Spring 2006 issue of Horizons

FEATURE ARTICLE

State of Missouri Outlook

Missouri's Economic Development Director Pins Growth to Aggressive Marketing of State

Missouri's success at attracting out-of-state firms will rely more heavily on marketing the state in targeted national markets where major corporations and firms are short on growing room, according to Gregory Steinhoff, direc- tor of the Missouri Department of Economic Development (DED). Steinhoff

and his team in Jefferson City are assembling a package of programs designed to boost Missouri's profile out of state. Notwithstanding this push to attract out-of- state businesses, the state is committed to assist Missouri business owners with in-state growth opportunities.

Gregory Steinhoff

During a recent interview with Horizons, Steinhoff said his team is work- ing on tackling several economic business challenges for the state, but he believes Missouri's success will come from following a few key strategies. “In order for Missouri businesses to succeed, we need to be effective in three areas,” Steinhoff said. “We will focus on promoting entrepreneurism by assisting everyone from small businesses to major industry; putting more DED representatives in the field to communicate with business own- ers; and creating new funding mechanisms to finance professional busi- ness attraction and recruitment efforts. Our goal is to do a better job of selling Missouri for what it is - a great place to conduct business, find an educated labor force, buy affordable energy, and have an enjoyable quality of life with great educational opportunities and an attractive cost of living.”

Steinhoff explained how the first goal - building and supporting entrepreneurism - will be supported by achieving the DED's other two primary objectives. “First we need to help the businesses we have here in Missouri,” he said. “More than 80 percent of the state's job growth comes from businesses that choose to expand in the state. We are increasing the number of DED representatives in the field in order to bring the department closer to the communities we serve. We want to know everything Missouri business owners need to succeed. We want to educate them about various tax incentives and job growth initiatives that could impact their bottom line. We want them to know about special low interest rates and small business loan programs because these are the tools that will help them grow their businesses and create more jobs.” On a macro scale, Steinhoff said, he would like the DED representatives to compare information within Missouri by region. For example, the Kawasaki plant in Maryville in the northwest corner of the state is expanding by 300 jobs, but the labor pool in that region isn't big enough to support the demand. Meanwhile, Steinhoff added, there are not enough good paying jobs in Missouri's Bootheel region. “We need to take the Department of Economic Development to all of the state's business communi- ties, like Moberly, Kirksville and Macon as well as St. Louis, Kansas City and Springfield,” Steinhoff said. These virtual “house calls on business owners” can help bridge gaps by using state resources on a macro scale, making specific regions even more attractive to out-of-state businesses. Selling the “attraction factor” is an effort that needs to be stepped up, Steinhoff said, and it's the focus of the DED's third strategy for bringing more business to Missouri. “There are 500 people employed in various state level economic development positions throughout Missouri, but we do not currently have individuals promoting the state to site selection decision makers in the major metropolitan areas,” Steinhoff said. “Currently, we are not in a position to meet regularly with site location managers and

5 • spring 2006 issue