
It's
a Wrap
by Melissa Wells
Packaging,
marine industries lead Manatee
County growth. But where's the workforce?
It's no longer
news that Manatee County has a strong and vital economy, with
many of its corporations in varied industries busy adding bricks
and mortar as well as staff to meet increased demand for products
and services. But emerging out of this general expansion are two
clusters that seem particularly strong: The packaging equipment
industry has a significant and growing presence, and the marine
and pleasure boating industry is plowing ahead after a swoon during
the last decade. Trailing close behind, the county's technology
firms are also making a very strong showing.
If there's
just one concern in this rosy picture of business expansion, it's
where to find the workers to make these products and provide those
services. With a 2.3 percent unemployment rate (second lowest
in the state, just 0.2 percent more than Sarasota County), captains
of industry are becoming innovators in recruiting and retaining
their workforce. And a Manatee-Sarasota county alliance has been
the first in the state to open one-stop job centers to help employers
and employees find one another.
GEBO Corporation
USA, a designer and manufacturer of packaging assembly lines,
finds many of its recruits through the University of South Florida.
"It's not
as easy to recruit here as in a big city with four universities,"
says Marc Aury, the firm's president and CEO, referring to his
days of recruiting staff in the firm's Montreal headquarters.
"But we have a good relationship with USF and it is very easy
to attract good employees. Since it takes a two- or three-year
investment to get people to perform at their best, having a nice
environment for the family is crucial. We've brought people from
Canada and Europe and if their family isn't happy, it won't work.
This area is safe, the schools are good, and when the work week
is over it's almost like a holiday. We've been able to attract
people from the north, especially in the winter. The sunshine
is an allure."
The allure
of the Tampa Bay area for GEBO's United States headquarters is
clear. "We were looking for a place to expand our North American
operations outside Montreal," Aury says. GEBO's parent company,
the Sidel Corp., is headquartered in Le Havre, France- the firm
manufactures blow-molding equipment- and GEBO has additional operations
in Santiago, Chile, and Sao Paolo, Brazil. "It made sense to be
close to South America."
Not wanting
to start its operations from scratch, the firm purchased the Aidlin
Company, already in the packaging equipment industry locally.
"It was perfect," Aury says. "It was on the West Coast of Florida
and a good, complementary business."
Packaging
capital?
Another factor
in the move is the cluster of packaging equipment firms already
in the area.
"The packaging
industry has moved from the Midwest and this is now a top location
for this industry," Aury says. "The top four major manufacturers
are here and about 20 in all are located from Sarasota to Tampa.
Twenty companies doing the same thing builds a reservoir of talent.
And we can consult with local companies on special projects. It's
nice to have these companies to draw from and trade services with."
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Marine hardware supplier
G.G. Schmitt & Sons is located within a mile of three boat
builders. Like other firms, it's looking for workers.
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In its transactions,
GEBO acquired a campus in southern Manatee with several large
manufacturing facilities, creating a situation that left its corps
of engineers scattered. "This is an engineering-driven type of
company and we needed a building for selling services," says Aury.
"We decided to do this investment and designed an open concept
for our people to work together, building 40,000 square feet of
offices."
Of the firm's
175 employees, 100 are engineers who are now consolidated in the
new two-story administrative center. But that's not all the expansion
planned at GEBO. The firm is in the process of designing and getting
permits for another 30,000-square-foot assembly building.
"We design
conveyors, machinery, conveying lines and packaging lines for
the food, pharmaceutical and personal care industries," says George
Louli, the firm's marketing director. "We provide a turnkey packaging
line."
Significant
innovations are under way at GEBO.
One involves
the production of the new plastic jars that Campbell's has introduced
for its soups. "That project is ours," Louli says. "Florida is
one of the first test markets at Publix stores."
And others
are on the way. "The next wave consumers may expect to see is
beer in plastic bottles," says Louli. "It's already being packaged
in limited test markets. It was at the Super Bowl. This is the
beginning of the end for glass."
And while
busy with new inventions and expanding its headquarters, GEBO
seems constantly to be adding staff. Forty new positions were
created last year. "Local college engineering departments help
us get young talent in," Louli says. "But when we need more experienced
engineers, we'll go out of state and out of the country in some
cases. We have the Florida factor as a positive. The cost of living
is definitely lower, real estate is more affordable and, of course,
the weather. Who doesn't want to live in Paradise?"
Boating
in Paradise
The paradisiacal
quality of life must have something to do with the area's burgeoning
marine industry. Five years ago American Marine Holdings- owned
by Wall Street investors Lee Kimmell and Lewis Ranieri and other
partners- purchased Outboard Marine Corp. and expanded the Donzi
Marine brand from three high-performance boats to more than 30
models.
Current annual
revenues at "well over $100 million is no comparison to what we
were previously doing," says Nick Miller, the firm's vice president
of marketing. "We're leaps and bounds ahead of where we were when
we started the company. We researched our buyer and produced a
product for that market. They want performance, handling qualities,
speed and functionality. That's been the formula for our success."
The 379-employee
company recently added another 40,000-square-foot facility to
its 100,000-square-foot boat manufacturing center in Whitfield
Industrial Park. Customer service operations and two production
lines have been set up in the new building. "This expansion is
our first step," Miller says. "We're looking to expand more."
The only drawback
has been finding the employees to staff expansion plans.
"Our unemployment
rate is at an all-time low," Miller says. "We're very fortunate
in that we have good people working for us. They are very loyal.
But as we grow there are new positions to be filled and we as
an industry are finding it harder to fill those positions with
qualified people. We recruit from out of the area if necessary."
Miller cites
advantages to being part of a marine cluster in the area. "There
are five manufacturers in the area and more little ones, I'm sure,"
says Miller. "A lot of vendors are located here because of the
size of this industry in Sarasota and Manatee counties. And we've
found it easy to do business here. We feel welcome here and this
is a great area to build business relationships."
Buoyed
by numbers
One of those
firms Donzi has established relationships with is G.G. Schmitt
& Sons, based in Lancaster, Pa. The firm's marine hardware division
has been operating in Manatee for 15 years and is currently building
a 70,000-square-foot manufacturing plant to consolidate operations
from two facilities.
"There are
three major boat builders within a mile radius of our new plant,"
says Ron Schmitt, the marine hardware division's president. "We
have Wellcraft, ChrisCraft and Donzi and many small boat-building
companies. That's why we're there. The synergy is there. If we
were in the auto business, we'd be in Detroit."
And this "Little
Detroit" of the boat-building industry is likely to be the recipient
of some product lines from the firm's Pennsylvania center, although
no plans have been finalized at this time. "We're looking at adding
20 or 30 more people," Schmitt says. "We've been able to accumulate
very good personnel in Manatee. We are very successful in Florida
because of our people. They're the key to any successful business.
It's difficult finding qualified people because of the low unemployment
in the area. We try to offer a very good employee package with
benefits and everything we can do to be competitive in the market
place."
Another marine
supplier has made $782,000 worth of improvements to its 186,000-square-foot
plant in Manasota Industrial Park. Taylor Made Systems is also
adding anywhere from 30 to 75 employees to its staff of 220 for
the manufacture of windshields, canvas boat covers and upholstered
seats.
And an expansion
is also under way at Ameritex Technologies Inc., which makes marine
canvas and marine interiors for boat manufacturers. The 60-employee
firm, which started operations in 1998, is more than doubling
in size with its move into a 38,000-square-foot manufacturing
facility.
"Manatee
has been a good business climate," says Don Zirkelbach, the firm's
president. "The Economic Development Council has helped our business.
The boat manufacturing industry in this area is an advantage for
us. We have a pool of boating manufacturers in this area. It's
a nice hub which aids suppliers in this area. But our biggest
reason for staying in Manatee is because of the strong support
of the Manatee government."
Cool air
power
That support
is also making things happen on a short deadline at Trilectron
Industries. The high-tech manufacturer of ground support equipment
for power, cooling and jet starts for aircraft recently acquired
Air-A-Plane in Suffolk, Va., and is transferring production to
its new $4-million, 135,000-square-foot facility in Palmetto.
The addition of manufacturing from Suffolk requires that the Palmetto
facility grow by another 30,000 square feet.
"The Economic
Development Council is helping us make this happen quickly," says
Phil Joy, the firm's president. "We plan to be moved in and fully
operational by the end of May."
From its February
8th close on the acquisition of Air-A-Plane, that's a four-month
turnaround. "It will take a lot of help from the EDC," Joy acknowledges.
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Marine canvas and interiors
are made by Ameritex Technologies Inc., which has expanded
into a new 38,000-square-foot manufacturing facility.
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The acquisition
means that Trilectron will add another 50 positions. "We have
acquired a major competitor and this will broaden our product
line and increase our customer base," Joy says. "We'll have a
new structure of customer service due to the acquisition. We'll
be able to provide service such has never been seen before."
The subsidiary
of Miami-based HEICO Corp.- which was recently named by Ernst
& Young as the best managed company in 1999- has had an increase
in sales from $13 million to over $42 million in less than two-and-a-half
years. This significant increase is due to Trilectron's move into
commercial aviation. It previously supplied military aircraft
exclusively. "With the acquisition we'll have an additional $10
million in sales over the next year," Joy says. "Air-A-Plane products
are well known in Asia, and this will help
Trilectron grow in that market."
In another
move from strictly military applications to commercial accounts,
WPI Sarasota has seen a boost in revenues and is more than doubling
its operations in a 58,000-square-foot building recently acquired
from Lockheed Martin. The cable and harness assembler has 140
employees and plans to add another 40 in this expansion.
"Our business
is 75 percent military and we're working to expand commercial
applications," says David A. Rodriguez, the firm's contract manager.
"Our commercial accounts include Cheetah Technologies and Disney
World."
The 12-year-old
company, based in Salem, N.J., likes its Manatee location. "Our
major customers are in Florida," Rodriguez says. "And those that
are in the north like to visit us in the winter. The Tampa Bay
area has been attracting a lot of corporations and many new businesses
are moving to this area."
But along
with other corporate leaders in Manatee County, Rodriguez admits
it's tough finding staff. "There's a lot of competition," he says.
"But we train our employees and treat them well if they'll stick
with us."
Expansion
fever
Sun Hydraulics,
another high-tech manufacturer in Manatee, recently purchased
acreage near the Sarasota/ Bradenton International Airport for
future expansion. "We plan to build a 35,000-square-foot plant,"
says Clyde Nixon, the firm's president. "I don't know when. It
depends on the global economy. Over one third of our consolidated
sales are outside the United States."
The manufacturer
of hydraulic cartridge valves and manifolds also owns facilities
in England, Germany, Korea and China, and has 545 employees in
Manatee and Sarasota counties.
Manatee's
rapid response team made our expansion
ten times easier than I thought it would be.
-John Bozman Sr., President, Glenroe Technologies Inc.
The county's
largest private employer has also bought acreage for expansion.
Tropicana Products Inc., a subsidiary of PepsiCo Inc., spent much
of 1999 selecting the best location for a new 150,000-square-foot
Class A office building. The firm finally decided to build in
its own back yard, due largely to the acquisition of acreage adjacent
to its headquarters.
Another expansion,
not quite so large as Tropicana's, has taken place at Glenroe
Technologies. The manufacturer of orthodontic products has doubled
in size to 36,000 square feet and added another 12 employees for
a total of 86. "Increased business is the reason for our expansion,"
says John Bozman Sr., the firm's president. "Manatee's rapid response
team made our expansion 10 times easier than I thought it would
be."
The government's
proactive economic development council also made the difference
when it came time for Casual Creations to expand its operations.
Previously operating in a 38,000-square-foot facility in Sarasota
County, the manufacturer of patio equipment recently occupied
a 100,000-square-foot building in Manatee. "The Economic Development
Council was very helpful," says Rainer Scheel, the firm's president.
"This building gives us room to grow quite a bit."
The only thing
holding Scheel back in growing his 75-employee company further
is finding additional staff. "This last year we grew 20 percent,
compared to years before at 7 or 8 percent," he says. "We started
a second shift but couldn't find employees interested to work
those hours. It's evident that the unemployment rate is hovering
around 2 percent. That is full employment. Those people who are
available bring baggage with them and aren't really interested
in working. We're going to job fairs and can only recruit people
who basically are employed somewhere else and aren't actively
looking."
One creative
solution to filling staffing needs has been to locate adjacent
to Bradenton's Staff Leasing. MarCom Technologies, a Sunrise,
Fla.-based telemarketing services company, has leased a 12,240-square-foot
call center previously leased by the Signature Group and has plans
to staff it with 200 people in two shifts. The firm's clients
include J.C. Penney, American Express, United Healthcare and Cigna
Healthcare.
It's entertainment!
The impact
of the move by Sterling & Reid Brothers Circus and Ice Capades
to Bradenton is yet to be fully realized, but it appears that
the circus may be back on its way to the Sarasota/Manatee area.
"Trucks are moving 60 years of sets and costumes from Phoenix
and Los Angeles to Bradenton," says Fred John, the firm's vice
president who handles routing and operations of the Ice Capades.
John indicates that the 10,000-square-foot facility is simply
for storage.
The entertainment
downtown won't be live, but developers are working steadily to
bring an 18-plex Regal Cinema movie theater to Bradenton's waterfront.
That's the initial effort that precedes plans for a mixed-use
commercial and office development. "The commercial will mainly
be restaurants," says Ron Allen, president at NDC Construction
Co. and a partner in the joint venture with Benderson Development
and other investors. "We're toying with the idea of throwing in
residential, but we're not far enough along to make a commitment
to that."
Allen does
plan to build 80,000 square feet of office space and 40,000 to
50,000 square feet of restaurant space. "Downtown is revitalizing
and there aren't a lot of restaurants," he says. "A lot of businesses
have shown interest with a traffic generator like the theater
next to it."
The partners
also plan to build a suites hotel. "That hasn't been finalized,
but it should be a 150-room facility," Allen says. "It's predicated
on Tropicana building their corporate center at their site. We'd
be the closest facility to that location."
Another project
in the works for Allen is the renovation of the old city hall
building, owned by Dottie McCarthy. "This will be a 40,000-square-foot
office building," he says. "We will renovate the front of the
existing building and connect a new building toward the water.
It will be two stories and will have 'under-building' parking
for 65 cars. We're finalizing leases and right now have commitments
for 100 percent of the building."
In addition
to the $25-million waterfront development that Allen and friends
are working on, plans are under way for a 250,000-square-foot
judicial center in the downtown business district. "The county
has retained the services of Dr. Michael Wong from San Diego,
a highly recognized authority on designing judicial centers,"
says Bill Theroux, executive director of the Downtown Development
Authority. "Preliminary studies have been concluded and eight
potential sites have been narrowed to two, both within the central
business district. A decision will be made soon on its location."
Development
on the Palmetto side of the Bradenton River is also proceeding
at a quick clip. "Palmetto is on the threshold of something really
great," says Mayor Pat Whitesel. "We're working out the various
challenges and what's exciting is that we're all on the same page.
The growth is wonderful. Sometimes I could use three more assistants
to handle everything that keeps coming into this office."
Retailers
have found Palmetto, including Winn Dixie, Eckerd, Walgreens,
Blockbuster and Save-A-Lot. Albertson's is currently considering
a site. "They're looking to see if we can meet some things they've
requested," Whitesel says. "They need some streets vacated. The
residents aren't opposed to it. We can work it out."
Local developer
Gil Waters plans to build a hotel next to the Manatee County convention
center. And First Dartmouth, a residential developer based in
Pinellas County, is building homes along the waterfront at Riviera
Dunes. The 202-acre community will accommodate 250 single-family
homes and 367 multi-family units. "They've sold most of the waterfront
properties and are building their first model," says Whitesel.
Palmetto also
has a school- Lincoln Middle School- under construction. "We've
had an elementary and high school but no middle school," Whitesel
says. "This will help rejuvenate our economy."
A new industrial
park is also planned for Palmetto. MBK Properties, developer of
the project, estimates that the 15-acre parcel will bring as many
as 250 jobs to the city.
Back at
the ranch. . .
Jobs are growing
in Lakewood Ranch, too. Approximately 250,000 square feet of office
space has been built or is under construction at the mixed-use
development that straddles the Manatee and Sarasota county lines.
The 83,000-square-foot Publix shopping center recently opened
fully occupied. SunTrust, Southtrust and First Union banks are
building branches at the center's outparcels.
"There is
a strong financial presence in Lakewood Ranch," says John Swart,
president of Lakewood Ranch Realty. "Six banks are planning a
presence along University Parkway. And we'll be adding stock brokerage
firms. This will be a fairly nice investment area. We have 1,800
residential homes in place and our employment growth will be strong.
We're at 2,500 people now and will triple that within two years
because of firms like FCCI and new companies coming on board."
Meanwhile,
Manatee Memorial Hospital is awaiting approval to transfer 180
of its beds to a 30-acre satellite campus in Lakewood Ranch. A
decision from the state Agency for Health Care Administration
is due in June.
And while
the hospital awaits regulatory approvals, the Sarasota/Manatee
Airport Authority awaits approval of a development of regional
impact for the Sarasota/Bradenton International Air-port. Projects
planned for the airport include a 2,500-foot extension of the
runway and noise berms, 38 additional T-hangars and a new taxiway.
Also under consideration is development of an industrial park.
"The park is a 54-acre parcel in Manatee County," says Fredrick
Piccolo, the airport authority's executive director. "This will
provide a new revenue stream that isn't tied into our airline
service and allows us to diversify. Currently if our passenger
traffic goes down, so does non-airline services revenues. This
will allow us to maintain a certain level of revenues regardless
of passenger count."
Piccolo is
also happy to see a new Hilton hotel is planned for construction
across the street from the airport. "This helps marketability
of our parcel," he says. "This is good for the area and the economy.
It provides a long-term upside for the airport for generating
traffic and creating that synergy there to see our development
go better."
The expected
investment for airport expansions is about $21 million.
Deeper-water
port
Port Manatee
is also planning a significant capital investment of approximately
$40 million for expansion. The port plans to dredge to a depth
of 40 feet at its berths to accommodate larger ships and will
add a new 60,000-square-foot cruise terminal. And it plans to
add more warehouse space for both dry and chilled products.
"This
expansion will make life a lot easier for our
present tenants. Finally, we'll be able to market the
port's geographic advantages to the cruise line
industry and companies doing business in Central
and South America."
- Steve Tyndal, Special Projects Director, Manatee
Port Authority
"This expansion
is a reflection of the need created by the port's own success,"
says Steve Tyndal, the port's special projects director. "It's
no secret that the port has exceeded normal berth utilization
capacities. This expansion will make life a lot easier for our
present tenants. Their success has exceeded our ability to keep
pace with them. And, finally, we'll be able to market the port's
geographic advantages to the cruise line industry and some other
companies currently doing business in Central and South America.
It makes sense to do business in Tampa Bay."
Another big
project headed for the port is the Gulfstream pipeline, which
Gulfstream Natural Gas plans to build across the floor of the
Gulf of Mexico from Mobile, Ala., with landfall at Port Manatee
and then across the state to Fort Pierce on the Atlantic coast
at a cost of $1.65 billion. "They've asked for a lease of up to
240 acres of land," Tyndal says. "They plan to move 12 supply
and crew ships a day to their construction site in the Gulf."
The project,
however, may be delayed due to a pending merger of Coastal Corp.
and its subsidiary, Gulfstream Natural Gas, with El Paso Energy.
The transaction is expected to close during the last quarter of
this year. A spokesman for Coastal says both companies remain
committed to building the 744-mile pipeline.
Benderson
on the move
But that stalled
project hasn't slowed down Benderson Development Company's interest
in Manatee County. Benderson last year purchased the failing Sarasota
Outlet Center and is transforming it into what it's calling "University
Consumer Square," which will include a Home Depot and a Winn Dixie-anchored
shopping center. "When it's finished it will have 650,000 square
feet of retail," says Wayne Ruben, a partner in the firm. "We'll
merge it into Sarasota Outlet Center and satisfy existing tenants.
We're adding an anchor and another big-box anchor [specifics were
pending at press time] to that piece of property."
The firm,
which has 22 projects under way in Manatee, also plans to build
360 multi-family units and 550 single-family homes adjacent to
the mall site. Benderson is developing another Winn Dixie-anchored
shopping center in Bradenton adjacent to the Bollettieri Tennis
Academy and is developing a business park at U.S. Highway 301
and Tallevast Road. "We plan for seven buildings at 123,000 square
feet each," Ruben says. "The first one is up already and we're
just signing our first leases. It will be ready for occupancy
in May. Leasing activity has been great. We also plan to build
two 10,000-square-foot office buildings there."
Besides bringing
a hotel to the downtown Bradenton waterfront development project,
Benderson is planning to develop a 120-room Hampton Inn and a
40,000-square-foot strip center on property adjacent to the Prime
Outlet Center in Ellenton.
"There's great
growth here and this is a great county to work in," Ruben says.
"The planners and planning directors are tremendous. They're good,
quality people and know what they're doing. They have good foresight
about well-planned developments."
And Ruben
has had opportunities to take notes on his favorite places to
build in Florida, with projects in Naples, Orlando and Jacksonville
also. "Manatee is the crown jewel in the state," he says. "The
quality of life here is beautiful."
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