Cabin Business

In June 2008, Hewlett-Packard announced it would locate a state-of-the-art customer service and technical support center in Conway.
The announcement was hailed as ground-breaking news because of 1,200 good-paying jobs coming to the area and the fact that Conway and the state of Arkansas could attract knowledge-based industry. It was also believed that the impact of all those new jobs would fuel growth throughout all aspects of the economy.

Conway Area Chamber of Commerce President and Chief Executive Officer Brad Lacy said on the day of the announcement, “If we do our job right, and HP comes to town and hires 1,200 people, every private developer is going to get something out of it, plus you have to think about, whatever the payroll ends up being, that money working its way through our local economy will fuel more restaurant growth, retail growth, more services, all of that will have a great impact on small business.”

A spokesman for HP recently shared some of the aspects of getting the Conway call center under way.

The decision to locate in Conway

What was HP looking for in a location, and why did it choose Conway? According to an HP spokesman, “HP selected two locations, Conway and Rio Rancho, N.M., based on multiple factors, including the quality of the workforce, business environment, standard of living and government cooperation.”
Corporate decision makers met with Lacy and the Conway Development Corporation, Conway Mayor Tab Townsell and the Conway City Council, and the Arkansas Economic Development Commission as well as Gov. Mike Beebe.

Beebe said at the Conway Chamber’s annual meeting on March 5 that the Little Rock metropolitan area was one of 26 metro areas being considered for the project, and Conway was one of three cities in Arkansas being considered. He could not choose one Arkansas city over another to pull for. All three cities put their best foot forward, he said. The difference was in Conway’s leadership, amenities, education, etc., he said.

Michael J. Holston, executive vice president and general counsel for HP, during a speech at the chamber annual meeting, said, “We looked for opportunities to bring jobs back to the U.S. We looked for available real estate. We looked for a talented work force. We looked for a community where HP employees will want to live.”

Johnny Adams of the Conway Area Chamber of Commerce said in an open letter to the chamber membership and local residents that Conway landed the HP project for three reasons: The Meadows Office and Technology Park gave Conway and advantage over other sites, he said. Other factors, he said, are “Developing an enriching quality of life that includes great schools, good restaurants, amazing churches, expanded shopping, proximity to the arts and entertainment options,” and “Having a well-educated, young and dynamic work force, many of whom have received their education right here in Conway.”
Lacy noted regarding government cooperation on the project, “With the city and state participating financially, I think we had a very competitive offer for them. You couple that with other important things like work force and quality of life, and you’ve got a pretty good deal on the table for them.”

Conway’s median age is 28.6, and 40 percent of adults in the city have at least a bachelor’s degree, making it a young and well-educated city, Lacy added.

The facility

In late 2009, Hewlett-Packard plans to open its Conway operation at a two-story, 150,000-square-foot office building under construction at The Meadows Office and Technology Park on Sturgis Road. The $28 million building will be built to standards of the Leadership in Energy and Environmental Design (LEED) Green Building Rating System. The Conway Development Corporation is providing the building for HP to lease.
The Wilcox Group of Little Rock is the architect of record for the building and was selected by the CDC, according to an HP spokesman. The architect for the interiors is Gensler, a longtime partner of HP, the spokesman said. Nabholz Construction is building the facility, which will sit on about 25 acres in the technology park.

As for the amount of land the building will be situated on, a spokesman said HP outlined its requirement, and the city determined the amount of land that would be designated for the project. Lacy said the amount of land was determined by how big the building would be and how much parking lot space would be required.

The Conway City Council on the day of the June announcement waived bid requirements and selected Outer Limits Landscape Inc. and Legacy Fencing to provide landscaping for The Meadows and appropriated $2.9 million for improvements to roads in and adjacent to the park and $2.2 million for improvements to the land comprising the park.

HP has also worked with the city of Conway on the building’s design to meet the company’s requirements for the operations at the site, according to the HP spokesman. Holston shed some light on what the operations will be. He said the facility will be “truly state-of-the-art” and is “a new way to do a call center.” Employees will field calls from retail customers but also from HP’s enterprise customers. He said most people know HP for its consumer products (it is No. 1 in PCs and printers), but it is also a major supplier of technology to enterprise companies.

A spokesman reported the building will have a dual feed power supply from Conway Corporation with a generator backup. Lacy said this means the building
will be served by two different power substations so that, in case one becomes inoperative, the second one could continue to service the facility.
The building will not have large computer rooms or data center space, thus it has no need for special cooling equipment.

“The voice and data infrastructure, typical in most office buildings, will be serviced by supplemental air conditioning units backed up by the generator,” the spokesman said.

Asked about what infrastructure and equipment would be required for the facility, other than computers supplied by HP, the spokesman said, “HP is working with city officials and local developers on the design and construction of the new facility, which will be optimized for service and support center operations, with features that include advanced IT and telecommunications systems to track and transfer calls, and spaces for collaborating and training.”

The people

Hewlett-Packard Government Affairs Manager Fred Shannon said at a luncheon in December that HP has opened a temporary facility in Little Rock where employees are in training. He said by January, 80 employees would be at the temporary facility. HP is consolidating its technical support centers, he explained, so while some employees will be hired locally, others will come from centers around the country. He said employees will have a technical background. Many will have a four-year degree, and some will have two-year community college degrees. Salaries will start in the low $40,000 range, he said.
A spokesman for HP said, “We are very pleased with the hiring process and the candidates we are meeting. We are finding people through job fairs, job postings, local colleges and universities and local employment services. Prospective candidates are encouraged to visit HP’s job site on HP.com to search for job opportunities in Conway.

“There are many different types of positions we are hiring for. Administrative, sales and technical support positions. We need skills that are tied to each of these types of roles. In addition, we are also recruiting at local colleges and universities.”

Shannon also said at the December luncheon that, because the new facility is a consolidation effort, it should not be negatively impacted by the tough economic times.

The timeline

Four months prior to the announcement at the Donald W. Reynolds Auditorium at the University of Central Arkansas on June 19, the city of Conway, the Conway Area Chamber of Commerce and several of its partner organizations began a whirlwind courtship of Hewlett-Packard.

Adams said, “The timing was correct. We had just gone through a reorganization at the chamber that pulled a bunch of organizations together. When we were presented with the HP opportunity, we were amazingly equipped to respond quickly, because we had everyone at the table to make things happen.”

In June, HP announced plans to open the new, state-of-the-art contact centers in Conway and Rio Rancho, N.M. The temporary location in Little Rock opened Dec. 1. The permanent Conway site is slated to open Dec. 20. HP plans to have the full 1,200 workers hired and working within four years.

Lacy said of the project, “HP is a defining point, not only for Conway but our entire state. It proves that we can be competitive to recruit knowledge-based companies. I am proud that Conway was the community that did it first. It is a testament to the hard work of a lot of people and organizations — a model of public/private partnership.”