The Missouri Chamber of Commerce and Industry testified in both the Senate and the House this week in support of much-needed tax credits to help recruit and retain more engineers in the workforce.
Missouri Chamber members Boeing, Olsson and Bartlett & West were among the companies that outlined how the current shortage of engineers is having a detrimental effect on the state’s economy. SB 849 from Sen. Justin Brown (R-Rolla) and HB 2081, sponsored by Rep. Donnie Brown (R-New Madrid) seek to address this critical shortage.
In the Senate Emerging Issues Committee, Sen. Brown said, “This incentivizes the right kind of economic activity.” He added that the revenue generated by the tax credit would far exceed the potential tax credits. The legislation would sunset at the end of 2030 unless reauthorized by the General Assembly.
Under the proposal, engineers hired from an accredited university or recruited to the state would receive an income tax credit of up to $5,000 a year for five years. Employers would be eligible for tax credits for hiring engineers or supporting current employees who are seeking engineering degrees or certificates.
Randell Gelzer, senior director of state and local government relations for Boeing, said that approximately 50% of the company’s 16,000 Missouri employees are involved in engineering work. A previously announced $1.8 billion expansion will bring 500 new jobs, half of which will be engineers. The economic impact of the operations of the company and its more than 350 suppliers totals $768 million annually.
Bob Gilbert, chief operations officer of Bartlett & West, noted the civil engineering firm has had “40 to 50 open positions for 12 consecutive months. The demand is great, creating an incredibly competitive environment. Without the ability to hire, it restricts our ability to grow.”
Olsson, a nationally recognized engineering and consulting firm, also cited 50 openings in its Missouri offices. Darren Hennen, vice president and office leader, added, “Once we get engineers here, we’re pretty successful in retaining them.”
Oklahoma and Kansas have similar programs focused on the aviation industry. The proposals in Missouri would apply to all engineers.
Kara Corches, vice president of governmental affairs for the Missouri Chamber, cited the organization’s research that identified more than 2,000 engineer job postings in the state in December 2023. She said 860 of those open positions were recently added.
“With the expansion of Interstate 70, and the priority of reshoring manufacturing of semiconductors and critical minerals, we need engineers to fill those jobs,” Corches stated.
Missouri Chamber research also identified 26% of the current engineering workforce as being over the age of 55. In addition, 40% of the students who earn engineering degrees in the state leave Missouri for jobs elsewhere.
In the House Workforce and Infrastructure Development Committee, Rep. Brown pointed out that the challenge impacts companies of all sizes.
John Frederick, director of state and local government operations for Boeing, identified the “significant enhancement to the state’s skills base” that will result from companies being able to employ more engineers.
Phillip Arnzen, director of legislative affairs for the Missouri Chamber, testified in support in the House.
For more information, contact Corches at kcorches@mochamber.com or call 573-634-3511.
