Quad-Cities positioned well for the future

Staff photo Tom Lagomarcino mixes as cherry soda for a customer at the family's Village of East Davenport shop. One of the oldest Quad-Cities businesses, Lagomarcino's also is taking advantage of the internet's business opportunities.

E-commerce, industry diversification, an increasingly global economy and more high-tech jobs should mean a healthy economic outlook for the Quad-Cities in the new century, according to business leaders.

``Where we'll see an explosion, and where we're very well-positioned is in the whole warehouse distribution, as e-commerce becomes more popular,'' Quad City Development Group retiring president John Gardner said.

``Folks have got to get that shirt ordered to you. That's where warehousing, distribution comes in,'' he said. ``We're so well located -- on the interstates, on the river, the center of the country.''

That's why industries like Katun in Davenport, which makes parts for copying machines, chose the Quad-Cities, Mr. Gardner said. ``When they use UPS, they cover more of the country in less time.''

E-commerce will change the way we do business, but won't eliminate traditional retailers and others, Illinois Quad City Chamber of Commerce president/CEO Rick Baker said.

``It maybe opens up for them new customers, people that maybe don't like to go out, can't go out, or don't like to shop,'' he said of ordering products over the Internet.

``We keep thinking in terms of the Quad-Cities market, when the main focus of what we're interested in, looking at e-commerce trends, is nationally,'' Mr. Baker said. Not only that, businesses must think globally to effectively compete, he added.

``With the global economy, it opens up more opportunities for sale of their products and services,'' he said. ``The Internet just helps open that up and made it so much easier.

``I can't think of anyone who doesn't need to pay attention to technology,'' Mr. Baker said, noting even small, traditional businesses like Lagomarcino's are finding a niche on the Internet.

``Lagomarcino's has been around for almost a century and they found it in their benefit to look at the technology. It doesn't replace what they're doing,'' he said.

As the world gets smaller and mergers create ever-larger corporate behemoths, the independent Quad-Cities company still can survive and thrive, Mr. Baker said.

``When you look at local retailers that are successful -- the new WaterMark Corners, Isabel Bloom -- they're making it an interesting shopping experience,'' something you can't get at your computer or the mall, he said.

``Competitors are no longer just down the street, within the Midwest, but in many parts of the world,'' Associated Employers executive director Char Knedler said. ``We have to be aware, as business people, what's going on.''

She agreed that technology, such as the Internet and e-mail, will transform business, including allowing more people to work from home and create more flexible schedules.

``Every change has both negative and positive effects,'' Ms. Knedler said. ``There are positive things about people getting together, working face to face, and I would hope we would be mindful of that.''

Diversification of jobs -- meaning not relying on previous stalwarts like manufacturing and the farm economy -- can only help the local picture, sources said. Unemployment mushroomed in the 1980s during the farm crisis.

``I think it's very healthy for a community to be diverse,'' Mr. Baker said. ``You can weather some of the ups and downs. Now we have the farm industry at a low, but I don't think you notice it as much. The retailers are talking about one of the best Christmases they've had. That's an example of a good, diverse economic base.''

``We are better positioned to absorb bad news when we get it,'' Mr. Gardner said. That results from major growth in retail, service and tourism-related jobs.

``I think we still have opportunity for growth in the travel/tourism business,'' Ms. Knedler said. The Quad-Cities will add a new art museum, IMAX theater and PGA golf course to its menu of attractions in the near future.

``People are traveling more, they're living longer,'' Ms. Knedler said, noting the Quad-Cities and the Mississippi River are big draws, ``refreshing to many people who live in big cities. We need to protect that and capitalize on that fact.''

The national aging of the work force and people working longer will influence business, Mr. Baker said.

``The Social Security age is creeping up. It's hard to know what it's all going to look like,'' he said. ``I think younger people are putting money away, and they're not relying on Social Security as sole retirement income.''

``They don't expect Social Security to be there,'' Ms. Knedler said, noting tunover rates will continue to rise in the future.

``It's not as stable a work force, but that's just reality,'' she said. ``We need to invest and get as much out of our employees now, and learn from every one of them, so we can go to the next step.''

Ms. Knedler said the Quad-Cities also will have a more diverse work force culturally, which will require greater awareness from employers and employees.

``We've been somewhat exempt in our community from a real diverse workforce,'' she said. ``But when you're truly in a global market, you need that perspective.''

Mergers -- such as ones affecting Montgomery Kone, Bank One, Mercantile, Firstar, Ameritech, Case, TCI and MidAmerican Energy -- will continue, but with uncertain results, Mr. Baker said.

``You sort of wonder how long mergers can go on. It does have an impact, obviously, on the kinds of jobs that are remaining,'' he said.

``Sometimes you're on the receiving end, sometimes not,'' Mr. Baker said of job growth. ``The job market we have here, those losses have been swallowed up with other companies having openings.''

To compete against the merged companies, independents often will make the most of being locally owned, such as Metrobank of East Moline.

``Some people like to support what they see as a local company. They see that company supports the community they live in,'' Mr. Baker said, noting that nationwide businesses also try to help local organizations.

Another growing area of opportunity in the Quad-Cities will be value-added agriculture, where industries will use commodities like soybeans and corn in non-food products, Mr. Gardner said.

``We will see more and more uses of those commodities for all kinds of chemicals, formulations we haven't dreamed of,'' he said, noting that helps farmers hurt by low commodity prices.

For example, a soy-based plastic resin developed by the University of Delaware was used recently to mold 100-pound panels on Deere & Co.'s combines.

``John Deere is dedicated to developing farm equipment that utilizes U.S. commodities, like soybeans, produced by our farmer-customers,'' said Bud Porter, Deere's senior vice president of North American agriculture marketing.

``The potential for soybeans in plastic composites is real,'' said John Cerny, polymer application development engineer at the John Deere Technical Center in Moline.

``I'm a professional optimist. I think this community is so well-positioned,'' Mr. Gardner said. ``If we can continue to build on our strong education system, take full advantage of our location, make sure we have an appropriate inventory for industry, we'll be in terrific shape.''