Economic development expert discusses Cape's prospects at Magnet meeting

During the past fiscal year, Missouri has notched its highest number of job creations and capital investments in state history, said Mike Downing, director of the Missouri Department of Economic Development.

That equates to 26,000 new jobs and $5.9 billion in investment. Missouri also is No. 1 among eight adjacent states in its number and rate of employment increases, he added.

Downing spoke about Missouri and Cape Girardeau's economic development during the Cape Girardeau Area Magnet's 21st anniversary celebration luncheon Monday at Drury Lodge.

During site selection, companies use a process of elimination and it is highly competitive, he said.

Eighty-percent of expanding businesses begin searching for future locations in existing buildings, he said, and only 20 percent end up in them.

The reason is speed, he said. Companies want to be in production.

"The more available buildings you have, the more searches you're going to get," Downing said, which is a "heck of a billboard."

When looking for a business location, companies take many things into consideration, including:

* Proximity -- companies want to be close to their market and suppliers;

* Place -- people today are more concerned about where they live rather than what they do;

* Perception -- having support from local government, chambers of commerce and media for potential projects;

* Persistence. A city attracting economic development is going to lose more business prospects than it's going to gain, he said. It is considered excellent if a city scores one out of 15 potential business opportunities.

However, if the city and its leaders maintain a professional reputation throughout a site search process, business prospects will keep coming back, Downing said.

Companies expanding operations or moving to another area also look at whether existing businesses are succeeding, as well as the workforce of the surrounding region.

A large transition in today's workforce is technology and technology-based companies, and there is a need for employees with science, technology, engineering and mathematics, or STEM, skills.

Sixty percent of jobs in the market require STEM skills, and only 20 percent of the workforce has them, Downing said. Because of the increase in jobs in need of STEM knowledge, he said skills of high school and college students need to be upgraded.

Though a persistent problem is that Missouri falls below the United States in terms of per capita income, and the state is not increasing incomes as it should, one of its main selling points is its central location, Downing said. The state provides transportation by water, rail or highway system, stability in terms on its AAA bond rating, and a lower cost of living.

What attracts businesses to Cape Girardeau are "economic catalysts" such as federal and government institutions, universities such as Southeast Missouri State University, agriculture and tourism attractions, Downing said.

ashedd@semissourian.com

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