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Monday, October 19, 2009

Fixing Hickory - Economic Development Corporation’s Programming Strategies presented Scott Millar

Danny Hearn introduced Scott Millar and talked about the importance of the EDC's role in the creation and retention of jobs.

Scott Millar is the President of the Catawba County Economic Development Corporation. He started out by showing pictures of the development of the property where Apple's Data Center resides and the progression of that development. Scott previously discussed many details involving the Apple Data Center during the Future Economy Council meeting held in August.

Future Economy Council Meeting #6 (8/19/2009)

Just what is Apple doing in Maiden?


Scott went into the planning that took place at the retreat last November. He mentioned that the North Carolina Department of Commerce has brought forward many opportunities. many companies want to be located near Charlotte. Much of the driving force is created by the distance from Charlotte's International Airport.

The EDC also maintains relationships with site selection consultants from throughout the world. They try to meet with representatives face-to-face so that they can build a personal relationship. That way they will know more about the EDC and come to them directly instead of going through a third party. This is where they get a lot of the non-targeted manufacturing opportunities.

The EDC also works on trying to accommodate existing industries. If they can relieve a headache, maybe by utilizing the Manufacturing Solutions Center, then it helps local businesses compete in the extremely difficult Global Environment. What kind of ammunition are we providing local industries to enable them to stay, hopefully grow, and maintain jobs and tax base here in Catawba County.

The above examples are the traditional stuff, the reactive stuff. The EDC is also trying to be proactive, but there are only so many resources that they have. Where do they focus these resources?

First, the Data Center initiative was started in August 2006. They have analyzed the opportunities in the development of new technology and they are looking at energy and the emerging opportunities in that field. They must be able to tak advantage of these opportunities.

You have to have product. The Lincoln County Industrial Park took opportunities from Catawba County, because it was ready to go and it was very visible. The Lincoln County Industrial Park was considered to be an excellent alternative to Charlotte Proper, and it was operationally less expensive. If you don't have product ready to go, then you are behind the 8-ball.

Prior to 2006, no one (in the area) really knew what a Data Center was. At the time there was a business park being developed on Hwy 321. The Park had huge power, huge water, and it has multiple fiber connections. They realized that this site could be utilized by a Data Center. They developed multiple approaches to market to Data Center opportunities. They would have sold the Park to anybody, if the price was right, but the priority was Data Centers.

Scott mentioned the marketing of the Apple-Google Corridor and how do we market the name and brand the corridor. He is certain that the companies are not going to allow us to use their company name. One thing is for sure, whatever name that eventually sticks will be synonymous with new tech opportunities. Many more possibilities have opened up as a result of this burgeoning corridor.

This Park is being developed and now they are out of product. They have to develop one or more opportunities for development, but that is going to be difficult. There are more opportunities for development along I-40, but companies desire Hwy 321 and its proximity to the Charlotte Airport. They are going to have to soon decide.

Scott next started discussing future opportunities like the Green Economy and the Smart Grid. We have the 3rd highest manufacturing Workforce concentration in the U.S. We need to start analyzing our strong suits and how they mesh with new opportunities on the horizon. There are a lot of products that we don't understand and therefore we don't understand the opportunities available. Let's go where everyone else isn't and develop opportunities for that. We need to find our niche and develop our arguments for why these companies need to come here. We need to explain what sets us apart from everyone else.

What makes Hickory and Catawba County different? the Eco-Complex, the Manufacturing Solutions Center. There are very few MSAs that have the level of cultural offerings that we have offered for years. Other MSAs don't have the water resources that we have. We need to understand the assets that we have and what makes us different from everyone else. If we don't maintain those differences, then suddenly we become like every other mid-sized area. Areas that we feel like we are bigger and better than at this point. And it will become harder to compete for Economic Development opportunities.

We have a pretty complex economic spectrum. When we look at ourselves like a wheel. we have some loose spokes and their is a wobble to the wheel. There are entities dealing with a lot of the spokes and each entity and agency has to be given a responsibility specific to the spokes. The EDC is working on specific tasks and there are other opportunities that can't be covered by the EDC. Scott's final summary question was, If there are opportunities we are interested in, how do we make sure that all of the opportunities are being taken care of? Are we missing any sectors? Are we making sure that we are looking at all of the sectors?

What sectors are we missing? Where should we be looking? And what entities should be responsible for that?

Some comments from the Question and Answer session:
*** North Carolina has an economic distress level tiering system with 3 tiers. Catawba County is a tier 2, which allows us to receive a moderate level of incentives from the State. Could we become a tier 1 which would allow us to receive $12,500 per job versus the current $5,000? It also allows you to receive Golden Leaf Foundation funding and Rural Center funding. Caldwell and Burke Counties are tier 1 counties.

***Product is competitively priced buildings, sites, or parks.

***What would be the perfect type of industry for this area? An Apple like entity that creates a lot of higher paying jobs. Headquarters types of corporations and Engineering oriented types of facilities. This market has supported high tech, high quantity job creation in the past. Scott said he would like to see 600 to 1200 person, engineering types of operations that drives a lot... We thought we were bullet proof in 1999.

The Hound can't add any more to what Scott Millar stated here. He has his finger on the pulse of what this community needs to move towards being. He, along with the others at this conference, have been telling everyone that we need to move forward. We need to assess the ingredients we have and quit obsessing about what we don't have.

The future and growth will involve technology, which involves engineering. I believe that the foundation can be laid to make progress possible, but as we have seen in the past, personal interests can take us in the opposite direction of where common sense and good judgment should be leading us. That is one reason that I would like to see us hitch a ride with Charlotte and build relationships with Raleigh and other centrifugal communities. The only thing we have to fear is what we've got, and that is years of the Status Quo.


Malaise = Status Quo

Fixing Hickory - CVCC’s New Manufacturing Solutions Center

How to Keep Manufacturing and Business in Catawba County. This presentation was made by Dan St. Louis who is Director of the Center for Emerging Manufacturing Solutions at Catawba Valley Community College.

The Manufacturing Solutions Center grew out of Catawba Valley Community College's Hosiery Center. The Center has a 19 year history in Catawba County and was started from a small grant from Catawba County and the State. Over the last few years, the Hosiery Center was asked to branch off and do things for other industries. They have now formalized that expansionary role. The mission is to help U.S. Manufacturing companies increase sales, create and retain jobs. What they want to do is make things happen. The bottom line is that they are trying to find solutions to industry problems.

The type of things the Center does are Research and Development. It isn't about intellectual property or patents. It is about people being able to facilitate their ideas into making money and hopefully they will be able to employ somebody.

The Center helps analyze new materials to enhance structures and programs. Example: Textiles can be made from recyclable or random materials. Examples were shown such as socks, yarn, and fabric being made from bottles or corn. Dan talked about cotton that can be dyed with no alkali, no salt, and it dyes in 1/3 the time. This is a huge savings. This has been developed by a U.S. company that is committed to keeping this technology here.

The Center wants to create prototypes for new and existing offerings. How do you move items from concept to marketplace? The Center is providing a forum for the roll-out of 21st century technologies, International Marketing and Sales, and Industry advocacy. The Center tests products for reliability and content quality.

The Testing Center employs 18 full-time employees and 17 part-time employees. 240 manufacturers, retailers, and brands from throughout the world utilize the Center's services. They solicit customer interaction and even invite customers in to see how products are tested. They have strict confidentiality agreements with customers to ensure intellectual property and average a "3 day turn" on tests and try to keep it to 5 days.

The Center will be ISO certified ( International Organization for Standardization) this fall. Their customers want that. The Consumer Product Safety Commission says they must be certified in order to be able to testify and do industry advocacy. They began the certification process last May.

The Center doesn't compete with other labs. They actually go to them. What they found is that industry testers were doing things that weren't scientifically correct. The Center has equipment that many manufacturers don't have. Basically the testing lab enables the manufacturers to do what is necessary to maintain quality control of their products by efficient means and at lower costs. Dan said that 10 years ago he wouldn't have bet that there would be a testing lab (at CVCC), but here we are.

Dan stated that much of the testing equipment that is used for textiles can also be used for a whole lot of other stuff. They can do medical compression for medical garments. He stated that they are probably the only lab in the Western Hemisphere that can do this. They do defect, fiber, flammability, and formaldehyde analysis.

The center does microscopy and has one of the finest microscopist (Jill McCann) in the country. They have looked at everything from food to fiber and have even gone into plants to do in-plant quality audits.

As far as training services, the Center works with a lot of partners. They know they can't do everything. They do LINK manufacturing, which involves going in-plant and helping set-up training and implementation. They work with Manufacturing Industrial Partnership, supply chain management, industrial training, and software training. They will do whatever it takes to help companies succeed.

3-D printing and visualizations are types of engineering services provided by the center. They are looking to expand this role, which includes 3-D modeling, which is located at the NC Center for Engineering Technologies. CAD software, rapid prototype, and plant layout are also issues they are dealing with and looking to further expand upon. This partnership with works very well with what they do over there. They also have a modeling machine on CVCC's main campus. They do reverse engineering and have plastics engineers that are creating models that can do small-scale prototype molds that help sell products before developing the full-scale mold. This saves thousands of dollars, which is especially helpful to smaller companies and start-ups.

The Center does a lot of marketing. This helps associated companies to sell their products. "If you don't sell anything, then how do you make money? How can you be successful?" The Center received a grant from the U.S. Department of Commerce three years ago to help do international sales. These grants help businesses to market their products throughout the World. The Center brought together 54 apparel manufacturers to market jointly at the World's largest apparel show, which is held in Las Vegas. The goal was to market "Made in the USA" products. Over $30 million in new sales are directly attributable to joint marketing ventures forged by the Center. The Solutions Center has been working closely with the Industrial Extension Service at NC State, since 1994, to find new ways to market products. Statistical Analysis provided helps to focus the marketing efforts.

As far as Government Procurement, just this past year the State of North Carolina received $9.5 million in new sales directly attributable to to Solutions Center. Close to 50 jobs will be created in the Valdese area, because of this Government Procurement. They have a person that sifts through government needs to see how they can match those needs with what Solution Center customers and partners can supply.

Businesses from throughout the U.S. have started coming to Hickory to visit the Solutions Center and see what services they can provide. The center is getting a good reputation and Dan wants to expand and create jobs based upon this. The vast majority of people who are working at the center have come from manufacturing.

The Center is bottom line results driven. 96% of the Center's customers and partners returned surveys that were issued to them. The surveys show that the Solutions Center created an impact of an increase in sales of $2.8 million, a retention of sales of $1.6 million, cost savings of $274,000, retention of jobs - 75, and creation of jobs - 53. The bottom line is that the Center had an impact of $5.122 million. The Center had a 58 to 1 return on the grant ($399,000) it received from the Department of Commerce based on sales.

The Solutions Center utilizes the NC and U.S. Departments of Commerce to get into places that they can't get into on their own. This helped them contact the Japanese Embassy which helped them go to Japan and sell the "Corn" sock. At that time the Green Economy was not big in the U.S.

Dan stated that, in summary, they are the place where the problems meet the solutions. They exist to do whatever it takes to create and secure jobs. The Center is 60% self-supporting and receives 40% State and Federal funds. Right now the center is spread out and chopped up. They will be moving into the Ryan's Steakhouse building soon and it already looks as though it will be filled up.

The Hound can see that this is the type of Public-Private partnership that gives local businesses a chance to compete. This type of organization has been facilitated long ago in Europe and Asia. It gives innovators a chance to test their wares before going to the public and it gives local industry the ability to have an outside opinion at a reasonable cost. Too bad we didn't have such an organization 20 years ago. Maybe if we had, then our local manufacturing enterprises would have been quicker to modernize and we wouldn't be suffering the economic pain we are today.

Thursday, October 15, 2009

What is coming up on the Hickory Hound



All is not Lost - Catawba County Intra-City Visit and Economic Revitalization Conference
Building a Relationship with NC State's Centennial campus
Fixing Hickory - The Appalachian State Partnership
Fixing Hickory - Education Matters and Workforce Development
Fixing Hickory - “What Will Catawba County’s Economic Climate and Demographics Look Like in 2020”?
Fixing Hickory - A Demographics and Marketing Discussion Panel

Hickory City Council Candidates on First talk Show with Hal Row (WHKY 1290) - Coming up on starting on Monday at the 8 o'clock hour. This looks like it will be the only chance to hear the candidates live. Hal Row should be commended for what he does for this community by creating a political dialogue.
1) Monday 10/19/2009 - Jill Patton - Incumbent Ward 6
2) Tuesday 10/20/2009 - Z. Anne Hoyle - Incumbent Ward 4
3) Wednesday 10/21/2009 - Hank Guess - Challenger Ward 4
4) Thursday 10/22/2009 - Harry Hipps - Challenger Ward 6

*** Here is the article from the Hickory Daily Record about these races.

Two contested seats in Hickory race

Tuesday, October 13, 2009

Fixing Hickory - A Demographics and Marketing Discussion Panel

Relocation/Marketing Campaign: Increasing Population Growth

Houston Harris, President of Pixelspace
Andy Wells, President, Prism Development
J.D. Ross, Bank of Granite, President of Hickory Young Professionals
Shuford Abernethy, President at Abingdon Senior Housing Services, Inc.
Nancy Yount, Office Manager & Information Services at Catawba County Chamber Of Commerce


Danny Hearn opened this presentation. This subject of relocation and marketing; what are we doing to attract people to the area. Are websites tied in together? How do we Brand the community. What attracts people here?

Danny stated that this issue was literally discussed to death.

It all comes back to the population matter. the City has been asking, "How do we go after retirees?" There is a good debate going on about how we grow our population. There is a certain mindset that the retirees come in and they are the ones that don't particularly like change. They don't like to vote on bond issues or other things that will create growth. Danny stated that he wouldn't be to picky and he wouldn't take that off of the table.

The Chamber gets no money for relocation marketing and Bebe Leitch of the Hickory Metro Convention & Visitors Bureau only gets money from local government to run the convention center and a little money for regional visitor information. There is no money directed towards getting people to move here. This is an enormous void and we are trying to figure out what we do.

Houston Harris was the first member of the panel to speak. Houston stated that most of his company's work is not done locally. There work is done all over the U.S. and frankly they ignore their backyard. They have started to pick up some of that (local) work, because they see the need for it, but he doesn't like putting all of his eggs in one basket.

The trouble that he sees, in serving on l;oval boards and committees, is that they seem to have the same needs and desires, and they are trying to fight that fight with limited resources. Frankly, it makes him mad that we can't get our egos out of the way and sit down and fight the same monster at the same time and bundle our resources so that we can take care of our resources, as opposed to running over here and doing this and running over here and doing that and not really having a plan. Long Term, he would like to see a strategy that has specific goals and the goals should be reasonable and achievable. We shouldn't focus on more than 3 to 5 (goals). We attach some metrics to them (goals), so that we can track them and put the tactics in place so that we can achieve those goals.

We need to track the goals and if we aren't on a path that is getting us towards the goal, then we need to change paths. If the right plan is in place, then the right things will be built into the system so that we can make minor forced corrections without having to turn the boat in a whole other direction. Right now, we are being forced to turn our boat in a whole other direction and enough of us in this room are finally feeling enough pain to do something about it. Pain causes change. We need to move as a whole towards the goal.

Can we agree on what the goal is? I (Houston) heard one of the presentations. How do we keep manufacturing in this area. I feel that we can't. It will be a small subset. How do we fill in the gaps? What are some of the things we can do? If we are going to run around chasing manufacturing, then frankly I don't want to be a part of it. But, if we can have that as a component and diversify and be resilient. We will increase our capacity in multiple areas, not just silos, but interrelate those and connect them, then I believe we will be stronger in the long run.

Andy Wells next addressed the group. He stated that he read a book a numebr of years ago titled the The Path of Least Resistance. It stated that the first thing you do is establish what your current reality is. You can't move towards your goal til you know where you are. He went through this with his company and it has been helpful in going through what we have gone through since the year 2000. He hasn't seen the community do that.

We can't come to grips with where we are at relating to growth. we have lost 21% of our jobs since 2000. There is a correlation between job growth and population growth. Some guy in Raleigh is saying that we are going to gain 16.3% (population). We know from 2000 that they can miss bu 15%, so it is safe to assume that we can miss by 20%. What if they say we are going to gain 16% and we lose 2%. there could be $100 million of public funds spent for growth that may not be coming. You will have spent this money for nothing and then you have to maintain it and you won't be able to afford that, if you lose the population base.

A lot of our money has come from the past. There is a reservoir of capital in this community that we have been living on for the last 10 years. We aren't earning what we are spending. we are consuming what we have saved. Thankfully this was a very thrifty area. people have been able to stay here after losing jobs, because they have savings and reserves.

But, if the public sector pulls $100 million out of the private sector in the next ten years to spend money for infrastructure on growth that doesn't happen, then we are going to be hurt. We have to make a decision about where we are and are we growing or are we not growing?

We need to decide if we are going to spend money on growth or spend money on marketing to try to get some growth. We are in a great position to market this area with Bebe Leitch of the Hickory Metro Convention & Visitors Bureau is a great person to lead this marketing effort in this community.

If we come to grips with the fact that we are not growing, then some of the money that has been spent on infrastructure can be spent on marketing. Andy stated that in his world not much is happening. His company is still doing deals, but they are just moving people around, not bringing new pieces in. they are getting people from somebody else, because apparently they're a little hungrier. That is not fun and that is not long term sustainable. Andy stated that it is his belief that we are not growing and there is no better place than the Catawba Valley to live.

J.D. Ross next made a presentation. He is from Lenoir, went to NC State, and came back to the area to work for the Bank of Granite. He started working there in college and they offered him a job when he graduated. He was offered jobs in Raleigh, but he didn't like those places as much as the Bank of Granite so he came back here. He has bought a house here and plans to be here for a long time. He believes a lot of young people have that mindset.

J.D.'s position with the Hickory Young Professionals is really his first effort at being involved with boards and serving the community. It is something he wants to do more of. The group targets people 21 to 40 years old. He would like to see Young Professionals become the highest demographic of growth over the next 20 years, because they are going to be the ones buying houses, getting jobs, paying taxes, raising families, supporting the school systems, supporting area retail and industry, and everything in Hickory. That is an important thing to target.

What they (HYP) have found out, in talking to young people in schools and universities is that this area has a horrible Brain Drain. People from here go off to college and never come back. If I am planning on going to college, then I am looking for a higher paying job that is not here. College students are looking for a job in Charlotte, Raleigh, or out of state somewhere. If kids aren't planning on going to college, then they would start looking for a job in this area, because that is what this area was. That is changing somewhat now, but we can accelerate that change.

Something their group has talked about is that younger people today will not necessarily move to an area for a job. That has changed somewhat. People don't mind commuting 30 minutes or an hour to a job. They will move to Hickory and work in Charlotte, so they can have everything that Hickory has. This is one of the best places in the state to start a family and raise a family and have all of the amenities we have here, but you are within an hour of Charlotte and Asheville and everything is within reach. Our schools are some of the best around.

Job Growth isn't happening here, but we are poised to see that in the next ten years. That is something that is important to young people starting right now. Something they try to do in recruiting new members is to express that if they are looking for a place to settle, then everything is within reach. We want to get away from the Brain Drain and get people from this area to come back here or attract people from the local area Universities.

Nancy Yount was the next person to address the forum. She discussed the people that are locating to the area. She stated that she has been contacted by people from all over the United States. They call, e-mail, and sometimes they just walk in through the front door. They may be traveling somewhere for a weekend or may be visiting an area in the region.

Young families ask about schools, middle couples want to know about our continuing education, and older couples want to know about area medical (hospitals and doctors). They love the location and seasons. They have friends here. She has a newcomers package and she arranges for people to meet real estate people.

Shuford Abernethy explained what he does. He originally worked for United Church Homes and Services for 14 years. They have continuing care retirement communities. One is located here in Catawba County, one in Davidson County, and one in Suffolk, Virginia. Continuing care includes nursing homes, assisted living, and independent living. They offer a broad range of services. He worked in marketing the operations in Newton and Thomasville. He kept hearing that these facilities were great, but the people weren't ready for this yet. That was a fairly typical comment.

The average age of move in in continuing care retirement communities, is late 70s and early 80s. There was a market for a younger group, who prefer one level townhome living and need help with exterior maintenance, and Hickory looked like a wonderful place to do this type of development for adults 55 and up. Abingdon Glenn Village was started in the late 90s, property was purchased in 2000.

They were looking for some specifics. Shopping, public transportation routes, inside the city limits, and convenience for driving to things close by so tenants don't have to get out onto main thoroughfares. This eliminates barriers and allows people to stay independently at home longer than they could in a conventional house. He then gave specifics on the amenities that the homes offer.

Shuford called this type of a devlopment an Enhanced Services Townhome Community. These types of developments have developed in Arizona and Florida. It is also called an Active Adult Community by some people. Shuford stated that he didn't have a lot of money for marketing and much of the marketing work came from reading and figuring out what seemed to work and what didn't.

Some of the things they have tried. They started out with a program called File of Life from out of Massachusetts. They went around to church groups, civic groups, and various other organizations to speak about the File of Life Program. A lot of Grass Roots marketing. They used regular news releases. Ran ads in Retirement Magazines. Developed a website. Held monthly open houses. Ran radio ads for a year. Participated as a sponsor on the chamber of Commerce website. Yellow page ads and website. ran ads in the real estate books. The most successful tool has been Mature Living Choices magazine.

85 houses have been built so far out of a projected 93 and 76 of those homes are occupied. Abingdon Glen has a population exceeding 120 people. The average age of move-in is 71. The people have come from 13 states. 58% of the people are from the Hickory Metro, 18% have come from other parts of the state, and 5% of the homes are owned by former Floridians.

The Forum was opened and Danny asked Nancy about how people have found Hickory. She talked about several people utilizing a website called findyourspot.com. She answered a question stating that 25% of the people have some sort of attachment to the area. Last year they spoke to 1,300 to 1,400 people.

There was a lady in the audience who originally was from Pennsylvania. She stated that originally she wanted to move to Charlotte, but she was drawn to Hickory, because of the small town feel, yet we have the same things and opportunities that are available in larger cities.

A statement was made that we should start inputting information to marketing websites, because we are trusting websites to do this. Houston stated that that troubled him, because that is one of hundreds of sites that do this. We don't have activities or a plan in place, we can't input our own information, but we can ask them if they would mind adding this. There is no activity like that taking place and that is not hard to do. It is simply putting a CD together, getting an intern from a local college, and getting them to do this. We just need to start talking and build a relationship. This is not a lot of money we're talking about. Suddenly, we could bump that number one or two points and what would that mean? If we do that to 25 websites, then what does that mean? Suddenly, the bucket starts filling. That is Guerrilla Marketing and that is what I (Houston) would like to see.

Andy stated that what they saw is that it isn't hard to do this stuff. There is just no consensus in the community that we need to do this stuff and who is going to do it. Andy states that his company knows how to get seen. He wants people, when they look for a place to live in the Carolinas, they hit Hickory. We are fractured. We are geasring the thing around legislation or what we did 20n years ago. We aren't focusing on what we need today.

Houston stated that we are being investigated whether we know it or not. We get looked at every day whether we want to be or not. If they are looking are we there to be seen. pieces of us are, but not all of us. We have tried to develop a Metro Portal that attaches silos (Live, Play, Work). Make the process simple.

Alan Jackson, President of the Jackson Group stated that what worries him is that it seems that the successes we are seeing are all happenstance. We are at the mercy of reputation, word of mouth, or whatever connections are out there beyond us. You don't run a business that way. You figure out what you want and you go after them. It is a question of what we want. It doesn't have to be just one group. We can pick and choose a mixture of a bunch of them.

Houston said he describes it as a Creative Persona. An individual and what defines them. Age, income, what they want, and what they care about - There thing. here is a different persona. Once you have the persona, it becomes an individual and it is about what they want and not about what my agenda is. Now we are addressing there needs and not mine. Once we figure out the personas, then we need to figure out which one is going to get us, as a community, to the goal, If we have four personas, then we don't have to weight them equally. We can weight the scales of marketing effort towards that direction. If it turns out to not be viable, then we can change it and refocus.

Nancy answered a question about the Chamber's information packet and what people ask her about and how are they making decisions. She stated that she coordinates with area schools and other entities to change the packet every year. She then talked about some specific cases.

Houston stated that this bothered him. Nancy is doing her job wonderfully, but people have to come to her. Why is this information not on the web? How expensive would it be to put this on the web and have a form to fill out that requests an interview with the various schools in the area that your child may attend?

Bebe Leitch stated that numbers have gone down because of the decrease in travel. Nancy stated that numbers at the Chamber are also down. Much of this is because they are currently closed on the weekend. Bebe stated that a lot of people have found the CVB on the web and she just imagines how much more traffic we would see, if we start focusing on a marketing strategy. Shuford stated that he would like to see an online brochure that focuses on Hickory as a place to live. We see that for furniture, but not as a place to live.

Steve Ivester asked about what we are marketing? Hickory, Catawba County, or the whole Metro region? he sees an advantage in marketing the whole metro. Andy stated that the only name that matters, when marketing the area is Hickory. The other names don't mean anything to the people from out of state. We have had a fractured marketing strategy. We all do these little blips and we need to all get together. Ivester asked if we are talking about the Hickory Metro, then why is it only Hickory and Catawba County here (at this event).

Andy stated that we need to define who our target is. We have talked a lot about retirees, but what he would like to see is educated people with money. And he doesn't care if it is a 25 year old with money potential or a 60 year old with a 401-k. Andy stated that that is what we are getting, because they certainly aren't moving here to get jobs. Houston stated that that also focuses on relocation to live here. He wants start-ups. He wants an environment that is sensitive to small start-up businesses and find the next Google. If we can get better bandwidth and infrastructure and have an incubator and a Brand to get the first year's rent covered. this can take the burden off of their shoulders and the can focus their energy on doing things like writing applications for i-phones. A good application can be sold in the millions and that can be done in a 100 sq foot office.

Barbara Beatty said that Hickory needs to be targeting people in the Southeastern part of the county. She doesn't know how we will do that, but those people are going to Mooresville. How many people that live out towards Vale go to Lincoln County and don't know anything about Catawba County? Houston stated that this is also a perception of value issue. These people look at Mooresville as progressive, changing, and alive; and we're still 1985.

David Moore stated that they've also got a road to (Hwy 150 to Mooresville). Barbara stated that these people can come up Hwy 16 and hit I-40, so it's not that bad. She believes it is a matter of lack of knowledge and information. She suggested, we need to go down there (they are starved for information down there) and talk with them about some things.

Danny Hearn asked if we understod the frustration in all of this. We have the stuff and it's ready to go. Danny said the budget on this is about $50,000 and Houston was going to volunteer his time. David Moore said you have to get business to buy in. they have to understand how they are going to benefit from it. They have to pony up. I (Thom Shell) stated that you have to worry about the people moving here, is their perception that they're going to benefit from it. Not only are we going to benefit from it, but people on the other end, are they going to benefit from it. And if you give them that value, then they will come.

Houston stated that the part of the model he looked at was frustrating, because he was looking at how to get this thing off the ground. He thought about doing it himself and nobody would be able to tell him how to do it, but then he had to figure out how to sustain it after the first two years and then he was going to have to make it an ad based revenue generating site and that cheapens the whole thing and that defeats the purpose. It will start to collapse after two years. That is the only way to get a business to support it, unless their are funds set up front. He believes their has got to be grant money available for this, to sustain this long term.

The Hound believes that this was truly an integral discussion
and Alan's Focus Group event the following day was just as important. We have to sell Hickory and get people to look at what Hickory can be, not what it is or has been.

There were very few statements that can be challenged, that were made during this Panel discussion. I think that all of these people are doing their jobs well. I know what Houston Harris brings to the table from the discussions during the Future Economy Council meetings and conversations I have had with him in private. If he tells you this is the thing to do, then I would do it, because this guy has character. He isn't selling you a load. He knows where he is going in life and so does Alan Jackson. These are the creative Generation X leaders of this community and they have great ideas about how to get us headed back in the right direction.

JD Ross and the Young Professional group also need to be supported. These people have worked hard to get this group off the ground in the last two years. Listen to what he said during this panel discussion. I can tell you that what he said here is very much representative of what the HYP stands for. Successful recruitment of this demo is the key to successful, long-term, viable, and sustainable growth in this area. If Charlotte can host this demo, then by god Hickory can too!!!

I appreciate what Shuford Abernethy brought to the table. We have seen successful marketing to retirees in this area. You can see why, when you listen to his strategy and how well thought out and articulate he espouses his mission. I know people that live in Abingdon Glen and it is a nice community. I believe that if we see that kind of strategy in other demographic areas of this region, then we will move back towards balance and prosperity.

Andy Wells is obviously passionate and he made some excellent points about growth and finance in Hickory. If we don't readdress our priorities, then we are not going to grow and it is going to be terribly hard on those left behind holding the pieces. I fully understand what he is addressing when he talks about the path of least resistance and understanding where you are at and how you got here. I have espoused that same philosophy myself over the last year on this blog.

I really don't understand why this type of marketing strategy hasn't already happened. We are the 138th largest MSA in the United States. We have seen the route that technology and information are leading us to. The amount of money we are talking about is a pittance compared to the benefits this region would receive. $50,000 or $100,000 is nothing when spread amongst the 360,000 people that live in this region. 30-cents a year, per person, for a real investment that has a high likelihood of return. I know that people like Alan and Houston would do a top-notch job. It is time to get it done!!!

Monday, October 12, 2009

Fixing Hickory - “What Will Catawba County’s Economic Climate and Demographics Look Like in 2020”?

Presentation by Taylor Dellinger of the Western Piedmont Council of Government during the Intra-City on 10/1/2009.

This is not the Hickory Economic Perspective. This is a look at the future. What do we want to see in the year 2020. Taylor went over projections that have been laid out by the state, local planners, and the Department of Commerce. They are projections for the purpose of planning and discussion.

Taylor mentioned a Quote from John Glenn -
People are afraid of the future, of the unknown. If a man faces up to it, and takes the dare of the future, he can have some control over his destiny. That’s an exciting idea to me, better than waiting with everybody else to see what’s going to happen.
from Charles Kettering -
“My interest is in the future because I am going to spend the rest of my life there”
John Buchan -
We can pay our debt to the past by putting the future in debt to ourselves.
Abraham Lincoln -
The best thing about the future is that it only comes one day at a time.
Tennessee Williams -
“The future is called 'perhaps,' which is the only possible thing to call the future. And the important thing is not to allow that to scare you.”
Taylor states that decisions that are made today can effect the community 5, 10, or 15 years down the road. Think about decisions made 5 or 10 years ago and how they are having an effect on what we see today. Think about the decisions to be made in the next year or two and how they may effect the community 5, 10, or 15 years down the road.

Taylor states that what he is showing is not data, which are the present and the past. These are projections. These are possible outcomes, not the outcome. Based on the status quo and demographers see going on with population, employment, education, or industry, this is the best guess for today. They can be wrong. State projections for population, done in 1990, look like they will be 15% to 20% off. These are guesses.

Population for the year 2010, shows an estimate from the State that Catawba County will have a population of 159,000. Taylor believes that estimate will be a little high. The census for the year 2020, shows a Catawba County population estimate of 180,175. That would be growth of 16%. The number is based on birth rates, death rates, and in migration.

The Unifour (Hickory MSA) population numbers show an estimate of 361,000 for 2010 and the projection for 2020 would take us to 410,000. This number includes Catawba, Alexander, Burke, and Caldwell Counties.

Catawba County should have the highest growth rate of any of the counties in the Metro area, through the year 2020. The State shows a growth rate of 1.3% per year between 2008 and 2020. Population projections, for the state, are expected to be around 1.8%. A lot of this will depend on in migration - people moving into the area. In the 1990's we saw rapid population growth, spurred by job growth. Without job growth, the population growth will be less. The two are clearly related.

The fastest growing part of the state is the Piedmont Crescent between Charlotte and Raleigh. There has also been rapid growth in Wilmington and somewhat in Asheville. The largest metro areas have been growing rapidly. Catawba County has been growing rapidly compared to the rest our MSA.

Where is the growth likely to occur? Most of the housing growth appears to be located along the Catawba River, because of quality of life issues. Local Planners (WPCOG) use Track Analysis Zones, where land is divided up along roads and calculations of current population numbers and employment numbers are factored in. Then the planning staffs of the 28 local governments, in the region, are asked about their expectations of what they expect to happen in the future (such as 2035), in terms of housing growth and employment growth.

Southeast Catawba County looks to have the greatest opportunity for growth. Taylor surmises that this is because of the opening of four lane Highway 16 to Charlotte, which will be finished right along Anderson Mountain Road. Another factor includes the proximity to Lake Norman. After Hwy 16 is opened, it will only take approximately 35-40 minutes to get to uptown Charlotte or 20 to 25 minutes to Charlotte's outer loop. That opens up an opportunity for people to live in this area of Catawba County and work in Mecklenburg County.

There are many jobs that are starting to locate along the 321 corridor, near the Target Distribution Center. We also expect to see employment growth develop around the Eco-Complex. Housing growth associated with these developments is expected to take place around the Mountain View area. Housing Growth will not take place around the southern part of the county, because it is mainly zoned business, industrial, and commercial.

Population Density is currently (2007) around Hickory, Newton, and Conover. The future shows that growth will mainly take place in Northeast Hickory, Mountain View, and Newton.

Age Demographic distribution shows that the 65+ age demographic is growing more rapidly than any other population sector in the metro. Baby Boomers are getting older and more retirees are moving into the area. What we really need to see is balance.

Taylor's charts showed that the fastest growing ethnic population was Hispanics from 2000 to 2007. The State is showing that from 2008 to 2013 this trend will continue.

Job distribution numbers show that in 1990, 56% of jobs were in Manufacturing, 20% services. As of 2009, Manufacturing was down to 28%, services 47%. We are transitioning to a service based economy. manufacturing will still be important to the area. 2016 estimates show manufacturing at 21% and service sector jobs at 53%. All of this follows the national trend. Right now we have 143,000 jobs in our region and projections show 155,000 to 157,000 jobs, in the region, by 2016.

Possible Jobs and Industries of the future were talked about and Taylor said that he encourages everyone to look at the WPCOG report titled Western Piedmont Industrial Growth Analysis Update 2009.

Taylor next talked about where future employment will occur. In 2007, jobs were located near the strong retail service hub related to Valley Hills Mall and Wal-Mart in Hickory. There is also a little growth along Hwy 321, Hwy 127, and Conover-Claremont. Future employment growth will occur in Southeast Catawba County and it looks to be service related. Hwy 70 and Fairgrove Church Road look like they will continue growing for the foreseeable future. Many people in this region of the county are currently working out of their homes.

The Hickory Hound has delved into all of these issues going back to last year:
This Ain't Podunkville Anymore


There are many factors at play in these tumultuous times, but I have learned during my life, that most of the time your life is predestined by the decisions that you make. You may find this totally irrelevant, but 20 years ago and then 10 years ago, I made decisions to make Hickory my home for life so that I could be near my family and the comfort of the familiar surroundings it afforded. You know, a lot of people tell me that that was a mistake and honestly it probably was, but I am here and I want things to get better. Hickory has to start laying out a game plan towards prosperity or there will be none.

What you cannot see, because I don't have access to Taylor's maps so I can post them, is that there is Economic and Population growth happening down Grace Chapel Road, out towards St. Stephens and Springs road, in Mountain View and South of there, east through Conover, Claremont, and Catawba, and out towards Sherrill's Ford and in the Southeastern part of the county. What one can also see is the Big Black Hole of growth in the Proper boundaries of the City of Hickory. Why is that?

Hickory has to be the driver of the region, but what we are seeing is that commercially only the Valley Hills Mall-WalMart area and a little slice of Viewmont are growing within Hickory Proper. We need to see other parts of Hickory become viable again or we will continue to see the "Black Hole" implosion in the City of Hickory that has been going on for years.

You can't ignore these entry points into Hickory that show blight and are increasingly becoming saturated with what looks to be gang activity. It will eventually completely destroy this city.

When one comes into Hickory at the junction of Hwy 321 and Hwy 70, then one sees rundown areas accessibly in view. When a person travels down Lenoir-Rhyne Boulevard towards Lenoir-Rhyne University and views Highland Avenue, then once again their vision is submersed in blight. Isn't it time that we see some action on this issue? Do we really need to hear why we can't fix these areas? Is it that we can't or is it that we won't? Because if we don't start dealing with these issues, they will soon begin dealing with us!!!

Saturday, October 10, 2009

Fixing Hickory - Education Matters and Workforce Development

Dr. Garrett Hinshaw began his presentation by talking about Education Matters. He stated that it's about changing our future twenty years from now, when we have a prepared workforce that is attractive to the diversity of industry that we need to bring into Catawba County.

We have to have systematic changes in our today, so that we can provide options so that individuals have an opportunity to succeed. That is what Education Matters is about. This will help our economy transition. This is something that we can focus on.

The components of education matter is assessing the workforce by doing quantitative and qualitative analysis of industries in this area. Next, they talked about partnerships in the community between business, government, and education. Critical thinking and problem solving are key components of 21st century job skills. The goal is to have graduates that are ready to work, employable, have a good work ethic, and they understand the dynamics of what it takes to be successful here in Catawba County.

Tracy Hall, of the Champions of Education, next addressed the group. She has worked in the Hickory Public Schools. This is a partnership between education, business, and government. This is about changing the culture in our community that states dropping out of school is no longer an option. Students who graduate will have a future rate portfolio that will indicate that students have 21st Century skills that are in demanded in the workplace. Attendance records, writing samples, and community service work are included. Students will be tested on national career readiness certification skills. Following the first year, they will have a report that will assess where they are in the project.

Catawba County Government and Municipalities will continue to promote parental involvement in schools, create economic incentive agreements, help review portfolios to make sure that "Education Matters" has all of the parts and pieces they need, encourage High School diplomas, and continue financial support.

The benefit to employers is that they will have a better prepared workforce with National Certification, better workforce advancement, more loyal-productive employees, and reduce employee turnover. She further went in the three levels of certification that employers can qualify for (Gold-Silver-Bronze).

What can employers do? Help students visualize their future and make them more aware of the opportunities available in the area. Help by mentoring students and participants - like leadership 2000, sponsor scholarships for teachers. Businesses can come out for career days in the schools, share job experiences and expectations at all levels, and hire graduates. Let students come to the work site to see what you do, so they can have an idea where they might fit in to see if it is a place they might feel comfortable working. This will help students see that they have a path and opportunity here in Catawba County. Ms. Hall showed businesses that have signed up.
This can help students that don't have a voice (mentor) or guidance to keep them in a path, while also keeping kids who need job experience.

Joyce Watson next addressed the conference. She is the Human Resources Development Director at CVCC. She talked about the Career Readiness Certification. She talked about the Key Train and Work Keys program. We have a documented workforce of 834 people that have proven that they can do applied math, locate information, and read for information. That is accessible to employers. The program was started in 2006.

Shurtape Industries was instrumental in making this happen. 236 Shurtape employees have been certified and now Hickory Springs is participating in the program. If these employees fail this program then remediation is available, if needed. She then showed the qualification levels of this program - (Gold-Silver-Bronze).

Mrs. Watson then went into some of the specifics of the test. The work keys test takes about 45 minutes for each test. They test two times a month on Saturdays at the end of the month and on Tuesdays and Wednesdays in the middle of the month. They also test independently with companies. The test is very strict and can't be let out of their site. These tests help companies identify employees ability to "do things" and/or "do other things" - Trainability. This helps companies assess where employees may need remediation.

There is a charge to this test. So far, they have been able, with the help of the Workforce Development Board and a $2,000 gift from Wal-Mart, to not have very many people at all have to pay. If you make over $416/a week there is a charge. This is a voluntary program. This is used as a pre-employment profiling measure so that employees can see what they need. This is sometimes employer driven. We need to have a "Proven" workforce and this is a nationally recognized portable credential.

Dr. Hinshaw stated that we are trying to dust off tools. This is not CVCC driven or local schools driven, Catawba County Government driven, or Business driven. It is a partnership. "They (Leaders) are trying to figure out what do we have access to? to help change the economic conditions of our area and insulate Catawba County from allowing this (economically) to happen to us again. Who wants to sit though and go through what we have gone through since the year 2000 again? Not me."

When there aren't any jobs out there, it is frustrating for us (CVCC). Students wonder, "Are they going to be able to get a job when they get out?" We (area leaders) have to take some very risky types of actions in order to move this system forward. This is not something that is going to happen by itself. If you want to stay the same, then keep doing what we have been doing. We have to open our minds up to the opportunities that are presenting themselves and not arbitrarily say no this will never work. You're not going to tell me how to do this. Give it a try and figure out what we can do with this to catapult us forward. This can set us apart. This will give us a unique selling point that can attract businesses.

Dr. Hinshaw stated that when they did the Quantitative and Qualitative analysis, about a year ago, the key component is that business executives told him what skillsets they needed and these skillsets are going to be integrated into the public schools. When they implement there Graduate guarantee in 2012, Critical Thinking and Problem Solving are going to be at the top of the list. Teammanship and working with group projects, working with real world projects, bringing it into the classroom, that is what we have to have. We can't rely on textbooks to solve our issues. Environment and technology are changing so fast. This (education) is a continuum that never stops.

*** Companies can apply for grants to help pay for the Work Keys Training.

*** The cost is $30 per person and $150 for a proctor. They can only test 30 people at a time. they have to have 2 proctors, if they go over 30 test takers.

The Hickory Hound has traded E-mail correspondence with Lamar Mitchell and I now feel comfortable that we better and more fully understand one another's positions. He understands that he was not the focus of what I was addressing and now I understand more fully the focus of his mission.

I think that everyone can see that all of these functions are important to move our workforce, community, and culture forward into the future. This can't be a crutch for Hickory's current industries and business to prop themselves up on for statistical reflection. This is about changing the paradigm of our entire area's culture of intellect and thus Quality of Life. Everyone has a role to play.

Dr. Hinshaw said some excellent things during this presentation. No one can argue with any point that he made. I think CVCC is in excellent hands with someone that moves us in a direction of excellence and this moves us closer to a goal of excellence without casting off those who are caught in the vises of the old paradigm and lack of educational expectations of Old Hickory. It was what he said, and not the way he said it, that made me feel that if Hinshaw is leading the way, then we are going somewhere.

Friday, October 9, 2009

Opinions Matter - 15,000 Unique Visitors

This week we went over the 15,000 unique visitors mark on this blog. We have seen a lot of growth and I have been happy with the progress that we have made and I look forward to this site continuing to grow.

I would like to address the issue of the opinions that I share with the viewers of this blog. This blog is meant to be a blog of advocacy. I study issues and then I try to state my opinion on those issue and bring understanding as to how I interpret those issues.

When someone disagrees with me, then I do want them to let me know. Sometimes I am vitriolic and/or sardonic when I see things happening that totally go against the grain of justice and what is right or best for this community, especially when I feel that it is a myopic or self-serving view or action. But, if one feels that I am misinterpreting an issue or action then my e-mail is readily available or many of you see me in public and can address me there. I am always willing to listen. No one can legitimately state that I am not willing to meet with them and listen to their grievance toward me.

One word that I constantly hear is the word Credibility. The definition of Credibility is the capability of being believed. I can assure you that I do my homework on the issues that are addressed on this blog. I don't just make the stuff up that goes on here. I spend 30 to 40 hours a week on this. I meet with people constantly that help me to shape the direction of the issues we address. This has been a truly educational and life changing experience for myself and the game changers that help me with this project.

Since I have started this blog, I have had many people thank me for what this blog represents, but I have also had some people thoroughly chastise me and rail against some of the issues and context of what we propose and write about. Sometimes I believe our local media outlets have had there content and coverage of issues unduly influenced by such pressures. People cry about our local paper, but such constraints are the reason that we don't see relevant content and ideas addressed there. They are tired of having there toes stomped on by people who won't even tolerate constructive criticism.

That is the reason why I have been wary of accepting any money for advertising on this blog from local sources. I don't want the possibility of anyone telling me that they would yank financial support, because I addressed such and such in a manner that they don't like or an associated party doesn't like.

You see, I have never been a part of the club and frankly I am not looking to join in with any social groups here in this town, unless they are open and accepting of people who come from diverse backgrounds and have diverse ideas and opinions. I am thoroughly ashamed of the caste system that I have seen on display in many parts of this city. It is my opinion, that this caste system has played a major role in the economic implosion that we have been experiencing and until the status quo goes and we start moving away from the old ways, then I feel that we are going to continue spinning our wheels, instead of moving towards the progress that we all claim to want to see.

Creativity is fostered from people who have differing points of view and if one cannot function and communicate with others who have differing opinions and come from different backgrounds, then one will never be able to grow mentally or spiritually. If you want change, then put your money (and/or influence) where your mouth is!!!

***By the way, several parties are aggressively pursuing a means to have a Town Hall meeting in which all of the candidates for the upcoming election will be invited to speak with the public about where they stand on the city's issues and what they propose to do should they be elected to Hickory's City Council in the upcoming Election. We will be informing people early next week if this is a go or not. Remember that this upcoming week each candidate will be on First talk with Hal Row on WHKY at 8am. His show comes on at 7:05am on Monday through Friday.

***I will be working further on the Hickory Revitalization Conference I attended last week. Next up will be Champions of Education - Education Matters and the Address by Dr. Garrett Hinshaw about what CVCC is doing to help change the culture in this area.