IL Not ‘Bestie’ For Business, Says Survey Of CEOs

www.agrinews.com
Jeannie Otto
2010-05-24

The term “bestie” is one used by the Internet generation to describe one’s best friend.

A survey released recently by Chief Executive magazine shows that Illinois is not a “bestie” toward business.

The findings of the survey, which ranked Illinois 46th in the nation, came as no surprise to many.

“One of the hardest things to get elected officials to think about is how to run a business. It’s not their view of the world,” said Doug Whitley, president and chief executive officer of the Illinois Chamber of Commerce.

More than 600 CEOs in various industries rated each state in three categories: tax and regulation, workforce quality and living environment. The CEOs gave Illinois grades of D+ in taxation and regulation, B- in workforce quality and C+ in living environment.

Indiana received a B+ in both taxation and regulation and in workforce quality and a B in living environment, while Iowa received a B in taxation and regulation and B+ grades in workforce quality and living environment. Texas topped the survey as the No. 1 state to do business in while California placed last.

Whitley said he was not surprised.

“It merely affirms from another quarter, from another voice, what other third-party analysts and researchers have been saying,” he said.

“Until the elected officials in this state hear the voices and recognize the issues, adopt a plan to change this trend and take actions that can reverse the trends, we will continue to get these kinds of reports.”

Whitley said he believes the state’s attitude toward business and industry does not convey confidence and especially not to those businesses that may be looking to relocate to Illinois.

“I believe that the government, any government, has a responsibility to create an environment that gives employers confidence that this is a good place to do business, that it’s ethical and responsible, that responsible people are running the show and that they are predictable and reliable and that I can, over the long term, be prosperous in this state, country or city. The message that Illinois has been sending out for some time is that we are not reliable,” he said.

The CEOs rated states in subcategories. Workforce quality category measured employee work ethic, general education level of the workforce, competitiveness of wage rates, employees have a cooperative relationship with management and availability of labor with specialized experience.

In the tax and regulation category, CEOs measured perceived attitude of government to business; state income tax and corporate tax rates; degree of employment compliance regulations; degree of environmental compliance regulations; and tax incentives for locating in this state.

Bill Bodine, director of external relations for the Illinois Farm Bureau, who has worked on the development of IFB’s Vision for Illinois Agriculture, said the farm group has noticed the state’s approach toward doing business.

“In working with that project, one of the issues that has surfaced is the business climate,” he said. “The group has developed a smart agenda that outlines several things that, were those things improved, would make it more attractive for Illinois businesses.”

Bodine said the fiscal integrity of the state is a concern, followed by the state’s regulatory environment.

“From our work with Vision in Agriculture, we’ve found it’s more of a challenge in Illinois to site a business here, business facilities in general. Any facility that needs an NPDES permit or an air permit or those types of permits, they face challenges and this is affecting all different types of industries in the state,” he said.

The plodding regulatory processes can make Indiana and Iowa, where permitting takes much less time, look more inviting for industries.

“When they are looking at Illinois, it takes longer and that delay can increase the cost of siting a facility here,” Bodine said. “Then they look at our current fiscal situation and that adds uncertainty for them and can create some hesitation, as well.”

According to Bodine, workforce development is another issue that has surfaced and is included in the Vision for Illinois Agriculture.

“We have to be making sure we are educating our students in a way that provides a quality workforce for the ag industry and focusing on efforts to improve the workforce. If we have good minds, we can use those to add value to the business,” he said.

Other concerns include high unemployment and workers’ compensation taxes on business, an item that was measured in the Chief Executive survey.

Don Schafer, executive vice president of the Mid-West Truckers Association, agreed that Illinois isn’t rolling out the welcome mat for his industry or any others.

“If you add it all up, the business climate in Illinois, we have some of the highest taxes on trucks in the country, some of the highest fuel prices in the country in the Chicago and suburban areas at least, some of the worst workers’ compensation conditions in the country. And this is all before you go out and make any money, you have to deal with all of these issues,” he said.

Schafer agreed that neighboring states appear to be more welcoming toward business.

“When they look at other states, other states that actively promote ‘we want business in our state,’ we just don’t see that. That attitude just isn’t here,” he said.

Schafer credited those businesses that have chosen to stay and provide jobs, despite the business climate, and those who do choose Illinois.

“These companies are lean, very efficient, they’re run well and people make the most of it, they do the best they can,” he said.

Whitley said that for the state’s business climate to change, the attitude of its lawmakers must change first.

He noted that the state’s business climate translates to jobs — and the lack of jobs — including an 11.5 percent statewide unemployment rate in March and in all but six of the state’s 102 counties an unemployment rate that exceeds 10 percent.

“More of our elected officials need to take a big-picture, long-term view,” he said. “We have officials living in the past and resting on their laurels, resting on past prosperity that has been steadily slipping away.

“We truly need a change of attitude and a plan of action to reverse the trends. Instead of electing ‘American Idols,’ we need to be electing CEOs.”

Bodine said his group has been communicating its findings — and concerns — to lawmakers and candidates.

“We’ve been sharing with them the information we have pulled together. I think everybody understands we have a crisis in the state and everybody is looking for solutions so I think they are open to receiving suggestions and ideas,” said Bodine, who noted that the state’s fiscal quagmire is a priority. “We do have some fiscal concerns that we will have to work our way out of.”

Whitley said it is not impossible for the state to change its ranking and become a better place to do business.

“I do believe these kinds of reports can be reversed. It has to be a long-term trend, but there has to be action and the action has to be visible and verifiable and demonstrated, not rhetoric but demonstrated action,” he said.

The complete survey can be found at www.chiefexecutive.net.




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