Clearly, more and more of the newer warehouse and distribution facilities are relying on automation and robotics, in part because the competition for warehouse and fulfillment labor has been fierce. Locally, look no further than the Elk Grove Technology Park, which CIBC financed for developer Brennan Investment Group. The former Busse Farm is now a three-building complex occupied by tenants that are smart manufacturers and data centers, including household names like Microsoft. While these facilities may not need as many employees as the assembly lines of old, they do need skilled operators.
Turning to the life sciences sector, this industry has been growing at a rapid pace for years, though the Chicago region currently sits just outside the top 10 life science markets in the United States. Boston, San Francisco and San Diego lead the way, but we expect that to change. With leading institutions such as the University of Chicago, Northwestern University and Rush University, we certainly have the talent to support research and development, and anticipate Chicago’s position as a tech and life sciences hub will take on a more meaningful presence.
Yet for all this development activity to continue, we need to attract, train and retain trade workers: plumbers, electricians, carpenters and steel workers. The commercial real estate industry estimates it needs 61,000 new workers per month over the next 2 to 3 years. Apprentices are entering the workforce at a much slower pace than baby boomers are aging out of it. It is imperative that we focus on training in fields where there is a deep shortage of workers, and we need to ensure these jobs have the pay and benefits to make them just as attractive as those that don’t require a college degree.
Like many of the challenges facing Chicago today, there isn’t one simple solution. Yet ensuring we attract and retain the highly educated workforce to support emerging industries while training a new generation of skilled trades workers is critical to our vitality.
If you have any questions for CIBC’s Commercial Real Estate, please contact Jacqueline Barlow at jacqueline.barlow@cibc.com Opens your email app.. You can also call her at 312-564-2605 Opens your phone app..
