Slide 1

Case Study: St. Louis Inner-City Development

Defining Inner City Inner cities are defined as core urban areas that are economically distressed.

Characteristics:

20% or higher poverty rate

ORPoverty rate of 1.5 times or more that of the surrounding MSA

Median household income of half or less that of the surrounding MSA

Unemployment rate of 1.5 times or more that of the surrounding MSA

St Louis

Demographic & Business Profile

Advantages of the Inner citySignificant, growing business base on which to build: There are 168,000 jobs and 7,800 establishments in the inner cityStrategic location and transportation infrastructure for moving goods and services to customers; Immediate job and entrepreneurial opportunities in growing industries 3,000 immediate job openings in 4 clusters aloneA large, diverse, and available pool of human capital that is underutilized amidst a tight national labor market

Disadvantages of the Inner cityPoor infrastructure, investment and maintenanceLack of workforce readiness skills by many of the unemployed and underemployedRacism, crimeLack of assembled commercial and industrial land for business expansion or attraction effortsWeak relations between the city government and local companies

Main Actors in strengthening Inner CityPrivate SectorCommunity-Based OrganizationsGovernment

The Role of Private SectorThe private sector will be most effective if it focuses on what it does best: creating and supporting economically viable businesses built on true competitive advantage.Create and expand business activity in the inner city Establish business relationships with inner city companies , cooperate with each other.One of the leaders of local organization(Bachmann) took the responsibility of solving the existing problems

Role of Government Create a favorable environment for business (schools, job training, infrastructure, streamlining regulation)Better public safety.Genuine, long-term, structural advantages. Government: "a marketer"Role of Community-Based OrganizationsInner City Competitive alliance was formedThe project was not imposed on community

What could they do ? Identify and build on strengthsWork to change workforce and community attitudesCreate work-readiness and job-referral systemsFacilitate commercial site improvement and development

ClustersInner-city St. Louis has a significant representation of clusters 16 out of the 20 principle regional clusters are present in the inner city

Competitive Advantages of Metal Manufacturing ClusterMajor assetThe Metal Manufacturing cluster is the largest manufacturing employer in both the St. Louis region and the city of St. Louis. High QualityThe St. Louis region has 16 QS-9000- and 32 ISO-9000 certified metal manufacturing companies. Quality WorkforceFinally, the St. Louis region is home to a very high-quality workforceMajor Auto Assembly LocationSt. Louis is second only to Detroit in the number of cars assembled in this country

Competitive Disadvantages of Metal Manufacturing ClusterLagging National GrowthDespite its connection to the strong automotive and construction industries, metal manufacturing in ST Louis has lagged national growth trends. Workforce ShortageShortage of a qualified workforce is a major obstacle to the growth of metal manufacturing in the St. Louis inner cityInadequate Site AvailabilityMost of the available land in ST Louis is small, fragmented and costly to assemble Difficult City Government

RecommendationThe cluster should develop a marketing which should: Enhance the visibility of St. Louis as a place of excellence in metal manufacturingOrganize participation of metal manufacturers in national and international marketing tours

Should take a more proactive role in attracting workers to the field:Identify or create preparatory programs to enable inner-city residents to improve basic skills before joining more advanced training programsLink these preparatory programs to existing high-quality workforce (machinist training programs)Devise and launch a large-scale and continuous marketing campaign promoting career opportunitiesPursue automotive supplier development opportunities, better linking inner city companies to the regional automotive cluster.All of the Big Three automakers Ford, GM, and DaimlerChrysler have assembly plants in the region16Transportation andLogisticsCompetitive advantageMajor assetStrong growth Competitive DisadvantageWorkforce ShortagesInadequate Road InfrastructureMinimal Port InvestmentInadequate Site AvailabilityRecommendation:Reassert the citys position as a transportation hub through investments in inner city industrial land, road maintenance and key assets such as the Port Tap into the inner city labor pool to address labor shortages at the port and in trucking and warehousing.

17ConstructionCompetitive advantageMajor assetStrong growth Competitive disadvantageLabor shortageRecommendations:Increase construction training opportunities targeted at inner city residents. Support and expand on-going contracting and partnering opportunities for inner city companies in construction cluster. Commercial ServicesConsists of commercial printing, computer maintenance and Repair, facilities maintenance, security, data processing and retrieval and call Centers

Competitive AdvantagesSignificant Growth

Competitive DisadvantagesLabor Shortages

OpportunitiesInitiate an industry-led effort to address call center workforce shortages by setting up a St. Louis based call center training program.Pilot a strategic alliance model between well-established and emerging commercial services companiesCluster Overview

20Current SituationSt. Louis was second only to Cleveland in its representation on the nationally recognized ICIC. Inc. Magazine Inner City 100 list, with six honorees:

August Packaging -- CEO Daniel McSkimming notes that strategic location is the primary reason why inner-city St. Louis is a competitive location for his business.

Janitron -- Company partners John Boyce and Coby McGinty cite their inner-city location to draw most of their 200 employees from the immediate area or from a local bus route.

St. Louis Pre-Sort -- Owner Dan Francis relies on local programs to find the workforce for his presort mail services business.

Titan Tube Manufacturers and Triad Manufacturing -- Managers at these two companies find that though many of their workers may be qualified and learn the trade quickly, they are unable to reach a suburban location due to transportation barriers.

Wellington/CPM -- this minority-owned construction company is focused on giving opportunities to inner-city students. CEO notes that more than half of his employees are minorities and live in the inner city. Thank You