Did you know? Missouri employment grew a total of 2.5% between 2004 and 2014, the 42 nd slowest rate among the 50 states. Source: The Bureau of Labor Statistics
Did you know? Missouri s real GDP per capita grew 0.8%, less than 1%, between 2003 and 2013, the 43 rd slowest growth rate among the 50 states. Source: Bureau of Economic Analysis
Did you know? The prosperity of the U.S. economy will depend more on the success of states in improving competitiveness than what happens in Washington. Source: Dr. Michael E. Porter, Harvard Business School
The Problem Politics before Policy The next election trumps next generation. Sorry, your issue just doesn t poll well.
WHO S IN CHARGE?
YOU ARE!
The Solution Missouri 2030 A 15-year plan to place POLICY ahead of POLITICS
Work so far Contracted with nationally recognized economic strategist, Ted Abernathy, and research organization, Gallup, to collect data and develop strategy Included more than 1,000 Missouri CEOs in face to face meetings and interviews to develop plan Presented to more than 3,000 stakeholders
Work so far Alliance Meetings Established five Alliances: Workforce/Training, Infrastructure, Exporting, Agribusiness and Entrepreneurism Alliances designed to bring all stakeholders together to forge action plan
Work so far Local Chamber Relations We have secured more than 90 chambers of commerce in the Missouri Chamber Federation This partnership gives us the voice of more than 55,000 Missouri employers
Work so far Workforce Gallup research showed serious skills gap Gallup research also pointed to Dream it. Do it. as a program that was successful in other states We became the host for the program in the State in October with a successful launch and partnership with Toyota in Troy and now expanding to communities across the state
Work so far Partnership with SBTDC Gallup research showed employers don t know where to turn to find training support We entered into a partnership with SBTDC to bring Kelly Dyer on board Kelly will provide training, business startup support and many other resources for employers We have developed a software program for entrepreneurs to help develop bank-ready plans
Work so far Research Creating a dashboard on our website to track key metrics Finalizing contribution tracking database Seeking entity to conduct budget study Finding best practices in workforce development, economic development, etc. to scale statewide
16% 14% Percentage of job growth 2004-2014 Missouri & neighboring states 14.6% 12% 10% 8% 7.1% 8.7% 7.8% 6% 4% 2% 4.7% 2.2% 4.3% 4.2% 2.5% 5.4% 0% Source: BLS Data 2014
25% Real GDP per capita 2004-2013 Missouri & neighboring states 20% 19.1% 15% 15.6% 16.1% 15.9% 10% 5% 4.9% 4.9% 10.3% 7.0% 0% 0.8% 1.1% Source: EL estimates based on BEA
Source: Bureau of Economic Analysis 2015
2004-2013 change in real personal income Missouri & neighboring states 18% 16.2% 16% 14% 13.5% 12.5% 12.6% 12% 10.6% 10% 8% 5.3% 5.8% 6% 4.5% 3.9% 3.7% 4% 2% 0% Source: EL estimates based on BEA and BLS Note: Income adjusted using CPI data
14% 12% Change in real wages 2004-2013 Missouri & neighboring states 12.0% 10% 8% 6% 4% 2% 0% -2% 4.4% 0.9% 3.9% -0.3% 2.9% 0.2% 2.9% 2.4% 2.6% Source: EL estimates based on BLS Note: Wages adjusted using CPI data
State goods exports per capita 2013 $16,000 $14,000 $13,637 $12,000 $10,000 $10,575 $8,000 $6,000 $4,000 $2,000 $3,990 $3,761 $3,092 $2,420 $5,753 $1,982 $2,139 $4,138 [VALUE] $1,796 $5,468 $4,986 $2,952 $2,172 $0 AL AR FL GA KY LA MD MO MS NC OK SC TN TX VA WV Source: 2010-2013 data from U.S. Census and Foreign Trade
Employment Change June 2014- June 2015 Missouri & Neighboring States 3% 2.2% 2.2% 2.1% 2.0% 2% 2% 1.5% 1% 1% 0.8% 0.8% 0.8% 0.4% 0.6% 0% Source: Based on July, 2015 BLS
5% 4% 4% 3% 3% 2% 2% 1% 1% 0% Change in USA & Missouri Employment June 2014 to June 2015 4.2% 3.5% 2.9% 2.7% 2.7% 2.0% 2.0% 1.3% 1.4% 1.2% 1.2% 0.9% 0.8% 0.3% 0.1% 0.0% Source: EL estimates based on BLS, July 2015
Source: National Employment Law Project, 2014
State of entrepreneurship
Comparative tax levels Source: Tax Foundation
Forbes Best States for Business 2014 1. Utah 2. North Dakota 3. North Carolina 4. Virginia 5. Colorado 6. Texas 7. Nebraska 8. Washington 9. Minnesota 10. Oklahoma 31. Missouri Source: Forbes 2014
CNBC Top States for Business 2014 1. Georgia 2. Texas 3. Utah 4. Nebraska 5. North Carolina 6. Minnesota 7. Washington 8. Colorado 9. Virginia 10.North Dakota 23.Missouri Source: CNBC 2014
Chief Executive Best States for Business 2014 1. Texas 2. Florida 3. Tennessee 4. North Carolina 5. South Carolina 6. Indiana 7. Arizona 8. Nevada 9. Louisiana 10. Georgia 22. Missouri
MISSOURI CHAMBER OF COMMERCE & INDUSTRY Gallup 1050 Interviews of Missouri CEOs
MISSOURI S EDUCATION SYSTEM: KEY FINDINGS Overall: Only 15% of Missouri business owners agree that high schools are preparing students for the workforce. Summary Data Finding 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Preparation of Graduates for the Workforce 15% 42% 39% 42% 44% 15% High School Graduates Prepared for Workforce College Graduates Prepared for Workforce
MISSOURI S TALENT ENVIRONMENT: KEY FINDINGS Overall: Fewer than 1 in 3 businesses believes Missouri attracts top talent, leading to dissatisfaction with the availability of a skilled workforce and intense competition to retain the best. 100% 90% 80% 70% 60% 50% 40% 30% 20% Top 10% Talent 0% 30% 30% 47% 23% Businesses in Missouri Attract Talented Candidates Missouri's Workforce 40% 30% Businesses in Missouri Retain Top Talent Summary Data Finding 44% 40% 16% Satisfied with the Availability of a Skilled Workforce
MISSOURI S INFRASTRUCTURE: KEY FINDINGS Overall: Respondents were 61% satisfied with their access to technology as compared to only 37% satisfaction with basic infrastructure, including roads. Summary Data Finding 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 61% 29% 33% 9% 14% Satisfied with access to technology Infrastructure in Missouri 52% Satisfied with affordable and reliable energy 37% 37% 26% Satisfied with roads & infrastructure
KEY INPUTS FOR MISSOURI BUSINESSES: KEY FINDINGS Overall: Missouri businesses rate their access to key inputs to their business success relatively high as compared to other questions in the survey, with over half reporting satisfaction with availability of credit, affordability of land, access to customers, and business networking opportunities. Summary Data Finding 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 56% 57% 56% 52% 48% 27% 31% 33% 35% 37% 43% 42% 12% 10% 10% 11% 12% 14% Availability of affordable land Key Inputs for Missouri Businesses Access to financing and credit Access to customers Business networking opportunities Presence of other businesses Cost of basic commodities
MISSOURI S TAX POLICY: KEY FINDINGS Overall: 10% of businesses in Missouri report that the tax environment is their biggest obstacle to growth, compared to 7% in a national study (Gallup-Wells Fargo Small Business Study, December 30, 2013). Summary Data Finding 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 17% 40% 41% Satisfied with Missouri Tax Policy Missouri Tax Environment 13% 40% 35% Offers Generous Tax Incentives to Move to State 21% 46% 29% Offers Consistent Tax Policy
LABOR RELATIONS IN MISSOURI: KEY FINDINGS Overall: Only one in four (26%) businesses feels labor relations in the state allow them to scale operations as needed, with over half (54%) feeling that becoming a Right to Work state will benefit the state. Summary Data Finding 100% Missouri Labor Relations Environment 80% 60% 40% 20% 54% 20% 22% 26% 39% 33% 0% Becoming a Right-To-Work State Would Benefit Missouri Disagree (1, 2) Neutral (3) Agree (4, 5) Labor Relations in the State Allow Your Business to Scale Operations as Needed
LABOR RELATIONS IN MISSOURI: KEY FINDINGS
REGULATORY ENVIRONMENT: KEY FINDINGS Overall: When asked their biggest obstacle for growth, businesses answer government regulations at twice the rate of any other factor Gallup polled on in this survey (21% answering regulations, versus 10% each for the next two factors, availability of skilled workforce & tax environment). 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 21% 40% 36% Satisfied with Litigation Environment Missouri Regulatory Environment 16% 31% 52% Satisfied with Regulations for Operating Business Summary Data Finding 21% 25% 38% 40% 35% 33% Regulations for Starting New Business Easy to Comply With Regulations for Growing Existing Business Easy to Comply With
MISSOURI S POLITICAL LEADERSHIP: KEY FINDINGS Overall: Polled businesses are twice as likely to disagree that politicians in Missouri are committed to improving the business climate (40% disagree vs. 20% agree). Summary Data Finding 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20% 39% 15% 43% 40% 41% Overall Political Leadership Committed to Growth 20 employees or fewer 20% 22% 27% 44% 35% 30% 47% 21-50 employees 51-100 employees 37% 36% More than 100 employees Disagree (1, 2) Neutral (3) Agree (4, 5)
SO WHAT?!
Long-term Focus Policy will trump politics to shape the future. One Agenda The business community, local chambers and other stakeholders will no longer be splintered. Data-driven Plan A long-term data center will drive policy decisions. Metrics, Transparency & Accountability We will measure what matters, make it accessible and hold leaders accountable. Aligned & Coordinated Resources We will make the most of limited money and time.
Approaching challenges from four angles: Missouri Chamber Foundation provides research and data to provide direction and plan. Missouri Chamber advocates for legislative agenda and supports other market-based initiatives. Missouri Chamber PAC influences political support. Missouri Chamber Federation provides grassroots support.
Drivers PREPARING Missouri s workforce COMPETING for jobs CONNECTING through infrastructure UNITING the business community
PREPARING Missouri s workforce (Go to page 14 in plan for details) Workforce Alliance / Training Alliance Dedicated workforce development professional Certified Work Ready Communities Add programs like Dream it. Do it. and scale up successful models Workforce Summit to unite employers and education
COMPETING for jobs (existing) (Go to page 16 in plan for details) Strong advocacy in tax policy, legal environment, unemployment insurance and workers compensation systems Labor reforms Tort reforms and Missouri Chamber Legal Foundation Regulatory and tax reforms
COMPETING for jobs (new) (Go to page 16 in plan for details) Industry and higher education research and development collaboration Programs and resources to foster entrepreneurs Annual tax policy review to maximize start-up and highgrowth companies Flexible capital formation policy
CONNECTING through infrastructure (Go to page 20 in plan for details) Infrastructure Alliance Export Alliance Sustainable funding research and polling Utility networks (gas, electric, broadband, water and sewer systems
UNITING the business community (Go to page 22 in plan for details) One business agenda Missouri Chamber Federation and stakeholder organizations Annual statewide employer issue polls Economic studies to target strengths, weaknesses and opportunities Online website database and metrics dashboard
Expected outcomes Future Missouri performance for GSP growth, employment growth and income growth will be above the national average. Missouri will be a top 15 state for new business formations. Invest in economic studies to target strengths, weakness and opportunities. Missouri postsecondary educated 22-44 year olds ranking will improve to a top 10 state per capita.
Expected outcomes Missouri will be ranked among the top third of states for business climate and best places to do business. Missouri s image among site selection professionals will be among top tier states. Missouri will improve in rankings measuring quality of life.
What if. Missouri would implement policies that would move our state from 42 nd in job growth to 30 th? Missouri would add 27,000 new jobs annually Missouri would generate $1.15 billion in new total payroll each year Consumer expenditures from these jobs would be more than $636 million per year
Join the effort Learn more about Missouri 2030 on our website! Sign up to receive progress updates. Find additional information and learn more about each key driver. Download the full plan. Browse various media relating to the plan. Join and promote the effort. www.mo2030.com