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Those who read my op-ed messages or hear me speak at
Chamber and other business functions across the state know I
have a habit of bemoaning Illinois' economy and the state's
poor record in job growth, and economic opportunity. This
hasn't been an all bad news litany, but delivering the doom
and gloom that dwell in our state's many problem areas gets
old. This month's message is focused on some of the
fundamental building blocks and economic strengths that offer
great potential for Illinois' future.
Illinois has
many economic strengths that could effectively propel our
economy well into this new century. But to capitalize on
opportunities requires leadership, vision, communication,
commitment, and a horizon beyond the next press release, sound
bite and photo-op. Our state is more concerned about election
cycles than economic cycles, and that is a fundamental
problem. As long as the "future" equates to two year election
calendars, "gotcha" politics will trump the general welfare
and common interests. Long term success requires undertaking
initiatives like education reform and infrastructure
investment with ten and twenty year commitments.
I
offer the following points as the most critical emerging
issues that our political, business and community leaders
should embrace for Illinois to re-emerge as a national leader
and economic powerhouse that is generating jobs and
prosperity. The best option for meeting our governmental,
social and civic obligations is a vibrant economy that
encourages job creation and rewards capitalism.
Ten Building Blocks for a Stronger Illinois
Economy
1. Agriculture: Illinois is
well known for highly productive farmland; however our future
depends on more than harvesting rows of corn and beans. The
future of agriculture is better characterized by the term
"Bio" and must include food, pharmaceuticals, renewable
energy, bio-tech, bio-research, and genetics.
2.
Manufacturing: Illinois remains a dominant industrial
state and ranks fifth in manufacturing production in the US.
American manufacturers have become more efficient, more
productive and more high-tech in approaching global
competition. Despite losing both jobs and industrial
facilities, many Illinois manufacturers have adapted, remain
successful and need to hire qualified technicians. Many
industrial job losses we experienced moved to neighboring
states and to the south, not overseas. We need to explore and
understand the competitive underpinnings that led to the
decisions made to leave, then take steps to remove
disincentives to Illinois investments.
3.
Transportation: Jobs were created in warehousing and
logistics in every region of the state over the last decade.
This is due to growth in just-in-time production techniques
and changing patterns of the international marketplace that
depends on modern, efficient transportation.
We sit at
the geographic crossroads of America. Illinois has always met
the nation's rail, water and highway cargo needs, and this has
not changed. With thirteen interstate highways, all six "class
one" railroads, two-thirds of the nation's container cargo
traffic, and access to the world's water ports, Illinois
likely has the nation's best multi-faceted transportation
modes. It is also a major convergence point for pipelines and
fiber-optic networks. Chicago's O'Hare Airport is an important
gateway to global commerce.
4. Energy: Illinois
is one of the few states that could lead the nation toward
self-sufficiency in energy, with the natural resources,
industrial savvy, research institutions, and inclination to
embrace technology needed to lead advancements in clean and
alternative fuels.
Southern Illinois University is a
leading energy research center focusing on both coal and
ethanol. Illinois is home to ADM, the grandfather of the
ethanol industry, and home to the nation's largest nuclear
power producer. Illinois is home to engine researchers and
leaders Caterpillar and International. Illinois has more BTUs
underground than Saudi Arabia, in the form of coal instead of
oil. Illinois has two communities identified as finalists in
the selection process for the US Department of Energy
FutureGen facility. Whether located in Illinois or not, the
technological advancements expected from this investment will
benefit Illinois' coal.
St. Louis based Peabody Energy
has huge holdings and future investment plans for Illinois
coal, and the coal industry's future is bright today. BP has
major holding in Illinois and recently announced a $3 billion
investment to upgrade and expand its Whiting, Indiana
refinery. Illinois is home to four major oil refineries and is
the primary receiving point for Canada's shale oil production.
Illinois' history as a refining and industrial state leaves no
doubt that our political leaders should actively recruit the
nation's next refinery facilities to be built in Illinois. The
destructive experience of Hurricane Katrina proved the
preponderance of the nation's refining capacity on the Gulf
Coast isn't in our collective best interest. Furthermore,
additional refining capacity might help Illinois drivers
access cheaper prices at the pump.
Reports suggest
four refineries need to be built somewhere in the world every
year, yet the US has not constructed a new facility in thirty
years. Our government needs to get out of the way and become
an enabler rather than an obstructionist.
5.
Healthcare: Illinois has tremendous opportunity to lead
in healthcare. Outstanding healthcare facilities call Illinois
home - renowned care giving facilities as well as research and
teaching hospitals. The UIC Medical Center is the world's
largest. We are home to some of the world's leading healthcare
companies like Abbott, Baxter, Takeda and many others.
Emerging and differentiating healthcare issues that
will distinguish cutting-edge healthcare leaders are
accountability around the quality of care, accountability
around pricing of care (including full transparency with
disclosure of competitive and comparative pricing),
self-directed responsibility for personal health, embracing
technology to modernize a system far too vulnerable to human
error, and availability of care for all.
Healthcare
financing today is a house of cards constructed on cost
shifting among payers, subsidies to some providers and
government programs that remain expansive and inadequately
funded.
6. Electronic and financial markets:
The significance of MERC, CBOT, CBOE and the Chicago Stock
Exchange's presence is often overlooked and underestimated.
Chicago market-makers are recognized world leaders in
creativity and adopting new technology. Chicago is the Midwest
home for numerous private equity funds. More can be done to
put these financial talents and resources to work for
Illinois' future business.
7. Conventions &
Hospitality: This and transportation were the only
industry segments with job growth in all regions of the state
this past decade. Our convenient geography makes Illinois a
strong draw for business travel with superior convention
facilities, hotel availability, quality diverse restaurant
choices and excellent leisure opportunities.
Leisure
visitors nationwide and worldwide increasingly come here for
Abraham Lincoln history, world-class cultural institutions,
professional sports, destination shopping, diverse outdoor
recreation, outstanding neighborhoods, communities, and
festivals. Our reputation is as a clean, safe, beautiful and
friendly destination.
8. International Markets:
Illinois hosts more foreign consulates than other American
cities, excluding Washington, DC and New York. Illinois
features many international corporate headquarters, can tap
the wisdom of learning from a multi-cultural population, and
is a primary urban destination for immigrant populations.
With so many obvious advantages, our fragmented and
underwhelming approach to international trade is
disappointing. Illinois' businesses must become more engaged
in international markets. Our young people and our workers
must prepare for a fast-paced and increasingly competitive
global economy.
9. Education, Research and
Development: Illinois has some of the nation's leading
higher education research institutions, three major national
laboratories and substantial private sector R&D
facilities. Human creativity and innovation are the ultimate
job generators. Research and development is an economic engine
that must be recognize and rewarded. Universities must focus
on technology transfer to the private marketplace;
entrepreneurs and private firms need confidence that Illinois
nurtures success and prosperity.
Future success
requires striving to keep creative minds and technological
advances working to bring growth to Illinois. The U.S. economy
is increasingly driven by innovation that is quickly imitated
worldwide. American creativity, individualism, and free market
capitalism keep us a leader and innovator of economic
progress. Illinois' place in the world may be best served by
placing confidence in a knowledge-based economy that retains
the best and brightest to develop and grow emerging business
advances.
10. Small Business Entrepreneurship:
It is, after all, all about jobs. Small business has proven
consistently to be the most innovative at job creation.
Successful economies are home to young, high-growth companies
with multi-year, double-digit growth trends and high
aspirations. These small businesses on steroids propel a
surging economy.
As multi-national corporations
provide fewer stable local jobs, successful economies must
pursue new business ventures with the spirit, innovation and
drive to grow in their home communities.
The public
sector does not create prosperity, so it must create an
environment where entrepreneurs and investors have confidence
their inspiration and perspiration will be adequately
rewarded. Illinois' political leaders must recognize the
private sector has choices about where to invest in people and
place capital to make it work for higher returns. We must
assure private sector job creators that Illinois is such a
place.
Our challenge is to help promote and enhance
the future opportunities these important building blocks offer
the people of Illinois.
Mortar for the Building
Blocks
Education and Work Force:
Employers and the education community cannot afford
complacence about curriculum rigor, educational outcomes, job
readiness skills, or the unacceptable number of young people
who don't graduate from high school. We must not tolerate an
unemployable, under-employed or disproportionately dependant
population. The current situation is unacceptable. Traditions
of a positive Midwestern work ethic, productive and efficient
workers and valuable human capital must be exploited.
The cost of doing business: We must initiate a
dialog with the state's business leaders and move to change
laws and adopt necessary changes that are determining factors
for investment. We should observe prosperity policies and
learn from best practices adopted not only by other states but
nations like Ireland and Singapore where prosperity is
celebrated.
Anti-business policies -- tax policies
with consistently higher obligations on employers than
individuals, government-dictated labor costs, "big box" retail
discrimination, attempting to freeze energy costs below market
prices, or legislating restaurant menu selections -- hardly
project an image of a stable and predictable business
environment.
Employers and investors notice such
things, and there are economic consequences to such political
decisions. Though politicians may wish to ignore it, I contend
that government may obstruct but not control market forces or
technological advances. Markets and technology are in constant
change. Successful business leaders understand this, but the
public sector has trouble dealing with change.
Americans have in many ways become too sophisticated
and litigious for our own good; too many seem more comfortable
with confrontation and obstruction than celebrating growth and
progress.
Public Infrastructure: public
infrastructure investment requires multi-year vision and
stewardship of public resources because the private sector
cannot generally do it themselves. Private sector investment
will follow public sector investments. Our parents and
grandparents celebrated tremendous benefits from the
investment in our interstate highway system. Today's
politicians balk at funding this fifty year old highway
network that is in desperate need of reinvestment. These
obligations must be shouldered even if costs are huge and
solutions require sacrifice in the form of higher taxes.
Political Sleaze: Illinois must confront and
resolve its reputation as a political cesspool.
Investigations, indictments, and political corruption trials
dominate the daily media and appear unending, no matter which
political party is in power. The impression that heavy-handed
politicians who tolerate "pay-to-play" contracting,
job-buying, political shakedowns, kickbacks, intimidation,
retribution, and regulatory populism at the expense of free
markets suggests the fifth largest US state is as corrupt and
costly as the proverbial banana republic.
Illinois
finds itself at a critical juncture. We have great strengths
and tremendous potential for an even brighter future. This is
NO time to accept mediocrity. We must fight public complacency
and disillusionment by challenging ourselves to set a course
for better, brighter days of prosperity and opportunity for
all the people of Illinois. It is achievable. We need vision,
leadership, and courage.
(This month's message is
excerpted from a speech given by Doug Whitley recently; click
here for the text of the full speech on our
website. |
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