Ozark Distribution Market Study

The findings of this study represent a snapshot in time based on the economic conditions, industry trends, and market landscape at the time of analysis (October 2021). The study, conducted in partnership with the City of Ozark, SMCOG, and Show Me Christian County, was designed to evaluate the feasibility of attracting and expanding business operations in the distribution sector. The study does not account for future economic shifts, infrastructure improvements, or new business developments that may alter the landscape.

Key Takeaways

• Ozark and Christian County have strong potential for distribution industry growth, leveraging regional transportation assets, population growth, and existing business clusters.
• Current challenges include infrastructure limitations, lack of shovel-ready sites, and revenue generation constraints that could hinder economic expansion.
• The study assessed industry sector competitiveness at three geographic levels: the City of Ozark, Christian County, and the surrounding 50-mile region.
• Trucking, general freight, and equipment wholesaling emerged as the most competitive and high-growth sectors, aligning with larger regional economic trends.
• The study reviewed past economic development plans, local business needs, and existing site conditions to ensure recommendations align with long-term growth strategies.

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Industry Sector Analysis

• Strongest Growth Industries:

  • Business-to-business electronic markets
  • Specialized freight and trucking
  • Construction and industrial equipment wholesaling
  • General transportation and warehousing
  • Manufacturing (ammunition, trailers, and plastics)

• Competitive Advantages:

  • Ozark’s location along Highway 65 provides critical connectivity to Springfield and Branson.
  • Population growth in Christian County outpaces regional trends, creating demand for logistics, retail, and services.
  • The local workforce includes high educational attainment levels, providing opportunities to attract professional and technology-based industries.

• Challenges Identified:

  • Lack of shovel-ready development sites with necessary infrastructure (utilities, road access).
  • Ozark’s reliance on sales tax revenue creates financial constraints for funding infrastructure improvements.
  • Competition from nearby communities, particularly Republic, which has successfully attracted major distribution centers.

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Infrastructure & Development Needs

• Shovel-Ready Site Development: Many potential business sites lack essential utilities, making them less attractive for distribution-related businesses.
• Broadband Expansion: Reliable, high-speed internet access is critical for supporting e-commerce and technology-driven business sectors.
• Hospitality Growth: Ozark lacks quality hotels to support tourism and business travel, limiting local economic impact.

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Strategic Recommendations

1. Resident Engagement & Taxation

   • Renew the Transportation Sales Tax to ensure continued infrastructure improvements.
   • Educate the public on the benefits of an online sales tax, which could generate additional revenue.

2. Development Process Improvements

   • Streamline permitting and approval processes to make development more efficient.
   • Improve communication with developers to reduce regulatory barriers and incentivize investment.

3. Infrastructure Investments & Site Preparedness

   • Prioritize funding for utility expansion, road access, and broadband improvements to attract businesses.
   • Explore public-private partnerships and financing options, such as Tax Increment Financing (TIF).

4. Structural Changes & Public Funding

   • Consider transitioning to a charter government for greater local control over economic policies.
   • Reactivate the Industrial Development Authority (IDA) to provide tax incentives for business expansion.

5. Quality of Place & Tourism Development

   • Conduct a hospitality feasibility study to attract hotel investors.
   • Capitalize on amateur sports tourism opportunities to drive visitor spending.
   • Continue placemaking investments to enhance Ozark’s attractiveness as a business and residential destination.

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SWOT Analysis

Strengths:
✔ Strong regional traffic flow via Highway 65
✔ High quality of life, strong public schools, and desirable residential community
✔ Proximity to Springfield and Branson creates business and tourism opportunities

Weaknesses:
✖ Lack of shovel-ready development sites
✖ Infrastructure constraints, including broadband and utilities
✖ Reliance on sales tax, limiting funding for major improvements

Opportunities:
🔹 Expansion of logistics and distribution industries
🔹 Development of hotels and tourism assets to capture more visitor spending
🔹 Attraction of technology and advanced manufacturing businesses

Threats:
⚠️ Competition from Republic and other regional distribution hubs
⚠️ Potential expiration of key tax revenues affecting infrastructure funding
⚠️ Rising construction costs and financing challenges for new developments