An analysis Federal Reserve Bank of Chicago’s Scott A. Brave on business conditions conducted through a Chicago Fed Survey.
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Chicago’s Employment Climate
At the end of last year, there was an escalation in small business jobs in Chicago. However, the rate at which this grew was actually slower than last year. Still, by the end of 2015, there was a leveling out of jobs following on from the recession. Indeed, according to James Diffley, economist for IHS Global Insight, Chicago actually managed to “regain all the jobs it lost during the Great Recession.” Having said that Chicago (as well as throughout America), encountered a reduction in 2014 during the hiring peak that occurred when businesses bolstered employment after cutbacks caused by recession and business failures.
On the flip side, Chicago’s athletes are really bringing home the bacon. One example is Derrick Rose who plays for the Bulls. Last year he took home $35 million – $15m of which came from endorsement contracts. Furthermore, six out of the 25 highest earning professional athletes in Chicago made their debuts last year and Jon Lester, pitcher for the Cubs earned $155 million for the year. That was said to have been “the richest multiyear contract in Chicago sports history.”
Overall however, it seems that last year’s employment market in Chicago was a bit of a disaster. A combination of near-stagnant international growth, the aging population and collapsing oil prices were the cause of this. There was an average of 1 percent less in employment growth for a second consecutive year in 2015; a statistic that has only ever happened four times since 1945.
Chicago Company Best Retailer for Cyber Week
It appears that people looking for the best bargains during the insane buying frenzy of Black Thursday, Cyber Monday and beyond would have done best at Chicago-based Groupon. This on-line purchasing powerhouse displayed the best deals and largest discounts than any other retailer during the 2015 Cyber Week shopping season.
Groupon prevailed with a 62-percent discount rate, according to a report published by Wallethub, a personal financial website. Researchers analyzed thousands of deals during the holidays from 30 of the largest US retailers and found that Groupon led the pack with Belk, Bon-Ton, JCPenney, Macy’s, eBay, Kohl’s, Sears, Amazon and Kmart following behind.
The category with the best discounts was jewelry. Computers, phones and video games were the least discounted articles. Sales on Cyber Monday reached $3.07 billion, 16 percent more than on the same day last year. Add that to the astounding sales from Thanksgiving on Thursday to Sunday, and the grand total is an astounding $11.1 billion.
The Wallethub study declared that the $3 billion total for Cyber Monday this year was the largest amount for a one-day sale in e-commerce history.
Redmoon Theater Lowering the Curtain
Redmoon Theater, a Chicago tradition for two and a half decades, announced last week that it was shutting down permanently. The performance company said they were no longer able to properly support their “unique artistic vision.”
The company stated in a letter to the public that:
“It has been an honor to serve the city of Chicago for the past 25 years. We have been blessed to work in and with over 40 of Chicago’s 77 official neighborhoods and to bring our unique brand of spectacle to some of our finest institutions; to many of the city’s most revered public sites; and most importantly to some of its most overlooked neighborhoods.”
Recent attempts to revitalize the flagging company ended poorly. The 2014 Great Chicago Fire Festival drew 30,000 people to the celebration at the shores of the Chicago River. Unfortunately, the main spectacle, which was supposed to “celebrate Chicago’s grit, greatness, and renewal following the fire of 1871” did not come off as planned. Floating sculptures on the river that were supposed to burst into flames failed to ignite due to cold and rainy weather. Redmoon was highly criticized for the failure.
The company also tried to start a rental business in its most recent venue. Complications and failures which led to a lawsuit for $62,082.22 for unpaid rent in September and October. Phillip Mumford, who is seeking those damages, is due to meet Redmoon in court later this week.
“Our consolation at this sad moment is that Redmoon is bigger than this non-profit institution,” the statement continued. “It is a spirit that survives us. It lives in you, our patrons and partners. It is a memory sown into each of the sites that have hosted us. Most of all, we are consoled that Redmoon’s mission to celebrate and uplift community is a shared concern powering amazing, if under-recognized, activity all over this great city.”
Prime Now Delivers in Chicago
Chicago residents who belong to Amazon Prime can now take advantage of a new service
in the Windy City, one-hour grocery delivery.
Also included in the service, which will cost Prime members an additional $7.99 per delivery are Plum Market, Sprinkles Cupcakes and My Fit Foods. If customers can wait 2 hours for their food-stuffs, then delivery is free.
Orders can be placed through the Prime Now app. Chicago joins more than 20 cities all over the country which offers Prime Now.
Palmer House Available for Purchase
Considered by many as Chicago’s First Great Hotel, The Palmer House is up for sale.
The historic hotel is probably most famous for the on-the-premises invention of one of America’s most beloved confections: the chocolate brownie. Bertha Palmer is responsible for our added waistline inches and dental caries, all of course well worth it. She was married to Potter Palmer, the man responsible for the success of the grand hotel. Here is how it happened:
“Bertha Palmer, who was president of the Ladies Managers of the World’s Fair, was doing box lunches for all the guests but she wanted something other than piece of pie or cake. So she came to the hotel and charged the chef to make something like a cookie. Denser, like a cookie, but chocolatier. She loved chocolate. And ergo, the brownie,” Palmer House historian Ken Price said.
It is not just brownies that has made Palmer House special. Less than two weeks after Palmer House opened on September 26th, 1871, the Great Chicago Fire left the hotel nothing but a pile of ash. From the ashes rose the second incarnation of the hotel two years later, setting several precedents for their new establishment.
Price explained: “First, totally fireproof building. Second, is first utilization of Edison’s invention the lightbulb, Bell’s invention of the telephone, and actually this contraption called the vertical railroad, which became the Otis Elevator.”
Google’s New Office in Chicago Hosting 2016 Venture Summit
The second annual Chicago Venture Summit, sponsored by World Business Chicago will be held on April 20-21, 2016 at Google’s newly opened Chicago branch office. The summit will host startups, venture capital firms and will focus on trends in innovation. Fortune 500 companies will also be there to provide the oil to lubricate the machine of networking. A special emphasis will be placed on businesswomen in Chicago.
“Chicago’s tech community is thriving,” said Chicago Mayor Rahm Emanuel. “We’ve seen a record high amount of venture capital invested in Chicago startups in 2014, and the second highest number of companies included on Inc. 5000’s latest list of fastest growing companies. The Chicago Venture Summit builds on this environment, allowing our companies to continue to grow and create jobs throughout Chicago.”
ChicagoNEXT, the WBC’s council of technology leaders, is organizing the event. The council is committed to fostering growth and opportunity in technology, science and innovation. They support entrepreneurship which leads to new growth.
“We’re proud to bring the strongest local, regional and national venture companies to the city to converge with our area’s brightest entrepreneurs and industry leaders,” said ChicagoNEXT Chairman Mark Tebbe. “The Chicago Venture Summit provides one of the most unique networking opportunities and creates tangible investment in our city and its companies.”
Rosemont Convention Center Getting Upgrade
The Donald E. Stephens Convention Center in Rosemont is ready for a major facelift, which is soon to be implemented. Included in the improvements will be modernized bathrooms, a new paint job throughout the center, including ceilings, walls, and exhibit halls.
The village board signed off on a $80,300 contract with Aria Group Architects. They will be called upon for design development, construction document services and project administration for the project.
Coming in January the board is most likely going to approve contracts for construction work. No costs for the contracts have been disclosed.
Rosemont will probably be able to access state monies to pay for the improvements. The village receives $5 million every year to pay for improvements to the convention center and incentives. The work is expected to take place during 2016.
Illinois Electric Bill Heading Down in January
Suburban ComEd customers can expect to see a reduction in their delivery rates of about 2 percent beginning in January. That translates to about $1 for every $85 spent on electricity. The Citizens Utility Board, a watchdog group says that the reduced cost is a good beginning, and is planning on asking for further reductions in the next month.
Jim Chilsen, spokesperson for the CUB said:
“We hope this decrease is a sign that ComEd has taken a step forward in building a more efficient and reliable power grid that gives consumers the opportunity to save money. Illinois has a long way to go to build a power grid that maximizes consumer benefits. So our message to the state’s biggest electric utility is: Don’t stop now. We are paying for these power grid upgrades, so we deserve the benefits.”
ComEd asked for the reduction last April, requesting a total cost break of $50.4 million. Further adjustments were added by the Illinois Commerce Commission last week, approval a reduction of 2.58 percent, or a total of $66.5 million.
“The smart grid program is delivering on its promise to generate efficiencies and we are pleased to pass along those savings to our customers by decreasing their electric delivery costs,” ComEd President and CEO Anne Pramaggiore said. “The investments in the smart grid program are producing a stronger, more reliable system with fewer outages. Those results mean less operational costs and greater savings for our customers.”
Only Two Burgers Left in Chicago Burger-Off
Thousands of suggestions for a new kind of burger creation were submitted by a variety of wannabe and actual chefs in McDonald’s recent “Chicagoland Burger Build-Off.” After careful consideration the McDonald’s operators in the Chicagoland and Northwest Indiana region whittled down the field to only two finalists: A Chi-Town Classic featuring Canadian bacon and smoked applewood bacon strips; and a Rio Crisp Burger complete with tortilla chips and guacamole.
So which of the two is going to be the winner? Just as the ideas came from the people, the ultimate winner will also be chosen by the public: both burgers are now being served in the region’s restaurants to see which becomes the most popular. The inventor of the burger of choice will receive $5,000 in cash and a paid vacation to Universal Studios in Los Angeles. Not to mention being able to tell everyone you created a McDonald’s featured burger.
McDonald’s will also promote the new burger with some fun advertising. Cossette Chicago advertising agency created a TV spot which hopes to inspire excitement over the new-fangled burgers and the fact that the public gets to choose the final winner.
Not only is McDonald’s trying to promote the contest, it would also like to employ the momentum from the contest to have customization of local menus get people into fast food restaurants and boost sales.