Hcped 2008-09 Annual Report
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2008-09
annual report Henderson County PartnersHiP for eConomiC develoPment, inC.
15 years of Creating and retaining Quality Jobs
Henderson County Partnership for Economic Development, INC.
2008-09
Board of Directors Officers
Adam Shealy, Chairman The Van Winkle Law Firm Sandy Tallant, Past Chair Duke Energy Mark Stone, Chair Elect First Citizens Bank Nathan Kennedy, Treasurer BB&T Chip Gould, Product Development Chair Cason Companies, Inc. Kelly Leonard, Marketing Chair Forest Commercial Bank Chris Burns, Chamber Chair 2008 Summit Marketing Group, LLC Greg Burnette, Chamber Chair 2009 First Citizens Bank Andrew Tate, President & CEO Henderson County Partnership for Economic Development
Directors
Chairman Ervin Bazzle Henderson County Board of Public Education Gus Campano Glade Holdings, Inc. Tom Cooper Cooper Construction Company Councilman Hugh Clark Town of Fletcher Rob Cranford Morrow Insurance Carsten Erkel Elkamet
Jim Hall Investors Realty Group
Mayor Greg Newman City of Hendersonville
Don Hallingse PSNC Energy
Dr. Molly Parkhill Blue Ridge Community College
Lynn Johnson Dixon-Hughes, PLLC
Mayor Bob Staton Village of Flat Rock
Mayor Henry Johnson Town of Laurel Park
Mayor Roger Snyder Town of Mills River
Dave Modaff Friday Staffing Services
LaVoy Spooner AT&T
Chairman Bill Moyer Henderson County Board of Commissioners
Debbie Wilkinson Wachovia
letter from the Chairman 2009 marks 15 years of an organized economic
development effort for henderson County, north Carolina. During those 15 years the henderson County Partnership for Economic Development has been highly adaptive in pursuit of quality jobs; streamlining our offerings, improving our assets and mitigating our perceived weaknesses. all the while, we continue to remain focused on maintaining our foundation, and our responsibility to grow and retain quality jobs in henderson County. The assets of our County continue to shape the sectors that we target in our marketing efforts. Whether the industry involves metals, automotive, aviation or plastics, henderson County offers an impressive combination of quality workforce, logistics, infrastructure and government support. Deeper into this report, we will highlight these four sectors and profile some existing industries within those sectors. One unwavering foundational element of our organization is our commitment to those businesses that already have a presence in henderson County. We continue to listen closely to the needs of our existing industry and develop solutions with their direction. Our organization serves as an advocate for more than 135 manufacturers and assemblers in henderson County; acting on their behalf so that they may focus on producing their products and running their businesses.
This past year has shown that our focus on existing industry is not just the right thing to do — it is also the smart thing to do. While many new construction projects have been on hold or delayed indefinitely, consolidation projects have made up a significant portion of our project volume. Of the seven projects that resulted in job creation, retention and/or investment over the past year, all involved companies that already had a presence in henderson County. in each of these instances, our organization and partners competed against other communities across the united states and internationally to win the projects. When these businesses had to make difficult decisions about which facilities were vital to their operations, and which locations would be included in their future plans, henderson County came out on top. The capacity to be adaptive is afforded through public and private sector investors that recognize the importance of our work and continue to choose to invest in our efforts. We have been afforded the opportunity to be proactive in economic development thanks to the dedicated leadership of our Board of Directors and our Members and investors. i would like to sincerely thank all who have contributed time and talents to the Partnership during the past 15 years, and assure you that we remain focused on maintaining our foundation by continuing our efforts to retain and create quality jobs in henderson County.
adam l. shealy The van Winkle law firm 2008-09 Chairman of the Board
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existing industry T
he henderson County Partnership for Economic Development continues to operate an aggressive and proactive industrial retention & Expansion Program (ir&E). The ir&E Program is a collaborative effort between hCPED, Bill Payne of the nC Department of Commerce Western Office and Julie Thompson and Shanda Bedoian of Blue ridge Community College. The program is focused on: • Helping Henderson County industry become more competitive • Removing obstacles that prevent existing industry from remaining in operation and/or growing in henderson County
metrics
• Demonstrating that the community appreciates industrial investment in henderson County.
COMPANY PROFILE
4
Industrial Retention & Expansion Visitations 36 Contact with Industry Stakeholders 122
Company: Advanced Technical Welding Industry: Metals + Machinery Advanced Technical Welding represents a core cluster of metal fabrication and welding found throughout Henderson County, NC. Advanced Technical Welding specializes in repair welding of injection tooling, hardened tool steels, exotic materials, USDA, FDA, FAA and other aviation-related welding.
The primary vehicle to accomplish these objectives is face-to-face visits with industrial executives in henderson County. The visits are customized and tailored to each company’s scope, size, product and facility needs. visits provide company executives with up-todate information regarding local trends and initiatives, as well as connecting industries with local resources and business opportunities. ir&E visits also provide an outlet for manufacturing executives to discuss business developments, industry trends and concerns that may be on the horizon.
2008 –2009 a nnua l rEPOrT
On July 1, 2008, the ir&E Program advanced to include a professional business tracking software license specifically designed for economic development needs. Executive Pulse is an interactive, web-based tool that allows hCPED, nC Commerce and Blue ridge Community College to confidentially share information and assign follow-up responsibilities on henderson County industries. The tool ensures we are responsive to issues impacting our local manufacturers in addition to being able to report on the health of existing industry in aggregate form.
Since 1994, the Henderson County Partnership for Economic Development has assisted clients resulting in $481,200,000 of new taxable investment, helping to create and retain 3,432 jobs. Existing industries that had a presence in Henderson County account for 91% of that total investment and 85% of all new and retained jobs.
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industrial executives forum O
n february 25, 2009, the Partnership held its 2nd annual industrial Executives forum designed to bring together local manufacturers, key stakeholders and elected officials. John Bell of Excel Consulting Group and Dan Ostergaard of Western Carolina university’s institute for the Economy and the future delivered remarks centered on the theme of operating a business in a volatile economic climate. Presentations were based on case study analysis, best practices, and economic projections for Western north Carolina and henderson County.
The forum included small-group breakouts and a follow-up survey designed to collect feedback and identify opportunities for hCPED to improve the business climate of henderson County. forum participants asked that hCPED assist by: • Better leveraging the buying power of Western north Carolina on behalf of henderson County manufacturers • facilitating and building platforms for connecting manufacturers and improving communication between them and allies • Developing non-traditional tools to expose new business opportunities.
COMPANY PROFILE
as a direct result of this feedback, hCPED developed an industrial Products & suppliers Directory, focused on connecting buyers of significance in WNC with local sourcing opportunities in hender-
Company: Skyline Plastic Systems Industry: Plastics The development and production of advanced plastic materials continues to be a primary industry cluster in Henderson County and Western North Carolina. Owners Doc and Debbie Smithson at Skyline Plastic Systems specialize in plastic injection molding.
2008 –2009 a nnua l rEPOrT
son County. hardcopies of the publication, in addition to a web-based version, were developed with the assistance of manufacturers. The directory includes basic company information, detailed description and product photos. The directories were distributed to all henderson County manufacturers and large procurement entities to help connect our industries with prospective business opportunities. To better facilitate communications and problem solving, we
established a linkedin hCPED group where members can share information, ask questions and discuss pertinent issues. hCPED also actively uses a Twitter account to share information about our activities and opportunities for henderson County manufacturers. Our keynote speaker for the forum, Daniel Ostergaard, offered export plan assistance to henderson County manufacturers through his international Trade course at Western Carolina university. WCu
John Bell, President of Excel Consulting Group, and Daniel Ostergaard, Executive Director for Western Carolina University’s Institute for the Economy and the Future addressed more than 100 participants at the Industrial Executives Forum. John highlighted a number of key components to implement when striving to navigate and thrive in a down economy. Dan presented demographic data, trends, public policy developments and projections indicating a vibrant future for the manufacturing community in Henderson County.
students held initial interviews with company officials, and then began researching international export opportunities that were specific to each company and product. Manual Woodworkers & Weavers, leisure Craft and Dampp-Chaser were each presented a complete export assistance plan and detailed recommendations in how to move the plan forward.
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marketing W
hile the volume of leads generated and identified during the previous year slightly outpaced the previous year, marketing efforts were intensified to reach that level. In late 2008 it became clear that the standard holiday lead-stall around December was going to extend well into the close of the fiscal year. Closer inspection led us to learn that the bulk of our activity revolved around consolidation planning. Businesses were liening assets, prioritizing facilities, and shifting strategy — and our focus was to get in front of them before decisions were made. During the 2008-09 year we continued traditional marketing efforts with our partners like CarolinaWest, advantageWest and the nC Department of Commerce. We also initiated efforts to connect stakeholders and promote our offering through social media outlets. in addition to estab-
lishing a linkedin hCPED group for those engaged in our efforts, we also jumped head-first into Twitter. While social media efforts are less tangible and difficult to measure, we can point to several inquiries which we received the early lead on because of our engagement.
Leads Generated/Identified that HCPED Responded To Participation in Targeted Call Missions or Trade Shows Projects: Site Visits to Henderson County by Active Clients Unique visitors to www.hcped.org
metrics
8
105 16 21 11,637
Many of our recruitment-focused call missions and participation in trade shows included complementary visits to out-of-town headquarters of existing industry. a late March trip to the Detroit, Mi area focused on attracting automotive component suppliers that do business with BMW and might also do business with the nearly completed vW facility in Tn. This effort put us in front of several companies that have high interest in locating a southeastern us facility, in addition to allowing us the opportunity to meet with decision makers at arvinMeritor, BorgWarner and Continental Teves at their headquarters. During a CarolinaWest call mission to the Dallas, TX area, primarily focused on site-location consultants, hCPED staff remained in the area to call on aviation and alternative energy companies. another CarolinaWest call mission to the new Jersey and new york area led to a
2008 –2009 a nnua l rEPOrT
visit with autronic Plastics incorporated, parent company of aPi south in fletcher. as in years past, hCPED worked with the north Carolina Department of Commerce on a variety of marketing efforts including the southeast us / Japan Conference in raleigh, nC, the national Business aviation association meeting in Orlando, fl, and the industrial asset Management Council in asheville, nC. We continue to implement a collaborative approach in marketing, focused on strengthening our offering while leveraging limited resources.
marketing activities, 2008-09 Mission to Atlanta (NC Commerce) Presentation to NC Commerce (HCPED) Mission to Charlotte (CarolinaWest) Southern Environment & Energy Expo (HCPED) Parade of Pistons (HCPED) National Business Aviation Association (HCPED) Southeast US / Japan Conference (NC Commerce) Mission to Dallas (CarolinaWest and HCPED) Mission to Detroit (HCPED) Site Selectors Invitational (NC Commerce) Industrial Asset Management Council (NC Commerce) Le Bourget Air Show (NC Commerce)
Skyline Plastic Systems Final products are utilized in domestic and international markets, ranging from specialty designed horticultural products to parts utilized in the newly released 2010 Chevrolet Camaro.
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Product development a
COMPANY PROFILE
vital component of the Partnership’s economic development strategy involves the preservation and preparation of buildings and property suited for industrial development. Our engagement in product development efforts involves private partners, and infrastructure and support allies all with a shared vision. The fletcher Business Park and ferncliff industrial Park illustrate how our public-private partnership works best.
Company: Öhlins USA Industry: Automotive Components Located less than 250 miles from 11 OEM automotive facilities, professional driving circuits, and industryleading engineering and test centers, Henderson County continues to be an attractive location for manufacturing and distribution operations related to the automotive industry. Öhlins USA is the North American distributor and principal service center of the world’s leading performance suspension components for motor vehicles and motorcycles.
Over the past year we were fortunate to have had the opportunity to participate in the Duke Energy site readiness Program with ferncliff industrial Park. The program consisted of an intensive process to inventory available infrastructure, identify challenges in the property’s development and evaluate the site’s marketability as client ready. The process was directed by Duke Energy’s team and Jeannette Goldsmith of McCallum sweeney Consulting. We received significant support and engagement from land-use, site planning, infrastructure, environmental and government partners to successfully complete the program. With many of the same partners, we were able to complete a significant amount of due diligence to the property including: geotechnical soil borings, threatened and endangered species study and field survey, archaeological and historic structures survey, water and sewer
2008 –2009 a nnua l rEPOrT
design engineering and permitting, and a Phase i Environmental survey assessment. hCPED is fortunate to work with a number of private businesses which invest their resources into existing buildings. in December 2006, a team of local business leaders purchased the former steelcase building in fletcher and started the transforma-
tion to fletcher Business Park. The team has made more than $4 million in capital improvements to the 900,000-square-foot facility focused on transitioning the building from a single-purpose furniture manufacturer into a unique, multi-tenant industrial property. in november 2008, taking the renovation one step further, vanir Energy (formerly ap-
palachian Energy) announced that the 23-acre roof of the fletcher Business Park building would house the world’s largest solar thermal heating and cooling system. The building is now home to over a dozen businesses including Diamond Brand Manufacturing, Earthfare and high Gear – going from empty to 86% capacity in less than two years.
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Cumulative investment since 1994 JOBS
JOBS BUSINESS NAME Prince Manufacturing (1) Prince Manufacturing (2) Aegis Holdings ArvinMeritor (1) ArvinMeritor (2) Atlas Bolt & Screw Borg-Warner Borg-Warner Continental Teves (1) Continental Teves (2) Continental Teves (3) DuraLine Imaging Elkamet FedEx First Citizens Bank GE Lighting Systems (1) GE Lighting Systems (2) H. Putsch & Company Henderson Produce Kimberly-Clark
INVESTMENT ($)
NEW
6,000,000 650,000 1,500,000 21,000,000 32,300,000 2,000,000 31,000,000 12,500,000 100,000,000 4,300,000 8,700,000 1,000,000 6,700,000 6,000,000
100 28 22
2,000,000 1,000,000 1,500,000 39,000,000
Investments occuring in the 2008-09 fiscal year.
11 35 50 552 13 35 10 50 70 17 6 12 20
SAVED
30 700 28
70 6
BUSINESS NAME
INVESTMENT ($)
Kyocera Manual Woodworkers & Weavers Morris Broadband MTI (Medical Cable Specialist) Olympia Moto Sports Parts Unlimited (Lemans Corp.) Pepsi-Cola Printpack Printpack & Kyocera Selee Shorewood Packaging Spearman Foods The Warm Company (1) The Warm Company (2) UPM Raflatac (1) UPM Raflatac (2) UPM Raflatac (3) Vanir Energy WilsonArt TOTAL
NEW
200 6,000,000 1,800,000 41 750,000 29 500,000 5 9,000,000 75 5,700,000 11,000,000 10,000,000 22 1,900,000 45 20,000,000 55 1,000,000 4 3,000,000 6 3,200,000 9 62,500,000 210 40,000,000 70 24,000,000 110 2,400,000 1,300,000 17 481,200,000 1,929
SAVED 325
115 200
13 16
1,503
Photos courtesy of the Hendersonville Times-News.
2008 –2009 a nnua l rEPOrT
On Tuesday, June 23, 2009, business and government leaders gathered at the Henderson County Historic Courthouse to announce three job creation and investment expansions for BorgWarner, Warm Company and Wilsonart. Earlier in the year, the Henderson County Board of Commissioners expressed their support of the proposed expansion projects and extended economic development assistance to encourage the projects to take place in Henderson County. Both the BorgWarner and Wilsonart projects received similar assistance from the Fletcher Town Council. The three projects resulted in $17 million in new investment, retention of 28 jobs and the creation of at least 26 new jobs.
Öhlins USA Öhlins USA operates one of the nation’s leading motion simulators, which can be adapted to reproduce driving and track conditions for nearly any road course throughout the world.
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advocacy T
he Partnership was actively engaged in a number of core advocacy issues and activities over the past year. Our focus was to participate in the public process, speaking on behalf of business and industry in henderson County. Our actions have helped to solidify positive outcomes that ensure continued economic health and opportunity for the industries that we defend and encourage.
Job development investment Grant (JdiG) and article 3J Credits
COMPANY PROFILE
senator apodaca, representative Justus and representative Guice all helped to retain and continue the tools that allow north Carolina to compete to create quality jobs. They each voted to extend the sunset of the JDiG program from 2010 to 2016. The unC Center for Competitive Economies presented a flawed study to the General Assembly recommending elimination of the article 3J Credits – an im-
portant machinery and equipment and job creation tool often used for existing industry expansions, and the only statutory program that nC offers. Partnership staff participated in a focus group with the unC Center, in addition to serving on the nC Economic Developers association legislative Committee to successfully retain article 3J Credits, again with the support of our local legislative delegates.
Company: Higher Source Aviation Industry: Aviation + Aerospace Aerospace and aviation-related companies continue to play a significant role in Henderson County’s long-term economic development strategy. Higher Source Aviation is an international leader in the production of refurbished components used in commercial and military grade aircraft.
2008 –2009 a nnua l rEPOrT
Henderson County Water supply and distribution task force
in response to the onset of regional drought conditions and growing demands for a stable supply of public water, henderson County along with each municipality formed this task force. hCPED staff was appointed to the task force to represent the business community. The group was designed to identify areas in which water resources could be improved or secured for long-term access. The Partnership continues to advocate for access to water resources to support the expansion of existing industry and to improve accessibility and service to industrial property.
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City of Hendersonville Comprehensive Planning Process
hCPED staff were asked to present to the steering Committee as they gathered input to create a newly revised comprehensive plan. The Partnership’s presentation included tax and employment data, mapping of property suitable for industrial development and a request that the committee continue to incorporate healthy economic development into City plans. in addition to making a formal presentation, hCPED staff attended public workshops and sessions to advocate for economic development.
enhanced access to Western Carolina university Programming in late 2008, the Partnership distributed an electronic survey to the industrial executives in henderson County focused on assessing program needs that could be met by WCu. an overwhelming 72% of respondents indicated that a Bs in Engineering Technology degree program would be the most beneficial offering to their workforce. The
second highest response was 25% for a Masters in Business administration. The data indicating a strong need for enhanced access to engineering and engineering technology programs was further underlined by visits to six henderson County manufacturers with hCPED staff and Dean of WCu’s Kimmel school, Dr. robert McMahan.
2008 –2009 a nnua l rEPOrT
nC department of Commerce raleigh Presentation in July 2008, eight members of the hCPED Board of Directors and staff traveled to raleigh to meet with nC Department of Commerce staff in an effort to raise awareness of our offering. hCPED presented to nCDOC’s Business & industry Developers team of staff covering current demographics, local assistance programs,
sites and buildings and product development efforts. following the presentation, we hosted a lunch, sponsored by PsnC Energy, which offered a more casual opportunity for hCPED to network with Commerce staff and discuss economic development opportunities in henderson County.
federal Card Check legislation
The hCPED Board of Directors voted unanimously to adopt a resolution in opposition to then house Bill 800, the Employee free Choice act. north Carolina has long been recognized as the least unionized state in the nation, and henderson County has no unionized manufacturing labor, a characteristic which is vital to the success our local businesses and a direct link to our region’s ability to compete in the global marketplace. Card Check legislative compromises continue to threaten the secret ballot process currently in place.
Higher Source Aviation The company is a FAA-licensed service center for overhaul and repairable assemblies for parts ranging from engines, propellers, expendables, ground support equipment, landing gear, avionics, and rotables.
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Members & Investors Presidential
Cason Companies, Inc. City of Hendersonville Cooper Construction Co., Inc. Dixon Hughes, PLLC Duke Energy First Citizens Bank Henderson County
Executive
AT&T BB&T Carolina Specialties Construction, Inc. Egolf Motors Elkamet Flavor 1st Growers & Packers Fletcher Business Park
General
APAC Carolina, Inc. – Asheville Division Advanced Business Equipment Advanced Technical Welding, Inc. Alljuice Food & Beverage, LLC Ameriprise Financial Services, Inc. ArvinMeritor Automotive, Inc. Atlas Bolt & Screw, Inc. Bazzle & Carr, PA Beverly-Hanks & Associates Blue Ridge Community College Blue Ridge Metals Corporation Blue Star Camps, Inc. Brown & Bigelow Carl E. Shaw, CPA, PLLC Carolina First CoveStar Investment Realty Advisors Earle Insurance Excel Consulting Group, LLC Flat Rock Playhouse Forest Commercial Bank Henderson County Chamber of Commerce Henderson County Public Schools
HomeTrust Bank Kimberly-Clark, Berkeley Mills Moore & Son Site Contractors Morrow Insurance Agency, Inc. Mountain 1st Bank & Trust PSNC Energy SELEE Corporation
SunTrust The Times-News Town of Fletcher Town of Mills River UPM Raflatac, Inc. Wal-Mart Stores, Inc. #1242 Western Carolina University
Friday Services Inc. Glade Holdings, Inc. Henderson Oil Company Hunter Automotive Group IMOCO, Inc. Investors Realty Group McCarroll Construction Progress Energy
RBC Bank Reaben Oil Company Southern Alarm & Security The Van Winkle Law Firm The Waverly Inn Thos. Shepherd & Son Inc. Town of Laurel Park William G. Lapsley & Assoc.
Henderson County Travel & Tourism Hendersonville Board of Realtors, Inc. Hendersonville Country Club, Inc. Hendersonville Home Builders Association Hendersonville Printing Company Highland Lake Inn Holiday Inn Express IPM Corporation Kanuga Conferences, Inc. Keen Impressions, Inc. Kelso Advertising Kenmure Properties, Ltd. Kenneth R. Youngblood King Street Professional Center Lewis Real Estate Macon Bank Margaret R. Pardee Memorial Hospital McDonald’s — Edwards Group McNutt Service Group, Inc. Miller Brothers Miller’s Laundry & Cleaners, Inc. Monarch Property Group
Morosani & Associates Nappier & Turner Construction Co., Inc. National Technical Honor Society Norm’s Minit Marts Oates Realty ERA Park Ridge Hospital Pepsi-Cola Bottling Co. of Asheville S&ME Southeastern Sureties Group, Inc. Southern Concrete Materials Standard Tytape Company Successful Financial Strategies Summit Marketing Group The Manual Woodworkers & Weavers, Inc. Turf Mountain Sod United Community Bank United Way of Henderson County Village of Flat Rock Vocational Solutions of Henderson County Wachovia Bank Wachovia Securities
2008 –2009 a nnua l rEPOrT
focused on Quality Job Creation & retention for 15 years
2009 marks 15 years of an organized economic development effort for henderson County, north Carolina. We continue to benefit from the support of our Members and investors, and want to say “Thank you” to all who have contributed time, talents and resources to the Partnership during the past 15 years!
1994
The Committee of 100 of the Greater hendersonville Chamber of Commerce was formed.
1998
Private funds were first incorporated into revenue sources, resulting in a budget that reflected equitable participation through public and private sources.
2002
The lockwood Greene Economic Development Master Plan was released. The plan included an extensive labor study, a target industry analysis, and a marketing plan.
2003
The transition from the Committee of 100 to the henderson County Partnership for Economic Development took place, giving the organization a name that more clearly identified its scope and mission.
2006
The Partnership for Economic Development adopted articles of incorporation and By laws, and was approved for tax-exempt status as an independent entity.
2008-09 Chair of the Board, Adam L. Shealy, thanks 2007-08 Chair Sandy Tallant for outstanding service, guiding the Partnership with steady and strategic leadership.
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828-692-6373 ■ www.strategiclocation.com
mission statement
The Henderson County Partnership for Economic Development, Inc. is the professional economic development entity for Henderson County. It works to: attract and retain quality jobs; solicit new business compatible with the assets and values of Henderson County; promote Henderson County’s business image; assist expansion of existing companies; and enhance Henderson County’s overall quality of life.
annual report Henderson County PartnersHiP for eConomiC develoPment, inC.
15 years of Creating and retaining Quality Jobs
Henderson County Partnership for Economic Development, INC.
2008-09
Board of Directors Officers
Adam Shealy, Chairman The Van Winkle Law Firm Sandy Tallant, Past Chair Duke Energy Mark Stone, Chair Elect First Citizens Bank Nathan Kennedy, Treasurer BB&T Chip Gould, Product Development Chair Cason Companies, Inc. Kelly Leonard, Marketing Chair Forest Commercial Bank Chris Burns, Chamber Chair 2008 Summit Marketing Group, LLC Greg Burnette, Chamber Chair 2009 First Citizens Bank Andrew Tate, President & CEO Henderson County Partnership for Economic Development
Directors
Chairman Ervin Bazzle Henderson County Board of Public Education Gus Campano Glade Holdings, Inc. Tom Cooper Cooper Construction Company Councilman Hugh Clark Town of Fletcher Rob Cranford Morrow Insurance Carsten Erkel Elkamet
Jim Hall Investors Realty Group
Mayor Greg Newman City of Hendersonville
Don Hallingse PSNC Energy
Dr. Molly Parkhill Blue Ridge Community College
Lynn Johnson Dixon-Hughes, PLLC
Mayor Bob Staton Village of Flat Rock
Mayor Henry Johnson Town of Laurel Park
Mayor Roger Snyder Town of Mills River
Dave Modaff Friday Staffing Services
LaVoy Spooner AT&T
Chairman Bill Moyer Henderson County Board of Commissioners
Debbie Wilkinson Wachovia
letter from the Chairman 2009 marks 15 years of an organized economic
development effort for henderson County, north Carolina. During those 15 years the henderson County Partnership for Economic Development has been highly adaptive in pursuit of quality jobs; streamlining our offerings, improving our assets and mitigating our perceived weaknesses. all the while, we continue to remain focused on maintaining our foundation, and our responsibility to grow and retain quality jobs in henderson County. The assets of our County continue to shape the sectors that we target in our marketing efforts. Whether the industry involves metals, automotive, aviation or plastics, henderson County offers an impressive combination of quality workforce, logistics, infrastructure and government support. Deeper into this report, we will highlight these four sectors and profile some existing industries within those sectors. One unwavering foundational element of our organization is our commitment to those businesses that already have a presence in henderson County. We continue to listen closely to the needs of our existing industry and develop solutions with their direction. Our organization serves as an advocate for more than 135 manufacturers and assemblers in henderson County; acting on their behalf so that they may focus on producing their products and running their businesses.
This past year has shown that our focus on existing industry is not just the right thing to do — it is also the smart thing to do. While many new construction projects have been on hold or delayed indefinitely, consolidation projects have made up a significant portion of our project volume. Of the seven projects that resulted in job creation, retention and/or investment over the past year, all involved companies that already had a presence in henderson County. in each of these instances, our organization and partners competed against other communities across the united states and internationally to win the projects. When these businesses had to make difficult decisions about which facilities were vital to their operations, and which locations would be included in their future plans, henderson County came out on top. The capacity to be adaptive is afforded through public and private sector investors that recognize the importance of our work and continue to choose to invest in our efforts. We have been afforded the opportunity to be proactive in economic development thanks to the dedicated leadership of our Board of Directors and our Members and investors. i would like to sincerely thank all who have contributed time and talents to the Partnership during the past 15 years, and assure you that we remain focused on maintaining our foundation by continuing our efforts to retain and create quality jobs in henderson County.
adam l. shealy The van Winkle law firm 2008-09 Chairman of the Board
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hEnDErsOn COunT y Pa rTnErshiP fOr ECOnOMiC DEvElOPMEnT
existing industry T
he henderson County Partnership for Economic Development continues to operate an aggressive and proactive industrial retention & Expansion Program (ir&E). The ir&E Program is a collaborative effort between hCPED, Bill Payne of the nC Department of Commerce Western Office and Julie Thompson and Shanda Bedoian of Blue ridge Community College. The program is focused on: • Helping Henderson County industry become more competitive • Removing obstacles that prevent existing industry from remaining in operation and/or growing in henderson County
metrics
• Demonstrating that the community appreciates industrial investment in henderson County.
COMPANY PROFILE
4
Industrial Retention & Expansion Visitations 36 Contact with Industry Stakeholders 122
Company: Advanced Technical Welding Industry: Metals + Machinery Advanced Technical Welding represents a core cluster of metal fabrication and welding found throughout Henderson County, NC. Advanced Technical Welding specializes in repair welding of injection tooling, hardened tool steels, exotic materials, USDA, FDA, FAA and other aviation-related welding.
The primary vehicle to accomplish these objectives is face-to-face visits with industrial executives in henderson County. The visits are customized and tailored to each company’s scope, size, product and facility needs. visits provide company executives with up-todate information regarding local trends and initiatives, as well as connecting industries with local resources and business opportunities. ir&E visits also provide an outlet for manufacturing executives to discuss business developments, industry trends and concerns that may be on the horizon.
2008 –2009 a nnua l rEPOrT
On July 1, 2008, the ir&E Program advanced to include a professional business tracking software license specifically designed for economic development needs. Executive Pulse is an interactive, web-based tool that allows hCPED, nC Commerce and Blue ridge Community College to confidentially share information and assign follow-up responsibilities on henderson County industries. The tool ensures we are responsive to issues impacting our local manufacturers in addition to being able to report on the health of existing industry in aggregate form.
Since 1994, the Henderson County Partnership for Economic Development has assisted clients resulting in $481,200,000 of new taxable investment, helping to create and retain 3,432 jobs. Existing industries that had a presence in Henderson County account for 91% of that total investment and 85% of all new and retained jobs.
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hEnDErsOn COunT y Pa rTnErshiP fOr ECOnOMiC DEvElOPMEnT
industrial executives forum O
n february 25, 2009, the Partnership held its 2nd annual industrial Executives forum designed to bring together local manufacturers, key stakeholders and elected officials. John Bell of Excel Consulting Group and Dan Ostergaard of Western Carolina university’s institute for the Economy and the future delivered remarks centered on the theme of operating a business in a volatile economic climate. Presentations were based on case study analysis, best practices, and economic projections for Western north Carolina and henderson County.
The forum included small-group breakouts and a follow-up survey designed to collect feedback and identify opportunities for hCPED to improve the business climate of henderson County. forum participants asked that hCPED assist by: • Better leveraging the buying power of Western north Carolina on behalf of henderson County manufacturers • facilitating and building platforms for connecting manufacturers and improving communication between them and allies • Developing non-traditional tools to expose new business opportunities.
COMPANY PROFILE
as a direct result of this feedback, hCPED developed an industrial Products & suppliers Directory, focused on connecting buyers of significance in WNC with local sourcing opportunities in hender-
Company: Skyline Plastic Systems Industry: Plastics The development and production of advanced plastic materials continues to be a primary industry cluster in Henderson County and Western North Carolina. Owners Doc and Debbie Smithson at Skyline Plastic Systems specialize in plastic injection molding.
2008 –2009 a nnua l rEPOrT
son County. hardcopies of the publication, in addition to a web-based version, were developed with the assistance of manufacturers. The directory includes basic company information, detailed description and product photos. The directories were distributed to all henderson County manufacturers and large procurement entities to help connect our industries with prospective business opportunities. To better facilitate communications and problem solving, we
established a linkedin hCPED group where members can share information, ask questions and discuss pertinent issues. hCPED also actively uses a Twitter account to share information about our activities and opportunities for henderson County manufacturers. Our keynote speaker for the forum, Daniel Ostergaard, offered export plan assistance to henderson County manufacturers through his international Trade course at Western Carolina university. WCu
John Bell, President of Excel Consulting Group, and Daniel Ostergaard, Executive Director for Western Carolina University’s Institute for the Economy and the Future addressed more than 100 participants at the Industrial Executives Forum. John highlighted a number of key components to implement when striving to navigate and thrive in a down economy. Dan presented demographic data, trends, public policy developments and projections indicating a vibrant future for the manufacturing community in Henderson County.
students held initial interviews with company officials, and then began researching international export opportunities that were specific to each company and product. Manual Woodworkers & Weavers, leisure Craft and Dampp-Chaser were each presented a complete export assistance plan and detailed recommendations in how to move the plan forward.
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marketing W
hile the volume of leads generated and identified during the previous year slightly outpaced the previous year, marketing efforts were intensified to reach that level. In late 2008 it became clear that the standard holiday lead-stall around December was going to extend well into the close of the fiscal year. Closer inspection led us to learn that the bulk of our activity revolved around consolidation planning. Businesses were liening assets, prioritizing facilities, and shifting strategy — and our focus was to get in front of them before decisions were made. During the 2008-09 year we continued traditional marketing efforts with our partners like CarolinaWest, advantageWest and the nC Department of Commerce. We also initiated efforts to connect stakeholders and promote our offering through social media outlets. in addition to estab-
lishing a linkedin hCPED group for those engaged in our efforts, we also jumped head-first into Twitter. While social media efforts are less tangible and difficult to measure, we can point to several inquiries which we received the early lead on because of our engagement.
Leads Generated/Identified that HCPED Responded To Participation in Targeted Call Missions or Trade Shows Projects: Site Visits to Henderson County by Active Clients Unique visitors to www.hcped.org
metrics
8
105 16 21 11,637
Many of our recruitment-focused call missions and participation in trade shows included complementary visits to out-of-town headquarters of existing industry. a late March trip to the Detroit, Mi area focused on attracting automotive component suppliers that do business with BMW and might also do business with the nearly completed vW facility in Tn. This effort put us in front of several companies that have high interest in locating a southeastern us facility, in addition to allowing us the opportunity to meet with decision makers at arvinMeritor, BorgWarner and Continental Teves at their headquarters. During a CarolinaWest call mission to the Dallas, TX area, primarily focused on site-location consultants, hCPED staff remained in the area to call on aviation and alternative energy companies. another CarolinaWest call mission to the new Jersey and new york area led to a
2008 –2009 a nnua l rEPOrT
visit with autronic Plastics incorporated, parent company of aPi south in fletcher. as in years past, hCPED worked with the north Carolina Department of Commerce on a variety of marketing efforts including the southeast us / Japan Conference in raleigh, nC, the national Business aviation association meeting in Orlando, fl, and the industrial asset Management Council in asheville, nC. We continue to implement a collaborative approach in marketing, focused on strengthening our offering while leveraging limited resources.
marketing activities, 2008-09 Mission to Atlanta (NC Commerce) Presentation to NC Commerce (HCPED) Mission to Charlotte (CarolinaWest) Southern Environment & Energy Expo (HCPED) Parade of Pistons (HCPED) National Business Aviation Association (HCPED) Southeast US / Japan Conference (NC Commerce) Mission to Dallas (CarolinaWest and HCPED) Mission to Detroit (HCPED) Site Selectors Invitational (NC Commerce) Industrial Asset Management Council (NC Commerce) Le Bourget Air Show (NC Commerce)
Skyline Plastic Systems Final products are utilized in domestic and international markets, ranging from specialty designed horticultural products to parts utilized in the newly released 2010 Chevrolet Camaro.
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Product development a
COMPANY PROFILE
vital component of the Partnership’s economic development strategy involves the preservation and preparation of buildings and property suited for industrial development. Our engagement in product development efforts involves private partners, and infrastructure and support allies all with a shared vision. The fletcher Business Park and ferncliff industrial Park illustrate how our public-private partnership works best.
Company: Öhlins USA Industry: Automotive Components Located less than 250 miles from 11 OEM automotive facilities, professional driving circuits, and industryleading engineering and test centers, Henderson County continues to be an attractive location for manufacturing and distribution operations related to the automotive industry. Öhlins USA is the North American distributor and principal service center of the world’s leading performance suspension components for motor vehicles and motorcycles.
Over the past year we were fortunate to have had the opportunity to participate in the Duke Energy site readiness Program with ferncliff industrial Park. The program consisted of an intensive process to inventory available infrastructure, identify challenges in the property’s development and evaluate the site’s marketability as client ready. The process was directed by Duke Energy’s team and Jeannette Goldsmith of McCallum sweeney Consulting. We received significant support and engagement from land-use, site planning, infrastructure, environmental and government partners to successfully complete the program. With many of the same partners, we were able to complete a significant amount of due diligence to the property including: geotechnical soil borings, threatened and endangered species study and field survey, archaeological and historic structures survey, water and sewer
2008 –2009 a nnua l rEPOrT
design engineering and permitting, and a Phase i Environmental survey assessment. hCPED is fortunate to work with a number of private businesses which invest their resources into existing buildings. in December 2006, a team of local business leaders purchased the former steelcase building in fletcher and started the transforma-
tion to fletcher Business Park. The team has made more than $4 million in capital improvements to the 900,000-square-foot facility focused on transitioning the building from a single-purpose furniture manufacturer into a unique, multi-tenant industrial property. in november 2008, taking the renovation one step further, vanir Energy (formerly ap-
palachian Energy) announced that the 23-acre roof of the fletcher Business Park building would house the world’s largest solar thermal heating and cooling system. The building is now home to over a dozen businesses including Diamond Brand Manufacturing, Earthfare and high Gear – going from empty to 86% capacity in less than two years.
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Cumulative investment since 1994 JOBS
JOBS BUSINESS NAME Prince Manufacturing (1) Prince Manufacturing (2) Aegis Holdings ArvinMeritor (1) ArvinMeritor (2) Atlas Bolt & Screw Borg-Warner Borg-Warner Continental Teves (1) Continental Teves (2) Continental Teves (3) DuraLine Imaging Elkamet FedEx First Citizens Bank GE Lighting Systems (1) GE Lighting Systems (2) H. Putsch & Company Henderson Produce Kimberly-Clark
INVESTMENT ($)
NEW
6,000,000 650,000 1,500,000 21,000,000 32,300,000 2,000,000 31,000,000 12,500,000 100,000,000 4,300,000 8,700,000 1,000,000 6,700,000 6,000,000
100 28 22
2,000,000 1,000,000 1,500,000 39,000,000
Investments occuring in the 2008-09 fiscal year.
11 35 50 552 13 35 10 50 70 17 6 12 20
SAVED
30 700 28
70 6
BUSINESS NAME
INVESTMENT ($)
Kyocera Manual Woodworkers & Weavers Morris Broadband MTI (Medical Cable Specialist) Olympia Moto Sports Parts Unlimited (Lemans Corp.) Pepsi-Cola Printpack Printpack & Kyocera Selee Shorewood Packaging Spearman Foods The Warm Company (1) The Warm Company (2) UPM Raflatac (1) UPM Raflatac (2) UPM Raflatac (3) Vanir Energy WilsonArt TOTAL
NEW
200 6,000,000 1,800,000 41 750,000 29 500,000 5 9,000,000 75 5,700,000 11,000,000 10,000,000 22 1,900,000 45 20,000,000 55 1,000,000 4 3,000,000 6 3,200,000 9 62,500,000 210 40,000,000 70 24,000,000 110 2,400,000 1,300,000 17 481,200,000 1,929
SAVED 325
115 200
13 16
1,503
Photos courtesy of the Hendersonville Times-News.
2008 –2009 a nnua l rEPOrT
On Tuesday, June 23, 2009, business and government leaders gathered at the Henderson County Historic Courthouse to announce three job creation and investment expansions for BorgWarner, Warm Company and Wilsonart. Earlier in the year, the Henderson County Board of Commissioners expressed their support of the proposed expansion projects and extended economic development assistance to encourage the projects to take place in Henderson County. Both the BorgWarner and Wilsonart projects received similar assistance from the Fletcher Town Council. The three projects resulted in $17 million in new investment, retention of 28 jobs and the creation of at least 26 new jobs.
Öhlins USA Öhlins USA operates one of the nation’s leading motion simulators, which can be adapted to reproduce driving and track conditions for nearly any road course throughout the world.
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advocacy T
he Partnership was actively engaged in a number of core advocacy issues and activities over the past year. Our focus was to participate in the public process, speaking on behalf of business and industry in henderson County. Our actions have helped to solidify positive outcomes that ensure continued economic health and opportunity for the industries that we defend and encourage.
Job development investment Grant (JdiG) and article 3J Credits
COMPANY PROFILE
senator apodaca, representative Justus and representative Guice all helped to retain and continue the tools that allow north Carolina to compete to create quality jobs. They each voted to extend the sunset of the JDiG program from 2010 to 2016. The unC Center for Competitive Economies presented a flawed study to the General Assembly recommending elimination of the article 3J Credits – an im-
portant machinery and equipment and job creation tool often used for existing industry expansions, and the only statutory program that nC offers. Partnership staff participated in a focus group with the unC Center, in addition to serving on the nC Economic Developers association legislative Committee to successfully retain article 3J Credits, again with the support of our local legislative delegates.
Company: Higher Source Aviation Industry: Aviation + Aerospace Aerospace and aviation-related companies continue to play a significant role in Henderson County’s long-term economic development strategy. Higher Source Aviation is an international leader in the production of refurbished components used in commercial and military grade aircraft.
2008 –2009 a nnua l rEPOrT
Henderson County Water supply and distribution task force
in response to the onset of regional drought conditions and growing demands for a stable supply of public water, henderson County along with each municipality formed this task force. hCPED staff was appointed to the task force to represent the business community. The group was designed to identify areas in which water resources could be improved or secured for long-term access. The Partnership continues to advocate for access to water resources to support the expansion of existing industry and to improve accessibility and service to industrial property.
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City of Hendersonville Comprehensive Planning Process
hCPED staff were asked to present to the steering Committee as they gathered input to create a newly revised comprehensive plan. The Partnership’s presentation included tax and employment data, mapping of property suitable for industrial development and a request that the committee continue to incorporate healthy economic development into City plans. in addition to making a formal presentation, hCPED staff attended public workshops and sessions to advocate for economic development.
enhanced access to Western Carolina university Programming in late 2008, the Partnership distributed an electronic survey to the industrial executives in henderson County focused on assessing program needs that could be met by WCu. an overwhelming 72% of respondents indicated that a Bs in Engineering Technology degree program would be the most beneficial offering to their workforce. The
second highest response was 25% for a Masters in Business administration. The data indicating a strong need for enhanced access to engineering and engineering technology programs was further underlined by visits to six henderson County manufacturers with hCPED staff and Dean of WCu’s Kimmel school, Dr. robert McMahan.
2008 –2009 a nnua l rEPOrT
nC department of Commerce raleigh Presentation in July 2008, eight members of the hCPED Board of Directors and staff traveled to raleigh to meet with nC Department of Commerce staff in an effort to raise awareness of our offering. hCPED presented to nCDOC’s Business & industry Developers team of staff covering current demographics, local assistance programs,
sites and buildings and product development efforts. following the presentation, we hosted a lunch, sponsored by PsnC Energy, which offered a more casual opportunity for hCPED to network with Commerce staff and discuss economic development opportunities in henderson County.
federal Card Check legislation
The hCPED Board of Directors voted unanimously to adopt a resolution in opposition to then house Bill 800, the Employee free Choice act. north Carolina has long been recognized as the least unionized state in the nation, and henderson County has no unionized manufacturing labor, a characteristic which is vital to the success our local businesses and a direct link to our region’s ability to compete in the global marketplace. Card Check legislative compromises continue to threaten the secret ballot process currently in place.
Higher Source Aviation The company is a FAA-licensed service center for overhaul and repairable assemblies for parts ranging from engines, propellers, expendables, ground support equipment, landing gear, avionics, and rotables.
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Members & Investors Presidential
Cason Companies, Inc. City of Hendersonville Cooper Construction Co., Inc. Dixon Hughes, PLLC Duke Energy First Citizens Bank Henderson County
Executive
AT&T BB&T Carolina Specialties Construction, Inc. Egolf Motors Elkamet Flavor 1st Growers & Packers Fletcher Business Park
General
APAC Carolina, Inc. – Asheville Division Advanced Business Equipment Advanced Technical Welding, Inc. Alljuice Food & Beverage, LLC Ameriprise Financial Services, Inc. ArvinMeritor Automotive, Inc. Atlas Bolt & Screw, Inc. Bazzle & Carr, PA Beverly-Hanks & Associates Blue Ridge Community College Blue Ridge Metals Corporation Blue Star Camps, Inc. Brown & Bigelow Carl E. Shaw, CPA, PLLC Carolina First CoveStar Investment Realty Advisors Earle Insurance Excel Consulting Group, LLC Flat Rock Playhouse Forest Commercial Bank Henderson County Chamber of Commerce Henderson County Public Schools
HomeTrust Bank Kimberly-Clark, Berkeley Mills Moore & Son Site Contractors Morrow Insurance Agency, Inc. Mountain 1st Bank & Trust PSNC Energy SELEE Corporation
SunTrust The Times-News Town of Fletcher Town of Mills River UPM Raflatac, Inc. Wal-Mart Stores, Inc. #1242 Western Carolina University
Friday Services Inc. Glade Holdings, Inc. Henderson Oil Company Hunter Automotive Group IMOCO, Inc. Investors Realty Group McCarroll Construction Progress Energy
RBC Bank Reaben Oil Company Southern Alarm & Security The Van Winkle Law Firm The Waverly Inn Thos. Shepherd & Son Inc. Town of Laurel Park William G. Lapsley & Assoc.
Henderson County Travel & Tourism Hendersonville Board of Realtors, Inc. Hendersonville Country Club, Inc. Hendersonville Home Builders Association Hendersonville Printing Company Highland Lake Inn Holiday Inn Express IPM Corporation Kanuga Conferences, Inc. Keen Impressions, Inc. Kelso Advertising Kenmure Properties, Ltd. Kenneth R. Youngblood King Street Professional Center Lewis Real Estate Macon Bank Margaret R. Pardee Memorial Hospital McDonald’s — Edwards Group McNutt Service Group, Inc. Miller Brothers Miller’s Laundry & Cleaners, Inc. Monarch Property Group
Morosani & Associates Nappier & Turner Construction Co., Inc. National Technical Honor Society Norm’s Minit Marts Oates Realty ERA Park Ridge Hospital Pepsi-Cola Bottling Co. of Asheville S&ME Southeastern Sureties Group, Inc. Southern Concrete Materials Standard Tytape Company Successful Financial Strategies Summit Marketing Group The Manual Woodworkers & Weavers, Inc. Turf Mountain Sod United Community Bank United Way of Henderson County Village of Flat Rock Vocational Solutions of Henderson County Wachovia Bank Wachovia Securities
2008 –2009 a nnua l rEPOrT
focused on Quality Job Creation & retention for 15 years
2009 marks 15 years of an organized economic development effort for henderson County, north Carolina. We continue to benefit from the support of our Members and investors, and want to say “Thank you” to all who have contributed time, talents and resources to the Partnership during the past 15 years!
1994
The Committee of 100 of the Greater hendersonville Chamber of Commerce was formed.
1998
Private funds were first incorporated into revenue sources, resulting in a budget that reflected equitable participation through public and private sources.
2002
The lockwood Greene Economic Development Master Plan was released. The plan included an extensive labor study, a target industry analysis, and a marketing plan.
2003
The transition from the Committee of 100 to the henderson County Partnership for Economic Development took place, giving the organization a name that more clearly identified its scope and mission.
2006
The Partnership for Economic Development adopted articles of incorporation and By laws, and was approved for tax-exempt status as an independent entity.
2008-09 Chair of the Board, Adam L. Shealy, thanks 2007-08 Chair Sandy Tallant for outstanding service, guiding the Partnership with steady and strategic leadership.
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828-692-6373 ■ www.strategiclocation.com
mission statement
The Henderson County Partnership for Economic Development, Inc. is the professional economic development entity for Henderson County. It works to: attract and retain quality jobs; solicit new business compatible with the assets and values of Henderson County; promote Henderson County’s business image; assist expansion of existing companies; and enhance Henderson County’s overall quality of life.
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