Chamber exceeds business partnership's financial goal

Springfield-area businesses have met the challenge of raising funds; now the challenge of making the most out of the money rests firmly on the Springfield Area Chamber of Commerce.

The chamber's six-month economic development capital campaign, called Partnership for Prosperity, is wrapping up with nearly $250,000 more in contributions than the chamber was hoping for. As of Dec. 18, $1.74 million is committed from 81 investors, exceeding the $1.5 million goal.

The contributions from member investors will step up funding for the Springfield Business & Development Corporation, a subsidiary of the chamber, during the next five years.

Those monies equate to about $300,000 spent annually on work-force development, regional development, higher education/health care economic development, business retention and expansion, marketing and media relations, and investor relations programs through 2007, said Greg Williams, vice president of economic development for the chamber.

The economic development capital campaign drive officially ends Dec. 31, and the program begins Jan. 1.

"The challenge is now," Williams said.

Economic stimulus

The visible advancements the chamber hopes to achieve in the next five years are:

7,500 new jobs in the Springfield metropolitan area;

12,500 new jobs in the 10-county region;

$200 million in new capital investment in the 10-county region;

to increase the region's annual income growth rate; and

to increase the region's annual per capita income.

According to the United States Department of Commerce, Bureau of Economic Analysis, Springfield's metropolitan statistical area had an annual income growth rate of 5.5 percent during the 1990-2000 decade and its per capita income is $24,473 as of 2000, the most recent year for which data is available.

"Those are the bench marks that will be our report card each and every year," chamber President Jim Anderson said of the program's objectives.

As contributing bankers, both Great Southern President Joe Turner and Empire Bank President Mike Williamson view the program as an economic stimulus for the next five years. Local banking institutions are dependent on the Springfield region's economy, they said.

"In general, bank performance is not going to be any better than the community as a whole," Williamson said. "So if this helps stimulate the Springfield economy, or brings in additional opportunities to the market, then the banking industry will share in those. We see this as an investment in the community."

New business

Among the partnership's goals is to make the region more attractive to new business, which Williams said is easier said than done because competition in the economic development organization world is fierce.

"There are 15,000 economic development organizations in the United States and 14,999 compete with us everyday, for just under 2,000 projects annually," he said. "Anecdotally, that will tell you competition is fierce."

Those projects represent new businesses, expansions and relocations.

Comparing Springfield to some of its competition cities like Lexington, Ky., Colorado Springs, Colo., Mobile, Ala., Chattanooga, Memphis, and Knoxville, Tenn., Little Rock, Ark. and Wichita, Kan. the city has faired pretty well in its growth rate during 1990 to 2000. Springfield's more than 20 percent population growth during those 10 years is exceeded only by Colorado Springs. However, Springfield's per capita income, at less than $25,000, ranks second from the bottom among those cities.

Only Mobile is lower, yet none of those cities' per capita income is greater than $30,000.

Williams is emphasizing the annual income growth rate of 5.5 percent, he said.

"We want to realize an income growth rate level that rivals those peer communities," said Williams. "Hopefully, we will exceed the state's per capita income growth level," which at the end of 2000 was 5.1 percent over 1999.

The statewide per capita income level is more than $27,000.

In 2003 the chamber plans to attend national seminars and trade shows, enhance its business visitation programs and update software and technology databases. Also, the partnership has created a new position; chamber officials are interviewing for a manager of work force and business development.

At home

Chamber officials say a stronger focus on existing business is expected, especially with the onslaught of recent manufacturing job losses.

"Manufacturing is always important," said Allen Kunkel, the chamber's manager of regional development. "One of the things we're going to do is focus on business retention and expansion."

Kunkel said because existing companies create 85 percent of new jobs, regional development of those businesses will be one of the largest funded programs, implemented through the already successful Ozarks Regional Economic Partnership.

"We spend too much going after those new companies when we should be fostering existing companies and helping them expand," Kunkel said. "I think you're going to see us focus more on existing business and helping them expand and flourish in the Springfield region. Since the economy and the manufacturing (industry) are so tough right now, I think we're better off working with what we have here."

Williamson sees the value in focusing on local companies.

"When you're seeking new businesses to come into the community, you go out and fish, but a lot of times you don't catch anything," he said.

Hopefully, the next five years will have more catching than releasing.