Utah Call Center Industry Profile
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- Jocelin Gallagher
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1 2009 Utah Call Center Industry Profile
2 Utah Call Center Industry Profile CALL CENTER INDUSTRY OVERVIEW Utah s call center industry continues to grow and play a major role in the development of the state. In addition to this, Utah has many customer service centers for local and national companies. Large call centers also continue to prosper in Utah, with total employment of telemarketers and customer service representatives reaching 31,310 according to the Bureau of Labor Statistics. UTAH CALL CENTER DENSITY 1 1 Source: Intellx, EDCUTAH, Demographics Now T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H
3 UTAH CALL CENTER INDUSTRY STRENGTHS Low cost of doing business and low cost-of-living Developed infrastructure, great bandwidth accessibility and vast selection of business service companies Young, talented, highly educated and growing workforce TELECOMMUNICATIONS INFRASTRUCTURE Internet Backbone The term Internet backbone was once used to describe the central network that linked all parts of the Internet together. Today, the term is used loosely to describe the core of the current Internet. The image below shows the location of the larger networks that inter-connect with each other and serve individual, local ISP s (Internet Service Providers) as clients. The local ISP s connect to one of the larger backbone networks and are then able to provide nationwide or worldwide connections. Salt Lake represents a larger backbone network. WAGE DATA The following tables provide Utah wage data for all regions in the state (where available). Overall, Utah offers very competitive wages for call center employees. Telemarketers Wage Data Region / Location* Average Hourly Wage Hourly Wage Range Average Annual Wage Annual Wage Range Box Elder/Rich/Cache Davis/Morgan/Weber $8.80 $7.40-$10.20 $18,330 $15,340-$21,120 $9.10 $7.90-$10.50 $18,900 $16,480-$21,750 Salt Lake/Ogden Area $9.20 $6.00-$11.00 $19,140 $13,680-$22,990 *Summit, Wasatch, Tooele, Utah, Iron and Washington counties and Central, Southwest and Eastern rural Utah wage data not available. Source: Utah Department of Workforce Services, Standard Occupational Classification UTAH CALL CENTER PROFILE
4 Customer Service Representatives Wage Data Region / Location* Average Hourly Wage Hourly Wage Range Average Annual Wage Annual Wage Range Davis/Morgan/Weber Summit/Wasatch $10.50 $8.10-$11.80 $21,840 $16,800-$24,630 $11.50 $8.80-$13.30 $23,830 $18,290-$27,640 Tooele County $12.80 $10.00-$14.40 $26,670 $20,710-$30,010 Eastern Rural Utah $12.60 $8.90-$13.80 $26, $18,440-$28,700 Iron/Washington $12.90 $9.70-$15.10 $26,740 $20,160-$31,380 Salt Lake/Ogden Area $12.10 $9.70-$13.40 $25,140 $20,120-$27,980 Provo/Orem Area $11.40 $8.90-$13.00 $23,800 $18,500-$27,110 *Box Elder, Rich and Cache counties and Central and Southwest rural Utah wage data not available. Source: Utah Department of Workforce Services, Standard Occupational Classification Office/Administrative s/supervisors Wage Data Region / Location* Average Hourly Wage Hourly Wage Range Average Annual Wage Annual Wage Range Box Elder/Cache/Rich Davis/Morgan/Weber Summit/Wasatch $16.20 $13.00-$19.00 $33,770 $26,970-$39,630 $20.00 $14.00-$24.80 $41,540 $29,110-$51,680 $18.50 $14.30-$20.90 $38,460 $29,660-$43,480 Tooele County $19.60 $14.50-$22.50 $40,650 $30,130-$46,780 Eastern Rural Utah $16.90 $12.00-$20.00 $35,180 $24,980-$41,670 Central/Southwestern Rural Utah Iron/Washington $15.60 $8.30-$19.50 $32,460 $17,-$40,620 $16.70 $13.50-$19.10 $34,800 $28,030-$39,680 Salt Lake/Ogden Area $20.30 $15.20-$23.90 $42,200 $31,600-$49,770 Provo/Orem Area $18.50 $13.80-$21.30 $38,480 $28,780-$44,250 *Central and Southwest rural Utah wage data not available. Source: Utah Department of Workforce Services, Standard Occupational Classification AVAILABLE PROPERTY Available Plug-n-Play Space Location Key Bank Building 1875 South Redwood Road Salt Lake City, Utah Total Available Space (Square Foot) 33,000 S.F. (Divisible) Quoted Lease Rate Available Parking $6.00 NNN 6.8 Spaces per 1,000 S.F. T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H
5 Available Buildings that can be Easily Converted* Total Available Space Location (Square Foot) International Plaza 5416 West Amelia Earhart Drive Salt Lake City, Utah Snow College Business Building 100 North 290 West, 2 nd Floor Ephraim, Utah 132,653 S.F. (Divisible into 30,000 S.F.) 17,000 S.F. (Three Separate Rooms) Quoted Lease Rate Available Parking $9.75 per S.F Spaces per 1,000 S.F. Contact Web Site: Spaces per 1,000 S.F. *Other convertible properties may be available. EDCUTAH can help in contacting local brokers for more convertible properties. BUSINESS INCENTIVES 2 Business incentives awarded in the state of Utah are based on job creation and wage requirements. Generally, incentives are awarded for new jobs paying 125% of the county median wage or higher. The financial strength of the company and track record are very important for incentive awards. Business incentives are rarely awarded for call centers locating in urban areas. In fact, the State of Utah has not awarded incentives to a call center in over six years. There are some state incentives that apply to call centers locating in rural areas if the wages meet wage requirements. The following provides a summary of these programs: EDTIF (Economic Development Tax Increment Financing) Approved in 2005, EDTIF is a new state incentive program allowing a partial tax rebate that applies to new state income generated by job growth and capital investment, including payroll tax for new employees, corporate income tax, and sales tax. All EDTIF incentives are evaluated and approved by the Governor s Office of Economic Development (GOED) Board. GOED focuses primarily on companies providing jobs paying 125% of the median county wage. Custom Fit Training Customized training to meet companies needs. State funds are available to subsidize training expenses (five hundred dollar cap per employee). Training conducted at local college campuses, Applied Technology Centers, or business locations. IAF (Industrial Assistance Fund) State of Utah Discretionary Fund IAF is a performance-based cash grant awarded for job creation. Different qualifications exist for urban and rural Utah areas. Urban IAF assistance is tied to the creation of jobs that pay 125% of the county median wage or higher. Companies must create at least 50 new jobs. Companies must be in one of the following target industries: biomedical, finance, technology, aerospace, or be a corporate headquarters. Rural IAF assists companies looking to expand to rural areas in Utah. IAF assistance may be given to companies in rural areas creating any number of new jobs.. Amount of IAF assistance is based on the number of new jobs created. 2 Source: Governor s Office of Economic Development (GOED) UTAH CALL CENTER PROFILE
6 Urban Utah Median Wage Requirements County 2005 Median Wage 125% of 2005 Median Wage Davis $23, $29,125 Salt Lake $28,600 $35,750 Utah $22, $27,875 Weber $21,500 $26,875 Source: Governor s Office of Economic Development (GOED) Rural Utah Median Wage Requirements County 2005 Median Wage 125% of 2005 Median Wage Beaver $17,800 $22,250 Box Elder $18,900 $23,625 Cache $18,000 $22,500 Carbon $18,600 $23,250 Daggett $21,500 $26,875 Duchesne $20, $25,375 Emery $19,600 $24,500 Garfield $16,400 $20,500 Grand $16,900 $21,125 Iron $18,700 $23,375 Juab $18,600 $23,250 Kane $16,900 $21,125 Millard $18,400 $23,000 Morgan $20,400 $25,500 Piute $13,100 $16,375 Rich $17,000 $21,250 San Juan $18,400 $23,000 Sanpete $19,900 $24,875 Sevier $19,000 $24,875 Summit $26,200 $32,750 Tooele $21,500 $26,875 Uintah $21,200 $26,500 Wasatch $23,800 $29,750 Washington $20, $25,375 Wayne $15,100 $18,875 Source: Governor s Office of Economic Development (GOED) Enterprise Zones Designated on a countywide basis for counties meeting specified criteria. Eligible businesses locating or expanding to Enterprise Zones may receive the following corporate income tax credits: o $750 for the creation of each new job during the tax year. o An additional $500 credit for the creation of each new job paying at least 125% of the county s median wage. o An additional $750 credit for the creation of each new job adding value to agricultural commodities through manufacturing. T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H
7 o 25% credit on the first $200,000 invested in rehabilitating a vacant building. o Annual 10% credit on the first $250,000 investment and 5% on the next $1 million investment in plant, equipment or other depreciable property. All businesses are eligible for tax credits except construction, retail businesses and public utilities. The following counties have designated Utah Enterprise Zones: Box Elder, Carbon, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, Rich, San Juan, Sanpete, Sevier, Tooele, Uintah and Wayne. Designated Enterprise Zones in Utah UTAH CALL CENTER PROFILE
8 Property Tax Inducements (Tax Increment Financing) EDA/RDA (Economic Development Area/Redevelopment Area) districts are determined by local municipalities. This incentive offers a partial property tax rebate for new construction projects. Available increment 80% over 15 years. New property tax monies are returned to the developer/owner in the form of infrastructure development, land cost write down, or other appropriate means. RECENT CALL CENTER ECONOMIC ACTIVITY 3 Call Center Expansions Organization Location # of New Jobs Year of Expansion Alorica, Inc. Magna Alpine Access Home-based Compucredit Call Center Salt Lake City Delta Airlines Salt Lake City eco.marketing Inc. Kaysville Qwest North Logan Qwest Salt Lake City Sento Corporation American Fork Teleperformance USA Lindon Verizon Wireless West Valley City Call Center Contractions Organization Location # of Lost Jobs Year of Contraction American Express Salt Lake City Convergys Corporation Salt Lake City / Ogden Call Center Relocations Organization Location # of New Jobs Relocation Date Millenium Teleservices Salt Lake City 100 May 2005 L3 Communications Salt Lake City 400 June 2004 Qwest Salt Lake City 175 August 2003 Verizon Wireless West Valley City 600 February 2003 Call Center Closures Organization Location # of Lost Jobs Year of Closure JC Penney Telemarketing Bountiful Providian Salt Lake City Southwest Airlines Salt Lake City Source: Economic Report to the Governor, 2005 edition, 2004 edition, 2003 edition Source: EDCUTAH, Fiscal Report , T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H
9 LARGE UTAH CALL CENTERS Rank Organization Contact # of Call Center Employees Convergys Corporation West 4400 South Ogden, Utah ACS Business Process Solutions West Parkland Drive Sandy, Utah Teleperformance USA South 4650 West Salt Lake City, Utah Discover Financial Services, Inc Lake Park Boulevard West Valley City, Utah Discover Financial Services, Inc South Sandy Parkway Sandy, Utah Wells Fargo / MCI South Main Street, 10 th Floor Salt Lake City, Utah JetBlue Airways 7 P.O. Box Salt Lake City, Utah Fidelity Investments East 400 South, Suite 200 Salt Lake City, Utah Verizon Wireless South Corporate Parks West Valley City, Utah ebay, Inc West Election Road Draper, Utah American Express Service Center South 2700 West Salt Lake City, Utah Sento Corporation East South Temple, #400 Salt Lake City, Utah Delta Air Lines Reservation Center West 1200 North Salt Lake City, Utah Alorica, Inc West 3500 South Magna, Utah Focus Communications, Inc East 26 th Street Ogden, Utah InterContinental Hotels Group West 2240 South Salt Lake City, Utah Western Watts East Timpanogas Parkway, #M Orem, Utah Tahitian Noni Riverpark Way Provo, Utah Feature Films for Families South 320 West, Suite A116 Murray, Utah Kevin Mansfield HR Director (801) Mark Heugly V.P. Teleservices (801) Roy J. Prasad V.P. HR (801) Linda Llewelyn HR (801) Mike Farris VP (801) Robert Hatch President/CEO (888) Frankie Littleford Executive Director (800) Ed McCartney CEO (801) Robert Wadman HR (801) Carol Dombrowski Corp. Comm. (801) Henry Autry President (801) Patrick O Neal President/CEO (801) Norm Andrews Director (801) Luanne Simmons (801) Don Markland Director of Marketing (801) Chuck Kruvanic HR (801) Greg Graul COO (801) Mike Fitzsimmons (801) Forrest Baker President/CEO (801) ,000 3,000 3,000 2,400+ 1,500 1, 1,029 1,000 1, UTAH CALL CENTER PROFILE
10 America Online (AOL) 2261 Grant Avenue Ogden, Utah MyFamily.com 360 West 3800 North Provo, Utah Ingenix 2525 Lake Park Boulevard Salt Lake City, Utah NuWays 2089 Neways Drive Springville, Utah Marriott Guest Services (MVCI) 310 West Bear Cat Drive Salt Lake City, Utah Dentrix 727 East Utah Valley Drive, #500 American Fork, Utah Musician s Friend 180 West Election Road Draper, Utah Contacts 65 East Wadsworth Park Drive Draper, Utah Alamo Rent-A-Car 155 North 400 West, Suite 200 Salt Lake City, Utah Advanta Bank Corporation South Election Road Draper, Utah Continental Airlines 2445 West Jetway Avenue Salt Lake City, Utah Nu Skin Enterprises, Inc South 250 East Provo, Utah O Currence Teleservices 1785 South 4130 West, Suite 0 Salt Lake City, Utah PGM, Inc. 581 West 1600 North Orem, Utah Sundance R.R. #3 Box 1-A Provo, Utah Twinlab Corporation 600 East Quality Drive American Fork, Utah Discovery Research Group 6975 Union Park Center, Suite 450 Midvale, Utah Novell, Inc South Novell Place Provo, Utah Comcast 9602 South West Sandy, Utah IOMEGA Corporation 1821 West Iomega Way Provo, Utah Mike Stitzmiller General (801) Christo Tracy V.P. Member Services (801) Kevin Pearson CEO (801) Michael Cunningham CEO (801) Ron Essing V.P. Owner Services (801) Kimball (801) Rob Eastman Founder (800) Jonathon Coon President (801) Louis Givvons HR (801) Greg Munsen President (801) Marion Mason Regional Director (801) Mike Theuker Senior Director N.A. Ops (801) Carla Meine President/CEO (801) Bill Gammell Client Services (801) Eric Cather General (801) Tim Schaafsma Operations Officer (800) Vaughn Mordecai (800) Geoff Sackman Organization (781) Steve Proper (801) William Lesko (801) T H E E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N O F U T A H
11 UCN Incorporated South Pony Express Bluffdale, Utah BurrellesLuce West 820 North Provo, Utah Clarke American West 2400 South West Valley City, Utah Franklin Covey Corporation West Parkway Boulevard Salt Lake City, Utah Trend West East Draper Parkway Draper, Utah IKANO Communications North Charles Lindbergh Drive Salt Lake City, Utah USANA Health Sciences West Parkway Boulevard Salt Lake City, Utah The Marketing One South State Street Salt Lake City, Utah McLeod USA East Cottonwood Parkway Salt Lake City, Utah Nature s Sunshine Products 49 P.O. Box Provo, Utah Questar Gas Company 50 P.O. Box Salt Lake City, Utah Source: Intellx, EDCUTAH Tim McMullin V.P. (801) Anne Soumphonphakdy VP (801) Cynthia Tai Director (801) Chris Mansfield (801) John Wilkinson (801) Todd Krause Director (801) Mark Wilson V.P. Customer Relations (801) Sam Hooper V.P. Operations (801) Cathy Joiner HR (801) Douglas Faggioli President/CEO (801) Craig Wagstaff President/CEO (801) FOR ADDITIONAL INFORMATION The Economic Development Corporation of Utah 201 South Main Street, Suite 2010 Salt Lake City, Utah Phone (801) Fax (801) UTAH CALL CENTER PROFILE
12 201 South Main Street, Suite 2150 Salt Lake City, Utah Phone Fax
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