25 S. Garden Street · PO Box 1289
· Marion, NC 28752
Phone [828] 652-9391 · Fax [828] 652-8775
Email: meda@mcdowell.main.nc.us
From
the Chairman of the MEDA Board,
-Mr.
David Wooten
News from the JobLink
Jeannie Edwards
MEDA Membership Drive
(County)
Raymond Burrows
NC Department of Commerce
Editor’s Note: Information in this column is based upon the program, “Marketing for Economic Development Professionals,” conducted by Eric P. Canada for the American Economic Development Council.
Part 2: Target Marketing
While McDowell’s products and services are to be discussed in the next issue, we can understand how target markets are vital in the total marketing process. Since each of us belongs to several target markets for a variety of products and services, let’s talk about McDowell’s current economy.
As an example, all of us need to purchase food. The McDowell market is served by Bi-Lo, Food Lion, Winn-Dixie, Ingles, a variety of superettes and specialty stores. Each food retailer is striving to develop an identity that appeals to a target group of food purchasers. Location is one factor that defines the target, but not the BULL’S EYE. From research, we know that shopper’s are willing to travel just so far to a grocery. Getting closer to the BULL’S eye, research confirms the preponderance of food purchases are made by women—even though that is changing. Therefore, each store strives to develop appeals to women based upon their interest in price, selection, quality attractiveness and other things. Then in promotional efforts, each store will be appealing to women who are geographically close enough and then probably will focus on families with children which represent more mouths—larger purchases each week—the BULL’S EYE.
Every retailer, every professional service, every business has, in effect, target markets that are the most likely users of their product. In the business world, our Government’s need for collecting economic data led to the creation more than a century ago, of a numbering system, the Standard Industrial Classification system (SIC). This numbering system assigns classifications and sub-classifications using a series of nine digits thereby identifying firms, which, because of the products and services they provide are markets for a similar grouping of products. Here is a sample listing for the current industries in McDowell and in general, typical products for which they would be target markets.
14
Mining/Quarrying
1
Trucks/heavy equipment
20
Food Processing
3
Produce/packaging
22
Textile/Apparel
7
Yarn, Equipment
24
Wood Products
17
Lumber/finishes
25
Furniture
3
Dim. Parts, finishes
26-27
Paper/Printing
5
Inks, paper
28-33
Man-made Materials Products
8
Resins, fillers
33-37
Metal Products
17
Steel, tooling
Prior to World War II, North Carolina’s traditional industries had been attracted from the northeast by a low-cost work-force with excellent work ethic with special appeals to the textile, apparel and related industries. Availability of hardwoods and the low-cost work force also appealed to the furniture industry. In some cases such as upholstered furniture, there was synergism because furniture provided a market for fabrics and fabrics were conveniently nearby for furniture makers. However, different operations such as yarn, weaving, dyeing and finishing industry segments could be considered target markets because of their special needs. Dyeing and finishing for example required locations with ample water. In the furniture industry, a casegoods plant found it was advantageous to be close to lumber sources. Thus, in that period of growth those few communities actively seeking to attract industry found having these special resources were advantages, if effect an initial “seat of the pants” approach to target marketing.
In the last 20 years economic development marketing has moved toward market targeting, a complex process vital to success in any community. With the continually increasing technology of all industries the matching of a community’s resources with an industry’s needs requires knowing clearly the needs of different potential industries and even specific companies within an industry to relate to a community’s resources. Using the SIC classification system and additional research identifying factors required in a community to make those businesses profitable will provide the knowledge to achieve a successful match and therefore the location of a targeted company.
The complexity and difficulty of attracting new businesses to a community today may explain, to some degree, why existing businesses frequently express concern that their increased investment and job creation is not appreciated by the community as much as a new location. Since existing businesses do provide the overwhelming majority of new jobs and investment, they are the community’s primary “target market”. Satisfying the needs of the existing business target market—hitting the most important BULL’S EYE can be direct and less complicated that the process of attracting new businesses. Pursuing the changing needs of existing businesses starts at home. Local key executives are readily available for visits and communication so that the community can help existing businesses maintain their competitiveness in today’s rapidly changing marketplace.
The McDowell visitation and survey program with existing industries, now nearly completed, will tell the community how well key aspects of McDowell are working, where changes are needed and provide guidance for the community toward industrial development that will keep McDowell County healthy and growing.
INDUSTRY VISITATION PROGRAM CONTINUES
The industry visitation program detailed in the previous newsletter continues with over twenty visits conducted. There are five visits remaining at this time. A full report will be detailed in a future newsletter.
Most recognize the need and the value of improving water and sewer infrastructure in the Town of Old Fort, the City of Marion and McDowell County. There are currently a number of improvements or expansion projects underway and a number of recently awarded grants that will provide for additional improvements. The following summary provides an overview of these projects.
HWY 221 SOUTH EXPANSION
Approximately 1.5 miles of water and sewer line expansion on Hwy 221 South of Interstate 40 will be complete by mid-February, 2001. The 1.2 million extension will provide a 12” water line and an 8” force main sere line to the Performance Rail facility. The project received over $750,000 in State grants. The last section of the project is the Interstate crossing and it is currently taking place. There is currently discussion of an additional expansion to provide serve to the Glenwood Elementary School.
An expansion of sewer service into the Pleasant Gardens Community has been initiated. The extension of service will provide a 12” gravity sewer line along the Catawba River from Roby Conley Road and Hwy 70 to the Intersection of Resistoflex Road and Old Greenlee Road. An 8” line will continue at this point to Crane Resistoflex and to the PG Elementary School. The expansion of service will take existing package plants operated by Crane Resistoflex and Little Sienna off line. The expansion will cost an estimated 1.35 million with $460,000 being paid by the McDowell County School System and anticipated grants exceeding $350,000. The expansion is expected to be completed by December 31, 2001.
T0WN OF OLD FORT SEWER IMPROVEMENTS
The Town of Old Fort announced a 2.9 million Clean Water Bond grant award that will provide a number of very important sewer systems upgrades to their system. The Town of Old Fort plans to replace approximately 7000’ of 12” sewer transmission line with a 24” line. The line extends from the “Old Fort Finishing” building to the existing sewer plant. The grant will also make a number of improvements to the sewer plant including expanding the treatment capacity from the current 1.2 million gallons to 1.6 million gallons.
McDowell County received a 3 million Clean Water Bond grant and a 1.5 million Clean Water Management Trust Fund grant in December to provide sewer service to the Stumptown community in the East Marion area. The grants will provide sewer service to approximately 350 homes and 15 businesses located east of Baldwin Avenue and north of Leach Street. This expansion is necessary because of a number of documented septic failures and well contamination’s. The design for the system has been completed and submitted to the State agency for approval and the project should take approximately eighteen months to complete.
The City of Marion will extend 3200’ of 12” water line and 3300’ of 8” gravity sewer line along Sugar Hill Road from Rankin Road to Shady Lane Road. The project will serve a mobile home park, McDowell Family Medicine and other homes and businesses. This section will be funded by the City of Marion and through a $200,000 grant from the Rural Center. An extension of water service would continue approximately 7600’ from Sugar Hill Road on Shady Lane to the two rest areas located on Interstate 40 south of Marion. The Department of Transportation will fund the project. McDowell County has agreed to pay for the enlargement of the line from an 8” line to a 12” line. McDowell County will also fund the installation of six fire hydrants along Shady Lane south of Marion. This extension will provide water service in close proximity to both the Ashworth Road intersection and the Sugar Hill Road intersection.
A 1000’ extension of sewer service is planned on Hwy 226 South from the Hardees Restaurant to the “Calico Printing” Warehouse near Fairview Road. A new company called “Cabinets Unlimited” will locate in this facility employing twenty people. A grant in the amount of $35,000 was awarded to McDowell County to provide the service.
SPAULDING WOODS APPARTMENTS
This project involves the extension of approximately 2000’ of 6” gravity sewer, the construction of approximately 2000’ of street to serve a 42 unit housing complex for low to moderate income citizens, to be located on Spaulding Road (across from the Armory) inside the City of Marion. The apartments will also be hooked up to the City of Marion water system as part of the project. The City of Marion has obtained a grant in the amount of $198,000 from the Community Development Block Grant Program.
McDowell County is currently assessing the possible purchase of approximately sixty-five acres of property located on Old Hwy 10 near Lake James that would serve as a future site for a Water Treatment Facility. The assessment has been underway for over six months and should be completed by the summer of 2001.
ESC Report
Patin Howard
Employment Security Commission
“Just how bad is it?” is a relative question. However, the estimated unemployment rates reflect the tight labor market employers are experiencing. The Employment Security Commission considers five-percent unemployment to be full employment. Five-percent allows for workers moving into and out of the area, minor operational adjustments made by employers, and workers shopping for different work schedules or wage preferences. Seven months of 1997, all months of 1998 and 1999, and ten of the eleven reported months of 2000 had unemployment rates below five-percent. McDowell’s estimated annual unemployment rate for 1997, 1998, 1999 was under five-percent. These are the lowest annual rates since 1989. The last reported month is November 2000 with a 4.1% rate. November rates in recent years were 1997, 4.2%; 1998, 4.0%; 1999, 4.0% and 2000, 4.1% which reflects the tight labor market over this time. Starting in 1997 through the present McDowell County’s labor market has been very tight. Therefore, employers had and continue to have difficulty finding enough workers to fill their employee needs.
McDowell Environmental Exchange
McDowell Environmental Exchange meetings coordinated by Keep McDowell Beautiful, are held quarterly at various host manufacturing plants throughout the county. The group focuses on environmental, health and safety issues faced by local industry. Speakers with related information are invited to attend. The breakfast meeting begins at 7:45 a.m. and ends promptly at 10:00 a.m., with an optional tour of the host plant immediately following the meeting. An update on McDowell County’s solid waste status is given at each meeting by County staff. You are invited to send a representative from your company to this quarterly meeting. For more information call Carroll Proctor at 724-4000, Rod Birdsong at 652-4240, or Donna Stevens at 652-9171.
Current MEDA Board Members
David Wooten, President
Kathy Rabb, Vice President
J.B. Bundy, Secretary/Treasurer
John R. Biddix
Joe Kaylor
Sarah Buchanan
Jim Kilbourne
Everette Clark
Ray Linder
William Dover
Dr. Virginia Mitchell
Larry “Butch” Hogan
Garland Norton
Adolph “Butch” Justice
Dennis Whitson
Ex-Officio Members
Rod Birdsong
Bob Boyette
Rep. Mitch Gillespie
Paul Hughes
Dean Kanipe
MEDA Office Staff
Charles R. Abernathy,
-Executive Director
Harriet C. Smith
-Office Manager