Economic Development Futures Journal

Thursday, November 06, 2003

counter statistics

Southwest Airlines to Close Little Rock Call Center

Consolidation continues to be the name of the game in the call center industry. SW Airlines announced plans to close its 720-person center in Little Rock, Arkansas, along with two other centers in Dallas and Salt Lake City.

Arkansas officials said they will continue to persuade SW to keep the center open, but had no indication that was possible. SW received a $13 million incentive package when it originally opened the center.

Most importantly, local and state economic development officials had to indication the center would close. Economic development officials were informed at the same time employees were notified by the company the center would close.

This situation points up the need for better intelligence about businesses in the communities. While it certainly is not possible to know in advance when every company is going to open, expand or close, more and more communities are finding themselves caught off guard by these notices. This is a case where it is important to be aware of national and global trends that are likley to impact local operations. In this case, it is well-known that call centers have been contracting since 9/11, especially those operated by the airlines. This argues for better strategic intelligence on business and economic trends impacting local economic development

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