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Industry Focus: ELECTRONICS

High-Tech Worker Pool Sparks 

  [ 11/1/1999 ]  By: Lance Yoder   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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The car, with mom driving and three kids in the back seat, screeches to a stop at the gas pump. 

Mom removes the fuel cap, reaches into her pocket and pulls out the credit card. She inserts and removes the card quickly into the pump, fills the car, collects the receipt, and is on her way home, all without ever stepping foot into the station.

Ten years ago, such an idea was folly. But if there’s one constant in the industry, it’s change. 

“It used to be, when you thought of electronics, you thought of Silicon Valley,” said John  Hatch, director of media relations for the American Electronics Association. “It’s more a state of mind now. Places like Texas, Georgia, and really everywhere are seeing more electronics companies.”

One of those “everywheres” is Fort Wayne, Ind., where Tokheim Corp. manufactures gas pumps, including the pay-at-the-pump systems millions of Americans use each week. 

“We’ve always been in Fort Wayne,” said Tony Adamson, director of marketing for Tokheim. “The thing that’s allowed us to stay here is a work force. They know how to do the job.”

“We have a number of employees who have been here for 30 to 40 years. We provide them with updated training, but if you have good people, they can adapt.”

Tokheim is adding 120 jobs and providing additional training for 457 current employees in an $11 million expansion. Many of the new employees will work on Tokheim’s latest product, which will allow gas pumps to connect to the Internet.

In a joint venture between BP Amoco and Tokheim, customers at the pump would be able to purchase items and services through the Internet via credit card while pumping gas. The pumps, which will also offer other new options to customers, should appear in U.S. cities in early 2000.

Another company that attributes its success to its work force is Pelco, in Clovis, Calif. Pelco makes closed circuit television surveillance equipment and is adding 500 jobs. 

The company’s new 100,000 square foot building is scheduled to open later this year.  Pelco has the largest closed circuit video manufacturing campus in the world.

“I think the way we treat our employees is a big part of it,” said Dave McDonald, president and CEO of Pelco. “There is a plentiful and willing supply of workers in the Fresno-Clovis area.”

In Ontario, Calif., the pieces are in place for technology companies. Ontario has one of Southern California’s oldest airports, and aerospace companies have a longstanding presence in the area.

The region is also home to a groundbreaking degree program. At nearby Claremont College, students can now earn a master’s degree in e-commerce, the first of its kind in the country.

Pieces to the puzzle

Tokheim’s work force underscores one of the essential ingredients for any electronics company. But it’s not the only one. Look where the electronics industry is growing, and common denominators emerge.

“The infrastructure must be in place for electronics growth,” said Hatch. “By that, I mean good universities and colleges in the area, affordable housing, a good highway system and easy access to an airport.”

The cost of living and school system in Clovis helped Pelco retain workers and grow. “We’re in the central San Joaquin Valley, so our cost of living is a little different than some other places in California,” said McDonald. “When we recruit some of our management people from Los Angeles or the Bay area, they realize they maybe can live a little better here.

“The price of living here is a little more like the Midwest than the West Coast.” Getting its product from the San Joaquin Valley in California to locations around the country and world is important for Pelco.

“Transportation is a plus,” said McDonald. “We ship by air, highway and also some ocean containers. Most of the large trucking companies are in the area, and we are adjacent to the airport in Fresno.”

While many electronics companies are expanding to new sites, others, including Phillips Communication and Security Systems, are expanding locally. The firm, in Lancaster County, Pa., is adding 60 jobs to its work force of 380 and is building a 213,000 square foot manufacturing plant. 

The state of Pennsylvania offered Philips a $930,000 incentive package.  Mexico is also proving to be a popular spot for electronics companies. IBM and Motorola are just two of the businesses that have set up in Guadalajara. Suppliers are following the larger companies.

To help meet the demand for space, an industrial park is being constructed by the Development Corp. of America, which is building a 500-acre park scheduled to open in the first quarter 2000.

“There is a main east-west rail line right in front of the park,” said John Mankus, managing director of Development Corp. “There is also a commuter rail line running from downtown Guadalajara to the park. 

“We’re just three kilometers (about 1.5 miles) from the main loop highway that runs around Guadalajara and 35 kilometers (about 21 miles) from the airport.” 

 

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