Presentation to Warrenton Area Chamber of Commerce meeting in January 2014. Presentation is an overview of the Missouri Partnership's efforts to market Missouri and recruit new employers to the state.
2. What is economic development?
Keep and grow
existing businesses
Help launch
new businesses
Recruit expanding and
relocating businesses
3. Where does the Partnership fit in?
Keep and grow
existing businesses
Help launch
new businesses
Recruit expanding and
relocating businesses
4. Our history
Marketing, biz-dev, and sales for Missouri
Established in late 2007 as 501c(6) NFP
Offices in St. Louis and Kansas City
$2.8 million annual budget of public and
private funds
■ 12-person staff
■ 12-person statewide Board of Directors
■ Rationale for privatization
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5. Our mission
■ Get Missouri in the game
HOW: Aggressive, proactive marketing effort
to position Missouri for new investment
■ Help Missouri win the game
HOW: Team approach with multiple local,
regional, state, and private-sector partners
7. Our results
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Since 2010…
57 new corporate facilities recruited
6,714 new jobs recruited
$346 million in new annual payroll recruited
$760 million in new investment recruited
8. Our results
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Notable wins since 2010…
Janesville Acoustics (Warrensburg)
CertainTeed Corporation (Jonesburg)
Yanfeng USA Auto Systems (Riverside)
Blue Buffalo Pet Foods (Joplin)
IBM (Columbia)
Pharma Medica Research (St. Charles)
Grupo Antolin (Kansas City)
10. Results and Cost-of-Sales Overview
2011
2012
2013
11
18
14
1,400
1,127
1,749
Payroll
$90 mm
$57 mm
$81 mm
Cap-ex
$224 mm
$187 mm
$249 mm
$2,502,500
$2,032,500
$2,070,000
Per new job
$1,788
$1,803
$1,184
Per state avg. wage of
payroll ($43,122 in ‘13)
$1,135
$1,499
$1,100
Per $100K cap-ex
$1,115
$1,087
$831
Recruitment wins
Jobs
Funding invested
11. Our return-on-investment
Since 2010…
■ $9.9 million in private and public funds invested in
the Missouri Partnership through 2013
■ $1,506 invested in Missouri Partnership
Per new job recruited
■ $1,204 invested in Missouri Partnership
Per state avg. wage in new payroll recruited*
■ $1,320 invested in Missouri Partnership
Per $100,000 in new capital investment recruited
*Note: State average wage in 2013 = $43,122
12. Our strategy – Marketing
■ Raise awareness and influence perceptions
■ Develop and leverage “buy-side” relationships
■ Contribute to improvement of our product
13. Our strategy – Recruitment
■ Focus on impeccable customer service
■ Assemble the right team, every time
■ Advocate for the deal
14. Site selection in a nutshell
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MARKETING
Company identifies need for capacity
Company initiates site search
Company contacts EDOs in search area
EDOs submit site location proposals
Company visits communities
Company develops a short list
Company negotiates incentives
Company finalizes site-selection
SALES
15. Site selection – The strategies
■ Market-driven
– E.g. Distribution centers
■ Talent-driven
– E.g. Biotech, information technology
■ Cost-driven
– E.g. Manufacturing, food processing
16. What matters to companies?
Labor costs
Highway accessibility
2011
2nd
1st
2012
2nd (tie)
1st
2013
1st
2nd
Availability of skilled labor
Availability of ICT services
7th
14th
2nd (tie)
13th
3rd
4th
Real estate costs
4th
5th (tie)
5th
Source: Area Development 27th Annual Corporate Survey
17. What matters to companies?
Energy availability & costs
Corporate tax rate
2011
9th
6th
2012
7th
4th
2013
6th
7th
Available existing buildings
Tax exemptions
10th
3rd
15th
8th
8th
9th
Labor climate
11th
10th
10th
Source: Area Development 27th Annual Corporate Survey
18. What are the odds of getting a look?
■ Does the company have a reason to be in our
part of the world?
■ Do we have a workforce that the company
can hire and train to do the job?
■ Do we provide the best cost and value
solution to the company?
■ Do we have a building or site that meets the
needs of the proposed new facility?
■ Does our location support the economics of
the planned investment?
19. Site selection – Key selling points
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Real estate
Business costs
Demographics and workforce
Existing industry and employers
Risk analysis
Quality of life
Pro-business attitude
Fast permitting
State and local incentives
21. Our pipeline
Contact
Any and all
engagement
with potential
investors
Prospect/
inquiry
Interested in
Missouri but
no current
facility need
defined
Active
project
Interested
in Missouri
with current
defined
facility need
Win
“Inactive”
“Dead”
“Lost”
22. Pipeline snapshot
12/31/2012
Active Projects
76
New Jobs
21,400
New Annual Payroll
$747mm
New Investment
$8.5bb
% from Consultants
54%
% involving FDI
32%
Prospects/Inquiries
119
12/31/2013
93
16,800
$607mm
$5.7bb
51%
34%
187
24. What are my odds of winning a deal?
■ Since 2010, the Partnership has converted
approximately 10 percent of its pipeline
■ Why do we lose?
Real estate
Incentives
Operating climate
26. Why Missouri?
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Top 10 State for Doing Business (Pollina)
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Top 10 best corporate tax index (Tax Foundation)
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Top 10 best regulatory climate (Forbes)
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Top 10 lowest business energy costs (Small Biz Council)
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Top 10 state for new job creation in 2013 (Bureau of Labor Statistics)
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Top 10 in technology job growth (Tech America Foundation)
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Top 10 infrastructure and transportation systems (CNBC)
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Top 10 in higher-education degree output (US Chamber)
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AAA bond rating for 24 straight years (Moody’s, S&P, Fitch)
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“Most Aggressive” (CBRE Economic Incentives Group)
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$250 billion economy that’s 4th-most diverse (BEA)
27. Why Missouri Partnership?
■ Generating new investment deals for which
Missouri communities can compete
■ Supporting partners on deals that they have
“sourced”
■ Partnering in annual cooperative marketing
program for advertising, events, and outreach