Martinsville-Henry County Economic Development Corporation

Development efforts outlined

May 15, 2008
By MICKEY POWELL - Bulletin Staff Writer. Virginia’s recognition as the best state in which to do business has been “a mixed blessing,” the state’s top economic developer said while visiting Henry County on Wednesday.

In recent years, Virginia has garnered that recognition from several business-oriented publications and a cable television business news channel. The state was honored on the basis of factors such as the cost of doing business, quality of the state’s work force and ease of dealing with governmental officials, according to the Virginia Economic Development Partnership’s (VEDP) Web site.

While the recognition benefits Virginia, it sometimes makes lawmakers complacent about economic development, said VEDP Executive Director Jeffrey Anderson.

Economic development efforts must be refocused periodically as the state’s needs change, and support from lawmakers is necessary, he indicated.

Both “our harshest critics and greatest supporters are in the legislature,” Anderson added.

He did not mention any particular lawmakers or efforts to reverse their complacency.

Anderson was the keynote speaker at a Business Appreciation Luncheon on Wednesday at the Bassett Country Club. The luncheon was sponsored by the Martinsville-Henry County Chamber of Commerce and the Martinsville-Henry County Economic Development Corp. (EDC).

Anderson noted major economic development announcements in Virginia in recent years, including RTI International Metals’ plans to open a factory in the Patriot Centre at Beaver Creek industrial park in Henry County. The company, which makes titanium and metal products, aims to invest $100 million in the factory and hire 150 people, officials have said.

By their presence in Virginia, companies have the potential to lure to the state other firms that supply materials for their products or in some other way do business with them, Anderson pointed out.

Based on current business conditions in Virginia and resources in the state, the VEDP is focusing its attention on attracting four categories of companies: advanced manufacturing, security and related services, transportation and science/research, he said.

The state’s biggest asset is its highly trained, competitive work force, he said, mentioning that work force quality is most companies’ main concern.

Many firms now use consultants to work on deals with economic developers instead of working with the developers directly, Anderson said.

Companies also are in a hurry to get those deals done, he said, noting that some firms want at least the initial phases of deals completed in a matter of weeks, not months. As a result, economic developers must be ready to give “preconceived answers” on what they can offer and how quickly, he said.

The VEDP is looking for large sites statewide that are capable of attracting large industries, Anderson said.

EDC President and Chief Executive Officer Mark Heath mentioned that the Henry County-Martinsville area has such sites. He was alluding to new sites the county has acquired behind Patriot Centre and near the North Carolina line. Those sites have not yet been developed.

Anderson provided “a fascinating insight into what goes on in the bigger world of economic development” at the state level, said John Parkinson, chairman of the chamber’s board of directors.

Local economic development efforts were not discussed in detail.