Manufacturing, logistics firms pump jobs, money into economy

The annual economic impact of manufacturing in the five-county Springfield metropolitan statistical area is $18.6 billion, according to an economic impact study conducted by Development Strategies of St. Louis. Logistics firms contribute another $14.3 billion.

The study results were released Dec. 13, hours before the chamber named Ozarks Coca-Cola/Dr Pepper Bottling Co. its Manufacturer of the Year at a luncheon.

A panel of six judges chose the century-old, family-owned bottling company from a field of three finalists. Also in the running were Jarden Plastic Solutions and Tuthill Vacuum & Blower Systems. All three companies were recognized at the luncheon.

These manufacturers are among 727 in the metro area that spend $6.74 billion annually that, in turn, creates an economic “ripple effect” of almost $12 billion. They employ 19,200 people with an average annual salary of $52,400, according to the analysis.

Logistics firms – in transportation, warehousing and wholesale trade – directly spend $5.2 billion, which has a secondary impact of about $9.1 billion on the regional economy. About 22,400 people are employed by area logistics firms, which pay an average annual salary of $44,500.

Projected job growth

More than one-third of all jobs in the Springfield metro area – about 90,000 – are directly or indirectly created by manufacturers, and nearly 100,000 jobs are tied to the logistics sector.

Full-time jobs account for 80 percent of manufacturing employment and 70 percent of logistics employment, the survey reports.

Retail is the largest jobs sector in the metro area, followed by health care. Logistics ranks No. 3, and manufacturing is fourth, said Bob Lewis, principal and chief economist at Development Strategies.

Job growth projections in the logistics sector are more promising than in manufacturing, Lewis said, noting that increased automation has made the latter less labor-intensive.

Manufacturers have struggled with growing jobs and maximizing efficiency, said Rita Needham, executive director of the Southwest Area Manufacturers Association. Costs associated with taxes, health care, energy, government regulation and lawsuits make it difficult to remain competitive in the global marketplace, she said.

While manufacturing and logistics are relatively stable parts of the regional economy, neither sector has experienced high net job growth, Lewis said, adding that targeted economic development may be needed.

Growing the number of logistics jobs is certainly on Greg Williams’ radar.

“We see growth opportunities in the logistics category to a much greater extent than we do in manufacturing,” said Williams, the chamber’s senior vice president of economic development. “The logistics and transportation industry supports so many other sectors of the economy. It all revolves around a critical mass of business activity.”

The region’s robust economic growth, its central location and access to major ground transportation routes all play into Springfield’s emerging status as a “capital of the logistics trade,” Lewis said.

The chamber also will continue its focus on industrial development, said Williams, who wasn’t surprised by the average annual salary paid by manufacturers.

A large portion of manufacturing jobs pay upward of $17 an hour, which he said has helped boost the metro area’s per capita income.