INDUSTRY BASE IS KEY TO GROWTH

Recent news reports have made note of the growth occurring Cape Girardeau and the prospect that Cape Girardeau will become a regional hub in Southeast Missouri. A topic of discussion within the business community has been if these two statements are true or not. The recent building boom on the west side of Cape would appear to answer true to both of these statements. However, the recent development has been retail business construction in the service oriented area. What has been lacking has been a concurrent growth in the manufacturing or industrial area. Why a balanced mix of retail and industrial growth is essential for the long-term growth and economic health of our community needs to be explained. Also in need of explanation is why industrial growth is also key to Cape becoming a truly regional hub.

Most of the recent development has been in the area of retail business construction, predominately initiated and accomplished by local developers. While a variety of new retail outlets, such as restaurants, strip malls and hotels, can serve a growing economy, this sort of development rarely is the driving force behind a vibrant, growing community. Industry can be the driving force to help provide the long-term growth in the city's economy and infrastructure to help Cape Girardeau become a strong regional hub. The last large industry to locate in Cape was Dana Corp. over four years ago. Other industries have come to our region since then -- but to other towns such as Farmington and Perryville. Lee-Rowan Co. in Jackson recently announced an expansion of its plant that will employ 200 additional workers.

Industrial development is long term because of the high costs incurred obtaining a skilled workforce and building an industrial facility. Skilled workers, such as technicians, engineers and managers, are paid above the minimum wage and increase the demand of quality education within the community to provide the skilled training required. In addition, they also have a multiplying effect on the local economy. the Bureau of Labor Statistics states that the average manufacturing job generates two to three service jobs. Currently in Cape Girardeau approximately 90 percent of all jobs are service oriented. With a high capital investment, an industry that decides to locate here is much more likely to remain here for the long term. the relative lower costs of many service oriented businesses, like restaurants, tend to be more mobile and can come and go with much more ease. IN reality, the opening of several new restaurants in Cape will more than likely result in redistribution of the existing "economic pie" as opposed to a significant net increase of jobs. As new restaurants open, other older, less competitive ones will close.

As most companies become more competitive in the global marketplace, where they chose to locate becomes more critical. Also, as the industrial base in this country continues to contract, the competition between communities to attract these industries increases even more. How well a community stacks up to this criteria becomes a true indicator of the economic health of a community. The community benefits as well from the competition of attracting new industry as it does in the actual success of obtaining new industry. Improvements to the community in education, city services and quality of life are never poor investments.

Communities which have been successful in attracting new industry have several factors of success in common. A solid community infrastructure which includes schools, streets, and other essential city services. A responsive and professional city management staff. And a strong, cooperative community spirit. Joplin and Farmington. No. 1 and No. 2 as the fastest growing communities in Missouri, possess all three of these factors. Tops on both cities' lists was a modern, high-quality school system. The Farmington president of their Chamber of Commerce rated is as their No. 1 asset. A new industry wouldn't be inclined to pick Cape Girardeau because it had newer restaurants while Jackson had new schools. Other infrastructure factors such as a modern street network, adequate and high quality water and sewer systems, and sufficient and economical electrical and gas utilities are a must. Any community serious about attracting new industry must meet the challenge in this area.

Cape girardeau has an excellent water system, police, fire and parks departments, and our sewer and storm water system is slated for improvement. On the downside, our newest school building is decades old, access to downtown remains difficult and utility service to potential industrial sites is limited. As an example, the designated industrial area along Nash road, which the city has yet to annex, still lacks city water and sewer. The Cape Girardeau Regional Airport is still served by wells and a sewer lagoon. Their ability to serve new businesses is questionable.

The new city management will also need to foster a viable working partnership with potential industries to plan for and provide these critical services. Proper planing for future development and growth must be proactive, not reactive. Crisis management serves the moment, not the future.

The final, and most important factor is a cooperative community spirit and involvement. Community involvement in outlining the goals and priorities for our city's future is an essential first step in deciding where we want our community to go and how we plan to get there. The announced public meetings to involve the community in the decision process for how the proposed transportation tax would be spent on our city street system is an excellent example. A cooperative communal spirit, by all factions within the community, can be the deciding factor between success and failure. Goals, such as attracting new industry or revitalizing the downtown district into a historical showplace, are examples that the whole community could get behind and benefit from.

But one thing is certain. Growth brings progress which brings change. Doing business as usual does not preserve the status quo but brings decline. Cape Girardeau has a quality of life and a potential for growth that many other communities would envy. To preserve that quality our community must work together to create an even better environment for ourselves and our children's future.

Randy Holdman is executive manager for construction/real estate development at DSW Development Corp. in Cape Girardeau.