DOING BUSINESS WITH CHICAGO

Doing Business in Chicago

The world’s largest illuminated fountain, the credit for production of the first pinball machine, the 47,330 fire hydrants that line the sidewalks; this is not all that the city of Chicago boasts. As the country’s core for transportation and manufacturing, and as one of the leaders in the financial world, the business community of Chicago has strength in its diversity. The opportunities in each of the city’s business sectors make Chicago the ideal location for doing business.

Chicago is the largest city in the state of Illinois, the largest in the Midwest, and, with a population of nearly 3 million people located almost entirely in Cook County (a portion of the city's O'Hare International Airport overlaps into DuPage County), is the third-most populous city in the United States. The Chicago metropolitan area (commonly referred to as Chicagoland) has a population of over 9.7 million people in Illinois, Wisconsin and Indiana, making it also the third largest metropolitan area in the U.S. Adjacent to Lake Michigan, it is the largest city located on the Great Lakes and among the world's twenty-five largest urban areas by population. Chicago has been classified as an alpha world city for its worldwide economic and cultural influence.

Demographics

According to the census of 2005, the population of Chicago is 2,701,926, 48.1% of which are men, 51.9% women. Of the population, 778,234 (28.8%) are Hispanic, an increase of 2.8% from the year 2000 census. Hispanics make up the third largest ethnicity in Chicago; the remainder of the population includes Caucasian, African American, Asian, and Native American ethnicities, in descending order.

Almost half of the population (44.7%) falls between the ages of 25 and 54; according to the Federal Workforce Overview of 2004, approximately 77% of all people in the workforce fell within this age bracket. These statistics shine light on the advantages of being a business man or woman in Chicago, and more importantly, the growing business opportunities for Hispanics in this region.

Economy

Chicago has the third largest gross metropolitan product in the nation — approximately $442 billion according to 2007. The city has also been rated as having the most balanced economy in the United States, due to its high level of diversification. Additionally, the Chicago metropolitan area recorded the greatest number of new or expanded corporate facilities in the United States for six of the past seven years. In 2006, Chicago placed 10th on the UBS list of the world's richest cities.

Chicago is a major financial center with the second largest central business district in the U.S. The city is the headquarters of the Federal Reserve Bank of Chicago (the Seventh District of the Federal Reserve). The city is also home to three major financial and futures exchanges, including the Chicago Stock Exchange, the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange (the "Merc"), which includes the former Chicago Board of Trade (CBOT).

Manufacturing, printing, publishing, and food processing also play major roles in the city's economy. Several medical products and services companies are headquartered in the Chicago area, including Baxter International, Abbott Laboratories, and the Healthcare Financial Services division of General Electric. Moreover, the construction of the Illinois and Michigan Canal, which helped move goods from the Great Lakes south on the Mississippi River, and of the railroads in the 19th century made the city a major transportation center in the United States.

Chicago is also a major convention destination. The city's main convention center is McCormick Place. With its four interconnected buildings, it is the third largest convention center in the world. Chicago also ranks third in the U.S. (behind Las Vegas and Orlando) in number of conventions hosted annually. In addition, Chicago is home to eleven Fortune 500 companies, while the metropolitan area hosts an additional 21 Fortune 500 companies. The state of Illinois is home to 66 Fortune 1000 companies. Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims one Dow 30 company as well: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001.

Exports and International Trade

Illinois’s exports include a variety of industries, each of which is greatly contributed to by the business environment of Chicago. In 2006, the machinery industry (not including electrical machinery) was responsible for $11.79 billion in exports, computers and electronics $8.3 billion, chemicals $5.83 billion, transportation equipment $4.71 billion, and agriculture, food and kindred products $2.65 billion. Great exporting opportunities lie in these industries.

Chicago’s central, Midwest location allows exports to be equally split between Asia and Europe. To help both local firms and companies overseas facilitate international trade, many trade missions and expos are held in Chicago. The city’s numerous hotels and exhibition facilities hold some of the nation’s largest trade shows and conventions, earning Chicago the title of the Convention Capital. These trade shows exhibit products, raw materials and customers to better present business opportunities to overseas companies.

Business and Living Costs

Chicago is ranked number seven of the ten most expensive metropolitan areas of which to do business in the United States; the cost of doing business includes the cost of labor, taxes, energy, and office space. An index of $108.7 is slightly higher than the US average of $100. New York comes in at number one with an index of $135.7.

The relative price levels for consumer goods and services are measured by the cost of living index, and Chicago the seventh most expensive metropolitan area according to these standards. Chicago’s index of $110.5 is above the US average of 100. New York tops this list as well, with an index of $175.5.

Third on the list, only to New York and Los Angeles, for most business establishments in a city, Chicago has a total of $354,751 and is growing yearly. These businesses, whether old or new, give way to a multitude of opportunities in the area.

Transportation

Chicago is a major transportation hub in the United States. It is an important component in global distribution, as it is the third largest inter-modal port in the world after Hong Kong and Singapore. Additionally, it is the only city in North America in which six Class I railroads meet. Chicago is served by Midway International Airport on the south side and O'Hare International Airport, one of the world's busiest airports, on the far northwest side

These is just a glance of what you can find out in this great state.

Please find more information at:
www.wikipedia.com

City of Chicago Website
http://egov.cityofchicago.org/city/webportal/portalDeptCategoryAction.do?deptCategoryOID=536900094&contentType=COC_EDITORIAL&topChannelName=Dept&entityName=Planning+And+Development&deptMainCategoryOID=-536886126

Changing Hispanic demographics: Opportunities and constraints in the financial market
http://findarticles.com/p/articles/mi_qa3631/is_200308/ai_n9265008