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Saturday, January 23, 2010

The State of Hickory - January 2010

One year ago this week, I wrote about the State of Hickory in 2009. I feel that the Hound has had an impact on our local leaderships' thought process over the past year. I believe that they would be reluctant to admit that, for in doing so they would lend to the Hound a sense of legitimacy that they are uncomfortable in dealing with. We are part of our cultures new media and this mission is ever evolving. They don't know how to deal with this new media and frankly I am only trying to fulfill a role that somehow disappeared from our local culture long ago.

Personally, recognition does not matter to anyone associated with the Hound. Why would all of the time, efforts, and personal risks be put at stake over petty concerns such as ego. Ego usually comes from materialistic and simple desires. Look at Harry Hipps and myself. We enjoy associating ourselves with the underdogs and the humble, because from down here the greatest rewards will be found, we will stand at the forefront of cultural change and justice.

In dealing with that certain level of humility, you should not think that we aren't confident in our mission, we are. We believe that Catawba County, the Economic Development Corporation, and the Chamber of Commerce have taken steps towards addressing our area's future. Sadly, we don't think the City of Hickory is on the same page as everyone else. Most everyone recognizes that our young people have been leaving this area in droves and the median age of our community is advancing rapidly, but the City of Hickory has insisted that retirees remain the focal point, even when it has been shown that the majority of people understand the long range implications of such an endeavor. It is clear that our demographics are moving way out of kilter.

The most important accomplishment that the Hound has brought to bare is focusing on the fact that the lack of jobs and job quality is the most important issue our community faces. I think that the mindset has changed to where we are all finally on the same page when it comes to the jobs issue. Unfortunately, since we were late to the party, it is going to be a harder struggle to get back to level ground and, as Danny Hearn and Scott Millar have stated, we must stabilize the economy before we can begin growing again. The key is going to be how we go about taking action on the jobs issue.

The people of Hickory have demonstrated their ambivalence about city leadership and I am not saying this to belittle our city leadership. Approximately 2,300 people (out of an electorate of over 27,000 people = 8.5%) voted in the last election. No one ran against Mayor Wright or Alder Sally Fox, Alder Jill Patton was overwhelmingly re-elected, and the only change was that Hank Guess soundly defeated Z. Anne Hoyle. I don't know why so few people voted in Hickory. My thought process leads me to believe that either people don't care or they think that Hickory City Council is irrelevant in the face of the power of Washington and Raleigh. Either mindset is a disastrous statement about Hickory's future.

We still have the same economic problems as one year ago and sadly the exact same economic outlook for the immediate future. But, we can't blame Washington or Raleigh. Look at the city bragging about all of the stimulus money we received from Washington and it has been stated that statistically the State of North Carolina invested over 40% of it's Economic Development Dollars in Catawba County in 2009. Can we really say that it is us against the world when we can clearly see that money is flowing to this area from the State and Federal Government?

What should Hickory's priorities be moving forward? If our leaders continue to be intent on blaming others for our woes, then it is time for Hickory's leaders to step up to the plate and do something about changing the perception of how Hickory is viewed and treated by those "others."

Hickory needs a strong legislative strategy. The City and other leaders in the area need to step up to the plate and begin to aggressively lobby for a new Economic Development Region to be created by the State Legislature; combining some of Advantage West and the Charlotte Partnership regions and placing Hickory as the hub of said region. Hickory can either continue to blame others for our economic lot in life, or Hickory can stand up and take control of our own economic future and destiny. This would also give our do nothing legislators (Allran/Hilton) something to focus on and work toward. If they can't, or are unwilling to deliver, we have all the more reason to replace them both.

I think our main focus must be on economics (Jobs and Capital obtainment, creation, and infusion), everything else is secondary. Moreover, by focusing on economics, everything else should fall in place.

Hickory's current social structure problems:

1 - ineffective local government.
2 - lack of open, vigorous debate on public policies.
3 - local media's unwillingness to stimulate open, public debate on issues that truly matter.
4 - local citizens' apathy toward their community.
Hickory's (possible) solutions:
1 - This is an election year. We have to have accountability from elected officials. We have to hear where they stand on the issues and what strategies they are looking forward to introducing and implementing during the upcoming term.

2 - Hickory Young Professional's Group is completely underutilized. These are our best and brightest young people. They must be groomed for participation and future leadership positions. As this group goes, so will the future of this community. These are the tender plants of Spring that have the potential of producing huge rewards in the near future or will they wither and find the path of least resistance by moving out of here before we can reap that harvest.

3 - I really would like to see a point-counterpoint discussion of issues done in the Hickory Daily Record and on Hal Row's First Talk show. We need a lively and vigorous discussion of the issues and these are truly the only media forums devoted to this area. Give everyone the topics and/or questions ahead of time and let them really think about it and then let's truly go into some depth on pertinent issues. Frankly, I am sick of hearing the same ole talking points bandied about over and over and over again by the same ole usual suspects. You want to sell some papers? You want to sell some ad time? Free and Effective Content. Let's Go.

4 - The idea of an Economic and Science Fair is sound. Local businesses and government can sponsor the event. We just need to get the ball going and get the word out so that folks can get started. I could envision holding the first such event in the early Spring of 2011. Why couldn't Alexander County, Burke County, Catawba County, Lincoln County, and the City of Hickory contribute $10,000 each = $50,000. Pepsi, CommScope, Corning Cable, EDC, etc $10,000 each = Grand total $100,000+. The other municipalities in the metro could also invest. Set-up a 501(c)3 non-profit to oversee the "Fair"; as an offshoot possibly, we could see a private "micro-lending" organization facilitate the implementation of ideas, concepts, innovation and inventions that would come out of such an event.

5 - We have to continue the "good fight" against the status quo. It is a conflict of human instincts to want better, while at the same time wanting to feel a sense of comfort and security. We have to understand that any level of change will bring uncertainty and therefore anxiety. We can no longer allow officials to tell us this is going to be our year. We have to make it our year. There is a reason why we have been behind the 8-ball. Sometimes it is imperative that you rock the boat and these are those times. Rocking the boat will separate the wheat from the chaff.
The Mayor has been asking for specifics, well in my opinion you can't get any more specific than what I have pointed to above. We can continue to sit around talking and make excuses or we can take some action. These aren't ambiguous items. These are doable.

I am not going to belittle Brownfields, Operation No vacancy, or Graffiti, because these issues are relevant to our community, but they will not change the dynamics of the local economy. We need to have a bold agenda of action that will attack the negative economic momentum we are suffering from on all fronts. We have to change the mindset of the people around here. We have to get people to care about their plight and help them to see that they have a role to play in solving their own problems. There is no magic bullet.

Personally, I get tired of being a broken record, but why is that? Because nothing gets changed or resolved. We have people in positions of power that are tone deaf. The same small cadre runs around from group to meeting to function and they don't see the big picture. Changing people, and getting a larger perspective, is more important than changing venues. They don't see what the average person in this community is going through. This community will only be as strong as its middle class and that middle class is rapidly dwindling.

For far too long, we have seen leaders in the community that have served their own special interests instead of representing everyone in the community. The same sections of town continue to get attention, while the same orphaned areas in the community continue to become more and more dilapidated. The owners of these dilapidated buildings are not suffering anywhere near as much as the people who live in the neighborhoods surrounding them. It is the owners of these buildings who have dropped the ball and it is they who should fix their own building or please do the responsible thing and tear it down. I am curious to know how many of these disrepaired buildings are associated with absentee owners who no longer live in Hickory and thus aren't constantly reminded of the blight?

Poor people have codes enforced on them expeditiously, everyone remains up in arms about the old Buffalo's site that has seen the building demolished, yet the old D&D Trucking building continues to rot on Hwy 127, in the heart of downtown, with nary a peep to be heard. It is these kinds of arbitrary judgments and governance that leave many of us wondering about justice. We have been told that most of these buildings are not fit for modern manufacturing and it is clear that the real estate market will not be coming back any time soon. Plus, we are not going to see the kind of population demand and capacity that would demand that much mixed use or retail in these areas.

That means that these buildings could very easily sit around for decades and at that time they will probably be torn down anyway. Operation Tear It Down would reduce the number of old buildings, would eliminate the worst of the lot, and increase the value of the most viable buildings. It would also be the best alternative in cleaning up some of Hickory's most blighted areas. People are going to have to realize that these are just buildings. Marketplaces are determined by people, not buildings. If these buildings aren't viable, then they just aren't viable.

If something is not done Hickory will become irrelevant, if it isn't already. Look where the growth is in this area. It is in the eastern part of the county. Why is that? Because it is being pulled by gravitation towards Charlotte's economy, which while in recession is a lot more dynamic than Hickory's and that isn't necessarily because of size. Hickory is unfortunately built around keeping things cheap and cheap has a tendency to feed off of itself. We can't sell $250,000 condos, have nice gourmet cuisine, specialized bakeries, operate top-notch clubs, or do anything to attract industries of "the finer things in life" until we fix the economic structure of this community. We just don't have enough demand to create a viable market. People either cannot or will not pay for quality. Culturally, most people in this city don't understand what quality is and they are willing to bargain over it. As much as cheap begets cheap, quality begets quality.

I am told by mentors that we are in a generational fight. They tell me that the younger generations are simply going to have to wait their turn to bring forth ideas focused on growth. Folks, the younger generations are folding their hands and walking away from the table already. The die is being cast. If Hickory does not bring forth bold measures, it will soon resemble a scene from the movie "Cocoon."

Things aren't going to change around here through a political process. It's about the mindset. Look at how Charlotte and Duke Power are focused on new energy. They're retaining their financial capacity and facilitating micro-lending to help entrepreneurs. They have expanded their culinary scene substantially over the years. Restaurant and Hospitality is a real industry that is thriving throughout the Charlotte area. Charlotte has a new biomass center and they have recently opened a Superfund cleanup site. UNC-Charlotte has laid biotech plans that are interconnected with the biotech center in Kannapolis. Concord's retail center and race track are attached to Charlotte at the hip.

Charlotte has sown seeds that will continue to blossom in the upcoming years and Hickory has too. We're going to have more eldercare facilities, doctors, medical industry, cheap housing, fast food, cheap groceries, cheap retail, and cheap labor. The sad thing is that when Charlotte talks about being a hub of economic growth, it stops right at Catawba County. If you don't believe me, ask people that have seen Charlotte's transportation plans looking to future growth.

The thought process that we have been led toward, and subjected to, is that we don't need anybody else and we can be our own little island. I'm sorry, but I don't believe that is a good philosophy. If you take a good look at this modern world, you will see that we are living in an age of connections. The World is a clustered network of constantly moving parts and if you don't have a solid plan that is nimble and able to adapt quickly to changes, then you are going to get bounced to the bottom. Not acting is an action.

We talk about being conservative. We talk about being self-reliant. We are going to be dependent on the government, because the government plays a major role in the medical industry and the major source of income for the elderly is Social Security. How is all of this going to work when the government starts cutting back on healthcare and slows down the growth of payments of Social Security? Does that sound like a promising future?

Hickory's scenario could play out with various enclaves of poor folks and a very wide distribution of income classes. If we continue down this path and this all plays out, we will see the vast majority of our citizens fall into the following three categories. There will be an asset rich, but cash poor class of people who may have inherited property, but cannot find a job with substantial income. They will be able to pay their bills, but they won't have much disposable income. The next group of people will be the people who are indigenous to the area, who are asset poor and just trying to make ends meet. They will be the people who fill positions in the fast food and retail industry. And the last group will be the immigrants who have come to the area. They are willing to work for minimum wage or just over minimum wage and they will do the physical labor jobs for the elderly at cheap rates.

The reality of business is that if the money's there and the market's there, you can afford to make a few mistakes. The more dynamic the market; the greater the chances of success. If the money is there, people are willing to pay for the product, and you have the patience, then eventually you will succeed. If you are in a marketplace where people aren't willing and/or able to pay the "Top Line" price, then you aren't going to be able to stay in business. In Hickory, we are getting into a situation where most people don't have the disposable income necessary to support local businesses. At the least, local area businesses have seen their margin of error cut to practically zero. On the path we are on, we are going to see more and more businesses closing their doors.

We have some leaders who think we are in suspended animation and nothing is happening economically. Granted the economy is terrible in the private sector, as far as income and capital go. But, we have to be laying solid plans to try and turn things around. There is still activity happening and we need to muscle our way in on the action. Even if we are in a stagnant economy, we have to make plans for when things do get better or they never will get better. Mindsets are being formed as relationships are occurring today. Pieces are being put in place. These plans may not get funded and may not bloom until later, but we still have to make those plans as though they are going to happen.

It's like farming. As soon as fall harvest is over and winter begins, then you have to start making plans for Spring planting. It might be a long winter. It might be a rainy Spring. You might have frost come along and kill your blossoms. There are no guarantees in good times or in bad. The only guarantee is that if you don't sow the seeds, then you won't reap the harvest.

We think that things are going to turn around and then we are going to jump on the top of the heap. It doesn't work like that. "New Energy" is already happening and we are still talking. These are just buzzwords to a lot of people around here. Heck, Scott Millar has become a buzzword that I am sure that even Scott is tired of hearing. We don't need buzzwords. We need action. If you've heard about it from the mainstream media, then that is an opportunity that is already gone.

The City recently formed a task force to study how to help small business and the only initiative that looks to be moving forward from that group is the creation of a commission to study how to help small business. I am sure that we will see a ton of money thrown in this direction. If I want to watch something chase its tail, I'll get a dog.

Scott Millar and Danny Hearn have taken action, but these gentlemen have more than a plate full. I have personally seen it. It is my opinion, that they don't need any more tasks heaped upon them. If I am a city official or area representative, I am not going to ask how I can help them, I am going to demand that they let me help them. Cold calls, cold calls, cold calls...

We have these bookend data centers, but we are dropping the ball on the high speed fiber-optic lines that should be coming along with the advent of those data centers. That fiber-optic pipeline can be a game changer. That is an asset that we need moving forward. I really don't think our local leaders understand how necessary those lines are. That surely can't be blamed on myself and other technologists in this area. Everyone in the know, knows how necessary those lines are.

I am sorry that this is not a rosy picture. I am just trying to be straightforward about the economic context of today. I really do believe that if we take some chances that we can turn this thing around. We don't need Scott Millar or Danny Hearn to do more. We need more people around here operating with their tenacious mentality. We need to do some things and quit paralyzing ourselves by worrying about mistakes. Mistakes allow for intellectual growth. Everyone makes mistakes, the most successful people learn from them and turn that lesson into an advantage. It is time for action and if the powers that be want to shut me up, then action is the best way to do it.

In my career of labor, I have actually seen people who spend more energy trying to get out of working than if they would just do their job. Let's all just do a job. We need to all contribute. Too many people around here have bought into hope. They hope that things will get better. People who hope are looking for others to be their salvation. They are looking for others to do the hard work that they can piggy back on. We need to find faith. Faith means that you work hard, pay attention, change what needs to be changed, stay as composed as possible, and believe in your mission; and if you do that, then things will turn out well in the end. Faith allows you to empower yourself.

I would like to thank Harry Hipps and Joe Brannock for lending me advice and contributing to this article. I could not have done it without them.

2 comments:

James Thomas Shell said...

The following was given to me about the 40% of Economic Dollar in North Carolina Statement:

In your “state of Hickory” posting – you mention a stat that the “state of NC invested over 40% of it’s economic development dollars in Catawba County in 2009.”

I believe that could be misconstrued – it should read, “almost 40% of all private investment in NC (in 2009) was announced in Catawba County.”

I read yours and assume that is all state and federal money coming this way – not private, business dollars.

Thanks and nice manifesto

harryhipps said...

The 40% figure is impressive at first blush, but the number is vastly skewed by the Apple deal. Apple was so huge it provided the bulk. Good to have them but not a job generator and no tax revenues for Hickory. Just water sales.
Now girls and boys here is a homework question. Senior citizens get a discount on their property taxes. Hickory's population is getting older and we are only growing in the Senior citizen demo graphic. When all the discounts kick in (say 15 years from now). how much will we need to raise tax rates to get the revenues we need? Extra credit will be given if you can figure out how many cubic feet of Depends will be going into the landfill.