Two-thirds of Chicago area jobs in the suburbs

The demise of Sears and its suburban headquarters, once famously downtown in a building that was the tallest in the world, does not mean that suburban jobs are disappearing:

Sears’ move to northwest suburban Hoffman Estates symbolized a trend: The economic ascendance of Chicago’s suburbs, which even in the early 1990s accounted for more than 60 percent of the region’s jobs.

At first glance, that dominance appears to be slipping as companies like McDonald’s make headline-grabbing moves back to the city from leafy suburban campuses.

But it would be wrong to point to Sears’ latest struggles, which eased Wednesday when the company’s chairman won a bankruptcy auction that prevented a liquidation of Sears, and conclude that the suburbs are down and out.

People working in the suburbs still provide two out of every three Chicago-area jobs, according to data provided by regional planners.

While the emphasis of this article is on the suburban Sears campus, the suburban jobs numbers stuck out to me. There are (at least) two ways to interpret the number that two-thirds of the jobs in the Chicago region are in the suburbs:

  1. Of course the majority of jobs in the Chicago region are in the suburbs: more than two-thirds of the region’s population lives in the suburbs. All those residents both help generate nearby jobs with their various consumer needs (from retail to food to building and construction) and help fill those jobs.
  2. This is a surprising figure. Chicago is a leading global city; how could so many jobs be in the suburbs when what really matters in the region is the strength of the Loop and nearby neighborhoods? Plus, it would be better if employers started in the city or moved back to the city to help create a strong base for the region as well as take advantage of the city’s economies of scale (including mass transit access) and cultural opportunities.

These figures are part of a larger trend that I think is underappreciated in the rise of American suburbs: the suburbs are jobs centers, not just a collection of bedroom communities. While the stereotypical American suburb is a community of subdivisions with occasional businesses, the suburbs are full of companies and firms doing all sorts of things. And it has been this way for decades.

Data centers in the suburbs

Data centers are important elements in the infrastructure of a Internet-based, networked world. So, it should not be a surprise to see them pop up in suburbs in the Chicago region:

Data center provider Element Critical is expanding into the Chicago market with the acquisition of two data centers in suburban Wood Dale, Illinois, the company announced today. The deal provides a third market for Element Critical, which currently has operations in Silicon Valley and Northern Virginia…

The two data centers the company has acquired in Chicago encompass 195,000 square feet of data center space. Wood Dale is in the suburban Chicago market, 17 miles west of downtown Chicago and two miles from O’Hare International airport. Element Critical did not identify the seller, but Sungard Availability Services is listed as operating two facilities in Wood Dale…

Last week CIM Group and fifteenfortyseven Critical Systems Realty (1547) acquired a data center at 725 South Wells in Chicago’s business district. The 66,000-square-foot facility was purchased from Digital Capital Partners, a wholesale data center provider. The building has 5 megawatts of capacity.

On Monday, New Continuum said that it has acquired its flagship data center at 603 Discovery Drive in West Chicago, Illinois. The company has been leasing the site since 2013, and was supported with financing by Post Road Group, a leading real estate bridge lender

I would guess that (1) very few Internet users think about data centers and (2) very few nearby residents could identify a data center from another kind of facility. For example, here is a Google Street View image of the Discovery Drive facility mentioned above:

DiscoveryDriveDataCenter.png

There are numerous good reasons to not widely broadcast what is taking place in such facilities – with similarities to urban buildings that house telecommunication centers – yet such buildings will increasingly become regular parts of urban and suburban landscapes.

Small Illinois town becomes intermodal facility and warehouse central; long-term benefits are not good

Elwood, Illinois is home to facilities of a number of important American companies but the small community experiences few benefits:

It’s hard to find anyone who will admit to it now, but when the CenterPoint Intermodal freight terminal opened in 2002, people in Elwood, Illinois, were excited. The plan was simple: shipping containers, arriving by train from the country’s major ports, were offloaded onto trucks at the facility, then driven to warehouses scattered about the area, where they were emptied, their contents stored. From there, those products—merchandise for Wal-Mart, Target, and Home Depot—were loaded into semis, and trucked to stores all over the country. Goods in, goods out. The arrangement was supposed to produce a windfall for Elwood and its 2,200 residents, giving them access to the highly lucrative logistics and warehousing industry. “People thought it was the greatest thing,” said Delilah Legrett, an Elwood native…

But this corporate valhalla turned out to be hell for the community, which suffered a concentrated dose of the indignities and disappointments of late capitalism in the 21st century. Instead of abundant full-time work, a regime of partial, precarious employment set in. Temp agencies flourished, but no restaurants, hotels, or grocery stores ever came, save for the recent addition of a dollar store. Tens of thousands of semis rumbled through Will County every day, wreaking havoc on the infrastructure. And as the town of Elwood scrambled to pave its potholes, its inability to collect taxes from the facilities plunged it into more than $30 million in debt…

According to the Will County Center for Economic Development, at least 25,000 tractor trailers a day come through the Intermodals. That amounts to three million containers annually, carrying $65 billion worth of goods. A staggering $623 billion worth of freight traversed Will County infrastructure in 2015 alone, roughly equivalent to 3.5 percent of the U.S.’s total GDP…

But when it comes to the long-term prospects for the region, optimism is scarce. Paul Buss’s son, who works as a building inspector in Joliet, told his dad there’s concern “these companies are gonna come in, they’re gonna build these buildings, and they’re gonna use them for however long they can get a tax break on them, and then they’ll move someplace else.” The threat of empty warehouses looms large.

The freight industry, composed of both railroads and trucks, has to be placed somewhere. The southern edge of the Chicago region is a logical place with close connections to major highways, cross-country railroad lines, airports, and both the Great Lakes and the Mississippi River as well as proximity to the third largest metropolitan area in the United States. And there are likely benefits to these companies and industries to have a concentration of facilities rather than scattering them across multiple communities and regions.

But, the article suggests we should not view the communities where these facilities are placed just as collateral damage. There are real consequences to the trucks and trains that ship all the goods we need on a daily basis. People’s lives are affected. Could the facilities should be placed outside of towns and away from residences as possible?

Perhaps the true test of all of this is whether the next town that is chosen or selects itself as the possible next facility center turns down the opportunity or they dive headlong into the same issues.

 

What it takes to run for local government positions in the Chicago suburbs

Getting elected to local suburban office may not require many votes but how do you become a candidate in the first place? A look at some of the steps in the Chicago suburbs:

Most suburbs — as well as school boards, library boards, fire district boards and park boards — require nominating papers to be filed from Dec. 10 to Dec. 17. A few towns like Elgin, Aurora and Naperville had early filing periods…

The number of signatures required to get on the ballot varies by race, the state board of elections says. For example, for library districts it’s at least 2 percent of the votes cast in the last election for library trustees, or 50, whichever is less. For nonpartisan village board positions it’s at least 1 percent, and for nonpartisan city council positions it’s a minimum of 5 percent of votes cast in the last election for those offices.

Candidates must file a statement of candidacy and a receipt showing they filed a statement of economic interest with the appropriate office (most will be with the county clerk’s office), Meyer said. The latter can be done online, but Meyer recommended first-time candidates do it in person. They can also sign a voluntary oath to the state constitution, he said…

Money is the biggest obstacle to running for office, said Audra Wilson, executive director of the League of Women Voters of Illinois. She estimated a strong campaign for a contested suburban city council or village board position could require close to $30,000. Direct mailers are the most significant cost, followed by hiring a campaign staff, she said.

File nominating papers, get signatures from local residents, file a statement of candidacy, gather money, and then run a winning campaign. And with the article suggesting “Just 31 percent of local races were contested in 2017 in Cook, DuPage, Kane and Lake counties,” it may be enough to just get on the ballot.

Based on these steps and numbers, does this suggest there are too many local government offices to fill? Even as Americans like local suburban governments, it may not be as effective if few suburbanites actually want to participate. Consolidating local government units – such as the push in Illinois to limit new governments and consider eliminating other units, albeit at a slow pace and some governments defend their existence – could address the issue but many wealthier suburbanites are probably unwilling to hand over control of their own communities to others.

Of Chicago region residents in poverty, 54% are suburbanites

One of the leading researchers on suburban poverty recently presented updated data about the Chicago region:

More than half the Chicago region’s low-income population — 54 percent — lived in the suburbs in 2017 — up from 39 percent in 2000.

Poverty can vary quite a bit from Chicago suburb to suburb:

The average poverty rate for the Northwest suburbs is about 8 percent. Poverty rates have grown unevenly across the region — about 17 percent in Carpentersville, roughly 15 percent in Elgin, 11 percent in Hanover Park and Wheeling, about 10 percent in Palatine and Prospect Heights and 6 percent in Schaumburg.

These are significant changes and differences. The future of many suburban communities may just depend on how they respond.

Why hasn’t the area south of Chicago developed into suburbia?

Two points of data hit me recently about the asymmetrical suburban development of the Chicago region:

1. I recently made a trip down I-355 from I-88 down to I-80. Once you are south of I-55, there is limited development. There are some signs of subdivisions and warehouses but still plenty of open land available.

2. I discussed the boundaries of the Chicago suburbs in a recent post and noticed on the map from the expert that the northern, western, and southeastern suburbs of Chicago extend far into the country but the southern suburbs do not go far. Indeed, suburbia goes further into Indiana or Wisconsin than straight south into Illinois beyond I-80.

Why is it that this area has not developed? In a region that expanded tremendously after World War II and that currently has need for affordable housing, why is this land relatively empty? A few quick hypotheses:

1. The area to the south and southeast of Chicago may have been more industrial earlier on. This would discourage residents from locating nearby. (On the other hand, residential locations close to work could be very valuable in such a large region where jobs and residents do not always line up.)

2. Given the history of race and ethnicity in Chicago and the region, these areas are associated with more black residents and whites wanted to live elsewhere (north suburbs, west suburbs, Indiana).

3. A cultural and economic mismatch between the area south of the city and the region. While Chicago expanded with its reach into the agrarian upper Midwest, the areas south of the city may have had stronger affinities with central Illinois and less urban areas.

4. These suburbs to the south are hesitant about approving development. In a region with little open land left for development (that has not been taken for green space by Forest Preserves or private landowners), this more rural feel gives these suburbs a unique feel. Adding hundreds of mass-produced homes may not be what these particular suburbs desire.

The social connectedness of DuPage County, IL to other locations

Data from Facebook in 2016 allowed researchers to look at where users’ friends are located. Here is the data from DuPage County, Illinois:

SocialConnectednessDuPageCountyIL

The researchers argue distance matter and there are some other broad patterns in the data:

Coastal cities like New York, Washington, San Francisco, Boston and Los Angeles do exhibit close ties to one another, showing that people in counties with similar incomes, education levels and voting patterns are more likely to be linked. But nationwide, the effect of such similarity is small. And the pull of regionalism is strong even for major cities. Brooklynites are still more likely to know someone on Facebook near Albany or Binghamton than in the Bay Area…

State lines are powerful boundaries in binding nearby places. For many counties, as the maps illustrate, the likelihood of friendship drops off sharply at state borders. And counties within a given state tend to be strongly connected to one another. This is particularly striking in Michigan, where counties near the Indiana and Ohio state line are more closely tied to Michigan’s Upper Peninsula than to out-of-state counties closer by…

History is another significant force in shaping these networks. Decades-old migration patterns can help explain why some distant counties are disproportionately connected today. Northern cities like Chicago and Milwaukee still retain close ties to Southern counties along the Mississippi River, where African-American workers who were part of the Great Migration starting a century ago left communities for industrial jobs in the North…

In other parts of the country, physical geography forms a kind of social barrier. Friendship links from Belmont County, Ohio, extend east but don’t cross the Appalachian Mountains in Pennsylvania or the Blue Ridge range in Virginia. In Scott County, Ark., friendships do cross state lines, into Oklahoma, Louisiana and Texas. But they don’t cross the Mississippi River to the east. In Nassau County, N.Y., the likelihood of friendship links declines steeply off Long Island…

Other county outliers in the data can be explained by distinct roles some communities serve: Onslow County, N.C., which is connected to much of the country, is home to Marine Corps Base Camp Lejeune.

Based on the map of DuPage County plus discussion of the broad patterns, here is what I notice about the Chicago collar county:

1. More ties in the other suburban counties and then within Illinois.

2. There are a number of Midwestern ties spread across adjacent states.

3. DuPage County has more distant ties to a few other places. I’m guessing Florida and Arizona show up as retirement destinations. Both Summit County, Colorado and Teton County, Wyoming show up – are these popular vacation destinations? (Both of these counties have relatively small populations.)

4. There are not many ties to the Northeast though other metropolitan areas show ranging from Seattle to Los Angeles to Las Vegas to Nashville.

On the whole, DuPage County is pretty wealthy and I would guess fairly mobile. The Facebook connections by location might support that though there are still many Chicago area and Illinois relationships.