A Wake-up Call for Western North Carolina
 
Content
• Introduction
• The Survey Respondents
• Current Workforce Needs
• Impediments to Success
• Manufacturers and Government
• Manufacturing's Place in Economic Development
• MEA Members' Observations
• Additional Survey Comments
 
Introduction
The Manufacturers Executive Association was formed in 1978 to function as the continuing advocate for Asheville’s manufacturing sector - - - supporting, promoting, and implementing initiatives that foster viability and expansion of area manufacturing operations.

MEA has since grown to include member companies in Buncombe, Henderson, and Madison counties. They produce all manner of goods - from micro-switches to giant earth moving equipment; from auto parts to blankets and other textiles; from CDs to surgical supplies.

Manufacturers in Western North Carolina employ some 13% of the total workforce, with pay scales that are 15 to 20% above the “all industry” average. It is no secret, however, that job opportunities in manufacturing have been declining steadily here in recent years due to downsizing, relocation, and outright closure.

MEA has invited its members to share some of their experiences as to what it means to be a manufacturer in Western North Carolina at the dawn of this 21st century. We asked them to share their achievements, challenges, needs, and perceptions. We received a statistically significant 40% response.

On the following pages, MEA shares the collective results of its research as a “wake up” call - first for ourselves in the manufacturing sector.

But these same results, we believe, also merit the renewed focused attention of those who depend on a balanced, sustainable economy throughout Western North Carolina.
 

Jeff Imes
MEA President & Chairman Editor
(WP Hickman - Chief Operating Officer)
Telephone:828-274-4000

Email: jeff@wph.com

Fredrick Reese
MEA Executive Contact
(WCI, Inc. - President)
Telephone - 828-667-3311
Email: freese@wciinc.org
 
 
The Survey Respondents

Twenty of MEA's member manufacturers have participated in this survey. Their individual workforces range from 35 to more than 500. Most worksites are located within Buncombe County (see Appendix.)

Half of our responding companies have had a local presence for more than a quarter century, but only two of twenty have started a manufacturing operation here within the past ten years.

For obvious reasons, most survey respondents were reluctant to share hourly wage information. Among those that did, MEA found an hourly range of $7.25 to $16.00 for non-supervisory factory workers.

 
Current Workforce Needs

Several MEA survey participants state they currently/recently have had need for both entry level and skilled, technical personnel. While factory experience is preferred, those with potential and a positive work ethic are also being sought.

The list includes assemblers and sewers, machine operators and mechanics, general production, tool makers, and warehouse personnel. Electrical technicians, engineers, and programmers are the most frequently identified categories of needed personnel with higher skills. As might be expected, the positions most difficult to fill are those requiring special expertise such as engineering. Career experience, particularly within a manufacturing atmosphere, is also difficult to find among applicants.

Survey respondents tell MEA that in addition to the traditional tools of employee recruitment (newspaper ads, Employment Security Commission, and Temp agencies) several also utilize JobLINK, participate in Job Fairs, and seek recruits via community colleges and universities.

 
Impediments to Success
Our responding manufacturers have reason to believe that they and other area businesses could be more successful were it not for such impediments as:
Out-of-control cost of area health care services as a percentage of operating expense (a near 100% response)
Accessible, affordable child care services (a near 100% response)
Available, affordable housing (for those desiring to relocate)
Public transportation to and from the workplace
The impact of NAFTA
Domestically, the unfair competitive advantage that Congress grants to such agencies as the Federal Prison system and the arbitrary designation of Historically Underutilized Business (HUB) Zones
It will take assertiveness and collaboration at a community/regional/state level in order to overcome these barriers if manufacturing is to remain a viable cornerstone of this region’s economic stability.
 
Manufacturers and Government

MEA asked its members whether they have any specific problems with government and its agencies at the local, state, and national level.

Two thirds of those responding indicated no specific problems at this time with such municipal services as public safety, water-sewer, building inspection, zoning, etc.

Among the one third that did offer commentary, the condition of roads in Asheville/Buncombe was the most frequently identified problem, followed by municipal water-sewer services and rates. A responding manufacturer in Madison County cited several problems, especially with water services and waste removal.

When asked in what areas the state and/or federal government might be helpful to area manufacturers, "incentives" and the consequences of NAFTA - wholesale outsourcing of manufacturing jobs - are mentioned most frequently.

With regard to the availability of local/state governmental incentives and "support" programs that could benefit the employer, only 20% of respondents are aware of such assistance - and that coming via A-B Tech and the State of North Carolina. MEA stands ready to assist educators, government, and allied organizations in bringing information/opportunities to the attention of its member manufacturers.

 
Manufacturers and Government
MEA asked its members whether they have any specific problems with government and its agencies at the local, state, and national level.

Two thirds of those responding indicated no specific problems at this time with such municipal services as public safety, water-sewer, building inspection, zoning, etc.

Among the one third that did offer commentary, the condition of roads in Asheville/Buncombe was the most frequently identified problem, followed by municipal water-sewer services and rates. A responding manufacturer in Madison County cited several problems, especially with water services and waste removal.

When asked in what areas the state and/or federal government might be helpful to area manufacturers, “incentives” and the consequences of NAFTA – wholesale outsourcing of manufacturing jobs – are mentioned most frequently.

With regard to the availability of local/state governmental incentives and “support” programs that could benefit the employer, only 20% of respondents are aware of such assistance - and that coming via A-B Tech and the State of North Carolina.
MEA stands ready to assist educators, government, and allied organizations in bringing information/opportunities to the attention of its member manufacturers.
 
Manufacturing's Place in Economic Development
According to the Asheville Area Chamber's Community Research Center, area manufacturing is the ONLY category of “major industry employment” that shows a decline in total workforce during the past three years…especially in comparison to government, retail, services, and tourism. Nearly two-thirds of our respondents perceive a “marketing” imbalance tilted too far in favor of tourism in past years.

More recently, designated members of MEA have provided advocacy for area manufacturing firms in such influential public policy organizations as the Air Quality Control Board, the Chamber of Commerce, and the Economic Development Coalition.

(For additional commentary from manufacturers in the MEA survey, see Appendix)
 
MEA Members' Observations

While there is still the occasional good news about an area manufacturer’s expansion, new start-ups or relocations to our region, certain realities prevail:

• There is little likelihood that most of the thousands of area hourly workers in manufacturing that have been – or soon will be – among the unemployed, will find a position with comparable wages and benefits here in Western North Carolina.

• Although some of the executive-level and professional personnel at these shut-down facilities may be offered transfer opportunities by their parent corporations, these same manufacturing executives have held community leadership positions with such organizations as United Way, YMCA, etc. Such organizations will suffer as a result of this volunteer leadership being lost.

• Local charitable organizations will also suffer because of disappearing corporate gifts from manufacturers and their workforces that no longer exist.

• As the area’s manufacturing tax base diminishes, will local taxing authorities be looking to home-owners to make up the difference?

The very real threat of manufacturing’s demise in Western North Carolina also impacts businesses that service both industrial facilities and their employees. From printing and office equipment suppliers, construction firms, electrical contractors, catering services, janitorial…. the list seems endless.

 
The Survey and MEA

The Manufacturers Executive Association acknowledges that its survey represents but a small sample of manufacturing firms in Western North Carolina. We do believe, however, that it is representative of the challenges, concerns, and perceptions of many more manufacturers operating here.

If these MEA survey findings are to have any value, they will serve as the aforementioned “wake up” call to every advocate of stronger and balanced economic development in this region.

 
Appendix
 
Additional Survey Comments

"Although it will increase competition for labor resources, it is critical to the economic health of the region that we continue to attract manufacturing to the area. We need more major industries, not just small ones, and need to provide the incentives to attract them.”

“Strategic goals of providing new jobs and increasing wage levels appears to be directed at enhancing retail/restaurant businesses at the expense of manufacturing... Job creation must be balanced with labor training development or resulting competition will drive wages to the point where it is no longer effective to do business in this area.”

“We need to be looking for ways to attract new employees to the area (by providing) affordable housing or ways to transport workers from nearby areas.”

“Asheville and North Carolina need to create incentive systems for hourly workers to afford housing... Local businesses are the ones fueling income changes within the community. The government must follow its obligations to stimulate affordable housing, not trailers.”

“Within all the (local) strategies for economic development, there seems to be no concrete plan for manufacturing development.”

“It would be beneficial for local (City) officials and utility Board members to recognize that manufacturing is important - not just tourism.”

“Take input from MEA on manufactures’ needs and add to Strategic Plans of all involved in local/regional economic development.”

“Target parent companies when it’s learned they want to downsize or consolidate facilities located here.”
“Area economic developers need to be more manufacturing oriented.”

 
MEA Survey Participants
Company County Workforce
Cane Creek Cycling Comp. Henderson, Fletcher 35
Cardinal Health Buncombe, Asheville 145
Colbond, Inc. Buncombe, Enka 225
Continental-Teves Buncombe, Asheville 350
Cooper-Bussmann Buncombe, Black Mountain 290
Daniels Graphics Buncombe, Asheville 65
Dave Steel Company Buncombe, Asheville 60
Deringer Manufacturing Madison, Marshall 120
Eaton Electrical Buncombe, Asheville 500
Hayes & Lunsford Buncombe, Asheville 250
M.B. Haynes Corp. Buncombe, Asheville 550
Medical Action Industries Buncombe, Arden 350
Milkco, Inc. Buncombe, Asheville 260
Mills Manufacturing Buncombe, Asheville 180
Owen Manufacturing Buncombe, Swannanoa 550
Progress Energy Buncombe, Asheville 235
Sonopress, LLC Buncombe, Weaverville 735
Southeastern Container Buncombe, Enka 240
WNC Pallet & Forest Products Buncombe, Candler 125
W.P. Hickman Co. Buncombe, Asheville 45