Homeshoring Lincoln Plan
Video: Chris Beutler media conference announcing his plan to homeshore more jobs to Lincoln.
this player.
Chris Beutler Homeshoring Remarks - March 29, 2007
People across the United States are familiar with Bangalore, India. And not because they have traveled there. No, they know Bangalore, India because so many American companies have chosen to locate there. Most notably, Dell Computers had call center operations there for many years. California’s famous Silicon Valley continues to bleed jobs as high tech companies send software application development work, and other technology projects, overseas.
As Mayor, I would raise this question, “Why Bangalore? Why not Lincoln?”
That question could affect the economic development future of our city.
Everyone is aware of the term, “offshoring” the trend of sending U.S. jobs overseas to take advantage of lower costs. Lincoln has witnessed its effects over the last decade.
However, a new trend is rising and bringing with it unparalleled opportunity for Lincoln. “Homeshoring” is bringing U.S. companies home that have found the overseas experience to more expensive and more challenging then they originally believed. And many companies are choosing not to leave at all, but rather to find the advantages in the U.S. they thought they could obtain overseas. Home shoring offers businesses another choice to avoid the hidden costs of off shoring, such as language gaps, lack of intellectual-property protection, long travel times, awkward time schedules, infrastructure vulnerability, political risks and increasingly high employee turnover.
A great example of this trend is the Verizon call center. They chose Lincoln for their customer service operations rather than take the risks associated with an overseas investment, creating over 800 new jobs in our community.
Lincoln offers many advantages including low cost housing and a low cost of living for employees. Lincoln’s average price home of $130,000 gives us tremendous advantages over larger urban areas. Our high level of education and strong work ethic are other advantages.
High tech companies and call centers can depend on our highly skilled, hard working employees. We are a University town and students are highly sought after as communications and high tech workers. I voted for the Nebraska Advantage Act, a cutting edge tax incentive program that companies can use to keep their costs low. In short, we can do it better, we can do it more cost effectively, and we can do it without the language barriers associated with working overseas.
The Angelou study of Lincoln recommended five focus areas for our economic development efforts. One target area was technical customer support facilities. I met recently with a group of young, Lincoln tech business leaders, and I believe that information technology and software development could be another area of strength for Lincoln. Businesses in those two industries are exactly the type of firms that sometimes look to offshoring to cut costs. Lincoln can offer competitive homeshoring opportunities that will bring them to, or keep them in, Lincoln.
That’s why today I am announcing my plan to take advantage of this trend as the next Mayor of Lincoln.
My “Homeshore Lincoln” plan will build on our current strengths, bring new good-paying jobs to Lincoln, keep our graduates at home, and give us a competitive advantage in the fight for economic development. The plan has several parts:
First, identify those local companies that could look at offshoring and make sure the City of Lincoln has done everything it can to keep these jobs at home. Our Business Retention and Expansion program should present a competitive economic package to those considering offshoring to encourage them to stay in Lincoln.
Second, I will aggressively recruit and pursue companies looking to come back to the United States. When Dell computers looked at coming back from Bangalore, India in 2003, Lincoln should have been front and center, offering the advantages we have. The practice of sending software application development work and other technology projects overseas does not appear on the verge of ending. Lincoln could be a competitor for jobs in this high wage industry. We need to sell our city as the best place to locate for companies willing to bring their businesses home.
Third, I will work with our telecommunications companies to make Lincoln as technologically advanced as possible. Technology firms need redundant systems in place, broadband technology, and a high level of service. As Mayor, it will be my job to work with Windstream and Time Warner to ensure that new companies have the technological infrastructure they need to succeed.
Fourth, partnerships with education are essential. I renew my call for Education as a Cornerstone of economic development. The schools are the fundamental building block of an educated workforce and they attract companies who have managers with families. As Mayor, I will make sure that the City cooperates with the school district. Partnerships with our Southeast Community College, local colleges, and the University of Nebraska are part of the reason Lincoln is attracting technology operations. The Home Shoring concept depends upon these partnerships, and the significant employment base created by colleges and universities. Verizon’s regional vice president indicated that the company chose to expand here due to the value Lincoln places on educating our kids.
As Mayor, I will continue to promote schools as a selling point to new business.
Finally, I will make sure that the City supports the 2015 vision of a new University of Nebraska research park. Cities with cutting edge science and technology programs as part of both the university community and the private-sector are key to bringing home high-tech companies that have been outsourcing their internet development.
The key to tomorrow’s economic development is to see the trends today. Lincoln should dare to dream of being the next high tech hub. That’s the kind of leadership I will bring to City Hall and the kind of economic leadership that will keeps Lincoln prosperous and strong. Thank you.