Chasing business half a world away

By Ken Bonner
The Daily Sentinel
Published July 17, 2009

It was a long trip, a tiring one with unexpected pitfalls, but Jackson County Economic Development Authority President and CEO Goodrich "Dus" Rogers is glad he made a visit to Wolfsburg, Germany last month.

Rogers is optimistic the visit will pay off down the road as Volkswagen suppliers begin locating close to the company's new manufacturing facility being built in Chattanooga, Tenn. Jackson County and neighboring DeKalb County are among areas in at least four states trying to lure automotive suppliers to the region. It's a competition involving sites, incentives, training and workforce availability.

"We (Rogers and DeKalb County EDA Director Jimmy Durham) need to concentrate on Tier 2 and Tier 3 suppliers," Rogers said. "A lot of the first line suppliers will be located on site in a supplier park designed to serve the VW plant."

The north Alabama area is in competition with economic developers from Tennessee, Georgia and South Carolina.

But Rogers, like his DeKalb County counterpart, is confident that the area will benefit.

Volkswagen is building its first U.S. manufacturing plant in over 30 years, a 1.9 million square foot facility, in Chattanooga that is expected to begin production of a new mid-sized sedan in 2011. The company will produce 150,000 vehicles per year, half of which will be clean-diesel, according to Rogers.

Tier 2 suppliers provide parts directly to the manufacturer and to Tier 1 (critical) suppliers. Tier 3 suppliers produce products needed by Tier 2 suppliers in their operations.

"We made some good contacts in Wolfsburg," Rogers said. "We met quite a few people and we've got some valid prospects."

Rogers and Durham attended the "Automotive Supply and Logistics: Potentials, Concepts and Methods" Industrial Forum in Wolfsburg, home of VW's German headquarters in late June.

The north Alabama duo was joined by Alabama Development Office Director Neal Wade and ADO Germany Representative Claudia Zimmerman, a native of Germany, at the forum. Zimmerman was instrumental in helping the state lure German steel maker ThyssenKrupp to Mobile. The delegation hosted a reception for those attending the forum, which provided more visibility for the state and Jackson and DeKalb counties.

Rogers and Durham met with executives of the Chattanooga facility, including Frank Fischer the Plant Manager and Don Jackson, President of Manufacturing of the VW group of America.

VW has publicly stated it wants to produce as many as 800,000 vehicles in the United States by 2018. The company, which owns Audi, is considering building a facility to manufacture up to 200,000 of that brand in the same time frame and would need additional plants to meet its stated goal for VW.

"It was an excellent trip and we made a lot of good contacts," Durham said. "We talked to them about the strength of our labor force, the strength of our workforce development...and, of course, our proximity to Chattanooga. I think we will be able to compete very strongly with other states and communities."

While the trip wasn't without its glitches, the duo was rerouted on the trip over and Rogers' luggage didn't arrive until the night before they were to return, it was effective. Within a week after Roger's return the JCEDA website had approximately 4,000 visitors to its website, many from overseas and from companies who do business with VW.

Rogers laughed about the travel troubles. "I had to go out and buy a new suit when I got over there. And then the entire forum was conducted in German. But when we talked one-on-one with people they spoke English."

In the end the Alabama contingent accomplished its goal. The Jackson - DeKalb area is now known as a viable choice and location for VW suppliers. And Rogers is confident Jackson Countians, some who will be employed directly by VW and others who will work locally, will one day reap the benefits of the groundwork that is being laid.

Editor's Note: This is the third in a four-part series. In the final installment tomorrow we'll look at the people behind the JCEDA and the efforts they make to recruit and retain industry.