Arkansas Blog: The news in Conway

Hewlett-Packard will open a service and support center there. The Conway Corp. will build the building and lease it to H-P, which also announced a similar center in New Mexico. This growth comes as the company is reorganizing and downsizing some other facets of its operation.

From John Williams, who was there: No specifics on the nature of the jobs, but Gov. Mike Beebe said many will pay $40,000 a year to start and perhaps more. Employees will need to be "IT literate" and have other skills.

"It represents the kind of investment in human capital that we strive for," Beebe said.

Beebe provided $10 million from the governor's quick action fund, which is now just about depleted. He said he'd ask for more in 2009. That money will pay for infrastructure for the new $28 million, 150,000-square-foot building, on 12 acres.

Three other cities in Arkansas were in the running for the site, along with maybe two dozen other cities nationwide in a competition that began in February. What made the difference? No specifics immediately forthcoming.

Jobs could begin sometime in 2009. It will take four years to get up to 1,200.

A huge crowd appeared for a general announcement and provided several standing ovations. This was followed by a smaller press gathering at which more details were offered.

Jobseekers should contact the Conway Chamber of Commerce, not H-P.

UPDATE: Roby Brock at Talk Business had a long interview with the governor about the process that led up to the announcement. The prediction in the article is that these jobs will lure people from out of state. It's certainly less expensive in Conway than Silicon Valley.

We have a brief clip from the announcement in our video slot on the home page.

ADEC NEWS RELEASE

HP to Locate Service and Support Center in Conway

1,200 Jobs in IT Industry

CONWAY, Arkansas (June 19, 2008) – HP, one of the world’s largest IT companies, today announced plans to locate a state-of-the-art customer service and technical support center in Conway. The center will employ as many as 1,200 people in highly skilled technical positions.

A simultaneous announcement was held in Rio Rancho, New Mexico, for a second center.

“HP is delighted to be creating these new centers in cooperation with the communities in Conway and Rio Rancho,” said Jon Flaxman, HP executive vice president and chief administrative officer. “With these new facilities we expect to improve processes and achieve efficiencies that will help us continue to improve the total experience for our growing number of customers.”

The center will provide sales, service and technical support for the company’s broad range of customers.

The Conway Development Corporation will construct a $28 million, 150,000 square foot building and lease it back to HP. The facility will be located in The Meadows, the Corporation’s 181 acre office and technology park in southern Conway.

“HP conducted a nationwide search and chose Conway as one of the locations based on multiple factors, including the quality of the workforce, business environment, standard of living and government cooperation,” said Gary Fazzino, HP vice president, government affairs.

Governor Mike Beebe said HP fits perfectly into the state’s target industries.

“This historic announcement for Conway and Central Arkansas demonstrates the new direction of Arkansas’s 21st-century economy,” Beebe said. “This is both a significant investment in our state providing high-quality, well-paying jobs and marking the beginning of a partnership between Arkansas and one of the global leaders in Information Technology.”

“Conway has been shaping itself, transforming, directly preparing for this day for years,” said Conway Mayor Tab Townsell. “To have those efforts recognized and appreciated by a company like Hewlett-Packard is incredible. Today’s announcement is that work realized.”

Comments

Viva Conway!
Viva HP!
Viva Arkansas!

Posted by: durangokid | June 19, 2008 01:00 PM

Watch closely to see if the Johnson Brothers get any additional business out of this new project. Coincidence or not, they were, under less than open circumstances, awarded a contract to lay fiber optic cables in the area and extending into their home county.

Any question that the two very powerful senators who are also staunch allies would have a hand in this type of project?

Posted by: Sam Tilden | June 19, 2008 01:16 PM

Support and service center = call center

Posted by: JD | June 19, 2008 01:41 PM

Lure people from out of state? These are mid-level to entry level with a bachelors degree and HP product training jobs that can be filled from local talent pool. If we can't fill these we're in deeper trouble than we think. 50k is not going to get anyone
to of people moving to Conway from Silicon Valley. Great win for Conway and the Gov and his peeps. But let's keep this in perspective. These are not high-end cutting edge, "knowledge economy" tech jobs. They are good, solid meat-and-potatoes tech support jobs.

Posted by: IABL1969 | June 19, 2008 01:58 PM

Still good for Arkansas and the local economy but these are lower skilled and lower paying jobs than those at Alltel's IT department. I suspect most of them, along with a good chunk of the rest of the corporate offices, will be heading out of state for employment in the next year or so.

Posted by: Moxiemoron | June 19, 2008 02:15 PM

"Support and service center = call center"

What's wrong with a "call center" as long as the jobs pay well?

There's a huge difference in a "call center" where unskilled people provide customer service and a "call center" that provide technical support by skilled workers.

Posted by: Meet John Doe | June 19, 2008 02:16 PM

On a thread earlier today related to the HP announcement we learned that Conway has a Dairy Queen. Let's not underestimate the allure the Lemon-Lime Mister Misty may have had on this. Yes. when the temp tops out over 90 they are that good.

Watch for the brain freeze. It's quite painful. Good pain though.

Posted by: IABL1969 | June 19, 2008 02:29 PM

"What's wrong with a "call center" as long as the jobs pay well?"

Nothing really, but I think it's in response to something said in the original post:

"Arkansas Business identifies an office park as the site of the facility and says the jobs will be good ones, not call-center type. Beebe will open the corporate welfare kitty, naturally. The news is welcome given uncertainty about the future at Alltel and Acxiom."

Posted by: Moxiemoron | June 19, 2008 02:31 PM

40-50k for technical support jobs is not bad at all. These are not programmers, no.

Posted by: Meet John Doe | June 19, 2008 02:32 PM

"Call center type" would be like regular customer service jobs as opposed to technical support.

Technical support positions at Alltel and Acxiom don't pay more than these.

Posted by: Meet John Doe | June 19, 2008 02:36 PM

from the talk biz article:

Allison Nicholas, a human resources manager with Acxiom, analyzed the criteria put forth by the company to assess workforce recruiting. Her assessment, according to Thompson: "With salaries like this, you're not going to have a problem. You're going to pull not just from Arkansas, but from out-of-state."

James Hendren, founder of ArkSys, a software firm started in state and now known as Euronet, agreed that outsiders will be attracted to HP jobs in Arkansas.

Posted by: Meet John Doe | June 19, 2008 02:40 PM

I swear to God, if Boeing announced tonight that it's moving both Chicago corporate HQs and Seattle aircraft production to Little Rock, some people would still whine. Lighten up, y'all, and bask in the good news.

Posted by: durangokid | June 19, 2008 04:19 PM

Guess this explains why Mayor Townsell's assistant Jamie Gates (both old Sig Taus from Conway) just left as the mayor's assistant to work for the Conway Development Corp. Just a coincidence that he left a couple weeks ago, I guess. Had nothing to do with this deal, I'm sure.

Wonder where the job announcement for his postition at CDC was posted and I wonder how many qualified folks applied. Just wondering, though.

Posted by: calmwriter | June 19, 2008 04:52 PM

Arkansas Blog

The news in Conway

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