af- smart-grid investment we make to ensure it is out or the wind is blowing. e engineering EDITORIAL vestment plans, Crain’s reports ComEd was fordable in the face of needed investments in bene ts customers. and economic challenges are great, and it’s Igranted the customer rate decreases it re- clean and renewable energy, energy storage, Without those investments, our grid would important to understand that investments in quested the last three years in a row (“ComEd electric vehicle charging infrastructure and a have failed to deliver needed reliability during the system will be needed. e cost of doing says it’s powering toward a record pro t,” grid that supports it all? a brutal polar vortex in 2019 and the historic nothing, however, is greater. March 8). It also points out ComEd pro ts e grid is in good shape. ComEd has con- derecho last August that unleashed 110 mph We believe we can meet these challeng- Time for Pritzker to deliver on ‘fair maps’ promise have fallen in some years and when they’ve in- sistently delivered fewer and shorter outages, winds and spawned 15 tornadoes, a destruc- es, aordably. By investing in clean energy creased, increases have generally been small. resulting in best-ever customer satisfaction. tive storm that caused some neighbors in Iowa resources that provide the power customers tive in the House and taking shape in the at’s all true. But the article doesn’t address ComEd stands by the investments it has to lose power for three solid weeks. need at the times they need it, creating incen- Senate have a few short months to draw a couple of the most important questions that made the last 10 years—investments the Illi- To the second question: ere are costs that tives that support adoption of electric vehicles, up a plan. “We are acutely aware of the many people are, and should be, asking. nois Commerce Commission reviewed an- come with making the grid resilient to more and building on investments to strengthen the constitutional deadline of June 30,” Senate First, what is the condition of the power grid nually under three dierent governors. In this intense storms and able to charge eets of grid, we can keep energy reliable and resilient, President Don Harmon tells Crain’s, but today, and what do we need to do to make it and past articles, Crain’s has mischaracter- electric vehicles, integrate more renewable and reduce air pollution. he’s “con dent we’ll get our work done,” more resilient? is question is on everyone’s ized the ICC’s oversight as lax. However, the energy and maintain reliability for millions of including getting public input from all 102 minds in the aftermath of the catastrophic grid ICC spends eight months each year carefully families and businesses as we add many more JOE DOMINGUEZ of Illinois’ counties. failures in California and Texas over the last reviewing every penny of maintenance and energy sources that operate only when the sun CEO, COMED e ideal solution would be to pass and sign a bill to establish an independent, nonpartisan public commission to draw the maps. Short of that, lawmakers should at least commit that districts will be drawn Chief executive o cer KC Crain without regard to where incumbents live, Group publisher/executive editor Jim Kirk as the BGA suggests would be one way Associate publisher Kate Van Etten MY BENESCH to short-circuit the incumbents- rst ap- * * * proach that has distorted past maps. Editor Ann Dwyer Similarly, Crain’s columnist and Change Creative director Thomas J. Linden Illinois Executive Director Madeleine Doubek argues that if legislators choose to Assistant managing editor Jan Parr draw maps without waiting for new census Assistant managing editor/ Joe Cahill columnist data, they should commit, by law, to revis- “ Benesch was extremely responsive at iting and revising the maps once the new Assistant managing editor/digital Ann R. Weiler a critically important time as we were Deputy digital editor Todd J. Behme census gures are distributed. With new completing two platform investments. census data, the people deserve a chance Digital design editor Jason McGregor to provide input again. Senior art director Karen Freese Zane The fact that they have both transportation As a candidate, Pritzker repeatedly and Copy chief Scott Williams industry knowledge and a strong M&A loudly declared that he understood how Deputy digital editor/ Sarah Zimmerman practice really helps them understand the corrosive Illinois’ mapmaking dynamic audience and social media has been to the state’s politics as well as its Forum editor Cassandra West full set of issues and how they interconnect.” economy. He pledged to undo it. And now Political columnist Greg Hinz everyone reading this must put pressure Senior reporters Steve Daniels MARK FORNASIERO on his legislative counterparts to deliver Alby Gallun Managing Partner a fair map to his desk—and then hold the John Pletz Clarendon Capital, LLC governor to his oft-repeated promise that Reporters Danny Ecker he would approve no map unless it was fair Stephanie Goldberg MICHAEL RAUE to all Illinoisans. Wendell Hutson Partner Ally Marotti Clarendon Capital, LLC YOUR VIEW A.D. Quig Dennis Rodkin Steven R. Strahler Contributing photographer John R. Boehm Ensuring post-pandemic growth is equitable * * * Director of digital strategy Frank Sennett nities. In this area, business service organi- Director of custom media Sarah Chow zations could be encouraged to collaborate * * * with each other, as well as other education- Production manager David Adair al partners, to create programming around innovation and service development that Account executives Claudia Hippel builds on the entrepreneurs’ and neighbor- Christine Rozmanich hoods’ assets, while responding to trends. Bridget Sevcik Finally, entrepreneurs need capital. e Laura Warren training programs we studied across Chica- Courtney Rush go refer business owners to lenders that can Amy Skarnulis MY TEAM help them build their credit and access loans. People on the Move manager Debora Stein Featured team (left to right) Complex M&A transactions often require different law fi rms to handle However, what could really boost a neigh- Events/marketing coordinator Lauren Jackson PETER K. SHELTON different aspects of the deal—adding even more complexity as well borhood entrepreneur’s success is a busi- Project manager Joanna Metzger CHRISTOPHER D. HOPKINS as costs. But for private equity investor Clarendon Capital, Benesch’s ness development grant. A grant of $5,000 Marketing manager Jessica Dalka MARC S. BLUBAUGH was mentioned by many of our study’s busi- deep transactional expertise and nationally renowned Transportation Digital designer Christine Balch DARYLL V. MARSHALL ness service organization representatives as & Logistics Practice eliminate the need for multiple representation. a number that could make a dierence for Crain Communications Inc. RYAN J. WILLIAMS Clarendon also gains access to useful introductions and exposure to many of the early-stage entrepreneurs they Keith E. Crain Mary Kay Crain RYAN M. KRISBY potential opportunities through Benesch’s extensive transportation, work with. e city’s business service orga- Chairman Vice chairman JONATHAN R. TODD KC Crain Chris Crain logistics, private equity, and investment networks. It’s a winning nizations could channel philanthropic and Chief executive o cer Senior executive vice president JESSICA N. ANGNEY combination of legal and business capabilities that is helping Clarendon government funding to business owners Lexie Crain Armstrong Robert Recchia GEORGE STOWE and its portfolio companies grow and thrive. who need the funds to launch and grow. Secretary Chief nancial o cer Veebha Mehta Chief marketing o cer RICHARD A. PLEWACKI To be sure, neighborhood entrepreneurs Can we do the same for your business? Learn more about our alone are not able to bring back the jobs and * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. relationship with Clarendon Capital at beneschlaw.com/myteam. opportunities lost to the pandemic. Howev- Founder Chairman er, without an investment in them, the recov- (1885-1973) (1911-1996) ery of Chicago risks further contributing to For subscription information and delivery concerns inequity between neighborhoods that pros- please email [email protected] per and those that fall further behind. or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations). www.beneschlaw.com

Sound o : Send a column for the Opinion page to editor@ © 2020 Benesch Friedlander Coplan & Aronoff LLP chicagobusiness.com. Please include a phone number for veri cation purposes, and limit submissions to 425 words or fewer. 12 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS

THE HOTTEST10 JOBS We talked to recruiters, hiring companies and employers to identify the 10 hottest well-paying jobs in Illinois in 2021 BY DANIELLE BRAFF

THE PANDEMIC WREAKED HAVOC SOFTWARE DEVELOPER/JAVA DEVELOPER on jobs, leaving some employees work- Number of job openings: 10,100 | Median base salary: $90,800 ing from home, some furloughed and Overall, demand in the IT industry has remained steady, with some without jobs altogether. What were software developers in the most covetable position, according to once promising careers (we’re looking at ManPower Group, a staffing and recruitment company. This career you, small-business owners, health care jumped in demand in late 2020, as businesses began attempting to return to normal—and needed data analytics and software workers and those in the arts) are now builders to give them a competitive advantage, according to the those with diminishing returns. Dice Q3 Tech Job Report. There’s been a 25 percent increase in Prevailing jobs pre-pandemic, such as volume in January 2021 compared with the same time last year. real estate property managers, retail bank- ers and office managers, are no longer in demand, as companies went remote and consumers stayed home, says Michelle Reisdorf, Chicago regional vice president at Robert Half, a staffing and recruiting agency. DATA SCIENTIST Illinois had its worst year for jobs on Number of job openings: 6,000 | record, according to the Illinois Policy Median base salary: $114,000 Institute. The state lost about 7 percent— Data collection is a growing project or 420,000 jobs—from December 2019 to for IT, explains Reisdorf at Robert December 2020. Hardest hit were hospi- Half. Organizations need profes- tality and leisure jobs, which were down sionals who have the expertise to 32 percent. With the exception of con- collect, report and analyze large amounts of company data, she struction employment, every single sector says. From 2019-2029, data science in the state’s economy declined, according positions are expected to grow 15 to the institute. percent (the average rate of growth Still, it’s not all bad news. for all occupations is 4 percent), from 32,700 positions to 37,700 Fifty-one percent of companies plan to positions, according to the Bureau hire in 2021, according to Robert Half. of Labor Statistics. “For many companies, how they work Data science experts will be expect- may be different, but the volume of work ed to analyze and predict how 2020 data will impact 2021 projects and continues, often with an even faster pace beyond. For example, they will look because the environment is shifting con- at whether new movies should go stantly,” Reisdorf says. to theaters or simply be screened. An overall trend has been the spike in As data ecosystems increase in their complexity, data scientists contract hiring. In an uncertain economy, will be needed to help companies firms often rely more on contract profes- expand their intelligent automa- sionals. tion implementation, according to “They may feel cautious about hiring, Robert Half. but at the same time, they don’t want to be understaffed and have work that must get done.” There are also jobs that are in demand now that weren’t before the pandemic, so companies are struggling to fill those posi- CLOUD ENGINEER SOFTWARE ENGINEER ACCOUNTANT tions with talent. These include relatively Number of job openings: 5,500 | Median base salary: $105,600 Number of job openings: 40,600 | Number of job openings: 8,800 | well-paying jobs, such as loan processing, Median base salary: $110,245 Median base salary: $67,000 grant administration and mortgage indus- Every business is moving to the cloud, and there are many compa- Demand is high for software en- With all the financial challenges of 2020, nies supporting that industry (beyond the big cloud providers, who try roles, Reisdorf says. gineers and software developers more people are looking for someone Crain’s spoke with recruiters, hiring are Amazon, Google and Microsoft), says Jeff Hyman, CEO of Re- because most companies need good to do their books. “Companies companies and employers to identify the cruit Rockstars and professor at Northwestern University’s Kellogg applications and websites to be built across all sectors, ranging from corpo- School of Management. Since there are so many remote workers, 10 hottest well-paying (over $50,000) jobs and managed. There are also an rations to small businesses, need the the security of those employees who are bringing their work home increasing number of products that various services provided by a qualified in Illinois in 2021. Note that the number of is based on the cloud being effective. The cloud is not new, how- use software, Reisdorf says. Ultimate- financial professional,” Reisdorf says. Ac- job openings is a national number, based ever, so Hyman expects the growth rate in this industry to decline ly, the high demand for custom-built countants manage bookkeeping efforts, on Glassdoor’s Best Jobs in America 2021 within the next few years. But Reisdorf thinks it’ll last for a while. websites and mobile apps will con- prepare financial statements and analyze study. “Firms continue to invest in cybersecurity and cloud functions to tinue to drive the need for software balance sheets and income statements safeguard information and streamline processes,” she says. engineers, she says. to keep businesses operating optimally. CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 13

HR SPECIALIST Number of job openings: Not available | Median base salary: $50,300 As more time-strapped managers realize that wooing great job candidates can take significant time and effort, many organizations are adding human resources professionals to help with the recruiting process, Reisdorf says. Human resource specialists also support onboarding and talent management programs. They may also take responsibility for employee engagement, creating wellness initiatives and developing training and team-building programs. HOTTESTJOBS Because of the pandemic, many companies have to completely change how their human capital operates, Hyman points out: Are we going to sell the office and go virtual? How do we transition everyone smoothly from remote work and back? HR reps are in strong demand because there have been so many changes over the past year, ranging from testing and safety protocol to everything that goes with remote work. But that’s not all they do. “They make rec- ommendations for wireless network optimizations, additions and upgrades to meet business requirements, and they also document network infrastructure and design,” she says. According to the Bureau of Labor Statistics, this field is projected to grow 7 percent through 2029.

MOBILE ENGINEER Number of job openings: 4,600 | Median base salary: $94,300 These professionals help research, design and implement wireless networks, Reisdorf says. The demand for their services increased after the pandemic forced many to work remotely. They make recommenda- tions for wireless network optimiza- tion, additions and upgrades to meet business requirements, and they also document network infrastructure and design. Apple just rolled out its 5G phones, so many of the networks are racing to put up 5G towers, Hyman says. “That has a two-to-three-year bloom cycle,” he says. “Everyone will need a new phone, so there are tower installation folks, the chipmakers and the marketing and advertising people who are driving the change.” Hyman expects this to be the biggest cycle since the smartphone was introduced.

TELEHEALTH Number of job openings: Varies by sector | Median base salary: Varies by sector This industry is booming, thanks to the pandemic, and may stick around well after. “If you have a minor issue or don’t have to go to the office, this is a safer option, and the technology is improving,” Hyman says. It’s also less expensive for the health care system. According to a 2019 survey by First Stop Health, 91 percent of employers expected to offer telemedicine by 2020. There are tele- health jobs for everyone from physicians to pharmacists—and there are also telehealth positions for Java developers, user inter- face designers, quality assurance engineers and iOS developers.

SOFTWARE ENGINEER ACCOUNTANT INFORMATION/NETWORK SECURITY ENGINEER SALES MANAGER Number of job openings: 40,600 | Number of job openings: 8,800 | Number of job openings: 5,600 | Median base salary: $110,000 Number of job openings: 16,500 | Median base salary: $110,245 Median base salary: $67,000 Median base salary: $72,600 This field “is booming because of hacks, fraud, Bitcoin and phish- Demand is high for software en- With all the financial challenges of 2020, ing,” Hyman says. These engineers orchestrate a company’s security A new study by Career Cloud, an gineers and software developers more people are looking for someone measures, including overseeing the creation of IT security infrastruc- online resource to help with every- because most companies need good to do their books. “Companies ture, implementing policies and best practices, managing security thing career-related, found that retail applications and websites to be built across all sectors, ranging from corpo- audits and vulnerability and threat assessments, and preventing and sales are the No. 1 most common and and managed. There are also an rations to small businesses, need the detecting intrusion, Reisdorf says. They’re also tasked with creating competitive job in America, account- increasing number of products that various services provided by a qualified and executing strategies to improve the reliability and security of IT ing for about 1,400 jobs per 100,000 use software, Reisdorf says. Ultimate- financial professional,” Reisdorf says. Ac- projects, such as software development. Organizations need network people. And this arena should ly, the high demand for custom-built countants manage bookkeeping efforts, security professionals to keep sensitive data and systems safe from become even more competitive in websites and mobile apps will con- prepare financial statements and analyze malicious hackers, to defend an ever-expanding security perimeter and the upcoming months, as the country tinue to drive the need for software balance sheets and income statements to comply with stringent regulatory mandates related to data security climbs out of its economic crisis and engineers, she says. to keep businesses operating optimally. and privacy, Reisdorf says. businesses begin to reopen.

CRAIN’S ILLUSTRATION/GETTY IMAGES 14 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS CHA contract clears way for $51 million multiunit housing deal New York investor Jonathan Rose plans to take over and renovate the decades-old Barbara Jean Wright Court apartment complex in University Village erty in 1999. Jonathan Rose has BY ALBY GALLUN agreed to take over the complex A $51 million plan to turn but still needs to line up financ- around a run-down low-income ing to complete the transaction, housing complex in University which should happen by this fall, Village took a big step forward says Jonathan Rose partner Na- last week, when the Chicago than Taft. With a CHA contract Housing Authority board ap- in place, the landlord can now proved a contract to subsidize as focus on the financing. many as 160 of the property’s 272 “It’s a huge vote of confidence apartments. in this, and an acknowledgment The CHA reached the agree- that the property needs atten-

ment with Jonathan Rose Cos., a tion,” Taft says. GROUP COSTAR New York affordable-housing in- Barbara Jean Wright Court is a 27-building complex at 1354 S. Morgan St. vestor that plans to take over and MAJOR MAKEOVER renovate Barbara Jean Wright The change in ownership in a statement from Jonathan Rose. Lakeview, and 2101 S. Michigan, a sive renovation that will improve Court, a 27-building complex at would bring stability to the prop- At a meeting March 16, the 250-unit tower near McCormick the look of BJ Wright and the 1354 S. Morgan St. Jonathan Rose erty and preserve affordable CHA Board of Commissioners ap- Place. It also has a deal to buy Ar- quality of life for all of its resi- plans a major makeover that will housing, a constant challenge proved a 15-year contract to pro- cher Courts, a 146-unit building in dents,” Ald. Byron Sigcho-Lopez, include new roofs and HVAC sys- for a city with a perennial gap vide housing vouchers that would Chinatown. 25th, who represents the neigh- between the hous- subsidize rent for as many as 160 e rm would pay $1 to take borhood, says in the Jonathan BUILT IN 1972, BARBARA JEAN WRIGHT ing that’s available tenants at the property. e U.S. over Barbara Jean Wright Court, pay Rose statement. and what residents Department of Housing & Urban o a $16 million HUD loan on the e vote also pleased Antho- COURTS HAS DETERIORATED BADLY can afford. Development also provides Sec- property and spend an additional ny Fusco Jr., president of Chicago UNDER ITS CURRENT OWNER. “We’ve lived with tion 8 subsidies to tenants at the $35 million, or about $130,000 per Community Development. e bad conditions for a complex, an agreement Jonathan unit, on the renovation, Taft says. property needs to be recapital- tems and new kitchens and bath- long time and the uncertainty has Rose aims to renew, Taft says. Jonathan Rose would nance the ized, but at 73 years old, he says rooms in the apartments. been di cult, so yes, we are re- Jonathan Rose, which entered project through a combination of he’s not the one to do it. Built in 1972, Barbara Jean lieved to know that the buildings the Chicago market in 2012, owns Low Income Housing Tax Credits “I’ve been trying to nd a suit- Wright Courts has deteriorated will be improved and that we’ll be or is under contract to own eight and debt, he says. able purchaser because it needs a badly under its current owner, able to stay in them,” Jessie John- buildings totaling 1,500 units here. “Rose’s plan both ensures af- capital infusion,” Fusco says. “I’m Chicago Community Develop- son, president of the Barbara Jean Its Chicago properties include Bel- fordability for existing tenants in the process of trying to get out ment, which acquired the prop- Wright Court Tenant Council, says mont Tower, a 277-unit building in and provides the kind of exten- of the business.”

REAL ESTATE AUCTION REAL ESTATE AUCTION REAL ESTATE AUCTION•MAY 13, 2021 MAY 6, 2021 MAY 11, 2021 UNIQUE REAL ESTATE OPPORTUNITY AN ENTIRE 225-CAR DOWNTOWN CHICAGO, ILLINOIS CHICAGO PARKING GARAGE THE PARK TOWER 16 Old Town neighborhood condos spread across numerous different properties in newer modern buildings 800 N. MICHIGAN AVE., UNIT 2303 150 E. HURON in excellent condition to be sold in bulk. CHICAGO, IL (NEAR MICHIGAN AVE. & HURON ST.) PROJECTED BULK VALUE 17 YEARS FROM NOW OVER $10,000,000 Adjacent to the Magnificent Mile Shopping PROJECTED VALUE OF COMPARABLE UNITS TODAY Currently vacant, this 2,000 sq. ft., 2 bedroom, District and Northwestern Memorial Hospital APPROXIMATELY $6,000,000 • SUGGESTED OPENING BID $1,000,000 2 bath unit has stunning views of Michigan Ave., You are essentially purchasing 16 condos Lake Michigan, and great sunsets. The kitchen has The recently operating public parking garage is now closed and is part of a 3-unit commercial that have market values today of up to Gaggenau and Miele appliances and Poggenpohl BROKER condo association where the other two units are CO-OP $450,000 each for approximately $65,000 cabinetry. A spacious main bedroom with a INVITED each at the suggested opening bid. This is a a hotel and office building. Ideal for continuing walk-in closet. The full amenity doorman building great inflation hedge that should accomplish as a parking garage, vehicle storage, museum, offers the world-class amenities of the Park Hyatt the goal of asset preservation while giving or other creative reuse. 5 floors of indoor parking. Hotel, including Nomi Spa & Restaurant, the owner a strong opportunity for oversized Wine Bar/Terrace. Previously Valued Over $12,000,000 returns. A clever diversification for your portfolio. Think of this as you might an annuity or a zero coupon bond, and discuss with Previously Valued Well Over: $1,100,000 Suggested Opening Bid $3,850,000 your accountant or financial planner the estate planning and Suggested Opening Bid: $750,000 On-site inspections Noon to 2 pm, April 13, 21, 27, wealth transfer implications that could benefit a purchaser. Viewings by appointment May 5 and by appointment Approximately 17 years remaining on a government guaranteed COURT master lease that eliminates all property taxes, all assessments BROKER DIRECTS are paid, and units are well maintained and updated thru the CO-OP SALE INVITED course of the lease. The ownership of these 16 units derives NO distributable income above and beyond expenses until the BROKER PARTICIPATION FOR INFORMATION CONTACT INVITED leases on each unit expires. Rick Levin & Associates, Inc. | since  If you have a long term strategy, are bullish on Chicago’s future, are a family o˜ce, a college endowment, or a savvy investor who 312.440.2000 | www.ricklevin.com knows a tremendous opportunity when they see it, please contact us for more details.

P014_CCB_20210322.indd 14 3/19/21 2:53 PM CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 15

AUTOMATED SOLUTIONS: More factories turn to robotic labor to speed production and reduce human error. PAGE 16 PANDEMIC SURPRISE: Some areas of manufacturing saw a rebound despite the global lockdown. PAGE 17 EFFICIENCIES: Digitizing, while not the same as MANUFACTURING automating, is another way to remake manufacturing. PAGE 18

Bison Gear & Engineering

FACTORIES FORWARD ZAC OSGOOD ZAC

MORE FORUM ONLINE As the ‘engine of the economy’ heats up again, tech advances are accelerating See Crain’s in-depth stories, interactives and guest columns on Manufacturing and ahead of a lagging labor force BY H. LEE MURPHY these previous topics: THE PANDEMIC LOCKDOWN last spring is fall. en came a surge that allowed the year around the clock e ortlessly. “We are looking now looking like the shortest manufacturing to end respectably, with revenues down a for still more places where we can automate recession in memory. Many factories around mere 10 percent from the 2019 total of nearly to boost our capacity. If our growth continues, Chicago, in fact, are struggling to hire enough $100 million. we need to look at ways to combine our hourly workers—even amid elevated unemploy- In late January, Bison, a maker of motors workers with machines,” he says. ment levels—as orders pour in again and that power everything from railway gates to at goal has become easier to achieve as business rebounds to pre-COVID-19 levels restaurant beverage dispensers, brought back robots themselves have been downsized, and beyond. its third shift amid strong order activity. Now Burch adds. “Ten years ago, most robots were  The Future of  COVID-19 But as workforces continue to shrink, com- CEO John Burch is feeling rejuvenated. “Our so big that they required their own fenced- Capitalism  Racial Gaps panies are investing in automated equipment, growth is running up 10 percent and better in work areas. Now they have gotten small  Lake Michigan  Economic as modern production plants evolve beyond over a year ago at this point. It looks like our enough that they can function on a produc-  Work-Life Development their smoky and dirty origins to the clean, sales this year will go beyond 2019,” he said a tion line side by side with human operators,”  Freight  Taxes quiet hum of the latest hands-free machines. month later. “ e current trend appears to be Burch says.  Regional  Jobs & Wages e swiftness of the recovery caught nearly sustainable for a while.” e U.S. unemployment rate peaked at Planning  Cannabis everybody by surprise. A year ago, Bison Gear And yet Burch can’t  nd skilled workers. nearly 15 percent in April 2020 and is still at & Engineering in St. Charles cut back from He has installed a robot-like machine that 6.2 percent, well above the historic lows reg-  Health Care  Water three shifts to two at the 115,000-square-foot punches a hole in the middle of raw steel bars istered pre-pandemic. But local manufactur-  Education  Gun Violence plant where it employs 300 people. Orders in as they are machined into gears. e cost was ing executives like Burch observe a troubling  Police Reform  Housing the spring and early summer nose-dived 50 more than $100,000 for the robot, but it re-  Transportation  Pensions percent and more before ticking back up by places the labor of two people—and it runs See FACTORIES on Page 20 ChicagoBusiness.com/CrainsForum

SPONSORS

P015-P021_CCB_20210322.indd 15 3/19/21 2:23 PM 16 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS

Automation takes center stage on factory floor Rebound in manufacturing turned out to be a pandemic surprise BY H. LEE MURPHY From meatpacking plants When the U.S. economy went into the COVID-19-induced lock- to pharmaceutical packaging down a year ago and investors ed stocks, the commonly held assump- lines, robots are changing tion was that old-line industries, primarily in manufacturing, were the nature of work while particularly vulnerable. Health speeding up production care would do ne, maybe even BY H. LEE MURPHY ourish, and people eating Nearly a year ago, as the COVID-19 and drinking pandemic deepened and grocery at home would shelves began to go empty, some still need their of the most dire stories came from consumer sta- big meatpacking plants around the ples, the thinking Midwest. Workers wielding knives Lawrence De Maria went. Stock on animal carcasses were contract- pickers looked to ing the virus from fellow employees reposition their portfolios accord- toiling a few feet away. e process ingly. of cutting meat by hand suddenly It turned out that many of the seemed dangerous. safest assumptions were upend- John Bean Technologies had an ed in short order as the feared automated solution. e Chica- recession came and went in an go-based maker of food processing eyeblink and consumers who could equipment stepped up promotion of not travel redirected their unspent its DSI X-ray guided portioning sys- entertainment dollars to durable tem. e machine replaces humans goods like cars and leisure equip- on a processing line by employing ment, surprising manufacturers of X-rays to study, say, pork ribs enter- farm and construction equipment, ing the line to identify the outlines who saw a potent demand for their of each rib, then direct an adjacent products. robot to use ultra-high-pressure jets of water (yes, mere water instead of saws) to cut precisely around the

ribs, then send them on to a robot- BOEHM R. JOHN ic harvester that studies the weight Pat Phillips is president and CEO of Haumiller Engineering in South Elgin. and size of the product with auto- mated cameras (that can also detect services with Naperville-based ac- At consultancy Ashling Partners bone fragments and even glass con- counting rm Sikich, observes that in Chicago, much of the focus is taminants) before packaging. rising wages in China and elsewhere on so-called intelligent automation e DSI is the size of a car and in Asia as well as bottlenecked ship- that involves software able to pro- can cost a million dollars, but for a ping lanes up and down the West gram robots and a lot more. e coronavirus-infected factory, it rep- Coast and higher taris have refo- rm has devised systems that auto- resents a crucial technology for the cused attention on making Midwest mate the ordering of raw materials future. JBT, whose stock has nearly manufacturing competitive. To be- prior to the start of production, then tripled o its low last year, also has come fully competitive, he believes, later on automate bills of lading and developed poultry processing ma- automation is expected to take cen- invoices, all the while analyzing the chines that can debone chickens ter stage. performance of every piece of pro- and turkeys without human inter- “ e cost of automation is con- duction. vention. Elsewhere, the company tinuously coming down,” Murphy e latest software is amazingly has developed automated industri- says. “Many factory owners once intuitive: For gaining exibility in al guide vehicles that move pallets thought it was extremely expensive sourcing, for instance, computers

and products around a refrigerated and not available to them. ere is OSGOOD ZAC can study the pricing and terms factory oor, capable of lifting heavy more and more opportunity as you and even home-country politics in- loads 30 feet into the air for storage. see machinery like robotic welders miller Engineering in South Elgin was the owner of Sharpie pens a few volving multiple suppliers. For the No human driver required behind being introduced that can replace with a plea to make the production years ago when it needed faster out- robotic arm on the factory oor, it the wheel. workers doing dangerous and re- of its diabetes drug Trulicity more put. Haumiller designed a machine can anticipate when a breakdown is “ e interest from customers petitive tasks.” ecient. e drug itself was being that took the existing production coming and head it o with neces- during a period like the pandem- ose same factory owners, how- packaged into vials that had to be runs via a German-made machine sary maintenance. ic in products like these increased ever, keep a close eye on their return wedded to a delivery mechanism of 120 pens a minute to 450 a min- “ e assembly line itself has be- on investment. Most equip- that looked like an EpiPen requiring ute—exceeding 500,000 a day—at come pretty automated at many AUTOMATION IS NOT JUST ALL ment, Murphy conrms, must components and subassemblies. a plant in Tennessee. e Ger- companies,” says Donald Swee- pay for itself—typically in the Haumiller designed cam-driven man-made machine cost $500,000, ney, managing director of Ashling. ABOUT ROBOTS. replacement of wage-earn- mechanical machines with com- while the Haumiller rival was more “Now the next step for automation ing employees—within two puter controls requiring virtually than $2 million. But Newell Rub- is in the supply chain—gathering signicantly,” says Paul Sternlieb, to four years. But there is a further no operator intervention that dou- bermaid upgraded to the faster ma- massive amounts of data and en- president of JBT’s food protein tech- worry beyond just the dollars and bled the production line output to chines with the expectation the pay- gaging in predictive analytics. We nology division, noting that the DSI cents. 185 units a minute. Two machines back would come within two years. have intelligence now that tells us replaces as many as a dozen peo- “ ere is always the concern priced at upward of $5 million each “Our products aren’t usually ro- where every item in a supply chain ple per shift. He adds, “ ese are that the product you are making were delivered to Ireland for Euro- botic, where the limit is about 60 is. Parts can be automatically or- machines that can actually cut and with automated machinery will be pean distribution and several more, parts per minute in most circum- dered for exactly when they will be process much more precisely than changed and become dierent in a even more expensive, have been stances,” says Pat Phillips, president needed. Software programs are now Working to advance racial equity and economic mobility a human and just as fast. Even pre- few years’ time. at could render delivered to plants in suburban and CEO of Haumiller, which is able to organize by computer the COVID, the labor supply had been your automated equipment obso- Bualo Grove and North Carolina. employee-owned. “We produce the whole cycle of sales and marketing a big issue with food processors for lete,” Murphy says. If the investment sounds steep, it sort of automation that allows the and customer service and nancial for the next generation in the Great Lakes region. years. e pandemic only accelerat- Automation is not just all about should be noted that Trulicity goes assembly of piece parts at extremely planning. Companies have already ed that concern.” robots. for roughly $800 a dose. high volume.” moved away from manual labor. +PZDF'EOPSH Jerry Murphy, a consultant in A few years ago, the pharmaceu- Atlanta-based Newell Rubber- Automation isn’t coming just on Now the goal is moving away from manufacturing and distribution tical giant Eli Lilly came to Hau- maid, today called Newell Brands, the factory oor. any kind of manual data entry.”

JIM KIRK PUBLISHER • ANN DWYER EDITOR • CASSANDRA WEST FORUM EDITOR • THOMAS J. LINDEN CREATIVE DIRECTOR • JASON McGREGOR DIGITAL DESIGN DIRECTOR • KAREN FREESE ZANE SENIOR ART DIRECTOR • SCOTT WILLIAMS COPY CHIEF

P015-P021_CCB_20210322.indd 16 3/19/21 2:23 PM CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 17

Automation takes center stage on factory floor Rebound in manufacturing turned out to be a pandemic surprise BY H. LEE MURPHY One of the keenest observers with earnings down and its backlog eet acquired back then was getting tionally weak in most of 2020. It of this unfolding trend has been of orders down. old and expensive to maintain. looks like recent production can’t When the U.S. economy went Lawrence De Maria, an analyst Farmers were thinking about keep up with demand, in fact, as into the COVID-19-induced lock- at William Blair in Chicago who And then in March the pandemic replacing where they could. It helps there have been supply constraints down a year ago and investors ed oversees global industrial infra- hit. that the latest tractors and other of semiconductor chips and other stocks, the commonly held assump- structure, particularly agriculture, We were coming to the holistic equipment have been modernized components. Steel has gotten ex- tion was that old-line industries, mining, construction, industrial conclusion that COVID would shut with technology that allows farmers pensive across markets, and freight primarily in manufacturing, were technology and capital goods. down the global economy and to reduce inputs, like fertilizer, while costs have also increased. But that particularly vulnerable. Health De Maria follows most major that things were going to get worse increasing their yields. Deere raised hasn’t reduced demand for many care would do Midwest manufacturers, includ- before they got better. I put out a re- prices on large equipment a few manufactured products yet. Pricing ne, maybe even ing Caterpillar (up 25 percent port later in March that reduced my months ago by 8 percent, which is will be up this year, yet not so much ourish, and in 2020), Deere (up 54 percent) estimates on the companies I cover about as big a price increase as I’ve that it will be an impediment to people eating and Elgin-based Middleby (up across the board. Supply chains seen. e company now has lead buyers in need of new equipment. and drinking 20 percent despite the fact that its were strained, and production times stretching to December. Navistar stock, of course, has at home would customers are mostly restaurants). was halted in some places. en it also beneted because it is being still need their e following excerpts from a re- became clear that many plants were The recovery for some manufac- acquired by Traton (a subsidiary of consumer sta- cent conversation have been edited going to be able to stay open and turers, including Caterpillar, has Volkswagen). ples, the thinking for clarity: were managing their downside with been more uneven. Restaurants have been under Lawrence De Maria went. Stock reduced production and, in some Caterpillar has a big exposure to oil pressure. How is Middleby, a pickers looked to CRAIN’S: What was your thinking cases, government help. In the and gas, which still hasn’t bounced maker of restaurant equipment, reposition their portfolios accord- about the manufacturing space second quarter, we saw sales down back. Energy prices have been doing? ingly. early on in 2020, before the pan- hugely, but it then seemed that that weak, and there has been a secular It turned out that many of the demic hit? was the bottom of the cycle, and move away from hydrocarbons. Like most industries, commercial safest assumptions were upend- DE MARIA: Some industrial mar- we saw signs of sequential monthly at has weighed on Caterpil- food service bottomed in the spring, ed in short order as the feared kets could have been doing better. improvements. lar. However, the company will and has been improving sequential- recession came and went in an Agricultural equipment was wait- benet as there is a pickup in home ly ever since. Some segments such eyeblink and consumers who could ing for a lifto , which wasn’t there A good call, obviously. Deere end- construction and remodeling, and as quick-service restaurants, gro- not travel redirected their unspent in part because commodity farm ed the year above $270. It helped mining is recovering. An infrastruc- cery, convenience stores and pizza entertainment dollars to durable prices were not at a good level. that futures prices for corn and ture bill would be a big bonus. have done well. While that industry goods like cars and leisure equip- Other markets were cycling down. soybeans rallied during the year. is the most important for Middleby, ment, surprising manufacturers of Truck production was expected In ag, I look at farmer sentiment. Navistar, which is being acquired, it has diversied to food processing farm and construction equipment, to fall o in 2020. And at the end By June, farmers were getting more saw its stock up by more than 50 and high-end residential equip- who saw a potent demand for their of January a year ago, Caterpillar optimistic. e last peak in the ag percent last year. ment, which has fared much better products. reported fourth-quarter results market was 2013, and much of the Commercial vehicles were excep- because of remodeling activity. JOHN R. BOEHM R. JOHN Pat Phillips is president and CEO of Haumiller Engineering in South Elgin.

At consultancy Ashling Partners in Chicago, much of the focus is on so-called intelligent automation that involves software able to pro- gram robots and a lot more. e rm has devised systems that auto- mate the ordering of raw materials prior to the start of production, then later on automate bills of lading and invoices, all the while analyzing the performance of every piece of pro- duction. e latest software is amazingly intuitive: For gaining exibility in sourcing, for instance, computers can study the pricing and terms and even home-country politics in- volving multiple suppliers. For the robotic arm on the factory oor, it can anticipate when a breakdown is coming and head it o with neces- sary maintenance. “e assembly line itself has be- come pretty automated at many companies,” says Donald Swee- ney, managing director of Ashling. “Now the next step for automation is in the supply chain—gathering massive amounts of data and en- gaging in predictive analytics. We have intelligence now that tells us where every item in a supply chain is. Parts can be automatically or- dered for exactly when they will be needed. Software programs are now Working to advance racial equity and economic mobility able to organize by computer the whole cycle of sales and marketing and customer service and nancial for the next generation in the Great Lakes region. planning. Companies have already moved away from manual labor. +PZDF'EOPSH Now the goal is moving away from any kind of manual data entry.”

JIM KIRK PUBLISHER • ANN DWYER EDITOR • CASSANDRA WEST FORUM EDITOR • THOMAS J. LINDEN CREATIVE DIRECTOR • JASON McGREGOR DIGITAL DESIGN DIRECTOR • KAREN FREESE ZANE SENIOR ART DIRECTOR • SCOTT WILLIAMS COPY CHIEF

P015-P021_CCB_20210322.indd 17 3/19/21 2:23 PM 18 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS

SOFTWARE AND SENSORS Digitizing will lead to more jobs, less waste

xD’s mission is to help the past to anticipate a future U.S. manufacturers go problem. Data scientists or soft- Mdigital. ware engineers develop algo- Digitizing a factory is not the rithms based on how a machine same thing as automating a performs when it’s healthy. factory. When the machine begins to “get It rarely leads to job losses. sick”—meaning it performs out- It’s akin to an auction house side of the parameters set by the like Sotheby’s launching a algorithm—the software triggers website and allowing pre-quali- an alarm. ed buyers to place bids online. Chandra Brown It’s like going to the doctor Sotheby’s has to hire people to is CEO of Chica- and learning your cholesterol is build and manage the website, go-based MxD, way too high, thereby preventing and it has to pay for software to the nation’s digital a debilitating heart attack that maintain it. manufacturing puts you in the hospital. Such ese are new jobs but with institute, and warnings can lead companies to one catch. Most of them don’t former deputy as- order replacement parts ahead of require any expertise in art or art sistant secretary of a failure or perform a tuneup at history. manufacturing at an ideal time, reducing machine Inside a factory, going digital the U.S. Commerce downtime. means embedding production Department. Another application is to im- lines with software and many dif- prove the visibility and reliability ferent kinds of sensors, and then connect- of your supply chain. Tiny radio frequency ing those sensors to the internet so they can chips, called smart tags, can be embedded send and receive data. in parts or nished products, enabling com- is costs money, but the process is panies to locate items with a few touches on straightforward. e greater challenge is a keypad. guring out what to do with the enormous Another way to go digital is to use aug- amount of data now ying o the machines. mented reality. MxD member Light Guide is requires factories to hire cyberse- Systems installs a combination of projectors curity experts to secure the data and data and sensors at workbenches—a system that scientists to analyze it, or to pay consultants can guide workers to the next step in an to do all of that for them. Just like at Sothe- assembly using instructions projected on by’s, there’s a catch. ese jobs often require the work surface. e sensors can set o an of the instructions are delivered without In factories of the near future, these sensors data and computing power to do quickly. a college degree or advanced training; the alert if the worker has picked up a wrong words—so you can employ a more diverse and companion algorithms will not only It’s a job a human could never do. required skills are very dierent from those part or not properly installed it. workforce. predict a problem. ey’ll make a decision Instead, the factory has to hire workers of a machinist. Such augmented-reality systems are often Still, human error remains a leading to adjust the machine’s operations, without with digital skills we don’t normally as- Here are some ways factories are digitiz- used for training. ey get new workers cause of machine downtime in factories. In human intervention, to prevent one. In that sociate with manufacturing: data scien- ing—again, all ways that create jobs. onto the factory oor faster and working manufacturing, 23 percent of unplanned way, every part can be made better than the tists, cybersecurity experts and software One of the most common digital up- with fewer mistakes. ey also allow for downtime is due to user error, compared last. engineers. grades is predictive maintenance, or using easy instruction in any language—most with as little as 9 percent in other industries. is requires an enormous amount of is factory of the future is a more e-

TACKLE THE TALENT SHORTAGE Workforce investment is essential for maintaining industry momentum

ven as hundreds of thou- pandemic, and studies predict 42 logistics roles, and employers will need to sands of Chicagoans are percent of the jobs lost during the meet these expectations to secure talent in Elooking for work nearly pandemic may never return. At a labor market that is continuing to recover one year after the onset of the the same time, such a bifurcated from the COVID-19 pandemic. virus, businesses across count- economic recovery has allowed According to an annual salary survey re- less industries in the region are some industries to not only leased by Randstad US, some businesses in in desperate need of talent. This weather the nancial storm but industries hiring for these in-demand jobs talent shortage, which has been actually thrive in the new working will need to increase salaries by up to 3.5 driven by sectors experiencing environment. percent in order to compete for key hires, rapid growth amid the pandemic, In fact, despite operating in one even as the pandemic and job losses persist. has underscored the critical need Karen Fichuk of the most scally challenging In other words, employees are holding busi- for business leaders to invest in is the CEO of environments our economy has nesses to higher standards—even during strong re-skilling initiatives and Randstad North ever experienced, several indus- the pandemic—and aligning with the rest of competitive compensation pack- America and tries are experiencing a surge in the industry will no longer be enough to set ages to redeploy talent where it is an executive demand for workers as a result of competitive companies apart. needed most. board member of the growing reliance on technolo- is trend is especially true for job roles 3.5 percent to as much as $45.06 an hour. $163,576 and $164,157, respectively. It is now widely recognized that Randstad N.V. gy and a shift in consumer behav- related to manufacturing and logistics, as Additionally, as the nation increasingly Yet while compensation increases are our nation is experiencing a tale ior toward e-commerce during U.S. factory activity recently hit its highest relies on technology across almost every in- good news for the state of the labor market of two workforces. Low-wage jobs were the pandemic. is demand is driving level in nearly 2.5 years. Consider a job like dustry, salaries for SAP app developers and in Chicago, we will not collectively reap being lost at nearly eight times the rate of the highest upticks in compensation and a warehouse manager, for example, where data scientists, for instance, are expected the bene ts if we fail to focus on matching high-wage jobs during the height of the bene ts for technology, warehousing and employees are anticipating an increase of to increase by nearly 2 percent, to highs of those left out of the economy with these

P015-P021_CCB_20210322.indd 18 3/19/21 2:23 PM CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 19

A PATH TO RECOVERY Chicago leads a fourth Industrial Revolution he pandemic didn’t only ble events with industry CEOs to bring us new challenges, it understand how to capitalize on Thighlighted existing ones. new shifts in market demand in In response to the pandemic, order to be sustainable during the Mayor Lori Lightfoot convened pandemic and in the future. In the COVID-19 Recovery Task meeting with the heads of Chica- Force whose objective was to go manufacturers, the common create the most inclusive and refrain was the need to strengthen equitable recovery of any large education, improve career path- city in the U.S. and thereby ways and develop the workforce. become a role model for urban Michael As we look back at the last centers around the world. e Fassnacht is year, the pandemic has high- task force, which was comprised chief marketing lighted the importance of U.S. of a diverse and dynamic group o cer for the city manufacturing and has shown of academic, business, com- of Chicago and how innovation and technol- munity and civic leaders and interim pre sident ogy in Chicago are reframing policy experts, issued strategic and CEO of World the future of the industry. For recommendations for a path Business Chicago. example: forward that not only addressed economic recovery across all 77 neighbor- w mHub, comprising over 350 startups, hoods but also identied healing opportu- supported by a deep talent pool of product nities from historic disinvestments in our designers and developers, entrepreneurs, Black and Brown communities. engineers and manufacturers, corporate Building on Chicago’s historic strengths leaders, industry experts, mentors and in a number of key sectors, including man- investors. ufacturing, was among the recommen- dations. Even after decades of business w MxD (Manufacturing x Digital), where expansion across the globe for lower-cost innovative manufacturers go to forge manufacturing, Chicago’s status as North their futures, works in partnership with America’s leading manufacturing hub the Department of Defense to equip U.S. remains unchallenged. is is supported factories with the digital tools and exper- by the second-highest count of manufac- tise they need to begin building every part turing business establishments in the U.S., better than the last. coming in at 11,968. Chicago has major competitive advan- w Argonne National Lab. With an annual tages, such as world-class universities and $830 million budget to support 16 unique In factories of the near future, these sensors data and computing power to do quickly. cient factory that’s always humming with a diversied industry base. Our geograph- research divisions, many focused on the and companion algorithms will not only It’s a job a human could never do. little to no excess inventory. It’s a factory ical location also allows us to be leaders in accelerated development and adoption predict a problem. ey’ll make a decision Instead, the factory has to hire workers that wastes less money and materials. It’s a transportation and logistics as the capital of new materials for manufacturing, to adjust the machine’s operations, without with digital skills we don’t normally as- factory that always delivers products to its of the Midwest economy. While the Chica- researchers here are developing scalable human intervention, to prevent one. In that sociate with manufacturing: data scien- customers on time. go region represents 2.9 percent of the U.S. processes for advanced materials and way, every part can be made better than the tists, cybersecurity experts and software As a result, it’s a factory that wins more population, it accounts for 3.3 percent of manufacturing, oering a very promising last. engineers. business. And what do all growing compa- manufacturing employment, with manu- view as to how new materials can go to is requires an enormous amount of is factory of the future is a more e- nies do? ey hire more people. facturing jobs in the Chicago area totaling market faster. over 420,000. World Business Chicago esti- mates that there are currently over 10,000 Chicago is primed to overcome the open manufacturing jobs in the broader disruption caused by the pandemic and in-demand roles. More than 50 percent of Chicago region. As a result, we need to well positioned to be a driving force in this business executives believe more than half focus on workforce development programs fourth industrial revolution. of their workforce will need to be re-skilled that train, place and support talent in We have a lot of work ahead of us, in the next three years, and that need has Chicago’s manufacturing ecosystem for but the opportunity is enormous. is only become more immediate with a tran- today, tomorrow and the future. Fortunate- moment requires three key pillars for an sitioning workforce amid COVID-19. ly, Chicago has an incredible resource in equitable recovery: a strong collaboration In other words, as business leaders race the Chicago Cook Workforce Partnership, among our private, public, academic and for top talent in thriving industries, they the largest public workforce development research sectors; a workforce that has the have an immediate opportunity—and system in the nation, providing hands-on tools to succeed in the jobs of today and a responsibility—to support displaced manufacturing training programs with the are equally trained and well positioned for workers through skilling initiatives that goal of increasing our skilled labor pool the jobs of tomorrow, as well as continued can ultimately contribute to a fair and available to Chicago-region manufacturers. acceleration in innovation and investment even economic recovery. Large companies Last year, Mayor Lightfoot tasked World in our local manufacturing ecosystem like Amazon and JPMorgan have already Business Chicago with convening roundta- across our diverse city. expressed their commitment to skilling workers, and Randstad has pledged to skill 40,000 workers by the end of 2021. With a huge pool of displaced workers and extreme talent shortages, it’s a win-win situation. Investing in our workforce through competitive compensation and ambitious skilling programs will not only help to speed up the region’s economic recovery, but it will ensure that it accounts for every- 3.5 percent to as much as $45.06 an hour. $163,576 and $164,157, respectively. one. As business leaders continue to nav- Additionally, as the nation increasingly Yet while compensation increases are igate this new working environment, they relies on technology across almost every in- good news for the state of the labor market should take advantage of an opportunity dustry, salaries for SAP app developers and in Chicago, we will not collectively reap to attract and retain top talent and play an data scientists, for instance, are expected the benets if we fail to focus on matching integral role in quickly getting Chicago’s

to increase by nearly 2 percent, to highs of those left out of the economy with these economy back on track. OSGOOD ZAC

P015-P021_CCB_20210322.indd 19 3/19/21 2:23 PM 20 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS

FACTORIES Continued from Page 15

paradox in those numbers as they struggle to nd skilled labor to op- THE STATE erate factory- oor machines. Mid- dle-class, $50,000-a-year jobs are OF MANUFACTURING going begging. And the shortage Manufacturers in Illinois account for of talent is the one aspect of busi- 12.54 percent of the total output in ness that keeps company owners, the state and employ 9.58 percent of who worry less about the corona- the workforce. virus every day, awake at night.  ey may be able to nd out-of- ILLINOIS MANUFACTURING work waiters and bartenders, but trained operators of computer OUTPUT IN BILLIONS numerical control instruments are $120 worth their weight in gold. At Custom Aluminum Prod- ucts in South Elgin, Shane Tred- 100 up knows the frustration. His company extrudes and fabricates all kinds of aluminum. It em- 80 ploys 450 people split between a 500,000-square-foot plant in $108.43 South Elgin and a smaller facility 60 nearby in Genoa. Tredup says that orders last March and April “dried up” for a time but began to reap- 40 pear by May and June. It helped that his metals were going into critical medical gear including 20 ventilators and other breathing machines as well as hospital carts. By the end of the year, sales were 0 ’18’17’16’15’14’13’12’11’10’09’08 down only 5 percent. In January and February this year, volumes were 10 percent Source: National Association of Manufacturers ahead of a year ago. “ ere is real pent-up demand coming out of the recession,” he says. Yet he has chemicals for cleaning and sani- 40 un lled jobs requiring skills tizing have all done well.” such as CNC, painting and forklift More agile companies quick- driving, despite a big 20 percent ly pivoted. Richards-Wilcox, a boost in wages around the plant 130-year-old maker of shelving in November. Tredup has invest- in Aurora, retooled to make hos- ed in robots and other automation pital beds. An old Hart Scha ner where he can, but nevertheless & Marx men’s suit plant in Des admits that “we could do 10 to 20 Plaines started making hospital percent more in sales volume here gowns and face masks. if we only had the people. We’ve In all, Denzler reports that IMA had to turn away some orders, and membership actually grew last push the lead times out on others. year. Yet total employment in the  is isn’t just a problem for us. state’s manufacturing sector is still Anton Peddinghaus, CEO of Peddinghaus Corp., a maker of structural steel fabricating machinery, hopes Congress will pass an infrastructure bill this year. Our competitors are faced with down, from 592,000 a year ago to a the same thing. Business is that current total of 556,000. 120 “MANUFACTURING WORK ISN’T LIKE POUNDING WITH good right now.” Some analysts believe that in Custom Aluminum has steadily the rst blush of recession, man- HAMMERS IN A BLACKSMITH SHOP ANYMORE. IT’S ALL automated every year. Extruded ufacturers cut too many workers, 100 metal that was once grabbed by and more recently have not been CLEAN AND COMPUTERIZED.” workers and manually stretched is able to hire them back. So the Bill Isaac, senior vice president of sales, MC Machinery Systems now grabbed by a robot that does scramble for talent and toward 80 the same work in less time, result- automation has shifted into a ing in a 20 percent gain in capaci- higher gear. “If anything, the pan- ty. Elsewhere, machines that used demic has taught us the impor- 60 to turn out a part in two minutes tance of a strong manufacturing are being replaced and upgrad- sector,” Denzler says. “Going for- 40 ed to make the same part in 1½ ward, you’ll see many industries minutes. “In the past decade, our reshoring operations from over- factory  oor has taken on a very seas back to the U.S. as we set a 20 di erent look,” Tredup says. goal to be less reliant on foreign suppliers.” MAKING THE PIVOT Ed Youdell, the president and 0 Executive orders issued last year CEO of the Fabricators & Man- by Gov. J.B. Pritzker that deemed ufacturers Association Inter- most manufacturing companies national in Elgin, believes that essential businesses helped buoy many manufacturers overreacted the sector, allowing them to oper- in cutting their sta ng early in ate amid the pandemic. the pandemic crisis.  ey were Mark Denzler, CEO of the Oak recalling lessons learned, he be- Brook-based Illinois Manufac- lieves, in the depths of the 2009 turers’ Association, observes that recession, when business fell o some sectors have fared better by as much as 40 percent and than others. “ e auto sector was remained at depressed levels for down for a while, and aerospace years afterward. has su ered, too,” he says. “Food “ e downturn ended up be- manufacturers and makers of ing very brief this time around,” Je Adams, president of Laser Precision in Libertyville, is hiring again and keeping an eye on in ation. Bill Isaac is senior vice president of sales at MC Machinery Systems in Elk Grove Village.

P015-P021_CCB_20210322.indd 20 3/19/21 2:23 PM CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 21

At Bison Gear & Engineering in St. Charles, CEO John Burch says growth is up 10 percent and better over a year ago.

Youdell says. Many association for more green energy, including ery Systems in Elk Grove Village, members are growing, with their wind turbines and solar panels, for instance, has showrooms pro- biggest constraint to growth being could also give his rm a boost, he moting electrical discharge ma- nding quali ed workers. adds. chining equipment capable of While Laser Precision in Liber- cutting and grinding metal to a tyville is hiring again, Je Adams, MANAGING GROWTH tolerance of one ten-thousandth president, has other worries. As Some evidence suggests that of an inch. “A human hair is 100 steelmakers’ supply chains have workers may be easier to recruit in times bigger than that,” says Bill become scrambled, the prices of the more urban environs of Chi- Isaac, senior vice president of certain commodities have soared. cago. Laystrom Manufacturing in sales. “Manufacturing work isn’t Flat-rolled carbon steel, priced at Logan Square, a metal fabricator like pounding with hammers in a $450 a ton last August, shot up to and stamper, has succeeded in blacksmith shop anymore. It’s all $1,200 in late February on spot expanding its workforce by more clean and computerized.” markets as steel mills’ capacity re- than 50 percent in the past four Maybe it’s a little bit of every- mained reduced. years to 72 people. at’s been thing. ose increases have been cost- necessary as sales zoomed 60 At MxD on Goose Island, one ly and disruptive for his company, percent in the three-year period of 16 manufacturing institutes Adams says. And he’s concerned ending in 2019 to approach $10 around the U.S. that displays a fac- about ination. “Somebody is million, landing the company on tory of the future, some of the lat- going to have to pay for these in- the Inc. 5000 list of fastest-growing est digital machines are displayed creases,” he says. American companies. Laystrom next to the manual drill presses For other manufacturers, the re- grew another 10 percent last year common in factories of the 1950s.

PHOTOS BY JOHN R. BOEHM R. JOHN BY PHOTOS covery seems confusingly uneven. through the pandemic. MxD CEO Chandra Brown knows Anton Peddinghaus, CEO of Peddinghaus Corp., a maker of structural steel fabricating machinery, hopes Congress will pass an infrastructure bill this year. Peddinghaus Corp. in Bradley To keep up with the growth, both sides of the coin, having makes machines to drill, cut and Laystrom’s president, Colin Cos- worked previously at old-school “MANUFACTURING WORK ISN’T LIKE POUNDING WITH saw the sort of steel that supports grove, has installed lasers and ro- Oregon Iron Works and United high-rise buildings in big cities bots around the factory oor. He Streetcar. HAMMERS IN A BLACKSMITH SHOP ANYMORE. IT’S ALL like Chicago and New York. Anton increasingly needs more technol- Brown looks around Chicago Peddinghaus, the fourth-genera- ogy-talented workers to run them, and sees many machinists still CLEAN AND COMPUTERIZED.” tion CEO and owner, has enjoyed leaning heavily on support groups toiling away on World War II-era Bill Isaac, MC Machinery Systems decent growth over the years, from like Jane Addams Resource Corp., equipment. Elsewhere she sees $20 million in annual sales in the Richard J. Daley College and the manufacturing techniques as 2000s to around $100 million to- UIC Great Cities Institute for both modern as anything to be found day. ideas and worker training. in Silicon Valley. She believes that Sales were down just 4 percent Still, Cosgrove isn’t satis ed as the demand for local manufac- overall in 2020. e order sheet with this pipeline of talent. “e turing continues to grow, compa- has been quiet recently and with National Association of Manu- nies will need to be more resilient retail stores and oces emptying facturers is forecasting that we while stepping up to invest in out over the past year, CEO Ped- will have a shortfall of 2.5 mil- technology. “Some factory owners dinghaus worries that big con- lion workers in manufacturing by who come by to look at our display struction projects might slow to a 2028,” he says. here are wowed,” she says. “Others crawl. Cosgrove cites a study by UIC are overwhelmed. ey tell us they “ere may not be too many two years ago that found there don’t have millions to retro t their oce buildings being built again were 58,000 un lled manufactur- operations.” anytime soon. en again, hospi- ing positions in the Chicago area Yet in a time when customer tals may get built, and that would at that time. “I still believe in the orders are on the rise just as the be a boon to us,” Peddinghaus future of manufacturing,” he says. workforce seems to be shrink- says. His big hopes are that Con- “It should be clear that manufac- ing, she advises manufacturers to gress this year passes a new infra- turing is the engine of the econo- stand ready at the least to com- structure bill and that exchange my. But we have to convince more promise with small, step-by-step rates remain favorable for his ex- young people of that.” investments. “Try something, port business. “e infrastructure e growing sophistication and even if it’s just a sensor that tells bill would be huge for us and a lot immaculately clean image of the you when your welding machine of manufacturers,” he says, with latest factory equipment are likely has gotten hot,” Brown says. “e visions of new bridges and train to eventually attract interest from manufacturers of tomorrow are tunnels requiring heavy steel in- tech-minded young people. going to have to gure out how Bill Isaac is senior vice president of sales at MC Machinery Systems in Elk Grove Village. put. e structural steel required Mitsubishi-owned MC Machin- they can be better.”

P015-P021_CCB_20210322.indd 21 3/19/21 2:39 PM ACCOUNTING Advertising Section MANUFACTURING

Weiss & Company LLP, Glenview PRIMEdge Inc., Chicago PEOPLE ON THE MOVE Glenview-based PRIMEdge Inc. announced accounting firm Weiss & To place your listing, visit www.chicagobusiness.com/peoplemoves the appointment of Company LLP is pleased or, for more information, contact Debora Stein at 917.226.5470 / [email protected] Alexander Cozzini to to announce the promotion the role of president, Eve of senior managers ARCHITECTURE / DESIGN ARCHITECTURE / ENGINEERING LAW succeeding his father, Fugiel and Lisa Hahm Ivo Cozzini, who assumes to partners. Fugiel has the role of chief executive Wight & Company, Chicago Infrastructure Engineering Inc., Benesch Law, Chicago been with Weiss since Fugiel officer. Founded in 1905, Cozzini Chicago graduating from UIC and PRIMEdge is a Chicago- Martin Sinclair has joined is a key member of the Wight & Company based company with Lisa Ken Smorynski, PE, SE, Benesch as a Partner firm’s accounting services has promoted additional manufacturing Schmidt has been promoted to in the firm’s Litigation and tax departments, to Principal, and distribution facilities Vice President and Practice Group. He has working with small and Interior Architecture, in Brazil, Denmark, France, Wendy Watts Chicago Office Operations represented public and mid-sized businesses in a and to Germany, Spain, and Leader at Infrastructure private companies and wide range of industries as Principal, Education Sweden. Alexander has Engineering Inc. He will individuals in regulatory, well as investment entities Design. Schmidt is worked at various levels Schmidt oversee staff, operations, administrative, antitrust, and related to high-net-worth committed to the not only at the Chicago Hahm and strategic development. Since 2013, transactional matters including Cozzini individuals and families. design and execution headquarters, but also Ken has been a vital part of the Chicago advising on corporate governance, Hahm came to Weiss after working of interior architecture their European headquarters in office’s explosive growth formerly complex disputes in the mergers as a tax analyst and tax supervisor of the highest quality France and their primary blade serving as the Design Group Manager. and acquisitions context, class action for larger accounting firms, and as a across corporate office, manufacturing facility in Germany. Ken has more than 27 years of industry lawsuits, shareholder derivative top performer in our tax department hospitality, federal, This exposure allowed him to gain experience and holds master’s degrees litigation, fraudulent transfers, and provides accounting and tax services library, justice, and knowledge in many facets of the in both civil engineering and business commercial contracts. to closely held businesses, family office educational markets. business including administration, administration from the University of clients and consolidated corporations. Her expertise ensures sales, and manufacturing. PRIMEdge Illinois, Urbana-Champaign. cohesive and holistic Watts specializes in cutting edges and interior design and the sharpening technologies for the continuous improvement of quality meat and food industry. in design and construction. Watts designs inspirational spaces LAW ACCOUNTING / ADVISORY CONSULTING that shape the learning experience, resulting in environments where CONSTRUCTION Burke, Warren, MacKay, & Riveron, Chicago / Dallas students can achieve their full Serritella, P.C., Chicago potential. She draws upon user Riveron, a national behavior insights to inform design Development Solutions Inc., Oak Brook Burke, Warren, MacKay & PHARMACEUTICAL business advisory firm strategy. This approach results in Serritella, P.C. welcomes specializing in accounting, unique solutions for today’s evolving Development Solutions Inc. Frank J. Emmons, a Clarus Therapeutics Inc., Northbrook finance, technology, world of teaching and learning. veteran tax attorney with and operations, recently is thrilled to announce the promotion of Jim Karcz deep knowledge and Clarus Therapeutics Inc. announced Julie Howard ARCHITECTURE / ENGINEERING experience. Emmons as its new chief executive to Chief Financial Officer, has appointed Richard as a reflection of his helps clients buy and ‘Ric’ Peterson chief officer. Julie brings more than Eriksson Engineering Associates, Ltd., sell businesses, where he provides 30 years of professional services outstanding performance financial officer (CFO). Grayslake and contributions to the transactional and long-term planning Peterson brings to experience in dynamic leadership and structuring as well as high-level positions where she was responsible financial, accounting and human Clarus a wealth of Tara Horan has been tax due diligence. Frank’s practice also for creating and executing growth resource management aspects of financial leadership promoted to Accounting includes handling tax controversies strategies, including in her role as the company over the past 5 years. experience from his 25-year career Manager at Eriksson at all levels, as well as income tax former chairman and chief executive In this new role, Jim will provide in the pharmaceutical industry, Engineering Associates, reporting issues, both domestic and officer of Navigant Consulting. senior leadership for the planning, where he served as CFO of public Ltd. (EEA). In this implementation, and management of international. Frank joins BWMS as the and private companies. Peterson’s key role, Tara will be all financial activities for the company Chair of the Tax Department. deep financial expertise, including responsible for the as well as continuing to oversee extensive experience in capital management of EEA’s accounting human resources. markets, position him to help lead and human resources operations as the company’s efforts to expand its ARCHITECTURE / DESIGN well as financial reporting, growth product portfolio and build on its forecasting, and strategic business existing commercial opportunities. Kahler Slater, Chicago / Milwaukee analytics. Tara received a Bachelor of Arts in Accounting and Finance from Kahler Slater is pleased Carthage College and has been with to announce two EEA since 2017. new Principals to our Leadership Team, Aaron EDUCATION LAW Ebent and Joseph PHARMACEUTICAL Sinnett. As Principals, North Lawndale College Prep Miller, Canfield, Paddock and Stone, High School, Ebent and Sinnett are Chicago Chicago Orphazyme US, Inc., Chicago recognized for their Ebent CREATIVE strong leadership North Lawndale College Real estate attorney Daniel Gallo joined Prep is pleased to Orphazyme as U.S. Head within the firm, proven Laughlin Constable, Chicago LaVon M. Johns has design creativity, and announce that NLCP alum joined Miller Canfield’s of Medical Affairs as and University of Missouri the company prepares exemplary service to the Laughlin Constable (LC) Real Estate Group alum Chauncey Rice to launch its first rare communities and clients today announced in the firm’s Chicago is joining the board of disease treatment. Gallo they serve. Ebent, an the promotion of office. Johns will be NLCP. He currently serves has a PhD in cell and award-winning Designer, Rome Seifert to chief a key member of as Director of Intergovernmental molecular biology and biochemistry has been with the firm operating officer (COO). Miller Canfield’s P3 (public-private Affairs and Public Engagement for from Northwestern University since 2006 serving Sinnett Seifert has served as partnerships) team. Her practice the Office of City Clerk Anna M. and has expertise in all aspects of Kahler Slater’s Corporate LC’s CFO for the last six focuses on real estate and finance Valencia, where he is responsible medical affairs, with experience and Hospitality markets with projects years where he applied 20 years of transactions, MBE/WBE (minority for relationship management and supporting launches across multiple in Wisconsin and across the country. accounting experience and helped business enterprise/women’s business community engagement strategy. therapeutic areas. Orphazyme is As a Team Leader for Kahler Slater’s the agency grow in an impactful enterprise) certification and nonprofit He previously served as a Chicago a late-stage biopharmaceutical Corporate, Residential, and Hospitality way, establishing LC as a leading law. Johns joins Miller Canfield from Mayor’s Office Staffer for Government company with its U.S. headquarters markets, Sinnett brings over 15 years independent creative agency in the Quintairos, Prieto, Wood & Boyer. Affairs and Aide to 24th Ward in Chicago and its global offices in of market experience in directing Midwest. Seifert’s expanded new She is the Vice Chair of the IICLE. Alderman Michael Scott Jr. Copenhagen, Denmark. complex projects including a proposed role includes project management net zero source energy multifamily and digital delivery, overseeing all project in metropolitan Chicago. agency operations and more. HEALTH CARE

DESIGN / BUILD Academy of General Dentistry, LOGISTICS TECHNOLOGY Chicago Clayco, Chicago BANKING / FINANCE Prologis, Chicago CCC Information Services Inc., The Academy of Chicago Carly Bashioum has Prairie Capital Advisors, Inc., Chicago General Dentistry has Carter Andrus has been joined Clayco as Public named Colleen Lawler, promoted to president of Shivani Govil has Relations Manager. Carly Prairie Capital Advisors, CAE, IOM, as its new Prologis’ Central region. been named Chief has over 10 years of Inc., a leading corporate executive director. He is responsible for Product Officer at CCC experience in marketing advisory and investment She is an experienced development, acquisitions Information Services Inc., and communications banking firm, has expanded executive and visionary and operations across ten a leading SaaS platform for professional services its Investment Banking leader with strong experience markets: Chicago, Dallas, for the P&C insurance firms. In her new role, she will be Group with the hiring of in healthcare associations and Houston, Cincinnati, Columbus, economy. Govil will lead responsible for accelerating Clayco’s John Waller as Managing membership organizations spanning Indianapolis, Louisville, Nashville, the company’s product strategy, external communication efforts and Director. With nearly 25 years of over 25 years. Lawler was the Austin and San Antonio. Previously, product management, and marketing increasing brand awareness. Carly investment banking experience, executive director of the Society of he was managing director of functions and advance the company’s holds an MS in communication from Mr. Waller provides mergers and Cardiovascular Anesthesiologists. Capital Deployment for the Central strategic vision of delivering AI, IoT, Northwestern University and a BA acquisitions (M&A) services to private She also held leadership roles at Region. He’s a former president customer experience, and network from Illinois Wesleyan University. companies, large corporations and American Medical Association. and executive board member of management solutions. CCC’s Cloud private equity firms. Mr. Waller will NAIOP’s Chicago Chapter and has a connects 30,000 businesses including lead and co-lead transaction teams Bachelor of Arts in economics from insurers, automakers, collision repairers, and develop business for the firm. the University of Michigan. lenders, and more. CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 23

PERCENTAGE OF Why herd immunity is a moving target POPULATION FULLY HERD from Page 1 higher than in areas where peo- many vaccines we have,” Fricchi- VACCINATED ple can easily isolate and get test- one says. “No matter how e ective 0% or we’re getting close to that in ing and treatment. For a number they are, if we don’t have enough, a particular subset, that doesn’t of reasons, such as limited access we have to really put them in the 5% mean we have herd immunity to online scheduling systems and right place to break chains of 10% that is really going to be protect- transportation barriers, communi- transmission.” ing the entire population,” says ties that need to reach higher levels at’s one reason the city and 15% Dr. Rachel Rubin, who co-leads tend to have the hardest time get- other jurisdictions have prioritized the Cook County Department of ting vaccinated. seniors in their vaccination cam- 20% Public Health. “You have to look For example, 4.4 percent of the paigns. Regardless of underlying CHASING 25% at it within the context of the dis- population that resides in ZIP code medical conditions, vaccinating ease and within the context of 60621—which includes Engle- older adults has the biggest impact THE HERD 30% certain demographic characteris- wood, one of 15 high-need com- on preventing COVID-19 deaths, ac- Vaccination rates tics related to who is immune and munities identied by Chicago’s cording to the Chicago Department who isn’t.” COVID vulnerability index—had of Public Health. vary widely across Reaching that 70 percent thresh- been fully vaccinated as of March Based on Chicago data, the city Chicago’s neigh- old statewide or even citywide isn’t 17. But the area has one of the prevents one COVID-19 death by borhoods, often a guarantee against future out- highest mortality rates per 100,000 vaccinating 49 people who are 80 breaks. If vaccination rates lag in people in the city. Meanwhile, 14.1 and older, compared with prevent- running lower in some areas, the virus could contin- percent of Lincoln Park residents in ing one COVID-19 death by vacci- areas hit harder ue to circulate and mutate, generat- ZIP code 60614—where the mortal- nating 17,000 people age 18 to 29. by COVID-19. The ing new variants impervious to vac- ity rate per 100,000 people is much “You have to think about, if any cines and making the entire region lower—have been fully vaccinated. one person—an average person in herd immunity vulnerable again. your community—gets COVID, how threshold is higher With a mutating virus, it be- STILL AT RISK many other people are they going to in those areas. comes “much harder to get to herd Communities that have su ered transmit the disease to before they immunity, and it requires a di er- more are also the ones that are still at themselves get better,” Dowdy says. ent public health response than risk for ongoing transmission, says In addition to targeting commu- what we typically think of for mea- Dr. David Dowdy, an infectious dis- nities with high rates of infection sles or some other childhood vac- ease epidemiologist at Johns Hop- and death, health ocials are fo- Source: City of Chicago cine-preventable diseases,” says kins Bloomberg School of Public cused on reaching communities Dr. Marielle Fricchione, a medical Health. “So it’s not just about doing with large numbers of essential director at the Chicago Depart- what’s fair, although that’s part of it,” workers and crowded housing, basically a three-month window to tagious measles virus, the risk of ment of Public Health. he says. “It’s also about doing what’s among other indicators of social get as many vaccines into the high- which remains low in the U.S. due e concept of herd immunity is going to get transmission rates down vulnerability, Fricchione says. est-risk people as we can to try to to high rates of immunity, outbreaks simple: Once a certain percentage of the fastest.” “ose are the communities prevent a third wave of this disease have sparked in recent years with the population becomes immune— Without enough vaccine to in- where one dose of vaccine has a because we know it’s mutating and the virus penetrating undervacci- either through vaccination or prior oculate everyone at once, local much bigger impact on the chain of we know there are variants,” Fric- nated communities. infection—viruses are less likely to public health departments have transmission,” Fricchione says. chione says. “Getting vaccine rst to the high- infect new people. e more easily focused on getting early doses to Adding another layer of complex- Undetected, asymptomatic cases est risk settings has the biggest im- a pathogen spreads, the higher that communities with high rates of in- ity is the fact that herd immunity is of COVID make it impossible to pact in driving down case rates,” Chi- percentage needs to be. Experts es- fection and death. not a steady state—particularly not know the exact percentage of any cago Department of Public Health timate that the immunity threshold e city of Chicago got about in the case of COVID-19, since the given population that has some level Commissioner Dr. Allison Arwady for the coronavirus is somewhere 65,000 rst doses the week of March exact duration of immunity con- of immunity. And not all individuals said during a March 17 press brief- between 70 and 90 percent. 15, according to data from the Cen- ferred by vaccination and natural will mount the same immune re- ing. “It helps protect every one of us But in communities where phys- ters for Disease Control & Preven- infection is still unknown. sponse, which means some people from the emergence of variants, and ical distancing at home or at work tion. “We only have a small window will be better protected than others. it moves us closer to reopening and is more dicult, the threshold is “A limiting factor for us is how of known strong immunity—that’s Even in the case of the highly con- getting back to normal.”

The number of unvaccinated health care workers is unknown WHO’S BEEN VACCINATED AT CHICAGO AREA HOSPITALS? VACCINATIONS from Page 3 as eligibility has expanded to more the vaccine’s proven ecacy, the As of March 11, 72 percent of people. emergency use authorization “cre- UChicago Medicine’s 14,800 em- Rush: As of March 9, 77 percent of its While they do require reporting “My personal opinion is that we ates uncertainty for anybody get- ployees have either received at roughly 15,000 staff on age, race and ZIP code, federal need to gure out where the vac- ting the vaccine, and legal uncer- least one dose of vaccine or sched- and state authorities have not re- cines haven’t been given: in health tainty as to an employer’s liability,” uled a vaccination appointment. Lurie Children’s Hospital: As of March quired vaccinators to gather em- care, in neighborhoods, among says professor Michael LeRoy, who e hospital hosted town halls and 10, 80 percent of its roughly 8,000 staff ployment information from people older people, in nursing homes, teaches labor and employment re- smaller work unit huddles to try to Advocate Aurora: As of March 11, who get vaccines. Some national in every setting where it’s import- lations at the University of Illinois boost rates further. nearly 70 percent of physicians, physician data exists distinguishing between ant, every high-risk or front-facing College of Law. Dr. Vishnu Chundi, a senior assistants and nurses resident and sta vaccinations at community,” Landon says. Federal health privacy law bars partner at Metro Infectious Dis- nursing homes, but neither Wal- e picture is even murkier at management from seeing sta vac- ease Consultants and the chair Edward-Elmhurst Health: As of March greens nor CVS (which are man- independent medical and den- cination records in some workplac- of the Chicago Medical Society’s 17, 69 percent of its 8,852 staff aging those campaigns in Illinois) tal practices where workers and es. Disclosure is also a hot button COVID task force, says his prac- collects that information. patients still face high risk, says for unions, which have objected to tice is considering asking unvacci- University of Chicago: As of March 11, Crain’s asked Chicago’s largest Dr. Vineet Arora, the CEO and mandatory u shots in the past. nated workers to double mask or 72 percent of roughly 14,800 staff hospital systems about their sta co-founder of Illinois Medical Pro- “ere’s not a clear answer about wear N95s going forward if they’ve Amita: Close to 60 percent of roughly vaccination rates. e average for fessionals Action Collaborative whether it’s OK to track whether chosen not to be vaccinated. But 17,300 employees those that responded was just un- Team, or IMPACT. an individual has their vaccine,” moving unvaccinated workers to der 70 percent. at’s short of the “When I take my daughter to the Landon says. “Many hospitals have lower-risk tasks is dicult, he says. Cook County Health: As of March 1, 56 81 percent of health care workers dentist, no one at that practice has avoided even having people wear “It’s not like there’s a ton of people percent of employees who got u shots during the 2018- been vaccinated. I went to an eye stickers that say they’ve been vac- who know how to do neurosurgery No Response: Northwestern, Loyola, 2019 season, according to the fed- doctor recently. None of the front cinated, because they don’t want or anesthesia.” NorthShore and UI Health eral Centers for Disease Control & desk clerks have been vaccinated to make unvaccinated people Rush University Medical Center Prevention. yet,” Arora says. feel bad, they don’t want to have reported one of the highest vac- Source: Crain’s reporting At the beginning of the vaccine any coercion or make people feel cination rates. As of March 9, 80 rollout, the state estimated that Illi- PRIVACY they’re somehow di erent.” percent of clinical sta and 77 per- nois had 540,000 health care work- While hospitals are tracking “To protect our employees’ pri- cent of all employees had received and o ering to address any ques- ers, ranging from physicians, nurs- overall sta vaccination data in- vacy, we do not share individual shots. “At the outset, we didn’t have tions or concerns. es and dentists to lab, dietary and ternally, they face sticky privacy or small-group COVID-19 vacci- a specic target besides getting as e city also asked Rush to vacci- security workers. If 70 percent have pitfalls. Hospital workers are re- nation information,” a UChicago close to 100 percent as we can, un- nate about 3,000 health care work- been inoculated, 162,000 remain quired as a condition of work to Medicine spokesperson says. “In- derstanding we’d likely land closer ers. By March 9, the hospital had vac- unvaccinated. Not knowing who get their u shots, but because the stead, we analyze our institution’s to between 60 and 80 percent,” says cinated or scheduled 2,300 of those or where those unvaccinated work- COVID-19 vaccine was approved overall vaccination rate as well as Dr. Paul Casey, Rush’s chief medical people. But Casey says Rush has no ers are makes it dicult to connect under emergency use by the U.S. broad, department-level statistics ocer. e hospital is tracking who way to know how many of the 700 them with vaccine appointments, Food & Drug Administration, it to better identify certain work areas has been vaccinated, telling the un- who haven’t responded might’ve which are still dicult to come by isn’t similarly mandated. Despite that may need additional support.” vaccinated how they can get a shot, gotten vaccinated elsewhere.

P023_CCB_20210322.indd 23 3/19/21 2:42 PM DIVERSITY IN RECRUITING AND HIRING ATTRACTING A BROAD RANGE OF TALENT

As organizations commit to their workforce diversity, equality and inclusion (DEI) initiatives, recruiting and hiring more women, people of color and other underrepresented groups has become a critical piece of the puzzle. Four business leaders shared their insights with Crain’s Content Studio on the value of inclusion and how companies can attract and hire a broader range of talent while eliminating bias and improving diversity.

Why is DEI important to your understand that it’s multifaceted and Tauhidah Shakir: We want workforce brings more creativity actively support their e orts and organization—and to your ongoing and requires trust, humility employees to feel welcomed, and new ideas that allow us to better source potential candidates. We industry? and commitment at all levels of our respected, safe and encouraged to understand di erent segments of the also use job boards targeted toward organization. bring their whole selves to work. population, anticipate their needs and groups of diverse talent. As part of Holly Rudnick: Our commitment A commitment to DEI is critical deliver on them. our commitment to DEI, we’ve also to DEI helps us attract a wider array Otto Nichols III: As a developer to cultivating a culture and work invested in a manager of talent to of talent and a broader range of and design builder, we’ve long experience that we’re proud of—one What’s the number facilitate these e orts and support our perspectives and skills. is is crucial recognized that having a diverse and where every employee has a voice. one challenge you’ve strategic recruiting initiatives. for ensuring a variety of things—from inclusive employee base provides experienced in attracting engagement and retention to making tremendous value in our ability to Ashley Price: Diverse teams and hiring diverse Price: Awareness is our biggest certain that our workforce is best deliver creative solutions for our enable us to understand and meet candidates, and how did you challenge, and we’ve been creative suited to communicate, collaborate, clients and to perform successfully the expectations of our clients deal with it? in the ways we work to increase innovate and ultimately execute our in all parts of the country. That and associates. DEI programs awareness about Baird and the strategic goals. We also know we must value directly affects our bottom are not only essential to building Nichols: Our largest and ongoing opportunities available within the re ect the diversity of the markets line. The diversity in our teams a more engaged and productive challenge is simply attracting the best  nancial services industry. We’re we work in and the clients we serve. reinforces our culture of curiosity workforce, but research shows that talent to the construction industry. currently expanding the number of By having that diversity in house, and open mindedness that we seek organizations with more diversity Unfortunately, there aren’t many partnerships we have with diverse we’re better poised to support those as an enterprise. We operate in such tend to outperform by having higher schools with programs that funnel organizations and universities to we work with. We feel it’s imperative a wide range of communities and customer growth and sales revenue. students into construction, and the ensure that we’re getting our name to commit to DEI, which is why manage such a diverse construction In an industry where there’s a lack ones that do typically have very and the available careers paths in we’ve not only made it a key strategic workforce that a commitment to of diversity, it’s important that our few women and minority students. front of underrepresented groups. initiative, but have woven it into every DEI is a requirement to remain workforce re ect the communities ere’s a need to introduce high Attracting the next generation of facet of our business and culture. We effective. that we live in and serve. A diverse school students to construction and talent is very important. If they don’t generate excitement for the many know what opportunities are available di erent career opportunities in the in the industry, how will they know industry before they’ve decided which to consider them when declaring a colleges to apply for. We’ve found it major or choosing a career path to

“OUR COMMITMENT TO DEI HELPS US ATTRACT A WIDER ARRAY OF TALENT AND A BROADER RANGE OF PERSPECTIVES AND Together SKILLS.” HOLLY RUDNICK, LEOPARDO COMPANIES helpful to partner with established pursue a er college? By getting in community and labor organizations front of that talent early, we hope to that share our goal. Out of necessity, increase visibility to the industry and We Build we’ve also started the Construction knowledge about the opportunities Career Development Initiative to help available. mentor and guide students who have shown interest in the construction Shakir: e number one challenge Opportunity industry. I’ve experienced is conveying that where we’re at today is not the  nish Rudnick: e construction industry line to attracting and hiring diverse has been facing a widespread talent candidates. We’ve made great strides, shortage for some time now, and but recognize that there’s so much For Everyone the talent pool that is available is to do to bring our DEI vision to life. statistically limited in diversity. Any thoughtful plan takes time and Given that reality, it’s important attention to formulate—diversity that we have a proactive recruiting recruiting plans are no di erent. strategy that begins long before we Finding the right milestones and have a position to  ll, and includes metrics, and communicating your CLAYCO RISING compiles 25 years of diversity and inclusion outreach and mentoring within the intentions is key for the organization RISE TOGETHER. initiatives together to enhance commitment to drive lasting, community and at the college level. and candidates. equitable change and challenge the industry standard. We will We build relationships and partner rise above to bring positive transformation within our industry with organizations ranging from In what ways has your by building a diverse, respectful and safe workplace for all. nonpro ts to local coalitions and organization’s interview certi ed women- and minority- process become more By working together, there’s no limit to how high owned business enterprises to inclusive? claycorising.com you can rise with Clayco.

P024_027_CCB_20210322.indd 24 3/16/21 9:09 AM SPONSORED CONTENT

Shakir: We focus on developing diverse internal leaders to create stronger employee engagement and retention. Internal programs focused on developing underrepresented employee groups are essential to promoting diverse growth at the leadership level.

Price: We recently added councils in all areas across the rm to plan and execute department-specic initiatives such as continuing education, mentorship/sponsorship and leadership development OTTO NICHOLS III ASHLEY PRICE HOLLY RUDNICK TAUHIDAH SHAKIR programs to further advance eorts to EVP, Shareholder Private Wealth Management VP - Human Resources VP - Human Resources, retain, promote and develop diverse Clayco Diversity Talent Advisor Leopardo Companies Chief Diversity Of cer talent. Our associate resource groups [email protected] Baird [email protected] Paylocity also play an integral role in helping 314-753-8070 [email protected] 847-783-3460 [email protected] to provide diverse associates with the 312-332-5600 224-242-4063 support, resources and opportunities needed for professional growth and development.

Price: We partner with our hiring of where, how and when interviews Association Test are helpful in or biases that may have otherwise Rudnick: We’re focused on creating managers to create a structured take place, utilizing a diverse group identifying those. gone unnoticed. Frequently, just the a work environment where everyone interview process that’s consistent of interview panelists, as well as knowledge of bias or unbalanced knows they belong, that they’re valued for every candidate. is includes inclusivity training for all those Shakir: It’s important to be demographics is enough for our for their unique backgrounds and focusing on competencies that are involved in conducting interviews. transparent about your organization’s teams to initiate change. However, perspectives, and that the work they specic to the role and utilizing demographics by sharing them training to facilitate that change is also do is meaningful. Mike Leopardo, interview scorecards to gather Nichols: We do signicant outreach to internally and externally. You can important; we recently hosted implicit our president and CEO, regularly feedback on candidates. We’re also ensure that interviews and opportunities do this by providing leaders with bias training for the entire company has conversations with employees to implementing diverse interview are inclusive. For example, we attend diversity dashboards that give and it’s now a standard course that make sure that he understands what’s panels which allow candidates to see many “college day” programs to them on-demand visibility to their all new hires are required to take. We important to them. is includes an a diverse representation of associates interview diverse groups of students department data. At Paylocity, our also create content for our website array of topics directly impacting the oering dierent perspectives during right on campus. We’ll hold intern applicant tracking system allows and social media to attract diverse employee experience, ranging from the interview process. Training is also positions open for schools with career recruiting teams to track, collect and candidates and promote the DEI career development to ensuring that a priority, as we want to ensure that fairs late in the hiring season, and move analyze candidate demographic data. initiatives we have in place. our total rewards oerings reect all hiring managers and associates toward hiring for open positions only the needs of our workforce. While included in the interview process are aer a diverse group of candidates has Nichols: Companies have access to After recruiting and hiring, we’re regularly reviewing our benets cognizant of their biases and know been identied. To be successful, we more data and analytical tools than what role does retention, oerings, what better way to ensure how to manage them. think outside the box and recruit in they did 20 years ago, and they’re development and promotion they’re meaningful than encouraging non-traditional capacities. Once we’ve extremely helpful in revealing trends play in your DEI strategy? employees to bring forward their Shakir: Not only do we provide identied a pool of candidates, we’ll y hiring managers with diverse all of them to our oce and let them candidate slates, but we also train our speak to a range of employees during talent acquisition team and hiring the interview. Aer the interviews, we’ll managers about the importance of all gather and objectively rank students DEI in the recruiting process and based on the attributes that will make how to reduce unconscious bias. them successful in their careers. Discover the power We stress the importance of using in partnership “WE PARTNER WITH OUR HIRING MANAGERS TO CREATE A STRUCTURED INTERVIEW PROCESS THAT’S CONSISTENT FOR EVERY CANDIDATE.” ASHLEY PRICE, BAIRD

interview guides during the hiring What types of technologies process with questions that are skills- and tools can help reduce focused and rooted in our core values. bias? Additionally, we strive to have diverse interview panels, and we continue Price: Structured interviews, to partner with diverse job boards diverse hiring panels, interview and posting sites. We continuously training and inclusive job One person alone can have an enormous impact on her community. But when monitor and review our candidate descriptions help create consistency passionate people – with diverse backgrounds, experiences and perspectives – diversity data so that our hiring so that all candidates are evaluated work together, there’s no limit to what we can accomplish. process remains inclusive. fairly and objectively. ere are platforms available to help write Learn more about Baird’s commitment to helping women achieve their Rudnick: We’re committed to inclusive job descriptions that appeal personal nancial and professional goals at WomenAtBaird.com. making sure our entire interview to diverse audiences; these also are process is fair, positive and consistent. key to reducing bias and attracting Our approach begins well before we a diverse talent pool. On the job, PRIVATE WEALTH MANAGEMENT get to the interview stage and includes employees need to recognize ASSET MANAGEMENT ensuring that our job postings are their specic biases—we all INVESTMENT BANKING/CAPITAL MARKETS written in a way that’s inclusive. have them—so they can take the PRIVATE EQUITY We’re focused on a variety of other appropriate steps to mitigate them.   approaches, including being mindful Tools like Harvard’s Implicit ©2021 Robert W. Baird & Co. Incorporated. Member SIPC. MC-559656.

P024_027_CCB_20210322.indd 25 3/16/21 9:09 AM DIVERSITY IN RECRUITING AND HIRING ATTRACTING A BROAD RANGE OF TALENT

ideas about how the company can other parts of the company. We’re to lunch together. We’ve also created messages. Organizations can also business should be done with DEI support them. We’ve also overhauled aware of the diculty and challenges business resource groups to provide create employee resource groups and/ as a value; I believe this makes the our talent management strategy that’s that diverse employees encounter and support to employees. For example, or listening sessions where employees largest impact. Clayco clearly outlines focused on career development at all we provide mentors, resources and we have a Black employees resources and leaders can share experiences the best practices to incorporate DEI levels of the organization. support as needed. group and also a network of women, and learn from each other. It’s also into company strategy and business known as Clayco NOW. We’re not benecial to have your DEI leader execution processes and reinforces Nichols: We work hard to maintain How can organizations hiding our dierences, but celebrating or someone from HR partner with DEI by tracking metrics and a fun and collaborative culture that foster a work environment them. a liaison from each department to incorporating them into employee encourages employees to be creative where people with different ensure that programs, policies and evaluations. In addition, our executive and entrepreneurial. By eliminating backgrounds feel valued for Shakir: Organizations should business initiatives are looked at chairman releases companywide the rigidity found in some companies, their differences? communicate clearly and oen through a DEI lens. updates addressing DEI, and also employees have the exibility to that they not only are accepting hosts smaller reside chats. resolve the issues that may otherwise Price: By leveraging and celebrating but are actively seeking diversity of Rudnick: Every employee has aect their retention. When I hired in dierences and looking at them thought, experiences, background, an important role in creating an Shakir: We use various resources at Clayco over 16 years ago I was told as strengths, we can create an gender, sexual orientation and inclusive culture. We all need to know such as trainings, micro learnings, that, if I worked hard and performed environment where employees feel more. DEI language needs to be that we’re an important piece of the speakers, reside chats and well, I could go as high as I wanted empowered and comfortable being docuseries to educate our employees in the company. at turned out their authentic selves. A key element about DEI. to be a true statement, as we pride is being intentional about increasing “ . . . OUR APPLICANT TRACKING SYSTEM ourselves in promoting those who our cultural competence and working Price: Our longstanding aggressively perform regardless of with people that are dierent from us. ALLOWS RECRUITING TEAMS TO TRACK, commitment to inclusion and their background, race or gender. Baird is committed to providing these COLLECT AND ANALYZE CANDIDATE diversity deepened meaningfully over We provide business resource opportunities through education and the past year. Following the tragic groups to employees so that they development, such as mentorship, to DEMOGRAPHIC DATA.” death of George Floyd, we hosted have a support network available as allow associates to listen and learn listening sessions for our associates they continue their careers. We’ve from one another. TAUHIDAH SHAKIR, PAYLOCITY to have important conversations also worked hard to establish a around race, privilege and inequality. nonlinear communication structure, Nichols: Executives should It allowed them to not only learn encouraging employees to make encourage employees to collaborate woven throughout every employee puzzle—that our thoughts, ideas and and understand the experiences of connections with other departments, and work with each other. Openly touchpoint to reinforce the message perspectives matter, and that we have others but to re ect on how they can managers and executives—providing communicating and spending time and the commitment to it. is continued opportunities to develop play a part in driving change. We among other benets, alternate together should be a top priority. We can be done verbally through DEI and participate in meaningful work. also listened to recommendations avenues for employees to learn about reimburse employee teams that go out statements, internal posts and We must also feel safe bringing our full, from our associates on the type authentic selves to the table. You lead of DEI training they needed and by example by consciously choosing wanted to see within the rm and inclusive behaviors like remaining have provided resources to help aid curious, assuming positive intent, them in their DEI journey. Some getting to know others, being open examples of how we’ve educated to feedback and showing humility. associates include oering trainings You must also ensure that employees on cultural awareness, unconscious feel safe to speak up when they see bias, microaggressions, and inclusive something that goes against company leadership. We’ve also hosted book values and commitment to DEI. clubs to spark dialogue about topics related to race. How are you educating your employees about DEI? As an employer, how do you showcase your diverse and Rudnick: is past year, we made inclusive culture? some signicant investments in our commitment to employee Shakir: Internally, we post our development, which includes a robust DEI initiatives on our website and learning platform, as well as a new employee handbook and provide performance management process frequent updates through community that empowers employees to use posts, DEI statements and town halls. their unique skills and talents while Externally, we showcase it through their mangers provide coaching recruitment communications, social and support. We launched a DEI media posts and client webinars and steering committee that consists of a podcasts. cross-functional team that’s a critical component to creating a meaningful Price: Our careers and corporate and inclusive culture. We’re also websites include stories from a redesigning our mentorship program, diverse group of associates who share both internally and externally, as well their experiences and why they enjoy as creating new employee resource working at Baird. Our associate groups. Little will be accomplished if resource groups are another way that employees rst and foremost don’t we showcase this. ey’re led and run understand what DEI means and that by associates across the organization every interaction is an opportunity to and include more than 1,000 active continue learning and developing. members. rough the work they’re doing internally and within the Nichols: Executives and managers community, we showcase how our have the largest roles in showing, associates are coming together to instead of telling, employees how drive change.

P024_027_CCB_20210322.indd 26 3/16/21 9:09 AM SPONSORED CONTENT

ABOUT THE PANELISTS

OTTO NICHOLS ASHLEY PRICE is the diversity talent TAUHIDAH SHAKIR III is an executive advisor for the private wealth is vice president of vice president management business at Baird, a human resources and shareholder multinational independent investment and chief diversity at Clayco, which bank and nancial services company. of cer at Paylocity, a specializes in the She is responsible for planning, Schaumburg-based “art and science of developing, coordinating and executing provider of cloud- building” with fast track, ef cient recruitment strategies and initiatives to attract candidates from a wide range based HR and payroll software solutions for industrial, commercial, of backgrounds to increase and improve diversity within the business and solutions, where she develops institutional and residential at Baird. She holds a master’s degree in human resources and a bachelor’s strategies and programs that foster projects across the U.S. Since degree in economics—both from Marquette University—and a professional a diverse and equitable workplace. joining the company in 2004, he certi cation from the Society for Human Resources Management. She has more than 20 years of has led large construction projects experience providing strategic HR totaling more than $1.25 billion, support, developing DEI programs including aviation, of ce, health and coaching leaders across all care, laboratory and nancial HOLLY RUDNICK is vice president areas of the organization. She holds facilities nationwide. He holds a of human resources at Leopardo a bachelor’s degree in organization master’s degree in construction Companies, a 44-year-old behavior from the University of North management from Washington construction company with of ces Texas, and certi cations from the University and a bachelor’s degree in Hoffman Estates and Chicago. She leads the company’s Human Resources Certi cation in civil engineering from the strategic human resources department, advancing its people Institute and the Fowler School of University of Missouri. and culture infrastructure. She has nearly 20 years of strategic Business and Executive Coaching. human resources experience across a wide range of industries, including construction, health care, retail and manufacturing. She holds a bachelor’s degree in human services and psychology from Kendall College and professional certi cations from the Human Resources Certi cation Institute and the Society for Human Resources Management.

Nichols: Internally, we praise disingenuous to recruit and hire humility and curiosity, as well as a Price: Talk to your employees. an environment where employees positive performance during project people under the guise of DEI but growth mindset. Be prepared for It’s important to understand their feel heard, seen and valued. reviews and employee performance not truly embrace the concept. ose some uncomfortable and candid experiences and any challenges Additionally, every organization reviews. Externally, we showcase eorts must be made a priority and conversations about where you are they may be facing. en look for should analyze their recruitment, strategic initiatives on our company pushed from the very top of the as an organization and where you trends, especially within dierent selection, promotion, compensation, websites and highlight daily wins organization. For example, Bob Clark, should be. Also, never underestimate demographic groups. Once you hear development and training processes, on our social media pages. e best our executive chairman and founder, the power of storytelling. I’m a rm from your employees and identify which will bring to light any showcase, however, is encouraging personally reinforces how important believer that everyone has a story to areas of improvement, take action systematic issues that need to be our subcontractors and employees our DEI initiatives are and how we tell and that we learn much more and measure progress along the way. addressed internally. to publicly highlight their own want the company to be seen in when we’re actively listening to what Show them that you’re committed experiences. ere’s no better way the community. Lastly, engage and people have to say. to addressing their concerns and to validate the eort we put into listen to your employees. Younger listening to their solutions to create DEI than to have our employees employees will communicate their and project partners share their expectations more openly, but the experiences working with Clayco. more mature employees can more easily ensure that the eorts integrate Rudnick: For Leopardo, it’s within the company culture. about letting our actions speak for themselves. Our commitments to Shakir: Make sure you have DEI are not motivated by anything dedicated resources focused on Focus on what other than truly wanting to be a your DEI initiatives. Create a DEI remarkable place for all to work and program that has ongoing initiatives, for our customers to partner with. We such as an internship program matters most. recognize that companies are feeling and list of diversity suppliers that increasing pressure to speak out support your local community. I also Your People. publicly on social issues—especially recommend providing leaders and those rooted in DEI. To truly employees with a set curriculum and demonstrate and encourage progress training and creating milestones that The HR and payroll you must be fully committed to doing can be tracked throughout the year. the work behind the scenes. at’s partner you deserve. where our focus has been and we Rudnick: DEI cannot be showcase our diverse and inclusive exclusively owned by human culture through the progress we’ve resources. Every employee has a been making. responsibility to understand the company’s commitment to DEI and

“WE’RE AWARE OF THE DIFFICULTY AND CHALLENGES THAT DIVERSE EMPLOYEES ENCOUNTER AND WE PROVIDE MENTORS, RESOURCES AND SUPPORT AS NEEDED.” OTTO NICHOLS III, CLAYCO

Scan to learn more about What advice do you have for do their part to incorporate inclusive our all-in-one platform. organizations looking to step behaviors into how they show up and up their DEI efforts? interact with their peers, customers or visit paylocity.com/crains and their communities. DEI is not Nichols: e rst step is to conrm an event, but rather an ongoing that your eorts are genuine. It’s process that requires commitment, Copyright © 2021 Paylocity. All Rights Reserved. 0510A

P024_027_CCB_20210322.indd 27 3/16/21 9:09 AM 28 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS

æ`ÛiÀ̈Ș}-iV̈œ˜ CLASSIFIEDS To place your listing, contact Claudia Hippel at 312-659-0076 or email [email protected] .www.chicagobusiness.com/classi eds

BUSINESS FOR SALE CAREER OPPORTUNITIES OWN A SUCCESSFUL OPERATING SOFTWARE ENGINEER Car Wash, Detail Shop & Parking Facility (Citadel Enterprise Americas LLC– Chicago,IL) in Wilmette Illinois. Great location & Dsgn, dvlp, test & deploy next gen software customer base. Motivated seller! solutions for research, trad’g & bus ops EMAIL: John at [email protected] activities across the fi rm. F/T. Reqs a Master’s degree (or foreign equiv) in CS, Eng or rel fi eld. Edu, train or exp must include the following: end-to-end software dvlpmt; CAREER OPPORTUNITIES obj-oriented prog and dsgn; C, C++, Python, C# or JavaScript; data structures and ANTHEM, INC. seeks ENGINEER SENIOR algorithms; and Distrbtd Computing, Nat in Chicago, IL to developer components Lang Processing, Machine Learning, Platform to enhance company’s software platform, Dvlpmt, Networking, Systems Dsgn or Web frameworks, and services. Apply at

Dvlpmt techniques. Resumes: AUTHORITY EXPOSITION & PIER METROPOLITAN www.jobpostingtoday.com REF # 62136. Citadel Enterprise Americas LLC, Attn: ER/LE, McCormick Place is preparing to host meetings again with social distancing. 131 S Dearborn St, 32nd Fl, Chicago, IL 60603. JOB ID: 5141234. CAREER OPPORTUNITIES What Chicago must do to win back conventions ANTHEM, INC. seeks CAREER OPPORTUNITIES SYSTEMS ANALYST ADVISOR CONVENTIONS from Page 3 lished hosts. Indianapolis recently operations over the past few years, in Chicago, IL to review architecture PHYSICIANS NEEDED lured the National Confectioners As- the Metropolitan Pier & Exposition designs, and serve as a SME related to system Seeking Physicians for a Surgical Center in downtown’s dynamic dining and sociation’s annual Sweets & Snacks Authority reported a record high design and performance. Apply at North West and Western Suburbs of Chicago. www.jobpostingtoday.com REF # 40562. entertainment options—key to Expo out of Chicago because of the $51.4 million in operating losses for ANESTHESIOLOGY • ENT pandemic for the rst time ever this its McCormick Place unit during its INTERVENTIONAL RADIOLOGY helping boost attendance at many PAIN MANAGEMENT • UROLOGY events—have been badly stung by summer, though it’s scheduled to re- 2019 scal year. a crisis that has hammered restau- turn to McCormick Place next year. MPEA, which owns and operates CAREER OPPORTUNITIES PLASTIC SURGERY • GYNECOLOGY Contact Us: rants, hotels and downtown’s fa- e longer it waits to bring back McCormick Place, has asked state BRAVIANT, LLC seeks CELL: 847-533-8772 • OFFICE: 847-255-7400 mous shopping corridors. conventions at full strength, the lawmakers to restart a previously DIRECTOR OF PRODUCT MANAGEMENT [email protected] • veras@o cegci.com And with other cities forging more risk Chicago faces in losing used $15 million annual fund for In Chicago, IL. Defi ne the product ahead with plans to expand their events it may have a hard time get- the next ve years that could subsi- development roadmap for Braviant and convention centers despite the ting back, says Don Welsh, who dize event organizers’ rent and other manage the delivery of roadmap items CAREER SERVICES through the product development lifecycle. headwinds created by the pandem- spent ve years leading city tourism COVID-related costs. Apply @ www.jobpostingtodaycom #63594. CEO COACHING ic, one of the only certainties is that bureau Choose Chicago before be- MPEA CEO Larita Clark cited Experienced service business CEO city and McCormick Place o cials coming CEO of Destinations Inter- ramped up incentives from com- Adding 3 new clients will need to bolster recruitment and national, an association for conven- petitors like Orlando, Fla., which has CAREER OPPORTUNITIES Monthly 40 min zoom sessions retention strategies to reignite one of tion and visitors bureaus. hosted almost 50 events at its con- Call 847-542-6113 the state’s most important economic vention center during the pandem- GRUBHUB HOLDINGS, INC seek engines. ‘BE READY AND OPEN’ ic, and Fort Lauderdale, Fla., which DATA SCIENTIST I MARKETING “We know the market has been “e rst thing Chicago has to do is oering $10 million in free rent. in Chicago, IL to collaborate with other Chicagoland’s latest stakeholders to develop models of customer business news and events. competitive and is going to get more to get back in the game is be ready e agency “must be realistic,” Clark behavior. Apply at jobpostingtoday.com so,” says Heywood Sanders, a profes- and open for business. With every told legislators during a March 18 Ref: 95220. ChicagoBusiness.com sor of public administration at the day it’s delayed, it’s giving anoth- virtual meeting. “e meeting and University of Texas at San Antonio er destination an opportunity,” he events industry is more competitive who studies the nancial perfor- says. “I don’t think customers want than ever.” mance of convention centers. to leave, but they can’t aord not to For now, MPEA is making new McCormick Place has plenty of look at other options.” investments to try to adapt to what inertia on its side to compete for Kate Campbell, senior director at could be post-COVID norms. It has OUR READERS ARE post-COVID business. It has bur- event planning rm HelmsBriscoe, spent the past couple of months 125% MORE LIKELY nished its image for decades as a says she thinks Chicago’s events building a production studio at the top destination for conventions and industry will recover as well as that Arie Crown eater in the venue’s TO INFLUENCE trade shows with its physical size, of any other city, though some ear- Lakeside Center building that event OFFICE SPACE the allure of the city to attendees ly signs suggest otherwise. One of organizers will be able to use to and how easy it is to get to Chicago her clients that historically brought broadcast virtual portions of their DECISIONS through one of the world’s busiest about 1,200 attendees to its annual meetings. airports. event at McCormick Place recently at might help them retain busi- e venue has also been a lead- asked her to explore other markets ness as event organizers look for help er in health-focused updates to out of worry that attendees may be staging both in-person and virtual its halls, earning a gold-standard wary of going to Chicago. events. But it also comes with the accreditation for cleaning and She argues larger events like concession that fewer people may disinfecting facilities. And event major trade shows will come back be coming to the city to support the consultants say its calendar may strong—“people miss those,” she local hospitality sector, says George be buttressed for the rst couple says—lifting McCormick Place as Fenich, a professor in the school of post-pandemic years by events that one of the only convention centers in hospitality leadership at East Caro- were forced to cancel in 2020 but re- the country big enough to host some lina University who does consulting scheduled for future dates to avoid of them. But smaller and midsize work for convention centers and city cancellation penalties. meetings and conventions will be visitors bureaus. Attendees at con- But the threat of Chicago’s events more likely to include bigger virtual ventions and trade shows typically business eroding is real. COVID is components. at could hurt Chi- account for about 20 percent of all likely to accelerate a long-running cago and McCormick Place, which hotel rooms rented downtown each trend of fewer, smaller events at justied using taxpayer dollars to year, according to recent Choose McCormick Place and other large build 10,000-seat Wintrust Arena on Chicago estimates. convention centers, Sanders says. the convention center campus a few “Municipalities put resources into e Near South Side venue hosted years ago as a key to competing for convention centers to draw peo- Find your next 50 conventions and trade shows that smaller events. ple who will spend money and stay corporate tenant or leaser. collectively drew about 825,000 at- More competition for events like- in hotels and eat,” Fenich says. He tendees in 2019, roughly two-thirds ly means oering more incentives, admits it’s still unclear whether the of the totals two decades ago, ac- reducing rent or nding other ways rise of virtual events will cannibalize cording to his research. to save event organizers money, po- some in-person attendance or sup- at dilution was caused most- tentially adding more red ink to the plement it, “but to whatever degree ly by emerging meeting sites like budget of a convention authority a convention has a virtual compo- Nashville, Tenn., Columbus, Ohio, that needs all the revenue it can get nent, the people doing it virtually Connect with Claudia Hippel at and Austin, Texas, developing and to oset growing operating losses at aren’t spending money in the com- [email protected] for more information. expanding convention centers and the convention center itself. Relying munity. at’s a real issue moving picking o events from well-estab- more on its hotel business to fund forward.”

P028_CCB_20210322.indd 28 3/19/21 2:42 PM CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 29 How Chicago became the w THE CAPITAL OF BIG WEED Chicago is home to more of the biggest publicly traded marijuana companies, measured by annual revenue or market value, than any other U.S. city. capital of the pot business 2021 REVENUE ESTIMATE MARKET CAPITALIZATION WEED from Page 1 guratively a bridge between all Curaleaf $1.26 billion Wakefield, Mass. Curaleaf $10.97 billion Wakefield, Mass. the capital on the East Coast and leader in a fast-growing new in- the legacy (cannabis industry) on Verano $857 million Chicago Green Thumb Industries $7.93 billion Chicago dustry that’s generating jobs and the West Coast. To succeed in this Green Thumb Industries $834 million Chicago Trulieve $6.86 billion Tallahassee, Fla. wealth. GTI, Cresco and Verano industry, you have to understand each is expected to do more than what’s going on on the East Coast Trulieve $810 million Tallahassee, Fla. Verano $6.72 billion Chicago $800 million in sales this year. and on the West Coast.” Cresco $805 million Chicago Cresco $5.22 billion Chicago Each employs more than 2,000 Illinois is an unlikely hotbed for workers, with hundreds of them weed. But in 2013, it was among Columbia Care $490 million New York Ayr Wellness $2.29 billion New York in Illinois. Investors and employ- the rst states to legalize medical Harvest Health & Wellness $378 million Tempe, Ariz. Columbia Care $2.15 billion New York ees have made millions, and they marijuana in what became known could make even more if shares of as Marijuana 2.0, which relied on Ayr Wellness $377 million New York Jushi $1.69 billion Boca Raton, Fla. these companies become listed on strict regulations and a limited Jushi $216 million Boca Raton, Fla. Planet 13 $1.30 billion Las Vegas major U.S. exchanges, as appears number of licenses. increasingly likely. “We wrote a very tight bill,” says Acreage Holdings $216 million New York 4Front Ventures $793 million Phoenix Keeping the lead will be a chal- Bill Haine, a former state sena- lenge. Because marijuana is illegal tor and prosecutor from down- Sources: Yahoo Finance, Crain’s reporting under federal law and has rolled state Alton, who played a key role out state by state, the companies in writing the Illinois legislation. enjoy well-protected markets. “ere was a lot of opposition from than traditional sources. GTI, Cres- After winning licenses, Chica- cannabis companies, as well as National legalization—or the in- law enforcement and people who co, Verano and PharmaCann were go-based companies raised even advertisers and marketers in other dustry’s sheer growth potential— were suspicious of the whole idea adept at raising money from fam- more cash to fuel expansion. In industries, and provides them with could draw in giant consumer of marijuana.” ily oces, many of them in their 2018, GTI and Cresco were among consumer data. “e industries products companies and institu- backyard. ey also were good at the rst U.S. companies to go pub- want to understand each other.” tional investors, triggering a wave RESTRICTIONS writing license applications. Both lic in Canada. Verano joined early e marijuana business is still of mergers and acquisitions that Police and prosecutors didn’t were critical to success. this year. A fourth company, led in its infancy. e regulated ef- could swallow up Chicago’s indus- want the sort of loose qualica- Two important things happened by former Cresco co-founder Joe doms of individual states, which try leaders. tions to get medical-marijuana next. Under Gov. Bruce Rauner, Caltabiano, Choice Consolidation, have sheltered edgling compa- For now, they’re on top, thanks cards that were seen in California who opposed legalized cannabis raised $172 million in Canada to nies from global giants, could be to timing and luck, both good and and Colorado. Restrictions in Il- but inherited the medical-mari- acquire U.S. cannabis companies. undone if the federal government bad, that propelled several early linois required a doctor’s recom- juana program, the Illinois market It also helped that Illinois com- legalizes marijuana nationally. winners of licenses here to be- mendation and ngerprinting by grew slowly. Illinois pot entrepre- panies were led by entrepreneurs Experts say outright legal- come major players in the indus- police. neurs had to look elsewhere for who came from traditional Chica- ization seems unlikely anytime try. Although West Coast compa- Applicants, meanwhile, were growth. go industries, such as real estate, soon, given the closely divided required to submit de- “e Illinois program didn’t get restaurants, pharmaceuticals, U.S. Senate, but they expect a tailed applications, in- o to a good start,” says Cresco law, lending, hedge funds and wave of consolidation that will “PEOPLE NEEDED MONEY TO MEET ALL cluding three years of Labs CEO Charlie Bachtell. “While trading. at corporate and nan- reshape the industry is coming. tax returns from their the idea of creating something that cial experience came in handy. Booze giant Constellation Brands THE REQUIREMENTS. THAT REQUIRED investors. ey deliv- went outside the state of Illinois “Once the licenses were awarded, already made a big investment in CAPITAL. THE MONEY IS IN CHICAGO, ered thousands of pag- initially sounded interesting, it be- the expectations put on operators Canadian weed company Canopy es in bankers’ boxes to came a necessity. We were think- by regulators were higher,” Khalat- Growth. Others are expected to NOT DOWNSTATE.” Springeld. “We lled ing: is might not work. We have bari says. “Illinois didn’t create new follow as restrictions ease and the up a small U-Haul to diversify the company and get agencies, unlike other states. at $20 billion U.S. market grows. Bill Haine, former state senator truck with boxes,” re- into other markets. Illinois could lends itself to companies being pro- “ere will be tremendous con- calls Dina Rollman, se- fail.” fessional and innovative.” solidation,” says Andy Grossman, nies dominated the early days of nior vice president for government Cresco and its peers quickly head of investor relations for GTI. the industry, those in Illinois have and regulatory aairs at GTI. won or acquired licenses in other RECRUITING “Hopefully, we have enough time ourished in the more heavily reg- Inadvertently, the application states, which patterned their medi- Marijuana companies in Chi- to build out a sustainable platform ulated and capital-intensive phase process became another road cal-marijuana programs on Illinois’. cago have begun recruiting se- that can compete with these com- that followed. Medical marijuana leading to Chicago, Haine says. “We were able to immediate- nior talent from big consumer panies because they will come.” is legal in 36 states, and recreation- “People needed money to meet all ly go to New York and apply and packaged goods companies in the Pam Altho, executive director of al use is allowed in 15. the requirements. at required get a license, and then Maryland,” food and beverage industries. the trade group Cannabis Business “Chicago has been at the cen- capital. e money is in Chicago, says Jeremy Unruh, senior vice “e Midwest has a ton of CPG, Association of Illinois, adds, “is ter of the cannabis industry,” says not downstate.” president for public and regula- beverage and liquor companies,” industry is going to change dras- Alan Brochstein, founder of Hous- Because marijuana is illegal un- tory aairs at PharmaCann. “After says Chad Bronstein, CEO of Fyl- tically over the next ve to seven ton-based 420 Investor, which der federal law, companies had New York, we realized there was a lo, a Chicago software startup with years. I would like to hope Chicago covers cannabis companies. “It’s to rely on private investors, rather land grab going on.” about 130 employees that serves is still a center of the industry.” Rent-back deals become common in fast-moving Chicago housing market RENT-BACKS from Page 3 vision to the contract that lets them for a few months but declines to ents who were so unsettled by how they’d have somewhere to land stay in the house as renters for a put them in touch with a reporter. fast buyers were interested in their and in part as a strategy for the asking price. In Fox River Grove, specied time after the sale closes. She’s had two other sellers require house last fall that they pulled it purchase of their next home. a house on Bridle Path Lane went In Wilmette, @properties agent rent-backs from the buyers so far o the market. Once they had e Krogmans had lost bidding up for sale Feb. 2 at $525,000, got Laura Fitzpatrick represented cli- this year. bought their downsizing condo, wars on two homes by putting in a buyer’s contract three days later ents who planned to sell a six-bed- Real estate attorneys usually they put their house on Saratoga their oer a home-sale contingen- and sold in March at 2.5 percent room house on Elmwood Avenue. advise buyers against rent-backs, Avenue back on the market in late cy, which gives the buyers time to over the asking price. ey wanted to strike while the largely because of the liability January. It went under contract in sell their current home. “In this A quick sale makes some sell- market is hot, but also hoped to involved. But “when things are three days and sold March 15 for market, less than 2 percent of con- ers “apprehensive because they’re stay in the home until the end of happening this fast and you feel $940,000, which was $1,000 above tracts go to buyers with home-sale afraid they won’t be able to nd the school year. like you won’t have anywhere to their asking price. contingencies,” Julson says, citing a place to go by the time the sale Fitzpatrick put the house on the go, people are doing it,” says Ma- Michels had another listing, on statistics that Midwest Real Estate closes,” says Deb Julson, the Keller market Feb. 11, priced at just un- rio Greco, a Berkshire Hathaway Lee Avenue, that also hooked a Data compiles on MLSConnect for Williams Success Realty agent who der $1.5 million and with a note to HomeServices Chicago agent. His buyer in three days. at kind of agents. She says she thought that if represented the Krogmans’ house, agents that the sellers would want clients who did a rent-back this speed “is exhausting for the agent,” the Krogmans closed their sale and which sold at the full $575,000 ask- a rent-back agreement. spring request that he withhold she says, and as word gets out to could thus make an all-cash oer, ing price. “No problem,” Fitzpatrick says. the details. potential home sellers, “it scares they’d get the house they wanted. Agents in the city and suburbs “We got seven oers, and all sev- some of them, and they don’t want And they did, Lisa Krogman says. say the swift pace of sales means en buyers were OK with those CUTTING STRESS to put their house on the market.” Shortly after they moved into their their sellers often aren’t prepared terms.” e house went under e least anxious way to pre- Julson, the listing agent on the Airbnb townhouse, they put a cash to jump to the next home right contact in ve days, and the sale pare for a quick sale, of course, is one-day sale in Hawthorn Woods, oer on a house in Kildeer. e away, so they’re using half-steps. closed March 11 at 5 percent over to have another home lined up. was the one who encouraged her strategy worked: ey’re sched- ese include Airbnb and rent- the asking price. Fitzpatrick says Patti Michels, a Baird & Warner clients, the Krogmans, to look uled to close on that purchase at backs, where the sellers add a pro- her clients will be in the house agent in Downers Grove, has cli- for an Airbnb. at was in part so the end of March.

P029_CCB_20210322.indd 29 3/19/21 2:35 PM 30 MARCH 22, 2021 • CRAIN’S CHICAGO BUSINESS Morgan Park house steeped in local lore up for sale Two wall safes in the home on Seeley Avenue haven’t been opened since it was owned by the family of a man linked to the 1919 race riots and midcentury mob violence

BY DENNIS RODKIN of Ragen’s Athletic & Benevolent ose safes remain locked to Association, also known as Ra- this day, 66 years after the Ragens A house for sale in Morgan Park gen’s Colts. e group was strong- sold the house. comes with a few puzzles that date ly implicated in the race riots of A second potential for un- to the time it was owned by a man 1919, where 38 people died and at earthing secrets is behind a bolt- with links to the bloody 1919 race least 1,000 Black families lost their ed-on wall panel in a bathroom. riots and the Capone-era mob. homes. According to the govern- Michicich says the family was e four-bedroom house, built ment-sponsored postmortem of told there’s a tiny room behind in 1915 on Seeley Avenue, was list- the riots, “e Negro in Chicago,” it, where a table and chair were ed March 10, priced at $650,000 “Ragen’s Colts were frequently screwed to the oor to prevent and represented by Laura Mich- identied with lawlessness and someone hiding inside from inad- icich of Berkshire Hathaway specic clashes before and during vertently moving the furniture and HomeServices Chicago. Her par- the riot. ey are typical of the revealing their whereabouts. ents-in-law, Marino and Jacque- gangs and ‘athletic clubs’ which Despite owning the home for 44 lynn Michicich, bought the house were responsible for much disor- years, “we haven’t checked to see in 1977, and their son Mark is now der, including attacks upon Ne- what’s back there,” Michicich says. selling it. groes.” One relic of the old days that

e puzzles in the house are Ragen’s Colts got into bootleg- isn’t hidden is a pair of miniature CHICAGO HOMESERVICES HATHAWAY BERKSHIRE relics from the years when it was ging during Prohibition and was delivery chutes the size of a liquor The puzzles in the Morgan Park house are relics from the years when it was owned by James Ragen, owned by James Ragen, a pub- eventually subsumed into the Chi- bottle on the exterior of the house, a publisher of racing news who died in 1946. The four-bedroom house was listed March 10. lisher of racing news who died cago outt. where someone could surrepti- in 1946. Ragen allegedly died tiously put a bottle “and it would meticulously scraped of layers of has a hayloft, Michicich says. of mercury poisoning while he UNEARTHING SECRETS end up inside,” Michicich says. paint by Mark Michicich’s grand- It’s from that garage that James was hospitalized after being shot It’s not clear from public records Aside from these intriguing fea- mother, Peg Mungovan. Ragen drove his car in April 1946, during a gun battle between his when James Ragen bought the tures, there are also handsome ar- DeMoney designed dozens of only to be pursued at 50 mph bodyguards and would-be assas- house from its original owners, chitectural touches in the house, houses in Oak Park’s Gunderson down the residential street by two sins at State Street and Pershing but he lived there for the 1940 cen- which was designed by Frank Historic District, Logan Square, men in another car. He later told Road. Events that led up to the sus, and his family sold it in 1955, O. DeMoney. e exterior is red East Gareld Park and elsewhere a reporter: “is was an attempt gun battle included Ragen al- nine years after he died. e fami- brick with a green tile roof and in the city. According to his obit- to kill me. e syndicate wants to legedly trying to talk to the FBI ly who bought it sold the house to an arched entryway on the front uary, DeMoney also designed the take over (my business). Last week about the mob’s inuence in the Michiciches in 1977 and told porch. Inside are large formal Hiawatha train and several funeral someone telephoned my wife that, gambling. them, according to Mark Michi- rooms, stained-glass windows and chapels. if I didn’t quit business, I’d be in a Decades earlier, Ragen and cich, that they had never managed a staircase whose beautiful carved Behind the house is the garage. con.” Two months later was the his brother Frank were leaders to open the Ragens’ two wall safes. wood banister and spindles were Originally built for carriages, it still gun battle that preceded his death. CRAIN’S CHICAGO BUSINESS • MARCH 22, 2021 31 Arts & Crafts home stands out in historic district Built in 1906 on Hawthorne Place in Lakeview, this house retains the charm of its original era after a 21st-century rehab BY DENNIS RODKIN

EVEN ON A STREET where virtually every house was built to be a show- piece, Cece and Greg Browne’s house stands out, with an Arts & Crafts facade that features double porches, downstairs and upstairs. Built in 1906, the Brownes’ house is one of a dozen on Hawthorne Place, a short street in Lakeview between Lake Shore Drive and Broadway. It’s a landmark district built mostly in the late 19th and early 20th century. “WE FOCUSED Twenty-one years ago, when the couple had one child and more on the way, they ON RETURNING bought this house from a longtime owner and launched a complete rehab of the interi- IT TO ITS GLORY.” or, retaining period details like stained glass Greg Browne windows and columns that frame entrances to rooms and complementing them with new nishes that evoke the home’s original style. “We focused on returning it to its glory,” says Greg Browne, who’s in banking. Cece Browne is in commercial real estate. “We loved it as an old-style house that we could modernize.” Now, after raising three kids in the ve-bedroom home, the Brownes plan to downsize. ey’ll put the home on the market April 1, with an asking price of just under $2.15 million and represented by Kim Kerbis of @properties.

MORE PHOTOS ONLINE: ChicagoBusiness.com/residential-real-estate VHT STUDIOS PHOTOS STUDIOS VHT

HOW TO CONTACT CRAIN’S CHICAGO BUSINESS Vol. 44, No. 12 – Crain’s Chicago Business (ISSN 0149-6956) is published weekly, except for the last week in December, at 150 N. Michigan Ave., Chicago, EDITORIAL ...... 312 649 5200 CLASSIFIED ...... 312 659 0076 IL 60601-3806. $3.50 a copy, $169 a year. Outside the United States, add $50 a year for surface mail. Periodicals postage paid at Chicago, Ill. Postmaster: CUSTOMER SERVICE ...... 877 812 1590 REPRINTS ...... 212 210 0707 Send address changes to Crain’s Chicago Business, PO Box 433282, Palm Coast, FL 32143-9688. Four weeks’ notice required for change of address. © Entire ADVERTISING ...... 312 649 5492 [email protected] contents copyright 2021 by Crain Communications Inc. All rights reserved. One year ago, our lives dramatically changed. For many in Together, we’ll build Chicago back our region, COVID-19 has disrupted our jobs, education, stronger than before. budgets, and access to healthcare. Though it’s a new year, our neighbors still need our help. Make a gift online today at We face many hurdles as we work to reverse the economic impact of the pandemic, but with your support, we can move LIVEUNITEDchicago.org/Recovery-March from pandemic response to recovery. Your donation will help 9RMXIH;E]HIPMZIVGVMXMGEPVIWSYVGIWXSRSRTVSƤXSVKERM^EXMSRW on the front lines of the crisis so that our neighbors can easily access food, housing, and healthcare.

21cb0106.pdf RunDate 3/29/21 FULL PAGE Color: 4/C