What happens when the business community unites around a strong plan?

MISSOURI CHAMBER OF COMMERCE AND INDUSTRY Progress! Since the launch of Missouri 2030: An Agenda to Lead, the Missouri Chamber Foundation has been on a mission to unite the business community behind a statewide, data-driven, solutions-oriented strategy of policy and program recommendations to reposition our state as a global Progress! economic leader. We are starting to see significant return on this effort. These recommendations helped define the 2017 legislative session, one of the most productive in recent history. In addition, Missouri 2030 is behind progress in other statewide initiatives, especially in the area of workforce development. You can find more details about this work in the pages that follow.

Missouri 2030 is a comprehensive effort to provide leadership, direction and a long-range economic development plan for the state of Missouri. It puts Missouri’s business community in charge of the economic fate of our state by driving collaboration around a long-term plan that transcends political cycles and sets transparent metrics and benchmarks that will hold leaders accountable for progress.

To create Missouri 2030, the Missouri Chamber Foundation hired Gallup and one of the nation’s best economic development strategists, Ted Abernathy, to analyze our state’s economic position. We talked to site selectors, economic developers and more than 1,000 of Missouri’s top CEOs and business leaders to learn about our economic strengths and weaknesses. Our findings were disturbing. Based on Gallup’s research and comparable economic data, we concluded that Missouri was falling behind. Without unified, statewide business leadership and ambitious new efforts, our state’s economic performance was not going to improve. In fact, Missouri’s position would likely get worse compared with other states that were actively addressing employers’ needs.

So the Missouri Chamber Foundation focused on four drivers that could make the most impact on our economy:

• Preparing the Workforce • Connecting Through Infrastructure

• Competing for Jobs • Uniting the Business Community The focus is working.Missouri 2030 has provided a sense of urgency to the business community and policymakers. The plan has sparked action to enact long-overdue change in economic policy. More important, because Missouri 2030 was written with an eye toward long-term, statewide improvement, the plan will continue to fuel positive change for years to come. We still have a long way to go to get to the Missouri we all want and expect. Missouri 2030: An Agenda to Lead is how we get there.

Sincerely,

Daniel P. Mehan President/CEO

3 4 The Missouri Chamber Foundation is providing the leadership and direction our state needs to compete through Missouri 2030. The implementation of a clear, data-driven, long-term plan is critical to the future of our state. The Missouri Chamber’s investment in “Missouri 2030 is already making a difference. – Dennis Vinson, Owner Signature Packaging” and Paper

Table of Contents

Accomplishments: Uniting the Business Community...... Page 6

Accomplishments: Policy...... Page 11

Accomplishments: Programs...... Page 16

The Missouri 2030 Plan...... Page 18

5 Accomplishments : UNITING THE BUSINESS COMMUNITY BRINGING TOGETHER MISSOURI’S employers, both big and small, are involved in BUSINESS COMMUNITY the plan, by either providing financial support or expertise or serving on one of our issue alliances. Fragmentation has become the norm for Missouri. The divide and dissent between our political parties, EDUCATING VOTERS AND CANDIDATES urban and rural communities, and special interests ON THE ISSUES THAT MATTER create friction that greatly slows progress on statewide Before the 2016 election, we shared the plan with needs such as education, infrastructure and business candidates and voters and measured support based on climate. If Missouri is going to take action to be candidates’ commitment to workforce, infrastructure more competitive, the business community must lead and competitiveness policy. on these critical issues. We must look for alignment between elected officials and the policies that we Our investment in the Money Trail online tracking believe are necessary to grow the economy. system of labor and trial attorney political contributions That’s why the Missouri Chamber worked with helped voters identify candidates taking large Gallup to survey more than 1,000 Missouri CEOs contributions from these anti-business special interests. and business leaders to find out what they believed were the biggest challenges facing Missouri employers. After years of electing legislators who blocked Gallup also asked what they believed Missouri labor and tort reforms, voters elected a new slate of policymakers should do to fix these problems. lawmakers who would finally break the logjam on these issues. Missouri 2030 is built on that input. More important, the plan continues to be guided by Missouri’s business community. Hundreds of Missouri’s most influential

6 MEASURING OUR PROGRESS

We’ve launched an interactive, online Missouri 2030 Dashboard to measure progress with our plan through key metrics and economic success. The Dashboard is designed to provide clear metrics, transparency and accountability on more than 30 different economic areas. It is updated as data becomes available and is accessible 24/7. By measuring our progress in these key areas, we will hold policymakers accountable.

To view more economic metrics, go to: www.mochamber.com/dashboard

7 I want to thank the Missouri Chamber for stepping up with the Missouri 2030 strategic plan. They are the ones who can provide the research and pull the whole state together. We need to make sure we are speaking loudly and clearly for the business community because if we don’t, who will?

“ – Lara Vermillion, President Blue Springs Chamber of Commerce” MISSOURI CHAMBER FEDERATION Arnold Chamber of Commerce Greater Kansas City Chamber of Commerce Marshall Chamber of Commerce Barton County Chamber of Commerce Greater Maryville Chamber of Commerce Maryland Heights Chamber of Commerce Belle Chamber of Commerce Greater Poplar Bluff Area Chamber of Commerce Mexico Area Chamber of Commerce Belton Chamber of Commerce Greater St. Charles County Chamber of Commerce Mid County Chamber of Commerce Blue Springs Chamber of Commerce Greater Warrensburg Chamber of Commerce Moberly Area Chamber of Commerce Bolivar Area Chamber of Commerce Greater West Plains Chamber of Commerce Monett Chamber of Commerce Branson/Lakes Area Chamber of Commerce Hannibal Area Chamber of Commerce Neosho Area Chamber of Commerce Brentwood Chamber of Commerce Harrisonville Area Chamber of Commerce Nevada/Vernon County Chamber of Commerce Callaway Chamber of Commerce Hermann Area Chamber of Commerce Nixa Area Chamber of Commerce Camdenton Area Chamber of Commerce Higginsville Chamber of Commerce North Kansas City Business Council Cape Girardeau Area Chamber of Commerce Hispanic Chamber of Commerce of Northland Regional Chamber of Commerce Carthage Chamber of Commerce Greater Kansas City Northwest Chamber of Commerce Cassville Area Chamber of Commerce Hispanic Chamber of Commerce of Northwest Jefferson County Chamber Chesterfield Chamber of Commerce Metropolitan St. Louis of Commerce Chillicothe Area Chamber of Commerce Holden Chamber of Commerce Oak Grove Chamber of Commerce Columbia Chamber of Commerce Independence Chamber of Commerce O’Fallon Chamber of Commerce & Industries Concordia Area Chamber of Commerce Jackson Area Chamber of Commerce Ozark Chamber of Commerce Cottleville/Weldon Spring Chamber of Commerce Jefferson City Area Chamber of Commerce Pacific Area Chamber of Commerce Dexter Chamber of Commerce Joplin Area Chamber of Commerce Park Hills-Leadington Chamber of Commerce El Dorado Springs Chamber of Commerce Kearney Chamber of Commerce Parkville Area Chamber of Commerce Eureka Chamber of Commerce Kennett Chamber of Commerce Perryville Area Chamber of Commerce Excelsior Springs Area Chamber of Commerce Kirksville Area Chamber of Commerce Platte City Area Chamber of Commerce Farmington Regional Chamber of Commerce Lake Area Chamber of Commerce Raytown Area Chamber of Commerce Fenton Area Chamber of Commerce Lebanon Area Chamber of Commerce Republic Area Chamber of Commerce Gladstone Area Chamber of Commerce Lee’s Summit Chamber of Commerce Richmond Area Chamber of Commerce Grain Valley Chamber of Commerce Lexington Area Chamber of Commerce Ripley County Chamber of Commerce Grandview Chamber of Commerce Liberty Area Chamber of Commerce Riverside Area Chamber of Commerce Greater Clinton Area Chamber of Commerce Macon Area Chamber of Commerce Rolla Area Chamber of Commerce

8 Sedalia Area Chamber of Commerce Sikeston Regional Chamber and Area Economic Development Corporation South Kansas City Chamber of Commerce Sparta Area Chamber of Commerce Springfield Area Chamber of Commerce St. Clair Area Chamber of Commerce St. Joseph Chamber of Commerce St. Louis Regional Chamber Ste. Genevieve Chamber of Commerce Stockton Area Chamber of Commerce BUILDING SUPPORT IN COMMUNITIES Sweet Springs Chamber of Commerce ACROSS THE STATE Table Rock Lake Chamber of Commerce Trenton Chamber of Commerce The Missouri Chamber Federation is a partnership Troy Area Chamber of Commerce created to unify the business community’s voice in Union Area Chamber of Commerce the Capitol in Jefferson City and in Washington, Warrenton Area Chamber of Commerce D.C. The Missouri Chamber Federation is a network Warsaw Area Chamber of Commerce of Missouri’s strongest chambers of commerce that Washington Area Chamber of Commerce provides grassroots support on issues that align with Waynesville-St. Robert Chamber of local priorities. Through this program, all federation Commerce member employers that have 10 employees or fewer Webb City Area Chamber of Commerce automatically become a member of the Missouri Webster Groves/Shrewsbury/Rock Hill Chamber of Commerce and Industry. Currently, Chamber of Commerce more than 100 chambers of commerce are a part Weston Chamber of Commerce of the Missouri Chamber Federation. Together we represent more than 75,000 Missouri employers.

(listing as of August 2017)

9 Accomplishments: POLICY

10 Accomplishments: POLICY For many years, Missouri has been stuck in a state Many of the bills passed this year relate directly to the of almost. The big reforms, the ones needed to truly goals of the Missouri Chamber’s Missouri 2030 plan. chart a new course for Missouri, tended to come up just short — blocked by a governor’s veto, a filibuster FIXING COLLATERAL SOURCE or a failed override vote. One new law approved in 2017 will allow courts to consider whether a plaintiff’s losses have been covered It’s no surprise, then, that some of our state’s biggest or reduced through other sources such as insurance, job growth opportunities were meeting a similar fate workers’ compensation or adjusted hospital billing. — almost but not quite. Senate Bill 31, sponsored by Sen. Ed Emery, a Republican from Lamar, will stop plaintiffs from using In 2017, things changed. Missouri voters and a inflated damages to trigger windfall-sized awards. united business community sent a staunchly pro-jobs governor to Jefferson City alongside record numbers of business-friendly legislators who were empowered to act on several long-neglected priorities. Guided by the research and policy recommendations within Missouri 2030, the Missouri business community was poised for results.

The outstanding work by the Missouri Chamber to unite the business community’s focus to push lawmakers on improving the legal climate in Missouri was truly remarkable. In particular, the passage of common-sense tort reforms will result in significant savings for Missouri businesses from the reduction and avoidance of frivolous employment litigation. “It will save my own company millions of dollars annually, which will ultimately benefit all of our customers in Missouri.

– John Sondag, President AT&T Missouri ” 11 REFORMING EMPLOYMENT LAW RAISING EXPERT WITNESS STANDARDS

Senate Bill 43, sponsored by Sen. Gary Romine, a Another important bill passed into law will stop Republican from Farmington, was signed into law junk evidence from influencing court decisions. and provides a long-awaited response to a series of House Bill 153 was sponsored by Rep. Kevin Missouri Supreme Court decisions that lowered the Corlew, a Republican from Kansas City. It provides bar in employment discrimination cases and opened the same high standards for trial evidence that are the door to frivolous lawsuits against businesses. For currently required in federal courts and most other a decade, the court-constructed standard has made states. Called the Daubert standard, it ensures Missouri one of the easiest places in the country to that only evidence deemed relevant, reliable and sue a company and win. Trial lawyers profited by provided by qualified individuals will be admitted as exploiting this situation, which forced businesses expert testimony. into a defensive posture and stunted their ability to make necessary personnel decisions to address ENSURING EASE OF TRAVEL workplace problems. Senate Bill 43 fixes this The legislature passed a law to put the state in problem while ensuring that businesses engaging compliance with federal REAL ID standards. The bill in the unacceptable act of discrimination are held will help ensure Missourians will continue to be able accountable. to use a driver’s license to board planes. This bill was also sponsored by Rep. Corlew.

The recent change to the way workers’ compensation law is interpreted under the Templemire decision caused a significant challenge for businesses all over Missouri. We’re grateful to the legislature for addressing workers’ compensation reform this session and establishing a more equitable environment for all parties. Treating each “of our co-workers in a way that is respectful and fair is essential to our company, and the return to the unbiased standard that Missouri has used for nearly 40 years will provide both protection for Missouri workers and predictability for employers.

– Denise Silvey, Manager of Human Resources Paul Mueller Co. Vice Chairman for Public Affairs, Springfield Area Chamber of Commerce Board of Directors 12 ” REDUCING WORKERS’ COMPENSATION ENDING THE DELIVERY FEE TAX LIABILITY Delivery fees will no longer be subject to sales tax Another new law will correct two costly Missouri under a new law sponsored by Sen. Will Kraus, a Supreme Court rulings that relate to the workers’ Republican from Lee’s Summit. Before 2015, sales compensation system. Senate Bill 66, sponsored tax had never been assessed on delivery fees. But a by Sen. Dave Schatz, a Republican from Sullivan, court ruling that year gave the state the go-ahead to fixes the Supreme Court’s 2014 Templemire begin taxing deliveries. Senate Bill 16 will prohibit decision, raising the standard of proof in workers’ the Department of Revenue from assessing sales tax compensation discrimination suits. It also establishes on delivery fees. a fair, logical endpoint for temporary workers’ compensation benefits. The bill will help safeguard ENSURING A CONSISTENT MINIMUM the employer-funded workers’ compensation system WAGE from frivolous benefits claims and excessive litigation. In addition, lawmakers passed a law responding to a minimum wage hike in St. Louis. House Bills 1194/1193 will pre-empt and nullify all local laws establishing minimum wage rates higher than Missouri’s state minimum wage. The legislation was sponsored by Rep. Dan Shaul, a Republican from Imperial, and Rep. Jason Chipman, a Republican from St. James.

BRINGING RIGHT-TO-WORK TO MISSOURI

The General Assembly made quick progress on right- to-work, and Senate Bill 19 was signed into law in early February. Sen. Dan Brown, a Republican from Rolla, sponsored the bill. While the bill passed easily this year, it was an accomplishment decades in the making. The Missouri Chamber has been advocating for right-to-work since 1952.

13 FUNDING MISSOURI SCHOOLS IMPROVING WORKFORCE TRAINING

Lawmakers achieved a major success when they In addition, the legislature passed House Bill 93 wrote a state budget that prioritizes education in a to improve access to the popular Missouri Works way we’ve never seen. Budget writers chose to fully Training program. The law also establishes four adult fund the state’s K-12 foundation formula. This high schools in the state. Roughly 500,000 adult decision aligns directly with an action item included Missourians don’t have high school diplomas, making in the Missouri 2030 plan. Fully funding the foundation it difficult for them to get jobs and leading to a high formula also triggers additional state investment in rate of reliance on public assistance. Establishing early childhood education. adult high schools will give these Missourians a second chance at attaining a high school diploma. House Bill 93 was sponsored by Rep. Jeanie Lauer, a Republican from Blue Springs.

As Gallup identified through Missouri 2030 research, Missouri companies need certainty on what laws apply when making decisions on investment, jobs and growth. House Bill 451 creates stability in Missouri by clarifying that cities, counties and political subdivisions cannot ‘fall out’ of a population-based law once it applies to them. This was needed legislation, not just for businesses “but for schools, fire districts and local governments who rely on population-based statutes for revenue and authority.

– Cheryl Norton, President ”Missouri American Water

14 FINDING A TRANSPORTATION FUNDING PROVIDING STABILITY AND CERTAINTY SOLUTION TO UTILITIES AND COMMUNITIES

Missouri’s transportation system remains in need Through House Bill 451, lawmakers clarified a of a new investment strategy. To continue this section of the law so that once a statute is put in discussion, the legislature passed a resolution to effect for a city, county or political subdivision, set up a task force that will study the condition of that law remains in effect even if the population of Missouri’s transportation system and offer funding the area rises or falls. A legal challenge could have recommendations by Jan. 1, 2018. jeopardized hundreds of Missouri statutes, making this clarification necessary. The law provides stability for businesses, schools, fire districts and local governments that depend upon population-based statutes to guide operations.

15 DREAM IT. DO IT.

Accomplishments: The Missouri Chamber showcases manufacturing careers by facilitating Dream It. Do It. programs in PROGRAMS the state. Dream It. Do It. is a national, grassroots effort aimed at improving the way people perceive manufacturing jobs and recruiting the next- We realize that not all of the changes Missouri needs generation of manufacturing workforce. As the can be accomplished through policy. Missouri 2030: statewide facilitator of Dream It. Do It., the Missouri An Agenda to Lead also funds programs that support Chamber promotes and facilitates activities that portions of the plan, and significant advances have increase awareness of the abundant opportunities in been made through several of these programs. manufacturing and technology fields.

CARNEGIE STEM EXCELLENCE The Missouri Chamber’s work with Dream It. Do PATHWAY PROGRAM It. includes several programs and services:

The Missouri Chamber Foundation is the statewide • Manufacturing Day - Every year we celebrate provider of the Carnegie STEM Excellence Pathway manufacturing in Missouri and across the program. In this role, we are leading the effort to country. provide Missouri school districts with training, • Regional hubs - Through these hubs we resources and ongoing support to create and empower communities with resources to implement long-term strategic plans to improve address local workforce needs. STEM education. This year, the Missouri Chamber Foundation concluded a series of 12 regional • Show-Me Manufacturing Video Competition - workshops and one-on-one interactions with school Students are challenged to create videos administrators across the state with strong impact answering the question “What’s so cool about that includes: manufacturing?” This year we reached 30,722 people with our campaign. Seventy-five • Helping implement sustainable STEM percent were between the ages of 13 and 17. education improvement models in more than This is a 50 percent increase over last year. 150 Missouri public, private and charter school districts serving 441,000 students; • Providing more than 1,800 K-12 education professionals with quality STEM professional development workshops; • Building stronger relationships across Missouri’s STEM network, allowing greater sharing of best practices.

16 SHOW-ME SCHOLARS ENTREPRENEUR SUPPORT THROUGH SBTDC The Missouri Chamber’s Show-Me Scholars initiative is a program built around a course of study that Our partnership with the Small Business & encourages students to take more demanding Technology Development Centers (SBTDC) also classes in high school. Business mentors from the continues to grow as we add more businesses and local community provide guidance to students to training sessions to our workload. Last year, the encourage them to strive to do more in high school Missouri Chamber Foundation provided consultation by taking the Show-Me Scholars curriculum. The to more than 150 startup and expanding companies, curriculum provides an education that better prepares conducted more than 50 classes, and held more than students to enter a technical school, a community 50 one-on-one consultations with small businesses. college, a university or the workforce.

The Missouri Chamber Foundation awarded hundreds of students – a record number – with Show-Me Scholars honors during local graduation ceremonies around the state. Thanks to support by AT&T, we added five $1,000 scholarships to be awarded to students participating in the Show-Me Scholars program.

Being a Scholar means that you worked really hard in school and you did everything you could to prepare yourself for the future.

– Rylie Veik Show-Me Scholar and “ Rolla High School” Student 17 The plan:

18 he framework of the agenda is built Taround four drivers:

1 Preparing the Workforce

2 Competing for Jobs

3 Connecting Through Infrastructure

4 Uniting the Business Community

These priorities focus on the fundamentals of a successful economy. If Missouri can lead in these areas, we will be an economic force that will provide more opportunities and an improved quality of life for Missourians.

Turning around the trends in these critical areas will take time. Missouri 2030 is a long-term agenda for continued improvement. By the time we reach 2030, the Missouri General Assembly will have seen three generations of legislators and at least three governors come and go because of term limits. Missouri 2030 will provide continuity throughout these political changes. It will provide the structure and goals that Missouri’s business community and other stakeholders can endorse and work together to achieve.

On the following pages you will learn about the research, goals and action steps of the Missouri 2030 plan. Where we have made progress, you will see this symbol: PROGRESS!

19 WHAT THE RESEARCH REVEALED

Through our Gallup research, we heard clearly that Preparing the we need to invest in Missouri’s workforce. Only 44 percent of Missouri business owners are satisfied with the state’s availability of skilled workers. Employers Workforce cited weaknesses in the state’s ability to prepare, attract and retain workers. According to the Gallup survey:

• Only 15 percent of Missouri business owners agree that high schools are preparing students for the workforce.

• Only 42 percent of Missouri business owners agree that colleges provide preparation for the workforce.

• Only 30 percent of Missouri business owners agree that Missouri attracts top talent.

• Only 30 percent of Missouri business owners agree that the state is able to retain top talent.

Workforce Preparation 100% 15% 44% disagree 80% disagree

42% 60% neutral

40% 39% neutral

42% 20% agree 15% agree 0% HIGH SCHOOL COLLEGE GRADUATES GRADUATES are prepared for are prepared for the workforce the workforce Gallup 20 One-on-one interviews with the CEOs from some of Addressing the top concern of workforce will require the state’s largest employers mirrored the responses a new focus on the demand side of worker training. from the Gallup survey. More than 90 percent felt A demand-driven that actions to improve education and workforce approach is made preparedness were absolutely necessary. up of the public and “The community colleges private sector policies have outstanding technical While a major issue for existing businesses, workforce and programs that programs, but we are not is also a key for attracting new jobs to the state. help people acquire getting the throughput. It needs Gallup followed up the survey with business leaders the knowledge and to be pushed to students, by conducting in-depth interviews with site selection skills needed to earn a parents, teachers and adults consultants, discovering that: living. with influence in their lives … we are not effectively promoting • It is increasingly difficult for manufacturers By focusing on the the social and economic value to find skilled and semiskilled labor such demands of business, of industrial careers ... we need as machinists, welders and maintenance this type of approach technicians. Demand for these positions is allows local residents a PR campaign ... we need to outstripping supply. and service providers make this a cool thing to do.” to understand the • Missouri is not effectively promoting the social opportunities that exist Site Selector and economic value of industrial careers that for current and future may not require two- and four-year degrees. employment and what specific skills are necessary to take advantage of those • Missouri should look to other states that have opportunities. implemented training grants and reimbursement programs. HOW MISSOURI 2030 CAN HELP MISSOURI BETTER PREPARE Another indicator of workforce strength analyzed by No other issue is of more concern for businesses the Missouri Chamber Foundation was the status today. Missouri must improve the education system at of 25- to 44-year-olds. This population sector in all levels and integrate the skills needed by businesses Missouri is decreasing three times faster than the rate into every curriculum. Gallup reported that a of the national average. common sentiment was “unless Missouri changes the way we are preparing people for the jobs of the future, the current mismatch between employer skill needs and the talents of the workforce will widen.” Systemic education reform is needed, but it will take years. Therefore, initiatives that work around the current system must also be made available to help employers in the short term.

21 Goal: Increase the voice of business and Preparing the industry on education and workforce issues at Workforce the state and national policy levels. Action steps: Hire a dedicated governmental affairs liaison to address workforce needs. PROGRESS! Advocate policy that competitively funds our K-12 and higher education systems, implements much-needed reforms, provides better support for high-performing teachers and administrators, and sets higher standards for Missouri students. PROGRESS!

Goal: Optimize existing training programs and find innovative solutions to address gaps.

Action steps: Facilitate an alliance called Missouri 2030: Training consisting of human resources managers, educators and workforce development professionals to identify strengths and weaknesses in Missouri’s training systems. The alliance will produce an actionable plan to improve the efficiency of state training systems. PROGRESS! Hold an annual training conference that brings together business leaders, community leaders, economic developers and workforce development professionals to share best practices and to align goals. Support statewide deployment of the Certified Work Ready Communities (CWRC) program through a statewide public relations campaign. PROGRESS! Advocate and secure the release of currently withheld state funds that the legislature approved to support the CWRC. PROGRESS! Advocate for more effective use of state and federal training funding. 22 Goal: Align workforce needs with outcomes Goal: Expand relevant work experience from Missouri’s education systems by facilitating opportunities throughout the education system. research and collaboration between business leaders, educators, policymakers and workforce Action steps: development professionals. Build a system to promote internship opportunities to Missouri’s employers, K-12 schools, post- Action steps: secondary institutions, students and parents. Create an alliance called Missouri 2030: Workforce Develop communication channels with high consisting of business leaders, educators and workforce school counselors to encourage students to take development professionals charged with the creation rigorous courses and pursue relevant career of an actionable plan to address the gap between pathways. workforce supply and demand. PROGRESS! Commission a study/survey to identify gaps between student achievement and employer needs. Goal: Encourage students to take more rigorous courses while in high school to be better prepared for the workforce or higher education. Goal: Increase the number of students considering technical employment, STEM and other targeted employment sectors by providing Action steps: timely job, skill and wage information for Deploy statewide the Show-Me Scholars initiative, students, parents and employers through a which connects business leaders with junior high strong public relations campaign. and high school classrooms to encourage students to take rigorous courses. PROGRESS! Action steps: Research outcomes of students taking more Develop timely and informative, age-appropriate rigorous coursework and publicize the importance industry and occupation materials for students in of raising the bar. middle and high school that also reference various Expand the number of scholarships for Show-Me educational and training pathways. Scholars students. PROGRESS! Invest in paid media, earned media, public service Support the expansion of high-impact statewide announcements and a social media campaign in STEM education efforts. PROGRESS! targeted regions of Missouri. Expand business leaders’ active participation in and Develop partnerships to channel information to support of the Missouri Mathematics and Science students, parents and employers. Coalition.

23 WHAT THE RESEARCH REVEALED

Without a competitive business climate, Missouri Competing cannot win the global war for economic prosperity. Gallup dug deeply into key areas that impact Missouri’s business climate and found that fewer for Jobs than one in four employers is satisfied with Missouri’s litigation climate, tax environment or government regulations.

Specifically, in the area of tax, the Gallup survey revealed that 10 percent of businesses in Missouri believe that Missouri’s tax environment is their biggest obstacle to growth. A national survey conducted by Gallup and Wells Fargo put that number at 7 percent.

Gallup’s research found that employers were not as concerned about the tax rate as the consistency of Missouri’s tax laws. Gallup concluded that “the inconsistency of Missouri’s tax policy is perceived as a major issue, with 1 in 5 business owners agreeing policies are stable enough to allow for year-to-year growth planning. Construction, wholesale trade, and health care industries reported even more concern over tax inconsistency than other industries overall.”

Interviews with site selectors revealed a similar concern. While generally complimentary of Missouri’s tax incentive programs, site selectors were worried that the programs’ administrative complexity could be holding back some opportunities for Missouri. “The time and effort that go into applying for the incentives can normalize the value of the incentive package except in very large deals,” commented one site selector.

Like taxes, a state’s labor policy has a direct impact on employers’ bottom lines. The Gallup survey revealed that Missouri employers are also concerned about labor policy. The majority of business leaders Gallup surveyed, 54 percent, favor Missouri becoming a

24 right-to-work state. Support for this policy change was even higher in some industry sectors, such as “Missouri’s prospect flow on transportation, communications and utilities, where manufacturing is only 60 percent of 67 percent supported becoming a right-to-work state. what it would be if it was right-to- work.” Labor policy also plays a large role in a state’s ability Site Selector to recruit new business. Site selectors also stated that becoming a right-to-work state would benefit Missouri. One site selector commented that “Missouri’s prospect Some of Gallup’s findings identified strengths in flow on manufacturing is only 60 percent of what it this area. Missouri businesses rate their access to key would be if it was right-to-work.” inputs to their business’ success relatively high as compared with other questions in the survey, with Gallup also surveyed employers about the impact of over half reporting satisfaction with availability of health care costs on their businesses. The vast majority credit, affordability of land, access to customers and (80 percent) of businesses reported that their health business networking opportunities. care costs will increase significantly in upcoming years. Seventy-one percent said that these increases HOW MISSOURI 2030 CAN HELP will impede their companies’ abilities to grow. Yet MISSOURI BETTER COMPETE very few businesses, only 5 percent, said health care is Gallup’s research has identified several factors in our their biggest obstacle to growth. business climate that Missouri can address. Simplicity, predictability, transparency and efficiency should guide future policy. The Missouri Chamber has long Key Inputs for Missouri Businesses been considered the most 100% influential business advocacy 10% 10% 11% 14% group in Missouri’s Capitol. 12% disagree disagree disagree disagree disagree Missouri 2030 will make that 80% lobbying team even stronger 31% 33% 35% 42% with additional advocacy 27% neutral neutral neutral neutral neutral resources and tools. More and 60% more, due in large part to term limits, public policy is circumventing the legislature 40% 57% 56% 52% 43% and instead is being made 56% agree agree agree agree through government agencies agree Missouri 2030 20% and in the courts. arms the Missouri Chamber with the support it needs to 0% become a stronger presence in Availability Access to Access to Business Cost of basic these areas. of affordable financing customers networking commodities land and credit opportunities Gallup

25 Goal: Keep Missouri’s corporate taxes Competing for competitive and guarantee consistency.

Jobs Action steps: Conduct a comprehensive study of Missouri’s state budget, including a 15-year projection of expected Goal: Continue to aggressively revenue growth and spending, to use in setting monitor Missouri’s business climate and long-term tax policy. advocate for improvements in the areas of: tax policy, legal environment, unemployment Commission an analysis of Missouri’s tax code by insurance and workers’ compensation systems, leading tax professionals and present an actionable labor, health care, and other factors impacting list of recommendations that can be legislated. business competitiveness. Conduct annual state-by-state comparisons of tax levels. Action steps: Maintain the strongest advocacy team for business in Jefferson City by providing cutting-edge support Goal: Become a model state for fair and resources. PROGRESS! balanced resolution for injured workers and unemployed workers while lowering transaction Develop targeted research studies to support costs of the workers’ compensation and advocacy efforts on key issues. unemployment insurance systems. Invest in annual statewide issue polls. Invest in communications tools and campaigns Action steps: to keep employer members, legislators, media Tap into the expertise of corporate defense and the general public engaged in pro-jobs attorneys among Missouri Chamber membership policymaking. PROGRESS! through the Missouri Chamber Legal Foundation to help monitor legal decisions and other factors impacting Missouri’s workers’ compensation and unemployment insurance systems. Develop a method to track Missouri’s real unemployment rates to use in developing more effective policy to address joblessness. Provide legal white papers through the Missouri Chamber Legal Foundation to help Missouri employers stay in compliance with changes in the law.

26 Goal: Improve Missouri’s corporate litigation Goal: Implement labor reforms. environment. Action steps: Action steps: Monitor labor activity in other states and build Expand manpower for the Missouri Chamber resources and support to enact competitive labor Legal Foundation to increase advocacy strength, reforms in Missouri. engage in the judicial selection process and Invest in a strong grassroots campaign and media PROGRESS! intervene in corporate legal cases. plan to enact labor reforms. Perform a state-by-state analysis of key tort reforms Build a database that tracks political contributions (employment law, comparative fault, punitive from unions to elected officials and invest in judgments, evidentiary standard) and implement a paid and earned media campaign and social a plan to align Missouri with states that have more media to publicize. PROGRESS! balanced, competitive litigation climates. Invest in a research study to analyze the impact of Missouri’s unbalanced tort system on our economy Goal: Improve access to quality, cost-effective to support advocacy efforts. Compare Missouri with health care. other states in levels of corporate suits filed, number of cases settled pretrial and number of cases filed in Action steps: state and federal courts, among other data. Work to reduce the negative impact of the Build an alliance of Missouri’s corporate counsels Affordable Care Act on Missouri employers by and convene regularly to develop a common action enacting strong Medicaid reforms. plan and path toward meaningful tort reforms. Build resources to support advocacy of medical PROGRESS! malpractice caps. PROGRESS! Establish an aggressive public relations plan to Research methods to provide transparency in the support tort reform efforts. PROGRESS! health care system. Build a database that tracks political contributions Research market-driven solutions to reduce small- from trial attorneys to elected officials and invest employer health care costs. PROGRESS! in a paid and earned media campaign and social media to publicize. PROGRESS!

27 Goal: Foster entrepreneurs and innovation. Competing for Jobs Action steps: Facilitate an alliance called Missouri 2030: Entrepreneurs to create an actionable plan to make Missouri a more attractive state for business startups. PROGRESS! Collaborate with the SBTDC to provide effective entrepreneurial training and startup support to emerging Missouri businesses. PROGRESS! Provide annual regional entrepreneur networking events. Proactively identify students and residents with entrepreneurship talent who are most likely to start a new business. Work with schools and universities to develop the interest, skills and partnerships needed to capitalize on this talent. Conduct an annual tax policy review to maximize the benefits for start-up and high-growth companies. Expand flexible capital formation through policies that encourage new market tax credits, venture capital, angel networks and crowdfunding. Promote collaborative industry and higher education research and development to increase our ability to commercialize research projects.

28 Goal: Identify economic areas of strength Goal: Increase the number of veterans and and leverage through collaboration and family members that we retain in Missouri’s strategic policy, including agriculture, banking, workforce after service and encourage retired energy, finance, insurance, health care, military to choose Missouri as a permanent manufacturing and technology sectors. residence.

Action step: Action steps: Build alliances of the state’s leading companies and experts for each of these sectors to collaborate and Deploy an education campaign among Missouri develop actionable plans for growth. PROGRESS! Chamber Federation members to enact veteran- friendly policy and programs in their communities. Provide educational materials to policymakers Protect Missouri’s military bases, Goal: and lawmakers to build the case for more veteran- defense contractors and defense agencies friendly policies that will encourage more veterans and the contribution these organizations add to stay in Missouri after service. to our economy by taking an active role in the upcoming Base Realignment and Closure (BRAC) Support an effort to build a statewide portal of process. support groups, programs and services available to veterans and their families. Action steps: Work with military bases and the business community to strengthen communication and bridge opportunities for veterans and their Produce educational materials that identify the families. economic impact of Missouri’s military bases, defense contractors and defense agencies and use Work with military bases to provide annual as tools to unify the business community, state and meetings for spouses of service men and women federal policymakers, and other stakeholders in an to make them aware of work opportunities in effort to protect our Department of Defense assets. communities where they are stationed. Deploy a public relations campaign to shore up support and understanding of the role the military bases, defense contractors and defense agencies and companies that support the military play in Missouri’s economy. Encourage business and community leaders to join us during the 2018 Missouri-DC Fly-in to discuss BRAC with our federal lawmakers.

29 WHAT THE RESEARCH REVEALED

Gallup’s research also focused on the infrastructure that Missouri’s business community needs to grow and be competitive. The research revealed that basic infrastructure, such as roads and bridges, is a prevalent concern of employers, especially industries that depend on roads and airports for the movement of goods. Gallup concluded that “business owners that operate day-to-day in the state feel aging infrastructure is an increasing challenge for their operations.” Respondents were 61 percent satisfied Connecting with their access to technology as compared with only 37 percent satisfaction with basic infrastructure. Transportation was one of the few areas where Through responses differed based on geography. The Gallup research showed that business owners in the St. Louis area were more satisfied with transportation Infrastructure infrastructure than those in other areas of the state.

The site selectors interviewed by Gallup were quick to cite location as a strength for Missouri. One stated: “Especially in manufacturing, my decision is made 65 percent by logistics and supply chain dynamics. Customers are expecting their goods faster and faster and shipping times are decreasing.”

Satisfied With Infrastructure

100% 9% disagree 14% disagree 26% disagree 80% 29% neutral 33% neutral

60% 37% neutral

40% 61% agree 52% agree 37% agree 20%

0% Satisfied with Satisfied with Satisfied with access to affordable and roads and technology reliable energy infrastructure Gallup 30 Another site selector commented, “Missouri has so Goal: Expand Missouri’s logistics capacity for many strengths by default in its central location and domestic and international trade. needs to take better advantage of these.” Action steps: Gallup concluded that leveraging Missouri’s location through strategic policymaking and investment would Create an alliance called Missouri 2030: Trade be a smart move for the state. to bring together current exporters, prospective exporters and international trade professionals to HOW MISSOURI 2030 CAN HELP share best practices and develop an actionable plan MISSOURI CONNECT to grow international trade. PROGRESS! Support efforts of the Midwest Cargo Hub Missouri has always enjoyed a logistics advantage Commission to create an international air cargo because of its central location, navigable rivers and hub at Lambert Airport in St. Louis. strong railroad and interstate highway systems. Infrastructure for the future, including global and Partner with corporations to develop a “Made in domestic air connectivity, passenger rail, public- Missouri” campaign and help Missouri employers transit service to improve employee mobility, digital to network and learn more about exporting their coverage, and speed, can position Missouri as a hub products. for commerce in the Midwest. At the same time, Missouri enjoys low energy costs. This is an asset that Missouri must actively protect and promote. Goal: Leverage Missouri’s natural competitive advantage of location by investing in strong transportation infrastructure.

Protect Missouri’s advantage as a Goal: Action steps: low-cost-energy and -utility state. Utilizing an analysis of Missouri’s long-term Action steps: revenue and spending projections, identify how much investment can be made in infrastructure Engage in legislative, agency and legal activity that through existing revenue growth. impacts energy production and distribution. Analyze how much additional funding is required Work with business leaders, energy providers and to meet needs, and conduct polling to see what community leaders to establish a collaborative, funding methods or combination of funding long-term plan to address Missouri’s aging methods Missourians will support. infrastructure and future energy and utility needs. Focus transportation infrastructure investment priorities on the most leveraged areas for productivity and economic growth. Goal: Develop a competitive advantage in broadband coverage and speed. Employing the above data, develop a long-range plan for sustainable infrastructure funding. Action steps: Support the Missouri Department of Work with communities, state and local Transportation’s freight plan, and improve freight governments, and broadband providers to mobility and connections between roads, rail and stimulate broadband use. Minimize regulations ports. and rules, which may impede the deployment. Create an Alliance called Missouri 2030: Support grant programs to provide assistance for Infrastructure to develop and implement a plan for consumers, education institutions and libraries passage of a sustainable transportation strategy and to purchase broadband service/equipment by other infrastructure needs. PROGRESS! working with regional economic development Invest in a strong grassroots campaign and planning councils. media plan to build support for a sustainable transportation strategy.

31 WHAT THE RESEARCH REVEALED:

The Gallup survey clearly identified policies that Uniting the Missouri employers want addressed, but employers were not confident in elected officials’ ability to enact change. Only 20 percent of the business leaders Business surveyed believe that politicians are committed to improving the state’s business climate. Elected Community officials have championed numerous economic studies and initiatives over the years, but those plans languish when the politicians leave office. Many of the findings in theMissouri 2030 research echoed previous studies and analysis. Unfortunately, no long-term, actionable plan has been put in place to implement the changes. Missouri has seen a cycle of studies pointing out problems without a unified vehicle to act.

Our research demonstrates that Missouri employers want to change that dynamic. According to the one-on-one CEO interviews, 87 percent believe the Missouri Chamber should serve in the leadership role to advance a unified initiative to better position our state economically.

32 HOW MISSOURI 2030 CAN HELP Goal: Unite the business community. MISSOURI BETTER UNITE: Action steps: By building relationships with our local chambers of commerce and other economic stakeholders, we can channel our collective strength to advance our state. Create an online dashboard to display Missouri’s progress in key economic indicators and hold Communication is key, and the Missouri Chamber leaders accountable for improvement. PROGRESS! will invest in a variety of communication tools and Continue to hold strategic planning sessions with networking events to keep stakeholders informed. the state’s most influential CEOs to keep the business agenda focused. PROGRESS! Continue to build the Missouri Chamber Federation, a network of Missouri’s strongest chambers of commerce, by adding more members and arming members with resources and tools needed to engage in statewide advocacy and workforce and economic development initiatives. PROGRESS! Continue to build the Missouri Chamber Small Business Alliance, which consists of Missouri Chamber Federation member employers with 10 or fewer employees. These employers automatically become members of the Missouri Chamber and receive all advocacy and select member benefits free of charge. PROGRESS! Secure endorsements of Missouri 2030 from other influential economic development, workforce development and trade associations and provide materials that these entities can use to educate their constituents and advocate for those measures in the plan that align with their goals. PROGRESS! Invest in communications and strategies to improve Missouri’s business image. Issue frequent media releases, provide briefings and communicate economic development accomplishments to the public, investors and stakeholders. PROGRESS!

33 34 How can you join our effort to make Missouri a leader?

Learn more about Missouri 2030 on our website: mo2030.com

Sign up to receive progress updates.

Learn additional information about each key driver.

Download the full plan.

Join and promote the effort. 428 East Capitol Avenue P.O. Box 149 Jefferson City, MO 65102

573-634-3511 mochamber.com