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Business Survey Sees Silver Lining

The seventh annual Clay County business survey found a surprisingly optimistic outlook for the area’s economy.

The survey was based on in-depth interviews with 101 area executives, the survey found that while growth has slowed, a large number have plans to expand in the next three years. In spite of a continued down economy in 2009, Clay County businesses continued to grow and, most importantly, are positioned for future growth with improving economic conditions.

Overall, the local firms reported conservative expansion plans and anticipated future growth. In identifying their greatest achievements in the last three years, 51 percent included growth, expansion, or launching of new products and services. Business facilities were also in place for expansion with 88 percent in good to excellent condition, and 53 percent reporting room for expansion.

The nation’s economy has taken a toll. More than 36 percent of the businesses reported plans to expand in the next three years, down 15 percent from last year. However, these companies project more than $281,375,000 in capital investment and the creation of 698 new jobs by 2012. This represents a dramatic 45 percent increase in capital expenditure projections and the addition of 25 percent more jobs than in the 2008 projection. Economic recovery, along with attractive real estate and construction prices, are major factors in the optimistic projections.

A large majority of companies of all sizes and in all areas report heavy investments in new technology. New and advanced technologies are emerging for 78 percent of the companies, and these technologies will change either their product or how it is produced or marketed. This figure represents a slight increase of 3 percent from 2008. Ninety-nine percent of the respondents reported that the county’s technology infrastructure is adequate to meet their needs, a 10 percent increase over 2008. For example, a survey by the Smithville School District showed 95 percent of the patrons’ homes in the district had Internet access.

Markets for Clay County companies in 2009 remained static, reflecting an increase in local market emphasis and dramatic decreases in regional and national market shares of 44 percent and 80 percent respectively. The international market share decreased only slightly. Over the last two years, many firms report that they have placed greater emphasis on local markets as opposed to regional and national markets in an effort to maintain or grow sales in the down economy.

Business executives continue to give Clay County high marks as a place to do business. Diverse economy, location, population growth, quality of life, and community pride continue to be identified as primary strengths, followed closely by workforce, quality educational system, low cost of living, cooperation, and a low crime rate.

For five consecutive years, there have been increasing requests for coordinated planning among all Clay County governmental entities—county and municipal, including user-friendly codes and permitting processes that are transparent. The need for this coordinated planning has been identified as a serious weakness. The issue of coordinated planning is related to strong concerns for a progressive outlook and cooperative leadership.

The primary areas of emerging technology for Clay County firms are automation, Internet applications, paperless records, robotics, imaging, electronic financial processing, real time data collection, green energy, electronic health records, and telemedicine. For the first time, social networking as a business tool was reported as an emerging technology.

Sponsored by the Clay County Economic Development Council, the survey found major trends in included increased technology and wider marketing efforts. A large majority of companies report heavy investment in new technology. New and advanced technologies are emerging for 79 percent of the companies that will change either their product or how it is produced or marketed.