warrenton area chamber of commerce 14 jan 2014 (missouri partnership overview)

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?

Christopher Chung

President and CEO

Missouri Partnership

chris@missouripartnership.com