Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Competitive Tax Climate: Ranks highly in the Corporate Tax Index (4th in 2025) and has a relatively competitive overall Tax Competitiveness Index (13th in 2025).

Mid-Tier Economic Outlook: Overall economic outlook ranking is mid-tier nationally (24th in 2025), indicating room for improvement in policy variables.

Targeted Tax Cuts: Continued efforts to keep corporate and personal income tax rates competitive can draw businesses from higher-tax neighboring states.

Liability System Costs: State liability system costs are a national weakness (ranked 35th in 2025), which can deter large capital-intensive businesses.

Domestic Manufacturing

Sector Strength & Diversity: Manufacturing significantly contributes to the economy (∼$52.38 billion to GSP) and is growing faster than the national average, led by aerospace and defense (Boeing), automotive (Ford, GM), and food processing.

Vulnerability in New Orders: Recent purchasing management indices (PMI) show a troubling drop in new orders, which may signal a slowdown in sales later in 2025.

EV and Energy Expansion: Opportunities to grow its energy manufacturing sector, particularly in power storage, batteries, and renewable energy components, leveraging existing automotive and remanufacturing clusters.

Workforce & Skills Gap: While the workforce is strong, the need to prepare for high-tech manufacturing growth is critical, as highlighted by initiatives like the Workforce2030 Conference.

Sustainability Initiatives

Utility Decarbonization Goals: Major utility companies (Ameren) have clear, multi-billion-dollar plans to invest in grid modernization (Smart Energy Plan) and achieve net-zero carbon emissions by 2045.

Aging Infrastructure: Investments are still needed to upgrade aging equipment and enhance the grid's resiliency across the state, particularly in response to severe weather events.

Green Investment for Reliability: The utility investments in wind, solar, and natural gas capacity are explicitly designed to support robust economic expansion, creating a stable energy foundation for future industrial growth.

Commodity Price Shocks: The state's large agricultural sector and industrial base are vulnerable to global price shocks for commodities like oil, grain, and fertilizer, influenced by geopolitical conflicts.

Balance of Trade & Global Contribution

Key Export Hub: Exports nearly $19 billion in manufactured products annually, with 84% of exporting companies being Small and Medium-sized Enterprises (SMEs).

Concentration of Trade: Over half of all Missouri exports go to the top three countries (Canada, Mexico, and Germany), creating a high concentration risk if trade relations with these partners deteriorate.

Trade Agreement Leverage: 63% of the state's goods exports go to Free Trade Agreement (FTA) partners, offering a stable and leveraged framework for continued growth in North America.

Global Economic Slowdown: The state's manufacturing and exports are directly exposed to the general global slowdown in manufacturing indexes and softening consumer demand due to high borrowing costs.