2009 Prospectus - Missouri Partnership

o u r r o l eMissouri PartnerhshipIndirect impacts of successful business attractionThere are additional positive, if intangible,effects of new business recruitment. One ofthe often overlooked benefits is this: Statesthat are more successful in attracting newindustry tend to enjoy an increase in howother businesses positively perceive thosestates as places in which to do business andinvest. This positive impact on perceived businessclimate is best represented by southernstates like Alabama, which has notched aseries of high-profile recruitment successes inthe advanced manufacturing sector since theearly 1990s. Beginning with the recruitmentof a new Mercedes-Benz auto plant in 1993,and continuing with the recruitment of majornew facility investments by Honda (minivanassembly), Hyundai (sedan and sport-utilityvehicle assembly), Airbus (aircraft assembly),and ThyssenKrupp (steel processing), Alabamahas rapidly risen to “short-list” status for manyof the major new industrial investments,contending frequently for sizeable recruitmentopportunities.While Alabama’s attractiveness is surelyattributable in part to tangible businessfactors like labor costs, energy rates, and taxes,much of Alabama’s positive reputation likelyresults equally from the number of globallyrecognizedcompanies that have chosen toplace their new facilities in the state. In otherwords, other companies’ executives look at thedecisions made by businesses like Mercedes-Benz and Honda to invest in Alabama,conclude that there must be a compellingbusiness rationale for doing so, and ultimatelyinclude Alabama on the list of states that theyconsider when undertaking their own newinvestment projects. Actual success thereforebreeds further perceptions of success, andthus, additional opportunities for success.Other “spin-off” benefits resulting from newbusiness recruitment include an increase inhousehold spending and savings by newemployees of a recruited business operationand the boost in retail sales associated withthese new consumption patterns. While thereare differing opinions as to how to measure thetotal impact of these indirect benefits, thereis little doubt that recruiting new industrygenerates economic value beyond the jobsand investment associated with the companylocating its new facility in the community.Certainly, the impact to the state from businessrecruitment is far more substantial than insituations where an existing employer in thestate simply relocates operations from onecommunity in the state to another community;in those cases, there is typically no net gain inemployment and merely a redistribution ofemployment and investment across in-statecommunities.Elements of a Successful Marketing and Business Recruitment Effortproductmarketingmessagerelationshipbuildingactioniv

I I I . H O W W E A P P R O A C H O U R M I S S I O NThe recipe for a successfuleconomic developmentmarketing andbusiness recruitmenteffort is straightforward:Successful business attraction beginswith a compelling “product” – everythingfrom Missouri’s workforce and educationalinstitutions, to its location and infrastructure,to its taxes and quality of life, comprises theattractiveness of Missouri as a destination fornew business investment.M I S S I O NWith a quality product in place, a consistentand targeted marketing message is criticalto ensure that expansion-minded companiesremain aware of the benefits of doing businessin Missouri. In other words, even if Missouri hasa great story to tell to the global business world,companies won’t hear the story if no one isinvesting any resources in telling it.Just as consumer marketing firms invest heavilyin advertising their products to potentialcustomers, states like Missouri must also investin promoting themselves to businesses whomay be considering a new manufacturingfacility or headquarters location.For statewide economic development organizationslike the Missouri Partnership, the businessrecruitment effort involves two basic platforms:• Developing and communicating a marketingmessage to a targeted audience of prospectiveinvestors; and• Developing and managing relationships withkey decision-makers and decision-influencersinvolved in the process of determining wherenew business investment will be located.Any marketing message developed byMissouri should be delivered to the targetaudience (i.e. expansion-minded companies)with consistency and frequency. Withoutconsistency of message, Missouri will be hardpressedto clearly define its unique competitiveadvantages to a company considering multiplestates for a new investment project. Withoutfrequency of message, Missouri will find itdifficult to remain visible or “top-of-mind” tobusinesses when they are ready to begin anational search for a new facility. Disruptionsto either the consistency or frequencywith which the marketing message iscommunicated will negatively affect Missouri’sability to promote itself for new businessinvestment.Likewise, strong relationships are absolutelynecessary to the sales process involved inbusiness recruitment. The broader marketingeffort is designed to generate interest inMissouri as a possible option for a company’snew investment; the sales effort is designed totranslate that interest into specific action thatresults in the new investment being placedin the state. Key to any sales effort, includingthat of business recruitment, is the effectiveuse of relationships with decision-makers anddecision-influencers.In business recruitment, one of the mostimportant groups of decision-influencers isrepresented by the site selection consultingprofession: As their title implies, site selectionconsultants are hired to advise companies onthe advantages and disadvantages of locatingnew investments in different states, regions,and communities. As “gatekeepers” to thecapital investment decision-making process,site selection consultants interact frequentlywith economic developers of all types whenrepresenting their clients’ investment projects.More importantly, because of their experienceworking projects across the nation, consultantsare keen evaluators of the quality of service,responsiveness, and professionalism that theycan expect from economic developers at thestate level. What consultants determine aboutan individual economic developer’s performanceand capabilities can have a significantimpact on whether and how often a stateis considered for new investment projects,as well as the ultimate success of a state inwinning a consultant-driven decision.As a result, maintaining strong relationshipswith site selection consultants, and thenconsistently delivering high-quality serviceto them and their clients during a project, iscritical to Missouri’s success in recruiting newbusinesses to the state.MARKETING DATA CENTERSMissouri is home to the 5 th mostaffordable data center marketin the United States.v

Missouri Partnerhship S T R AT E G YThree Key Stages in the Process(“Three Moments of Truth”)The concept of distinct “moments of truth” for acustomer is a foundation of consumer productmarketing. In retail sales, those moments oftruth are often described as the following:• Win the right to compete – In other words,getting your product on the shelf andgetting the customer to notice it.• Win the competition – In other words, gettingthe customer to pick your product overanyone else’s.• Win the repeat business – In other words,getting the customer to pick your productagain and getting the customer to tell othercustomers about it.The marketing and sales process for attractingnew business investment to Missouri can alsobe described as three similar “moments oftruth”:• Win the right to compete – In other words,how do we get corporate executives or siteselection consultants to consider Missouri asa possible option for the new investment?This goal is accomplished by the marketingefforts of the Missouri Partnership, whetherthrough advertising, tradeshow exhibits, ordirect communication and messaging.• Win the competition – In other words,once we capture their initial interest andconsideration for a project, how we do we getcompanies to select Missouri over all otherstates for the new investment? This goal isaccomplished by the sales and recruitmentefforts of the Missouri Partnership, primarilyby working with state and local partners toposition Missouri as the most economicallyand operationally attractive location for thecompany’s investment.• Win the repeat business – In other words,even if Missouri has succeeded in landingthe initial facility investment, how do weget companies to continue investing andexpanding in Missouri after they’ve establishedtheir operations here? Winning thisrepeat investment is the goal of “retentionand expansion” strategy (as opposed to newbusiness recruitment), and is accomplishedby the efforts of the Missouri Department ofEconomic Development.Regardless of how attractive the product is,neither “winning the right to compete” nor“winning the competition” can be effectively accomplishedin economic development withoutinvesting significant resources in the marketingand sales efforts. And naturally, “winning therepeat business” will never be possible withoutwinning the initial investment.Key Moments in the Business Investment DecisionWin theright tocompeteWin thecompetitionWin therepeatbusinessvi

Product, People and ProcessIn looking at how the Missouri Partnership willcontinue to market the state for new businessrecruitment, there are three critical elementsnecessary for success: Product, People, andProcess. The challenges that lay before ourorganization can all be expressed in terms ofthese three broad principles.“Product” refers to the quality of Missourias a location for business investment,and is comprised of, among other factors:the availability, quality, and cost of humancapital; the accessibility of multiple modes oftransportation for the movement of goods andpeople; the supply of developable land andbuildings; the business climate as reflected intaxes, regulation, and other legislation affectingprivate-sector companies; and the “quality oflife” that individuals – both inside and outsideMissouri – perceive within the state.Looking ahead, our Product challenge in futureyears is two-fold: continuously improving theProduct, while also increasing awareness ofthe Product among the target audience. Aconcerted marketing effort that combines“image advertising,” earned media, and targetedindustry events will help to promote the newbusiness brand and raise visibility of Missourias a location for doing business. On the otherhand, improvement of the Product is moredifficult to control from the perspective ofthe Missouri Partnership’s activities, since theMissouri Partnership is fundamentally a salesand marketing organization tasked with “selling”– and not “developing” or “engineering” – theProduct. However, as the Missouri Partnershipcontinues to interact with more businessesconsidering the state for new investment, theorganization will learn about how decisionmakersand decision-influencers perceiveMissouri’s relative advantages and disadvantagesas a place to do business. This importantfeedback from businesses during these salesactivities can be provided to policymakers,legislators, and others who can then developthe tools to further improve the Product.“People” refers to the quality of the staffthat are hired by the Missouri Partnership tobuild and develop strong relationships withcorporate executives and other decisionmakersor decision-influencers in the businessinvestment world. The ability of the MissouriPartnership staff to establish and maintaincredibility with this target audience will directlyaffect the Missouri Partnership’s ability to marketMissouri as a top global business location.Additionally, by hiring People with a strong,positive reputation among audiences like thesite selection consulting profession – whichcollectively advises many companies onwhere to locate new investment projects – theMissouri Partnership can increase its salesopportunities for new investment projects.Economic development is fundamentally a salesprocess, and like any other sales effort, businessrecruitment is one that driven by relationships.Ultimately, site selection consultants may beinclined to include Missouri because theyhave had a positive working relationship withthe economic development professionalsrepresenting the Missouri Partnership.Looking ahead to the future, the MissouriPartnership must continue to hire, retain, andcultivate a team of economic developmentprofessionals and support staff with theability, integrity and passion for performingthe important work of promoting Missouri fornew business investment. Most importantly,the Partnership must depend on its team ofprofessionals to forge and take advantage ofrelationships with key decision-makers andinfluencers outside the state. These relationshipswill be pivotal to creating and fulfilling theperception that Missouri is a business investmentlocation represented by high-caliber Peoplewho understand and can deliver on the needs ofcompanies seeking to locate in the state.MARKETING AFFORDABILIT YMissouri ranks 6 th lowest forenergy costs and 4 th lowest forthe cost of doing business.vii

Missouri Partnerhship S T R AT E G Y“Process” refers to the quality and consistencyof practices employed by the MissouriPartnership in managing business recruitmentprojects, both externally with the client companyand internally among different partners atthe state, regional, and local level. Clients andinvestment prospects doing business with theMissouri Partnership should always expect aProcess that results in predictable, consistent,high-quality levels of service, presentation, andprofessionalism. Clients and prospects shouldalso expect a seamless experience whendealing with Missouri’s other state, regional,and local economic development partnerorganizations through the MissouriPartnership. Ensuring these positive impressionswill require the Missouri Partnershipto develop a clearly defined Process thatemphasizes a strong relationship and mutualunderstanding of roles and responsibilitiesamong its partner organizations at the state,regional, and local levels.Our greatest Process-related challenge isintegrating our ongoing efforts with the effortsalready being made our partners across thestate, including the Missouri Departmentof Economic Development. Having movedthe work of marketing and business recruitmentout of the Department of EconomicDevelopment and entrusting it to the MissouriPartnership, the Missouri DED can focus itsenergies on the retention and expansion ofexisting Missouri industry and the creationof an entrepreneur-friendly climate, the twoother key elements of successful economicdevelopment. Avoiding duplication of effortsis critical to ensuring that both public- andprivate-sector resources are used as efficientlyas possible, while also covering the entireportfolio of economic development activitiesbetween the two organizations. Likewise,the Missouri Partnership will need to coordinateits approach to marketing the statewith other groups around Missouri that arealready promoting their respective regionsand communities; doing so will ensure thatthe Missouri Partnership and its partners arereaching the widest possible audience throughour combined marketing efforts.Critical Elements for Success – Product, People and Processproductpeopleprocessviii

I V . A T R U E P U B L I C - P R I V A T E P A R T N E R S H I PThe Missouri Partnershipwas envisioned as justthat: A partnership ofgroups, individuals, andresources from the publicand private sectors, at the state, regional, andlocal levels, all working in symphony to promoteour great state as a premier business investmentdestination for companies around the world.Neither the work done by the Partnership todate,nor any future endeavors undertaken bythe Partnership, would be possible without theongoing support of the following organizations.P A R T N E RMissouri Dept. of Economic DevelopmentHawthorn FoundationMissouri Economic Development CouncilAn Integrated Partnership with the MissouriDepartment of Economic DevelopmentAmong the Missouri Partnership’s manypartner organizations across the state, noneis as important as the Missouri Departmentof Economic Development, the state agencydesignated by the Governor as responsible forenhancing and growing Missouri’s economy.The Missouri Department of Economic Developmentdevelops and administers the wide arrayof financing programs – including the MissouriQuality Jobs Act and Enhanced Enterprise Zone– that are used not only to help facilitate theexpansion of existing Missouri businesses, butalso to aid in the recruitment of new employersto our state. As the Missouri Partnershipcontinues to promote Missouri to companiesaround the globe, the ongoing efforts andresources of the Missouri DED are integral to thePartnership’s success in attracting new businessinvestment.With a mission of stimulating and supportingeconomic opportunity and a high quality of lifein Missouri’s communities, the Department ofEconomic Development works closely with theMissouri Partnership on business recruitmentprojects, principally by deploying the toolkit ofincentives that are necessary to “seal the deal”with companies considering a new locationin the state. While the Partnership focuses onmarketing Missouri as an attractive place to dobusiness, the Missouri DED plays a crucial rolein the sales process by helping make our statea financially competitive option for expansionmindedcompanies. The Missouri DED alsocontinues to work with businesses alreadylocated in Missouri, assisting these importantemployers to grow and succeed throughoutchanging economic conditions. By helpinglay the groundwork for a strong, prosperouscommunity of existing Missouri businesses,the Department is further strengthening thebusiness climate that the Missouri Partnershipaggressively markets to corporations bothdomestically and abroad.In other words, Missouri’s efforts to recruit newindustry are supported by an integrated approachthat draws upon the greatest strengthsof each organization: The Missouri Partnership,with its expertise in marketing and sales;and the Missouri Department of EconomicDevelopment, with its ability to structure competitive,but responsible, financial solutions fornew and existing employers in our state.The Missouri DED also shares the Partnership’scommitment to promoting our state as a premierdestination for new business investment.In addition to co-branding its website (www.DED.mo.gov) and materials with Missouri’s newbusiness brand, the Missouri DED cooperateswith the Partnership on tradeshows and othermarketing events designed to raise Missouri’soverall visibility among targeted industries.Finally, the Missouri Department of EconomicDevelopment is a majority investor in thePartnership’s operations, with additionalfunding provided by the non-profit HawthornFoundation, a long-standing association ofMissouri companies dedicated to supportingthe state’s economic development priorities.MARKE TING LOGISTICSMissouri has the 2 nd and 3 rd largestrail terminals and is ranked7 th for highway miles.ix

Missouri Partnerhship PA R T N E R SSupport from the Hawthorn Foundation andMissouri’s Major Employers and IndustriesLending its resources to aid in Missouri’seconomic development, the HawthornFoundation’s participation in and support of theMissouri Partnership has been essential sincethe concept of the Partnership was first born.The Hawthorn Foundation was created in1982, as a means to facilitate Missouri-basedbusiness and community leader participation instatewide business recruitment, retention, anddevelopment efforts. For more than a quartercenturynow, this private investment by some ofthe state’s most prominent business leaders hasresulted in the creation of innovative marketingprograms, significant gains in industry growth,and economic development for all of Missouri.While retaining its historical mission of supportingtrade and investment missions that targetMissouri business recruitment, as well as whilecontinuing to advise the state’s public officialson economic policy, the Hawthorn Foundationhas also enjoyed success in bringing innovationto Missouri’s economic development strategy.The Foundation has worked in partnership withthe former and current Missouri governors, theMissouri Department of Economic Development,and a myriad of local and regionaleconomic development groups, to createand support cutting-edge initiatives that arefocused on expanding economic opportunitiesfor our state.With a rich and prestigious history of workingwith Missouri’s leading public officials – pastand present – the Hawthorn Foundation continuesto bring together the state’s most promisingbusinesses and brightest business leaders forthe economic betterment of all Missourians.Day-to-Day Collaboration with the MissouriEconomic Development CouncilIn the competitive field of new business recruitment,it is the membership of the MissouriEconomic Development Council (MEDC) thatprovides much of the “blocking and tackling”necessary for the Missouri Partnership to besuccessful in marketing Missouri and workingnew recruitment opportunities. Comprisedof representatives from the state’s variouseconomic development organizations, theMEDC is a statewide, not-for-profit associationof economic development professionals andcommunity leaders. Created in 1979 to providea unified voice for economic development,MEDC offers its members programs in professionaleducation, legislation and marketing.The MEDC’s membership is the definitive go-toresource for the Partnership when helpingcompanies understand the advantages ofprospective community locations in Missourifor a new facility investment. Additionally, themember communities of the MEDC are integralparticipants in the Partnership’s cooperativemarketing model; together with our partners atthe regional and local levels, the Partnership isable to much more successfully promote Missourithrough its various marketing initiatives.MARKE TING GREEN ENERGYMissouri clean energy initiativerequires utility companies toincrease use of renewableenergy to 15% by 2021.x

V . A D V I S O R Y G R O U PThe Missouri Partnershipenjoys the leadership ofa diverse and committedBoard of Directors, aswell as the support ofpublic-sector and private-sector partners acrossthe state.S U P P O R TThe Partnership is also fortunate to benefitfrom the consistent guidance of its AdvisoryGroup, the members of which are some of themost experienced economic developmentpractitioners in Missouri. These individuals notonly were instrumental in drafting the originalconcept of the Partnership, but today serve as aregular source of counsel on various operationaland strategic issues confronting the Partnership.Additionally, as of changes made to the organization’sbylaws in 2009, the Advisory Groupnow holds an ex officio seat on the Partnership’sBoard of Directors.Bernie AndrewsVice PresidentColumbia Regional Economic Development Inc.Steve JohnsonSenior VP of Economic DevelopmentSt. Louis Regional Chamber and Growth Association(RCGA)Bob MarcussePresident & CEOKansas City Area Development CouncilJohn MehnerPresidentCape Girardeau Chamber of CommerceGreg WilliamsVice PresidentSpringfield Area Chamber of Commerceand current Advisory Group representative tothe Partnership BoardBernie Andrews Steve Johnson Bob Marcusse John Mehner Greg Williamsxi

V I . K E Y M A N A G E M E N TMissouri Partnerhship P E O P L EChristopher Chung, President and CEOBefore joining the newly formed Missouri Partnership in November 2007, Chris served as Managerof the State of Ohio’s Office of Business Development. Chris has over twelve years experience ineconomic development and is a certified Economic Development Finance Professional through theNational Development Council. Chris attended The Ohio State University, graduating Phi Beta Kappawith Bachelor of Arts degrees in Japanese and Economics, and is nearing completion of a Masterof Arts in Public Policy and Management. In 2009, Missouri Governor Jay Nixon appointed Chris tochair the Governor’s Automotive Jobs Task Force, a group charged with making recommendations ongrowing investment in the state’s automotive industry.Kimberly Young, Vice President – Business RecruitmentKim’s previous employers include the Greater Wichita Economic Development Coalition (GWEDC),a public-private regional economic development organization representing nine counties in SouthCentral Kansas, and the Kansas Department of Commerce, where she served as the Prospects Manager.Kim attended Pittsburg State University, graduating with a Bachelor of Science degree, and wasselected to the Phi Kappa Phi Honor Society. In December 2007, Kim graduated from the Universityof Oklahoma’s Economic Development Institute. She is currently working toward certification ineconomic development through the International Economic Development Council.Dennis Pruitt, Vice President – International Business RecruitmentPrior to joining the Missouri Partnership, Dennis was the Executive Director of the MontgomeryCounty Action Council, a county-wide, economic development organization based in Independence,Kansas. Dennis is past chairman of the economic development council of Southeast Kansas, Inc.,a 13-county regional economic development group, and has served on the board of the KansasEconomic Development Alliance. Dennis is a certified Economic Developer, and he is active in theInternational Economic Development Council, serving on its International Committee. He holds aMaster’s degree in Urban Planning from Texas A&M University, as well as Bachelor of Arts degrees inHistory and French.Josh Beck, Vice President – Business RecruitmentBefore joining the Missouri Partnership, Josh Beck was the Executive Director of Montgomery CityGrowth, Inc, a public-private economic development partnership in Montgomery County, Missouri.Josh also has marketing experience with an economic development related publication and salesexperience in the private sector. He attended Westminster College and graduated summa cum laudewith a Bachelor of Arts degree in Business Communication and a minor in Leadership Studies.Janet Muhm, Director – Marketing and CommunicationsJanet Muhm has worked in advertising and marketing for over 25 years. Her experience includeswork for non-for-profits, full-service agencies, and colleges and universities. Prior to joining theMissouri Partnership, Janet owned her own business writing and designing for a local and nationalclient list. She is a graduate of Washington University in St. Louis.Christopher Chung Kimberly Young Dennis Pruitt Josh Beck Janet Muhm

The Missouri Partnership alwayswelcomes new partners in its mission to marketMissouri to businesses around the world.For more information about becoming aninvestor in the Missouri Partnership, pleasecontact us at +1.314.725.0949.

The Missouri Partnership120 South Central, Suite 1150St. Louis, Missouri 63105ph: 1.314.725.0949 | fx: 1.314.725.0743toll free: 1.877.725.0949web: www.missouripartnership.com