Future investment in economic development

Newly redeveloped organization grapples with how to compete with peer communities that invest substantially more in regional economic development efforts.

THE NEW FOCUS

In 2021, the Cape Girardeau Area MAGNET announced renewed organizational plans to improve future economic development opportunities. It expanded its board of directors inviting private investors from the business sector to join representatives appointed by sponsoring local municipal governments. During that time, the board sought an independent professional analysis of the area’s economic competitiveness, the organization's plans and activities, and an assessment of future needs and opportunities.

The seriousness of the findings uncovered in the professional study and a lack of a shared economic vision in the region prompted the redevelopment of the organization and creation of a more comprehensive strategic plan. The strategies of the new organization named Southeast Missouri Regional Economic Development, Inc. will focus more on supporting new and expanding local and regional businesses, and the attraction and training of the skilled talent they need.

During this transition, investment in the organization has increased by nearly 50%, which has allowed us to diversify and expand the board, invest in deep objective research, begin identifying programming and initiatives to arrest and reverse economic declines, and create an organization capable of engaging stakeholders and professional talent to successfully lead it into the future.

INVESTING IN THE FUTURE

Economic development isn't just a local jobs program; it's an investment in the future. Done well, it's about providing opportunities for everyone to prosper.

Working together for the greater good of the Southeast Missouri region we can and should expect to invite meaningful capital investment and redevelopment that complement and expand existing industries and businesses, create more high-quality jobs, and benefit taxpayers.

The most important thing we can do to improve our economic outlook is to work together under a shared vision and comprehensive plan, to retain and create jobs and investments across our region.

THE FACTS

Over the last few decades, we have struggled to compete with other regions to attract new businesses, expand existing businesses, retain talent, and create high-quality jobs. This is due to a lack of priority and the investment required to provide the tools and support our businesses and workers need.

The board also reviewed strategic plans of other economic development organizations and collected best practices from the benchmark communities that had enjoyed greater past and recent growth and success. These findings led the board to adopt a data-driven, more aggressive, and comprehensive approach to economic development. Based on the considerable input and data the board received, it established the following strategic goals for the next five years.

• Growing the economy by strengthening high-performing companies and industries, diversifying businesses and career opportunities, and fostering a culture of entrepreneurship and innovation.

• Expanding the skilled workforce by closing gaps in affordable and accessible trades, digital, and professional technical training, and attracting and retaining students and workers needed to grow the local economy.

• Bolstering business development and talent attraction efforts by clarifying, evaluating, and leveraging the area's brand identity.

Achieving these goals are intended to arrest further decline, jumpstart our local economy, and ensure long-term economic opportunity for residents and businesses across the Southeast Missouri Region.

MAKING ECONOMIC DEVELOPMENT A HIGHER PRIORITY

SE MO REDI is the area's sole economic development organization. Our goals need to be ambitious, and our efforts should center on a long-term vision for our region, so we don’t continue to lag behind. However, to achieve any measure of our peers' success, we will also need to make economic development a higher priority and invest at similar levels.

investing to compete

Based on analysis completed by Ernst & Young, the Cape Girardeau Area invests substantially less in economic development operations than the benchmark cities and counties in their study. For instance, Jonesboro and Craighead County, Arkansas, invests over 5 times the amount in the operations of their joint economic development organization. On a per capita basis, the Cape Girardeau Area invests only 25% as much per resident as Jonesboro to help support economic opportunities.

Many of our peer regions also set aside annual funds to be available to invest in high-priority economic development projects. For instance, Cookeville and Putnam County, Tennessee, reported they had $2 million in a reserve fund at the time of the analysis.

The board of SE MO REDI will be meeting with local government sponsors and private business investors soon to discuss the need to make regional economic development a higher priority and put plans in place to invest at levels similar to our more competitive regional peers.