Bootheel Region Study
Central Region Study
Kansas City Region Study
Lake Ozark-Rolla Region Study
Lower East central - Cape Region Study
Northeast Region Study
Northwest Region Study
Southwest Region Study
St. Louis City Study
St. Louis Metro Region Study
Springfield Region Study


Target Missouri II:


The Bootheel Region


Executive Summary

Six analysis tools are used to determine which industries should be chosen for targeting in The bootheel Region. The first two tools, Specialization Ratios (SR) and the Regional Shift (RS) component of Shift-Share Analysis (SSA), help to determine which industries might have a competitive advantage in a region. The third and most important type, the Economic Impact (EI) analysis, helps to identify which industries will benefit the region most should they expand. The Skills-Mismatch Index (SMI) determines whether the skills of the available workforce in a region match the needed skills for a particular industry. The Industrial Mix (IM) component of SSA helps to identify emerging industries. Finally, the Current Employment (CE) level of a regional industry helps to determine whether needed infrastructure is in place to attract particular industries and is an important factor when considering SRs.

Industries are awarded points on a scale of 0 to 100 based on whether they meet necessary criteria in these six categories. Those industries that score the highest are recommended for targeting. The table on the following page displays the categories and the point value an industry receives if it performs well in a specific category. If an industry does not meet the condition for that category, no points are awarded. An industry that scores well in each of the categories receives a score of 100 points, while those industries that perform poorly receive 0 points. Industries that score 50 or more points are those recommended for targeting.

Category

Point Value

Condition 1: High Economic Impact

40

Condition 2: High Specialization Ratio

20

Condition 3: Strong Regional Shift

20

Condition 4: Low Skills-Mismatch

10

Condition 5: Positive Industrial Mix & Regional Shift

5

Condition 6: High Current Employment

5

Total Points:

100

The tables that follow present those industries with scores of 50 or higher on the target scale for the bootheel Region. Three industries scored a perfect 100 points: Concrete Products (SIC 327), Motor Vehicles (371), and Misc. Equipment Rental and Leasing (735). Four additional industries scored 95 points: Primary Nonferrous Smelting and Refining (333), Nonferrous Rolling and Drawing (335), Engines and Turbines (351), and Miscellaneous Plastics Products (308). Of the 93 industries identified as possible targets in the bootheel Region, 49 scored the minimum 50 points.

Deeper analysis of these top industries reveals the potential for future economic difficulties in the bootheel Region. Generally, industries that score over 80 points on the target scale are already significant drivers of a region´s economy. All four of the industries that scored 95 points on the scale scored low on the Industrial Mix component. This indicates that the bootheel Region is highly dependent on industries that are shrinking at the national level. In fact, this is true for 18 of the top 26 industries on the target scale for this region. Further, modern hybrid industries such as Information Technologies and Life Sciences score very low on the target scale, with average scores around 40. These findings suggest that concerted efforts must be made to attract modern industries to this area, and train the available workforce so these industries can be supported.

TM2 has provided a list of 93 industries that have the best potential for economic development in the bootheel Region. The original Target Missouri provided a list of only 21 target industries for the entire Southeast Region. Of these, only 15 appear on both lists, so in this case, the two studies have obtained somewhat different results. The expanded list generated by TM2 provides a list of industries that better fits the specifics of the bootheel Region, as well as providing rankings that shed some light on the relative importance of certain industries.