Utilities? Focus on Supplier Diversity Adds Billions to Illinois Gross Domestic Product (GDP)

Diversity coalition report shows economic impact of spending with minority-owned,
women-owned, veteran-owned, and small business enterprises

CHICAGO--(BUSINESS WIRE)-- A study commissioned by the Illinois Utilities Business Diversity Council (IUBDC) revealed that goods and services purchased by Illinois utilities from minority-owned, women-owned, veteran-owned, and small business suppliers in 2023 contributed $3.5 billion to the state's Gross Domestic Product (GDP).

Formed in 2015, IUBDC facilitates best practice sharing and information exchange among the five major Illinois regulated electric, natural gas, and water utilities: Ameren Illinois, ComEd, Illinois American Water, Nicor Gas, North Shore Gas and Peoples Gas. The coalition is led by the CEOs of each member company. Aqua Illinois is an associate member.

In 2023, IUBDC member utilities engaged diverse companies for projects in areas such as engineering, construction, consulting, finance, legal, real estate, and technical services. According to the 2023 economic impact study:

• IUBDC member utilities purchased $881.2 billion from Illinois-based diverse suppliers.
• Utility spending with diverse suppliers supported nearly 19,000 jobs in Illinois.
• Companies supported by utility diversity spending paid $1.5 billion in employee wages.

"IUBDC member companies are committed to advancing the success of businesses owned by minorities, women, and veterans in Illinois," said Rebecca Losli, chairperson of the IUBDC Board of Directors, and President of Illinois American Water. "The study confirms that by nurturing existing relationships and creating new partnerships with diverse companies, we are delivering a significant impact on economic growth and job creation in Illinois."

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

IUBDC is also taking on the challenge of developing the next generation of diverse business leaders through its partnership with the Kellogg Executive Program at Northwestern University. Scholarships funded by IUBDC are providing business leaders with a world class training and development opportunity. Since inception, the IUBDC has awarded 15 scholarships to leaders of certified Minority Business Enterprises.

The economic impact study was conducted by supplier.io, a research company that works with businesses to improve supplier development results. A full copy of the study can be found at https://iubdc.com/.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107953277/en/

Source: Illinois American Water