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Harsh Climate
By David Wexler
Staff Writer
While John O'Neil is enjoying his best year in the 25-year history of Century Bank, finding and retaining a quality work force is a different story.
Many of Century Bank's 130 employees reside outside Sarasota and Manatee counties and in Englewood, Arcadia and North Port - as far as 100 miles from the bank's operations on Fruitville Road. It's gotten so bad that O'Neil is contemplating moving the bank's back-office operations closer to Interstate 75 to make its location more convenient and attractive to prospective employees. O'Neil already offers signing bonuses for positions that are in high demand.
"This is one of the few challenges that we have faced this year, and I think it's been exaggerated in the last 12 to 18 months," said O'Neil. "A young married couple making $30,000 to $40,000 apiece can't afford a start-up home of $300,000, nor can they afford the kind of rents that are being commanded today. If you're single, there's literally nothing available."
O'Neil is not alone in this worry. The Sarasota County Economic Development Corp. revealed earlier this month that workforce and affordable housing were the top business issues concerning businesses in the area, as well as cost of living and taxes. The EDC surveyed 150 Sarasota County businesses to determine the top issues facing business leaders. The results are being used as a baseline to measure progress made toward improving the business climate over the next several years.
The EDC survey also cited improvements in three of its four long-term goals:
• The number of so-called value-added jobs as a percentage of total jobs increased .5% between 2003 and 2004. "Value-added" refers to the jobs in companies that sell most of their goods and services outside the local market, bringing new wealth into the community. These jobs tend to pay higher wages than the county average. As of 2004, 24.27% of total jobs in the area were value-added jobs; the EDC's target is 35%
• Sarasota County's average wage compared to the state's average improved 1% in the same period, bringing local wages to within 5.3% of the state average. The average wage in Sarasota County is $33,355, compared to the state average of $35,110. EDC President Kathy Baylis said the EDC is closing the gap because of two key factors: the increase in value-added jobs and the competition for good employees. "In response to workers having difficulty finding housing and also just the tight labor market and employers needing to be a little more competitive, I've definitely seen a little upward pressure in the wages," Baylis said.
• The percent of earned income to total personal income increased 5%. Total personal income includes earned income, transfer payments and investment income.
Baylis said the EDC's fourth long-term goal, increasing the percentage of the commercial/industrial tax base, is not faring as well. Over the past year, residential construction outpaced growth in commercial development, resulting in a lower percentage of commercial to residential in the tax base.
The EDC is taking an active role addressing each of the issues, particularly the affordable and workforce housing issue. EDC members serve on the Workforce Housing Coalition, a group focused on creating more affordable housing in Sarasota and Manatee counties. The EDC specifically is working to create employer-assisted programs for its Sarasota-based employers. It is cataloging employer-assisted programs that are used in other communities, such as a down-payment assistance program and loan guarantees. The EDC plans to market these programs via a Web site or CD.
KEY FINDINGS OF SARASOTA BUSINESS CLIMATE SURVEY
Major concerns for business in Sarasota County: affordable housing, worker availability, the overall cost of living, regulatory environment and taxes.
What business likes best: good education system, low crime rate. They particularly like the community college system.
Other positives: availability of financing, communication and transportation systems. The biggest transportation concern is roads.
Health insurance far outdistances businesses' concerns about direct costs.
Public transit does not seem to be an issue for most businesses.
Businesses are moderately well satisfied with the county business climate and tend to believe it is better now than two years ago.
SNAPSHOT OF WAGES, JOBS IN SARASOTA
The number of value-added jobs as a percentage of total jobs increased 0.5% between 2003 and 2004.
As of 2004, 24.27% of total jobs in the area were value-added jobs; the EDC's target is 35%.
Sarasota County's average wage compared to the state's average improved 1% from 2003 to 2004. It is now within 5.3% of the state average.
The average wage in Sarasota County is $33,355, compared to the state average of $35,110.
The percentage of earned income to total personal income increased 5%.
HOW THEY RATED THE BUSINESS CLIMATE
Rating Score % of businesses
Very Satisfied 4 7%
Satisfied 3 47%
Somewhat satisfied 2 41%
Not at all satisfied 1 5%
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