”The CEOs want more input,” says a top Illinois economic development official.
Earlier, we reported on a proposal by Richard J. Ferris, chairman and chief executive officer of UAL Inc., for a new Chicago tourism campaign.
Now Robert H. Malott, chairman and chief executive officer of FMC Corp., is thinking about forming a ”business roundtable” of state corporate leaders to advise the Thompson administration (or its successor?) on making Illinois a better place for business.
The concept of a business roundtable, which exists in other states, pops up now and again in Illinois. In 1983, James F. Bere, chairman and CEO of Borg-Warner Corp., proposed such a group. But ”it just didn`t gel,” said Robert A. Morris, Borg-Warner`s vice president for communications, who was assigned to do spade work on the project.
One reason these plans seldom get off the ground here is that many of the state`s corporate chieftains run what essentially are headquarters operations in Illinois. Since their companies` principal plants and employment are elsewhere, the CEOs have less incentive to get involved in civic affairs as long as the Chicago Symphony Orchestra, or whatever other local amenity they enjoy, stays in business.
However, Malott is reviving the idea through an economic development advisory group that Gov. James Thompson established about a year ago.
In addition to the FMC chief, the advisory group includes G. Allen Andreas, assistant treasurer and member of the family that runs Archer-Daniels-Midland Co.; Edward A. Brennan, who shortly will become CEO of Sears, Roebuck & Co.; William F. Farley, chairman of Farley Industries; Robert W. Galvin, CEO of Motorola Inc.; Lawrence Levy, chairman of the Levy
Organization; John W. Madigan, executive vice president of Tribune Co.; and Donald S. Perkins, former Jewel Cos. CEO and chairman of the civic commitee of the Commercial Club of Chicago.
Andreas, who has volunteered for several other economic development assignments in the Thompson administration, said that if a business roundtable is formed it may require a more diverse representation.
This spring, the Malott group asked the consulting firm McKinsey & Co. to study Illinois` economic development efforts when compared with other states and, in particular, to examine the effectiveness of business lobbying groups here and in other states.
McKinsey was scheduled to report its findings the day before Thanksgiving, but Thompson was unable to attend. The meeting has been postponed until after Jan. 1.
In the meantime, Thompson`s Department of Commerce and Community Affairs has been conducting its own analysis of Illinois economic development through a $54,000 contract to Fantus Co., the Chicago-based firm that, among other things, helps corporations find sites for new plants.
Fantus surveyed its own files regarding more than 500 firms that have considered coming to Illinois and attempted to rank the factors that went into their decision whether or not to locate here. Also, Fantus tried to discover what factors would be important in the future.
Robert Ady, Fantus executive vice president, declined to show us the raw data. However, Jeffrey Miller, Thompson`s director of planning who has seen the data, said, ”The major finding that stuck in my mind was that the No. 1 issue cited was labor relations.”
In short, Illinois has a bad rap as a high-cost, uncooperative-labor environment. This is no revelation, but the fact that the labor climate persists as a major negative for Illinois in competing with other states proves either that the state hasn`t dealt adequately with the issue or that it has failed to advertise its progress in this area.
Labor-management tension isn`t a trendy topic in these days of
”entrepreneurship” and ”quality circles,” but enlightened labor-management attitudes are more theory than reality in most companies.
We certainly don`t want to make too much of economic-development studies, by McKinsey, Fantus or anyone else, or of proposals for new business groups. But these activities, largely behind the scenes, illustrate some interesting dynamics underway as the 1986 election year nears. Jobs and economic development probably will be the No. 2 issue in the race for governor, second only to name-calling. As a result:
— How will Thompson, who in odd moments fancies himself a wheeling-and-dealing corporate CEO, handle the ”advice” he`s getting from Malott, Ferris and other corporate leaders? So far, the requirement in Fantus` contract that the Fantus and McKinsey data be ”coordinated” hasn`t occurred. But economic development, however defined, is too important to be left to politicians.
— How will Republican Thompson, who enjoys unusual support from state labor leaders, deal with the perception and reality of Illinois` labor climate? If labor conditions have improved for employers in Illinois, how can Thompson brag about that without offending his friends in labor? If things haven`t improved, how will Thompson explain that after nine years in office?
Thompson won`t be able to duck these questions. Key issues in worker`s compensation and unemployment insurance will be on the General Assembly`s agenda next year. These aren`t easy questions, either, for Adlai Stevenson, whose labor record is decidedly unconventional for a Democrat.
— How will the state`s small and medium-sized businesses, whose plants and employees are here, get a word in edgewise? Is anybody listening?
A battle among
the Marines
We`ve written plenty about the battles over interstate banking in the Midwest. But we didn`t know that the Marines are in the thick of the fight.
Marine Corp. of Springfield, holding company for Marine Bank of Springfield and several affiliated banks and financial-service operations in central Illinois, is suing The Marine Corp., a Milwaukee bank-holding company that has a 5 percent stake in Elmhurst National Bank.
Marine Corp. in Springfield filed the suit in Sangamon County Circuit Court after the Milwaukee outfit registered in Illinois a logo and the name
”Marine Banks.” The Illinois Marine Corp. wants to stop the Wisconsin Marine Corp. from using the name Marine here.
The Springfield Marine name dates to 1851 in Illinois. With Illinois` new interstate banking law, the holding company could acquire banks anywhere in the state, including west suburban Elmhurst, or in contiguous states that enact similar laws.
On the other hand, The Marine Corp. of Milwaukee has a well-established pedigree in Wisconsin that it would like to export to Illinois. The Wisconsin legislature may act on interstate banking next year. Someday, Marine Midland Banks Inc. of New York might invade the Midwest.
We can`t imagine how this identity crisis will be resolved, but we hope no one starts shooting or taking hostages.
