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Chicago Sustainable Industries CHICAGO SUSTAINABLE INDUSTRIES INTRODUCTION: A BUSINESS PLAN FOR MANUFACTURING CITY OF CHICAGO RAHM EMANUEL, MAYOR chicagogo sustainable industries gy PhaseP One: A Manufacturing Work Plan for the 21st Century CONTENTS INTRODUCTION 3 STRATEGY ONE MAXIMIZE CHICAGO’S LOCATION 7 • Preparing Industrial Corridors for the Next Generation of Manufacturing • Refi ning the Calumet Corridor • Reinforcing Manufacturing Zoning • Managing Manufacturing Real Estate STRATEGY TWO LEVERAGE LOCAL LOGISTICS 15 • Perfecting Rail, Air Cargo and Port Infrastructure • Tracking Trucks • Daylighting Waterway Infrastructure STRATEGY THREE MAXIMIZE UTILITY INFRASTRUCTURE 21 • Providing Reliable Electricity • Ensuring Enough Broadband • Taking Advantage of Solar and Water STRATEGY FOUR LEAD THE MANUFACTURING COLLABORATIVE 27 • Finding the Workforce • Creating Industrial Parks • Growing SMEs • Regulatory Transparency APPENDICES 34 • Resources • Endnotes / References • Photographic Index • Acknowledgements Chicago Department of Housing and Economic Development Andrew J. Mooney, Commissioner Adopted by Chicago Plan Commission - November 2013 INTRODUCTION Chicago Sustainable Industries: A Business Plan for Manufacturing (CSI) is the result of a three-year collaboration by industry leaders and local government agencies on a comprehensive strategy to reinforce and expand Chicago’s manufacturing base. CSI’s fundamental premise, that successful markets build from their unique and distinctive assets, directly aligns with “A Plan for Economic Growth & Jobs,” released in 2012 by World Business Chicago under the direction of Mayor Rahm Emanuel. CSI refi nes the Growth & Jobs Plan by presenting additional City policies and strategies involving manufacturing, land use, public investment, partnerships and regulatory improvements to help ensure the sustainability and competitiveness of local manufacturers. Manufacturing is evolving at an unprecedented forces on business resources, infrastructure, land pace due to intense global competition and rapid use and sustainable industry standards throughout advancement in technology. While the dynamics 2011 and 2012 to discuss issues, collect and analyze of advanced manufacturing varies among private data and refine recommendations. The “CSI: A companies, the global economic landscape requires Manufacturing Work Plan for the 21st Century” local government to proactively support and facilitate served as a reference tool for the CSI steering production-oriented businesses. Chicago is home to committee and task forces. Published in 2011 by approximately 2,700 of these types of companies, HED, the Work Plan provided a critical snapshot 99 percent of which employ fewer than 500 workers. of the city’s physical assets, manufacturing sub- Known as small and mid-sized enterprises (SMEs), sectors, infrastructure, land use characteristics, and these companies are the primary focus of CSI. over-arching industrial strengths and weaknesses. Through a grant from the U.S. Department of As a formal plan prepared by the Department of Commerce Economic Development Administration Housing and Economic Development (HED) and (EDA), more detailed analyses was conducted on: adopted by the Chicago Plan Commission, CSI serves several purposes. It identifi es immediate strategies and actions that will positively impact Tax differentials between Chicago’s manufacturing SMEs. It also coordinates government agencies properties and those at other locations around shared goals; provides a framework for Models of trade association and sector-based infrastructure investment; offers a balanced partnerships that promote internationally competitive assessment of manufacturing’s role in the local workforce training economy; reaffirms the City’s commitment to Modern management frameworks for urban industrial production-oriented businesses; and broadens the parks and site development foundation upon which public- and private-sector Issues involving the creation of a new development initiatives can succeed. entity to prepare sites for manufacturing users Manufacturing jobs and associated wages and how CSI’s policies and strategies are based on several this information is being marketed to students and previous and current efforts to promote, protect, and parents (a list of these studies is included in the attract production-oriented businesses. In addition, appendices). HED convened a CSI Steering Committee and task CHICAGO SUSTAINABLE INDUSTRIES: A BUSINESS PLAN FOR MANUFACTURING 3 Another important resource for the development of for the CSI Business Plan’s core strategies. The the CSI Business Plan was World Business Chica- core CSI strategies leverage the cooperation of go’s Growth & Jobs plan, which identifi es key char- government agencies, educational institutions, and acteristics that drive the city’s and region’s growth manufacturing assistance organizations on behalf of and provides a framework for analysis, goals, and SMEs. The strategies seek to: economic development strategies based upon Chi- cago’s unique assets. In identifying the $53.9 bil- Maximize Chicago’s location by continuing to lion regional manufacturing sector as a key driver for protect and modernize areas that are specifically economic prosperity, the Growth & Jobs Plan noted built for manufacturing and related uses. that, to advance manufacturing, Chicago must focus Leverage local logistics by upgrading Chicago’s on innovation for products and processes, along truck, port, and river infrastructure to the level with an appropriately trained workforce. Research of service provided by the city’s rail and air indicated that Chicago-based SMEs would fl ourish infrastructure while incorporating the role of with more skilled workers, more research and devel- warehouse and distribution facilities. opment support, and a better perception of manu- Maximize utility infrastructure by addressing facturing among students, prospective employees, electric and broadband service issues within local and parents. Industrial Corridors while developing programs for Additional studies issued in February 2013 by enhanced power capacity and solar opportunities. the Center for Urban Economic Development Create a manufacturing collaborative by at The University of Illinois at Chicago and the engaging local government, manufacturers, Chicago Metropolitan Agency for Planning (CMAP) manufacturing assistance and workforce documented key regional policies that would organizations and educators. serve local and regional SMEs. Combined and CSI policies and action items are arranged according refi ned with other information and research, the to these four over-arching strategies. studies collectively provide a realistic foundation CHICAGO’S LEADING MANUFACTURING SUBSECTORS 2010 Gross Regional Product Subsector ($ millions) % of Output National Rank National Machinery Manufacturing $7,608 12% Food Manufacturing $7,174 12% Fabricated Metal Products $6,873 11% Primary Metal Manufacturing $3,423 6% 123 Plastics & Rubber Products $3,335 5% Manufacturing Electrical Equipment, $2,780 4% Appliances & Components Paper Manufacturing $1,871 3% Printing and Related Support $1,758 3% Activities Nonmetallic Mineral Product $902 1% Manufacturing Miscellaneous Manufacturing $3,909 6% Chicago MSA Manufacturing Output Source: World Business Chicago 4 CHICAGO SUSTAINABLE INDUSTRIES: A BUSINESS PLAN FOR MANUFACTURING PRODUCTION IN METROPOLITAN CHICAGO The Chicago metropolitan area In metropolitan Chicago, is one of the nation’s major manufacturing offers higher manufacturing centers, and wages than other industries. manufacturing has become a more important specialization of the In 2011, the average annual area over the last decade despite earnings in metropolitan Chicago large manufacturing job losses. manufacturing jobs were $67,168, about 16 percent above average In 2011, the Chicago metropolitan area annual earnings for all jobs in the had about 411,000 manufacturing metropolitan area. jobs, second only to metropolitan Los During the last two years, Angeles. Manufacturing’s percentage metropolitan Chicago gained of all metropolitan Chicago jobs manufacturing jobs more rapidly rose from 1.08 times the national than the nation as a whole. percentage in 2001 to 1.11 times that percentage in 2011. From the fi rst quarter of 2010, when The Chicago area specializes strongly manufacturing employment hit a low in 11 manufacturing sub-sectors, with point in both the metropolitan area moderately high technology industries and the nation as a whole, through more important in the region than the third quarter of 2012, the number very high technology industries. of manufacturing jobs increased by 5 percent in the Chicago area and 4 In 2011, moderately high technology percent in the entire United States. CHICAGO: STILL A industries in the Chicago area Current enthusiasm for local and MANUFACTURING accounted for 1.21 times their regional policies to strengthen percentage of all jobs nationwide, POWERHOUSE manufacturing in metropolitan while very high technology industries The United States accounts for roughly 19% of Chicago is well founded. in the metropolitan area made up less global manufacturing output. Within the nation, than the national average percentage the Chicago region is number two behind the Policy efforts should focus on of all jobs. Los Angeles area in total manufacturing gross industries in which the area already product. Almost half of all manufacturing specializes, on new industries that jobs in the Chicago metropolitan can be developed
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