Randy Harrell hit the ground running in April when he took over the job as executive
director of the Salisbury-Rowan Economic Development Commission.At his first meeting with the local EDC board, he announced
that he would host the state Economic Development Commission meeting in Salisbury in
January 2000.
Hes stayed in motion ever since.
As he goes about his job of attracting industry to
Rowan County, Harrell says he finds the community has what most people are looking for:
location, location, location.
The only drawback he identifies here now is
workforce preparedness, a weakness he says exists across the state and nation as well. As
people are losing jobs in conventional manufacturing, many of them are ill-prepared to
compete in the modern job market. They need greater skills.
Harrell also wonders when Salisbury and Rowan
County will have a more attractive entrance off I-85 at Innes Street.
He addressed those issues and others in a Q&A
interview with Post editor Elizabeth G. Cook. Heres an edited transcript of that
interview.
Q: When it was announced that you were coming
here, your chairman at Elizabeth City-Pasquotank praised you highly and said, as an
example, that when some board members knew of businesses they thought theyd like to
have there, you did your research and recommended against some of them. What kind of
businesses might those have been?
A: They were companies that may have created some
environmental concerns, such as air emissions, smoke stacks, those kind of things. In
Elizabeth City and Pasquotank, the county is on the Pasquotank River. One of the sites
being considered would have had smokestacks. And since it was on the Intracoastal
Waterway, I thought it would be a detriment and would decrease the aesthetic value of the
community, so I advised against it.
Q: How did they take that?
A: They agreed with me. We didnt pursue it.
Q: Whats the biggest industry that you
recruited there?
A:The biggest industry that I recruited while I
was there was Davis Yachts, which is no longer there because they fell during the decline
of boat manufacturing. At the time, they were employing approximately 350 people.
Shortly after we convinced them to locate in
Elizabeth City, the federal government implemented the luxury tax, and these were
million-dollar yachts. When youre trying to sell a boat and you have to pay a 10
percent luxury tax on it, it really cuts back on the amount of people who can afford to
buy a boat.
So it put them in a bind. As a matter of fact, I
believe it was 35,000 jobs across the country that were eliminated because of the luxury
tax that has now been taken away.
Q: What were some of your other successes?
A: One of my biggest successes was a company that
we brought in called Superior Brands, which manufactured pet treats. It was a company out
of Quincy, Mass. So we were competing against about five or six other states. They were
looking all over North Carolina. It is now a part of Nestles; it was purchased by
Carnation. So the family business sold out about five or six years ago and theyre
probably employing close to 300 if not more now, depending on the peak season.
Youd be surprised how many people buy pet
treats for the pets during the holidays.
Q: What were some of your disappointments or
frustrations while you were there?
A: If I had some disappointments, it would be from
the standpoint of working with companies and knowing you didnt have the amenities
and infrastructure the companies were looking for. Although we would have an opportunity
to work with those, when they quickly met with us and we talked about their requirements
and their needs and then we found out we couldnt provide it, then of course you lose
the company.
Companies locate because you have what the
companies need. If you cant provide the infrastructure, such as the water and sewer,
natural gas, you can quickly be eliminated.
Q: Do they have natural gas in that area of the
state?
A: They do not. They will. You know, they passed a
bond referendum. Itll be two, three years before you see it in northeastern North
Carolina. Its in some counties in northeastern North Carolina, but of the 17, there
are only one or two that have it.
Q: As youve been here in the Economic
Development job in Rowan County, have you encountered any myths that youve had to
fight, or misperceptions people have about this area?
A: No.
Q: What seems to be the general impression of this
area?
A: Its a wonderful place to be. Matter of
fact, when word was out that I was coming to Salisbury I received a lot of calls from my
friends all over the state and across the country. Salisbury is a highly respected place.
People know the potential of this community. They saw it as a good move for me and I did
too. ... It is a wonderful place, it really is.
Its starting to grow on my wife. She left
from where her mother and father were, and had been raised there all her life. Shes
beginning to like it. Were excited. Were ready to build a house.
Q: What are Rowan Countys strengths as you
try to present it as a place for someone to live in and locate a company in?
A: Location, location, location.
Rowan has close proximity to Charlotte and
Mecklenburg County, its up along the 85 corridor, thats going to be eight
lanes. Were close to Raleigh, close to Winston-Salem. All that is a very positive
factor in attracting industry.
Q: What are the drawbacks?
A: Drawbacks right now, from what Im hearing
but its not just here, its across the state and across the nation as
well is the labor force.
One of the problems that were having in
Rowan County and across the state is there is a major decline in traditional
manufacturing, such as your textile manufacturers. Youre going to see a major impact
take place in the tobacco industry because of the tobacco settlements. So there are going
to be some layoffs in that profession as well.
A lot of these individuals arent trained. So
when they lose their jobs theyre not in a position to find other jobs.
So one of my main concerns is, as it is just about
every developer across the state, is workforce preparedness and making sure our General
Assembly and our state continue to provide funds to train these individuals. Youre
going to see more of a decline.
Just to give you an example ... more than 110,000
jobs have been lost since 1995 (due to plant closings and lay-offs), 20,000 this year in
manufacturing. Thats a lot of jobs.
Q: What those workers are told is, if youre
ever going to lose your job, this is the best time and the best scenario because there are
so many jobs out there.
A: Well, Im not sure there are that many
jobs out there. If you look at the unemployment rate, its lower than its ever
been. Our unemployment rate in October was 3.6 percent. Thats fairly low. At one
time it was below 2 percent. Then you had Cone Mills and these others close out.
I think it was my chairman who mentioned before I
came here that theres a lot of diversity in this community. Most of them have found
jobs. But there are still some that worked for Cone Mills that are unemployed because they
dont have the skills that businesses are looking for. We have to find a way to train
them and be sure they have jobs so they can take care of their families.
That is one of my major concerns, but that is a
concern thats facing everybody. Were no different in that regard.
Q: Do you think the word is getting down to the
students or workers that they need more training? Have we gotten rid of the expectation
that, well no matter what, I can find a job somewhere?
A: Thats a hard question to answer. Our
schools are beginning to let students know that technical training is just as important as
going through a liberal arts program. Not everybodys right for college. There are
jobs for them out there if they want to take on these special training positions, such as
welding or electricians, plumbing. Theres always a profession you can go into if you
want to. But I think, 10-20 years ago (the thinking was) you have to go to college and get
a four-year degree. And you still see that with a lot of families; probably most families.
But there are jobs out there in the technical market just as there are in the high
education market.
Q: What does Rowan County need to do to position
itself better for new industry or expanded industry?
A: I think theyre moving in the right
direction, from the standpoint of planning. A lot of counties across the state and nation
in general sometimes are more concerned about short-term planning than long-term planning.
With whats happened in Cabarrus County and the growth thats taken place over
there in the last three years, I think its created a substantial amount of insight
to our elected leaders that we need to move slowly, we need to plan accordingly.
A good example of that is when (County Manager)
Tim Russell recommended we look at the 85 corridor, that we make sure the property is
evaluated and assessed to its best uses. That was a good move. The county wants to grow.
We all want to grow because it adds to the tax base. Sometimes you can grow too fast and
it can be a detriment and have a major impact on your public schools.
So I think controlling growth is something
youre going to see the county continue to work with, and the city as well.
Thats something I completely support.
We dont need to be in much of a hurry. When
it comes to economic development, especially when you know youre in a growth area,
patience is definitely a virtue. Lets make sure we do the right things and
were selective on the type of companies we bring.
We are working with a substantial amount of
companies that will pay good wages and benefits. These are the type of jobs that will
hopefully encourage our young people to come back and stay in Salisbury and Rowan County.
As a parent, I dont fault my son for going
where he can make a better salary and take care of his family. If we can create those
technical positions and skilled positions here, then I think well be in a position
to keep our young people here and draw young people. Thats important to me, very
important.
Q: Do we have water available at all the places we
need it now?
A: Yes. Infrastructure is good. We have all the
infrastructure and amenities that we need. As we continue to grow, were going to
have to upgrade. But right now were in a position to work with the larger industries
and provide whatever is needed for small industries as well.
Q: Is there anything else we need to do to get
ourselves more prepared, make ourselves more attractive?
A: One of the things people seem to have a concern
about is the entrance coming into Salisbury off 85. They see that as being an eyesore.
Im not sure what the plans are for the city and county to do anything with that. But
that really sends a message. You know, were getting ready to put up this new
building on Innes Street for the Chamber of Commerce and the EDC and the visitors center.
When they come off 85, that should be, Shew, what a beautiful place. And there
are improvements that are taking place now, but we need to continue to make sure we do the
right things aesthetically to make this community pleasing, from a perception standpoint.
Q: Hows the activity right now?
A: Were busy. We went up to Raleigh last
week and we made presentations to 21 representatives from the Department of Commerce. Took
them to City Club for lunch. Were probably maybe I shouldnt say that
were generating a lot of activity through the Department of Commerce. We have
a real good relationship.
Right before you came, we had a call that
theyre going to bring a client in next week.
Our relationship with Carolinas Partnership is
good. And our relationship with my colleagues adjacent to me is good.
Q: Do any prospective industries have feelers out
in Rowan County right now?
A: Yes. We are working with a substantial amount
of companies. In this profession, you may be working with them but it may be a long time
before it moves toward fruition. Were working some small companies, some mid-size
companies and some big companies.
Q: How do most of them hear about Rowan County?
A: We have a good web site. We also have a close
relationship with consultants. Consultants are becoming a bigger part of this profession.
Large companies now basically go out and retain the services of a consultant. They do the
fact-finding mission. So if you know these consultants and theyre aware of your
product, then when theyre working with a company theyll contact you and see if
youre interested in working with them. The relationship with consultants has
increased substantially.
It used to be when you worked with a large company
and Ive been in the business a long time you worked with the president
or vice president. Now you work with the consultant. ... They go back and make a
recommendation to corporate offices: This is where you might want to go.
Q: As we look into recruiting industry here, are
there any areas of the county that you think should be off-limits to developers?
A: The question I have to ask is, what type of
development? Industrial development, from the standpoint of manufacturing, there may be
some areas that should be off limits. Im not sure if Im in a position to
identify them. But there are certain areas that need to be specifically designed for
commercial development, other areas for retail development, other areas for
service-related ventures. Thats what its important that we plan accordingly
and make sure that we develop property in the right areas of the county.
The main thing we dont want to do or I
dont want to see happen is anybodys property depreciate. Im hoping when
development takes place in our county, it appreciates property. That was one of the
reasons the county went forward with the implementation of zoning, which was the right
thing to do.
Q: Some people talk about preserving farmland.
A: And I support that. Not every piece of property
in Rowan County is prime for development. There are some pristine areas out there and
Id love to see them stay like they are.
Its nice to ride around in the county
sometimes and see no development. Its beautiful. ... I think sometimes we forget
about our farmers and agribusiness. They play a prime part in our economy. And
theyre struggling right now.
Q: Do you see the potential for any more
development in the city of Salisbury?
A: From the standpoint of commercial development,
yes, and thats already taking place.
Dave Treme went to Raleigh with us last week. We
took a team consisting of my operations, the EDC; we had county representation, we had
city representation, we had chamber representation, and we had Judy Newman from the
visitors center. So the message we sent was were all working together.
Q: Theres a rumor floating around that
yall are about to close in on something really big.
A: Thats the rumor.
Q: Its been called the Whale
Project.
A: I mentioned at one of my board meetings.
Thats one of many projects that has that name, and that is a project we are working
on with a consultant. It is a good-sized project, but its not one I can elaborate
on. Were still in the beginning stages on that. Were fortunate that were
still in the running. But thats a project thats probably going to take a long
time before it does move toward fruition.
It would be a great asset to Rowan County. But in
this profession I dont get too excited like I used to. We work at their pace; we
provide them information they need. We hope we may make the short list. Right now Im
confident that may happen, but you never know. Things can change so quickly.
Many projects Ive worked with over the
years, we thought we had them then at the last minute they make the decision to go
somewhere else. Or it will come down to right at the end and the incentives get into it.
They start running their numbers. You can give us 10 million dollars worth of
incentives....
Q: They have you over a barrel. How do you feel
about incentives?
A: I dont like incentives, but yet Im
a realist. If were going to compete and were going to bring industry in here,
we going to have to play the game. As long as can provide an incentive with the
understanding that were going to get a return on our investment, then its
justifiable.
Some cities and counties do things that I would
not recommend that Rowan County do. But we do run the cost-benefit analysis.
CP&Ls a good example. Its a
possibility it could have gone to another county. So the county had to come to the table.
And thats a small amount of money for what theyre going to get in return.
.... You have to listen and you have to be
receptive and you have to say, Well consider it. Well come back with a
proposal. And thats what Rowan County does. They do it very carefully.