Carolina Business Articles

Person County: A Thriving Transitional Economy

By Mary Elle Hunter

     In an area that in the past has relied heavily on an agrarian and textile economy, Person County is a good example of diversification. Situated in the central Piedmont region, just north of the flourishing Research Triangle cities of Durham and Raleigh, the growing of tobacco, still a mainstay of the agricultural community, has been matched by the development of new crops, such as soybeans, to lessen the dependence on tobacco alone. Another instance of transformation of land formerly used for tobacco production is the start-up of Rock of Ages Vineyard and Winery, while the drastic outsourcing of textile industry jobs to foreign countries has been met with a concerted effort to draw new industries to the county.

      Glen Newsome, Executive Director of Person County's Economic Development Commission, has spearheaded an aggressive program designed to attract new industrial companies and major retailers to offset the textile job losses. One of the most dramatic announcements of new business in Person County came in 2004 with the news that British owned BPB, a maker and marketer of wall and ceiling products for residential and commercial buildings planned a $100 million plant in Person County that had the potential of creating 200 new jobs. Founded in the United Kingdom in 1915 as British Plaster Board, BPB has grown globally, and six years ago acquired the U. S. firm of Celotex.

      Associated with the building of the BPB plant was the announcement that the company would use synthetic gypsum collected as a by-product from new anti-pollution devices targeted for installation by Progress Energy on its coal-fired power plants in the state. As such, North Carolina's Governor Easley noted that BPB's announcement to locate in Person County provides our state with an important environmentally aware company...

  Newsome lists four other major firms that have chosen Person County as the location for new operations. The U. S. Tobacco Growers Inc., a cigar and cigarette manufacturing firm, provided an additional 200 jobs and made a $25.8 million investment in its plant. Lowe's Home Improvement added another 120 jobs and built a $10 million installation.

  Carolina Sunrock, with company headquarters at Butner in neighboring Granville County, has added a stone processing plant, an asphalt plant, and a cement plant in Person County.

  An Israeli firm, Spuntech Industries, also joined the local manufacturing scene with a $40 million investment in plant facilities and added 65 new jobs. The firm produces non-woven fabric, like that used in Wet Wipes, with a variety of other industrial uses as well.

  Sizeable expansions of existing manufacturing operations have been undertaken by the Louisiana Pacific Corporation, manufacturer of oriented strand board, and GKN Automotive. Eaton Corporation, an engine component producer, is presently undergoing a three-year expansion, and Piedmont Electric Membership is adding on to its service and warehousing operations.

  As a result of the creation of new jobs from the additions of the five industries and the expansion of four others, the employment picture grew brighter in 2005.

  Unemployment in Person County stood at just over 6 percent, a significant improvement from the previous year, when the county's unemployment rate averaged 7.7 percent.

  The employment statistics are expected to reflect additional improvement as the extra jobs created by the expansion or the new industrial facilities are fully realized. 650 new jobs have been created over the course of the last three years, and the total investment in new plant or expanded construction is estimated to be in excess of $250 million dollars, according to Newsome.

  The number one segment of employment is designated to manufacturing, Newsome says, with the services sector accounting for the second greatest number of workers employed. The construction trades are a significant employer in the county as well

      We have residential building going on to keep up with the rise in our population which now tops 37,000 people, or a ten percent increase in the last six years. However, part of the commercial building that is underway relates to the emission reduction technologies that Progress Energy has planned over the next few years at its two Person County plants to comply with the North Carolina Clean Smokestacks Act.

      The two plants employ about 350 people and represent about $3.7 million in annual taxes, nearly 23% of the county's property tax base. Progress Energy's Roxboro plant, on line since 1966, is the tenth largest coal-fired plant in the United States, while the Mayo plant, its newest coal and oil-fired plant, has been a part of the community since 1983. Three hundred construction jobs are associated with the emission reduction project.

      Playing a vital role in the economic development of the community is Piedmont Community College. Glen Newsome credits the institution with excellent service in the training and retraining of workers for new and existing industries. We work very closely with them. They have served industry well over the years, and continue to do an exceptional job for us. We always involve them with any company that is contemplating building or expanding in the area.

      With a New & Expanding Industry Training (NEIT) Program in place, they assist employers by providing customized training for production employees. Qualified training programs are funded by the state with no fees to the company. Piedmont Community College also offers a Focused Industrial Training Program, using individualized needs assessments and consultations to design and implement targeted training for manufacturing industries that need to upgrade workers' skills because of technological or process advances.

      In addition, in keeping up with the trend for bioprocess technicians, the Piedmont Community College curriculum provides a BioWork course to train undergraduates for a career as a process technician in the biotechnology, pharmaceutical and chemical manufacturing industries. Upon completion of the course, employment opportunities exist in a number of fields, such as for companies producing antibiotics, paint, cosmetics, plastics, and wine.

      Person County, one of thirteen counties included in the Research Triangle Regional Partnership, has been active in the region's program. Glen Newsome cites the county's cooperation in the RTRP's advertising program and in the direct call efforts being made with the partnership on prospective companies and clients. We keep updated information on the RTRP's website on the availability of industrial sites and on suitable unoccupied buildings. At present, nine locations for industrial sites are listed, ranging in size from 190 acres in the Person County Industrial Park to 32+ acres in the Somerset Business Park.

      An interesting note is that the county's Economic Development Commission has effectively marketed some of the former textile manufacturing sites. We have an automotive equipment company in one of the locations, and a second one is being used for a charter school, Newsome relates.

      Other indications of a growing economy in Person County involve the county's airport and hospital. A multi-million dollar runway extension has recently been completed at the Person County Airport. Now at 6500 linear feat, the runway can handle any corporate craft. The Person County Memorial Hospital is in the process of finishing a 27,000-square-foot expansion of its existing facilities and is also constructing a 24,000 square foot building. Additional surgical facilities, a renovation of the ICU unit, more lab space, and relocation of respiratory services and outpatient registration are included in the project which was started a year ago and is nearing completion.

      According to Glen Newsome, Person County hasn't reached its maximum growth yet. I think we will continue to transition away from textiles and tobacco to other types of businesses. We still have plenty of room for growth, and there is a lot of opportunity if we continue to diversify.

      Because of the county's strong industrial base, efforts to attract new manufacturing business have been successful, in Newsome's opinion. He feels that the best people to sell Person County are the businesses and industries that are already in place. In many cases, the prospect only knows the community on paper, and bringing in representatives of either a small business and/or a large company for a face-to-face meeting is the best way to achieve success.

      The only constant we are working with today is change. We have to keep ahead of the curve and anticipate the next step. What worked yesterday doesn't necessarily hold true today or tomorrow.

Reprinted from Carolina Business online.