Smart Money: Wills prove necessary even for young people

What effect has the recent economic downturn had on Springfield's business attraction efforts?

While Springfield's economy has remained stable as compared to the national economy, our business and industry attraction efforts have been affected. The volume of prospect activity has slowed considerably over the past year. The lion's share of new jobs created in the past year have, obviously, been created by existing business, and, as far as we're concerned, that's just fine. But we do anticipate seeing more activity in 2004 as the country continues to rebound from the most recent recession. Many of the indicators that we watch are beginning to show positive signs, and while I don't believe we'll see unbridled growth in our local market, 2004 is expected to be a more normal year for business attraction and development.

Has the Springfield Business and Development Corporation changed its methods in recent years in reaction to the downturn? If so, how? If not, why not?

If anything, our organization in conjunction with our partner members at City Utilities, Greene County and the city of Springfield, have become more aggressive in marketing, communications and relationship building. A lot of what we're currently doing is a result of our successful capital campaign for economic development. We have more resources both human and financial to do more to stimulate local and regional economic activity, whether it's work force development, regional economic development or industrial park development.

What kind of interest is the city generating among potential new businesses, and how does that compare with previous years?

As I said earlier, the level of activity is down as compared to previous years. That's purely a result of the national trends recently. The interest in Springfield, Greene County and the region is always going to be there. We just need to see a trend line back to the positive and begin seeing business freeing up capital for new projects, expansions into new markets, etc. And, frankly, we have begun to notice a turn in new prospect activity.

What are the Springfield area's greatest challenges in attracting new businesses and new jobs?

There are many. Competition with our peer cities and surrounding states, (and) with overseas markets. More and more decisions, unfortunately, are being made in board rooms all across this country to shift manufacturing and service operations to places where it's cheaper to produce. Domestically, we compete with cities and states that are doing some incredible things related to business incentives. Some literally buy new businesses and the jobs that come with them. We just don't and won't do that.

Secondly, Missouri's business climate poses some challenges, mainly in the need for workers' compensation reform, tort reform and unemployment insurance reform. In order to remain competitive with other states, we've got to focus on creating a better atmosphere for business.

Third, the state of Missouri really needs to focus on the development of business development programs that are of benefit to new companies in the early stages of operation. The majority of incentive programs in our state are based on various tax credit programs. And while some are attractive to business, most don't benefit the company for several years (until) the company eventually generates an income tax liability in Missouri. I advocate the development of "front-end loaded" incentives to business and industry, programs created to entice new business development in our state while not breaking the bank of state government.

And, finally, one of Springfield's greatest challenges and, frankly, one of the country's greatest challenges is education and work force development. If we don't do a better job preparing our people for the workplace in both hard skills like reading, writing and arithmetic, as well as the soft skills like character education we'll continue to see a deficit in our potential as a community and as a country.