missouri partnership annual report 2o11

Transcription

1 missouri partnership annual report 2o11

2 recruiting business to missouri page 4 marketing: raising missouri s profile page 10 marketing: reaching the key audience page 18 building strategic partnerships at home page 24 finance and governance page 28 about missouri partnership page 32

3 a message from the chairman and the chief executive officer The year 2011 marked the fourth full year of operations for the Missouri Partnership as the state s official organization for marketing Missouri and recruiting new business to the Show-Me State. Over the year, the Partnership was pleased to play a role in a number of business-recruitment achievements that led to the creation of new jobs in Missouri s communities. This success, achieved in concert with an ensemble of partners in the public and private sectors, at the state and local level, came against the backdrop of what many saw as a persistently challenging economic climate for deal-making. In fact, headwinds remain substantial as we proceed into Continued unease about the potential impacts of financial turmoil in Europe, along with lower confidence in domestic political institutions to tackle issues like the national debt ceiling and federal budget, have contributed to heightened cautiousness among America s corporate decision-makers. Companies continue to sit atop unprecedented cash reserves amidst all the uncertainty; many believe this uncertainty will continue through 2012, pending the outcomes of the national election cycle. Consequently, it should come as no surprise to hear corporate site selectors report that many companies are still hesitant to pull the trigger on new facility investments. The number of projects involving a company establishing new operations as opposed to consolidating or relocating existing operations as a cost-reduction strategy remains at lower levels than the pre-recession years. Yet glimmers of hope are visible. Over the past two years, the Partnership, together with its partners from around the state, has helped to attract two dozen business recruitment wins for Missouri, resulting in nearly 3,800 new jobs, more than $200 million in new annual payroll, and more than $300 million in new capital investment. Companies like SyMyCo, Duraseal Pipe Coatings, Applebee s, AeroTech, and Data Systems International all announced plans this past year to relocate to or expand in Missouri, adding to the new facilities that companies like IBM, Nordic Windpower, Unisys, Alpla, and VestFiber announced throughout Though competition remains fierce for the attention of companies evaluating multiple states for potential new jobs and investment, the Missouri Partnership is maintaining an aggressive stance in marketing Missouri to convince companies of the benefits of doing business here. As it aligns its broad array of marketing activities with Missouri s new strategic plan for economic development, the Partnership will keep investing heavily in initiatives to deliver the message both domestically and internationally about Missouri s advantages as a business location, so that Missouri remains a compelling choice for companies looking to expand. Already, in just the brief history of the Partnership, the organization appears to have made the kind of strong impression on corporate decision-makers that will position the state favorably as a potential location for new facility investments. In fact, in 2011, the Partnership was recognized by two prominent and influential third-party groups Development Counsellors International and the Site Selectors Guild as one of the nation s best-inclass economic development efforts at the statewide level. The positive acknowledgments we are receiving, coupled with the results we are achieving with our partners, give us reason to be optimistic about the coming year. As we close the books on 2011, the Missouri Partnership is committed to executing, with utmost excellence, its dual missions of marketing and business recruitment, and we look forward to a bright year ahead in Sincerely, Randell Wallace Chairman of the Board, Christopher M. Chung Chief Executive Officer

4 recruiting businesses to

5 missouri trends in activity business recruitment pipeline total recruitment wins new missouri businesses in 2011

6 The goal of the Missouri Partnership is to attract new jobs, payroll, and investment to communities across the state by successfully competing for business recruitment projects. The Partnership promotes Missouri s advantages over locations in other states, while also navigating business incentive negotiations, regulatory permitting issues, and other important factors in the investment decision. Economic development always relies upon the efforts of multiple partners at state, regional, and local levels. The Missouri Partnership remains fortunate to collaborate with such partners, and is pleased to be one of many team players who assist in landing business investment projects to Missouri. In addition to the projects won, the Missouri Partnership closed the year with a number of projects currently in various stages of progress, getting 2012 off to a productive start. trends in activity Statistics reflect all projects sourced in 2011, not the current active project pipeline. 58% Companies deals driven by... 42% Consultants Deals involving... 25% Foreign direct investment Deals sourced by... 68% Missouri Partnership and Department of Economic Development 13% 9% 32% Regional/local partner organizations Projects by industry 3% 10% 31% 13% 7% 15% Advanced manufacturing Energy solutions Transportation & logistics Information technology Financial & professional services Biosciences Health sciences and services Other potential projects (active deals) as of 2011 year-end: 74 potential new jobs in the pipeline as of year-end: 14,527 potential new annual payroll in the pipeline as of year-end: $375,794,072 potential new capital investment in the pipeline as of year-end: $2,236,699,686 6 recruiting business to missouri

7 business recruitment pipeline at year-end Wins Prospective projects* Active projects* 12/31/ /31/ /31/ /31/ *Prospective projects are those which the company has confirmed capital investment plans for a new facility within the next two years and expressed interest in Missouri. The project is considered Active after the company has formally requested a location search, incentive commitment, or other formal proposal. total recruitment wins ,273 new jobs 1,400 $23 million $113 million NEW ANNUAL PAYROLL $90 million $28 million $86 million NEW capital investment $224 million 7

8 new missouri businesses in 2011 Aero-Tech Laboratory Equipment Company LLC aero-tech Laboratory equipment company, llc 6 new jobs; $187,200 annual payroll $1,445,000 capital investment Partners: Lebanon Regional Economic Development, Inc. Aero-Tech, an upstate New York company, moved its headquarters and operations to Lebanon. The company manufactures its own unique product line, precision instrumentation equipment for aerosol development and production control, and also offers many replacement parts for all production and packaging equipment for the pharmaceutical, food, and manufacturing industries. The company chose to locate in mid-missouri in order to centralize its operations for customers across the U.S. Applebee s 340 new jobs; $28,339,000 annual payroll $16,500,000 capital investment Partners: Economic Development Corporation of Kansas City Applebee s International is a leader in the U.S. casual dining industry, with more than 2,000 locations across the U.S. alone and more than $1.2 billion in annual revenues. The company is owned by California-based Dine Equity. Applebee s announced in May that it would relocate its U.S. headquarters from Lenexa, Kansas, to Kansas City, based primarily on real estate and incentive factors. Card Compliant 36 new jobs; $3,240,000 annual payroll $1,000,000 capital investment Partners: Economic Development Corporation of Kansas City Card Compliant specializes in technology supported solutions for regulatory and financial compliance in the prepaid and store value card industry. In August, the company announced plans to relocate and expand its headquarters and IT operations to Kansas City, citing the need for additional space for growth. emerald automotive 581 news jobs; $23,335,865 annual payroll $175,000,000 capital investment Partners: St. Louis Regional Chamber & Growth Association, Missouri Technology Corporation, City of Hazelwood Emerald Automotive announced in October that it will produce a light-weight Extended- Range Electric Vehicle (E-REV) in Hazelwood. This hybrid van will be used primarily for delivery purposes. The technology in the product has the potential for widespread application beyond automotive, including aerospace and consumer electronics. Emerald Automotive chose Missouri due to its automotive heritage, central location, and partner mind set. Hughes Hubbard & Reed LLP 40 new jobs; $5,000,000 annual payroll $2,727,865 capital investment Partners: Economic Development Corporation of Kansas City Hughes Hubbard & Reed is a New York based law firm with offices in Washington, D.C., Los Angeles, Miami, Jersey City, Paris, and Tokyo. Hughes Hubbard & Reed works in over 30 specialized practices, including niche practices such as art law and a credit card practice. In December, the firm announced plans to open a new office at 2345 Grand Avenue in Kansas City, and will be the only East Coast firm with a significant presence in Kansas City. olympic steel 15 new jobs; $557,250 annual payroll $1,300,000 capital investment Partners: Kansas City Area Development Council Olympic Steel is a leading U.S. metals service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel, and aluminum products. Headquartered in Cleveland, Ohio, the company operates from 16 facilities. The Kansas City facility will serve as a satellite for Olympic Steel s existing operations in Bettendorf, Iowa, and is part of its temper mill product expansion strategy. In a release, the company called the Kansas City facility a new foothold in the important farm belt. 8

9 Centralized supply chain services 40 new jobs; $4,348,000 annual payroll $1,280,000 capital investment Partners: Economic Development Corporation of Kansas City Centralized Supply Chain Services (CSCS) is a franchisee-owned cooperative that provides support and purchasing services for Applebee s and IHOP franchise locations nationwide. In May, the company announced that it would follow Applebee s International in moving its corporate headquarters to Kansas City, in order to continue realizing operating efficiencies from a co-location. Data Systems International, Inc. 160 new jobs; $17,600,000 annual payroll $15,300,000 capital investment Partners: Economic Development Corporation of Kansas City Data Systems International (DSI) is a provider of mobile technology solutions for a variety of corporate clients. Looking for a location that would attract and retain a topquality workforce, the company announced plans in November to move its corporate, administrative, and IT personnel from Overland Park, Kansas, to downtown Kansas City, where the company will continue to expand its operations. duraseal pipe coatings 80 new jobs; $2,414,880 annual payroll $8,447,600 capital investment Partners: Economic Development Corporation of Kansas City Duraseal Pipe Coatings Company, LLC is a company that applies an anti-corrosion coating to pipe used for the hydraulic fracturing process in the oil and gas industry. Duraseal decided in late August to relocate its headquarters and coating operations from Olathe, KS to a building at the former Richards-Gebaur Air Force Base in Kansas City. The company will be relocating about 35 existing employees in the first quarter of 2012, while expanding by another 45 or so in the next three years. symyco 81 new jobs; $3,599,964 annual payroll $850,000 capital investment Partners: St. Louis Regional Chamber & Growth Association, Missouri Technology Corporation, Bio-Research & Development Growth Park, St. Louis County SyMyCo is a subsidiary of New Delhi, Indiabased Symbiotic Sciences Ltd. Symbiotic Sciences is a joint venture partner with Mycorrhizal Applications Inc. of Oregon. The company makes products to reduce the need for chemical fertilizers and increase crop yield and resistance to weeds and disease. The world-class plant science resources in St. Louis influenced the company s location decision. touton usa 21 new jobs; $1,429,995 annual payroll $587,600 capital investment Partners: Kansas City Area Development Council Touton USA is the U.S. subsidiary of the French agricultural commodities trading firm Touton S.A. In February, the company announced plans to relocate its U.S. headquarters from Indianapolis to Kansas City, citing cost and logistical advantages of its new home in KC. 9

10 MARKETING: RAISING MISSO

11 URI S PROFILE Advertising earned media online and digital marketing missouri perception survey

12 n the contest for supremacy in advanced manufacturing, Missouri is a muscular contender with its eye on the crown. Manufacturers in aerospace, chemicals, electronics, plastics, biotechnology and a host of other industries find that Missouri has the brawn and brains it takes to compete. Rising through the ranks of states that shine as the best spots for locating a business, Missouri is training hard and looking more and more like a champion. This year, for example, Missouri ranked ninth in the State Economic Competitive Index published by the American Legislative Exchange Committee (ALEC) up from 15 th in 2010 and 23 rd in Just last month, Pollina Corporate Real Estate named Missouri the eighth-most pro-business state. It is the second year in a row that Missouri has been named to Pollina s Top 10 list. According to Forbes, Missouri s regulatory environment is the seventh-best in the nation. Missouri ranks fifth on the Tax Foundation s an industry week supplement produced by missouri partnership in conjunction with ameren ue focused energy. for life. MORE AND MORE COMPANIES ARE STARTING TO LOOK TO MISSOURI AS A BUSINESS DESTINATION. AND IT S NOT JUST BECAUSE OF LOW TAXES. IT S BECAUSE OF THE WHOLE BUSINESS LANDSCAPE. MISSOURI HAS ~ THE 7 TH BEST TRANSPORTATION NETWORK IN THE U.S., INCLUDING THE COUNTRY S 2 ND AND 3 RD LARGEST RAIL TERMINALS FOR ECONOMICAL SHIPPING TO BOTH COASTS ~THE 3 RD LOWEST BUSINESS ENERGY RATES IN THE U.S., ALLOWING BUSINESSES TO KEEP MORE OF WHAT THEY EARN ~ THE 5 TH LOWEST BUSINESS COSTS, INCLUDING THE COST OF LABOR, MAKING IT EASIER FOR COMPANIES TO SAVE, EVEN AS THEY RE EXPANDING ~ AND, OF COURSE, THE 5 TH LOWEST CORPORATE INCOME TAX RATES, HELPING BUSINESSES BREATHE A LITTLE EASIER. IF THE LANDSCAPE DOESN T LOOK THAT GOOD IN YOUR CURRENT LOCATION, IT MAY BE TIME TO LOOK TO GREENER PASTURES. START HERE J A Y N I X O N, G O V E R N O R Read interviews with Missouri CEOs at or scan using your smart phone here.* Or start the conversation about bringing your business to the state by calling the Missouri Partnership at * FREE app available at Patrick Leinert President Leinco Technologies St. Louis, Missouri To learn more about doing business in Missouri, go to or scan here If your business isn t as healthy as the products you make, you might be in the wrong place. Leinco Technologies can tell you. This fast-growing company considered a move to Florida last year, but opted to expand in Missouri for its low business costs and ready work force. Now in a brand new 30,000-square-foot facility, Leinco is creating therapeutic antibodies for preclinical trials, so the whole world will be a healthier place. Could your company use a healthy boost? STarT here J A Y N I X O N, G O V E R N O R Use your smart phone to download your Free app: Mass marketing has the power to raise Missouri s visibility in the business world and to spotlight the state s many advantages. While this type of marketing may not immediately generate business development leads, it serves as an important and necessary foundation for getting Missouri on the list for consideration for future investment opportunities. Advertising The Missouri Partnership ran two different ad campaigns in The first series ran through Media Networks, Inc. (MNI) a collection of publications including Bloomberg Businessweek, Entrepreneur, Fast Company, Forbes, Fortune, and Money and in sister publications within Crain s and the American City Business Journals (ACBJ) family. Ads in the first series feature successful Missouri businesses across a variety of industries and locations in the state, as well as business leaders who explain what attracted them to Missouri. The second series ran in Southwest Airline s Spirit magazine. These ads are more light-hearted while still promoting Missouri s business advantages, and feature a link to a video slideshow that further showcases Missouri. Other print efforts in 2011 include special advertising sections in the trade publications North American Clean Energy and Industry Week. Advertising sections allow Missouri communities to buy ad space for a significantly reduced cost, as well as being featured in the editorial copy. advertising campaign: special sections How Missouri is going the distance for Manufacturing business ADVERTISING CAMPAIGN: OTHER L O O K I N G F O R A B U S I N E S S C L I M AT E T H AT S A L I T T L E L E S S TA X I N G? START HERE invest in the midwest Chicago Tribune advertising section, featuring a short article and a full-page ad. Impressions: 1.3 million TOTAL IMPRESSIONS FOR AD SUPPLEMENTS: 153,100 north american clean energy Month: March Topic: Clean energy Advertising partners: Armstrong Teasdale, City of Hazelwood, Clean Line Energy Partners, Moberly Area Economic Development Corporation, University of Missouri, Missouri CORE, Central Missouri Economic Development Alliance, Cuba Development Group, Kansas City Area Development Council, Joplin Regional Partnership Impressions: 33,000 Industry Week Month: September Topic: Advanced manufacturing Advertising partners: St. Louis Regional Chamber & Growth Association, City of Farmington, Cape Girardeau Area Magnet, Springfield Regional Economic Partnership, Joplin Regional Partnership, Central Missouri Economic Development Alliance, Moberly Area Economic Development Corporation, Northeast Missouri Development Partnership, Ameren Impressions: 120,100 WANT YOUR BUSINESS TO BE HEALTHY AS YOUR PRODUCT? START HERE. lowest business energy rates in the U.S. lowest corporate income tax lowest business costs, including the cost of labor Next Generation Pharma Full-page ad in the January issue of Next Generation Pharma. Impressions: 28,500 TOTAL IMPRESSIONS FOR FULL-PAGE ADS: 16,405,296 TOTAL IMPRESSIONS FOR 2011 ADVERTISING CAMPAIGN: 16,558, marketing: raising missouri s profile

13 ADVERTISING CAMPAIGN: MNI, ACBJ, AND CRAINS Companies featured in Missouri ads, from left to right: Bodine (Troy), Integrated Wind Systems (Cape Girardeau), Jack Henry & Associates (Monett), Smith Electric Vehicles (Kansas City), EaglePicher Technologies (Joplin), and World Wide Technology (St. Louis) START HERE. WANT TO PUT YOUR BUSINESS ON THE ROAD TO SUCCESS? WANT TO BE A MANUFACTURING SUPERPOWER? START HERE. Bob Lloyd, President Bodine Aluminum of Troy, Missouri, is a Bodine Aluminum Troy, Missouri superpower. The 100-year-old company Hugh Gilmore President and CEO Integrated Wind Energy Services Cape Girardeau, Missouri WANT BUSINESS BENEFITS YOU CAN BANK ON? Getting your product to market is no small thing. But being in Missouri can really help lighten the load. Missouri is just a day or two away from most major U.S. markets, which saves companies like Integrated Wind Energy Services a bundle. And, because it s a top 10 state for both regulatory friendliness and transportation infrastructure, Missouri is in a position to put you on the road to success, too. Does that sound like a place your business needs to be? makes the cylinder heads and cylinder blocks for every Toyota built in North America. Missouri is a super power, too, providing companies with the support they need to keep employees trained and on the job. You can t get that just anywhere. If you want to be a superpower, you have to start here. Jack Prim CEO Jack Henry & Associates Monett, Missouri START HERE. WANT TO MAKE A POWER PLAY FOR YOUR BUSINESS? WANT TO SAVE MONEY AND SAVE THE PLANET? No matter what your business, you need Bryan Hansel, CEO, Smith Electric Vehicles U.S. as much in the plus column as you can get. So it s important to be in a place that Kansas City, Missouri Randy Moore President EaglePicher Technologies Joplin, Missouri In Missouri we believe you shouldn t have the environment. The two go hand in hand. that place for Jack Henry & Associates Smith Electric Vehicles of Kansas City, since 1976, helping the company grow Missouri is proving that point by using from a 2-person operation to one of the what s available known technology, an largest, most respected names in banking existing local supply chain, and a stable automation software. The company still energy source to drive the future of trans- banks on Missouri s business benefits, but portation. All it takes is the right business now it sells its services in all 50 states. environment. Want to plug into it? Want that kind of reach for your business? STArT here START HERE lowest business energy rates in the U.S. START HERE. WANT TO LOG IN TO A BETTER BUSINESS NETWORK? It doesn t do any good to have power, if you can t use it. You have to be in the David L. Steward Founder and Chairman of the Board World Wide Technology, Inc. St. Louis, Missouri START HERE. power, too. Want to tap into it? It takes more than a few million high-speed lines to run a dependable business. It takes people who are as connected to one another as they are to the data they re managing. That human connection is the fiber and strength of World Wide Technology, one of the largest systems integrators in the world. Founded in 1990, this company has leveraged Missouri s highly-ranked IT workforce and low business costs to beat back the recession. Could your business use a couple gig of that? StARt here STaRT here right place. Missouri has been that place for EaglePicher since 1916, giving the company and the country some of its to choose between saving a buck and saving can get you there. Missouri has been StARt here START HERE. most heroic moments. It was EaglePicher batteries that brought Apollo 13 home and sent the first satellite message to Americans. Now at the forefront of energy storage solutions, the company has the power to transform the way we live and work. Missouri has that kind of lowest business costs in the U.S. lowest business costs, including the cost of labor lowest business energy rates in the U.S. lowest business energy costs, including fuel lowest corporate income tax index lowest corporate income tax lowest business energy rates in the U.S. lowest business costs, including the cost of labor lowest corporate income tax index lowest business energy costs lowest business costs, including the cost of labor best corporate income tax index lowest business energy rates best transportation system lowest corporate income tax index lowest corporate income tax index lowest business costs, including the cost of labor J AY N I X O N, G OV E R N O R J AY N I X O N, G OV E R N O R Read the interview with Bodine s Bob Lloyd at or scan here Use your smart phone to download your FREE app: J AY N I X O N, G OV E R N O R Download your FREE app at Read the interview with Jack Prim at or scan here. J AY N I X O N, G OV E R N O R J AY N I X O N, G OV E R N O R read the interview with Bryan hansel at or scan here Read an interview with hugh Gilmore at or scan here. Download your FREE app at Use your smart phone to download your FrEE app: Read the interview with Randy Moore at or scan here. Download your FREE app at Read the interview with David Steward at or scan your smart phone here. Download your FREE app at Boston MNI (2x): 245,360 impressions ACBJ (4x): 81,860 impressions minneapolis MNI (2x): 164,400 impressions ACBJ (4x): 57,280 impressions san jose/santa clara MNI (2x): 90,940 impressions ACBJ (4x): 45,824 impressions Chicago MNI (2x): 403,460 impressions Crain s (4x): 180,000 impressions los angeles MNI (2x): 500,940 impressions ACBJ (4x): 113,432 impressions Atlanta MNI (2x): 233,560 impressions ACBJ (4x): 159,740 impressions ADVERTISING CAMPAIGN: SPIRIT MAGAZINE If you are working in any growth industry, you should be working in Missouri. Missouri has one of the most diverse economies in the U.S. and the business assets to support all types of industry. Best of all, Missouri s crazy low costs can make your company more profitable! lowest business energy costs in the U.S. lowest corporate income tax rate lowest business costs, including the cost of labor So why play eenie-meenie when you could have MO? Call today to learn more about doing business in Missouri or visit Leaders in all types of industries are finding their way to Missouri, because Missouri finds a way for business. Not only does Missouri have a stable, low-cost environment, it also has the 7th best transportation network in the country and a larger workforce than most other states. No matter what your business, you simply won t find a better value anywhere. lowest business energy costs in the U.S. Opportunity is knocking in Missouri, where a really big work force and little tiny costs lowest corporate income tax rate lowest business costs, including the cost of labor combine to give companies large and small an edge in today s market. Missouri offers the lowest business costs, the lowest business energy costs, and the lowest You can bounce around the country for an awfully long time looking for a place to grow your business. Or you can move to Missouri and save time and money right from the start. Missouri Low costs and high quality. You really can have both in Missouri! Call corporate income tax index, opening the door for real and sustained growth. If you re seri- has the for more information or follow the leaders to ous about growing your company, please give us a call or a knock-knock. We d love to to fact, Missouri ranks in the have you join us. No joke lowest business costs* and lowest business energy costs+ in the nation. In for all the things that matter to business most. So why eenie-meenie when you could have MO? Bounce on over to Missouri and start growing your company today. MO information at * CNBC, Small Business and Entrpreneurial Council, 2010 J AY N I X O N, G O V E R N O R Get a FREE video tour of Missouri right now using your smart phone! Download the free app from J AY N I X O N, G O V E R N O R to scan the QR tag! Get a FREE video tour of Missouri right now using your smart phone! Download the free app from J AY N I X O N, G O V E R N O R to scan the Microsoft tag! Get a FREE video tour of Missouri right now using your smart phone! Download the free app from J AY N I X O N, G O V E R N O R to scan the mobile tag! Get a FREE video tour of Missouri right now using your smart phone! Download the free app from to scan the mobile tag! Each ad that ran in Spirit magazine reached an audience of 3.2 million, for a total of 12.8 million impressions. 13

14 Earned media and public relations EARNED MEDIA examples Another method to improve awareness of Missouri s business-friendly climate is through national and business media coverage. The Missouri Partnership works with the St. Louis-based agency Black Twig Communications to pitch positive stories to newspapers, magazines, blogs, and industry news websites. Missouri s PR efforts are also used to write guest editorials and bylined articles for various trade publications, showing Missouri as a thought leader in targeted industry sectors. Online and digital marketing As the web becomes an ever more important tool in marketing, the Missouri Partnership continues to evolve its digital marketing strategy saw the launch of a mobilefriendly version of the Missouri Partnership website, in addition to improvements and updates of the website s content. In an effort to increase website traffic, the Missouri Partnership places advertisements through Google AdWords. The ads appear on Google s search results page, but only when the viewer has used economic development keywords in a Google search. Social media remains an important part of the marketing world, as seen by Missouri s growing number of followers on Twitter. Social media has other uses too; this year the Missouri Partnership began a LinkedIn discussion forum for in-state partners. From social media to e-newsletters, the number of viewers for Missouri content has steadily increased in This upward trend demonstrates the success of our current efforts, and the importance of continuing to reach out to a digital audience. audience reached through out of state earned media: 13,545,924 9,352,737 online and 4,193,187 in print audience reached through bylined articles: 176,573 74,323 online and 102,250 in print audience reached through in-state earned media: 501, ,670 online and 23,227 in print total audience reached: 14,221, marketing: raising missouri s profile

15 DIGITAL MARKETING: TWITTER FOLLOWERS ,194 1,747 Followers on Twitter 475 2,155 2,616 Click-throughs on links posted through twitter DIGITAL MARKETING: E-NEWSLETTER READERS 2,472 4,118 5,246 E-newsletters that were opened DIGITAL MARKETING: WEBSITE VISITORS 17,328 20,329 26,020 Total visitors to 10,770 15,182 19,755 Unique visitors to DIGITAL MARKETING: google adwords traffic 3,928* 6,426 Visitors to the Missouri Partnership website from Google adwords *Missouri Partnership began using Google AdWords in June

16 missouri perception survey The Missouri Partnership worked with Washington University in St. Louis to conduct a survey among company executives and business owners to gauge Missouri s image in the business world. While advertising and other similar marketing activities may not have an immediate impact on generating business leads, they can and do affect how Missouri is perceived by business leaders and whether Missouri is considered for future expansions. This survey is a way to evaluate how successful the Missouri Partnership has been in promoting the state, and to identify areas where perceptions about Missouri can be further improved. The survey was conducted in December 2011 from a pool of more than 400 respondents. missouri perception survey Which of the following states, if any, would your company consider for future expansion, consolidation, or relocation? 42% of respondents chose None of the above. 25% Please rate Missouri on each site selection factor below. Very Poor 21% 25% 21% 22% 24% 25% 29% 23% 22% 27% 32% Very Good Don t Know Transportation infrastructure 9% 4% 28% 38% 27% 46% Labor costs 2% 3% 25% 39% 32% 43% Labor quality 1% 5% 27% 33% 34% 45% Regulatory environment 2% 4% 31% 32% 32% 46% Tax climate 2% 5% 31% 31% 32% 45% Energy availability and costs 1% 4% 28% 37% 29% 45% State and local incentives 2% 5% 30% 31% 32% 49% Quality of life 2% 5% 27% 30% 36% 40% What geographic region do you most closely associate with Missouri? Northern (5%) Midwestern (52%) Southern (14%) Eastern (20%) Western (9%) Which of the following state brands/taglines do you Believe is associated with Missouri? Give Your Business the Upper Hand (6%) Wide Open for Business (25%) Real People. Real Opportunity. (36%) As Big as You Think (9%) The State of Perfect Balance (17%) Life Changing (7%) 16 marketing: raising missouri s profile

17 How likely is it that your company will expand, consolidate, or relocate operations to another state within the next 24 months? Very likely (17%) Somewhat likely (26%) Neither likely nor unlikely (16%) Somewhat unlikely (6%) Very unlikely (35%) What are the top three factors that would significantly influence your decision to relocate or expand to another state? Transportation infrastructure (22%) Labor costs (42%) Labor quality (30%) Regulatory environment (20%) Tax climate (52%) Energy availability and costs (24%) State and local incentives (47%) Quality of life (35%) What is your overall impression of Missouri as a potential expansion, consolidation, or relocation site? Very unfavorable (7%) Somewhat unfavorable (10%) Neither favorable nor unfavorable (41%) Somewhat favorable (33%) Very favorable (9%) Which of the following statements best describes your company s most recent decision to expand/relocate to another state? We expanded/relocated to the state with......the best tax incentive package (19%)...an above average tax incentive package (17%)...an average tax incentive package (8%)...a below average tax incentive package (1%) Don t know/does not apply (55%) 17

18 MARKETING: reaching the

19 key audience conferences & Trade shows decision-maker outreach foreign direct investment

20 The other cornerstone of Missouri Partnership s marketing strategy is to directly engage with the people who influence where new business investment is located. While advertising and public relations can promote Missouri to a wide audience, additional tactics are needed for forging face-to-face relationships with decision-makers. Strong relationships are vital for Missouri s consideration as a location for new investment opportunities. missouri partnership s activities in 2011 INDUSTRY CONFERENCES AND TRADE SHOWS Conference attendance and sponsorships continue to be highly successful ways of building and maintaining relationships with decision-makers. For example, this was the first year sponsoring the Next Generation Pharmaceutical Manufacturing Summit, which gave the Missouri Partnership an opportunity to meet one-on-one with several biopharma companies. Conferences can also serve as an opportunity for networking with other state-level business recruitment groups to observe other states best practices. For instance, Missouri Partnership served on a panel with other state economic development leaders at the Norfolk- Southern Industrial Development Forum. IAOP Trade shows also provide opportunities for direct engagement with company representatives and decision-makers, whether Missouri Partnership is exhibiting or only attending. At shows where the Partnership exhibits, community partners use the cooperative marketing program as a costefficient way to share booth space. Meanwhile, the Partnership benefits from the presence of knowledgeable partners and additional attendees to help staff the booth. KCCI Investment Seminar 20 marketing: reaching the key audience

21 Cardinals vs. Cubs Royals vs. Yankees FDI brunch IAMC Fall Solar Power International RILA hospitality events for decision-makers trade shows and conferences 21

22 This year, Missouri exhibited at RILA Supply Chain Conference, IAOP Outsourcing World Summit, Windpower Expo, and Solar Power International. DECISION-MAKER OUTREACH One of the most important audiences for Missouri Partnership is third-party consultants, including site selection consultants, facility location advisors, international trade commissioners, and others. This group is the source of almost half of Missouri s business recruitment projects. Recognizing the significance of this group, the Partnership held a number of events throughout the year to reach out specifically to consultants, including briefing luncheons and hospitality events in key markets. Many of these events were part of the Partnership s cooperative marketing program, allowing community partners to participate as well. The Partnership also assisted with community-led outreach events and in-state familiarization tours. decision-maker outreach missouri hospitality event for L.A.-area site selectors March 22 / Los Angeles, CA briefing for dallas-area site selectors April / Dallas, TX CoreClub reception at corenet global spring summit May 1 / Chicago, IL missouri vip dinner at iamc spring forum May 3 / Albuquerque, NM briefing for new york-area site selectors May / New York, NY missouri hospitality event for new york-area site selectors May 12 / New York, NY briefing for chicago-area site selectors August / Chicago, IL briefing for Foreign direct investment advisors August / Chicago, IL missouri hospitality event for chicago-area site selectors August 19 / Chicago, IL missouri vip dinner at iamc fall forum September 13 / Philadelphia, PA briefing for atlanta-area site selectors October / Atlanta, GA briefing for greenville-area site selectors December / Greenville, SC FOREIGN-DIRECT INVESTMENT OUTREACH The Missouri Partnership also works with the State of Missouri s overseas offices to promote the state on a worldwide scale, through business development meetings in foreign markets and attendance at international trade shows and conferences. For example, the director of Missouri s office in Korea provided an opportunity for a speaking role at the Korean Chamber of Commerce & Industry s investment seminar in Seoul this year. The Partnership was able to present to the nearly 150 Korean companies that attended the seminar. number of cooperative marketing events: 16 number of communities participating in cooperative marketing: marketing: reaching the key audience

23 trade shows and conferences in 2011 Norfolk-Southern Industrial Development Forum January / Dorchester, SC North American Veterinary Conference January / Orlando, FL Retail Industry Leaders Association supply chain conference February / Orlando, FL IAOP Outsourcing World Summit February / Indian Wells, CA European Wind Energy Conference March / Brussels, Belgium Hannover Messe April 4 8 / Hannover, Germany area development renewable energy forum April / Tulsa, OK CoreNet Global Summit April 30 May 2 / Chicago, IL and November 5 8 / Atlanta, GA Korean Chamber of Commerce & Industry investment seminar April / Seoul, Korea International Biomass Conference and Expo May 3 5 / St. Louis, MO Industrial Asset Management Council Forum May 3 / Albuquerque, NM and September 13 / Philadelphia, PA Windpower Expo May / Anaheim, CA IMN Data Centers Forum May / Chicago, IL area development consultants forum June 6 8 / New Orleans, LA and December 4 6 / Austin, TX MEDC Lakeside with the Locators June / Lake of the Ozarks, MO port logistics conference (with kcadc) June / Chicago, IL BIO International June / Washington, DC RETECH September / Washington, DC Midwest US-Japan Association Annual Conference September / Tokyo, Japan next generation pharmaceutical manufacturing summit October 4 6 / Oujai, CA center for automotive research conference October / Dearborn, MI Solar Power International October / Dallas, TX 7x24 Exchange November / Phoenix, AZ WATEC November / Tel Aviv, Israel US Israel Health Care Conference November 29 / Chicago, IL targeted industry / audience Transportation and Logistics Biosciences (Animal Health) Transportation and Logistics Financial & Professional Services Energy Solutions Energy Solutions, Advanced Manufacturing Energy Solutions Site selection consultants Korean investment Energy Solutions Site selection consultants Energy Solutions Information Technology Site selection consultants Site selection consultants Transportation and Logistics Biosciences Energy Solutions Japanese investment Biosciences Advanced Manufacturing, Energy Solutions Energy Solutions Information Technology Energy Solutions Health Sciences and Services participation Attended Attended Exhibited Exhibited Attended Attended Attended Attended Attended Attended Sponsored Exhibited Attended Sponsored Attended Attended Exhibited Attended Attended Sponsored Attended Exhibited Attended Attended Attended 23

24 building strategic partne

25 rships at home strategic initiative cooperative marketing branding i-44 mizzou advantage hawthorn foundation

26 26 As the state s leading business recruitment and marketing organization, Missouri Partnership is in a position to offer unique insight and assistance to other Missouri organizations. Economic development relies on many collaborations, and by strengthening its partner organizations, the Partnership is also strengthening the state s overall ability to compete for new business investment opportunities. missouri strategic Initiative for Economic growth The Partnership is pleased to play a key role in implementing Missouri s new comprehensive economic development strategic plan, which was finalized in 2011 and developed chiefly by business leaders from around the state convened by Governor Jay Nixon. As one of the plan s eight core initiatives, the priority of marketing Missouri aggressively to select domestic and international audiences is seen as integral to the overall effort to grow Missouri s economy. The Partnership will continue to help elevate Missouri s visibility for new job creation and investment from both U.S. and overseas corporations. Cooperative Marketing As always, the Partnership opened many of its marketing activities to community partners. Through a cooperative marketing program, partner organizations can take advantage of booth space at trade shows, consultant-outreach events, and print advertisements at a much-reduced price, while the Partnership is able to extend its marketing efforts due to the cost-sharing model. Branding I-44 The Partnership collaborated with universities and EDCs along I-44 to begin building strategic partnerships at home working on a brand for the Missouri section of the highway. Interstate 44 runs through St. Louis, Rolla, and Springfield all places with activity in science and technology. Branding efforts will be developed over several years, but the group has already made significant progress in shaping Tech 44: The Ideas Highway. mizzou advantage The Partnership continues to increase its collaboration with the University of Missouri System, including the Mizzou Advantage program in Columbia. The goal of Mizzou Advantage is to heighten the university s prominence and stature in the academic, research, and business communities, primarily by focusing on the Columbia campus five centers of excellence in new media, food and nutrition, health and medicine, sustainable energy, and innovation. As Mizzou Advantage continues to gain momentum, the Partnership is tapping into the faculty and research expertise in the program to augment its marketing assets. The Partnership is also beginning to involve Mizzou Advantage in its business-recruitment efforts, by connecting prospective investors with the university and its network of resources. hawthorn foundation Missouri Partnership is now providing administrative support to the Hawthorn Foundation, which is the parent corporation of the Partnership. By assisting with various investorrelations duties that the Foundation formerly outsourced to a thirdparty, the Partnership is helping the Foundation to lower its operating costs, meaning that more of the funds that the Foundation raises from the private-sector can be used to further the work of the Partnership. Interstate 44 Above is the proposed logo for I-44. This logo could be used in a variety of applications to promote the new branding, such as business cards and letterhead.

27 Missouri s target industries The Missouri Strategic Initiative for Economic Growth identified several target industry clusters that will be the focus of Missouri s marketing efforts. Advanced manufacturing Energy solutions Information technology Aerospace and Defense Products Electronics Safety Equipment and Controls Engineering Transportation Equipment Materials Energy Storage Machinery Transportation Equipment and Auto Supplies Biosciences Plant and Ag Tech Biochemicals Research Chemical Manufacturing Ecotechnology Agriculture and Crop Production Companion & Feed Animal Sciences Biological Research Animal Farming Animal Food Manufacturing Biomedical Research and Development Pharma Discovery and Manufacture Genomics Medical Devices Diagnostics and Imaging Nuclear Power Natural Gas Wind Energy Solar Energy Biomass/Biofuels Research & Development Financial and professional services Financial Services Banks and Investment Firms Insurance Carriers, Agents, Brokers Accounting Financial Planning Services Professional Services Legal Services Advertising and PR Consulting Services Business Support Customer Care Centers Customer Support Health care sciences and services Health Care Innovation Process/Services Evolution Creating New Business Categories Optimizing Systems Health Sciences Health Care IT Pharmacy Benefits Management Health Care Consulting Health Services Hospitals & Doctors Offices Home-Based Care Clinics Software, Hardware, and Systems Design Software Design & Publishing Data Processing and Hosting Computer Systems Design Research & Development Data Centers Data Storage Information Assurance Technology Resource Centers Customer Support Transportation and logistics Freight Hauling Trucking Air Cargo Rail Inland Ports Warehousing Warehousing and Storage Logistics Management Container Manufacturing Wholesalers Merchant Wholesalers 27

28 finance and governance

29 2011 board of directors return on investment funding sources expenditures

30 missouri partnership 2011 Board of Directors: 2011 board of directors Randell Wallace, Lathrop & Gage (Chairman of the Board) Greg Nook, JE Dunn Construction (Immediate Past Chairman) Chris McKee, Optimus Development (Vice Chairman) Scott Atkins, Atkins Investments (Secretary) Randell Wallace Chairman of the Board Greg Nook Immediate Past Chairman Chris McKee Vice Chairman Mike Deggendorf, KCP&L (Treasurer) Tracy Brantner, Johnson County Economic Development Coorporation (representing Missouri Economic Development Council) Barry Hart, Association of Missouri Electric Cooperatives David Kerr, Missouri Department of Economic Development (retired December 2011) Scott Atkins Secretary Mike Deggendorf Treasurer Tracy Brantner John Mehner, Cape Girardeau Chamber of Commerce (representing Missouri Partnership Advisory Group) Mike Nichols, University of Missouri System Steven C. Roberts, The Roberts Companies Barry Hart John Mehner David Kerr Duane Simpson, Monsanto Mike Nichols Steven C. Roberts Duane Simpson 2008 total operating budget: $3.0 million 2009 total operating budget: $3.2 million 2010 total operating budget: $2.7 million 2011 total operating budget: $2.6 million 30 finance and governance

31 return on investment Funds invested in Missouri Partnership in 2011 Funds invested in 2010 for one new job recruited $1,197 $1,835 for $45,000 in new annual payroll $1,082 $1,285 $3,148 $1,147 for $100,000 in new capital investment funding sources Other revenues received: 3% Private investment: 10% Public investment: 87% % 10% 87% % 15% 75% % 20% 80% expenditures Marketing: 49% Operating/administrative: 23% Sales/Business recruitment: 28% % 20% 26% % 20% 20% % 24% 21% 31

32 about missouri partners

33 hip

34 34 about missouri partnership Our role in Missouri s economic development Economic development in Missouri, as in any other state, can be thought of in three distinct categories: First is the expansion of existing businesses in the state. Just as privatesector businesses know to keep their existing customers happy, states recognize the need to do everything possible for existing companies to stay and grow in their communities. Second is the formation of small businesses in the state. Fostering a business climate in which entrepreneurs can thrive is vital to ensuring that today s one- or two-person enterprise can mature into the 100- and 200-employee companies of tomorrow. Also key is creating an infrastructure where the technology and research being developed at universities and other institutions can be spun off into promising commercial endeavors. Last, and equally important as the first two categories, is attraction of new industry to the state. It is this category of economic development Missouri Partnership strives to have the greatest impact for our state. Direct impacts of business attraction Recruiting new industry to the state is important for many reasons. Chief among them is the creation of new jobs, capital investment, and tax base in the community where a business relocates. In the other two categories of economic development retention/ expansion of existing employers and entrepreneurial/small business development job creation and capital investment also occur, though on a smaller scale per project. An expanding employer may add a new line of manufacturing equipment to expand production, or a start-up business may need to hire one or two new employees; in each case, new capital investment and job creation are modest in scope. Considering that recruitment projects frequently involve greenfield (i.e. new construction) investment, there is an added impact of construction-related employment. Additionally, attracting new industry not only further diversifies the state s economic base; it also provides new market opportunities for existing industry. For example, because of automotive assembly factories located in and around Missouri, the state is home to a robust community of automotive parts suppliers. If Missouri were to succeed in attracting a new auto assembly plant, there would be additional opportunities for existing auto parts manufacturers to supply the new assembly operation; this, in turn, could lead to further expansion and investment by those existing suppliers. In other words, success in the third category of economic development business recruitment directly translates into potential success in the first category retention and expansion of existing employers. There are other positive benefits of new business recruitment. In addition to the new residents and income base that could be brought to a community, retail sales are boosted by the increase in household savings of new employees. Perhaps more importantly, but less tangible, is the positive attention Missouri receives in the business world. When a globally recognized company decides to build their new facility here, other companies executives will conclude that there must be a compelling business rationale for choosing Missouri. Actual success therefore raises the perception of success, and brings additional opportunities for further success. Our history Missouri Partnership is a creation several years in the making and one that benefits from the leadership of both Missouri s public and private sectors. In 2004, members of the non-profit Hawthorn Foundation a 26 year-old consortium of Missouri businesses dedicated to supporting the state s economic development efforts met with business leaders in the Southeast U.S. to better understand how Southern states like Georgia and Alabama competed for new business investment. These conversations revealed a strong reliance by those states on joining private-sector investment with public-sector resources in pursuit of statewide economic development. Also in 2004, the Missouri Economic Development Council an industry association comprised of economic development professionals from across the state commissioned a study by Taimerica Consulting to improve Missouri s overall competitiveness for new business investment. In addition to recommending the creation of new incentive programs and simplification of existing incentive policies, the Taimerica study also concluded that Missouri should create a successful [and well-funded] economic development marketing initiative that allows Missouri to compete effectively worldwide, with particular emphasis on building relationships amongst key decision makers both in and out of Missouri. This recommendation was the impetus for the eventual formation of Missouri Partnership, a public-private partnership dedicated to marketing Missouri and recruiting new industry to the state.