WAVES OF PROGRESS:The Economic Importance of Missouri’s Waterways Presented by: Marty Romitti, Ph.D., MERIC Director Missouri River Freight Corridor Development Conference December 10, 2009 Rocheport, Missouri “The Perfect Storm” a 2000 Warner Brothers film
Everyone has a plan 'till they get punched in the mouth. -- Mike Tyson Mike Tyson vs. Frank Bruno, 1989 B. Martin/ALLSPORT
More than 279,000 Missourians are looking for work. Sources: U.S. Bureau of Labor Statistics and MERIC
Disasters • State has received nine (9) Presidential Disaster Declarations • December 6-15, 2007 Ice Storm • January 7-10, 2008 Tornadoes • February 10-14, 2008 Ice Storm • March 17-May 9, 2008 Flooding • May 10-11, 2008 Tornadoes • June 1-August 13, 2008 Flooding • September 11-24, 2008 Tornadoes & Flooding • January 26-28, 2009 Ice Storm • May 8-16, 2009 Tornadoes & Flooding • All but seven (7) of Missouri’s 115 counties have been under a Presidential Natural • Disaster Declaration since the recession began. Some counties multiple times.
Automotive Employment on the Decline Sources: U.S. Bureau of Labor Statistics and MERIC
Manufacturing Drops Most in Recent Months Source: MERIC
New Business Development Lags Missouri had an entrepreneurial activity rate of 150 businesses established per 100,000 adults, less than half the national average and second lowest among the states. Source: Kauffman Index of Entrepreneurial Activity 1996-2008
Latest economic data indicate initial “wave” of recovery following the flow of the Missouri River.
Missouri’s Economy: • Big • Diverse • Centered
Missouri’s Economy is bigger than some countries, including Portugal and New Zealand.More workers in state than entire populations of 31 U.S. states. Big
Diverse Industry Share of Missouri’s Economy(by percentage of Gross Domestic Product, 2008) Source: U.S. Bureau of Economic Analysis
The Perfect Center Missouri is located near the country’s geographic and population centers and is a virtual “next-door-neighbor” to at least 20 states. Our state’s proximity also allows for efficient “quick shipping” to markets all over the world. The state has consistently been ranked as one of the best for manufacturing and logistics. • Within 500 miles of: • 43% of U.S. population • 41% of total U.S. effective buying income • 39% of total U.S. retail sales • 41% of total U.S. service industries • 44% of total U.S. manufacturing establishments Missouri has the sixth largest highway system in the U.S., two of the largest rail terminals, and more than 1,000 miles of waterways. Our state is a hub of business activity with over 160,000 tons of cargo and 20 million airline passengers transported by air each year.
Missouri’s economy, to truly thrive in the long-term, must be diverse, global, and competitive.
Think Regionally…Sell Globally International sales by Missouri companies totaled $12.8 billion in 2008. Missourians sold goods to 197 countries around the world. Source: WISER
Think Regionally…Sell Globally Over 95 percent of cargo entering the U.S. comes by ship. One container in every ten is bound for or originates in the U.S. By 2020, the total volume of cargo shipped by water is expected to double. Sources: US DOT, US Maritime Administration, American Association of Port Authorities
Seventy percent (70%) of Missouri’s economy is located within a half-hour drive of the Missouri and Mississippi Rivers Wave 1
Missouri industries that export by barge produce substantial value. The nearly $1 billion in shipments annually supports over 75,000 jobs, $100+ million in state general revenue, and adds $1.5 billion annually to our Gross State Product. Wave 2 Source: “The Economic Value of Investment in Freight Transportation: Missouri Ports”, October 2008.
Missouri’s waterways will remain valuable to the state’s economic development efforts. However, we have only scratched the surface of the economic potential of our waterways with just 4.6% of potential waterway shipments in MO making use of the rivers as a for instance. Wave 3 Sources: TREDIS, FHWA, IMPLAN and MERIC
Offer Complete Multi-Modal Transportation/Logistics System Wave 4 Source: U.S. Army Corps of Engineers, mapping by MERIC
DiversityThere is a wide & growing range of green activities by industry segment and across the supply chain. • Adaptation Much of the green activity builds on existing industry strengths and extends them into new markets. • Specialization Each state has different potential strengths & specializations. Promote New & Emerging Industry Opportunities Renewable potentials vary considerably by geography Source: NREL Source: NREL Wave 5
Water and Economic Development Prepare for the Future Wave 6 Source: whyfiles.org
The Curse of Knowledge The $1 Billion Challenge! How to best use our waterways to maximize their contribution to economic prosperity in Missouri and for our neighbors across the Central U.S.?