Mindfulness Needed: Business growth is achievable, despite uncertain economy, company leaders say

Noting an economic landscape that seems to frequently be in flux with sticky inflation, a changing tariff and interest rate environment, labor market concerns and now the longest federal government shutdown in U.S. history, business growth remains achievable, local company leaders say.

At Higginbotham Insurance Agency Inc., Chase Marable, managing director, said he’s seen a lot of growth from partners with the insurance agency, such as the public sector, health care and construction. He says the Fort Worth-based company employs roughly 4,000 nationally, and over 50 of them work in its Springfield and Branson offices.

“A lot of our business is really dictated by the markets and by the pressures and the environment that happens around us, surrounding our clients, surrounding our insurance companies that we partner with, things of that nature,” he says. “As our partners grow, we grow.”

Marable says the political environment, particularly amid the government shutdown, which began Oct. 1, may be contributing to some businesses hesitating to make big investments.

“We’ve also been seeing a lot of rising costs on property valuations, reinsurance on the insurance carriers pushing down some increases to our clients or in the market,” he says. “We’ve also seen inflation on health care costs as well.”

Talent issues
Workforce and employee retention is the top issue for Higginbotham, Marable says, adding the company is implementing artificial intelligence to increase efficiencies in financial reporting.

“We always look at it from Higginbotham’s perspective as we are a people-first organization,” he says. “If we are wanting to best serve our partners, then we want to make sure that we’re bringing in the best people that fit the values that we have, fit the culture we have.”

Employee attraction and retention is an ongoing challenge for Paladin Managed Solutions LLC, says Donald Mihalevich Jr., co-owner and CEO of the technology company. The company, which he says employs 15 at its Springfield office, is seeing rising costs not only for equipment but the workforce.

“With the rise of remote work and hybrid jobs, Springfield is starting to deal with a little bit more of cost of labor that is a little bit more aligned to the country, whereas it used to be more aligned just local,” he says. “I do feel like people have opportunities to make pretty good money if they can land remote or hybrid roles. And that’s the talent you’re competing for.”

Noting his company doesn’t offer remote jobs, a lot of what Mihalevich calls his information technology talent is contracted through Konica Minolta, for which his company is a full-line dealer of office equipment.

Competition for talent may only grow in the next few years, Mihalevich says.

“You’re competing with Google and Apple and Meta and everybody else,” he says. “Everybody wants technology talent in our world. That has dramatically made it harder to hold on to your very best people. If you’re a multibillion-dollar company, it may not affect you quite as much, but for a small company, holding onto top talent becomes an incredible challenge.”

Paladin’s challenge in retaining talent fits in among the top five issues facing businesses in the coming five years, according to Springfield Business Journal’s 2025 Economic Growth Survey of local business leaders. Talent attraction and retention received the second-highest response at 49%. Only attracting new customers finished with a higher percentage at 62%. Availability of a skilled workforce was the third-highest response, garnering 46%.

Making plans
Marable’s observation that some companies may be hesitant to commit to expansion plans is on target for Paladin Managed Solutions, Mihalevich says.

“What I’ve experienced and what a lot of people have experienced in IT is people are still holding off on really jumping in with both feet. There’s still an air of uncertainty,” he says, noting increased costs are a primary factor in holding the line on major company investments. “I don’t think there’s a single thing on my balance sheet that hasn’t gone up. And even though inflation is down, a lot of those things have not come down yet.”

Mihalevich says he would like to expand into other markets but plans to continue “a little bit of hoarding cash” in the interim.

“I’ve already began to go a little bit more national with my IT services because we’re not geographically limited in that part of my business,” he says. “I would like to have a new building or headquarters here in Springfield, but buildings and land have been very, very expensive ever since COVID.”

Mihalevich says he continues to invest in technology such as AI with the desire to increase productivity in his workforce even amid a competitive national marketplace.

“Keeping that cost down and making (employees) more productive is like money in the bank,” Mihalevich says.

Vital growth
Vital Farms Inc. (Nasdaq: VITL) is among companies on the grow in the Springfield area.

Vital Farms President and CEO Russell Diez-Canseco spoke to SBJ on Nov. 4 to discuss company operations following the release of its third-quarter financial report.

“Springfield is the vast majority of our business,” Diez-Canseco says of the Austin, Texas-based company. “We are about 95% eggs, and the rest of it is butter. Just about all those eggs get packed in Springfield at Egg Central Station.”

Vital Farms cut the ribbon on its Springfield plant, dubbed Egg Central Station, in October 2017.

In its third-quarter financial report, Vital Farms reported a 120.5% jump in net income to $16.4 million from $7.4 million a year earlier. Diluted share earnings moved up to 36 cents from 16 cents year over year, and net revenue during the quarter rose 37.2% to $198.9 million.

The company employs 433 people at Egg Central Station and is hiring for all shifts locally, Diez-Canseco says, noting the facility would employ 511 when fully staffed. The employee count is up nearly 22% from around 355 the company reported in April.

A third egg grading system is now online in Springfield. Manufactured by Moba Group, the system began producing eggs in October, Vital Farms officials say. The company projects it will improve production capacity and efficiency by 30%, according to past reporting. Officials reported in the financial report that the new line in Springfield expands capacity to about $1.2 billion in annual egg revenue, positioning the company to meet growing consumer demand.

In summer 2024, company officials announced expansion plans into Seymour, Indiana, where Vital Farms will add its second egg washing and packing facility. The 72-acre facility is projected to open in 2027, as the company targets $1 billion in annual net revenue by that year, according to its most recent financial report.

Branch addition
For Carthage-based Four States Bank, achieving growth requires a mindful approach, says Jeff Williams, president and CEO of Four States Bank, also known as 4SB for short.

State officials say 4SB, which launched in August 2024, is the first new bank charter approved in Missouri in nearly 16 years. Operating its headquarters in Carthage at 213 Lyon St., 4SB operates as a wholly owned subsidiary of Four States Bancshares Inc. It has branches in Carthage and Joplin and plans to add a third during the first quarter of 2026 in Springfield at 2045 S. Glenstone Ave., Williams says. 4SB represented an investment of more than $1.1 million and the creation of 27 jobs, according to past SBJ reporting.

Wiliams says 4SB is committed in the coming years to not only have competitive products and services amid a competitive banking marketplace in southwest Missouri but also generate noninterest sources of revenue through options such as mortgage operations. The new Springfield branch will house the bank’s mortgage department, he says. 

“We’ve also got to have the team that can deliver and take care of customers and get that outstanding service,” he says.

The bank ended the third quarter with around $80.7 million in assets, $58 million in deposits and $55 million in loans, he says, adding the totals are right in line with company expectations. 

Declining to disclose the Queen City branch’s startup costs, Williams says the company made the bulk of its technology investments with its launch. That included its software services with Monett-based technology provider Jack Henry & Associates Inc. (Nasdaq: JKHY) and its mobile app.

“It’s just contingent on us to make sure we make good decisions with our resources,” Williams says regarding his company’s ongoing and future cost challenges. “If we’re going to do a building or a branch, we want to make sure we do the right branch at the right cost. If we’re going to hire new employees, we want to make sure that they’re a good fit with our culture and they can deliver relationships to the bank, and we grow together.”

Digital Editor Geoff Pickle contributed.