urbanSTL

Do not focus solely on the hub status. My theory is that hub status is only a proxy for other considerations that drive such decisions (population and business community size, wealth, etc). St. Louis is just no longer as competitive in these measures. The lack of a hub is only a reflection.

gary kreie wrote:Shouldn't ADM farm out their IT to another company? IT would be are reason you don't have to move.

It depends on the type of IT they're referring to. If it's differentiating work, pertaining to their "secret sauce" business plan, or containing legal/financial information then it makes no sense to outsource. I bet they already have outsourced some general IT work such as the payroll applications or Peoplesoft suite apps to a service provider (just an educated guess here based on other fortune 50 companies). Service providers like CSC, Accenture, IBM, etc... are great for dumping generic IT work to cut costs. But any fortune 500 company realizes that you can't completely outsource all your IT work and expect to retain any competitive advantage. It makes perfect sense to keep the IT with the corporate leadership and create a hub/global office for ADM.

jcity wrote:Dallas could be an option.

ADM is not going to Dallas. Dallas is too far from America's grain belt and most of ADM's assets.

They'd go to Chicago - easily - before they go to Dallas - and I like The Big D.


The Grain Belt

No. I don't work in Dallas. But I did live there for a short period.

Please provide me with with any sources you have that could contradict me. I'm open.

Dallas could pursue it, but ADM isn't going there.

There are way more ADM assets in St. Louis, Minneapolis and Illinois than Dallas.

Chicago is the second busiest airport in the country - if not the world. St. Louis and Chicago are the closest cities to ADM-Decatur.

Minneapolis is closer than Dallas.

Texas could try to buy ADM from the Midwest, but with 4,400 employees to keep an eye on in Decatur, it is highly unlikely.

Saint Louis-based national corn and soybean grower organizations are encouraging ADM to move its global HQ to town:

http://stlouis.cbslocal.com/2013/09/30/ ... -st-louis/

Great article.

I knew those associations could be instrumental. Let's see how they influential they can be.

I still believe that Monsanto, Bunge and Solae (Dupont) should put out the welcome mat for ADM.

Let's convince ADM to make St. Louis the World's Agricultural and Plant Science Capital!

arch city wrote:Great article.

I knew those associations could be instrumental. Let's see how they influential they can be.

I still believe that Monsanto, Bunge and Solae (Dupont) should put out the welcome mat for ADM.

Let's convince ADM to make St. Louis the World's Agricultural and Plant Science Capital!

I'd like to know more of the theory of the Wash U prof who was formerly led Danforth Center that Monsanto's presence would be more of a turn-off than help for having big food companies HQ here. Seems like industry clustering is rather predominant in other industries.

Roger: I think that Professor is not basing his ideas correctly. For a business in a particular industry to avoid a metro area specifically because the metro area has an existing cluster within the business' industry and/or sector is bad business theory. Companies base themselves with strong positive consideration to metro areas where their industry has ready access to similar companies and non-corporate entities related to their own industry. Here in STL, we have the bases of Monsanto, Solae, Bunge, Nestle Purina, the Danforth Center, BDRG Park, Cortex, Washington University, the National Corn Growers Association, and the American Soybean Association. STL is considered one of the predominant centers of plant-based biotechnology in the world. Locating near these related entities would be a strong competitive advantage for ADM, minimally for talent recruitment, as well as sourcing opportunities for shared research or joint ventures. To claim that these are disadvantages does not recognize the value of cluster development and is poor understanding of how businesses work.

Update: Illinois is going to go the distance on providing ADM long-term tax breaks and other financial incentives to make sure the company doesn't leave their state.
Source: http://www.stltoday.com/business/local/ ... 843f7.html

This only makes sense, to protect one's tax base. I'm curious how much IL can really afford to spend to keep another company. They've already spent $100MM+ to keep the HQ of Sears Holdings (which doesn't even operate out of the Sears Tower anymore) and to retain the Chicago Mercantile Exchange & the Chicago Board of Trade. I don't doubt IL would be willing to spend another giant hunk of money to keep ADM and their tax revenues, but seriously, how much farther can IL go into debt before they realize how deep in the red and screwed they are?

The IL General Assembly will be meeting this October, and I'm sure a special incentives package will be introduced to move ADM to Chicago. Will it pass? How much will they throw across the table? Are they just printing money now?

Yes, I'm sure STL & MO will offer incentives to ADM as well. And while I'm sure money talks, I think ADM's leadership is looking to relocate for more reasons than just a handout from Springfield, IL.

Rant: I'm sick of Bill McClellan's defeatist attitude.

He wrote today that STL should stop pursuing ADM's HQ. Why?
1. It's "bad karma".
2. He still laments TWA.
3. He still laments Budweiser.
4. He still laments the Jacksonville Jaguars.
5. He maybe has unresolved issues of past girlfriends.
6. All of the above.
Source: http://www.stltoday.com/news/local/colu ... 9e573.html

His surrender monkey worldview and "woe is me" opinion of STL is old, tired, and no longer useful.

Contrast this mindset with that of Southwest Airlines' Ron Ricks, their Executive Vice President who was part of their delegation to STL last week to meet on expanding their operations at Lambert Airport. Among his comments:

What we’re hearing generally from the business community, I think, quite frankly, is that some people are more focused on the past in terms of what may have been lost and don’t really have the awareness of how much has happened since, for example, the TWA and American hubs went away... The bottom line is that St. Louis, compared to many other comparable markets in the United States of America, enjoys a very very good level of air service. It may not be perfect. It maybe could be improved. But you’re starting with a very solid foundation.

Source: http://stlouis.cbslocal.com/2013/09/27/ ... -st-louis/

Which mindset is more about what is possible, Bill's or Ron's?
If Bill wrote that article, he'd probably bypass the news of Southwest's likely expansion, just lament TWA, and call for the airport to close down because the future expansion plans haven't materialized already, and by already I mean five years ago.

What STL needs is a proactive, positive attitude, remembering our history but not reveling in our City's defeats. Only by pursuing opportunities like ADM's new HQ will we be able to grow. I'd say that our chances are about 40%, and that this is surely worth the efforts to pursue it.

^ I think in some cases it might make sense for Missouri and Illinois to partner in economic development incentives to lure particular opportunities to the metro area. For example, if let's say Minneapolis suddenly became the front runner and ADM ruled out Chicago, the combined efforts of the two states to make the transfer to Belleville or downtown Saint Louis might be out-of-the-box but also worth exploring.

gone corporate wrote:What STL needs is a proactive, positive attitude, remembering our history but not reveling in our City's defeats. Only by pursuing opportunities like ADM's new HQ will we be able to grow. I'd say that our chances are about 40%, and that this is surely worth the efforts to pursue it.

I agree 1000%. This is why building a more youthful St. Louis is so important. Bill McClellan is old and tired.

Hate to say it, but as soon as old farts like him die off, I think St. Louis will be better off. I hope not to be an old ***** like him when I get to be his age.

Although some old ***** can be forward-thinking and have a lot to offer, young people - IF they haven't been corrupted - are what helps to change attitudes and environments. They bring a new spirit and enthusiasm to the table.

Young people are usually fresh, fun and progressive - definitely elements St. Louis needs.

Fun article even though the writer sounds like Bill McClellan on part of the article.

Missouri has to step up. The article mentioned Houston and Indianapolis as players for ADM.

Houston. No way. Cattle farms in the heart of the region, yes, but it has little agricultural economy in comparison to the Midwest cities in play. Houston's economy is centered around chemicals, distribution, energy, real estate, education and medicine/health. However, Houston is near some of North America's largest rice farms. Uncle Ben's is based in Houston as well as the parent company of Minute Rice (Riviana Foods). Sysco Corporation is a big food distributor. Cargill has an outfit in Houston - near the ship channel. Other than Chicago, Houston has the best air service of all the cities. For the most part, as I see it, Houston would not be a logical choice unless Houstonians are on ADM's board or are in ADM's management. Texas could buy ADM away from the Midwest - even though geographically it would make no sense when considering where ADM's major assets are located.

Indianapolis. Unlikely, but possible. Dow AgroSciences is based in Indianapolis. Bigger ag economy than Houston, but smaller than St. Louis and Minneapolis in regards to major corporate players in food, animal nutrition and plant sciences. No major national associations for corn or soybeans. New airport terminal, but last I saw, Indy still has fewer non-stop flights than St. Louis.

By the way, St. Louis is also the North American home to Royal Canin (France), corporate headquarters of Manna Pro, emerging pet food company Nature's Variety, AFB International and Novus International (a Mitsui & Co. subsidiary). Novus is a $1-billion firm.

I guess even after 15-to-20 years, people won't get over those STL corporate losses even though St. Louis has added new players. What about the newly-emerged firms in St. Louis over those last twenty years such as Post, Express Scripts, Centene, Energizer, Panera (competing with Starbucks), Enterprise, World Wide Technology etc.?

Although Chicago has gained new players like St. Louis, what about all of the companies (Aon, Newell Rubbermaid, Nicor, Brach's Candies, Montgomery Ward, Arthur Andersen, Motorola, etc. etc.) Chicagoland has lost to bankruptcy, merger and to places like Dallas and Atlanta?

Every city/region has lost corporations over the years. St. Louis just nags and sometimes brags about it.

Anyway.......the article was a fun read.

If they truly, and I mean truly, have interest in the STL metro area, can we (the people pursuing ADM), think a bit out-of-the-box? seriously....

Present your financial package. If ADM comes back and says the state of Illinois' package is better..say FINE! Move to the Metro East, enjoy your state of Illinois economic package, and enjoy being in the STL metro area, where you have access to all the talented people working in your industry.

I like it. Actually I'd support developing two incentive packages. One primary package if they locate to the MO side of the river. And one if they locate on the IL side but are within ?10 miles? (value up for debate obviously) miles of St. Louis downtown. The second package would be on top of any applicable offerings from IL. Of coarse I assume any state offering would be limited to whether or not they locate to MO but the metro area could potentially come up with an incentive package independent of the state. I will say I don't know what could be offered to them as tax breaks are really only applicable to the jurisdiction in which they operate. Not sure what kind of other incentives (besides just writing them a check) could actually be offered.

This could be a really interesting tactic. They might have no interest in East St. Louis for executive offices for obvious reasons, but I think it displays the kind of value you place on a company's presence and i think it could convince them take a very close second or third look at St. Louis.