Economically Speaking: Some businesses thrive despite slow economy

Joseph L. Driskill is the director of the Missouri Department of Economic Development.

In 2002, economic growth continued to lag due in part to the impact of corporate accounting scandals, continuing stock market volatility and sharply falling consumer and investor confidence. Yet in the midst of all the business closings, job layoffs and falling markets, several bright spots in Missouri's business community remain.

Many companies have remained resilient to the downturn in the current economic cycle.

Here are a few examples of businesses that, in the face of adverse economic conditions, have still been able to boost productivity, enhance technological capacity, make investments in our communities and create jobs.

Wyeth BioPharma in St. Louis is a research-based, global pharmaceutical company. Its St. Louis campus opened in 1998 with a staff of six employees and has grown exponentially since that time, with the addition of about 300 employees through the end of 2001. In April, the company broke ground on its second phase of expansion which will result in 150 more jobs.

Boehringer Ingelheim Vetmedica, a global leader in the animal pharmaceutical industry, recently completed a $125 million expansion in St. Joseph that created 100 new jobs.

The company's sales have increased four times in the last five years.

Phoenix Scientific Inc., based in St. Joseph, is a global leader in generic animal pharmaceutical manufacturing. The company recently completed construction of a 110-acre research facility that includes a fluid manufacturing plant, warehouse/distribution center and offices. This new facility created 100 new jobs.

In February 2002, St. Louis-based Sigma Aldrich celebrated the grand opening of its Life Science and High Technology Center. The new technology center will create more than 100 new high-wage science jobs and greatly increases the research capacity in St. Louis.

Cerner Corporation is one of Missouri's fastest growing companies with about 5,000 employees. Construction is underway on a new headquarters that will accommodate an additional 1,500 employees.

The Kansas City-based company provides clinical management information and knowledge systems to the life-sciences industry.

McAllister Software Systems, located in the community of Piedmont, offers a veterinary software system called AVIMark that is used by thousands of vets across the country. Since McAllister released the software in a Windows format in 1996, the company has grown by leaps and bounds. Between September 1996 and August 2002, McAllister's work force has increased from six to 65 employees.

In February 2002, Procter and Gamble invested $200 million to upgrade its equipment for diaper production in Cape Girardeau County.

In December 2002, the company announced a $150 million investment to upgrade equipment for its Bounty and Charmin product lines as well.

Over the past two-years, Emerson Motor Technologies in Kennett has enhanced its overall performance in plant systems and operations, including improved quality and cost management. Through implementation of lean manufacturing techniques, Emerson has boosted productivity and added four new product lines, which has resulted in the creation of approximately 100 sustainable jobs over the last year.

CitiMortgage chose to consolidate its St. Louis area operations in O'Fallon. As a result, 3,500 jobs will be retained and another 1,500 new jobs will be created in the St. Louis region.

Magellan Health Services also decided to consolidate and expand its national service center in the St. Louis area in January.

The project will result in the retention of more than 1,400 jobs, as well as 500 new jobs.

These are just a handful of successes that resilient Missouri businesses have achieved in the midst of the recession.

In 2003, we will work hard to generate more growth and prosperity in our business community. We fully understand that Missouri's economic plan for the future will require a concentrated focus on the areas where we are competitive and also those with the most potential for growth in our state.