Embed Size (px)
DESCRIPTION
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.
Citation preview
Marketing Missouri to the World
Warrenton Chamber of Commerce
January 14, 2014
What is economic development?
Keep and grow
existing businesses
Help launch
new businesses
Recruit expanding and
relocating businesses
Where does the Partnership fit in?
Keep and grow
existing businesses
Help launch
new businesses
Recruit expanding and
relocating businesses
■ 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
Our history
■ 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
Our mission
Our deliverables
Marketing
Elevate Missouri’s
profile and image
Sales
Consummate
business
recruitment wins
Business
Development
Generate
opportunities to
compete
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
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)
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)
Our results
Results and Cost-of-Sales Overview
2011 2012 2013
Recruitment wins 11 18 14
Jobs 1,400 1,127 1,749
Payroll $90 mm $57 mm $81 mm
Cap-ex $224 mm $187 mm $249 mm
Funding invested $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
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
Our return-on-investment
■ Raise awareness and influence perceptions
■ Develop and leverage “buy-side” relationships
■ Contribute to improvement of our product
Our strategy – Marketing
■ Focus on impeccable customer service
■ Assemble the right team, every time
■ Advocate for the deal
Our strategy – Recruitment
■ 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
Site selection in a nutshell
MARKETING
SALES
■ Market-driven
– E.g. Distribution centers
■ Talent-driven
– E.g. Biotech, information technology
■ Cost-driven
– E.g. Manufacturing, food processing
Site selection – The strategies
What matters to companies?
Source: Area Development 27th Annual Corporate Survey
2011 2012 2013
Labor costs 2nd 2nd (tie) 1st
Highway accessibility 1st 1st 2nd
Availability of skilled labor 7th 2nd (tie) 3rd
Availability of ICT services 14th 13th 4th
Real estate costs 4th 5th (tie) 5th
What matters to companies?
Source: Area Development 27th Annual Corporate Survey
2011 2012 2013
Energy availability & costs 9th 7th 6th
Corporate tax rate 6th 4th 7th
Available existing buildings 10th 15th 8th
Tax exemptions 3rd 8th 9th
Labor climate 11th 10th 10th
■ 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?
What are the odds of getting a look?
■ 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
Site selection – Key selling points
Where are the deals coming from?
Prospect/
inquiry
Our pipeline
Contact Active
project Win
“Inactive”
“Dead”
“Lost”
Interested
in Missouri
with current
defined
facility need
Interested in
Missouri but
no current
facility need
defined
Any and all
engagement
with potential
investors
Pipeline snapshot
12/31/2012 12/31/2013
Active Projects 76 93
New Jobs 21,400 16,800
New Annual Payroll $747mm $607mm
New Investment $8.5bb $5.7bb
% from Consultants 54% 51%
% involving FDI 32% 34%
Prospects/Inquiries 119 187
Pipeline snapshot
12/31/2012 12/31/2013
Active Projects 76 93
Sourced by MP 29% 42%
Sourced by partner 48% 32%
Referred by DED 23% 26%
■ Since 2010, the Partnership has converted approximately 10 percent of its pipeline
■ Why do we lose?
Real estate
Incentives
Operating climate
What are my odds of winning a deal?
■ Product awareness
■ Product perception
■ Product vs. Packaging
Our long-term challenges
■ 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)
Why Missouri?
■ 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
Why Missouri Partnership?
