2014 Trends Report

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F A L L 2014 | VOLUME 2


Community Welcome Service

TARGET NEWCOMERS BEFORE SHOPPING LOYALTIES DEVELOP

Hear from a current sponsor... “The Chamber has made the service so easy that all we have to do is follow up with our leads when they are provided! We are able to use the demographic info in marketing for our banking and lending products. ” -Central Illinois Bank Become a sponsor of the Community Welcome Service program through the Champaign County Chamber of Commerce. Promote yourself to new Champaign County residents and receive essential demographic data that can be used for strategic and targeted marketing for your business. These residents receive gift boxes within a few weeks of arrival with information about the area, as well as coupons, free gifts and brochures provided by the program’s sponsors.


Dear Chamber Members, We are pleased to provide your company with the second annual Trends publication. This publication is designed to provide our members with information and data that can be used in your daily business decision making. One of the biggest challenges facing all business owners and managers is making the right decisions to grow your companies; expand your products and / or improve your services. Using data, understanding trends, understanding the local marketplace and local demographics can be helpful to your company as you strategically plan for the future of your business. Please take time to review the information provided. Our goal is to provide our members with data on an ongoing basis to help your company. Please take time to reach out to us and let us know if we are we missing information that would be invaluable to your particular industry? We want to know what you need in order to help support those gut-made decisions – backed with data.Your feedback is encouraged to LauraW@champaigncounty.org. We hope you find the Trends Publication helpful to your company.

Table of Contents: Population & Geography.........................4 Demographics..................6 Psychographics.................7 Income & Poverty............8 Unemployment................9 Industry............................11 Economy..........................12 Real Estate......................13 Construction..................15 Agribusiness....................16 Recognitions...................18

Terms to Know: Psychographics: grouping people according to psychological factors such as values, beliefs, and motives. Income Limit: the maximum income allowed to qualify for government assistance.

Sincerely,

Home Appreciation: the difference between how much a home sold for and its current value.

Laura Weis President & CEO

This publication was compiled and designed by Candice Schlax, intern to the Champaign County Chamber of Commerce.


Population & Geography Source: US Census Bureau (2010-2013)

Champaign County Population: 204,897* Population Growth (2010-2013): 1.9 percent Land Area: 996.27 squared miles

Ford

McLean

DeWitt

Population Per Squared Mile: 201.8

Champaign

Piatt

Douglas

Nearby Counties 174,647

Population Growth (2010-2013) 3.0 percent

Ford

13,832

-1.8 percent

Douglas

19,887

-0.5 percent

Piatt

16,433

-1.8 percent

DeWitt

16,420

-0.9 percent

County McLean

4

Population*

*Based on 2013 estimates.


Most Populated Cities/Villages

Champaign (81,291)

Urbana (41,518)

met gre ho

013

nt 2010

oy grew av

013

pe

4.9

r

ce

-2

S

r

ce

Mahomet (7,282)

-2

pe

6.5

w

Ma

Rantoul (12,984)

nt 2010

Savoy (7,302)

Saint Joseph (4,016)

Tolono (3,459) = 6,000

5


Demographics Sources: US Census Bureau (2012), Sperling’s Best Places (2013)

Race*

White

5.5%

African American

9.4%

Asian Hispanic

12.7% 72.4%

Political Affiliation*

Democrat Republican

45.1% 52.1%

Independent

Sex* 2.8%

Male Female

fastest growing demographic in the US!

50%

50%

Age* 5.6%

10.6%

18-65 56.7%

19.2%

Under 18 Over 65 Under 5

6

*Data represents Champaign County.


Psychographics Source: PRIZM (2014)

New Beginnings

Individuals in this category are in a stage of transition. Many have just entered the workforce, while others are re-entering or changing direction. With a relatively low income, New Beginners must live modestly and limit their spending.

City Startups City Startups are college aged students living in young areas with active night lives and inexpensive businesses. These residents have low incomes and tend to be more ethnically diverse.

Suburban Pioneers

This group is composed of working-class, single parents. Members can be found in older neighborhoods with rich cultural backgrounds and high ethnic diversity. Suburban Pioneers are low-income, but have a lot of community support.

Home Sweet Home These are upper-middle class married couples without children. Due to their higher incomes and smaller families, individuals belonging to this segment can afford a more comfortable lifestyle, including purchasing luxury goods.

Mobility Blues

This category features low-income singles. Mobility Blues members do not have much spending power, but because they do not have children, they have more free time for social activities.

Psychographics group people who share the same lifestyle, stage in life and belief system.The profiles listed above represent the five most common types of people living in Champaign County, according to PRIZM data. Understanding the customer’s point of view—what drives them to make purchasing decisions—is essential to creating a marketing plan and strategic advertisements.

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income & poverty Sources: US Census Bureau (2008-2012), Bureau of Labor Statistics (2013), US Department of Housing and Urban Development (2014)

Quick Facts

$25,455 Per Capita Income

$45,800

Median Household Income

Income by Occupation Occupation

Business & Finance Legal Education & Training Architecture & Engineering Healthcare Practitioners Life, Physical & Social Sciences Computers & Mathematics Construction & Extraction Protective Services Management Arts, Entertainment, Sports & Media Installation, Maintenance & Repair Community & Social Services Office & Administrative Support Production Healthcare Support Sales Transportation Building Cleaning & Maintenance Personal Care & Services Food Prep & Services

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Annual Mean Wage* $92,030 $77,650 $77,590 $77,290 $72,070 $69,580 $62,990 $55,640 $54,730 $48,850 $48,050 $41,640 $38,330 $35,690 $35,630 $33,720 $33,190 $32,110 $28,400 $25,650 $21,350

*Data represents Champaign County.


Income Limits Income limits identify households that qualify for government assistance. Those listed below are specific to the Champaign-Urbana area. “Extreme Low Income” typically falls below poverty level.

1 Person

$14,250 $23,800

2 Person

$16,300

3 Person

$27,200

$19,790

4 Person

$38,050

$30,600

$23,850

5 Person

$43,450 $48,900

$33,950

$54,300

$27,910 $36,700 Extreme Low Income

$58,650

Very Low Income

Low Income

22.1 percent of Champaign County’s population was below poverty level in 2012. Only 13.7 percent of Illinois’ population was below poverty level in 2012.

22.1

unemployment Sources: Bureau of Labor Statistics (2013-2014), EPS-HDT (2014)

Champaign County Unemployment Rate 10

9%

8.7%

8

7.9% 6.8%

6

4 April 2013

5.8%

June 2013

Aug 2013

Oct 2013

Dec 2013

Feb 2014

April 2014

9


Seasonality JAN

FEB

MARCH

APRIL

MAY

JUNE

JULY

AUG

SEP

OCT

NOV

DEC

Unemployment rates in Champaign County tend to decrease February-April and August-October and increase May-June.

Unemployment Rate Comparison 10

Top Chamber Employers*

8

1. 2. 3. 4.

6

4 2

tes United Sta

Illinois

Danville Chicago -Joliet-N aperville

10

Peoria

gton-N ormal

Bloomin

Champ aign

0

University of Illinois (10,331) Carle Foundation (5,500) Carle Physician Group (1,920) U of I Division of Intercollegiate Athletics (1,315) 5. Champaign County Unit 4 School District (1,280) 6. Kraft Foods (1,098) 7. Presence Covenant Medical Center (1,000) 8. Champaign County (825) 9. Christie Clinic (685) 10. Urbana School District #116 (675)

*Data is self-reported.


key industries Sources: Bureau of Economic Analysis (2012), Fox Development Corporation (2014), Inc. (2013)

Government rGDP: $2.1B Jobs: 36,491

Agribusiness

Healthcare

rGDP: N/A Jobs: 1,282

rGDP: N/A Jobs: 13,380

Technology

Manufacturing rGDP: $773M Jobs: 7,418

rGDP: N/A Jobs: N/A

Professional

Retail Trade rGDP: $553M Jobs: 11,102

rGDP: $417M Jobs: 6,726

Growth of the Tech Sector: New Business Marketing software and analytics platform, Turn, recently announced that it will be opening its first innovation center outside of Silicon Valley at UIUC.

Company Expansion Within the past year, Intel created nine new jobs,Yahoo! expanded its offices in Research Park and John Deere declared its plan to double in size.

Revenue Growth Two Champaign County companies made the Inc. 5000 list for fastest revenue growth in 2013: EP Technology Corp. and Midwest Underground Technology, Inc.

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economy Sources: Sperling’s Best Places (2013), City of Champaign (2013), Tax-Rates.org (2014), Bureau of Economic Analysis (2012)

Quick Facts

$8.127B Real GDP

124,550 Jobs

gn’s larg pai

ce

$

ur

r

ev

Property Tax 2 percent Sales Tax State + County + City

est

Cham

Taxes

enue so

Urbana Champaign Rantoul Ogden Savoy Saint Joseph All other cities

6.25 6.25 6.25 6.25 6.25 6.25 6.25

1.25 1.25 1.25 1.25 1.25 1.25 1.25

1.50 1.50 1.25 1.00 0.50 0.50 -------

Total 9.00 9.00 8.75 8.50 8.00 8.00 7.50

Cost of Living *The United States is the index. It serves as a reference point.

91% 96% 83% 87% 118% 100%

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Champaign County McLean County Vermilion County Peoria County DuPage County United States*


Real Estate Sources: Champaign County Association of Realtors (2013-2014), Sperling’s Best Places (2013), Realty Trac (2013-2014), LoopNet (2014)

Housing Sales Month March 2013 March 2014 April 2013 April 2014 May 2013 May 2014

Homes Sold 160 173 201 211 295 305

Median Sale Price $132,000 $122,500 $142,000 $137,000 $130,000 $140,000

Home Appreciation Home appreciation is the difference between how much a home sold for and its current value. A positive number signifies a demand for homes.

Ford

Peoria

2.7

0.2

Home Appreciation in Champaign County is

-2.9 percent

US

4.9

DuPage

9.8

13


Number of Foreclosures Foreclosures have a domino effect on the economy. Fewer foreclosures means greater opportunity for the economy to grow.

Individuals who purchase foreclosed homes save an average of 66.3 percent

20

15

10

5

June 2013

Aug 2013

Oct 2013

Dec 2013

Feb 2014

April 2014

Commercial Asking Rent $15/sf/yr $14.10/sf/yr $13.60/sf/yr $12.97/sf/yr

$13.10/sf/yr $12.78/sf/yr $12.81/sf/yr

$12/sf/yr

May 2013

Retail Property

14

Feb 2014

Office Property

May 2014


Major Construction Projects Sources: The News-Gazette (2007-2014), The Daily Illini (2013), Hyatt (2014)

2013

Hyatt Place hotel

.4M $22 ork of w

217 N. Neil St., Champaign, IL 61820 Opened June 2014 Employed 45-50 people

Kraft expansion

710 N. Mattis Ave., Champaign, IL 61821 Scheduled to be completed in 2014

Bankier apartment

SW corner of E. Green St. and S. Fourth St. Scheduled to be completed by 2015

2014

Kraft warehouse interior

710 N. Mattis Ave., Champaign, IL 61821 Scheduled to be completed in 2014

M $50 ork of w

JSM hotel

Lot J on E. Green St. Scheduled to be completed by 2015

HERE apartment

NW corner of E. Green St. and S. Fourth St. Scheduled to be completed by 2015

M $29 ork w of

Providence apartments

2015 +

Thornberry: 702 Cobblefield Rd., Champaign, IL 61822 Sycamore Hills: Bradley Ave. and N. McKinley Ave. Scheduled to be completed in 2015 Will employ 7 new people

Ikenberry Common dorms

S. First St., S. Fourth St., E. Peabody Dr. and E. Gregory Dr. Scheduled to be completed between 2021 and 2027

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Agribusiness o nt

f new lease s 30%

*

Current Land Value and Cost to Rent*

Per ce

Source: 2014 Illinois Farmland Values and Lease Trends

Cash ash

le C Flexib

30% 40%

re Sha

Farmland Classification Excellent

Total Value Per Acre $10,400-13,400

Average Rent Cost Per Acre $350-425

Good

$8,500-11,000

$300-375

Average

$6,500-8,500

$225-325

Land Value Over Time* $12,000

$10,000

$8,000

$6,000

$4,000

16

2010

2011

Excellent

Good

2012 Average

2013 Fair

*Data represents Champaign County.


Potential Impacts on Farmland Prices The graph below depicts potential positive and negative impacts on farmland prices in the United States over the next three years. Positive impacts are represented by cornstalks, while negative impacts are represented by roots. The length of the line signifies its estimated magnitude.

7 8 1

2 3

9 10 11 12 13 14 15 16 17

4 5 6

1- Chinese Demand 2- Inflation Pressures 3- Crop Yields 4- Global Weather 5- Investor Demand 6- Global Instability

7- Sovereign Debt Issues 8- US Economy 9- Capital Gains Taxes 10- US Tax Policy 11- ROI 12- Alternate Returns

13- Changed No. of Buyers 14- Input Costs 15- Net Farm Income 16- Interest Rates 17- Commodity Prices

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2014 Recognitions

2013 Recognitions 5th best work-life balance in the US (Champaign-Urbana) NerdWallet 7th best college town in the US (Champaign-Urbana) American Institute for Economic Research 6th best city to walk to work in the US (Champaign-Urbana) MSN Real Estate

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We live where we loan. With over 145 years of strength and service, our experts have the knowledge and resources to serve your unique financial needs, whatever they may be. From planning for retirement to expanding your business — Busey is here to make your dreams a reality. Each spring, Busey presents developments and data on the Champaign County economy. Learn more about our community—and national trends—when you join us for the 63rd Champaign County Economic Seminar at the iHotel and Conference Center.

Member FDIC

217.365.4500 busey.com


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