Warrenton Area Chamber of Commerce 14 Jan 2014 (Missouri Partnership Overview)

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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.

Published in: Marketing, Business, Real Estate
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Warrenton Area Chamber of Commerce 14 Jan 2014 (Missouri Partnership Overview)

  1. 1. Marketing Missouri to the World Warrenton Chamber of Commerce January 14, 2014
  2. 2. What is economic development? Keep and grow existing businesses Help launch new businesses Recruit expanding and relocating businesses
  3. 3. Where does the Partnership fit in? Keep and grow existing businesses Help launch new businesses Recruit expanding and relocating businesses
  4. 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 ■ ■ ■ ■
  5. 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
  6. 6. Our deliverables Marketing Business Development Sales Elevate Missouri’s profile and image Generate opportunities to compete Consummate business recruitment wins
  7. 7. Our results ■ ■ ■ ■ 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. 8. Our results ■ ■ ■ ■ ■ ■ ■ 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)
  9. 9. Our results ■ ■ ■ ■ ■ ■ ■ Notable wins since 2010… Aviation Technical Services (Kansas City) Alpla (St. Peters) IBC North America (Chillicothe) VestFiber (Moberly) Scotts Miracle-Gro (Wright City) Unisys (St. Louis) Don’s Cold Storage (Joplin)
  10. 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. 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. 12. Our strategy – Marketing ■ Raise awareness and influence perceptions ■ Develop and leverage “buy-side” relationships ■ Contribute to improvement of our product
  13. 13. Our strategy – Recruitment ■ Focus on impeccable customer service ■ Assemble the right team, every time ■ Advocate for the deal
  14. 14. Site selection in a nutshell ■ ■ ■ ■ ■ ■ ■ ■ 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. 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. 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. 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. 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. 19. Site selection – Key selling points ■ ■ ■ ■ ■ ■ ■ ■ ■ 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
  20. 20. Where are the deals coming from?
  21. 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. 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
  23. 23. Pipeline snapshot Active Projects Sourced by MP Sourced by partner Referred by DED 12/31/2012 76 12/31/2013 93 29% 48% 23% 42% 32% 26%
  24. 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
  25. 25. Our long-term challenges ■ Product awareness ■ Product perception ■ Product vs. Packaging
  26. 26. Why Missouri? ■ Top 10 State for Doing Business (Pollina) ■ Top 10 best corporate tax index (Tax Foundation) ■ Top 10 best regulatory climate (Forbes) ■ Top 10 lowest business energy costs (Small Biz Council) ■ Top 10 state for new job creation in 2013 (Bureau of Labor Statistics) ■ Top 10 in technology job growth (Tech America Foundation) ■ Top 10 infrastructure and transportation systems (CNBC) ■ Top 10 in higher-education degree output (US Chamber) ■ AAA bond rating for 24 straight years (Moody’s, S&P, Fitch) ■ “Most Aggressive” (CBRE Economic Incentives Group) ■ $250 billion economy that’s 4th-most diverse (BEA)
  27. 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
  28. 28. Christopher Chung President and CEO Missouri Partnership chris@missouripartnership.com

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