story by Michael Tilley
mtilley@thecitywire.com
Expansion of a health and rehab center in Alma and the Sykes call center operation in Fort Smith could add up to 220 jobs in the Fort Smith region – an economically struggling area that has seen several positive job announcements in recent months.
An official with Tampa, Fla.-based Sykes confirmed Tuesday (July 16) that the global “customer contact management solutions” provider will expand its Fort Smith operation located in what was once a portion of Phoenix Village Mall.
"Thanks for your inquiry. SYKES is excited to be expanding our site in Ft. Smith, Arkansas. We are adding about 15,000 sq. ft. to our current facility to support the support needs of a new client. We are currently hiring qualified individuals to join our growing team in Ft. Smith!,” noted an e-mail from Dan Hernandez, executive vice president, global strategies, for Sykes.
Sykes’ expansion in Fort Smith had been rumored, but on Monday night (July 15), Fort Smith City Director Mike Lorenz said during a public meeting that Sykes would be “adding another couple of hundred jobs there.”
Sykes, which employs more than 46,000 at more than 75 locations in 23 countries, opened the Fort Smith operation in early 2011. Sykes was initially recruited to Fort Smith by FSM Redevelopment Partners, the company that purchased the more than 35-acre former Phoenix Village mall property in January 2009.
PHOENIX JOB GROWTH
Lance Beaty, a partner in FSM Redevelopment, told The City Wire that temporary space has been provided for immediate needs, with complete build out of the new space set for the middle of September. The build out costs are estimated at around $600,000, which does not include furniture, fixtures and equipment costs to be paid by Sykes. The total project could be a more than $1 million investment.
Sykes reported 2012 revenue of $1.127 billion, and cash flow from ongoing operations of $86.5 million. Sykes employment in Fort Smith is estimated at 450, with the expansion potentially adding between 150-200 jobs.
“In 2009, buying this old mall seemed like a big risk, but I’d say it’s paid off. It’s been a long time since more than a thousand people came to Phoenix Village to come to work,” Beaty said. “Our little corner of Fort Smith will soon have an annual payroll in excess of $30 million.”
Naples, Fla.-based Health Management Associates announced plans on April 4 to operate a regional service center in Fort Smith that will employ more than 500 with average annual salaries potentially exceeding $40,000. The almost 90,000-square-foot facility also will be housed in what was once a portion of Phoenix Village Mall. HMA estimates the annual payroll will be $21.5 million, with the center at full employment within 12 months. The company is also investing $4 million in furniture, fixtures and equipment for the new center. The facility is scheduled to be ready for operations in early September.
Other businesses located on the Phoenix property includes the Cooper Clinic Pro Med urgent care office, a regional office for AFLAC, Sebastian County Solid Waste office and several retail stores.
Beaty also credited Fort Smith city staff for “being very cooperative to expedite the permitting” for the Sykes project.
ALMA EXPANSION
Alma Healthcare and Rehabilitation, owned by Rogers, Ark.-based Cornerstone Healthcare, is investing $2.4 million in a three-phase expansion that could add up to 20 jobs in the Crawford County community. Cornerstone Healthcare is owned by Allen Kilgore.
A formal groundbreaking is planned for 10 a.m., Thursday (July 18) at the facility located at 401 Heather Lane in Alma.
The expansion will add 10,800 square feet to the existing building, and will include parking lot renovation. A majority of the new jobs will be certified nurse assistants, according to Administrator Debbie Fort. The pay for CNA begins at about $11 an hour, she said. Fort said most of the jobs could be filled within six months.
In a statement prepared by the Alma Area Chamber of Commerce, Fort said the operation is not just a nursing home.
“We discharge an average of 10 to 15 residents a month out of a shortterm rehabilitation plan,” Fort said in the statement.
Many patients are recovering from a fracture or stroke and do not require assisted living or long term care. Fort said the work of the facility was to “enhance life and get everyone up to an optimum level of functioning.”
Fort said the new rehab center will allow area residents access to medical services without long trips to other regional facilities.
LisaMarie Norris, executive director of the Alma chamber, said the 20 jobs are important to the Alma economy.
“Expanding existing businesses is the heart and soul of economic development. Twenty new jobs in Alma, and especially such highquality jobs from a topshelf employer, is fantastic economic development news for the entire region,” Norris said.
The project architect is Guest Reddick Architects from Fort Smith. The structural engineer is MyersBeatty Engineers from Van Buren. The mechanical engineers are HSA Engineering Consulting Services from Fort Smith, and the contractor is CR Crawford Construction from Fayetteville.
THE JOBS PICTURE
With the possibility of 220 new jobs from the Sykes and Alma Healthcare expansion, new job announcements in the region during the past six months total almost 1,000.
• Phoenix Metals (Chaffee Crossing): up to 40 new jobs, announced March 21
• Health Management Associates (Phoenix Village-Fort Smith): 500 jobs, announced April 4
• Tankersley Food Service, (Van Buren Industrial Park): 20-40 new jobs, announced June 11
• Gerber Foods (Fort Smith plant): $150 million expansion estimated to add up to 90 jobs (The Fort Smith Board of Directors approved on June 4 a bond issuance for the expansion.)
• Answer Fort Smith (Fort Smith): up to 90 jobs, announced June 14
• Sykes (Phoenix Village-Fort Smith): 150-200 jobs (estimated), announced July 16
• Alma Healthcare and Rehabilitation (Alma), up to 20 jobs, announced July 16
Those jobs and more will be needed to return the Fort Smith region to pre-recessionary employment levels. The average annual employment during 2007 in the region was 131,185, according to the U.S. Bureau of Labor Statistics. Following are the annual average employment levels for the five years following 2007.
2008: 130,484
2009: 123,811
2010: 124,532
2011: 122,167
2012: 122,790
As of May 2013, employment in the Fort Smith region was estimated at 123,501.