Doing Business in the Mountains:
How the Asheville Region Uses Quality-of-Life to Grow Industry
If you've ever traveled to Asheville, N.C., the site of the Spring 2009 IAMC Professional Forum, then you know about the area's scenic beauty.
The Blue Ridge Mountains surround the city like a warm glove - forming a perfect fit that blends the old with the new.
Ron Starner,
executive director
of IAMC
The Grove Park Inn rises from the hillside like the grand old lady that she is, beckoning to weary travelers to renew their souls and refresh their spirits in a world-class spa and test their mettle on one of the prettiest golf courses you'll find anywhere east of the Mississippi.
Dig a little deeper and you'll find the steady hum of business and industry, fueled by an entrepreneurial spirit well known in these majestic mountains but not often heralded to those outside the region.
That's just how the local residents want it. Calm. Understated. Successful. Quiet. Strong. Yet ready to beat the pants off the competition when it comes to economic growth.
Consider the success story of the greater Asheville region - a 23-county area of Western North Carolina served by the AdvantageWest Economic Development Group. Dale Carroll, president and CEO of the group, tells the IAMC Dispatch that his area's attractive business climate is no accident.
In fact, he says, it's part of a legacy of visionary leadership spanning many centuries of history.
"George Vanderbilt constructed the Biltmore House and estate in 1895 because of our healthy environment. Dr. Edwin Grove founded the Grove Park Inn in 1913 because of our healthy environment," Carroll says. "It all started with the Native Americans who lived off the earth and used its natural resources for physical and economic benefit, and it continues to this day."
Galexe Pharma Sciences confirmed that tradition when it recently announced it had selected Lenoir in Caldwell County for its headquarters and pharmaceutical manufacturing plant. The company plans to hire 55 workers and invest $8.6 million over the next three years.
"Upon careful consideration of competing locations within the U.S. as well as Hyderabad, India, we chose North Carolina," said Phanesh Koneru, president and CEO of Galexe, a subsidiary of Reston, Va.-based Excela PharmaSci, Inc. "The affordable cost of living and the various grants and incentives added up to an overall lower cost of doing business."
Koneru cited the "availability of local talent pool, close proximity to several equipment vendors and milder year-round weather" as factors in the decision. The firm received financial assistance from the One North Carolina Fund, City of Lenoir, Caldwell County, North Carolina Department of Commerce and North Carolina Rural Economic Development Center.
The best news for local residents is that the average job at Galexe will pay $58,455 a year, more than double the Caldwell County average of $28,184.
Carroll says projects like this are not an aberration for Western North Carolina. "This has become a very interesting area to work in. We have a lot of exciting things going on," he says. "From advanced manufacturing companies like GE Aviation, Caterpillar and Continental to Volvo Construction Equipment, Eaton, BorgWarner and Conmet, there are a lot of major industries here. They feel that this is a very good business climate for them."
Big announcements of the past year include ArvinMeritor, which provides axles to the heavy-truck industry, making a 67-employee, $33-million commitment in Fletcher in Henderson County and Forest City in Rutherford County; Continental Tevis of Germany announcing a $100-million modernization project in Morganton in Burke County for manufacturing electronic braking systems; and Shaw Industries of Dalton, Ga., acquiring two hardwood flooring plants in the region. Plus, there's the giant new Google data center that just opened in Lenoir.
But don't think that Carroll and his associates are banking only on large companies to supply area jobs. They know that a staple of Western North Carolina is the spirit of entrepreneurialism that flows through the veins of mountain residents both new and old alike.
"We've got a very active entrepreneurial program here - the Blue Ridge Entrepreneurial Council," says Carroll. "People move here from other parts of the country and other parts of the world. There's lots of interest from people coming from Atlanta, Charlotte and Washington, D.C. We also have our own home-grown entrepreneurs."
A good example is Tom Dempsey, CEO of Sylvan Sport. "He is a serial entrepreneur," notes Carroll. "He perfected a kayak manufacturing company and now he's launched his Go Camper, a camper manufactured largely out of composites. It's so light it can be pulled behind a hybrid vehicle. He could locate his company anywhere in the world, and he chose Western North Carolina.
"He's an outdoorsman," Carroll adds. "He can manage his business right out of this region on the perimeter of the Dupont State Park and the Pisgah National Forest."
Agri-business, all-natural health products and clean energy companies are all finding a safe haven in the mountains, and more such firms are sure to follow, contends Carroll.
"Our speed of business is good, and our three major universities - UNC Asheville, Appalachian State and Western Carolina - all play an important role in supporting our regional economy."
Driving through the mountains on Interstate 40, a visitor might not know that all this commerce is taking place in and around these hills.
Carroll and his colleagues plan on changing a few minds next spring.
IAMC Notes