An Industry Week Special - Missouri Partnership

St. LouisWWW.OPPORTUNITY.MISSOURIPARTNERSHIP.COMMissouri’s fiscal responsibility goes along way in earning the trust of businessesthat are looking to expand orrelocate. In fact, Missouri is one ofjust five states to maintain a AAAbond rating for 45 years or more.Located near the geographical centerof the country with easy access toair, highway, rail and river transport,Missouri is in an optimal place formanufacturing operations. Lowbusiness and energy costs, coupledwith a diverse economy, have helpedthe state bounce back faster thanmost. In 2012, Missouri ranked sixthoverall for business energy costs,including electricity and fuel, by theSmall Business and EntrepreneurshipCouncil.But it’s Missouri’s workforce, morethan anything else, that’s most oftencited as a reason for companies torelocate. Those old and new to thestate take pride in their partnershipswith local high schools, universitiesand community colleges—all trainingMissouri’s workers to keep them inMissouri.Missouri has 138 post-secondaryeducation institutions and severalsuccessful workforce trainingprograms to help companies createand fill jobs with skilled employees.These programs include theMissouri Community College NewJobs Training Program, the MissouriCustomized Training Programand the Certified Work ReadyCommunities (CWRC) Program.Missouri was among the first stateswith this national certification thatguarantees communities have theskilled workforce necessary to attractnew businesses.Missouri’s comeback has been hardfought. During the recession some ofthe state’s businesses were forced tocut workforce and production. Butmany of those same companies arereinvesting today—in equipment,in staff, and in new or expandedfacilities. A recent report from CNNconfirms the manufacturing industryis back, and Missouri has topped sixsurrounding states with more than3,700 skilled factory job openings.Take St. Louis, for example,Missouri’s largest metro. BusinessFacilities magazine recently rankedSt. Louis fourth among the top 10manufacturing cities in the nation—andwith good reason. TheMissouri side of the area employsabout 80,000 in the manufacturingsector, providing a range ofproducts for the renewable energy,aerospace, and automotive industries.Notable companies in the City of St.Louis include automotive supplierFederal-Mogul Products, electricalpower manufacturer ABB, as well asenergy and utility companies AmerenMissouri, Peabody Energy and TheLaclede Group.The region’s largest manufacturingemployer, Boeing Defense, Space &Security (BDS) is a $32 billion divisionand a world leader in the field.Dating back more than 70 years,Boeing’s St. Louis headquarters presentlyemploys 15,000 workers.“The relationships that exist betweenour people, the community, andour customers, along with a focuson quality are the reasons Boeinghas succeeded in St. Louis for somany decades,” says Matt Aubuchon,director of human resources forBoeing Military Aircraft. “Thecompany thrives because of thesupport received from elected officialsand representatives, as well asother government, civic, communityand union leaders, who realize theimportance of working together tomake a community attractive to businessesand prospective residents, andultimately positioned for long-termgrowth.”In order to maintain its skilled workforceand draw from the area’s talentpool, Boeing commits to partnershipswith local educational institutions.Among these are Missouri’stechnical colleges—includingLinn State and Ranken TechnicalCollege—where the company identifiesstudents for machining careersand advises them in course selectionto prepare for skilled jobs aftergraduation. Boeing also partnerswith St. Louis Community Collegeto train assembly mechanics. In additionto these partnerships, Boeinghas robust relationships with manyof the leading four-year institutionsin Missouri. Collaborations withMissouri University of Science &Technology, Washington University,Saint Louis University and theUniversity of Missouri, among others,have helped Boeing establish astrong pipeline of technical talent tomeet the company’s growing needs.These schools have also been valuedpartners for the continuing educationof Boeing’s current workforceas employees pursue certificates,undergraduate and graduate degrees,and skilled training.“By forming partnerships with educationinstitutions and making surestudents are given the chance to pursueScience, Technology, Engineeringand Mathematics (STEM) relatedactivities, Boeing can always counton having qualified prospectivecandidates to meet the need for askilled labor force,” says Aubuchon.“In an industry that depends onemployees with very specializedskills—that is a big benefit. Workingtogether with these schools andcolleges helps Boeing live up to ourset of values and function as a goodcorporate citizen in the surroundingcommunity.”3

CubaFarmingtonWWW.OPPORTUNITY.MISSOURIPARTNERSHIP.COMservices firm. It’s a partnershipthat will give the company a globalpresence.With the growing number of job vacanciesin St. Charles County, trainingworkers to fill those jobs will be apriority for the region in the comingyears. Earlier this year, RankenTechnical College announced plansto establish a satellite campus inWentzville to provide technical trainingfor engineers and skilled laborersin the tech sector.“It is a new era in manufacturing,”says Prestemon. “Now is the time tomake sure we are training our populationfor the jobs of the future. Wehave to be strategic about our useof resources and focus on effectiveemployer and education system-ledpartnerships.”Just south of St. Louis, thecity of Farmington enjoys a stableand progressive economic environment.Accessible transportationplays a role in the city’s success withfour-lane Highway 67 providing adirect connection to Interstate 55,and Farmington Regional Airportaccommodating corporate air travel.Local businesses include everythingfrom independently owned shopsand major retailers to progressivemanufacturers such as SRG Global,U.S. Tool Group and Trimfoot. Theseand other companies continue todiversify, and Farmington continuesto figure in their expansion plans.“Our location within St. FrancoisCounty—with a labor force thatexceeds 29,500—enables Farmingtonto pull in available labor from itssurrounding counties, including Iron,Jefferson, Madison, Ste. Genevieveand Washington,” says GregoryS. Beavers, City Administrator inFarmington. “In total, the labor poolin this region of Missouri reaches280,000—a number that continuesto grow each year.”Farmington’s substantial workforce isbolstered by local educational institutionsfocused on life-long learning.Mineral Area College (MAC) offerscustomized training, new jobs training,and workshops and seminarsthrough the Career Planning Center.About an hour southwestof St. Louis on I-44, Cuba is a havenfor homegrown manufacturers. TakeMeramec Electrical Products, forexample. The company, whichbegan in the founder’s basement in1969, has grown to 160 employeesat its Cuba facility today. Meramecmanufactures custom-made currenttransformers for the electrical powerindustry.“We were fortunate enough to staybusy through the recession, but wehave seen an increase in sales sinceIt takes a lot of collaboration to make it big inbusiness. And CUBA, MISSOURI has it. Ourcity and county governments and chamber anddevelopment groups work together every day togrow the city’s business. And we’ll do the same foryours. Meet us at the world’s largest rocking chair*along historic Route 66, and become the next bigthing in advanced manufacturing.*Over 42’ tall, the Route 66 Rocker is the largest in the world.C O N TA C T M A R DY L E AT H E R S AT 573.885.1344 O R M A R D Y @ G O C U B A M O . C O M7

“OUR BUSINESS IS COMING BACK STRONG. THE INDUSTRIES WE SUPPLY EQUIPMENTTO ARE COMING BACK AND DEMAND IS GROWING. MANUFACTURING IS HEADING INTHE RIGHT DIRECTION.”— GREGG SHIREY, MUELLERthe economy has recovered,” saysNick Sanazaro, President & CEO ofMeramec. “Our plan is to continueto grow the company significantly inthe next five years.”Sanazaro credits Cuba’s greatworkforce and the collaborativeefforts of local government andeconomic development organizationsfor the success of Meramec andits neighboring businesses. “With itssmall-town work ethic and committedemployees, Cuba is a great placeto work,” says Sanazaro. “There are alot of people here dedicated to helpingthe community, creating jobs andbringing revenue to the area.”The City of Cuba, Crawford County,the Cuba Chamber of Commerceand Cuba Development Group havea long-standing partnership to attractnew businesses to the area.“Meramec Electrical Products isone of Cuba’s best success stories,”says Mardy Leathers, President &Founder of Cuba DevelopmentGroup, Inc. “The company that grewfrom humble roots more than 40years ago has expanded several timesin the last decade—becoming one ofour community’s strongest assets.”Further down Interstate 44,companies in Springfield that werehit by the recession are reinvestingin updated equipment and newprocesses to improve manufacturingand meet rising demands.“The quality of the workforce in thisarea is a real driver for companies,”says Ryan Mooney, Senior VicePresident of Economic Developmentat the Springfield Area Chamber ofCommerce. “The manufacturingwork is here and our workforce ishighly productive—paired together,these factors make Missouri attractiveto businesses in the manufacturingindustry.”At one of Missouri’s three KraftFoods facilities, plans were justannounced for a $50 million capitalinvestment to improve processesand increase efficiencies. As anemployer of nearly 1,000 workersin the Springfield area, Kraft is alsolooking to invest in new equipmentto keep up with a growing demandfor its products.“There are several projects beingconsidered to help our Springfieldfacility meet consumer demandfor existing and new products, andhelp us retain our existing jobs,”says Joyce Hodel, spokesperson forKraft. “Our Springfield plant hasdemonstrated strong improvementsin gaining efficiencies, reducingcosts and finding productivity, aswell as sustainability wins. We havean excellent workforce and want tomaintain it.”THEY FOUND A GOODPLACE TO START.Springfield ReManufacturing Corporation started in 1983 remanufacturingdiesel engines for trucks. But CEO Jack Stack didn’t stopthere. With Springfield’s entrepreneurial spirit and dedicated workforce,he has created almost 60 new spin-off businesses from SRC.Springfield is helping companies grow.An IndustryWeek Special Section8

“THE WORKERS HERE ARE SKILLED, THEY BELIEVE IN THE COMMUNITY AND ARECOMMITTED TO THEIR WORK...THE JOPLIN REGION REALLY COMES TOGETHER TOSHARE IDEAS AND CREATE SOLUTIONS.”— JIM SCHWARZ, PRESIDENT & CEOincluding advanced manufacturing.The Joplin Area Chamber ofCommerce Foundation received a $1million grant to help students selectcareer paths and related courseworkfor dual enrollment or advancedplacement. The program is alsoopen to unemployed and incumbentMissouri workers re-entering theworkforce or seeking higher-skilled,higher paying jobs.One Joplin company that hasrebounded well is Modine, maker ofthermal solutions for trucks, busesand specialty vehicles. Modine hasnearly doubled its staff since investing$30 million in the Joplin facilityfour years ago.“After the slow-down, we saw businesscoming back very quickly,” says LoriScott Dreiling, human resourcesmanager at Modine. “We were ableto hire all our employees who hadbeen laid off and business has beensteady ever since.”Like many other Missouri companies,Modine is proud to be part of asupportive community with a greatworkforce. “The caliber of the employeeswe recruit in the Joplin areais excellent,” says Dreiling. “They areeducated, understand the business,feel committed to the company, andthey have a strong work ethic.”Modine makes a unique productcalled an exhaust gas recirculationcooler (EGR), a part that recirculatesgas through diesel engines to reduceemissions by 50 percent. The companyis looking to the future as callsfor tighter emissions standards andmore efficient vehicles increase.“As a company, we are committed tobeing able to help our customersmeet guidelines for reduced emissions,”says Dreiling. “We are proudto be able to provide a green productto our customers.”Another Joplin business that has seenrecent growth is Able Manufacturing,a manufacturer of light metal fabricationand cab assemblies for trucksand passenger trains. Able has added100 employees to the payroll in thelast 18 months, according to BillPesch, President & CEO. Pesch citesa high-quality workforce, centrallocation, and an affordable and supportivecommunity as key componentsto the company’s success.“There are a lot of hardworking, honestpeople in the Joplin area,” saysPesch. “The workers here are skilled,they believe in the community andare committed to their work. Whenwe need support from the community,the Joplin region really comestogether to share ideas and createsolutions.”As is true for the rest of the state,Joplin’s low costs and easy accessAn IndustryWeek Special Section10

“WE HAVE INVESTED A LOT IN STAYING HERE AND BEING A LONG-TERM EMPLOYERFOR CENTRAL MISSOURI. IN THIS ECONOMY, IT IS GREAT TO KNOW WE CAN EXPANDAND OFFER MORE TO OUR EMPLOYEES.”— KATHY COWAN-SMITH, OTSCON, INC.Wheels in Sedalia, the largest Tier Isupplier of automotive and commercialhighway wheels in the world.Maxion serves all major OriginalEquipment Manufacturers (OEMs)worldwide and performs all design,engineering, manufacturing andquality processes for its products.Lauded as one of the world’s mostmodern wheel manufacturing plants,Maxion’s 300-person Sedalia plantwill make eight million steel wheelsthis year for GM, Ford, Chrysler andNissan.“The success of Maxion Wheels andlongevity in the community is theresult of a combination of a talentedworkforce, great company leadership,and access to transportation,” saysLinda Christle, Executive Directorof the Economic DevelopmentSedalia-Pettis County.Live a little. Learn a lot. You’ll do both when you relocate or expand your businessin Columbia, Missouri! With a student population of 40,000, Columbia has theworkers you need and the programs to keep them current. Call today to learn more!A top 10 leading location for job growth– Area Development Magazine, 2012Among the top 10 “Best Small Places forBusiness and Careers”– Forbes, 2009, 2010, 2011, 2012The 12 th Best U.S. City for Jobs– Newgeography, 2012One of America’s Hardest working cities- Parade Magazine, 201213 th Smartest City in America– Forbes, 20088 th best city (of 250,000 or fewer) forcollege students, based on cost of livingand job opportunities– American Institute for Economic Research8 th Best College Sports Town in America– Forbes, 2009Contact J. Michael (Mike) Brooks573-441-5542 | www.ColumbiaRedi.comRight in the middle of thestate, Columbia, Mo. has been citedmultiple times as a great businesslocation. In Forbes magazine’s fourteenthannual “Best Small Places forBusiness” report, Columbia rankedninth overall, coming in third foreducation and in the top 20 percentfor job growth and low businesscosts. Among Area Development’s“100 Leading Locations for 2012,”Columbia was named a “recessionbusting” city, coming in at thirdamong mid-sized cities and 10thoverall. The city was praised for itshigher education institutions andvariety of industrial sectors—includinglife sciences, human and animalhealth, information technology andinsurance.At Otscon, Inc., a manufacturerof parking brake systems for severalwell-known automotive brands,business is operating at full capacity.“The car companies are selling carsas fast as we can make the parkingbrakes,” says Kathy Cowan-Smith,director of human resources.Otscon is expanding the warehousespace at its Columbia location—thefourth addition to the facility sinceit opened almost 10 years ago. “Wehave invested a lot in staying hereand being a long-term employerfor Central Missouri,” says Cowan-Smith. “In this economy, it is great toknow we can expand and offer moreto our employees.”Just north of Columbia at MoberlyArea Community College’s (MACC)flagship campus, workforce trainingand development has been part ofthe college’s curriculum and commitmentto the community fordecades. With six locations throughoutNortheast and North CentralMissouri, including a Columbiacampus, MACC has partneredwith many businesses in a variety ofindustries over the years.An IndustryWeek Special Section12

Northeast MOColumbiaWWW.OPPORTUNITY.MISSOURIPARTNERSHIP.COM“We take great pride in being veryflexible and responsive to businessesin our communities,” says EvelynJorgenson, President of MACC.“Industries often have very specificneeds. We are able to respondquickly and provide rigorous, qualityprograms that help companies developand train the kind of workforcethey need.”And it’s not just the companies thatbenefit from MACC’s programs—students graduate with skills thatmake them well prepared for jobs intheir communities. In fact, a studycommissioned by several communitycolleges earlier this year found thatmore than 90 percent of communitycollege students find jobs in the statewhere they complete their education.“The benefits are just enormous,” saysJorgenson. “Students have opportunitiesfor experiential, hands-onlearning, as well as internships andchances to view industries in action.They gain understanding of how theskills they learn apply directly to theworkforce. Many students end upwith job offers because they havebeen specially trained.”Developing and growingbusinesses—including those in themanufacturing industry—is importantfor rural areas like NortheastMissouri. The Macon CountyInnovation Center recently celebratedits launch in the former MissouriDepartment of TransportationDistrict Office. A project that hasbeen in the works for several years,the Center will provide workspaceand resources, including conferencerooms, internet access and businessequipment, for entrepreneurs in theregion. For a small fee, entrepreneursand businesspeople can purchasea membership to the “InnovationCafé,” and gain access to resourcesand facilities that can help grow abusiness.The Center already has one tenant,Onshore Outsourcing, an informationtechnology services companythat will soon have close to 100employees. Onshore, a pioneerin “farmshoring” of IT services, isable to pass along the savings ofMissouri’s rural economy to businessesin large metro areas.“We want to touch all areas in our ruralcommunity,” says Denise Bennett,Executive Director of Macon CountyEconomic Development. “There aremany entrepreneurs in our area andoften, we don’t even know they arethere operating business out of theirhomes or other spaces. We want toengage the community to supportthese developing businesses and helpfind investors and mentors for ourentrepreneurs.”How do you know when it's time toexpand or relocate? Just watch for a sign.The 15-county Northeast Missouri region is home to amultitude of companies that enjoy cheaper land and laborthan their counterparts in metro areas. If you’ve beenwondering what you can do to change your own businesslandscape, this could be the sign you’ve been looking for.For more information, visit us at www.missourinortheast.comor call 660-263-8811.13

An IndustryWeek Special Section14

MaryvilleWWW.OPPORTUNITY.MISSOURIPARTNERSHIP.COMThe transportation infrastructurein Missouri’s northeast has seenvast improvements over the lastseveral years, making shipping moreefficient for area manufacturers. TheChicago-Kansas City Expressway(US 36) is a new four-lane highwayoffering a less congested route fortruck traffic across the northernpart of the state. The Avenue ofthe Saints—I-64, U.S. Route 61 andMissouri Route 27—connects theregion with Minneapolis-St. Paul,Minnesota to the north and St. Louisto the south. Daily flights fromKirksville Regional Airport andQuincy (IL) Regional Airport (justacross the Mississippi River) providecompanies with easy connections toLambert-St. Louis International.Information access is also gainingspeed in the northeast corner ofthe state. Ralls Technologies andRalls County Electric Cooperativeare adding high-speed fiber opticbroadband access to their servicearea, and will soon expand evenfurther.“The high-speed internet access isan important step for this region,”says Gordon Ipson, Managerof Economic Development atNortheast Missouri Electric PowerCooperative. “We have had customerstell us they have faster broadbandin parts of our region than they canget in a major metropolitan area likeNew York City.”Missouri’s northwestcorner provides scenic vistas, rollinghills and open space for companiesto expand and enjoy. Though predominantlyrural, the area is home tovibrant communities and successfulmanufacturing operations. Ruralamenities—such as low cost laborand land—help communities buildon the region’s agricultural historywhile creating a micropolitan future.Home to Northwest Missouri StateUniversity, Maryville, Missouristands as the education and industrialhub of the region. The community’sextended trade area is pillaredby three cities—Kansas City, Omaha,and Des Moines; providing a marketand vendor base which includes 1.5million people. With convenient accessto shipping and transportation,Maryville connects this U.S. marketplacethrough a series of four-laneand interstate highways.With a population of 11,676 and a labormarket of approximately 45,000workers, Maryville is thriving withKawasaki Motors Manufacturing,Nurcor LMP Steel, Deluxe,Energizer, Federal Mogul, LacledeChain and Robbins LightningProtection as the primary corporatecitizens of the community. Thesewell-established, internationallyknown companies comprise the baseof a growing industrial platform.15

“I’M CONFIDENT THAT NO MATTER THE SIZE OR STAGE, A PROJECT WILL BE GIVENATTENTION AND TREATED WITH RESPECT.” — MARK HOEMAN, HOEMAN CAPITAL MANAGEMENT LLCThrough Nodaway CountyEconomic Development (NCED),the City of Maryville, NorthwestMissouri State University andother governmental agencies workcollaboratively to ensure that theinfrastructure and business needs ofindustry are met. Together, the agencieswork with existing, expandingand developing businesses to providea link to site selection, projectmanagement, finance, and workforcedevelopment.“As a business advisor, it has been myexperience that community leadersin Northwest Missouri work cooperativelyduring the business recruitmentand development process tocreate a very nice working environment,”says Mark Hoeman, Presidentof Hoeman Capital ManagementLLC. “I’m confident that no matterthe size or stage, a project will begiven attention and treated withrespect.”Northwest Missouri also has excellentresources for commercializingbusiness technologies. NorthwestMissouri State University’s Centerfor Innovation and Entrepreneurship(CIE) in Maryville is a mixed-usebusiness accelerator that serves adynamic population of studentsand entrepreneurs in the area. The46,000 square foot facility promotesnano-scale science technologies, andoffers analytical laboratory servicesand commercialization expertise.Missouri’s Top AdvancedManufacturingEmploymentBLS, Quarterly Censusof Employment andWages, 2011Missouri’s Financial SecurityMissouri is one of seven states to receivethe highest bond rating by all three ratingagencies — Fitch Ratings, Standard &Poors and Moody’s Investor Service —and one of only five states to have heldthis rating for over 45 years.1,200 miles 600 milesAerospace product and partsPlastic productsHVAC & Commercial refrigeration equip.Other fabricated metal productMotor vehicle partsMissouri’s CentralLocationMissouri is within 600 miles of 50% ofU.S. population and 52% of total U.S.manufacturing establishments.Census Bureau, 2010 Census and BLS,Quarterly Census of Employment andWages, 2011Regardless of the region orthe industry, businesses all aroundMissouri are confident in the state’spost-recession rise to recovery. Afterall, Missouri’s greatest asset—itsworkforce—has not wavered oncein troubled times. Three millionstrong, they stand ready for the nextchallenge, giving today’s companies afighting chance.www.opportunity.missouripartnership.comMissouri Partnership is a public-private, non-profit corporation with the mission topromote the state’s business advantages and to assist new employers exploring relocationoptions. Whether your company is expanding to support continued growth orrelocating for a competitive edge, the Partnership’s team of economic developmentprofessionals is standing by to help.