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 – 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?
Pipeline Snapshot10/31/2012 10/31/2011
Active Projects 81 62New Jobs 22,500 13,400New Annual Payroll $502mm $338mmNew Investment $7.4bb $2.8bb% from Consultants 51% 46%% involving FDI 31% 26%Prospects/Inquiries 106 19
What Matters to Companies? 2012
2011Highway accessibility 1st 1st
Available skilled labor 2nd (tie) 7th
Labor costs 2nd (tie) 2nd
Corporate tax rate 4th 6th
Real estate costs 5th (tie) 4th
Source: Area Development 2012-2013 Corporate Survey
What Else Matters to Companies?
2012 2011Incentives
5th (tie) 5th Energy costs 7th
9th
Tax exemptions 8th 3rd
Proximity to markets 9th 17th
Labor climate 10th 11th
Source: Area Development 2012-2013 Corporate Survey
What Are Our Clients Looking For? 2012 (YTD) 2011
Real estate searches 34 37Want existing building 24 28Want greenfield site 9 8Want building or site 1 1Statewide search 15/3412/37St. Louis region 7/34 11/37
What Are Our Clients Looking For? 2012 (YTD)
2011Avg. building (industrial) 154K s.f 131K s.f.Avg. building (office) 15K s.f. 28K s.f.Median greenfield site 30 acres n/aAvg. greenfield site 328 acres 77 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”)
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 4th-most diverse (BEA)
Christopher ChungPresident and Chief Executive OfficerMissouri [email protected]