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While retention
is job one in economic development these days, generating good,
new jobs—whether from expansions or new arrivals—is crucial lifeblood
to the region’s economic vigor.
Ford Motor Company’s decision to keep open its Hazelwood plant until
at least 2007 illustrates the first point: 2,700 jobs, averaging
$62,000 a year, were extended for at least two years, and an additional
11,000 related jobs statewide were made more secure by the September
29 announcement.
What’s more, Ford announced that it plans to invest more than $100
million in its plant and operations.
“That’s a hopeful sign,” said Ken Dearing, president of UAW Local
325, “but we’re not out of the woods. We still need to convince
Ford to bring in a new product, and that still comes down to the
economy and market share.”
Chuck Mueller, Ameren Corporation’s CEO, chaired the Ford Hazelwood
Task Force. He credits bi-partisan leadership in Jefferson City
for assembling an effective incentive package that helped Ford with
its decision.
“It was classic economic development,” noted Bob Coy, RCGA senior
vice president for economic development. “The make-up of the task
force reflected that the Ford plant had implications for just about
every sector of the community. Its two dozen members represented
federal, state and local officials—both elected and staff—of both
parties; leaders from business; and leaders from labor.”
Mueller emphasized the credit due Dearing’s colleagues: “During
what must be an incredibly stressful time, workers in Local 325
decided to make it as difficult as possible for Ford to decide to
close us down. The plant had always been efficient, but they stepped
it up and improved their productivity measurably.
“Besides being a great location for an automotive plant,” Mueller
concluded, “I think that shows it’s not just a sales pitch when
we say St. Louis has a top-notch, dedicated workforce.”
The Solae Company sprang forth last April with the merger of DuPont
Protein Technologies and the ingredients operations in North America,
Europe and Brazil of Bunge Ltd. The new outfit—which markets products
derived from soybeans—found it had headquarters and jobs in both
Fort Wayne, Ind., and St. Louis.
Terry Fox, Solae’s chief financial officer, said, “We did a comprehensive
economic analysis of the relative costs, and we found St. Louis
economically attractive.” That discovery also preserved approximately
425 jobs in research and management here.
When Pfizer acquired Pharmacia, it was again the quality of the
available talent that helped the world’s largest pharmaceutical
company decide to restructure its 200-acre Chesterfield campus as
one of its six research sites worldwide.
And again, it demonstrated the connection between retention, economic
development and jobs.
Mike Montague, senior director of science communications for Pfizer
said, that in addition to a Missouri sales force of 300, the company
employs roughly 1,300 people at its research site. Montague cited
“a splendid record of achievement” of St. Louis researchers as a
leading factor in Pfizer’s designation of St. Louis as one of six
research locations. St. Louis is focused on two therapeutic areas,
namely, arthritis and heart disease. In addition, the St. Louis
site has a Center of Excellence for biologics (or protein-based
medicine).
He said several new medicines had been discovered or developed here
over the last 10 years: Celebrex, accounting for some $3 billion
in sales, as well as Bextra, Dynastat, Inspra and Somavert.
“Pfizer appreciates the quality of scientists here, Montague said,
“and the relationships we have with Washington University and other
academic and research institutions in the region.”
When CitiMortgage decided to consolidate its scattered St. Louis
offices into one 515,000-square-foot, $85 million facility at the
intersection of Highway 40 and Highway K, it preserved 3,500 jobs.
“They were looking to consolidate either here or in Detroit,” said
St. Charles County director of business development David Leezer.
“We’re thrilled that not only do those jobs remain in the St. Louis
area, CitiMortgage will have added 1,500 new jobs by 2004.”
Leezer said that CitiMortgage will be the county’s largest employer.
He credited the county, the City of O’Fallon, the Francis Howell
School District and the Missouri Department of Economic Development
for all contributing “meaningful incentives.”
He also credited the RCGA’s senior vice president of economic development:
“Bob Coy and his staff ensured that the CitiMortgage decision makers
looked at the local options seriously. Their ability to promote
the St. Louis region’s comparative strengths contributed in a very
real way to keeping 3,500 very good jobs, and adding 1,500 more.”
Coy said, “We believe it’s important that the RCGA can provide useful
information, generate and deliver leads, commission important research
like the Battelle and Kotkin studies and initiate region-wide discussions
of strategy and policy.
“But there’s a lot of heavy lifting at the state and local level
in both [Missouri and Illinois],” he continued, “Financial considerations
that are simply not part of our mission, which are crucial to the
economic well-being of the region.”
For instance, the assistance package that is widely recognized with
helping Ford decide to extend its plant’s operation is valued at
around $17 million: $9 million from Missouri, $8 million from local
sources.
State-local cooperation also helped persuade Hershey Foods Corporation
to announce last May that it plans to build a new distribution center
on 90 acres in the Gateway Commerce Center in Madison County.
The Korte Company is the design/ build contractor for the structure
that features a 39-foot ceiling, 160 dock doors and full temperature
control. When the 1.1 million-square-foot facility is up and running
in March, it will employ more than 200 people.
Hershey’s vice president of logistics and customer service Bill
Turner in a press release credited St. Louis and Gateway Commerce
Center, in particular for the “central location, excellent transportation
infrastructure, and abundant and affordable workforce made the park
stand out from the crowd.”
“What I think it comes down to,” noted Bob Coy, “is that economic
development works best when it’s done in partnership. The commitment
of the economic development community on both sides of the river
makes everyone’s job easier.” |
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