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Springfield Area, Missouri Competitive Assessment

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Springfield Area, Missouri Competitive Assessment LIVE WORK GROW Market Street brings original insights and clarity to the evaluation and revitalization of the places where people live, work and grow. Through honest and informed assessments, Market Street can equip you with the tools to create meaningful change. Our solutions successfully merge our experience and expertise with the economic and social realities of our clients. Market Street’s community clients are successful at creating stronger programs, increasing operational budgets, and creating new quality jobs that improve the quality of life in their communities. Table of Contents Overview ............................................................................................................................. 2 People ...................................................................................................................................... 5 Overview ......................................................................................................................... 5 In-Depth ......................................................................................................................... 9 Community growth ................................................................................................... 9 Socioeconomic wellbeing ........................................................................................ 18 Workforce dynamics ................................................................................................ 28 Key takeaway points: People ....................................................................................... 37 Prosperity ............................................................................................................................... 39 Overview ....................................................................................................................... 39 In-Depth ....................................................................................................................... 43 Growth and productivity ......................................................................................... 43 Economic structure ................................................................................................. 48 Business climate ....................................................................................................... 55 Key takeaway points: Prosperity ................................................................................ 68 Place..................................................................................................................................... 70 Overview ...................................................................................................................... 69 In-Depth ....................................................................................................................... 73 Vision and Leadership ............................................................................................. 73 Quality of life ........................................................................................................... 74 Character .................................................................................................................. 83 Infrastructure ........................................................................................................... 84 Key takeaway points: Place .......................................................................................... 93 Conclusion ...................................................................................................................... 94 Appendix A: Methodology ............................................................................................. 96 Appendix B: Online survey ........................................................................................... 99 Competitive Assessment September 2009 1 OVERVIEW The Springfield Business Development Corporation (SBDC) contracted with Market Street Services, a national community and economic development consulting firm headquartered in Atlanta, Georgia, to conduct a Competitive Assessment for the Springfield metropolitan area. The Competitive Assessment provides a qualitative and quantitative analysis of Springfield’s competitiveness as a place to live for current and relocating residents, and as a place to conduct business for existing, expanding, and prospective businesses. Research is organized and presented according to three broad components of community: People, Prosperity, and Place. Each section opens with a summary of key findings and analysis of Metro Springfield’s competitive position in these regards. This was done in lieu of a traditional Executive Summary. The Assessment presents analyses of the three engines that drive regional competitiveness and quality of life: the people, the place, and the economy. The performance of Metro Springfield is compared to three similar regions that might compete with the region for workers and jobs: Knoxville, Tennessee; Colorado Springs, Colorado; and Kalamazoo, Michigan1. Stakeholder input gathered from focus groups, interviews, and an online survey will supplement the quantitative analysis and provide a more holistic view of Springfield’s competitive realities. Key findings from the input process are highlighted throughout the document in bolded, blue text. Complete findings from the online survey are presented in Appendix B. This process will enable the SBDC and the Springfield Area Chamber of Commerce to identify new challenges to address and opportunities to leverage in order to further promote the region’s goals related to economic development. SBDC and the Chamber are in the middle of their second five-year capital campaign to fund programming in 1) regional economic development, 2) workforce development, 3) national business development and marketing, 4) downtown development and redevelopment, and 5) media relations and investor relations. This Competitive Assessment process will help SBDC and the Chamber assess their current efforts and identify new ways to promote economic development within Metro Springfield. Background on Market Street Market Street Services, Inc. is an independent, national economic and community development consulting firm based in Atlanta, Georgia, focused on helping development corporations, chambers, communities, regions, and states to develop 1 See Appendix A for selection methodology. Data presented throughout this report are at the metropolitan statistical area (MSA) level, unless otherwise noted. Competitive Assessment September 2009 2 shared visions and to identify the means by which regional communities can achieve long-term economic success and community well-being. It was founded in 1997 by J. Mac Holladay, CCE as an alternative to the traditional economic development firm. More information related to Market Street, its staff, menu of services, and past projects can be found at www.marketstreetservices.com. SBDC Board of Directors Market Street would like to acknowledge the Springfield Business Development Corporation Board of Directors who provided comments on project deliverables. The members of the Board of Directors are listed below: Jim Anderson Thomas Babik Springfield Area Chamber of Commerce Ferrell-Duncan Clinic Ann Marie Baker Dr. Jim Baker UMB Bank, NA Missouri State University Shaun Burke Greg Burris Guaranty Bank City of Springfield David Coonrod Dr. Hal Higdon Greene County Ozarks Technical Community College Roger Howard Andy Lear BNSF Railway Company BKD, LLP James Lewis Doug Pitt Kirkpatrick, Phillips & Miller, CPAs, PC ServiceWorld Computer Center, Inc. Gary Powell John Schaefer Husch Blackwell Sanders, LLP Ozarks Coca Cola/Dr Pepper Bottling Company Todd Sherman John Twitty Kraft Foods, Inc. City Utilities of Springfield Randell Wallace John Wanamaker Lathrop & Gage, LC BKD, LLP Competitive Assessment September 2009 3 PEOPLE In the past 40 years, the nation’s rapidly expanding labor force has helped fuel domestic economic growth. The maturing of the Baby Boomer generation, a rising number of college-educated workers, and greater participation in the labor force among women and minorities provided a robust workforce for U.S. employers. However, demographic shifts are causing these trends to taper off, straining labor force dynamics. As Baby Boomers enter retirement, they will be replaced with a numerically smaller generation of workers. Additionally, educational attainment rates of workers will stagnate as growth in the number of workers with at least a high school diploma is expected to flat-line. These demographic trends are predicted to result in a critical labor shortage of skilled workers in coming years. Because economic growth is largely a function of having qualified workers to fill in-demand jobs, Metro Springfield’s residents are its greatest asset in this regard. This section of the report examines community growth, socioeconomic well being, and workforce dynamics. Competitive Assessment September 2009 4 Overview Community Growth Metro Springfield’s population and job growth is unmatched by any of the comparison geographies. This growth has been fueled by net in-migration from smaller communities in Southwest Missouri and larger cities throughout the country including Los Angeles, Wichita, Phoenix, Chicago, and Lincoln. Most growth within the region has occurred in outlying communities, with the City of Springfield only capturing a small fraction. While the region’s minority groups have experienced
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