LOSS OF JOBS MARKS AREAS OF CONCERN

The recent announcement of Tri-Con Industries' closing has brought numerous comments by community leaders and the public at large. While the loss of 200 jobs in itself is an obvious cause for concern, the reactions by some community leaders should also be an issue worthy of comment. Concerns for the continued development of an industrial base, as a key to the city's future economic growth, has been expressed by me in the past. The recent reaction to Tri-Con's closing brings those concerns back into sharp focus.

While we have attracted little new industry to Cape Girardeau in recent years, our existing industrial base has continued to decline. Public statements appear to express little concern due to our low unemployment rate and that "there are additional jobs in the area where the workers can go." I think they are missing the point. Yes, Cape Girardeau does have a low unemployment rate of only 4.1 percent, but is that all good news? I offer three reasons why it might also be reason for concern:

1. The average age of the city, due to the near zero rate in the last 10 years, continues to gray. Based on the recently released figures published in the Southeast Missouri Regional Planning and Economic Development Commission's updated section of the population element of the Cape Girardeau's comprehensive plan, the population of Cape Girardeau continues to age at an accelerating rate. The result is that there are fewer people of working age residing in our city.

2. Cape Girardeau has an overabundance of entry-level, minimum-wage jobs. Approximately 90 percent of all jobs in Cape Girardeau are service oriented, many of which are minimum wage such as cooks, waiters and bus boys in many of our new restaurants or sales clerks in the new retail stores. The radius of the area that an employer can draw from to attract these minimum-wage workers isn't very large. This tends to concentrate the search area. Obviously, the higher paying the job, the farther the potential employee is willing to travel. Currently in Cape Girardeau many of these low-paying jobs are being held by workers with advanced education, college degrees or better. This has caused a dumbing-down effect of these workers' potential verses the jobs they are able to find.

3. Recent higher paying industrial jobs which have located outside of Cape Girardeau draw workers from our own employment pool. The number of local people who work at Saberliner in Perryville, or P&G north of Cape Girardeau are good examples. New industry has continued to locate or expand in Perryville and Jackson. Many of the new hires have come from our city and are currently commuting. The question is for how long will they continue to commute, or will they consider moving in the future?

In answer to the second statement that there are additional jobs for laid-off Tri-Con workers to go to, I agree. But will the new jobs be at the same pay scale with the same benefits? Trading an industrial-level job for a service-level job isn't an even trade for the employee or the City. The Bureau of Labor Statistics states that the average manufacturing job generates two to three service jobs. Theoretically the ripple effect of losing 200 industrial jobs from Tri-Con could mean a net loss to the community of 400 to 600 jobs.

Cape Girardeau has recently been the bridesmaid for several industries that have looked for sites in our area. Visionaire Corp. received much of the recent press in August when they chose Ames, Iowa. But, as was well published, there were many valid reasons why they didn't come here. There have been other companies since then, such as Frito Lay, which have come and gone or "floated through" as the mayor phrased it last week. I personally know how hard the president of the Chamber of Commerce and the Cape Girardeau Area Industrial Recruitment Association have worked. If we aren't making the final selection list, there must be a reason to be found elsewhere.

The need to develop an aggressive development plan, with total community involvement, to attract and keep good, clean and well-paying industrial jobs for our city and area must be a high priority. Any support or resources we in the community can give to the city's economic development staff needs to be made. A partnership between private business and community government needs to be formed, and true support by our community leaders needs to be pledged to this effort. Tri-Con might not be something we could have prevented, but it could be the precursor of future events.

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