Economic Development Analysis and Proposal for Wentzville, MO

Locale and Overview of Wentzville

Wentzville is a small city situated in the eastern reaches of St. Charles County, Missouri. The city has existed for more than 160 years and covers a total area of just over 51 square kilometers. Wentzville is located at the junction of Interstates 70 and 64. Its city services, public safety capabilities, exceptional school system, scenic parks, and recreational areas make it a vibrant place to live, work, and visit. Having grown substantially from a small town of roughly 5,000 residents just over two decades ago to a city of nearly 40,000 residents today, Wentzville has become a leading destination for both residents and businesses. It is currently the second-fastest-growing city in Missouri and boasts the fastest-growing school district in the state. Despite this rapid growth, the city has maintained its small-town character and sense of community. The impressive progress of Wentzville can be credited to a dedicated city government and workforce working in partnership with engaged community members and thriving businesses (LinkedIn, 2017).

In the past decade, the city has experienced significant population growth, with just over 37,000 residents in the most recent year, making it the 17th-largest city in the state. From 2010 to the present, Wentzville has grown at approximately 1.96 percent per year — double the national rate and approximately six times the growth rate of Missouri over the same period. This rapid growth strongly suggests that the trend will continue over the next decade. The expanding population has placed Wentzville on the radar of consumers, businesses, investors, and prospective residents alike. Population growth not only creates further opportunities for development and investment but also ensures the availability of a sufficient local workforce (Scott, 2011).

Economic Situation

The economic situation in Wentzville is positive and constructive. The city is currently experiencing impressive financial and economic growth, driven by declining unemployment and an increasing number of available jobs. Much of this growth is tied to the expansion of General Motors, which is the largest employer in Wentzville. The GM assembly center currently employs nearly 4,000 city residents — more than any other single establishment. In 1980, General Motors began construction on what was then its largest and most modern auto assembly plant, offering over 6,000 jobs once the facility reached full production capacity. Notably, the company declined an offer from the Mayor of St. Louis to retain its assembly plant in the city, choosing instead to relocate to Wentzville (Wentzville, 2015).

From an economic standpoint, the most significant recent development is the expansion of the General Motors assembly plant. The corporation recently completed an extensive building expansion for a new product line, which was finished in 2014 and brought into operation in the following fiscal year. General Motors is an essential economic anchor for Wentzville and a catalyst for further growth in the manufacturing sector through its supply chain. The GM plant expansion involved an investment of approximately $400 million, adding 500,000 square feet to the existing 3.7-million-square-foot manufacturing facility. A stamping press plant was also added, contributing an additional 114,000 square feet. The GM facility preserved 1,400 existing positions and planned for an additional 1,260 jobs associated with the expansion (Wentzville, 2017).

Despite this rapid population growth and industrial investment, one of the major economic concerns in Wentzville is its relatively high cost of living. The table below presents the Wentzville Cost of Living Index compared to Missouri and national averages.

Cost of Living Index Comparison

Index | Wentzville | Missouri | National

Cost of Living Index: 100 | 91 | 100
Goods & Services Index: 93 | 95 | 100
Groceries Index: 103 | 97 | 100
Health Care Index: 96 | 97 | 100
Housing Index: 105 | 79 | 100
Transportation Index: 94 | 93 | 100
Utilities Index: 113 | 104 | 100

As illustrated above, Wentzville's overall cost of living index is approximately 10 percent higher than the Missouri state average, while being roughly equivalent to the national average. Goods and services together with housing costs account for approximately 63 percent of the overall cost-of-living index. The cost of retail goods and services in the city is 3 percent lower than the Missouri mean and 7 percent lower than the national average. Key takeaways from this data include: the cost of living in Wentzville is 10 percent higher than the Missouri mean; it is equivalent to the nationwide average; housing costs are 5 percent above the national average; Missouri's overall sales tax is 17 percent below the national average; and the state income tax is 33 percent below the national mean (Area Vibes, 2017).

SWOT Analysis

A SWOT analysis is a strategic tool that focuses attention on an entity's strengths, weaknesses, opportunities, and threats. It is particularly useful because strengths and weaknesses can themselves become sources of future risks or opportunities. The comprehensive examination of all four dimensions integrates both internal and external environmental analysis (Murray-Webster, 2010). The following is a SWOT analysis of the City of Wentzville.

Strengths: (1) Economic stability and growth; (2) Growing population; (3) Educational growth and development; (4) Impressive job growth.

Weaknesses: (1) High cost of living; (2) Negative image of top public officials.

Opportunities: (1) Available land for development; (2) Increasing interest in investment; (3) Funding sources.

Threats: (1) Long commutes; (2) Rising population pressures.

Strengths

1. Economic stability and growth. The City of Wentzville has been fortunate to maintain stability through the financial and economic recession. The city has continued to experience growth in its residential, commercial, and industrial sectors in recent years. Over the past decade, it has seen strong and steady growth and investment. While many other communities suffered severely from the financial downturn, Wentzville continued to see new construction and development of housing and commercial facilities. The city has also benefited from the expansion of General Motors and growing interest from its suppliers, as well as from several smaller commercial and retail projects and the establishment of a satellite campus and new housing (Wentzville City, 2015).

2. Growing population. Wentzville was confirmed as the fastest-growing city in Missouri during the decade between 2000 and 2010. The population rose from 6,896 in the 2000 census to 29,070 following the 2010 census — an extraordinary increase of 321 percent in a single decade. The population has since grown further to 37,395. According to Scott (2011), having surpassed 30,000 residents, Wentzville has reached a critical population threshold that has attracted the attention of retailers and restaurant chains across the United States. The growing population not only increases prospects for development and investment but also ensures a sufficient workforce.

3. Educational growth and development. Growth in Wentzville is perhaps most visible in its school district, which has seen a consistent increase in student enrollment year after year. Over the past decade, the school system grew by more than 120 percent — effectively doubling its student population — making it the fastest-growing school district in Missouri. The city has added more than eight new school buildings in the past ten years. Despite this remarkable growth, Wentzville maintains one of the highest-performing school districts in the state. By 2010, the Missouri Department of Elementary and Secondary Education had recognized the district with distinction in performance for the fifth consecutive year (Scott, 2011).

4. Impressive job growth. The unemployment rate in Wentzville stands at 3 percent, which compares favorably to the national unemployment rate of 5.20 percent at the time of writing. The city's job growth rate of 3.34 percent is similarly impressive compared to the national rate of 1.59 percent. The city's strength lies not only in reducing unemployment but also in expanding the number of available jobs. Furthermore, Wentzville's projected future job growth rate of 43.69 percent for the next decade substantially exceeds the national forecast of 37.98 percent (Best Places, 2017).

Weaknesses

1. High cost of living. One of Wentzville's most significant weaknesses is its elevated cost of living. This may discourage residents from relocating to the area, purchasing homes, and can limit the scale of investment. As noted above, the cost of living in Wentzville is 10 percent higher than the Missouri mean, broadly equivalent to the national average, and housing costs are 5 percent above the national average.

2. Negative image of top public officials. A significant weakness facing Wentzville is the tarnished reputation of certain senior public officials in recent years. Several top government officials have been involved in disputes and lawsuits arising from alleged personal misconduct. These incidents have resulted in a decline in public confidence in city leadership and its ability to carry out civic duties in a diligent and trustworthy manner.

Opportunities

1. Available land for development. Wentzville has a significant amount of land available for new development, along with numerous opportunities for redevelopment of existing areas (Wentzville City, 2015).

2. Increasing interest in investment. Wentzville has experienced a notable rise in new construction permits and licenses, reflecting continued interest from developers and investors in the city (Wentzville City, 2015).

3. Funding sources. The city has access to several potential funding sources that can help finance the infrastructure improvements needed to incentivize development and investment. These include funding through the Missouri Department of Economic Development and potential financial assistance from the St. Charles County Road Board, which offers Economic Development Grants covering approximately 70 to 80 percent of eligible costs (Wentzville City, 2015). St. Charles County's economic development department works actively to ensure a business-friendly climate, support existing industries, and attract new businesses to the community through help with site selection, business backing, and redevelopment initiatives (St. Charles County, 2017).

Threats

1. Long commutes. One threat facing Wentzville is the burden of long commutes for its residents. In particular, rising gasoline prices over recent years have made residents feel effectively farther from their job markets. As fuel costs increase, consumers may be less motivated to seek housing in Wentzville. The city has been working to maintain competitive home prices by reviewing municipal building codes, with the goal of offsetting concerns about commuting costs (Scott, 2011).

2. Rising population pressures. While the city's annual growth rate of approximately 1.96 percent — double the national rate and six times the Missouri rate — has been a major asset, it also presents challenges. Projections suggest this rate will continue for at least the next 15 years. During the recent growth period, 27 new subdivisions were platted within the city limits. This outstanding growth rate poses significant challenges for the school district, parks, and the recreation department, placing pressure on infrastructure and public services.