INDUSTRY EXPANDS MODESTLY

Although much of the nation is mired in recession, industry in Cape Girardeau continues to expand modestly.

Judy Moss, director of economic development for the Chamber of Commerce, said existing businesses in the area's industrial parks have expanded and new companies continue to open here.

A new industrial park west of Interstate 55 already has three tenants and older parks continue to add businesses, she said. The Cape West Business Park tract last year was annexed by the city and is home to a new Wal-Mart Supercenter, set to open this month.

Other tenants at the site include a U.S. Post Office distribution center and Bluff City Beer Distributing.

"Industrial park growth is moving right along in the Cape Girardeau area," said Moss. "We've got a new park just west of Interstate 55 with some pretty good development.

"But the biggest expansion as far as employment is by far been in the East County Business Park up by Procter and Gamble."

Moss said M & W, a manufacturing firm headquartered in Germany, expanded operations last year and now employs nearly 200 people. The company produces high quality packing materials used by Procter & Gamble Paper Products to package its diapers.

A new firm, Sauer-Essig, also opened last year in the park and employs about 15 people in mostly high-technology jobs, Moss said.

"It's growing," she added. "When you see employers like that and like Procter and Gamble continue to employ people, it means things are going well here."

Moss said tenants of the Six-Thirty Industrial Park off Highway 74 in south Cape Girardeau also are adding employees.

"Dana and Mid-America Distributing in the Six-Thirty Industrial Park are both growing," she said. "Dana's employment is up considerably and they're at about 130 employees right now."

Dana is an Ohio company that manufactures and distributes components for the automotive and trucking industry.

Moss said the Nash Road industrial tract on the city's southern border includes a new tenant, Arkansas Freightways, and a number of other transactions are pending.

"There's definitely expansion going on," she said.

Moss said last year's employment figures haven't been compiled, but that she assumes the expansion trend continued throughout the year.

"There was a net gain of 314 employees from 1990 to 1991," she said. "The 1991 to 1992 figures are yet to be compiled, but I'm fairly certain they will indicate a similar trend."

Although the employment numbers haven't expanded drastically, many regions across the nation are reeling from layoffs and rising unemployment.

Unemployment in Cape Girardeau County, however, has remained between 3 and 5 percent. While a low unemployment rate generally isn't favorable for new businesses seeking to open a large industrial firm, Moss said there is a large work force available in the outlying area of Cape Girardeau.

"The unemployment rate is a detriment to industrial development in most instances, but when I send out employment profiles to prospective businesses, I use the unemployment numbers for a 40-mile radius," she said. "There are nearly 12,000 people available to work and registered with employment services in a 40-mile radius.

"The numbers in Cape County don't change, but it's the numbers around the area that count."

Moss said Cape Girardeau County has seen the effective purchasing income of its residents increase from $635 million in 1985 to $720 million in 1990.

"That means per capita income is up to $11,682 as opposed to $10,206 in 1985," she said. "Household income is up considerably and that almost has to be attributed to better jobs for people.

"The new jobs that are coming into the area are pretty darned good-paying jobs."

Moss said Cape Girardeau has a number of characteristics attractive to industry, including:

A population in its trade area of more than 300,000 people.

Two hospitals, Southeast Missouri Hospital and St. Francis Medical Center, Doctors Park and other medical facilities.

A moderate state tax structure, which includes a corporate tax law that is favorable to companies that do business in several states.

An estimated work force of 133,000 in a 40-mile radius, including about 34,800 in Cape Girardeau County. There are more than 14 manufacturers here that employ more than 100 people, led by Procter & Gamble with more than 1,300. Both hospitals, and Southeast Missouri State University each employ more than 1,000 people.

The county has four high schools and Southeast Missouri State University.

According to a survey by "Area Development" magazine, several factors are considered by businesses in the site-selection process. The top five factors in the poll were highway accessibility, labor costs, state and local incentives, occupancy and construction costs, and energy availability and costs.

Other "quality of life" factors also were noted in the survey, including low crime rate, public school ratings, health facilities, and housing availability and costs.

Moss said Cape Girardeau shares to some degree all the factors cited in the survey, which explains the city's steady industrial growth.

"I think if one were to look into our enterprise zones and the activity we've had in the last year, they would understand we are growing," she said. "We were second in the state last year in total investment and new employment. That included St. Louis and Kansas City.

"When you see every place else declining, you can feel pretty comfortable with Cape. I think the business community is confident things are on their way back or they wouldn't be expanding the way they are."