Springfield, Missouri The Official Economic Development Site for the Springfield Metro Region

Economic Outlook Conference keynote presents economic realities for investors

To keep investors engaged with emerging economic trends and how local leaders are dealing with an ever-changing business climate, the SBDC hosted the 8^th Annual Economic Outlook Conference on September 15.  More than 200 business and community leaders gathered to hear Ted Abernathy, executive director of the Southern Growth Policies Board, discuss the unpredictable global economy and its impact at the local level.  In his opinion, the “reality is that the U.S. economy is not wonderful and it is not terrible.”

The conference focused on economic trends such as increasing global competition, preparation of an adequate workforce, and fluctuations in major industries like manufacturing.  With a keynote address organized around a series of economic realities, Abernathy discussed how the last decade in America was not good – with slower growth in population, employment and household wealth – and the recession made things worse.  In the last year, however, there has been slight job growth in the private sector in 44 out of 50 states, including Missouri, and corporations had their most profitable year in American history.  While most Americans think the country is still in a recession, Abernathy maintained that annual GDP numbers simply do not support that idea.  For example, the U.S. unemployment rate remains high near 9%, but is still slightly lower than in Europe and India.  In the Springfield metro area, the unemployment rate remains lower than both state and national averages, hitting 7.7% in July 2011, while the area continues to see job growth from existing businesses assisted by the SBDC and its economic development partners.

Abernathy said the U.S. is in a rapidly changing economy, and despite current gloom, it will remain one of the major global powers for years to come.  Economists have known for 30 years that current conditions would be challenging, but those responsible for business growth are still looking at the same factors of cost, labor, markets and infrastructure, which the Springfield region continues to focus on in existing business retention and attraction efforts.  While manufacturing has experienced significant job loss over the last decade, Abernathy also noted an increase in worker productivity and exports, which the Springfield area has witnessed first-hand.  He told attendees that the country needs a re-imagination and that there is no new normal in reference to the economy.  He echoed what the SBDC hears from local business leaders, that workforce issues are the primary challenge to growth.  From Ted’s perspective, America needs to expect more out of the higher education system.  The country needs more workers with middle skills, and although the cost of college education is expensive, research shows that it pays off in long-term salary gains. 

The characteristics of a competitive community of the future that Abernathy shared could also describe the Springfield region: strong leadership with connected citizens, solid regional partnerships, flexible training and retraining assets, capacity for collaboration and implementation, and a global view.  Panelists from the local development community and representatives from Springfield’s targeted industries echoed Abernathy’s view that while the economic downturn has certainly been challenging, many local companies are doing well because of critical decisions made years ago and through continuing innovation.  The strength of Springfield’s retail market, strong support for locally-owned banks and available workforce training options were highlighted in the development community panel discussion.  During the targeted industries panel, a unique business model for medical devices, strong work ethic within the customer service sector and the success of the remanufacturing sector were discussed.  Armed with insights from the keynote address and the panelists, SBDC investors and other Springfield business leaders can continue to position the community to capitalize on future growth opportunities.

The conference was sponsored by BKD, LLP, the City of Springfield, and UMB Bank.

Visit www.business4springfield.com/eoc to view Ted Abernathy’s keynote presentation and conference coverage from the Springfield Business Journal and Springfield News-Leader.