Des Moines Register
11-08-07
Report optimistic, raises challenges
Businesses say outlook is good; more employees needed
BY KATHY HANSON
CONTRIBUTING WRITER
The Ames Economic Development Commission recently rolled out its annual
Executive Call survey of area business and industry, forecasting growth of local
industry and capital investment despite concerns about workforce availability.
The report inspires confidence in local economic development on multiple levels,
according to Ron Hallenbeck, AEDC vice president of existing industry - in the
projection of job growth, for example, and in the integrity and value of the report
itself.
Hallenbeck logged months executing a revamped survey tool, meeting face-toface with local business and industry leaders and processing data using the
Synchronist System, an Internet software tool that organizes, analyzes and
reports company information to give community decision-makers insight into the
dynamics of the local economy.
Hallenbeck said in the past, volunteers had conducted the survey. In utilizing a
high-level staff person along with new software to analyze the data, the AEDC's
goal was to add more value to the survey process by establishing a reliable
baseline for factual information to track economic growth and employment
numbers.
Focusing on a smaller business and industrial base than in past years, the 2007
survey targeted 60 companies representing more than 4,800 jobs in Ames, Story
City and Huxley to determine industry needs, concerns and the health of the local
industrial base - as well as to assess the opportunities and risks for retention and
expansion.
According to the report, more than two-thirds of the companies responding to the
survey cited a need for more employees in the near future, potentially adding
nearly 900 new jobs in the Ames area.
However, the projected job growth was coupled with concern about the
availability of both skilled and unskilled workers - ranked in the survey as the top
community weakness, Hallenbeck said.
Eighty-nine percent of respondents said they have experienced or are currently
experiencing recruitment problems.
John Russell, current AEDC board chair, said various barriers to employee
recruitment in the Ames area arise at all job levels. At the vocational and
technical level, for example, workers lack training, he said.
"The new Hunziker Center is a great collaboration to begin to address the votech needs in the future," he said.
Hallenbeck said the AEDC considers "growing the talent locally" a high priority.
"The conversation needs to begin right here in middle school and high school so
students know there's a niche in the economy for vocational and technical jobs,"
he said.
"If we've given the impression these are second-tier jobs; we need to correct
that," he said. Vocational and technical jobs are important to the community's
productivity and economic viability, he stressed.
There's work to do at the professional level as well, to attract and retain
employees, according to Hallenbeck.
For example, Iowa State University is turning out the engineers and information
technologists we need in our industry environment, he said, but the community
isn't doing a very good job of marketing the jobs in Ames that might keep them
here.
Hallenbeck said he intends to initiate a conversation with ISU about improving
the retention of graduates for the local workforce.
Russell said a perceived lack of amenities in Ames is also a factor in the
community's weak record for retaining college graduates and attracting workers
from the outside.
"In many ways, we're a city of 50,000 people with the amenities of a town of
25,000," he said.
The recent vote to build an aquatic center is a step in the right direction in terms
of amenities, said Russell.
According to Hallenbeck, survey respondents also cited the need for more fullservice, family-oriented restaurants, and better shopping options.
The survey report says in addition to adding jobs, the expected business and
industry growth could also generate as much as $180 million in capital
investment and an additional 416,000 square feet in facility expansion over the
next three years.
"While this information is positive, it should serve as a warning that existing,
available buildings and land are scarce as we continue to aggressively market to
new businesses," Hallenbeck said.
Russell said one of his goals as board chair is to make ready a fully-served
industrial or business park.
"By fully served, I mean all infrastructure and utilities would be in place.
Prospective companies often expect to be able to move in within six months," he
said. "Right now, we don't have an industrial park to serve them."
Russell said if plans proceed for the East 13th street mall, Wolford Development
would foot the bill for infrastructure extending to a prime site on the east side of
Interstate 35.
"If everything continues on course, we'll look for (Wolford) to start moving dirt
next spring."
Hallenbeck said he hopes everyone in the community will read the AEDC report
and respond with an attitude of "what can we do to get behind this positive
forecast?"
"There's a perception (according to the survey) that formal approval processes
take a long time in Ames. And there's also a perception that the community can
be divisive and shoot down good ideas without considering what can be done to
offer solutions for everybody's benefit."
Hallenbeck stressed, "We need a community that gets behind well-thought-out
growth.
A secondary concern listed in the survey responses was the forecasted return of
the Fair Share legislation, to be brought up again in the 2008 session.
The Fair Share legislation would give the public sector unions the ability to collect
dues from non-union members based on a federal law requiring them to
represent employees, regardless of whether they're union members.
"If the Fair Share legislation passes, it could throw a different set of issues on the
table for employers to have to deal with," said Hallenbeck.
But no issue is insurmountable, according to Hallenbeck.
"There's a tremendous opportunity for expansion of existing business and we
want to do everything we can to remove barriers to industries' growth."
With that goal in mind Hallenbeck named three priorities translating into action
items for the AEDC that emerged as a result of the survey.
"Workforce development, community planning and providing an active
business/industry program that's not just a once a year event," he said.
A full report can be found on the AEDC Web site: www.amesedc.com.