Missouri Partnership Briefing City of Washington /
What is Economic Development? Keep and grow existing businesses Help launch new business start-ups Attract expanding and relocating businesses
Where Does the Partnership Fit In? Keep and grow existing businesses Help launch new business start-ups Attract expanding and relocating businesses
Our History “Marketing and sales” for Missouri Established in late 2007 Public-private, not-for-profit status Offices in St. Louis and Kansas City $2.7 million annual budget comprised of contract funding and foundation investment
Our Mission Get Missouri in the game – HOW: Aggressive, proactive marketing effort to position Missouri as a place to expand or relocate Help Missouri win the game – HOW: Team approach with multiple local, regional, state, and private-sector partners aimed at persuading companies to choose Missouri
Our Strategy – Marketing Air Campaign Ground Campaign Product Development
Our Strategy – Recruitment Assemble the Right Team, Every Time Focus on Impeccable Customer Service Control What Can Be Controlled
Our Deliverables Elevate Missouri’s profile and image Generate opportunities to compete Consummate business recruitment wins
Our Operating Environment What does our pipeline of deals look like? What matters to companies? What are our clients looking for? Where and how are the deals coming in? What are the types of deals out there? What are the odds of getting a look? What are the odds of winning a deal? Why and how are deals lost?
Our Pipeline CONTACT PROSPECT / INQUIRY ACTIVE PROJECT WIN
Pipeline Snapshot 10/31/ /31/2011 Active Projects New Jobs 22,500 13,400 New Annual Payroll $502mm $338mm New Investment $7.4bb $2.8bb % from Consultants 51% 46% % involving FDI 31% 26% Prospects/Inquiries
What Matters to Companies? Highway accessibility 1 st 1 st Available skilled labor 2 nd (tie) 7 th Labor costs 2 nd (tie) 2 nd Corporate tax rate 4 th 6 th Real estate costs 5 th (tie) 4 th Source: Area Development Corporate Survey
What Else Matters to Companies? Incentives 5 th (tie) 5 th Energy costs 7 th 9 th Tax exemptions 8 th 3 rd Proximity to markets 9 th 17 th Labor climate 10 th 11 th Source: Area Development Corporate Survey
What Are Our Clients Looking For? 2012 (YTD)2011 Real estate searches Want existing building Want greenfield site 9 8 Want building or site 1 1 Statewide search 15/3412/37 St. Louis region 7/34 11/37
What Are Our Clients Looking For? 2012 (YTD) 2011 Avg. building (industrial) 154K s.f131K s.f. Avg. building (office) 15K s.f. 28K s.f. Median greenfield site 30 acres n/a Avg. greenfield site 328 acres77 acres % needing rail 32%24% % needing rail (site only) 70%70%
Where Are the Deals Coming From? 40 to 50 percent of deals in pipeline are via consultants – 2011 site search statistics: 19 out of 37 real estate searches represented by a third-party consultant – 2012 YTD site search statistics: 19 out of 34 real estate searches represented by a third-party consultant
How Are the Deals Coming In? States Tier 1 metropolitan regions (e.g. St. Louis) Tier 2 metro regions (e.g. Springfield, Columbia) Ex-urban / rural communities
What Types of Deals Are Out There? New facility expansions with a national or multi-regional search geography New facility expansions with a narrowly defined search geography – From outside the state (e.g. auto suppliers) – From within the region (e.g. satellite operations) Existing facility consolidations or relocations – More common in a slow economy
What Are My Odds of Getting a Look? Is the company/client interested in our part of the state / country / world? Do we have a workforce that this company can hire and train to do the job? Do we provide the best cost and value solution to the company/client? Do we have a building or site that meets the basic needs of the proposed new facility?
What Are My Odds of Winning a Deal? Business attraction is highly competitive! Henry VIII and the many fates of a deal e.g. Since 2010, the Partnership has converted approximately 10 percent of its pipeline (including “prospects” and “active projects”)
Our Long-Term Challenges Product awareness Product perception Product vs. Packaging
Why Missouri? Top 10 State for Doing Business (Pollina) Top 10 best corporate tax index (Tax Foundation) Top 10 best regulatory climates (Forbes) Top 10 tax/regulatory climate (US Chamber) Top 10 lowest energy costs (EIA) Top 10 for economic competitiveness (ALEC) AAA bond rating for 22 straight years $250B economy that’s 4 th -most diverse (BEA)
Christopher Chung President and Chief Executive Officer Missouri Partnership