JRP Update Spring 2017

Economic Development Update

Spring 2017 Summer 2017

Joplin Region Strengthening in Food Manufacturing Projects across the region adding new investment and jobs

The Joplin region’s food manufacturing sector just keeps getting stronger, with a string of new operations and expansions.

In late April, Ajinomoto Windsor announced it would build a new 150,000-square-foot frozen food facility in Joplin’s Crossroads Business Park. The $39-million facility will have an initial workforce of up to 240 people, with growth to nearly 400 over the next several years. The facility will produce frozen appetizers for food service and retail.

The international food giant already has one operation in the region, in nearby Carthage. The company is currently adding a new $5-million production line to its 130-person operation there.

Ajinomoto Windsor Executive Vice President George Jurkovich noted that the Joplin region’s proximity to raw materials, consumer markets and strong transportation system make it a great location for the new facility as a standalone operation. However, he stressed the proximity to the Carthage plant allows Ajinomoto Ajinomoto Windsor Executive Vice Windsor to centralize its Missouri operations to create efficiency President George Jurkovich. for suppliers, end users and management.

Carthage Plant Manager Dominic Fontana, who will also oversee the Joplin operation when it starts in early 2018, stressed that the company is taking advantage of the great workforce in the region.

“I have been in the food industry for 34 years and worked in six different states, and I have never worked with a better group of people than the team we have here,” noted Fontana.

Inside ...

• More Food Company Growth • Food Sector by the Also underway, Heartland Pet Food, LLC, the manufacturing Numbers subsidiary of premier pet food company Blue Buffalo, is constructing • Millions of Work a 112,000-square-foot addition to its existing 425,000-square-foot Hours with No Lost original facility that opened in mid-2014.

Time Event (Continued Page 2)

Food Manufacturing, Continued (Continued from page 1)

The nearly $40-million project will open in mid-2017, adding 45 new jobs to the existing employee base of more than 160. Blue Buffalo selected the region for its first manufacturing facility because of its location to Interstates 44 and 49 and skilled food processing workforce.

Other current projects include:

Private-label beverage product producer Jasper Products began an expansion in early April that will add up to 70 new jobs to its 500-person workforce. The company’s $25-million investment will increase production line capacity.

Opal Foods

In Neosho, Missouri, Opal Foods is underway on a more than $11-million investment. The company is putting nearly $1.5 million into new headquarters space and $10 million into new specialty egg production facilities. Opal is a leading producer of eggs in the U.S. Quapaw Chairman John Berrey announces new facility. Picture Courtesy Miami Newsmarket.

Record.

Continued growth at Sugar Creek’s bacon production facility in Frontenac, Kansas, is leading to expansion of the company’s packaging operations in Carthage, Missouri. Both communities are in the region. The Ohio-based firm has had a small packaging/distribution location in Americold’s underground facility for a decade. The expansion will enhance packaging capacity and add up to 70 new jobs.

The Quapaw Tribe is nearing completion on its 25,000-square-foot beef and bison processing facility at Miami, Oklahoma. The facility, the first of its kind for any Native American tribe, will employ up to 20 people. It also has training facilities in beef processing to support area community college and university students training for food manufacturing careers.

Additional Frozen Food Warehouse/Distribution Space

An additional 150,000 square feet of frozen and cold storage capacity comes on line in late 2017 with an expansion by Don’s Cold Storage.

Less than two years after opening its first Missouri facility in Webb City, the Arkansas-based company is doubling in size to meet the continued demand for quality warehousing and transportation by area producers. The current facility is primarily supporting the growing beverage producers right now, noted General Manager Brent McBride. The $15-million expansion will add up to 20 new jobs.

Food Processing in the Joplin Region Fifty Companies, 5,000 Jobs

Food and beverage production (NAICS 311 & 312) has a strong presence in the three-state Joplin region. At the end of the first quarter of 2017, these two employment sectors employed 5,409 people; an increase of nearly 700 jobs since 2012 and nearly 200 in the past year. The region is strong in both human and animal foods, with 50 companies calling the area home. Companies such as General Mills, Sugar Creek Packing, Schreiber Foods, Butterball, Jasper Products, J&M Farms, Opal Foods and Cott Beverages meet the demand for quality food products for U.S. residents. Pets get fed by the Joplin region as well with leading branded and co-packing companies like Mars Petcare, Heartland Pet Food (Blue Buffalo), Triple-T Foods and CJ Foods.

Animal nutrient companies such as Trouw Nutrition, Protein Solutions and Nutra Blend, LLC help support the food and ag sector in the region.

Utilizing EMSI data for Q1 2017, the Joplin region had the largest 5-year percentage growth in employment compared to its respective three states and the U.S. Even with the growth of the food sector, wages continue to compare very favorably with those states and the U.S. Region Joplin Region Kansas Missouri Oklahoma United States

2012 Jobs

2017 Jobs

Change

4,764 31,758 45,509 18,051 1,675,800

5,409 33,706 46,149 17,915 1,826,402

645 1,948 640 -136 150,602

% Change 2016 Average Earnings 14% 6% 1% -1% 9%

$51,420 $55,566 $61,123 $49,240 $57,967

By Location Quotient, or density of jobs in an employment sector compared to the U.S, the Joplin region shows its strength in food and beverage processing. The graph indicates the concentration of both sectors combined, compared to the respective three states and the U.S in 2017 LQ. It also highlights the change in LQ. For example, the Joplin region has increased its LQ from 3.27 to 3.58, a change of nearly 10 percent since 2012. The U.S. employment in any sector is a “1.�

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Food Processing, Continued (Continued from page 3)

The chart below further breaks out the relative LQ of food manufacturing and beverage manufacturing in the Joplin region and in its respective three states. Food manufacturing has a high density in the region, although the beverage manufacturing sector has seen growth since 2012.

Q1, 2017 Location Quotient By Number. “1” U.S. employment in sector.

Industry 311 312

Description Food Manufacturing Beverage and Tobacco Product Manufacturing Total

Joplin Region

Kansas

Missouri

Oklahoma United States

4.07

2.10

1.31

0.84

1.00

0.42

0.36

1.22

0.99

1.00

3.58

1.87

1.30

0.86

1.00

The numbers above do not reflect continued expansion of the food and beverage manufacturing sectors as mentioned in the article. All data is drawn from EMSI.

Mars Petcare: Seven Years Without Lost-Time Accident

The Joplin region is known for its effective and dedicated workforce, and that leads to greater productivity and a safer work environment. Mars Petcare in Miami, Oklahoma, is a case in point.

In April, Mars was honored with the Three Million Man Hour Safety Award from the Oklahoma Department of Labor for accumulating three million work hours over seven years without a lost day due to a work-related injury or illness.

The 80-person operation, which has been in Miami for 20 years, celebrated this significant safety milestone with an interactive Day of Safety and luncheon for its associates to honor the site’s achievement and commitment to creating a safe work environment. The Mars team was recognized by Chris Benge, chief of staff for Governor Mary Fallin, and the proclamation of “Mars Petcare Day” by the City of Miami.

Throughout the day, Mars Petcare associates went through training stations with safety professionals to focus their commitment to remaining accident free at the work place. This training included a fire safety presentation by the nearby Galena, Kansas Fire Department.

Miami and Galena are part of the Regional Partnership.

Joplin Regional Partnership Mark Turnbull, Director of Regional Strategies 417.624.4150 (O) | 417.437.8322 (C) | 320 East 4th Street | Joplin, MO 64801 mturnbull@joplinregionalpartnership.com | JoplinRegionalPartnership.com