Magnet director: More companies could locate here when economy rebounds

Though the economy showed some recovery in the final quarter of 2009, an industrial recruiter said Thursday that consumer confidence must improve before the economy rebounds.

When it does, Cape Girardeau Area Magnet executive director Mitch Robinson said, more major retailers and industrial companies could likely decide to relocate to the area.

"We had the best one quarter within the last five to six years at the end of the year for the number of companies looking to relocate here," Robinson said of the 15 companies, though he declined to name them on the basis of confidentiality. "It's too early to say we'll get any of those, but we're in the running. We feel like this year we'll see some of those if we get positive news on the economy."

Robinson discussed issues facing economic development in 2010 during the Cape Girardeau Area Magnet's annual business meeting and appreciation lunch. About 65 business people, leaders and elected officials attended the meeting at the Cape Girardeau Career and Technology Center.

Among the most pressing issues in business expansion is possible sanctions by the Environmental Protection Agency, Robinson said. Cape Girardeau County, along with hundreds of other counties throughout the U.S., could be placed in new nonattainment zones, costing them significant amounts of money to be in compliance with the standards designed to reduce smog.

If that occurs, Robinson said, the regulations could prevent industries from relocating to those areas.

"We need to let the folks in Washington know this is a major deal killer, company killer, in the U.S.," Robinson said. "That's a major concern where we're headed."

Even so, Robinson said he is thankful the area escaped 2009 without any major employers announcing they were leaving. Major industries that left the area recently included Dana Corp. in 2007 and Thorngate Ltd. in 2008.

"It's definitely been a tough year," Robinson said. "The economic conditions across the country have been a tremendous battle."

Robinson said that among the companies that expanded in the area was Schaefer's Electrical Enclosures.

Since the manufacturing company moved from Advance, Mo., to Scott City, president Mark Diamond said, its work force has grown from 100 to 120. Within five years Diamond hopes to add 30 more workers.

The company went from working in three buildings of 60,000 square feet to one structure of 105,000 square feet at 4680 Nash Road.

Diamond said remodeling an entire building and upgrading equipment has proved challenging but the new opportunities at the Cape Girardeau facility have made the move worthwhile.

"We've had a lot of challenges," Diamond said. "But it's been amazing what we've been able to pull off."

bblackwell@semissourian.com

388-3628

Pertinent addresses:

1267 N. Mount Auburn Road, Cape Girardeau, MO

1080 S. Silver Springs Road, Cape Girardeau, MO

4680 Nash Road, Scott City, MO