Editor's Welcome

by David Reed

May 2,2008

One theme emerged from two recent economic development forums and articles in this issue of CBT: the Columbia area's economy is in a transition.

While there has been a significant drop in manufacturing employment and the housing market has been dismal, the overall number of jobs here increased last year, and commercial construction related to the university and health care is robust.

Banking sage Jeff MacLellan concluded his presentation at the CBT Power Lunch by saying he sees more potential in Columbia's economic growth than he's seen since moving here from Texas back in 1985.

During a Chamber of Commerce annual retreat that focused on the local economy, state Department of Economic Development Director Greg Steinhoff said there is "a huge potential" for economic growth.

Both MacLellan and Steinhoff based their optimism on potential businesses with high-paying, high-tech jobs that evolve from research at the University of Missouri.

Also at the chamber retreat, MU Extension data analyst Bill Elder presented an illuminating chart of "Employment Change by Economic Sector in Boone County" (see Page 17). From 2004 through 2007, manufacturing employment decreased by 14 percent, while health care employment rose 14 percent and jobs related to MU increased significantly.

MU has always been the main engine driving the local economy, with the progress toward turning university research into jobs.

Columbia Chamber of Commerce President Don Laird says the local link with MU "is stronger, and it will get even better."

At the CBT Entrepreneurial Excellence Awards ceremony, guests heard the success story of ABC Labs, the first tenant at MU's research park, Discovery Ridge.

In our Page 36 article on the University of Missouri's Life Science Business Incubator, which is on target to open in September, CEO Jake Halliday said they're close to reaching agreements with several potential tenants and getting the state funding needed to finish interior construction.

Steinhoff pointed out that the university is ranked high in research funding but low in technology transfer. A significant percentage of patents based on research at MU is purchased by companies outside the state, and the amount of venture capital is low compared with the national average, he said.

That's where the growth potential exists.

However, MacLellan, Steinhoff and business leaders attending the Power Lunch and the chamber retreat agreed that one drag on the local economy is the poor passenger air service in Columbia.

A connection to a hub in Memphis rather than Kansas City could help diminish that problem in the short term. On the center spread of this issue, starting on Page 22, we give readers an idea of what to expect if the federal government agrees with the city's recommendation.