November 2003

By James Beatty, NCS International, Inc.

There are several smaller communities in the U.S. that should receive serious consideration as sites in which to locate and grow your call center. I have repeatedly gone on record as stating unequivocally that communities under 50,000 in population can offer great locational advantages for customer service operations. The reasons these communities do not receive a great deal of consideration are twofold. First, they do not typically show up in the initial client site selection screening criteria because of their size. Second, many customer service operations are misinformed about the opportunities that abound in these areas.

I therefore request that if you are looking for new locations for contact center activities, please consider investigating the possibility of smaller communities as they can be exciting places to grow, and they make excellent business partners.

Burlington, Iowa, located on the banks of the Mississippi River, is one community that should be on your short list.

Here's why!

Two For One
The Greater Burlington area includes Burlington and West Burlington. Thanks to the Economic Development Division of the Chamber of Commerce serving this area, I had a chance to visit both of them. I discovered first-hand that this community is ready and willing to deal in order to recruit the customer service operations that make the most sense and are best for their community.

Population And Labor Force
The Greater Burlington area is located in Des Moines County, which has a population of 41,458 and a labor force of 23,510 people. However, the laborshed, meaning the region from which the Burlington area draws its commuting workers, is comprised of an astounding 115,372 people. The 2003 analysis which was conducted by the Iowa Labor Market Information Bureau provides some very revealing facts.

This area was determined using ZIP code information regarding where employees reside as supplied by local employers. Burlington had 51 ZIP codes in Iowa and Illinois (just across the bridge) included in its laborshed.

In fact, an analysis of the laborshed determined the following:

' 31.9 percent are willing to change employment for the right opportunity,

' 61.7 percent have education/training beyond high school,

' 23.4 percent would consider varied shifts or split shifts, and

' 15.3 percent commute to locations outside of the Greater Burlington area for employment.

In fact, these out-commuters are willing to travel an average of 27 miles one way for the right opportunity. One particular finding which is especially noteworthy for CRM operations was that the current labor force desires job sharing, team work environments and cross-training work arrangements. I'm sure you'll agree that this attitude is tailor-made for customer service operations!

All in all, the data suggest that there are ample workers available for any customer service operation considering the area.

Underemployment
The laborshed analysis also determined that 6.4 percent are underemployed. I am certain that you have heard the term 'underemployed' previously. Following is an analysis of what it means in quantifiable terms.

Persons that are underemployed will be in one of the following four categories.

Category 1: Those working less than 35 hours per week on average.

Category 2: Those working at wages equal to or less than the national poverty level.

Category 3: Those working in positions that do not meet their skill or education levels.

Category 4: Those who previously worked for wages higher than their current employment.

This again suggests the availability of qualified workers for employers.

Education
There are over 1,500 students in high school in the area. The average ACT score is 22.7, which compares favorably to the U.S. average of 20.8.

Southeastern Community College serves the area and is utilized by the business community for initial and ongoing employee training. There are 1,700 students from 40 companies enrolled in courses at the college. The college's Center for Business and Industry can design appropriate training to meet a company's specific needs.

The University of Iowa, Iowa Wesleyan, Western Illinois and Monmouth College meet the needs of higher education.

Wages
The median current wage in the laborshed is $9.50, with $13.66 to $14.65 cited as the range to attract the most qualified individuals. Here are some occupational titles and hourly wage data regarding customer service positions in the laborshed area.

Occupational Mean Entry

Title Wage Wage

Bill and Account

Collectors $9.57 $8.17

Customer Service Reps $11.24 $8.88

First Line Supervisors $17.30 $12.46

Insurance Claims Clerks $14.08 $10.08

Information Clerks $8.29 $6.79

Office Clerks $8.79 $6.84

Accounting Clerks $9.57 $8.17

Source: Occupational Employment Statistics 2002

Available Space
I viewed several spaces that would make excellent customer service centers. There were facilities available of 52,000 square feet to 66,000 square feet, with parking spaces that would exceed eight per 1,000 easily. These facilities could easily be subdivided and retrofitted in 90 to 120 days or less, based on client requirements.

In a recent effort by the community to attract a customer service operation, space was being made available at $1.71 per square foot triple net. Newer space is available in the Flint Ridge Business Park with construction costs in the $85 to $100 per square foot range. Multiple T-1s are available at the existing and the newer sites. Commercial electrical power is available at rates as low as 4.2 cents per kilowatt hour through Alliant-Energy.

Telecommunications
The local telephone providers include McLeod Inc. and Qwest. The central office is a digital 5ESS switch. Fiber is used for local service and long-distance service. Network services include availability of SS7, ISDN, T-1 and up to DS-3. McLeod and Qwest each have a point of presence (POP) in Burlington. AT&T and MCI have POPs located within 75 miles. (These costs could be mitigated through an aggressive incentive program from the community.) There are SONET fiber rings available in southeast Iowa and customers can build their own self-healing rings and pay for dark fiber.

The Chamber has initiated an Information Technology (IT) Committee to stay informed of IT needs in the area and to address key issues.

Current Call Center Operations
APAC operates a 120-person outbound call center in which 40 percent of the employees are full-time workers. There are some in-house customer service operations in the area as well. There is ample room for growth for additional call centers.

Incentives
The area has several financial assistance programs available to serious prospects. In particular, the Burlington Area Development Fund, which is used to motivate employers to the Flint Ridge Business Park, is also willing to provide incentives in the form of forgivable loans to businesses if a certain number of jobs are added at targeted hourly levels and sustained for at least five years. The area is willing to go up to $625,000 for the right customer service operation if the jobs can meet or exceed $12.50 per hour plus benefits. This does not amount to buying jobs, but the area is strenuously stepping up to the plate to help attract and maintain quality jobs.

Is the Burlington area for your customer service operation? The best way to discover more is to contact the Economic Development Group at the Chamber of Commerce. Visit www.growburlington.com or call them at 800-827-4837.

My thanks go to my hosts at the Burlington/West Burlington Chamber of Commerce for a most informative and exciting visit. For more information, contact me at [email protected] and visit my Web site www.callcentersites.net for the latest official word on call center and back-office location information worldwide.

For information and subscriptions, visit www.TMCnet.com or call 203-852-6800.

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