Sparks
from Within
by
Melissa wells
New companies arrive, but most expansion and new investment
is from existing firms.
THE TAMPA
BAY AREA HAS enjoyed a series of banner years lately, consistently
ranking at or near the top in the country for attracting new
jobs. And even though there has been a batch of job-loss announcements
over the past year as the nation's economic downturn took
hold, resulting in the loss of jobs in Hillsborough County,
officials say as many or more are coming to the area.
To be
sure, "We have had negative announcements of jobs leaving,"
says Robin Ronne, director of economic development for the
Greater Tampa Chamber of Commerce's Committee of 100. But,
he adds, "Our focus has been to develop a good base of complementary
and competing industries that can take advantage of labor
pool ups and downs."
Although
the percent of local companies planning to expand is dropping,
from 57 percent last year to 50 percent projected for October
through December 2001, as determined by Manpower Inc., that
far exceeds the national average of 24 percent. Last year
the national average was 32 percent.
Many of
the jobs that have disappeared are in the telecommunications
and dot-com industries. Little Rock, Ark.-based Alltel Corp.,
which shrunk its workforce by 1,000 earlier in the year, eliminated
105 positions in Tampa. With 500 employees in 25 cities last
year, 2nd Century Communications Inc. closed its doors in
May, laying off its workforce of 100 in Tampa. Verizon Wireless
has erased approximately 40 management positions at its 1,200-employee
Tampa call center. ComerceQuest, one of Tampa's fastest-growing
technology firms, eliminated 14 percent of its 381 positions.
And Mountain View, Calif.-based Ariba Inc., which last year
opened a Westshore office to develop software for Internet
retailers and wholesalers, cut 160 jobs locally.
"When
Fingerhut shut down their operation we lost 900 jobs," Ronne
says. "That was a large contraction in the marketplace. [But
Honolulu-based] Cheap Tickets Inc. took over their former
space [in Tampa] and will have 400 employees by year end."
While
jobs are shifting, the current state of the nation's economy
in some ways is an opportunity for gearing up in Tampa. "A
down market means that profitability is being squeezed and
margins have narrowed," says Ronne. "People are looking for
a more cost-effective place to do business. We can take a
lemon and turn it into lemonade. Our cost effectiveness as
a business center is evident. It doesn't take a lot to figure
out that you can put a lot of money in your pocket to live
and work here. Give me an up or down market, I have a good
case to present."
With the
fourth-largest population among Florida's 67 counties, Hillsborough
County is home to Tampa and neighboring Westshore, which at
10.3 million square feet holds the distinction of being the
largest office market in the state.
The most
recent enhancement to Tampa's appeal is International Plaza,
the newly opened $200-million retail center that is introducing
three new upscale department stores to the region. Nordstrom,
Neiman Marcus and Lord & Taylor are anchoring this 1.26-million-square-foot
mall, which, the retailers hope, will attract some of the
increasing number of passengers cruising from the Port of
Tampa.
The port
is investing $30 million this year alone to increase services,
and the result is additional cruise ships sailing from its
new terminal and docks. Tourism generally is on the increase.
Hillsborough County reports a record 15.4-million visitors
in 2000, a 14.3-percent increase from the previous year and
tourists spent $2.5 billion, 11.2 percent more than in 1999.
But tourists
come and go. Hillsborough likes to cite that in the past four
years the companies that have relocated or placed additional
business units in the area include Capital One, PricewaterhouseCoopers
LLP, Verizon Wireless, J.P. Morgan Chase, Citicorp, Ford Credit
Inc., Uniroyal Optoelec-tronics, General Motors and Maritrans.
"Maritrans
is the largest shipper of petroleum products under the U.S.
flag," Ronne says. "They relocated their corporate headquarters
from Philadelphia to Harbour Island, and can look out their
windows to see their ships. It's always nice to get headquarter
companies here." That relocation alone has already had a positive
impact on the local economy. "They have spent three contracts
at $30 million with Tampa Bay Shipbuilding to double-hull
their petroleum barges," says Ronne. "When you bring in a
company like Maritrans, the spin-off effect to other [local]
businesses is dramatic."
E-commerce
for utilities
Another relocation to Harbour Island is Enporion Inc., a venture
formed in Chicago last year by seven large utility companies.
The company headquarters occupies a 30,000-square-foot office
and has 50 employees. "These utilities all have $3 to $10
billion a year in sales," says George Gordon, Enporion's president,
who also relocated to the Tampa Bay area. Gordon, previously
president of FastParts.com, a B2B firm in Silicon Valley,
says the utilities "formed this company to use technology
to improve the efficiencies of their supply chains. That includes
aggregating buying power and standardizing the business transaction
to reduce costs. Utility companies are continuing to consolidate
and look for ways to become more competitive." To achieve
that, Enporion has been created as a contracting authority
for its member utilities, now at 14. "We negotiate group contracts
and evaluate proposals," Gordon says. "We're brokering commodity
items that utilities use to produce and distribute their power
from turbines to transformers to ladders to safety gloves."
Much of
this is done in an Internet setting somewhat similar to shopping
on eBay but with differences. "We're the portal through
which a purchasing function is done on behalf of the utilities,"
says Gordon. "We conduct reverse auctions for our buying members.
If they want to buy transformers, we arrange for a number
of transformer companies to bid. On one recent bid we saved
$400,000 over the last price the utility paid. We run the
gamut of e-commerce options for our members. We want to aggregate
both buyers and suppliers to facilitate the business transactions
between them."
Cash settlement
of transactions is done separately. "We're an electronic document
transaction service," explains Gordon. "We handle all business
transactions up to cash settlement. At some point, we'll do
that too."
The company,
formed in August last year, "went live with our service offering
late in the fourth quarter, which is record timing," Gordon
says. "To date we've done $50 to $60 million worth of transactions.
We're doing very well and are very optimistic about the future."
The company
originated in Chicago, but "that was temporary headquarters
from the beginning," says Gordon. "We launched a site survey
of various locations. What brought us to Tampa is a combination
of quality of life, access in a relatively high-tech area
to qualified employees and overall cost of living. The Tampa
location was one of the attractions for me as well. I like
the water and quality of life here. And there's not as much
traffic as Silicon Valley."
Of course,
quality of life alone can't be credited with bringing companies
to Hillsborough County. The infrastructure is important, too.
"Part of the reason we've been so successful is that we've
had a tremendous inventory of large master-planned corporate
parks with DRIs (developments of regional impact) in place,"
says Ronne. "As we've talked with J.P. Morgan Chase, MetLife
and Citicorp, we've been able to put their facilities in place
with Verizon SmartParks that provide advanced telecommunications.
Everything has been ready to go with 30 days to site plan
approval and fast-track construction. These locations are
close to labor pools that provide an easy commute compared
to where they're coming from.
next
page >>
|