The total company count was down from 2008-09, which saw 17 companies move to or expand in the area. These companies created 743 jobs, with 450 of these created by AT&T Nevada and The Hartford Financial Services Group opening new customer call centers in Reno.
In 2009-10, the 11 companies included six new companies and five expansion projects representing 1.2 million square feet of office and industrial space leased or purchased and nearly $77.6 million in economic impact to the region from the companies’ combined employee payroll, new taxes and capital investment.
It is estimated that as a result of the 11 new and expanded companies to the region this fiscal year alone, the companies and their employees will pay an estimated $3.7 million in Washoe County taxes their employees will give an estimated $456,870 in charitable donations and cash contributions to local organizations.
“The economic slowdown was felt this past year throughout Reno-Tahoe and outlying communities with prospective companies having a tougher time of getting credit and financing for their relocation,” said Chuck Alvey, president and CEO of EDAWN. “The companies we’re talking to want to move their business and Reno-Tahoe is on their radar, but they’re waiting to see how the economy recovery unfolds before they make a move.”
The region continues to see strong interest from companies primarily from California. About 29 percent of EDAWN’s prospective companies come from the Golden State. The second largest prospective business sector comes from the Midwest with 25 percent of all inquiries. Following these are the northwest at 14 percent, the East Coast at 14 percent, international business at 7 percent and the remaining companies coming from Nevada and undisclosed regions.
In partnership with other regional economic development groups, EDAWN’s three-pronged economic diversification strategy to stimulate job growth and economic stability in the coming year, includes:
Out-of-market company recruitment targeting growth industries including clean energy, logistics and distribution, and manufacturing.
Assistance to companies that inquire about relocating or expanding in the region, including coordinating tax, training and other state incentives programs for which prospective companies may be eligible.
Expansion and retention of existing companies that may be courted by other states to consider leaving the area.
“This fiscal year is off to a solid start with EDAWN and our partners working about 40 qualified company projects representing upwards of 3,000 new jobs that have the potential of coming online in the next 12 months, including a significant logistics and distribution center that would employ about 500 at start-up,” Alvey said. “Economic diversification is a community-wide effort and our focus is collaborating to create jobs and get people back to work as soon as possible.”