ONE CITY, 50 WARDS: Voters have to decide what they want, ex-alderman says. PAGE 4
THE TAKEAWAY: She gets paid for tasting food, trying makeup. PAGE 6
CHICAGOBUSINESS.COM | FEBRUARY 13, 2023 | $3.50
Higher interest rates, fewer groundbreakings JOHN R. BOEHM
After a strong 2022, Chicago’s construction industry is losing momentum as rising rates chill new projects BY ALBY GALLUN Amid higher interest rates and a slowing economy, electricians, ironworkers, carpenters and crane operators could have a little more time on their hands this year. The local construction industry is losing momentum after a strong 2022 as developers hold off on big projects. But contractors aren’t bracing for a major downturn: After rising 12% to $13.4 billion in 2022, construction starts in the Chicago area will dip slightly this year, to $13.3 billion, according to a forecast from Dodge Data & Analytics, a Hamilton, N.J.-based research firm.
That may be just what the Federal Reserve wants to hear as it tries to hike short-term interest rates enough to tame inflation, but not so much that it pushes the economy into a painful recession. Rising rates have cooled off the real estate market, making it harder for developers to finance new apartment towers, warehouses and other buildings. The impact has started to trickle down to the firms that pour concrete, install wiring, hang drywall and do all the other jobs required to construct a new building. With borrowing costs up and See CONSTRUCTION on Page 20
So much for Rivian’s first-mover advantage The EV truckmaker races to unscramble production amid growing competition, union pressure and shrinking cash BY JUDITH CROWN Rivian is struggling to accelerate production of electric pickup trucks and SUVs as new rivals pile into a market it hoped to dominate and union organizers take aim at the company’s downstate factory. Recent setbacks pummeled Rivian shares to a 52-week low of $15.28 last month. Price cuts by rivals Tesla and Ford weigh on the shares, which peaked at more than $170 following Rivian’s November 2021 IPO. Amid shrinking cash reserves and recession fears, the
Crain’s is spotlighting women in the business and nonprofit worlds who are making decisions of real consequence. Our inaugural list of 13 outstanding women begins on PAGE 13
company announced it was laying off 6% of its workforce, although sparing its primary production facility in Normal. That follows a similar-sized layoff last summer. The challenge for Rivian is to fix its supply chain and production snafus so it can boost output before more competitors swoop in. “The market is looking for them to put out goals and meet them,” says Michael Shlisky, senior research analyst at D.A. Davidson, who expects the stock to See RIVIAN on Page 18
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