aCorridor Headlines

1. 14 announcements, 816 new jobs in 2007
   Gates, Results Companies begin operations.
2. aCorridor Board welcomes four new members
   Joyce Henderson marks 18 years with the organization.
3. Spotlight on Appalachian Power Company
   Interview with Chairman's Level sponsor.
4. From My Perspective...
   An update from Executive Director Tom Elliott.
5. around the aCorridor...
   Food City is bringing back familiar brands. Wytheville business recognized for customer service. Grayson County is linked to healthcare through telemedicine.

Existing business expansions,       new industries bring $68.4 million investment to aCorridor in '07

Gates Corporation, maker of hydraulic systems for industrial equipment and vehicles, is operating in the Highlands Business Park operated jointly by Smyth and Washington counties. Below, employees of The Results Companies handle customer service calls for XM Radio in the company's new operation located in the Crossroads Institute in Galax.

Eight existing industry expansions and six new industry locations highlighted the economic development landscape in the aCorridor in 2007. 

Existing industry expansions resulted in 236 new jobs and $44.8 million in capital investment. New industry locations, led by Gates Corporation, maker of hydraulic systems for industrial equipment and vehicles, and The Results Companies, a customer service center for XM Satellite Radio, brought 580 jobs and $23.6 million in capital investment. Gates has about 50 employees and is operating in the Highlands Business Park, located in Washington County and jointly operated by Smyth and Washington counties, and will eventually employ 172. The Results customer service center is located in the Crossroads Institute in Galax and in less than six months of operation employs more than 265. Other new businesses announcing locations in the aCorridor include

Virginia Steel & Fabrication, Inc., $2.5 million, Bland County, 30 new jobs; a lumber processing and distribution center in Galax, Iberia Agencia de Maderas S.L., 20 jobs, $300,000 investment; United Salt Corporation, Smyth County, 18 new jobs, $8.5 million investment; and Wellborn Cabinet, Inc., 100 jobs, $3 million investment.

Wythe County led the region with more than $34 million in existing industry expansions in 2007, including a $17 million expansion at Pepsi Bottling Group, Inc., 20 new jobs; $15 million expansion at Brewer Automotive Components Inc., 50 new jobs; $2 million at Austinville Limestone Co., 20 new jobs; and $100,000 investment at Magnetic Technologies Corporation, 29 jobs. Other expansions included Quarter Tyme, Inc. in Bland County, $500,000; Strongwell Corporation, Bristol, 50 jobs, $1 million; American Wood Fibers, Smyth County, 30 jobs, $9 million; and eTechSecurityPro in Washington County, 20 jobs, $200,000.

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Board welcomes new members

The aCorridor Board of Directors held its first meeting of 2008 on Feb. 28 at the Martha Washington Inn in Abingdon with four new board members in attendance. The meeting was sponsored by Mountain States Health Alliance, a Gold Level investor of Virginia's aCorridor. The group heard Executive Director Tom Elliott outline 2007 major announcements and report on what's ahead in economic development. Mountain States CEO Dennis Vonderfecht spoke to the board about the health care organization's presence in the region, including Smyth County Community Hospital in Marion and the pending association with Johnston Memorial Hospital in Abingdon. Danny McDaniel of Wythe County was selected by the board to be Vice Chairman. Elliott also announced to the board that aCorridor Executive Assistant Joyce Henderson celebrated her 18th anniversary with the aCorridor on March 1.

Investing in Virginia's aCorridor

In addition to the $1 per capita investment of the cities and counties represented in Virginia's aCorridor, private sector financial support is essential to the marketing of the region. Appalachian Power Company is a Chairman's Level sponsor of the aCorridor.

R. Daniel Carson Jr., Vice President of Appalachian Power, offers these comments on private sector support:

How important to the region's economic development is an organization like Virginia's aCorridor?

Economic development is a very competitive activity, where those communities that prepare and market themselves are much more likely to succeed. They're more likely to be noticed - by prospects or by the state-wide organization with which a prospect interfaces - and then more likely to succeed in the competition to actually land a new business. In the absence of an organization like aCorridor, normal business attrition coupled with no vehicle for growth can result in fewer well-paying jobs, lower tax revenues for localities, and ultimately a decline in the quality of life for all.

How important is it for companies and partner industries to support the organization?

Good jobs and an improving quality of life are important for everyone, including existing businesses that seek to prosper, grow, and have a local source of future employees. If one subscribes to the premise that a competitive economic development function is necessary for any region or community to achieve stability, much less to achieve net growth and quality of life improvement, then it's obviously important that he or she support the economic development function.

What is Appalachian Power's philosophy about economic development and the promotion of the region as an excellent business location?

For a very long time now Appalachian Power has supported local and regional economic development activities. Our corporate creed is probably like that of other companies in that it says that we "prosper only as the community prospers, so we help it thrive in every way we can." So, we'll continue to facilitate economic development activities because it's good for the company and the area and people we serve.

One of the disturbing things we hear often in western Virginia is that we devote significant resources to the education of our young people when we send them to college or to learn a trade, only to lose them to other areas. I believe we have much to offer in this region, and that our better days in terms of quality of life and retaining our young people are ahead of us if we're willing to do what's necessary to compete with the regions and states around us.

From my perspective...

Tom Elliott                        Executive Director

2007 Year End Report Card

•  8 Expansions, 236 jobs, $44.80 Million capital investment.

•  6 New Industries, 580 jobs, $23.60 Million capital investment.

Total: 14 Announcements, 816 Jobs, $68.40 Million capital investment.

Not a bad year! Unfortunately, prospect activity has slowed somewhat in 2008 due to economic concerns (not to mention Presidential campaigns). Many of our prospects from late 2007 have adapted a “wait and see approach” that could very well last into early next year. Most experts in the field of economic development are predicting a “temporary” lull in 2008 followed by a strong comeback in 2009. Let's hope that's the case.

Meanwhile, all is not gloom and doom. We do have several active prospects in the pipeline. It's interesting to note that compared to prospects in the past, we are now seeing more projects with higher capital investment and lower jobs creation. I think this will be more prevalent in the future, and a trend that is actually quite positive. Higher capital investment means more tax revenues for the localities and even though there are fewer jobs created, those jobs will pay much better than the prevailing local wage.

Our marketing efforts will continue, and I want to give a special thanks to Appalachian Power and all of the other private sector investors who help us market the aCorridor. Please take a moment to visit the “Investors and Affiliates” page from our home page at www.acorridor.com , and don't hesitate to contact us if you'd like to join them!

around the aCorridor...

Food City, one of the aCorridor's largest employers, is bringing back some old favorites that originated here. In late January Food City announced it would soon be stocking its shelves with Terry's Snack food products, bringing about 20 new jobs to the area. The family-owned Terry's firm was established in Bristol in 1932 and had been closed for several years. The Terry's brand is now being produced at another Bristol company, Snack Alliance. Food City also brought back a local favorite Kay's Ice Cream last year.

Wytheville business Wordsprint Printing & Graphic Communications recently was recognized in a nationwide competition for excellence in customer service. In operation in Wytheville since 1987, the business was one of only three in the nation to receive the highest level of scores in the National Association for Printing Leadership's Competitveness Survey. The surveys measure not just customer satisfaction, but how much better a printing firm is in comparison to a customer's next best alternative.

Johnston Memorial Hospital in Abingdon announced Feb. 29 it would join the Mountain States Health Alliance network. Mountain States and Johnston Memorial officials said that pending regulatory approval they would enter into a partnership to own and operate the hospital, 50.1 percent by MSHA and 49.9 by JMH, but the hospital will be governed as a 50-50 joint venture.

Smyth County Community Hospital has an option on 40 acres near Exit 47 in Marion for the planned new 50-bed, 120,00 sq. ft. hospital that could be in operation by 2012. Both Marion and Smyth County have completed rezoning to accommodate the new hospital and a new medical office building as part of the initial development.

Grayson County residents will be linked through telemedicine as a result of a grant from Verizon Communications. The new service will link the University of Virginia Health System at Charlottesville to patients at the Southwest Virginia Community Health Systems in Grayson County.

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