Economy
Metropolitan Chicago has a well-balanced economy that is not heavily dependent on any one activity. New industries are attracted by such factors as the central location and excellent transportation facilities. Institutions providing services, including hospitals, law firms, banks, schools, and hotels and restaurants, provide the largest share of the area's jobs.
Manufacturing is a leading sector of Chicago's economy. Of greatest significance is the production of electrical and nonelectrical machinery. Among the varied products of this industry are motors and generators, telephone equipment, electronic devices, household appliances, office machines, farm and construction machinery, and tool and die products.
Steel manufacturing is a major activity in the Chicago area, particularly in northwestern Indiana, where some of the nation's largest and most productive mills are located. The Chicago-Indiana industrial region is also a prominent petroleum-refining center. Other heavy industries in which the metropolitan area is a leading producer include metal fabricating and the manufacturing of chemicals and transportation equipment.
Food processing is a major light industry. Despite the closing of the huge Union Stock Yards in 1971, the city remains a significant meat-packing center. It is also a leading producer of canned and frozen foods, beverages, and confectionery products. Other important industries in the area include printing and publishing and the making of precision instruments, paper products, rubber and plastic items, and pharmaceuticals.
Chicago is the largest wholesale and retail market between the east and west coasts and serves much of the central United States. There are three major commodity exchanges—the Chicago Board of Trade, the Chicago Mercantile Exchange, and the Mid-America Commodity Exchange. Retail sales are most heavily concentrated in the Loop, the Near North Side, and large suburban shopping centers. Huge mail-order firms headquartered in the Chicago area also account for a sizable portion of the retail trade.
Chicago, the chief financial center in the Midwest, is headquarters of the Seventh District Federal Reserve Bank, several of the nation's largest commercial banks, and a number of major insurance companies. The Midwest Stock Exchange, formed in 1949, is a major regional securities market. The Chicago Board Options Exchange, founded in 1973, is the nation's foremost futures market for securities.
The transportation industry forms a major segment of Chicago's economy. Few cities in the nation play a greater role in the movement of goods and people.
Numerous trunk line railways radiate from the city, which has been the nation's rail center since the late 19th century. Freight movements account for most railway traffic. Passenger service, once spread among a half dozen downtown terminals, is now concentrated at three stations.
Scores of major highways crisscross the Chicago area, including portions of seven Interstate highways, which form the city's expressway system.
Chicago has two major airports—O'Hare International, 15 miles (24 km) northwest of the Loop, and Midway, 9 miles (14 km) southwest. O'Hare handles both domestic and international flights and is one of the two busiest commercial airports in the nation. Midway, much smaller, is used exclusively for domestic flights.
Chicago is a major center of Great Lakes shipping. The opening of the St. Lawrence Seaway in 1959 gave large oceangoing vessels access to Chicago. Lake Calumet Harbor, on the far South Side, is the main port area; it is connected with Lake Michigan by the Calumet River. The Illinois'Waterway, a system of rivers and canals linking Lake Michigan and the Mississippi River, joins the lake at Chicago.
Public transportation is provided chiefly by an extensive system of bus and rapidtransit lines, operated by the city and regional transportation authorities. The rapidtransit network is made up mainly of elevated and surface lines; several of these lines become subways in the downtown area. Several railway lines provide commuter service to suburbs.
Each year several thousand conventions and trade shows are held in Chicago, making it one of the nation's leading convention centers. Facilities include McCormick Place on the lake-front, O'Hare International Exposition Center, the Rosemont Horizon in Rosemont, and major hotels, especially downtown and near O'Hare International Airport.
Government, tourism, and research and development also contribute significantly to Chicago's economy. Argonne National Laboratory, near suburban Lemont, and the Fermi National Accelerator Laboratory, near Batavia, are notable research centers.
