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In
January of 1999, the economy was very robust and there was speculation
that "it can't go on forever." We've completed the first
full quarter of 2000, and in spite of Mr. Greenspan's efforts, the
nation continues to grow at a very strong level and set records for
the lowest levels of unemployment in 30 years.
The expanding
economy continues to drive new business formations and growth of existing
companies, which has continued to put pressure on the labor force.
In this
column, we'll examine the supplier of the labor - the community -
and the mindset that has evolved within these markets during this
boom time.
A new phenomenon
that is developing at the community level, which may be of particular
relevance to readers of this magazine, is the challenge the communities
are facing in balancing growth with the supply of labor to fill the
positions created by the growth.
There is
an attitude developing in many communities across the nation that
they don't want any business type that does not pay top wages. It
appears that the high demand for labor is being viewed as an opportunity
to accommodate only the highest paying employers offering the highest
skilled jobs in the marketplace for their community.
While this
is commendable on the surface, it is inconceivable that every worker
in the community is qualified for a high-tech job, or in many cases
capable and willing to be trained as a high-tech, or high dollar,
worker.
With few
exceptions, communities across the nation all have workers with skill
levels that run the gamut from low-skilled to the highly-skilled.
These low-skill
workers need employment as well, and communities may be overlooking
good job opportunities for these people on the premise of securing
high-skill, high-paying jobs, which they may not be capable of filling.
These continue
to be challenging times for both the companies and the communities.
As noted before, the companies must continually reassess their wage
and benefit policies to be competitive in the marketplace for the
skill levels needed to meet their business needs.
However,
the bigger challenge now seems to be with the communities to make
intelligent decisions about how to balance the available jobs to the
community's population and limited work force.
It is important
that this success derived from the historic economic boom not be taken
as the standard for the future. There will be a change at some point
in the future and
communities must be ever mindful
of that situation.
Part of
your analysis today should include some thought of how your company
will fare in the future and can it withstand a major or minor downturn
in the economy?
Your company's
ability to make it through some rocky times can make you more attractive
to communities under consideration for your expansion.
Communities,
site location professionals and companies must work closer together
than ever before to meet these challenges. These are prosperous times,
but all of these entities must strive to make sound long-term decisions
that are best for all parties.
Gil Mayfield,
P.E., is a vice president with Carter and Burgess Inc., a national
consulting firm. Mayfield serves as director of Real Estate Services.
You can reach him at (817) 735-6708.