Service industries continue to grow

By Kurt Allemeier, Dispatch/Argus Staff writer

Service industries, like lawn care, pet grooming and housekeeping, are growing faster than the rest of the Quad-Cities economy as we head into the 21st Century.

Staff photo Anna Oltman, an employee at Mallard Pointe Kennels in Coal Valley, with Oscar, a dachshound owned by Tony Navarro of Moline

Growth in the service sector is not new. An unscientific poll of the U.S. West telephone directory from 1999-2000 lists 63 lawn and grounds maintenance services, up from 32 listed 10 years ago.

``That is what consumers want -- services,'' said Richard Ballman, professor of economics at Augustana College. ``As we have grown more affluent, we have used more and more of our income to do more for us -- cut grass, prepare meals or prepare financially.''

More scientific numbers, offered by the Illinois Department of Employment Security (IDES) show service industries are growing faster than any other sector of the economy.

The Quad-Cities area saw 7,700 new service industry jobs created between 1993 and 1998, an 18.9 percent increase, according to the IDES. At the same time, new jobs increased 10 percent, according to IDES.

Those numbers aren't going to slow anytime soon. An IDES projection from 1996 to 2006 shows service jobs increasing 20.5 percent, compared to a 13.3 percent growth in total employment.

``We seem to be in a very prosperous economy, and there will be a disproportionate need for services,'' Mr. Ballman said. ``We will have more vacations and spending more.''

Kennels are a growing popular service for vacationers. Mallard Pointe Kennels, on U.S. 6, Coal Valley, has experienced the boom of the service industry. Open since 1995, the kennel expanded in 1997, and added grooming services.

People who provide services say clients often come through recommendations from other customers. Mallard Pointe is no different.

``Pets are very loved by their owners who want them well taken care of. We provide a service and are good at what we do,'' said Dana Ernat, who owns the kennel with her husband, Dan. ``We have seen growth because our customers tell their families and friends.''

A kennel is a time-intensive service, requiring 24-hour attention to clients, ranging from Chihuahuas to St. Bernards.

``It is a service that requires constant time and attention,'' Mrs. Ernat said. ``When you work in a service like this, you have to have a tremendous love of animals.''

The prosperous economy also can work against service industries as companies compete for employees.

Ace Muffler, of Rock Island, is growing with the economy, but also has the growing pains to go with it. Butch Cueno's business can handle 19 cars at a time.

Staff photo/ Butch Cueno

``We are showing an increase every year,'' Mr. Cueno said. ``We are in need of poeple. It is hard to find qualified people in this business.''

He said automobiles and sport utility vehicles have more complex electronic systems, meaning more work for mechanics to learn new systems, and more time spent training employees.

Merry Maids in Davenport, has also experienced the pains of growing. The last two years have been tough, said owner Pat Hannah.

``We had a terrible last two years because we were unable to hire people,'' she said. ``We had phenomenal growth for 10 years before that.''

The company was growing at about 12 percent a year, Ms. Hannah said. She blamed the employee shortage on a shrinking pool of candidates. Happily, she reports that the company is starting to grow again.

Merry Maids shows there are more than just fast-food-type service jobs.

``A lot of times when you hear service job, what you conjure up is hamburger flipping, but it can be from financial services to flipping hamburgers,'' Mr. Ballman said. ``If you have a good skill, you can have a strong income from providing a service.''

Computers have helped fuel the growth of service jobs. Mr. Ballman points to insurance companies as an example.

``It used to be if you wanted to call for any information on an insurance policy, they would have to get back to you,'' he said. ``Now if you call, they can see your life on the screen in front of you.''

Occupations are expected to grow by these percentages from 1998 to 2006
Computer engineers 120.5
Artists & commercial artists 98.4
Database administrators 80.6
Computer support specialist 76.1
Systems analysts 73.1
Occupational therapy asst. 71.5
All other machine operators 65.6
Personal & home care aides 64.1
Plastic molding setter 63.4
Wood machinists 61.9
Human services workers 60.3
Occupational therapists 60.2
Emergency medical tech. 59.4
Respiratory therapists 54.3
Securities & financial sales 53.4
Pest controllers 52.5
Chemical equipment controllers & operators 51.4
Travel agents 51.1
Property & real estate managers 48.8
Food batchmakers 48.6
Child care workers 48.0
Medical assistants 45.9
Customer service representatives 45.9
Teachers, preschool & kindergarten 45.6