Seeing Tomorrow – Companies in the State of Illinois The Impact of Macroeconomic Environment
Motivation Weaving on our theme “Seeing Tomorrow” we will focus on macroeconomic environment impacting the companies headquartered in Illinois. Based on long term data, we will forecast: Trend in assets growth (investment behavior) Capital accumulation determines increase in employment of labor “Extrapolating from the experience of the late 1990s, the NAIRU could be lowered by as much as 1 full percentage point by a sustained $250 billion annual increase in infrastructure investment. This could mean that more than 1 million additional workers each year find employment” --Economic Policy Institute
Motivation cont’d Trend in Revenue growth Indicator of aggregate demand and consumption level Trend in Profitability (earnings) Living standards of investors Further investment of companies The management efficiency of companies
Public Companies: stock market listed corporations COMPUSTATA data up to Feb 2015 Private Companies: Private-held corporations or LLCs or LLPs FACTSET data up to Feb 2015
Public Companies – Chicago Headquartered
Forecasts 4.18% or $81 Billion
Forecasts 2.25%
Forecasts 3.30%
Revenue of Chicago Public Companies in 2009 Dollars Forecasts 0.53%
Retail Transportation Manufacturing Financial
Illinois Public Companies
Level of Assets of Midwest Public Firms
Hot Zone of Revenue Generation
Management Efficiency
Private-held companies by state in million dollars
Concluding Remarks Publicly listed companies: The investment growth (asset growth) is expected to increase but may not beat the speed of GDP increase The revenue growth is also expected to increase in nominal terms but decline if purchasing power is considered The income growth is with more uncertainty, but is also expected to increase on average. Employment is expected to increase. Mainly from the financial sector and manufacturing sector.
Concluding Remarks (cont’d) High management efficiency ratio of Illinois public companies The data shows Illinois private-held companies generate highest amount of Net Income among all states in the US.