Survey finds young, small firms in targeted industries

No one was particularly surprised when a survey of industries targeted for growth in northern Nevada found executives are bullish on the region.

Those companies expect to add more than 800 workers, invest $127 million in equipment and occupy 483,000 square feet of additional space in the next three years.

But the survey conducted by volunteers from the Economic Development Authority of Western Nevada and the Northern Nevada Development Authority also threw into sharp profile how many of the companies in the targeted industries are small and young.

Take advanced logistics, for instance.

Volunteers in the Business Builders program interviewed 14 companies in the industry, which has been targeted as driver for high-quality economic development in the region.

Nine of the 14 companies employ less than 50 people.

In another segment of the survey, more than half of the 54 advanced-manufacturing companies surveyed have fewer than 50 employees, and nearly 30 percent have been in business less than 25 years.

Among the good news in the manufacturers survey, said EDAWN's Tracey Buxton, was this: Nearly 60 percent of the surveyed companies have their headquarters in northern Nevada, which tends to strengthen executives' commitment to the region.

In the clean energy and bio-agriculture industries in which economic developers pin strong hopes for the region, the majority of the firms that were surveyed currently employ fewer than 50 workers.

Workforce-related issues were cited as a major concern by executives in all three industries. About 69 percent said they're having troubled recruiting skilled workers.

In response to those concerns, EDAWN, NNDA and NevadaWorks are pushing a campaign dubbed "My Nevada Dream Job" to recruit skilled workers into the region. Among the needs cited by the companies in the Business Builders survey are engineers and scientists, welders, fabricators and machinists, and molding technicians and technical support personnel.

Executives who were surveyed gave high marks to the productivity, stability and quality of the region's workers.

Along workforce issues, the executives said cost of living and the quality of government services are concerns.

Like hundreds of executives in past surveys, they cited three strengths for the region's economy its business climate, its quality of life and its location.

The survey was conducted from August to December of last year. Business Builders volunteers, who conduct two surveys a year, currently are talking with executives in life sciences, software, and business and financial services companies, Buxton said.