Location Patterns and Attributes of Japanese Companies in the Chicago Metropolitan Area

Abstract

This study identifies the location patterns and attributes of Japanese companies in the Chicago Metropolitan Area and explains their reasons for locating in Illinois and at their current sites. Japanese companies in the Chicago Metropolitan Area began to increase in the 1960 s. The distribution of Japanese companies demonstrates that there are two patterns of concentration: one is in the Central Business District represented by the banking industry, and the other in the northwest suburbs of Chicago, specifically near O'Hare International Airport, represented by the general machinery industry. Currently, suburbanization of Japanese companies with that of Japanese employees is continuing. The result of a questionnaire put to 114 Japanese companies reveals that Japanese companies in the Chicago Metropolitan Area chose the state of Illinois for its geographical centrality. On the local scale, accessibility to O'Hare International Airport plays a crucial role for Japanese companies when locating in the suburbs of Chicago, while accessibility to the City of Chicago is a critical reason when locating in the City of Chicago. Also, Japanese companies in the Chicago Metropolitan Area contribute to the local economy by increasing employment opportunities in the area.