Columbia's economy still strong despite layoffs, national economy

COLUMBIA — Despite recent layoffs in local manufacturing plants, Columbia officials remain hopeful that economic development initiatives will create new jobs.

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“Innovation, education and medicine are key for the economy, and that’s what Columbia is all about,” Mayor Darwin Hindman said. "My heart goes out to those that have lost jobs. But when you put things in perspective, Columbia isn’t doing as bad as most."

In the last 18 months, more than 300 jobs have been cut at two Columbia manufacturing plants because of the economic downturn.

Square D, a circuit breaker manufacturing plant for parent company Schneider Electric, laid off 67 workers on March 13. Earlier, the 3M plant cut its work force in half, from 500 to 250, 3M spokeswoman Jacqueline Berry said.

Square D makes molded case circuit breakers for residential, commercial and industrial circuit breakers.

The plant has seen a reduction in volume and demand and is feeling the effect of the global economic crisis, said Marty Hanna, a spokesman for Schneider Electric. Currently, the nation is facing a setback in the manufacturing sector, Columbia's plant still has 293 employees.

“We’ve seen a drop in customer demand and we have to adjust the work force to that demand," Hanna said. "If our customers are not investing in new facilities, new homes, add-ons and upgrades, frankly, it goes down the line."

To help encourage growth in the uncertain economy, Hindman said the city, MU and the state have put together incentives to attract research- or tech-based businesses. Many of these efforts have been coordinated through the Regional Economic Development Inc. office.

Incentives designed to make Columbia a center of research and technology include developing the $60 million Life Sciences Center on campus as well as Discovery Ridge Research Park, KCADC Animal Health Corridor and the MU Office of Research.

There is also a plan to assist starting up businesses through the MU Life Science Business Incubator at Monsanto Place. The university launched the initiative in 2004 to establish a support center for a potential technology industry cluster. The incubator opened in January.

One result of the incentive efforts has been the relocation of ABC Labs to Discovery Ridge Research Park. The company expanded its corporate headquarters and pharmaceutical labs to a new 90,000 square-foot facility at the research park.

ABC Labs is currently hiring several hundred employees, Hindman said.

“We have gone through elaborate processes with the state and university to take advantage of the things we have that most places don’t,” Hindman said. “This is the kind of economic development that will create jobs.”

Overall, Columbia is in a stronger position to sustain jobs, he said. The city's unemployment rate for January was 6 percent compared to the national unemployment rate of 7.6 percent, according to the U.S. Department of Labor.

With the innovation incentive, Regional Economic Development Inc. and other economic stimulus opportunities the city has planned, Hindman said Columbia still has a bright economic future.

“Columbia is feeling the recession to some degree, but we are holding up,” he said.