Welcome to another edition of issues -- I'm Steve Macintosh our guest is Wichita metro chamber of commerce president and CEO Brian they're very good quarter pistons are you tonight and get the title right. -- that is similar to -- important part against hey welcome to the show again. We haven't talked for a few months are you still enjoying your job very much so. -- that's pretty short -- that keeps me.
This -- excited every -- who could pass from for a job I just that was a follow what you like most about the job. I think what I liked most is the opportunity to bring our community together on top issues. We represent over 15100 business members and obviously that's everybody from a -- for prior to the presidency you know spirit. So how do we find a sweet spot with all those customers and -- and a way that we can advance the community effectively. How many members in the Woodstock chamber congress Wichita metro chamber of commerce about 15140. Right now. 15141. That represents. Almost a 140000. Employers through government corners so largest chamber in the -- chances. How many employees do you have. In the chamber we have 29 full time employees. Okay and hasn't recession had an impact on your budget. I think the recession -- an impact and everybody's budget and therefore has an impact on us. We don't work extremely hard this year to rebuild that customer base were wrapping up a membership campaign. Will close to recruiting a hundred new members so. That's a good sign also -- retention this year is much better than -- so both of those are indicators of recovering economy.
We say retention wanna just -- a repeat of repeat -- players and -- customers that customers continue to -- with some believe in the mission and believe in making the business community is strong place. Pardon me for for a mine made ten or whatever but it is -- the only way you can you could generate income is from the at the -- of the member of the fees that they paying in the news.
That's a large portion of our budget also we have sponsorships for different programs and events we have attendants. At our programs and events. And also that we have all -- arrangement and economic development were were. Involved in partnership with the city and county to -- the overall economic development program so those are our our primary means of revenue generation. Back to back to you which use your question your your answer a few minutes ago. -- do you think to recovery has really begun Brian. I think we've reached a point where there are businesses that are starting to see green shoots. Other businesses that are getting excited about national data. I think when you look at our unemployment seems like we've evened out now around in a half percent. And actually we want that number vote to go much lower. But I think we're at a point in our economy where we typically lag the national economy by about six to ten months. And I think we are starting to see some good recovery signs. Who were already seeing a slight increase in hiring over two dozen aircraft plants and you think that -- will pick up soon. I hope so you know I think -- talking to the executives with those facilities and operations. They're very in tune to what's occurring nationally and internationally and I think as those markets get stronger people are again able to buy their products and we're gonna see more hiring.
Recently. The chamber of put on a form with some of the politicians from the fourth district and I was curious to know all of you guys your politicians making a lot of noise always. It seems about creating jobs. How much -- as a politician after created job I guess that's a question with the.
That's a great question I think the reality is that everybody does not creating a job. Is building an environment so how do you dual platform. World business over the person who creates jobs this today. This is an attractive environment for me I like what's going on here I think that. It's a place where were gonna either maintain employment or we're gonna -- employment. So I think politicians principal roles Steve it is to say. What we do to -- we have an environment that's competitive and attractive. To do business owner. Who do increase the job. How much of the implement rebounded if we if we -- having -- how much will come in small business in our area. Small business is vitally important arm naturally we look to large employers from major employment gains. But every -- small businesses are out there. Adding 510 and 1520 employees and typically somewhere between seventy to 80%. Of new employment. Historically has come from small business grosso. There are vital economic driver and again we have to look how are we benefiting those small companies so they can grow. And -- your agency is one of -- several -- who have at least two part of your responsibility to try to recruit new businesses coming to town. And retain the ones we have a how successful in his chamber bin over the past couple years in this terrible week Huckabee emerged. I think would take general important attack over the past few years we we begin doing so -- idea. Visits and that's industrial development and expansion visits. And what our staff is doing is they're going out and meeting with existing business Steve Lester they made a 126 calls on existing businesses. This year that completed 45 calls an existing businesses. And the opportunities to -- to the business owner. How can we help you expand how can we help you stay hearing grow. How can we help you maintain your employment base. And we know that 85% of all jobs. Come from existing business so. Taking care of that group is really pivotal and we've done a good job with that we continue to work on the attraction side of the equation. We've got 39 prospects in the pipeline. Suppose we say or. Live prospects really ready dramatic expansion -- relocation decisions. It's summer just kicking the tires wait until the economy recovers so you -- of that game how do you keep your current growing and and how do you -- news. What do what are those existing businesses saying what to what can the chamber do WW besides braving a big magic wand and say hey the economy's back. What -- and you do. What did you don't want before you today the giant magic won't shock and one. I think first of all we have moral responsibility to look at existing. Incentives in this state existing training offering dollars. It goes businesses wanna grow on a particular way do we have incentives that can help them. Bigger than that naturally it is do we have an economy that's recovering number one and are we doing things long term. That makes the environment attractive. I think you are facing different kind of competition to do with satellite radio they can come in from any city. Well our businesses are in a very competitive worldwide environment. And they have opportunities to move for relocate so when we do to keep that Kansas environment as attractive as possible. So they wanna stay and grow here.
And understanding in this is -- isn't -- cliche that you used way to offer probably meant to talk about global economy. One of the things it is that I have learned that with his BP DBP. Oil spilled on the gulf is. How connected to industries are in other words. They're not only harming the fishing industry but people are wondering can be out of work on the rigs as well what caused the person -- people because it are also gonna suffer. It is talk about the connection and a global economy we can we see it here.
Certainly I think I think we've definitely seen here with every one of the companies that are that are major employers. Whether it's whether it's aerospace whether it's -- Cargill meats whether it's Coke. We just have a -- in her connective global marketplace. I think what that means number one is you have to understand economic trends throughout the world with regard to your product or service. But also I think each of these companies are looking for value added environment who -- to produce -- products and services. So Kansas all of a sudden becomes a very costly environment. Or it's difficult to find trained educated employees or. People are not coming to the state they're going to other states. That's the only thing the company looks -- is this really of value added environment for me. To produce market products or services or could I be better situated. In another state or another country. That's very real competition Steve. You know people say that companies won't walk away from his big physical plants and they won't walk away from proximate customers. But I think in this stage we've seen time and again where businesses can be attracted. Through better value added cost competitive environment that's rule for. Shareholders. And -- four. Boards of directors when they're looking at where they wanna locate maintain business.
When my wife -- of one of the larger corporations in town that has since left cut the footprints you resort to their. What are the things that the executives that they brought in hired in for -- the -- they love to. The values the whole value the real estate value here because they can get a lot more bang for their buck in Wichita talk about the level.
If you will sure I think -- when you look at. -- studies which -- cost of living comparisons and all the metro areas were in the top two or three nationally for. Affordability of housing. That makes a huge difference to somebody coming from Chicago market in LA and marketer. Of Boston market where. Here you can do three or four times the size home which could do in those environments so. That is one of our tractors. And our goals look at all the competitive assets and tractors we have and begin an equation where. So -- while this is an on beautiful environment. I've got a short commute I think we've got the second shortest -- can be in the country. But you know that that may not appear to be something for people that are used to this commute. But when you've got a fifty computer community fifteen minute commute compared to a fifteen minute commute. Your did a lot of today and that's important for people who like margin in the lives and actually hurts me. It -- you yeah. -- don't to court don't know on the radio in the morning all right what time spent listening right and I keep telling the boss they don't listen to more than fifteen minutes because early in the -- that off. Yes that's that's the credits it's all they sell the unit. The other attraction other attract doors would be on the short commute.
All of the affordability of housing. Schools. We -- traction do I think what what you have is you have attractions on two levels when you when you look at the -- you know it's making a decision non. Does it cost affordable environment can attract talented labor. At a at an affordable cost. Can I get where I need to go either -- or service or ground transportation rail. I think they're also looking at. Are there available facilities are property is property affordable. In the and they begin a -- the icing on the case if all those things work. And they begin to look at what's the housing market like what's the talent pool like young talent pool. Water schools medical career crime. Cut the stock -- on top of the K but if you don't get those early ingredients right. -- doesn't rise. In the other stuff never gets considered because first of wall the looking up what can we get to market and how affordably to we produce a product or service.
Past experience for me working in another company that. Had descend salespeople out all over the all over the nation sometimes all over the world was the air fares were always. Account of the traction. Have we can we solve that problem in Wichita.
But I think that's kind of area always on the treadmill problem. Opportunity. I do believe good yeah we look at the history appeared -- that it's been extremely -- took six successful and a ticket cost. Suppression. That's the goal occurs as you -- if you're. Sitting out the salesforce and they're paying 12100 dollars a ticket to go to Chicago or no way versus 400 dollars ticket. That's salesforce and those stills calls become very expensive with a higher ticket price. Our dollars the opportunity to look at southwest in the market. Again you know what will that mean from -- connection what will that mean for keeping all the flying cost lower. I do think we've we've done much better than a lot of mid metro markets. Were looking at a community to go to for metro leadership visit and we just found this very costly and time consuming to fly there so the lower the cost -- the better erupt connections. The more attractive view or war economic development and business.
Listening to issues twenty generally Entercom radio stations our guest this week is Wichita metro chamber of commerce president and CEO Brian they're very. -- with the team particularly strong stand against that statewide one penny increase in the sales tax on what was the reasoning to oppose the measure.
We were looking at how it would impact both on business owners and the general public. You know Steve I think part of the interesting presentation of that -- taxes is throw in eighteen point 75%. Increase in in the sales tax. People can see a penny. But the reality is that -- attacks almost 20%. Our board of directors and looking at a recovering economy. Felt that it was critical to provide business owners with a sense that they have an environment that sensitive what are going through. Every time you cost if you look at our financial household. And we'll have been all assault and overspending. Compared to the revenue we have coming in. We've got to make -- conscious decisions in business owners do that with their companies every day. And we heard a really strong expressed concern that was in the state of Kansas doing that. Why are we living here within the revenue means that we have available. As opposed to adding another tax. So it was very clear from our business owner's perspective. -- tighten their belts. They've had to make due with less revenue human and many times that resulted in smaller sized companies. We met with many companies that are down twenty to 30% with their labor force and say we're gonna all the song put a dollar tax on top of what they're already facing. We just didn't -- this time that was a period wise choice. For our state economy or metro com.
Yet state lawmakers told us time and again they had cut all the spending they possibly could. Any idea where. Any opinion about where they could've cut more trying to.
I think it's critical that we look at the functions provided by state government and really make sure that our group every one of those functions as necessary. It and you don't want things it was interest -- you were so kind to our. Moderating role with the fourth congressional district candidates every one of them sent a clear message that the government has gotten larger than it should be. The government is not as effective as we should be and that sometimes government has roles and missions. That were meant stay in the private sector. And I think we would use the same assessment matrix with regard to state and local government. A when you look at national polling data Steve we have a general citizenry. That is very upset by the amount of taxes they pay. By the level of government and I think were little federal watershed opportunity to change the way. Americans look at the services they receive from government in the cost of government. So I I think any legislator with their salt. Might say we cut everything we've cut will and it's time to step back and say are we doing functions. Data required by government or could -- be done better in the private sector. So I think -- at that place now where it's really true examination. Of what government provides in the cost associated with. Just like there's a global economy thing to do everything is connected to something else Kansas school districts ready to go to the courts again for over state funding of education. Oh what's the Chamber's position on that -- The Chamber's position is that we have to be very cognizant. Of the industries and the people to provide the tax dollars in the state. There are multiple agenda items those tax dollars have to pay for. At the same time Steve. If you continue to tax increase the cost of doing business. All of a sudden you are not growing the pie. Your shrinking the pop. And then in that shrieked -- you're asking for people to even go above and beyond what they've done our goal is an organization is to grow upon. Growth companies that are in the state -- Kansas proving employs -- work for them. And then all of a sudden you've got an economic picture we're. There's more revenue in the overall state system -- the opportunity to take care of the needs of kansans. We -- going that direction we believe if you keep increasing taxes. To keep placing a greater burden on businesses and employers work for them. They will go elsewhere. In the last twenty years is conclusively prove that so. This kind of rock and a hard place at the same time we know that the rock and a hard -- contains a reality. That we will lose companies and they are the major tax source in our state. For our state budget so how do we wanna do that I think we wanna grow long and it is a real attractive environment so we can secure those needs.
It occurs to me that have been having been through a few recessions myself I won't say how many. When it comes back when the economy begins to boom again when jobs are there and created and and it is the economy is better a lot of what we're talking about the simply go away won't it.
But I think I think win win. We look at we have some mature industries in this community and they have. They're moving upward growth curve still so the reality is how we support those mature industries in their recovery. And then the other neat opportunity we have and we've done a lot of this year. How we find those new entrepreneurs. That may be entering into a business segment of business niche but could -- resembled. Aerospace. 78 years ago. Where you you find companies that are gonna do the next wave of things that will impact our economy positively. And there are supported differently in an economic startup mode. In a mature business so how can we help those are two partners how we help them. Put more eggs in our basket versus relying just on the -- we currently have so that's great opportunity to because. One strategy requires a different set of engagement with mature industry. And then with new industry we have to have some different approaches to help them be successful.
As you did the chamber took -- a solid stand and improved some would say courageous or tough on that no one penny or 18%. -- There are those who might say that. The chambers being in different or. -- not constructive for education is the chambers still a friend of education.
Right absolutely in this day and age from one of the most important things we have to or. A skill people that well educated people for our employment picture. I think the reality is Steve that. Our board when you look at their overall involvement with public education you work look at their overall involvement with not and non for profits. They are contributing deeply. And contributing day in and day out as a corporate community but also with all their employees. I think what -- board looked at what we've heard from our membership is. First and foremost we have to have an environment in which business can successfully grow. If we have better environment than we can do even more than we're doing today. So it's kinda like. Looking at somebody it's trying to wean itself off life support. You know how we make sure that we have a healthy recovery for business as we move through this time frame. I think there's and a natural. Partnership and synergy between business and education. Bush if you lose one or the other than it's very difficult for one to survive by itself so how to reassure both are advancing. As opposed to only one experiencing especially when it's dependent on funding. Congress passed to leave what they called -- healthcare overhaul or reform.
There is a terrorist really certain about how that's going to impact. A small business and business in American and Wichita we certain about that are. Are do we just a which is scared about what could happen at bullies think Brian are these are what are your conclusions about healthcare. If we get another forty minutes instead of our remaining -- minutes we could we could get into that we have three so -- three.
I guess is that's it's complicated issue I guess my immediate -- Steve is that it will it will it result in more cost for small business. And as we talked about yesterday with our panel to debate it's also gonna be viewed as taxable income for. Our employees. So I have to begin to wonder if if it's of it's a wise decision to put that kind of burden on an economic engine which we talked about earlier. It also that kind of burden on a employed citizenry -- feelings. We're overtaxed. We wish we had more income to take home. And -- culture is a very very critical and vital issue and it's provision is important for our nation and every individual needs it. I'm afraid that we came up with an -- com but it didn't fully consider everybody involved in that equation and I think we have -- members of congress and members that are running for congress that wanna address that plan. And and make sure that we're not replacing an existing system was something that'll be more burdensome. Less able to deliver quality health care and much more costly. I -- a trick question. At the uniform I think. What what's right with America and -- wasn't satisfied with the answers frankly but. What do you -- right with America -- couple seconds to think about that what what does that do what's right with America. America's greatest country on earth with regard to giving individual opportunity. And freedom. That individual opportunity and freedom has resulted in greatest economy the world has ever known. It's resulted in a form of government this copy time and again. I do believe today those that are our government and our societies become very fractured over individual interest. -- we've got to come back together to examine. Cut of the cornerstones and foundations of this nation and that's how we make sure we were able to do what we need to do to. Advance each citizen to advance each stage. And I think we've gotten lost in. Probably a whole lot more cover minimum bureaucracy that our founding fathers ever imagined. And I think self reliance has always been a part of America and I don't bring that back Steve that we. How we make people feel that every day I can go out and do what I need to do to provide for multifamily. Particular in my community. And I'm not depending on someone else to do with terrific.
Cancer and timed well as some might say. -- our guest Wichita metro chamber of commerce president and CEO Brian they're very brand thanks as always for being with us. That's all -- this edition of issues when he ten will be back next week thank you for listing on Steve Macintosh.
