QUALTIES OF LIFE, CAPE GIRARDEAU; SPECIAL REPORT: ECONOMICS; ON THE VERGE OF A BOOM

Missouri's economy is strong.

This year it looks even better.

Joseph L. Driskill, director of Missouri Department of Economic Development, said the state is emerging as an economic leader in the Midwest and is rolling into its fifth year of an economic boom.

Cape Girardeau County has joined the state in economic growth.

Al Spradling III said this is a good time to live in Cape Girardeau, the largest city in the county with more than 38,000 population.

"Things are good here now," said Spradling during a recent talk before a large crowd at the Chamber of Commerce First Friday Coffee. "There's some mud on the streets, but we don't have much to complain about at the present time."

A lot of good things are happening, said Spradling.

John Mehner, president of the Cape Girardeau Chamber of Commerce, and Mitch Robinson, executive director of the Cape Girardeau Area Recruitment Association, agree.

A new Chamber of Commerce "Quality of Life" (QOL) Indicators for Progress report has been compiled, developing indicators to address quality-of-life issues in Cape Girardeau.

Eight areas have been selected by the QOL Committee, education, economy, public safety, natural environment, health, social environment, government and politics, and culture and recreation.

Here, in one of the series on the QOL Report, is a look at the economy.

"We are fortunate in our location," said Mehner. "We have a diverse economy, including everything from high-tech to heavy manufacturing, agricultural and retail."

In addition, said Mehner, the Southeast Missouri work area is favored with a work force that is consistently ranked high in the state, with a strong work ethic and level of productivity.

The spirit and commitment of Missouri workers, both to their jobs and communities, are well known throughout the nation, said Robinson.

Much of the growth can be attributed to luck of geography. Cape Girardeau is near the crossroads of the nation and is unique in having a transportation network that includes river, air, rail and highway.

In addition to Interstate 55, the Cape Girardeau Regional Airport ranks among the best of non-metropolitan facilities. The area enjoys one of the largest inland waterways -- the Mississippi River -- and includes one of a number of port facilities between Memphis, Tenn., and St. Louis, including the Southeast Missouri Regional Port.

A look at some economic numbers reveals that the foundation is in place for continued growth in the state and in Cape Girardeau County.

Statewide, Missouri established a 10-year record in new business investments in 1996, posting more than $1.2 billion in goods-producing businesses in expansion or new facilities. Missouri's gross state product exceeded $133 billion, up almost 5 percent, and inflation was at 2.7 percent, well below the national average.

In Cape Girardeau proper, 1996 was the second-best ever construction year, and 1997 business growth is continuing.

Manufacturing continues to grow, agriculture production continues to provide a cornerstone for many local economies, and the retail sector continues to grow in the hub city of Cape Girardeau.

Results of economic activity have been significant over the past year.

-- Construction progresses on the $87.7 million Emerson Memorial Bridge, which will span the Mississippi River between Missouri and Illinois.

-- Unemployment in the county is at a low level and has hovered around the 4 percent mark throughout the year.

-- More people are working. Latest statistics show more than 34,000 countians with jobs.

-- Manufacturing and giant retail companies from out of state have expressed interest in becoming a part of the growing economy. This is evidenced with the announcement that Procter & Gamble Co. will make one of the largest industrial investments in the history of the area. P&G will build a $350 million tissue and towel manufacturing plant adjacent to its plant north of Cape Girardeau.

-- Passage of a $14 million school bond issue, by a 65 percent margin, to fund construction of a new elementary school, a new vocational-technical school, and additions and renovations at the district's other schools. This is just the first of a three-stage master plan for the school district, which will eventually include a new high school.

-- Announcement that Notre Dame will build a new school near Cape Girardeau.

-- A land-development and home-building company announced a $75 million project for the area. Holigan Family Investments Inc., headquartered in Dallas, purchased four subdivisions -- at Cape Girardeau, Jackson and Fruitland -- and a construction company. The project also includes opening a manufactured-home factory in Sikeston.

The QOL Economic reports reveal continued growth in a number of areas during the past five years.

More than 4,000 new jobs have been added to the employment sector since 1990, from 30,700 jobs to more than 34,000 in April when 34,022 people were working out of the work force of 35,471, for 95.9 percent employment. Job totals have increased more than 4 percent during the past two years, from 32,439 in 1994.

Distribution of jobs in the county reflects the diverse economy. Educational and medical institutions provide more than 9,000 jobs; more than 8,000 jobs are in the retail sector; more than 7,500 employees are involved in manufacturing; more than 2,100 jobs are in wholesale distribution; 1,950 in transportation; 1,500 in construction; and more than 1,200 in financial and real estate.

Retail jobs have grown during the past two quarters and will continue to grow this year with the opening of Sam's Wholesale Club and Goody's Family Clothing in Cape West Business Park, which already boasts such retail giants as Wal-Mart Supercenter, Lowe's Home Center, Target and Staples.

The area's retail sales per capita have increased from $10,142 in 1990, to more than $13,400 in 1995. Statistics show the average household buying income at $26,791 in 1995. That figure reflects median income minus taxes. The median income per family is almost $31,000, according to Missouri State Census data.

With P&G expected to hire 350 new workers to open its new expansion, manufacturing plant, employment is expected to increase.

P&G's expansion will bring in a number of new people, good news for realtors and home builders.

Permits for more than 160 new home have been issued in Cape Girardeau during the past two years, ranging in price from $50,000 to more than $350,000, and a number of apartment or duplex units have been constructed.

Jackson has experienced a home-building explosion over the past three years with more than 450 new homes -- 206 in 1994 and 151 in 1995.

The average price of a home in Cape Girardeau was about $92,200 in 1996, up from about $86,000 in 1995. The average price of a home has increased in Jackson, from about $82,000 to $96,000.

Home construction is proceeding on a number of subdivisions in both Jackson and Cape Girardeau this year, with prices ranging from $75,000 to more than $300,000.

Business construction was also up in 1996 in Cape Girardeau.

The city experienced its second biggest year ever in residential and business construction in 1996, at $47.6 million, second only to the record 1992 year, at $47.9 million.

During the 1990s, residential and business construction has totaled more than $269.4 million in Cape Girardeau.

Meanwhile, according to the QOL report, costs have increased slightly for natural gas, water and sewers, but dropped for electricity.

Three electric rate reductions since 1990 have dropped the cost per 1,000 kilowatt-hours of residential electricity from $63.33 in 1990 to $60.65 in 1995. During the same period, the cost of natural gas, water and sewer has increased.