Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 24, 1993 TAG: 9301260393
SECTION: NEW RIVER VALLEY ECONOMY PAGE: 4 EDITION: NEW RIVER VALLEY
SOURCE: BECKY HEPLER STAFF WRITER
DATELINE: LENGTH: Long
WHAT MAKES COMPANIES MOVE HERE?
What is it that makes a company pack up and move to another state or country?What words of sweet nothing do economic development specialists whisper into industrial ears that make them pull up those New Jersey roots and head for a place like the New River Valley?
And what do these companies think about their decision? Was it worth it? Do they like all that they found?
This past year, the New River Valley has seen several new companies come to the area, companies that were heavily recruited by the various economic development offices.
While that effort tooks lots of time and money, the payback was sufficient because of construction projects for the buildings and the possibility of more than 300 new jobs for the area.
Rene Composite Materials Inc., Plymouth Inc. and BBA Friction Inc. are very different kinds of companies with different agendas. But each was looking for an excellent work force, inexpensive operating costs and a good location accessible to their markets.
The New River Valley had that and much more.
"We did a very traditional market survey, concentrating on various economic factors such as lower operating costs, good work force, etc., and we found several locations that had that," said Peter Mueller, vice president of finance at BBA Friction. "Ultimately, the decision came down to subjective factors, matters of personal preference, and the New River Valley won."
Rene is a Canadian company that makes heavy-truck hood parts. Company officials signed the lease for its shell building at the Giles County Mountain View Industrial Park during the summer, but county officials had been working with the company since April 1991.
Currently, the company has hired 35 people, but it expects to grow to 120 workers by 1995.
Rene officials knew that Virginia was the "bull's eye" of their marketing maps, so they started their search with the state's economic development office, which put them in contact with Giles officials.
"We chose Giles County because of its proximity to our customers," said Darrell Mayton, plant manager. Rene makes truck body parts for Mack Trucks, Peterbilt, Kenworth and Volvo-GM, which have plants in South Carolina, Pennsylvania, Ohio, Tennessee and Virginia.
"All of these are within 200 to 300 miles from our plant," he said.
Giles also had a 50,000-square-foot shell building available in its industrial park. Rene has signed a lease agreement for the building that includes an option to renew at the end of five years.
Mayton said the whole experience of moving and settling into Giles County has been very positive.
"It's everything we expected," he said. "There were no surprises and no disappointments, from the quality of the work force to the size of the building."
The availability of a building also was a drawing card for Plymouth. The New Jersey notebook manufacturer's lease was scheduled to expire in 1991, so in 1989 company officials started looking for another home, concentrating their efforts in Virginia, Florida, North Carolina and Texas.
"Virginia was the most aggressive in wanting us to come," said Frank Pappert, vice president for finance.
The company narrowed the choice to Suffolk, Farmville and Radford. It was leaning toward Farmville, but legal problems were holding up the construction of a building.
Radford had the industrial park, complete with water and sewer. Also, the contractor who would have constructed the plant in Farmville was from Dublin and promised to have the Radford building finished in time for the company to make its move. Plymouth agreed, and the building was finished a month ahead of time.
"You hear a lot of horror stories in situations like this, but it didn't happen here," Pappert said. "We weren't shipping out enough initially, but by March we were as efficient as we were in New Jersey."
Part of this efficiency could be related to the work force. Indeed, economic development specialists commend the work ethic of New River Valley employees and their commitment to their jobs.
Moreover, the wretched economic situation that has generated mass layoffs has created a work force hungry for jobs.
"Our workers are at least as good as we expected and probably a little better," Pappert said. "They're more educated than in Jersey and are more interested in improving their education."
The one area that did create a few problems was finding qualified press people experienced in four-color process. Pappert said the company's solution was to find people that could be trained.
There also was a problem in finding mechanics for the older equipment moved to the new location.
People also were the drawing card for BBA Friction. The London-based company manufactures asbestos-free brake parts and it was looking for its first American location.
The warm reception granted it by Pulaski County and other New River Valley officials was a big inducement - that and the slower-paced, naturally beautiful way of life.
While the company has been pleased with work force it is hiring, there has been one drawback to this less-than-urban setting.
"It took us longer than we expected to fill some of our management positions, which was surprising," said Frank Mueller. "But I guess that you are more likely to find those kinds of skills in urban areas."
Otherwise, company officials have been most satisfied with the move, citing the cooperative nature of the authorities, the community spirit, the natural beauty and outside recreational opportunities.
In fact, officials of all three companies found agreement in these factors. There is only one thing missing.
"What this area needs is an ocean," said Pappert.