Health care, education carry Springfield economy

The New Mexico State University professor was the keynote speaker at the second annual Economic Outlook Conference, held Sept. 29 at the University Plaza Convention Center. The Springfield Business and Development Corp., a subsidiary of the Springfield Area Chamber of Commerce, hosted the event, which drew 245 attendees.

“You have some unique advantages,” Catlett said, referring to how Springfield’s economic base, the health care industry, is uniquely suited to reap the benefits of the maturing population.

CoxHealth and St. John’s Health System, which employ about 16,500 combined, are the city’s two largest employers. The area’s third-largest employer, Wal-Mart stores, boasts 4,300 workers. Springfield Public Schools employs 3,000 and Missouri State University employs 2,665 to round out the list of the area’s top-five heavy hitters.

Springfield is the best kind of industry town, according to the conference’s panelists: Evangel University President Robert Spence, Kraft Foods Plant Manager Joseph Metzger, Battlefield Mall Manager Rob Rector and retiring St. John’s President and CEO Jay Eckersley.

Having a local economy founded on health care and education, the panelists said, means a bright future for Springfield, regardless of factors such as low consumer confidence rates.

According to a Sept. 27 release by the not-for-profit Conference Board, consumer confidence rates in September were the lowest they have been in nearly two years.

However, Catlett said Americans have more disposable income now than at any time in history.

To support his claim, Catlett said American industries produce four times more now than a generation ago, and that 40 percent of American home purchases are second homes.

So, why economic pessimism nationally?

Rising oil prices, war abroad and the hurricane-devastated Gulf Coast are factors, but Catlett said it’s mostly because wealthy American consumers aren’t satisfied with their wealth.

“People bitch the loudest when their bellies are full,” Catlett said in his conference presentation.

Catlett estimates that the 106.6 million American households have about $7 trillion in cash at their disposal. The result, he said, is a segmenting market in which businesses try to fulfill the superfluous, niche wants of demanding consumers.

And, Catlett said, Springfield’s low land costs and regional economy make it a prime market for growth.

According to the Greater Springfield Board of Realtors, the average Springfield home sold for $126,240 in 2004, while, according to the Federal Housing Finance Board, the national average home price in 2004 was $264,540.

Meanwhile, the Bureau of Economic Analysis has determined Springfield’s per capita annual income growth is 5.6 percent compared to the national average of just 4.7 percent.

St. John’s Eckersley said he expects the area’s population to increase 4 percent to 7 percent during the next five years, while his health system already serves 35,000 square miles and a population of 1.1 million.

Battlefield Mall’s Rector called Springfield the “regional downtown” for 27 counties, noting people drive as much as 125 miles to shop in Springfield. He said Springfield’s sales tax growth was 1.5 percent to 3 percent in 2002 but is now averaging 4.25 percent to 4.75 percent.

Evangel’s Spence said Springfield colleges and universities teach 39,000 students, 90 percent coming from other communities.

“It’s a tremendous economic engine in this area,” Spence said, “and it’s going to continue.”