For the second straight year, the regional agency charged with attracting new businesses fell short of its goal for new payroll. But Team NEO helped attract the same number of companies, 10, as it did in 2008. And it fell one, tantalizing deal short of surpassing its new-payroll benchmark, officials said.
For the second straight year, the regional agency charged with attracting new businesses fell short of its goal for new payroll.
But Team NEO helped attract the same number of companies, 10, as it did in 2008. And it fell one, tantalizing deal short of surpassing its new-payroll benchmark, officials said.
Luring new business is tough during a historic recession, said Jay Foran, Team NEO's senior vice president.
"The number of opportunities will be fewer, the size of opportunities will be smaller," Foran said.
The 10 companies Team NEO helped recruit to the 16-county region project that they will generate 874 jobs and $25 million in annual payroll, within three years.
Team NEO's goal for the year was $40 million in projected payroll. That remains the goal this year, Foran said.
In 2008, Team NEO helped draw 10 companies and a $30 million payroll to the region, well short of a $50 million payroll goal.
Foran said Team NEO would have easily surpassed its 2009 goals, if a much-anticipated deal with Xchanging Inc. had come to fruition.
The London-based company, which handles back-office work for prominent U.S. companies, wants to establish a North American headquarters here, with 800 jobs.
A tentative real estate deal fell through. The company said in December it continues to scout sites in the region.
Team NEO saw mixed results in its other 2009 benchmarks.
It aimed to generate 80 "qualified leads," defined as interest from a company that's looking to bring at least 20 jobs, invest a minimum of $1 million and close the project within 18 to 24 months. Team NEO counted 69 such leads last year.
But 24 times, the region landed on the "short list" of companies looking to move or expand in the area, surpassing a goal of 20.
As in 2008, the bulk of jobs that the new companies generate will come from call centers.
VXI Global Solutions announced a 500-person customer service center in Youngstown last year. Collectcorp Corp. plans to add 135 jobs at Middleburg Heights offices.
Foran said call centers offer "good, middle-class jobs" that are part of economies across the country.
Other companies announcing projects in the region last year included steel manufacturers, consumer product makers and bioscience companies.
Team NEO's falling short of new-payroll goals "is not a major concern," said Joe Roman, executive director of the Greater Cleveland Partnership, a metropolitan chamber of commerce.
The partnership is one of Team NEO's funders. The region's relatively new effort at selling itself globally "is one we've got to continually ramp up," Roman said.
Team NEO plans to tighten its focus on recruiting advanced energy, medical device and minority-owned businesses this year.
It's also gearing up for international business attraction, after receiving $1 million from the Cleveland Foundation. Efforts will focus on western Europe, China, Spain and Canada, Team NEO said in a news release.