BUILDING A REGIONAL FRAMEWORK A View of Economic Activity northeastern illinois planning commission The future of northeastern Illinois, which will grow by more than 1.7 million EXECUTIVE COMMITTEE residents over the next 28 years, will be shaped by many thousands of Herbert T. Schumann Jr. individual choices about where to live, work, and do business. These President personal decisions will impact each other as residents seek to move close Rita R. Athas to jobs, and businesses close to their suppliers, workers, and customers. Vice President The future will be influenced by decisions about investment and regulation by the region’s 1200 local governments and state and federal agencies. Michael K. Smith Secretary Will these public and private choices reinforce or undermine each other? Edward W. Paesel Will the decisions move us toward the future we want? Ensuring that they Tr e a s u r e r do is the essence of NIPC’s comprehensive planning program, entitled Alan L. Bennett Common Ground: A Blueprint for Regional Action.The Commission’s broad Vice President for Planning goal in undertaking Common Ground is to help the region develop a James C. Berg shared vision for its future, identify common issues and concerns, and Vice President for Water Resources make mutual commitments to address them. Jerry Butler Past Commission President Increased public understanding of and involvement in the regional Charlie A. Thurston planning process is critical to the success of Common Ground.This Past Commission President series of publications, Building a Regional Framework,is designed to educate the public about particular issues and spark greater public input Ronald L. Thomas Executive Director into the regional planning process. Other publications in this series have assessed particular policy tools COMMISSIONERS needed to accomplish the goals of Common Ground.This report, "A View Appointed by the Governor of Illinois of Economic Activity in Northeastern Illinois," describes the transformation James C. Berg of the region’s economy during the past several decades. It discusses the Joseph F. Ligas challenges facing us in the rising global economy, and asserts that a strong Edward W. Paesel link exists between regional economic vitality and good quality of life for all Charlie A. Thurston communities in northeastern Illinois. Appointment Pending The Building a Regional Framework series is just one step in NIPC’s effort Appointed by the Mayor of Chicago to spur public participation. In the coming months, we will continue to Miguel d”Escoto sponsor public forums and workshops to provide greater public involvement Commissioner, Department of Transportation in determining a vision for our shared future. We look forward to your reaction to the ideas presented in these publications and your participation Rita R. Athas in our new, community-based planning process. Director of Regional Programs Patrick J. Levar Alderman, 45th Ward, Chicago Ed H. Smith Alderman, 28th Ward, Chicago Mary Ann Smith Ronald L. Thomas Herbert T. Schumann Jr. Alderman, 48th Ward, Chicago Executive Director President Contents Elected by the Assembly of Mayors Alan L. Bennett,Trustee, Village of Elmwood Park Richard A. Clark,Trustee, 2 Village of Lakewood Our Region’s Diverse Economy Kyle R. Hastings,President, Village of Orland Hills 5 Global Economy and the Regional Al Larson,President,Village of Schaumburg Economy Mark Ruby,Mayor,Village of North Aurora Rae Rupp Srch,President, Village of Villa Park 6 Subregions and Economic Areas Peter M. Sexton,Clerk, Village of Lake Bluff Michael K. Smith,President, 9 How Economics and Community Village of New Lenox Life Converge Appointed by the County Board Chairmen Jerry Butler, Member, 10 Roles for Regional Groups Cook County Board of Commissioners Herbert T. Schumann Jr., Member, 13 Resources and Acknowledgments Cook County Board of Commissioners Appointment Pending, Member, Cook County Board of Commissioners James D. Healy, Member, DuPage County Board Don Wolfe, Member, Kane County Board ABOUT THE NORTHEASTERN ILLINOIS Diana O’Kelly, Member, PLANNING COMMISSION Lake County Board NIPC was created by the state legislature in 1957 to lead comprehensive Ann Gilman, Member, planning for the northeastern part of Illinois. NIPC is committed to McHenry County Board finding regional consensus on policies and plans that promote the sound Terri A. Wintermute, Member, and orderly development of northeastern Illinois. It serves the local Will County Board governments and citizens of the region by providing information, fostering regional cooperation in the comprehensive planning process, Appointed by the Board of the Regional Tr ansp or t ation Authority developing policies on evolving areawide issues, and seeking maximum Dwight A. Magalis local participation in its deliberations. Appointed by the Board of the Chicago Tr ansit Authorit y Appointment Pending Appointed by the Board of Metra Lowell Anderson Appointed by the Board of Pace Cheryal Callahan Appointed by the Board of the Metropolitan Water Reclamation District of Greater Chicago Patricia Young Appointed by the Board of the Illinois Association of Park Districts September 2002 Judy Beck Appointed by the Board of the This report was funded in part by the U.S. Department of Transportation through a Chicago Park District grant from the Illinois Department of Transportation; by the State of Illinois through Gerald Sullivan a grant from the Illinois Department of Commerce and Community Affairs; and by Appointed by the Board of the Illinois voluntary contributions from local governments in northeastern Illinois. Association of Wastewater Agencies Wallace D. VanBuren northeastern illinois planning commission 1 Our Region’s Diverse Economy “Here I am living in a regional economy, when I thought I just lived in Des Plaines!” Even if our daily lives are centered in a neighborhood or town, all of us participate in a regional economy. A family may patronize the local shops on The economy of northeastern Illinois is large Main Street where they can purchase mer- and diverse, well able to compete in the global chandise that was made in Illinois,in another economy. The larger nine-county region is the state, or across the ocean. At the grocery third largest regional economy in the United store, shoppers can buy peaches from States. If U.S. metropolitan areas were nations, Michigan or kiwi from New Zealand. A family then metropolitan Chicago's economy would wage-earner may work close to home in a rank as the 18 th larges t in the world, according nearby factory, but his or her paycheck is a to a recent report for the U.S. Conference of result of the factory’s profits from selling its Mayors.The nine-county area's production of products all over the world. The children $348.6 billion in goods and services in 2001 attend the public school down the street, but placed it larger even than the economies of the school employs teachers who commute Ta i w a n a n d Russia. .1 from different towns. How are we to understand this huge regional The grocery store, the factory and the school economy? Metropolitan areas serve as are centers of economic activity, creating clusters for production of goods and services, wealth through the production, distribution and and northeastern Illinois is very diverse in use of goods and services. These activities productive activity. Many industries have high cross the jurisdictional, geographic and cultural concentrations of employment and capital borders of northeastern Illinois. investment here.These specializations show where the region enjoys advantages in trade The economic area of northeastern Illinois with other regions throughout the world. encompasses many communities and extends beyond jurisdictional lines. It is linked through Northeastern Illinois is an important service the firms and households that supply and center for firms in the greater Midwest region purchase goods and services from each and the area is a major manufacturing center other. These links include: for national markets. While the immediate flow ➣ a metropolitan-wide job market that of trade is largely concentrated in Illinois, creates flows of workers crossing many significant trade also occurs outside Illinois jurisdictional lines. with approximately: ➣ ➣ dense employment areas that attract 60% of the area’s goods and services businesses, commerce and shopping. consumed in Illinois, ➣ ➣ connections through roads and rails, 30% exported to other states, and telecommunications bands, and a local ➣ 10% exported overseas. media market that shapes common This vast economic region is not bounded by perspectives. any single political jurisdiction, but rather it Ta k e n t o gether, these features create a extends and flows far beyond them.2 powerful regional economy that is the underlying source of wealth for the residents 1 The nine counties include the NIPC planning area (Cook, DuPage, Kane, Lake, McHenry and Will Counties), and Kendall, of northeastern Illinois. DeKalb, and Grundy counties. 2 We shall consider the six-county NIPC planning area for purposes of this report, giving an overview of the communities and industries that make up the regional economy of the area. In actuality, the region’s market extends beyond these boundaries and into Indiana and Wisconsin and the entire Midwest. 2 BUILDING A REGIONAL FRAMEWORK: A VIEW OF ECONOMIC ACTIVITY The economy is strongly tied to the traditional Ta b l e 1 Major Industries in Northeastern Illinois as Measured by mainstays of material goods production, Employment (1998) distribution and producer services. INDUSTRY NUMBERS EMPLOYED Manufacturing Sector: Food Manufacturing 52,790 Printing 40,282 Chemicals 42,409 These sectors continue to grow, adding work, creating new firms, and adapting Plastics and Rubber 45,061 new technologies. They send products to other markets and bring earnings Fabricated Metals 89,398 into the regional economy, fueling its growth. Machinery 57,710 Computers and Electronics 59,275 Ta b l e 1 s hows northeastern Illinois industries that employ workers in propor- Miscellaneous Manufacturing 28,452 tions well above national averages.