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    Zone 7 Zone 7 Presentation Transcript

    • Primary Target Industries Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties Prepared for: Wyoming Business Council April 2005 Prepared by: The WADLEY-DONOVAN GROUP 732-790-1304
    • TABLE OF CONTENTS Page Introduction..................................................................................................................................................................................i Primary Target Industries 1. Building and Construction-Related Product Manufacturing.................................................................................................1 2. Miscellaneous Plastics Manufacturing................................................................................................................................5 3. Call Centers (small-sized, inbound)....................................................................................................................................8 Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • INTRODUCTION This Primary Target Industries report of Lincoln (southern), Sweetwater (western), and Uinta Counties (Zone 7) is the product of a contract between the Wadley-Donovan Group (WDG) and the Wyoming Business Council. For this assignment, WDG was asked to evaluate 12 separate zones as defined by the Wyoming Business Council. These zones consist of grouped counties, and within these zones, core clustered population centers, or zone core was identified. There are two product deliverables for each zone-an assessment of the locational resources for industrial, office, and other operations and a definition of the three primary target industries. The 12 area location assessment reports are presented in separately issued individual reports. The results of the assessments were used as a foundation for identifying the three target industries for each zone. WDG is the nation’s oldest independent management-consulting firm that specializes in location and economic development consulting. Its clients include many of the world’s leading companies and a variety of states and metro areas. WDG’s practice extends across the country and overseas. The Primary Target Industry selection is based on the findings of the Locational Assessment Reports, which examined such topics as labor, real estate, infrastructure, training, and quality of life issues. The Zone’s primary assets and challenges are summarized below: Key Assets Key Challenges Lower median age (34.2 years) compared to Wyoming Rapid growth in area economy (from increased development of and the U.S. coal bed methane and natural gas) created a severe skilled- labor shortage Employers report a good quality workforce Reported shortages of clerical, management, technical- professional, and blue-collar applicants The ratio of HS dropouts is lower than the Wyoming and U.S. Lack of affordable housing – migrants do not relocate their norms families to the region Applicants possess good basic skills, and bilingual Customer service and other call center positions are 10%-15% (Spanish/English) and computer skills are abundant higher then the statewide averages Clerical wages are approximately 10% below the Wyoming Employers report that many applicants are unable to pass drug average. Wages for technical, distribution, and screens production/maintenance positions are near the statewide averages Community college presence – Western Wyoming College has Employers report difficulties relocating outside talent main campus in Green River, and extension campuses in Sublette, Uinta, and Sweetwater Counties Among the lowest, if not the lowest, electric power costs in the Lack of arts and cultural amenities nation A very good outdoor and recreationally-directed quality of life Inadequate and costly air freight services Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties i Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Introduction Based on a blend of the key assets and challenges, plus our knowledge of industry locational requirements, we have identified the following primary and secondary target industries as a best fit under current conditions for Zone 7. The primary and secondary targets are not ranked by any preferred order within each category. These targets may be pursued by any community, state, or other agency, as determined by local officials. All targets, both primary and secondary, are recommendations from the WDG team for implementation within the zone. Individual communities can select which ones, from both categories, that are best for them, based upon local circumstances. Additionally, these targets are not meant to disallow, supersede, or replace existing targets identified by local communities. They were identified as ideal and realistic targets for Zone 7, given its full blend of assets and challenges and overall industry trends, and they can be treated as additional target considerations by those communities with established target programs. The WDG team made a special effort to identify targets, where available, that did not duplicate those already selected by individual communities. PRIMARY TARGETS 1. Building-Construction-Related Manufacturing 2. Miscellaneous Plastic Manufacturing 3. Call Centers (small-sized, inbound) ADDITIONAL TARGET WDG recommends for consideration ammonium phosphate fertilizer production. These fertilizers are produced from phosphoric acid and anhydrous ammonia. Anhydrous ammonia can be produced from natural gas. Western Wyoming, eastern Idaho, and eastern Utah contain an abundant supply of phosphate rock. The J. R. Simplot Company, in partnership with Farmland Industries, operates a fertilizer manufacturing plant in Rock Springs. Phosphate ore is mined near Vernal, Utah, and transported via a 93 mile-long slurry pipeline to the Rock Springs facility. There may be a strong potential in eastern Wyoming to manufacture ammonia products from coal bed methane and/or coal gasification. Access to Wyoming-produced phosphate and ammonia, combined with low electric power costs, may support an ammonium phosphate fertilizer plant in Zone 7. A feasibility study would be necessary to determine this industry potential. Target industry descriptions and profiles of the three primary targets follow. Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties ii Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • BUILDING AND CONSTRUCTION-RELATED PRODUCT MANUFACTURING Description This is a broad industry involving the manufacture of prefabricated wood buildings and building components such as roof trusses, wall frames, window units, and floors. It also includes pre-made wall units complete with insulation, plumbing, wiring, ventilation systems, and doors/windows. This target is good for parts of Wyoming because it offers an opportunity for residential and commercial builders to increase housing starts and accelerate construction speed during the short Wyoming building season. The primary four-digit and six-digit North American Industry Classification System (NAICS) for the target industry, along with the NAICS descriptions are presented below. NAICS Code Description 3212 Veneer, Plywood, and Engineered Wood Product Manufacturing Truss Manufacturing: This industry comprises establishments primarily engaged in manufacturing laminated or fabricated 321214 wood roof and floor trusses. 3219 Other Wood Product Manufacturing Wood Window and Door Manufacturing: This industry comprises establishments primarily engaged in manufacturing 321911 windows and door units, sash, window and door frames, and doors from wood or wood clad with metal or plastics. Other Millwork (including Flooring): This industry comprises establishments primarily engaged in manufacturing millwork 321918 (except wood windows, wood doors, and cut stock). Trends The profile for the building-construction-related manufacturing industries, presented below, shows mixed results in terms of establishment and employment growth. The wood-product-manufacturing sector (veneer, other wood products) shows declines in employment and establishments between 1998 and 2002. However, for manufacturers of trusses, doors and windows, and other millwork, the U.S. employment figures show positive growth. Wyoming experienced declines in the number of establishments in the wood-window-and-door- manufacturing sector, and in the other millwork (including flooring) sector; however, truss manufacturing employment marginally increased. Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 1 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Building and Construction-Related Product Manufacturing NAICS Codes – Key Statistics for 5-Year Period (1998-2002)* Source: County Business Patterns Average Average Payroll per Employees per NAICS Total Employment Total Establishments Employee Establishment Code Geography 1998 2002 % chg 1998 2002 % chg 2002 2002 3212 – Veneer, Plywood, and Engineered Wood Product Manufacturing Wyoming 70 76 8.6% 6 6 0.0% $34,487 12.7 U.S. 113,418 111,009 -2.1% 1,892 1,844 -2.5% $33,061 60.2 321214 – Truss Manufacturing Wyoming 70 76 8.6% 6 6 0.0% $34,487 12.7 U.S. 36,841 39,133 6.2% 1,066 1,025 -3.8% $31,647 38.2 3219 – Other Wood Product Manufacturing Wyoming 240 267 11.3% 24 18 -25.0% $19,993 14.8 U.S. 336,499 307,004 -8.8% 10,891 10,840 -0.5% $28,347 28.3 321911 – Wood Window and Door Manufacturing Wyoming 175 100-249 No data 8 6 -25.0% not disclosed 16.7-41.5 U.S. 64,355 69,060 7.3% 1,439 1,443 0.3% $32,968 47.9 321918 – Other Millwork (including Flooring) Wyoming 100-249 100-249 No data 5 4 -20.0% not disclosed 25.0-62.3.0 U.S. 38,814 42,336 9.1% 1,615 2,150 33.1% $28,580 19.7 *Most recent period available from County Business Patterns. WDG believes these industries are a good match for the zone. Residential home building in Wyoming has been increasing and will continue to do so for the foreseeable future (fueled partially by the increasing number of retirees). Truss manufacturing, for example, is a relatively localized industry by logistic necessity. The size of the companies is normally reasonably small; therefore, the demand on the labor force is not great. Trusses • Trusses are rigid constructions of timber posts (sometimes with metal rods) arranged in such a way that each supports the other. These, in turn, support the bridge itself, holding it up and together under pressure. Most are variations of the triangle placed between the top and bottom chords (wooden planks across the upper and lower edges of the bridge). Each chord equals one span. • Prefabricated wood trusses have revolutionized residential roof framing over the last three decades. Trussed rafters are used in over 75 percent of all new housing and in an increasingly large proportion of commercial and industrial buildings. They have the advantage of being lightweight and needing no on-site assembly. Truss-framed roofs can be erected faster and with less skilled labor than stick-built roofs. Also, trusses’ long, clear spans offer greater flexibility with floor plans. Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 2 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Building and Construction-Related Product Manufacturing • Trusses are made mostly from southern pine, Douglas fir, and the woods of the spruce-pine-fir group. Raw lumber accounts for 40 percent of a finished truss’s cost. • Nationwide, the value of shipments of trusses has increased 23.5 percent from 1997 to 2001, and the number of production employees increased by 21.8 percent during that same period. • This industry is not a strong exporter, but it has been impacted by imports from Canada, especially since 1999. • The full production capacity utilization rate of this industry in 2002 was 54 percent, which was below the national average of all manufacturing of 63 percent, which may reflect an abundance of underutilized facilities. • The industry added 36 new plants from 1998-2002 and our expectation is that the same level of location activity will continue in the future. Prefabricated Wood Buildings • Prefabricated wood buildings include a variety of structures including: wood houses (excluding mobile homes), institutional buildings, hotels and motels, schools, hospitals, prisons, farm buildings, chicken coops, garages, panels and sections for prefabricated buildings, sauna rooms, and sheds. The largest segment of the prefab wood products industry is single-family homes, so the market for prefabricated wood buildings normally follows the trend in new single-family housing construction. Factory-built housing has been increasing in popularity. There also has been a notable growth in larger, upscale homes and upscale log homes. Prefabricated wood buildings accounted for nearly 7% of all homes built in 1999, up from 6% in 1992. Log homes represented close to 7% of custom homes built in the U.S. in the late 90s; exports of prefabricated log homes also increased. • Typical prefab housing products include roof trusses, wall frames, and floors. Many builders also use pre-made wall units complete with insulation, plumbing, wiring, ventilation systems, and doors. Builders of both detached and attached homes with prefab products use a systems approach to building, which is a hybrid of site-built and manufactured housing. The four types of systems-built housing include precut homes, for which all lumber and materials come to the site already cut; panelized homes, for which the main wall panels are shipped to the site, often with plumbing and wiring already installed; sectional, or modular, homes, which are 80 to 90 percent complete when they leave the factory and have cabinets and flooring already installed; and log homes, which are factory- made kit homes. • Because prefabricated wood buildings are built to local building codes or statewide factory-built codes, they generally do not encounter serious zoning problems. Also, the difference in appearance between these units and conventional housing has become less apparent. Because large pieces of the structure come from a factory and are designed for quick and easy assemble on-site, builders reduce on-site costs, such as labor, workers’ compensation, and insurance. Furthermore, quality control generally is better in a plant than it is at a building site. These units normally can be put in place faster than can site-built units. Although most of the output of this industry is for residential purposes, some units, particularly modular ones, are used for schoolrooms, offices, and other commercial applications. • The zone is well positioned to provide manufactured housing for the greater region in which it is located. The short construction season and the limited number of experienced construction craftsmen create a market where contractors cannot meet the demand for new housing. Prefabricated wood buildings offer an opportunity to increase housing starts during the short building season by completing the rough carpentry required to enclose a home and transporting the structure, in pieces, to the construction site. The Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 3 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Building and Construction-Related Product Manufacturing vast distances in Wyoming warrant the development of prefab plants in a number of zones, since it is generally not economical to transport structures more than 200 miles. • The cost advantage of prefabricated buildings shows in the price gap between site-built and manufactured homes, which come to the site completely built. In 1997, the median price of a site-built, single-family home was $120,000, while the average price of a manufactured home was $40,000 – one-third the price. • The value of shipments of prefabricated wood buildings has increased 13.4 percent from 1997 to 2001, and the number of production employees increased by 16.7 percent during that same period. The total payroll in the industry grew to $793 million in 2003. Average wages nationally were $628/week in 2003. For production, the industry employs many assemblers, fabricators, and woodworkers. Given the tight labor market in housing construction, prefabricated buildings have been a blessing to contractors, as they require very little on-site labor. • Because this is a localized industry by logistic necessity, most companies are small, averaging 17 employees per establishment and sales per establishment of $3.7 million. Exports of prefabricated wood buildings account for only a small proportion of production. The full production capacity utilization rate of this industry in 2002 was 65 percent, which was above the national average of all manufacturing of 63 percent. • Firms leading the industry overall as of 1999 were Skyline Corp., Horton Homes, Liberty Homes, Cavco Industries, and Wausau Homes. The leading states in employment (in order of size of employment) in the production of prefabricated wood buildings are: Texas, Pennsylvania, Wisconsin, Indiana, North Carolina, and California. The following table depicts the top five states by total number of establishments in 2002 (latest data available) for the target activity’s combined three-digit NAICS Codes: Top Five States Number of 2002 Establishments 2002 California 1,278 Pennsylvania 1,005 Texas 803 North Carolina 778 Ohio 691 The top five fastest growing states by number of new establishments between 1998 and 2002 (latest data available) for the target activity’s combined three digit NAICS Codes is presented below: Top Five States Growth in in Change Establishments 1998-2002 1998-2002 California 33 Colorado 28 New York 20 Iowa 18 Georgia 14 Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 4 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • MISCELLANEOUS PLASTICS MANUFACTURING Description This target includes firms engaged in processing new or recycled plastic resins into intermediate or final products. The plastic injection molding industry produces rigid and non-rigid plastic shapes, including such products as rods, tubes, casings, pipes, fittings, fixtures, containers, and other items. Potentially relevant North American Industry Classification System (NAICS) Codes for this target are: 326121 (unsupported plastics profile shapes manufacturing), 326122 (plastics pipe and pipe fitting manufacturing), 326191 (plastic plumbing fixture manufacturing), and 326199 (all other plastics product manufacturing). NAICS descriptions are presented below: NAICS Code Description Unsupported Plastics Profile Shapes Manufacturing: This industry comprises establishments primarily engaged in converting 326121 plastics resins into non-rigid plastics profile shapes (except film, sheet and bags), such as rod, tube, and sausage casings. Plastics Pipe and Pipe Fitting Manufacturing: This industry comprises establishments primarily engaged in converting 326122 plastics resins into rigid plastic pipes and pipe fittings. Plastics Plumbing Fixture Manufacturing: This industry comprises establishments primarily engaged in manufacturing 326191 plastics or fiberglass plumbing fixtures. Examples of products made by these establishments are plastics or fiberglass bathtubs, hot tubs, portable toilets, and shower stalls. All Other Plastics Product Manufacturing: This industry comprises establishments primarily engaged in manufacturing plastic 326199 products (except film, sheet, bags, profile shapes, pipes, pipe fittings, laminates, foam products, bottles, plumbing fixtures, and resilient floor coverings). Trends The following statistical profile indicates that while the number of nationwide plastics firms constricted between 1998 and 2002, the number of workers employed in pipe and pipe fitting, and plumbing fixtures increased. Notably the number of firms and the number of employees decreased for all other plastics product manufacturing. Competition from offshore firms has impacted plastics manufacturing nationwide, but there are niche opportunities for Wyoming firms. Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 5 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Miscellaneous Plastics Manufacturing NAICS Codes – Key Statistics for 5-Year Period (1998-2002)* Source: County Business Patterns Average Average Employees Payroll per per NAICS Total Employment Total Establishments Employee Establishment Code Geography 1998 2002 % chg 1998 2002 % chg 2002 2002 326121 – Unsupported Plastics Profile Shapes Manufacturing Wyoming N/A 20-99 No data N/A 1 No data not disclosed 20.0-99.0 U.S. 28,572 25,514 -10.7% 755 653 -13.5% $37,769 39.1 326122 – Plastics Pipe and Pipe Fitting Manufacturing Wyoming N/A 20-99 No data N/A 1 No data not disclosed 20.0-99.0 U.S. 19,864 19,944 0.4% 448 439 -2.0% $33,686 45.4 326191 – Plastic Plumbing Fixture Manufacturing Wyoming N/A N/A No data N/A N/A No data not disclosed -- U.S. 17,948 21,348 18.9% 519 529 1.9% $29,642 40.4 326199 – All Other Plastics Product Manufacturing Wyoming 250-499 250-499 No data 4 5 25.0% not disclosed 50.0-100.0 U.S. 521,707 460,386 -11.8% 8,599 7,794 -9.4% $32,308 59.1 *Most recent period available from County Business Patterns. Plastic injection molders are locationally tied to auto assemblers, major electronic firms, and other manufacturers that use their products for packaging or as component assemblies. As a result, companies in this code typically serve a regional market within 100 miles of their manufacturing sites. The health and growth of the regional market for injection or blow-molded components is the primary factor that companies examine before choosing locations for future growth. While most of Wyoming is too remote from major manufacturing centers to support miscellaneous plastic fabrication, Zone 7 lies within 90 miles of Salt Lake City, which is one of the major manufacturing centers in the Mountain West. Because of the significantly higher costs of labor, taxes, and electricity in Utah, Salt Lake companies have looked recently at locations within Zone 7 for packaging and parts factories. Communities in Zone 7 with available utilities and developed industrial park sites should be successful in attracting miscellaneous plastic parts manufacturers. Some of the plastic packaging and parts needed for coal bed methane production and trona mining could also be produced by local plastics companies that locate to the region. Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 6 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Miscellaneous Plastics Manufacturing The following table depicts the top five states by total number of establishments in 2002 (latest data available) for the target activity’s combined three-digit NAICS Codes: Number of Top Five States Establishments 2002 2002 California 1,841 Ohio 1,152 Texas 950 Michigan 845 Illinois 842 The top five fastest growing states by number of new establishments between 1998 and 2002 (latest data available) for the target activity’s combined three digit NAICS Codes is presented below: Top Five States Growth in in Change Establishments 1998-2002 1998-2002 Wyoming 6 New Mexico 5 Idaho 4 Nebraska 3 Montana 2 Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 7 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • CALL CENTERS (SMALL-SIZED) Description The telephone call center industry consists of customer support and service centers, which refers to inbound call centers designed to provide ready access to customer support for products and services. This sector is diverse, but the facilities within this target activity share the common element of being white-collar operations with well-educated employees. The sector’s workforce is typically dominated by individuals with a two- or four-year college degree and a high level of technical, administrative, or professional skills. The types of industries that use call centers include retail, financial services and insurance, manufacturing, transportation, software, utilities, and business services. Relevant to small communities, customer support and service center occupations are particularly conducive to telecommuting. The use of remote agents that check in a few times per week at a centralized office is becoming more and more commonplace. There are several types of telecommuting, including working at home, hotelling, or remote centers. By offering telecommuting programs, a company broadens the potential employee demographic base. Untapped labor sources that may benefit from a telecommuting arrangement include physically challenged senior citizens, homemakers, college students, military dependants, and rural residents. Telecommuting offers quality-of-life changes that can help retain employees in a tight labor market in an industry that often experiences high turnover rates. Call centers consist of operations where customer service representatives receive telephone calls regarding customer complaints, concerns about a product or service, and inquiries about a product’s or service’s specifications, availability, and pricing. They may also receive inquiries about billing, fraud, or losses (e.g., credit cards). They are also used to assist callers seeking: • User support of a product or service • To enroll in, discontinue, and/or alter the provisions of a membership or similar service • For authorization to proceed with the provision of a service, policy, or product • To purchase a product or service • To dispense warranty, technical, policy, financial, or service information Almost all industries have functions that could be described as customer services, but those with the largest operations include: • Consumer goods manufacturers (e.g., cosmetics, health and beauty aids, computer hardware, electric and electronic gear, appliances, automotive products) • Software firms • Insurance companies and HMO’s • Banking and financial services • Credit card services • Telecommunications-related companies Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 8 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Call Centers (small-sized) • Travel and hospitality firms (including airlines, hotels, and car rental companies) • Transportation and equipment rental and leasing companies • Publishing firms • Mail order fulfillment centers • On-line services • Major retailers • Express delivery companies In addition, there has been a burgeoning growth in contract technical and customer support centers. Until recently, these service bureaus have performed mainly outbound telesales and fund-raising functions. Now they are increasingly providing inbound customer and technical support as well. The telemarketing bureaus never own the product or provide the services they are representing and generally can originate and/or receive calls for others. Activities can also include opinion research, polling and fund raising. Many call centers go across industry lines and statistics are included with the industry-specific North American Industry Classification System (NAICS) Codes. Codes directly applicable to the contract telemarketing industry include: 561422 (telemarketing bureaus), 56149 (business support services), and 541910 (marketing research and public opinion polling). NAICS descriptions are presented below: NAICS Code Description Telemarketing Bureaus: This industry comprises establishments primarily engaged in proving telemarketing services on a 561422 contract or fee basis for others. Fund Raising: This industry comprises establishments primarily engaged in providing fundraising organization services on a 56149 contract or fee basis. Marketing Research and Public Opinion Polling: This industry comprises establishments primarily engaged in systematically 541910 gathering, recording, tabulating, and presenting marketing and public opinion data. Trends The statistical profile for the call center industry, presented below, shows mixed results in terms of establishment and employment growth. Employment increased for telemarketing bureaus and fund raising operations; but decreased for marketing research and public opinion polling. While employment increased for telemarketing bureaus and fund raising operations the number of national and Wyoming establishments constricted. The number of marketing research and public opinion polling operations in the U.S. increased by 22.5% between 1998 and 2002 (the latest five-year period of which data is available). Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 9 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Call Centers (small-sized) NAICS Codes – Key Statistics for 5-Year Period (1998-2002)* Source: County Business Patterns Average NAICS Total Employment Total Establishments Payroll Code Geography 1998 2002 % chg 1998 2002 % chg ($1,000) 561422 – Telemarketing Bureaus Wyoming 100-249 250-499 No data 5 4 -20.0% not disclosed U.S. 252,237 279,109 10.7% 3,297 2,971 -9.9% $4,854,219 56149 – Fund Raising Wyoming 56 250-499 No data 15 12 -20.0% not disclosed U.S. 57,691 75,6455 31.1% 6,210 6,166 -0.7% $2,519,828 541910 – Marketing Research and Public Opinion Polling Wyoming 100-249 20-99 No data 4 2 -50.0% not disclosed U.S. 118,323 114,827 -3.0% 4,238 5,193 22.5% $4,077,541 *Most recent period available from County Business Patterns. Relocating and new call center operations are on the upswing in the U.S. and overseas. Available telecommunications and computer technology allows quick and easy transfer of large quantities of information across long distances. This allows many corporate support and service operations to be separated from corporate headquarters and manufacturing facilities and relocated as stand-alone facilities in areas of lower operating costs. • According to Call Center Management Review, there are seven million call center agents in the United States, and the annual growth rate is expected to be 20%. The number of call centers is estimated to grow. • Site Selection magazine reports that customer service, tech support, and other back-end operations are no longer restricted just to telephones to respond to customer inquiries. E-mails, the World Wide Web, and teleconferencing are increasingly being used to handle customer requests. • The availability of and reliance on support centers is increasing according to Supportindustry.com, an online resource dedicated to providing data on a variety of topics that directly relate to the profession of customer support. A survey of its members shows that 60% of respondents currently provide support to customers 24 hours a day. In an effort to combat tight labor markets, expand operating hours, reduce turnover, and control costs, many call centers are turning to the use of remote agents. In a study conducted by CallCenterCareers.com, it was shown that 30% of approximately 500 call centers surveyed allow agents to work from home, and this number is projected to increase. Another 9.1% said that this option would be made available within a year. Meanwhile, there is a growing trend in business for companies to become more responsive to their customers' needs for facilitated access and maximum convenience. It is becoming increasingly difficult to find any producer or service provider who does not have a toll-free number available to take calls for product/service complaints, questions, sales, or product inquiries. Companies that do not have toll-free call center operations to answer these calls are at a disadvantage against their competitors, and are being driven to create them. Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 10 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Call Centers (small-sized) Despite rapid introduction of predictive dialers and computer telephony integration (CTI), inbound and outbound call centers remain labor- intensive. The technology has greatly improved efficiency and responsiveness to customer inquiries. However, due to explosive growth, call centers require a substantial number of agents or CSRs. Whether these are full- or part-time depends on both the company's operating philosophy and local labor market conditions. Call centers usually include a mix of full- and part-time staff. Combined, these are referred to as FTEs (Full-Time Equivalents). As manpower costs represent 60% of operating costs, many telemarketing, help desk and customer service centers have moved to offshore contract operations where companies can hire college-educated workers at a fraction of the cost for a high-school-educated worker in the U.S. Estimates suggest that up to 100,000 jobs have left the U.S. since the peak year of 2000. Even so, many of the smaller administrative offices and call centers need close contact with headquarters, and therefore, are not likely to move to offshore locations with significant time zone differences. Location of a Dell call center in Oklahoma City, rather than in India, suggests that call center offshoring is reaching its limits. Call centers look for vacant, air conditioned space with lots of employee parking. A quality talent pool of office workers at moderate cost is another location factor, plus broadband Internet access for network operations. Call center locations must be provided with the prerequisite telecommunications capabilities, and a location within reasonable distance to a telecommunications central office, and redundant fiber optic routing is typically required. WDG believes that call centers are a good match for the zone, and can take advantage of unemployed, retail and customer service workers seeking a change in occupation, and post-secondary school student resources. The targeted call center operations identified above tend to hire Associate and Bachelors degree residents because of their basic computer capabilities and ability to “think on their feet.” Call centers also hire part-time workers and retirees and typically offer a flexible work environment (flex-time and/or job sharing). The call center operations typically pay in the middle to upper-middle range of the call center industry and, therefore, are sought after by many communities. The average size of these operations must be compatible to the size of the workforce, and the zone’s smaller-sized labor market area will limit the size of the operation that can be supported in the zone. We recommend that call center marketing feature vacant space and focus on the following functions: • Technology support • Customer service • Reservations • Catalog fulfillment Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 11 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP
    • Call Centers (small-sized) The following table depicts the top five states by total number of establishments in 2002 (latest data available) for the target activity’s combined three-digit NAICS Codes: Number of Top Five Establishments States 2002 2002 California 139,050 Florida 83,197 New York 76,704 Texas 73,667 Illinois 50,870 The top five fastest growing states by number of new establishments between 1998 and 2002 (latest data available) for the target activity’s combined three digit NAICS Codes is presented below: Top Five States Growth in in Change Establishments 1998-2002 1998-2002 California 12,066 Florida 8,763 New York 4,971 Texas 4,864 Virginia 3,304 Primary Target Industries: Wyoming Zone 7 – Lincoln (southern), Sweetwater (western), and Uinta Counties 12 Wyoming Business Council April 2005 The WADLEY DONOVAN GROUP