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Attracting and growing professional service business in Waco will help the region build a younger, better-educated and more qualified workforce.
The Chamber’s Next Level Strategy notes that local firms could enhance this sector by obtaining their professional services locally instead of outside of Greater Waco.
In addition, continuing to draw younger, better-educated professionals through retention of local graduates or providing opportunities for them to return to Waco later will spur the professionals services arena as well.
Professional and Financial Services is comprised of subsectors in finanance and insurance, accounting, legal, business support, engineering, architecture, creative design and scientific and technical consulting services.
These business services are typical functions that occur within regional headquarters and shared service operations, both a focus of Greater Waco. Opportunities exist to support small, entrepreneurial businesses in the fields of consulting, advertising and marketing, among others.
The proximity to Austin, Dallas-Fort Worth, Houston and San Antonio provides a challenge for the Greater Waco market to retain those expenditures within the community, as well as an opportunity for firms to service the regional and state markets from a cost competitive location.
Workforce
Many occupations in the Professional and Financial Services sector require a bachelor’s degree or higher, which are offered at Baylor University and at the McLennan Community College University Center.
The University Center is a partnership with the University of Texas at Arlington, Tarleton State University, the University of Texas at Brownsville, the University of Texas Medical Branch (Galveston), Midwestern State University, Wichita Falls and Texas Tech University (Lubbock).
The Baylor Law School and Hankamer Business School, ranked No. 2 in the United States for entrepreneurship by the Princeton Review, also support the targeted sector.
Local companies also are making themselves more visible on the Baylor campus through participation in the Science, Math and Engineering Technology Career Fair.
Waco’s McLennan Community College and Texas State Technical College Waco also boost the workforce with their health care, design, technical and many other programs.
Quality of Life
Waco’s strong, growing economy with a variety of businesses in need of professional support services and a high quality of life also are among the factors for developing this sector, according to the strategic plan.
The focus groups that participated in the research phase of developing the strategic plan noted Waco’s quality of life - amenities of a larger city, hometown feeling, family lifestyle, proximity to Austin and Dallas, absence of traffic and low cost of living.
It was reported in a 2009 Texas Comptroller Report that "a person earning an annual salary of $35,000 in Waco would have the equivalent purchasing power of a person making $44,132 in Dallas or $45,652 in Austin."
What We Need
Waco is particularly short on services in the architectural and engineering; advertising; specialized design; and management and technical consulting subsectors, according to the strategic plan.
Professional services firms are typically small operations by nature, which strengthens the local economy through diversification, according to the plan.
Waco has representation in each of the subsectors, but “all areas have tremendous potential for quality job growth,” according to the strategic plan, which suggests supporting the expansion of existing firms and creating a structure to support professionals interested in starting their business.
Professional services with the strongest projected growth for the Heart of Texas region are tax examiners, collectors and revenue agents; engineering managers; administrative services managers; and payroll and time-keeping clerks, according to the Texas Workforce Commission. (see graph)
Occupations with higher degree requirements with strong projected growth include financial managers; lawyers; and accountants and auditors.
| Projected Growth for Professional Services 2008-2018 |
| |
Projected U.S. Job Growth 2008-2018 |
Heart of Texas WDA
2006-2016 |
| Sector |
Percent |
New jobs |
Percent |
New jobs |
| Financial Activities (52-53) |
|
|
10% |
800 |
| Monetary authorities, credit intermediation & related activities (521,522) |
|
|
|
250 |
| Securities, commodity contracts, investments (523) |
|
|
|
100 |
| Insurance carriers & related activities (524) |
|
|
|
150 |
| Lessons of nonfinancial intangible assets (532,533) |
6% |
|
|
200 |
| Professional & Technical Services (54) |
34% |
2,656,500 |
31% |
750 |
| Legal Services (5411) |
|
|
|
100 |
| Accouting, tax preparation, bookkeeping and payroll services (5412) |
|
|
|
100 |
| Architectural, engineering and related services (5413) |
|
|
|
150 |
| Specialized design services (5414) |
|
|
|
|
| Management, scientific and technical consulting services (5416) |
|
|
|
|
| Advertising and related services (5418) |
8% |
37,000 |
50% |
50 |
| Other professional, scientific and technical services (5419) |
22% |
128,100 |
33% |
100 |
| Administrative & Support Services (561) |
17% |
1,340,200 |
40% |
2,400 |
| Management of Companies & Enterprises (55) |
5% |
102,400 |
11% |
50 |
| Total Non-Agriculture Employment |
10% |
15,273,900 |
18% |
28,200 |
| Source: Texas Workforce Commission |
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