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Chicago gains in tug of war with suburbs over area jobs

Posted 9/3/03

The flight of Chicago businesses to the suburbs shows some signs of reversing as some suburban firms are returning to the city.

Synovate Inc., which moved to Arlington Heights in 1991 from Chicago, confirmed Tuesday it is planning to move 500 jobs to the West Loop this year.

In part, the market research firm, once named Market Facts Inc., is moving because of the perceived boost it could get from being in the heart of the city.

"We were finding it more difficult to get young people to come out to the suburbs," said Robert Philpott, head of American operations for the firm, which has 77 offices in 46 countries. It is a subsidiary of London-based Aegis Group PLC.

"We wanted to create an employment location that is dynamic and forward thinking," he said.

For Arlington Heights, it means the loss of one of its top 20 employers.

"I'm encouraged they're staying in the Chicago metropolitan area," said Arlene Mulder, Arlington Heights village president.

She said the suburbs have numerous high-tech and younger workers, but many migrate to the suburbs in their child rearing years.

Nevertheless, market research industry has been sluggish for several years and Philpott said he sees the move as "a chance to reinvigorate" the firm's corporate culture.

Synovate, a fusion of the words synergy and innovate, isn't alone in its assessment of the Chicago urban experience.

Schaumburg-based Motorola Inc., which moved from Chicago decades ago, said this summer it is opening a Motorola Chicago Consumer Experience Design Center. It is expected to employ 140 people.

Initially, most of the 75 jobs at the stylish design center will be coming from its cellular phone unit in Libertyville.

"For people in their 20s and 30s, they want to live in the city versus the suburbs," said Jennifer Weyrauch, spokeswoman for the electronics giant.

Establishing a presence in Chicago is often seen as a way of capitalizing on the area's universities. Many of the jobs being attracted to Chicago are high-tech, design, sales and finance oriented.

Some analysts contend the younger, high-tech savvy professionals in Chicago can encourage creativity at firms.

"Their hiring pool is going to include a more diverse crowd, (in terms of) thinking-style," said Gregg Fraley, who, among other things, is a creativity consultant in Chicago and a former reverse commuter.

Lake Forest-based Brunswick Corp. also has its roots in Chicago and also has returned with 60 high-tech and financial services jobs. The recreational products manufacturer has moved its Brunswick New Technologies unit, which looks for technology growth initiatives, to Chicago.

In the end, what used to drive businesses from the city were quality of life issues and the price of real estate. But Philpott said the cost of his new site will be similar to suburban sites and many workers clearly want to live in the city.

Boeing Co. considered suburban locations when it moved its headquarters here from Seattle but, after an exhaustive assessment, chose a downtown site, said Dan Lyne, director of technology developments, World Business Chicago, a quasi-governmental group promoting Chicago business locations.

Chicago's downtown market heated up during the dot-com boom. Online auction house uBid began in Elk Grove Village in 1998 but moved into the city, citing many of the qualities now being mentioned by Synovate. Motorola considered opening an office there at that time.

Although Chicago has cooled with the economy, Lyne said he thinks it is showing the initial signs of picking up again.

"There seems to be a healthy migration downtown," Lyne said. "It's that whole quality of life mix that's doing it."

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