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| A
Wake-up Call for Western North Carolina |
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| 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 |
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| 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. |
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Jeff
Imes
MEA President & Chairman Editor
(WP Hickman - Chief Operating Officer)
Telephone:828-274-4000
Email: jeff@wph.com
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Fredrick Reese
MEA Executive Contact
(WCI, Inc. - President)
Telephone - 828-667-3311
Email: freese@wciinc.org |
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| 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. |
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| 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. |
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| 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. |
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| 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.
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| 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. |
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| 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) |
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| 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. |
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| 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. |
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| Appendix |
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| 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.” |
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| 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 |
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