Embryonic High-Tech Industry Poised to Expand
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- Esmond Garrett
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1 Anchorage Economic Development Corporation October 2000 Embryonic High-Tech Industry Poised to Expand By Jeff Pokorny AEDC Research Director Anchorage is home to a fledging group of innovative high-tech companies, struggling to create a business culture that will enable them to grow and expand into a more meaningful part of the business scene. Fred Burrow, consultant to Anchorage Mayor George Wuerch, convened a meeting of these companies in mid- September to foster the process of creating that culture, and the infrastructure necessary for expansion. AEDC was invited to attend. Culture (in this context) consists of six parts: strategy, structure, process, people, rewards and technology. Anchorage s culture is geared toward the oil industry. It is easy to look at these elements and understand how they bring success to the oil industry. In fact, the development of our entire social and economic structure is heavily influenced by these elements. Yet it s more difficult to attribute those elements to establishments that support high tech because they don t exist. Anchorage is lacking the sort of critical high-tech mass that these companies are looking for: an environment in which enough people and ideas are floating around so that innovation moves at warp speed, in coffee shops, hallways and even parking lots. The rapid dissemination of ideas and knowledge across workers and companies should be continuous. This is the type of innovation that goes on every hour, every day in such places as Silicon Valley. The main topic at this initial meeting was the creation of a facility where these companies could colocate, share ideas and assist one another. This is an excellent idea. It s the start of a strategy that first essential step that will further develop our existing high-tech companies. Not to be left out of the picture at this stage are the infusions of capital that the industry will require, nor the creation of the physical spaces (wired real estate) essential for growth. Anchorage has a dearth of capital sources for these companies, and many times the need for capital is met with a request to move the company closer to the capital source, out of state. Creation of wired real estate is easier. Virtually any building can be retrofitted to meet current technological requirements. These needs can and should be discussed at subsequent meetings. For now, we are encouraged that this dialogue has begun, and the effort is being made to grow our economy along a new path. The development of this type of culture is something new for Anchorage, but would foster the environment needed to make high-tech grow. Doing so will enable Anchorage to create the kind of highpaying jobs ($75k - $100k, on average) that will benefit us all. The high-tech industry complements our existing economy. It can be the key to both creating jobs and attracting new businesses to our community.
2 AEDC, AIA Collaborate to Market Strategic Location By Larry Crawford AEDC President and CEO The significance of the Ted Stevens Anchorage International Airport (AIA) to our area s economy is indisputable. Currently, better than one in 10 jobs in Anchorage exists either directly or indirectly because of airport activity. Clearly, we should continue to nurture the airport s economic growth. Airport officials naturally have a keen interest in this growth, and are collaborating with the Anchorage Economic Development Corporation (AEDC) to help ensure success. As per our marketing agreement with the airport, AEDC s role is focused primarily on seeking global logistics opportunities while AIA continues to work with carriers in pursuit of increased frequency and cargo capacity to and through Anchorage. Those numbers are on an upward trend. In pursuing global logistics opportunities, AEDC will be capitalizing on both Anchorage s strategic location within the northern hemisphere, and available uplift. Both are trump cards in the push to bring businesses to town that will further diversify our Anchorage Economic Development Corporation Platinum Spotlight: Alaska USA Federal Credit Union Alaska USA Federal Credit Union is a cooperative, member-owned, not-forprofit financial institution that offers a full range of consumer financial services to more than 220,000 members worldwide. Alaska USA s growth over the past 52 years reflects its ability to stay on the cutting edge, successfully blending high-touch personal service with high-tech convenience to meet the financial needs of members from all walks of life and levels of income. Branch service, with its high-touch personal attention to members and their financial needs, began when Alaska USA was federally chartered in 1948 to serve the civilian and military personnel stationed on Fort Richardson. Membership expanded state- and nationwide over the years and Alaska USA grew to today s network of 11 branches in Anchorage, 17 in other Alaska communities, and four in the Pacific Northwest, with toll free, seven-day service through the Member Service Center. Alaska USA has also been a leader in providing high-tech, convenient electronic financial services in Alaska. The credit union was the founder of the Alaska Page Two Mastering the Art of High-Tech and High-Touch economy. These may include light manufacturing, component assembly, repair and value-added resource processing all of which can take advantage of existing carrier routes through Anchorage, and create additional demand for such activity. Ideally, we will attract U.S. companies with markets in the Pacific Rim and Eastern Europe, or with factories in those areas and markets in the U.S., as well as companies based in those areas that deal with American customers. We are also continuing to pursue global logistics opportunities with the military. In each case, Anchorage would be an advantageous hub. AEDC also continues to collaborate with the University of Alaska Anchorage College of Business and Public Policy on its logistics training program. Ultimately, the goal is to establish a logistics research center supported by a multi-disciplinary baccalaureate program. This will help establish the needed work force to sustain a thriving global logistics industry. Meanwhile, it has been rewarding to witness the recent success of the Alaska CargoPort. Northwest Airlines announced it would make Anchorage a global air-cargo hub, and move freight operations into the CargoPort, where there is room to expand. We are confident that Anchorage will see more of this kind of activity in the years to come, and look forward to helping facilitate that goal. Option Network that brought ATM service to Alaska. It was one of the earliest credit unions to offer no-cost, secure PC account access for members. Alaska USA now has a full range of financial services available by phone and Internet, 24-7, 365. Realizing the growing demand for convenience and affordability in a wider array of product and service options, Alaska USA established three subsidiary organizations that offer personal service through their offices and toll-free telephone access, along with a presence on the World Wide Web. Alaska USA Insurance Agency, Inc., provides a full line of personal insurance coverage. Alaska USA Mortgage Company works closely with Realtors to offer a full range of real estate and mortgage programs, and Alaska USA Trust Company provides fiduciary and investment services to individuals, public units and other credit unions. Alaska USA is committed to delivering high quality, affordable and convenient consumer financial services. Mastering and fulfilling the promise of the dual benefits of high touch and high tech are an essential part of that commitment.
3 Anchorage Economic Development Corporation Top of the World Summit Brings People, Ideas Together The Top of the World 2000 Air Cargo Summit, Aug at the Alyeska Resort in Girdwood, drew approximately 225 attendees for discussions and forums on a variety of issues. Airports Council International-North America sponsored the event in conjunction with the Ted Stevens Anchorage International Airport and the Cargo Airline Association. The Anchorage Economic Development Corporation was a cosponsor. A Chinese delegation was among participants, and spoke of their country s priority to develop air cargo to strengthen China s economic connections with the world. According to the U.S. Department of Transportation, announcement of the fourth American flag carrier to be designated to provide service to China is expected next April. Developing air cargo facilities on airports was a major theme of the summit. Representatives of airlines, airports and private companies provided input on needs, partnerships, risks and other aspects of development. Other topics of discussion included supply chain integration and management; the need for better coordination regarding airspace use; and information technology for intermodal freight control and security. Attendees were invited to tour AIA, and to attend a presentation by Hayden Green, dean of the College of Business and Public Policy at the University of Alaska Anchorage, with John Mentzer, president of the Council of Logistics Management, on UAA s new master s degree in Supply Chain Management. AEDC Welcomes Gene Dusek, Candi Anderson, Lew Pumphrey Gene Dusek has joined AEDC as research analyst. He is developing an updated Anchorage profile for use in addressing economic development inquiries and assisting in data collection for the Anchorage Military Logistics/Forward Mobility Hub feasibility study. Gene previously worked for the Municipality of Anchorage as director of the Office of Management and Budget. Candida Candi Anderson is our new executive secretary. In that position, she will work closely with President Larry Crawford and provide support for AEDC staff. She will also assist with board and member communications. She previously worked as a secretary at Swalling Construction Co. and as a legal secretary for the Law Offices of W. David Weed. Lew Pumphrey joins the staff as marketing assistant. In that capacity, he will carry out member relations duties while also assisting with publications, press releases, media relations, advertising, event coordination and other public relations and marketing projects. Lew was most recently sports editor for the Frontiersman in Wasilla. Welcome, New Investors Anchorage Parking Authority Alaska Facility Developers Alaska Fiber Star Bloomie s Golden North Van Lines JL Properties, Inc. Kumin & Associates Northern Economics The Harbour Company Water World Our Thanks to this year s Midyear Economic Forecast Luncheon sponsors, who helped make the July 26, 2000, event a success. Providence Alaska Health System Bagoy s Florist Hilton Anchorage We appreciate the interest and support of all who attended and participated in this year s luncheon, and look forward to working with you throughout the year. Page Three
4 Providence Health System: Caring That Knows No Bounds Focused on the future and inspired by the spirit of the past, the Providence Health System in Alaska provides a full continuum of health services and works in partnership with others to promote the health and wellness of Alaskan communities. This is done not just inside the walls of its facilities, but also outside within the communities themselves. For nearly 100 years, the Sisters of Providence and the Providence Health System in Alaska have supported local health and human service programs and individuals in need. During 1999, the Community Benefits Program touched the lives of 145,343 people with more than $9.7 million given out in charitable services, financial assistance and community outreach throughout Alaska. The real story, though, isn t the numbers or the dollars, said Chief Executive Doug Bruce. It is the difference we ve made in the lives of those we ve helped. We re only able to make a difference when our caring knows no bounds, and we give from the heart. That s when we truly live our mission. Providence Health System in Alaska is proud of the role Providence Health System it has played in improving the lives of its neighbors, and in ensuring those in need don t fall through the cracks. Our giving program ensures we don t forget our commitment, nor those who need our help, said Bruce. Ultimately, Bruce said, Providence strives to meet the needs of people as they journey through life, and the system collaborates with others to do this. We couldn t do what we do by ourselves, stressed Bruce. There are many community organizations who work together to take care of those in need. It truly is a partnership, and we re proud of the helping role we play with communities across the state. In addition to the Providence Alaska Medical Center in Anchorage, the Providence Health System in Alaska includes medical centers in Seward and Kodiak, and continuing care and home health services in Anchorage. For permission to reproduce any portion of this newsletter, contact Lew Pumphrey at This UpDate funded by Providence Alaska Health System. 900 West Fifth Avenue, Suite 300 Anchorage, Alaska 9950l BULK RATE U.S. POSTAGE PAID Anchorage, AK Permit No. 882 The Anchorage Economic Development Corporation is a private, non-profit corporation (IRS code 501(c)(6)), operating since It exists to encourage growth and diversity in the Anchorage economy, promote a favorable business climate and improve the standard of living of Anchorage residents. Funding sources for the corporation are municipal grants, state grants and contracts, and private donations.
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