$5.5 B added to Illinois economy through utility contracts with diverse suppliers

Economic Impact Report: More than 13,000 jobs supported by projects awarded to minority-, women- veteran-owned small business enterprises

CHICAGO, Oct. 6, 2023 /PRNewswire/ -- A study commissioned by the Illinois Utilities Business Diversity Council (IUBDC) revealed that goods and services purchased by Illinois utilities from minority-, women- and veteran-owned small business suppliers in 2021 and 2022 contributed $5.5 billion to the state's gross domestic product (GDP).

Formed in 2015, IUBDC is a coalition of Illinois energy and water utilities that work together to advance the utilization of diverse businesses throughout Illinois. The founding utilities include Ameren Illinois, ComEd, Illinois American Water, Nicor Gas, North Shore Gas and Peoples Gas. Aqua Illinois is an IUBDC member. The coalition is led by the CEOs and presidents of each founding member utility.

IUBDC member utilities collectively engaged 978 diverse companies annually for projects in areas such as engineering, construction, consulting, finance, legal, real estate and technical services in 2021 and 2022. According to the economic impact study during the two-year period:

• IUBDC member utilities spent a total of $1.7 billion with Illinois-based diverse suppliers.
• The utilities' diverse spending supported more than 13,000 ongoing jobs.
• Diverse companies contracted by the utilities paid $1 billion in employee wages.
• In 2022 alone, IUBDC members spent $1.5 billion with diverse suppliers. This represents growth of 51% since IUBDC was founded in 2015.

"IUBDC member companies are investing in our systems and physical infrastructure to meet the needs of our customers and accelerate the clean energy transition in Illinois," said Lenny Singh, chairman of the IUBDC board of directors, and chairman and president of Ameren Illinois. "The study confirms that by opening doors for diverse companies, we're delivering a significant impact on economic growth, job creation and the financial well-being of our communities and our state."

Programs and services offered by IUBDC have increased the pipeline of qualified diverse vendors. A new supplier mapping system is improving the visibility of bid opportunities and helping connect utilities to qualified diverse suppliers throughout Illinois. The geographic information system-enabled program helps utilities quickly locate qualified diverse suppliers for a wide range of equipment, technology, and business support services.

IUBDC is also helping develop the next generation of diverse business leaders through an innovative partnership with the Kellogg Executive Program at Northwestern University. Scholarships funded by IUBDC are providing business leaders with world class training and professional development opportunities. Since the program's inception, the IUBDC has awarded 11 scholarships to leaders of certified minority business enterprises. 

"The structure provided by IUBDC gives us a platform to work together to grow the pool of diverse suppliers," Singh said. "The next stage of evolution is to have a deeper impact on high potential suppliers and help them develop the capabilities that will serve utilities – and Illinois companies in other sectors – over the long term."

The economic impact study was conducted by supplier.io, a research company that works with businesses to improve supplier development results.

The Illinois Utilities Business Diversity Council (IUBDC) founding members include Ameren Illinois, ComEd, Illinois American Water, Nicor Gas, North Shore Gas and Peoples Gas. Aqua Illinois is an associate member. The mission of the IUBDC is to serve the Illinois utilities as a forum for best practice sharing and information exchange with the focus on advancing the growth and utilization of utility-based diverse businesses in the state of Illinois.

SOURCE Illinois Utilities Business Diversity Council