Cape Girardeau poised for growth under state economic development plan

Cape Girardeau is well positioned to benefit from the priorities outlined Monday in a new statewide strategic economic development plan.

The plan identifies seven industries poised for growth that the state will invest its resources in. Several are already key contributors to the Cape Girardeau area's economy. The overall industries are advanced manufacturing, energy, bioscience, health sciences, information technology, financial and professional services, and transportation.

Cape Girardeau is poised to grow in advanced manufacturing, health sciences and transportation, said John Mehner, Cape Girardeau Area Chamber of Commerce CEO.

Mehner consulted on the legislative recommendations included in the plan. Dennis Vinson of Signature Packaging and Linda Greaser of Procter & Gamble served on the 41-person steering committee that provided recommendations as the report was being created. Vinson and Greaser did not respond to requests for comment.

According to the report, the industries represent the strongest possibilities for job creation and economic growth.

Mehner said now is a perfect time for the state to assess its strengths, assets and opportunities.

"We are coming through a period of time when the economy has changed," Mehner said. "Now is the time to look at what directions you need to be heading."

Cape Girardeau's advanced manufacturing sector is strong for a number of reasons, Mehner said.

"The work ethic in this area is always recognized by people as being extremely strong," he said. "Cost of living here is not as high as in metro areas, and our location is key. Just look at the amount of major markets your products can reach from here in one or two days' travel by truck."

With two major hospital systems, Saint Francis Medical Center and SoutheastHEALTH, the area's medical community is already strong and poised for growth, Mehner said.

The strategic plan does a good job of recognizing the strengths both rural and metropolitan areas of the state have, he said.

In addition to identifying the targeted industries, the plan proposes eight strategies to give businesses tools they need to be more competitive: providing more support to existing businesses; expanding workforce training; investing in technology; marketing Missouri to businesses looking to locate or expand; expanding foreign trade; encouraging small and minority owned businesses; increasing infrastructure; and optimizing tax credits.

The strategic plan incorporates recommendations from the Tax Credit Review Commission, appointed by Gov. Nixon last year to review the state's 61 tax credit programs.

The plan suggests making the tax credit programs more flexible while ensuring a positive return on investment. New tax credit programs for research and development and "Angel" tax credit to provide venture capital, are included in the plan.

"Right now, we have so many different programs and we're trying to fit people into a program instead of having a source for them to go to that can make the programs more flexible to fit where their needs are," Mehner said.

The Compete Missouri bill, SB279, now working its way through the legislature. It incorporates many of the plan's proposed tax credit revisions.

Sen. Jason Crowell, R-Cape Girardeau, has long advocated making tax credits subject to the state's appropriations process and doesn't support the creation of new tax credit programs.

"We don't need new tax credits. We authorize all these credits now, and they're not doing the job," Crowell said. "True economic development in Southeast Missouri has nothing to do with tax credits. It has to do with investing in education and becoming a right-to-work state. If the governor wasn't so beholden to unions, that's where his interests would be, too."

More information on the initiative for economic development can be found at www.ded.mo.gov/Strategic.aspx.

mmiller@semissourian.com

388-3646

Pertinent address:

1267 N. Mount Auburn Road, Cape Girardeau, MO