aCorridor Headlines

1. Vaughan-Bassett expanding in Galax
   Governor announces 100 new jobs; saves 500.
2. Washington County developing mega site
   Tobacco Commission awards $5.7 million for project.
3. Bright spots in the aCorridor
   'Planning' and 'new' are still in region's focus.
4. From My Perspective...
   An update from Executive Director Tom Elliott.
5. around the aCorridor...
   Broadband project launches in Galax, Grayson, Carroll.              aCorridor has three Tree Cities.                           

Galax company expanding

Virginia Secretary of Commerce and Trade Patrick Gottschalk presents a Virginia state flag to John D. Bassett III, Chairman of Vaughan-Bassett Furniture Company, and Wyatt P.E. Bassett, President and CEO of the company, during the Governor's March announcement of the company expansion.

Governor Timothy M. Kaine announced in early March that Vaughan-Bassett Furniture Company will invest $2.15 million to expand its Galax facility.The project will create 100 new jobs and save 500 existing jobs. Virginia successfully competed against locations in North Carolina and Asia for the project.

The Governor said, "Vaughan-Bassett Furniture is the largest manufacturer of wooden adult bedroom furniture in the U.S. and began in Galax in 1919. The company has thrived in the Commonwealth for nine decades and will continue to be a significant employer and corporate partner in Southwest Virginia."

Employing more than 574 people in the Galax facility, the company is proud that more than 95 percent of its furniture is crafted in the United States by American employees.

"We believe our employees here in Galax represent the finest furniture workforce in the world," said Wyatt P.E. Bassett, President and CEO of Vaughan-Bassett Furniture Company. "We are committed to growing our company, and that means we will need both more machines and more employees here in Galax to operate them."

Mega site under development                          

The Virginia Tobacco Commission awarded the Washington County Industrial Development Authority $5.7 million to develop a shovel ready mega site(s) in Oak Park Center for Business & Industry, located near Exit 13 of I-81 in Abingdon. Oak Park is home to several existing industries, Paramont Manufacturing, AGC Flat Glass, Bristol Home Infusion, Inc., Virginia Laser and Universal Companies.

Last year, Washington County was a top contender for a large project that looked seriously at Oak Park Center for Business and Industry located just outside Abingdon, VA. The project was put on hold by the company following the downturn in the global economy, but interest in the development of a "mega site" project for Southwest Virginia on the part of the Virginia Economic Development Partnership and the Virginia Tobacco Commission continued to gain momentum. This spring, the Tobacco Commission awarded the Washington County Industrial Development Authority $5.7 million to facilitate the development of a shovel ready mega site(s)in Phase III at Oak Park. 

This massive grading project, designed by Thompson & Litton, will involve moving more than 1.3 million cubic yards of material and the development of three large pads of varying sizes totaling more than 90 acres. One large site will be served by rail.

In conjunction with this project, the Washington County Board of Supervisors and the Industrial Development Authority have committed to constructing a new industrial access road into Oak Park from US Route 11. This road will provide an alternate route into the park providing current and future tenants additional routes in and out of the park, which is considered a very important marketing tool. The new road also will provide access to an additional 100 acres that will be developed as Phase IV of Oak Park.

The grading project is expected to begin this summer and to be completed in spring 2010. The alternate access road will be designed this fall and bid in spring 2010.

aCorridor businesses meeting challenges of difficult economy

MTC Transformers, headquartered in Wytheville, has been named to the 2009 Fantastic 50 list that recognizes the fastest growing companies in Virginia. This aCorridor company that builds and services transformers for electric companies, mass transit systems, the mining industry, the military and others, has grown dramatically over the past decade. Starting with four employees in 1998, the company employs 100, and the company reports that sales through the first four months of 2009 are ahead of the same period in 2008, and in fact sales in April 2009 were a record for the company.

Even though the nation and the region are facing some uncertainties in the economy, a look at regional newspapers reveals that there are still bright spots in the news about aCorridor companies. Some are changing their businesses to meet new challenges, others are making plans to expand, and some are recalling employees.

For the second consecutive year, a Wytheville business is on the Fantastic 50 list of Virginia's fastest growing companies. MTC Transformers of Wytheville was ranked the 39th fastest growing company, the only manufacturer on the list compiled by the Virginia Chamber of Commerce and Virginia Business magazine.

Two Galax furniture manufacturers are seeing success with new furniture lines that received attention at this spring's High Point, N.C. market. Vaughan-Bassett Furniture Company introduced the Barnburner Ten adult bedroom collection, an ensemble created from select hardwood solids with a white, merlot and cherry finish. According to an article in the Galax Gazette, Doug Bassett, Vaughan-Bassett's vice president of sales, said the new collection "has been the best-received and very successful, especially considering these economic times." Another line, Cottage Colours, has been added to the company's seven-day delivery list. When ordered, Vaughan-Bassett will be able to deliver any piece from Virginia to any of the 38 states between Galax and Denver, Col., in just seven days. "That's something that Asia can't do," said Bassett. Another aCorridor furniture maker, Vaughan Furniture, also has launced a new line, its Kathy Ireland World Wide products. This company said it saw an increase in its showroom attendance at the recent furniture market and increased promises by retailers to carry the new line which should be in stores in June.

While the effects of the downturn in the economy, including layoffs and closings, have hit the aCorridor, some companies are making plans for new lines of business and at least two major employers in the region are recalling employees. According to the Bristol Herald Courier, Utility Trailer announced it will call back 160 laid-off employees this summer to its Atkins and Glade Spring plants due to an increase in orders from former and new customers. In May, Royal Mouldings Limited in Atkins also announced a recall of laid-off employees because of an increase in demand for its products.

A Chilhowie apparel company has received a contract to make berets for the U.S. Army and Air Force. Jensen Apparel in Chilhowie announced in late March it had secured a six-year, $20 million contract with the federal government and the availability of 10 positions for people experienced in industrial sewing to complement its staff of 30, according to the Smyth County News. The company also made plans to move into the vacant Acme building in Chilhowie to accommodate the expansion.

Wytheville's Pepsi Bottling Group plant held a ceremony May 11 to introduce its new "green machine" trucks, according to a report in the Wytheville News. The company has added 21 hydrogen-injected trucks to its tractor-trailer fleet. The system pulls hydrogen out of distilled water to boost the engine's fuel-burning power, and the company expects to see a 15 percent increase in fuel economy from the use of the new trucks, a savings of more than 4,200 gallons of fuel per truck and a reduction of 908 metric tons of greenhouse gas emissions annually.

After months of repairs and renovations, the Wolf Creek Indian Village & Museum in Bland County held a grand re-opening ceremony in May. The tourist attaction became the property of the Bland County Board of Supervisors after the Bland County Historical Society relinquished ownership, and is now owned by the Bland County Economic Development Authority. According to the Bland County Messenger, among the many improvements at the museum are 17 displays dedicated to Native American culture. Included are artifacts, tribal history and chronology.

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From my     perspective...

Tom Elliott     

Executive Director

2009 Year-to-Date Report Card

• 3 Expansions, 128 jobs, $3.15 Million capital investment

The numbers tell the story again – so far, 2009 has been a tough year for project announcements in our region. However, as you can see from this newsletter, there has been some good news in spite of all the bad.

Many economists are predicting that 2009 will continue to be a slow year, and hopefully we will start to see some recovery in mid to late 2010. With all that said, we have seen a slight upturn in prospect activity in the last month or so, and let’s hope that’s a good sign.

I mentioned the importance of READINESS in my last article. Several of the aCorridor localities are taking steps to improve their readiness by working on infrastructure and site development. The Washington County Oak Park project is a good example, and there are others in the works. This will put us in a strong competitive position as prospect activity does start to increase.

Although it will still be an off year for announcements, I think our report card will look better before the year is over. Keep your fingers crossed and stay tuned!

around the aCorridor...

Grayson County has a new county administrator. Jonathan Sweet, formerly Bland County administrator, began his new job as Grayson County administrator on June 1. Sweet, who has held the Bland position for six years, said he wanted to leave on a high note, and that Bland County is one of the most fiscally sound counties in the state and "has an amazing staff that is confident and capable.”

Three communities in the aCorridor are Tree Cities. Recognized for their programs supporting trees in the urban environment, Abingdon, Bristol and Marion, the only Virginia communities west of Roanoke, are designated as Tree Cities by the Department of Forestry. Paul Revell, Virginia Department of Forestry urban forestry coordinator, came from Charlottesville to Marion in April to mark Arbor Day and to award the town its seventh Tree City USE flag to be flown over town hall.

The Wired Road broadband project in Galax, Grayson and Carroll counties is the "first step in re-engineering and revitalizing the economy." This is how Sen. William Wampler described the $26 million project at a ribbon-cutting and launch ceremony in April at the Rex Theater in Galax.The Wired Road broadband project is being deployed throughout the two counties and in Galax. The Wired Road started in the region two years ago, with Carroll County schools being the first customer. Instead of an actual ribbon cutting, officials symbolically connected two ends of fiber optic lines running across The Rex stage.

Carroll County's Exit 19 and Wildwood Commerce Park get a boost. Ninth District Rep. Rick Boucher (D-Abingdon) and Rural Development's Travis Jackson in late March presented a $1.9  million check for a low-interest loan to fund the sewer project that will serve the Interstate 77 area, including the under-development commerce park and 34 homes on Airport Road and Training Center Road. The funding will build the entire project, Boucher said.

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