Economy of Omaha, Nebraska facts for kids
The economy of Omaha, Nebraska has served as a major commercial hub in the Midwestern United States since its founding in 1854. Dubbed the "Motor Mouth City" by The New York Times, Omaha is widely regarded as the telecommunications capital of the United States. The city's economy includes agriculture, food processing, insurance, transportation, healthcare and education. Warren Buffett of Berkshire Hathaway has lived in Omaha all of his life, as have the ConAgra Foods, Union Pacific Railroad and Mutual of Omaha Companies, and Kiewit Corporation, all Fortune 500 corporations.
According to the Nebraska Department of Labor, in March 2008 the unemployment rate in Omaha was 3.9 percent. Between 2000 and 2005 Omaha's job growth was 0.70 percent. In 2006 the sales tax rate was seven percent, with income tax at 6.68 percent. That same year the median family income was $56,869, with a 1.80 percent housing price gain.
In September 2007 the city ranked eighth among the 50 largest cities in the United States in both per-capita billionaires and Fortune 500 companies.According to USA Today, no other city in the country could claim a ranking as high as Omaha on both lists. The paper identified the richest residents of Omaha as Ameritrade founder Joe Ricketts, worth $1.5 billion; Walter Scott Jr. of Peter Kiewit Sons, worth $1.2 billion; and Warren Buffett, then valued by Forbes magazine at $44 billion. The city ranks fourteenth among the states for philanthropic giving, according to the Catalogue of Philanthropy.
Current economic sectors and industries
Currently, the service sector accounts for approximately 40 percent of total employment in Omaha. Other key sectors in the city include trade, transportation and utilities, finance, insurance, and real estate. Telecommunications and architecture/construction are also major influences on the city's local economy. The Greater Omaha Economic Development Partnership identifies the defense industry, manufacturing, and information technology as important areas as well.
The presence of the Strategic Air Command during the Cold War and the U.S. Strategic Command has led to a strong defense industry. The city's transportation has been vital to its growth, with more than 144 million pounds of cargo passing through Eppley Airfield in 2004. The Union Pacific and several other major railroads provide freight service coordinated with many trucking companies serving the metropolitan area.
Studies also show that the Holland Foundation, which is based in Omaha, is one of the nation's most generous philanthropic foundations.
Finance and insurance
The insurance industry has also been important to the city's fiscal well-being, while its finance and real estate sectors have been less-so than the nation as a whole. The nation's largest privately held bank, First National of Nebraska, as well as three Fortune 1000 financial services companies (Berkshire Hathaway, Mutual of Omaha and TD Ameritrade) make Omaha one of the highest density clusters of the country's financial sector. In addition, insurance companies based in Omaha include Blue Cross Blue Shield of Nebraska, Physicians Mutual, Woodmen of the World, and Berkshire Hathaway subsidiaries National Indemnity Company, and Central States Indemnity.
Telecommunications and information technology
According to Newsweek magazine, "Omaha is where the blue-collar work of the information economy is done. Phones are answered, money is counted, and data are processed. Six national fiber optic networks converge here."
The telecommunications industry has gravitated to Omaha over the last 30 years. After the U.S. government relocated the Strategic Air Command here following World War II, the city became home to one of the world's most advanced and secure phone systems. Other factors in the city's success include the city's location in the Central Time Zone, making it more convenient to call either coast during the work day, as well as local speech patterns, described as "pure American," making it easily understood everywhere. Nebraska state regulators granted local phone companies wide latitude to deploy new services rapidly. Furthermore, Omaha's Metropolitan Community College created telecommunications-related courses and training programs. Since the early 1980s, several large hotel and travel reservation operations, including those for Marriott, Hyatt, Radisson and Westin hotels as well as the traffic information center for Greyhound Bus Lines, have all been located in the city. After the AT&T breakup, US West, the phone company whose 14-state territory includes Nebraska, adopted the slogan "Dial 800 and get Omaha" to promote its services. Worldwide telecommunications company West Corporation was founded in Omaha in 1986, and it is currently still headquartered there. Other nationwide companies with major call center operations located in Omaha include PayPal, Cox Communications, and Aflac.
Omaha was one of the first U.S. cities to develop a fiber optic network. Over the past 10 years, its telecommunications foundation has expanded into a thriving information technology sector. Today, the city has several educational facilities focused on information technology and telecommunications, including the University of Nebraska's Peter Kiewit Institute, Creighton University's Joe Ricketts Center in Electronic Commerce and Database Marketing, the Creighton Institute of Information Technology Management, and programs at Bellevue University.
Companies
The Omaha metropolitan area's largest employer is the Offutt Air Force Base, which employs over 10,000 military and civilian workers. Its second-largest is Alegent Health, with approximately 7,500 employees, followed by Omaha Public Schools and First Data Corporation, each with approximately 7,000 employees. Other major employers in the Omaha area include Methodist Health System, Mutual of Omaha, ConAgra Foods, Nebraska Health System, Odyssey Staffing Inc., Staff Mid-America, and the West Corporation.
Businesspeople
According to USA Today, Omaha is ranked eighth among the nation's 50 largest cities in both per-capita billionaires and Fortune 500 companies. Warren Buffett, nicknamed the "Oracle of Omaha", was ranked as the richest people in the world in 2017. Other influential businesspeople in the area include Cathy Hughes, owner of Radio One.
Retail
Omaha is home to five major shopping malls: Westroads Mall, Crossroads Mall, Oak View Mall, and Village Pointe, an outdoor shopping mall located in far west Omaha. Village Pointe houses some of Omaha's finer national retailers, such as Coach, Inc. and Apple Inc. Shadow Lake Towne Center is another large scale outdoor shopping mall located in the suburb of Papillion. Several smaller scale shopping centers are located throughout the city. One Pacific Place and Regency Court Mall are upscale shopping centers in the Regency neighborhood. Borsheim's Fine Jewelry 62,500-square-foot (5,810 m2) store is located in Regency Court Mall. Sorensen Park Plaza, Aksarben Village, Midtown Crossing, and Rockbrook Village are other major shopping centers in the Omaha area.
Located near Crossroads Mall on 72nd and Dodge, Nebraska Furniture Mart is the largest home furnishings store in North America.
The Target Corporation entered the hypermarket format in 1995 by opening its first SuperTarget store in Omaha.
Although Downtown Omaha was once the city's major retail district, most retail locations are now located in Midtown and West Omaha. However, the Old Market District has several local specialty shops and clothing stores and boutiques. The NoDo development has brought national retailers back to downtown with Urban Outfitters and American Apparel opening in the Slowdown development.
The neighborhoods of Benson, Dundee, and South Omaha all have main street retail districts.
Headquarters
Omaha is home to four companies listed on the Fortune 500 list: Berkshire Hathaway (#12), Union Pacific (#151), Peter Kiewit and Sons, Inc. (#446), and Mutual of Omaha (#489). Omaha is also the headquarters of several other major corporations, including The Gallup Organization, Physicians Mutual, TD Ameritrade, Werner Enterprises, and First National Bank. Many large technology firms have major operations or operational headquarters in Omaha as well. Those include First Data, PayPal, and LinkedIn. The city is home to three of the 30 largest architecture firms in the United States: HDR, Inc., DLR Group, Inc., and Leo A. Daly Co. The Lozier Corporation, West Corporation, ITI Marketing Services, Omaha Steaks, Pamida, Oriental Trading Company, Valmont Industries, First Comp Insurance, Hayneedle, and Godfather's Pizza are based in the city themselves
Current urban growth
The city recently has experienced a large amount of economic growth. In its downtown area, the Omaha World-Herald's Freedom Center, the First National Bank Tower, the CenturyLink Center Omaha, and the Gallup University campus have each been identified as central to the city's revitalization efforts. WallStreet Tower Omaha was a planned downtown addition that would have been the city's third tallest building. The Missouri River waterfront development project features a pedestrian bridge connecting Omaha and Council Bluffs, Iowa. Also, there are two condominium towers and an area for both retail and restaurants. Redevelopment has been ongoing in the north downtown area, with interest piquing after the recent announcement of a new downtown baseball stadium for the College World Series in the area.
In West Omaha — parts of which were covered in cornfields as recently as 2002, several commercial districts and high wealth neighborhoods have developed. A mixed-use development in the southwest portion of the city called Coventry will be a complex of mansions, commercial development, and retail/restaurants. Projects are also under way for improving North Omaha. In the Midtown area, Mutual of Omaha is redeveloping an area bordering 31st to 33rd streets and Dodge to Harney streets that is called Midtown Crossing at Turner Park. Featuring condominiums, apartments and an Element Hotel, The area will also host an urban style movie theater with restaurant and bar/club included, a grocery store, restaurants, a dry cleaners, a health club and other shops and services. After renovating and expanding the public Turner Park, the development seeks to become a catalyst for further redevelopment in the area. Another mixed-use project in Midtown is situated on the site of the former Ak-Sar-Ben Colesium. Aksarben Village is a huge complex consisting of University of Nebraska at Omaha's Aksarben Campus containing learning centers and dorms, Blue Cross and Blue Shield of NE's new Headquarters, First Data's Omaha offices, a neighborhood grocer, restaurants, shops, a hotel, lounges, bars, clubs, a movie theater, residential areas, and several other medium and small business offices.
Also, in 2009, Omaha released a new master plan for Downtown's development over the next 30 years. It divides several unique districts, The Downtown Center, North Downtown, the Entertainment district, the North and South Riverfront, the Joslyn District, The Park East/Farnam District, and the Old Market District. The Entertainment district will include the CenturyLink Center Omaha and the TD Ameritrade Park. Also, there is a proposed area for several soccer or baseball fields. A large Part of the new Master Plan is the prediction of 8 new office towers in the next 30 years.
Another positive economic note for Omaha is that out of all major U.S. cites, it was least affected by the 2008 economic recession.
Current poverty and economic isolation
Census data in Douglas County from 2000 shows more than 7,800 families living below the poverty line. This is about 6.7 percent of families. In 2007, the director of a statewide poverty advocacy group was quoted as saying, "In Omaha, you start talking about low-income issues, people assume you’re talking about minority issues..." As of October 2007, the city of Omaha, the 42nd largest in the country, has the fifth-highest percentage of low-income African Americans in the country.
Current economic sectors and industries
Currently the service sector accounts for nearly 40 percent of total employment in Omaha. Other key sectors are trade, transportation and utilities, as well as the finance, insurance and real estate sectors. Telecommunications and architecture/construction are also major influences on the local economy. The Greater Omaha Economic Development Partnership identifies the defense industry, manufacturing, and information technology as important areas, as well.
The presence of the Strategic Air Command during the Cold War and the U.S. Strategic Command has led to a strong defense industry. Transportation in Omaha has been vital to the city's growth, with more than 144 million pounds of cargo passing through Eppley Airfield in 2004. The Union Pacific and several other major railroads provide freight service that is coordinated with many of the trucking companies serving the metropolitan area.
Studies also show that the Holland Foundation, which is based in Omaha, is one of the most generous philanthropic foundations in the United States.
Finance and insurance
The insurance industry has also been important to the city's fiscal well-being, while its finance and real estate sectors have been less-so than the nation as a whole. The nation’s largest privately held bank, First National of Nebraska, as well as three Fortune 1000 financial services companies: Berkshire Hathaway, Mutual of Omaha and TD Ameritrade, make Omaha one of the highest density clusters of the financial sector in the country. In addition to Mutual of Omaha, insurance companies based in Omaha include Blue Cross Blue Shield of Nebraska, Physicians Mutual, Woodmen of the World, and Berkshire Hathaway subsidiaries National Indemnity Company and Central States Indemnity.
Telecommunications and information technology
According to Newsweek magazine, "Omaha is where the blue-collar work of the information economy is done. Phones are answered, money is counted, and data are processed. Six national fiber optic networks converge here."
The telecommunications industry has gravitated to Omaha over the last 30 years. After the U.S. government relocated the Strategic Air Command here after World War II the city became home to one of the world's most advanced and secure phone systems. Other factors in the city's success include Omaha's location in the Central Time Zone, making it more convenient to call either coast during the work day, as well as local speech patterns, described as "pure American," making it easily understood everywhere. Nebraska state regulators granted local phone companies wide latitude to deploy new services rapidly, and Omaha's Metropolitan Community College created telecommunications-related courses and training programs. Since the early 1980s a number of large hotel and travel reservation operations, including those for Marriott, Hyatt, Radisson and Westin hotels, as well as the traffic information center for Greyhound Bus Lines have all been located in the city. After the AT&T breakup, US West, the phone company whose 14-state territory includes Nebraska, adopted the slogan "Dial 800 and get Omaha" to promote its services. Worldwide telecommunications company West Corporation was founded in Omaha in 1986 and is currently still headquartered there. Other nationwide companies with major call center operations located in Omaha include Paypal, Cox Communications, and Aflac.
Omaha was one of the first U.S. cities to develop a fiber optic network. Over the past 10 years its telecommunications foundation has expanded into a thriving information technology sector. Today the city has several educational facilities focused on information technology and telecommunications, including the University of Nebraska's Peter Kiewit Institute, Creighton University's Joe Ricketts Center in Electronic Commerce and Database Marketing, the Creighton Institute of Information Technology Management and programs at Bellevue University.
Companies
The largest employer in the Omaha metropolitan area is the Offutt Air Force Base, which employs more than 10,000 military and civilian workers. Next is Alegent Health, with approximately 7,500 employees, followed by Omaha Public Schools and First Data Corporation, each with approximately 7,000 employees. Other major employers include Methodist Health System, Mutual of Omaha, ConAgra Foods, Nebraska Health System, Odyssey Staffing, Inc., Staff Mid-America and the West Corporation.
Businesspeople
- For further information see Businesspeople in Omaha (category)
According to USA Today, Omaha ranks eighth among the nation's 50 largest cities in both per-capita billionaires and Fortune 500 companies. Warren Buffett, nicknamed the "Oracle of Omaha", was ranked the richest person in the world in 2007richest people in the world. Other influential businesspeople in the area include Cathy Hughes, owner of Radio One.
Retail
Omaha is home to five major shopping malls, Westroads Mall, Crossroads Mall, Oak View Mall, and Village Pointe, an outdoor shopping mall located in far west Omaha, which houses some of Omaha's finer national retailers such as Coach, Inc. and Apple Inc. Shadow Lake Towne Center is another large scale outdoor shopping mall located in Papillion, a suburb of Omaha. Several smaller scale shopping centers are located throughout the city. One Pacific Place and Regency Court Mall are upscale shopping centers in the Regency neighborhood. Borsheim's Fine Jewelry 62,500-square-foot (5,810 m2) store is located in Regency Court Mall. Sorensen Park Plaza, Aksarben Village, Midtown Crossing and Rockbrook Village are other major shopping centers in the Omaha area.
Nebraska Furniture Mart, located near Crossroads Mall on 72nd and Dodge, is the largest home furnishings store in North America.
The Target Corporation entered the hypermarket format in 1995 by opening its first SuperTarget store in Omaha.
Although Downtown Omaha was once the major retail district in the city, most retail locations are now located in Midtown and West Omaha. However, the Old Market District has several local specialty shops and clothing stores and boutiques. The NoDo development has brought national retailers back to downtown with Urban Outfitters and American Apparel opening in the Slowdown development.
The neighborhoods of Benson, Dundee, and South Omaha all have main street retail districts.
Headquarters
Omaha has five companies listed on the Fortune 500 list, including Berkshire Hathaway (#12), Union Pacific (#151), ConAgra Foods, Inc. (#173), Peter Kiewit and Sons, Inc. (#446) and Mutual of Omaha (#489). Omaha is home to the headquarters of several other major corporations, including The Gallup Organization, Physicians Mutual, TD Ameritrade, infoUSA, Werner Enterprises and First National Bank. Many large technology firms have major operations or operational headquarters in Omaha, including First Data, PayPal and LinkedIn. The city is also home to three of the 30 largest architecture firms in the United States, including HDR, Inc., DLR Group, Inc., and Leo A. Daly Co.. The Lozier Corporation, West Corporation, ITI Marketing Services, Omaha Steaks, Pamida, Oriental Trading Company, Valmont Industries, First Comp Insurance, and Godfather's Pizza also are based in the city.
Current urban growth
Recently the city has experienced a large amount of economic growth. In the downtown area the Omaha World-Herald's Freedom Center, the First National Bank Tower, the CenturyLink Center Omaha and the Gallup University campus have each been identified as central to the city's revitalization efforts. WallStreet Tower Omaha was a planned downtown addition that would have been the third tallest building in the city. The Missouri River waterfront development project features a pedestrian bridge between Omaha and Council Bluffs, as well as two condominium towers and an area for retail and restaurants. In the north downtown area redevelopment has been ongoing, with interest piquing after the recent announcement of a new downtown baseball stadium for the College World Series in the area.
In West Omaha, parts of which were covered in cornfields as recently as 2002, several commercial districts and high wealth neighborhoods have developed. A mixed-use development in southwest Omaha called Coventry will be a complex of mansions, commercial development, and retail/restaurants. Projects are also under way for improving North Omaha. In the Midtown area, Mutual of Omaha is redeveloping an area bordering 31st to 33rd streets and Dodge to Harney streets that is called Midtown Crossing at Turner Park Featuring condominiums, apartments and an Element Hotel, the area will also host an urban style movie theater with restaurant and bar/club included, a grocery store, restaurants, a dry cleaners, a health club and other shops and services. After renovating and expanding the public Turner Park, the development seeks to be a catalyst for further redevelopment in the area. Another mixed-use project in Midtown is situated on the site of the former Ak-Sar-Ben Colesium. Aksarben Village is a huge complex consisting of University of Nebraska at Omaha's Aksarben Campus containing learning centers and dorms, Blue Cross and Blue Shield of NE's new Headquarters, First Data's Omaha offices, a neighborhood grocer, restaurants, shops, a hotel, lounges, bars and clubs, as well as a movie theater, residential areas and several other medium and small business offices.
Also, in 2009, Omaha released a new master plan for Downtown's development over the next 30 years. It divides several unique districts, The Downtown Center, North Downtown, the Entertainment district, the North and South Riverfront, the Joslyn District, The Park East/Farnam District, and the Old Market District. The Entertainment district will include the CenturyLink Center Omaha and the TD Ameritrade Park. Also, there is a proposed area for a several soccer or baseball fields. A large Part of the new Master Plan is the prediction of 8 new office towers in the next 30 years.
Another positive economic note for Omaha is that out of all major U.S. cites it was least affected by the 2008 economic recession.
Current poverty and economic isolation
Census data from 2000 in Douglas County show more than 7,800 families live below the poverty line, about 6.7 percent of families. The director of a statewide poverty advocacy group was quoted as saying in 2007, "In Omaha, you start talking about low-income issues, people assume you’re talking about minority issues..." As of October 2007, the city of Omaha, the 42nd largest in the country, has the fifth highest percentage of low-income African Americans in the country.
