VW: Opportunity Knocks
By Ken Bonner
The Daily Sentinel
Published July 17, 2008
Local and state officials agree that despite Huntsville's loss of a Volkswagen automobile manufacturing plant to Chattanooga, Tennessee big opportunities may still be on the horizon for Jackson County.
The mood was decidedly different in the Rocket City and the Scenic City Wednesday. It showed in the city's respective newspapers.
The front pages of The Chattanooga Times Free Press and The Huntsville Times cast opposite perspectives a day after Volkswagen AG announced its plans to locate its new multi-million manufacturing facility in the Volunteer State.
"The Best Fit," the Chattanooga paper proudly proclaimed across the top of its front page Wednesday to announce that the city hard by the Tennessee River had landed the facility that will employ 2,000 people and expects to begin production during the first quarter of 2011. In a special edition Wednesday the paper said it simply, "It's Chattanooga."
The Times lead story showed the city and north Alabama's disappointment that VW did not choose a megasite near Greenbrier in rural Limestone County. It read, "Wheels Fall Off City's VW Dream," in big, bold capital letters.
In Jackson County the mood of economic developers can best be described as optimistic.
The big question didn't change for Jackson Countians. What benefit, direct and indirect, can it expect?
"Obviously we were pulling for Alabama, but I'm over that," Jackson County Economic Development Authority President Dus Rogers said. "We're excited. We'll likely see more direct benefit off the Chattanooga site than the Huntsville site."
The two sites considered by VW are about equal distance from the heart of Jackson County. With automotive suppliers already located here Rogers is hoping each will benefit by providing supplier parts for the world's fourth largest automobile manufacturer. Economic developers in both Alabama and Tennessee estimated that 6,000 — 9,000 spin-off jobs will be created.
"We're trying to set up a meeting immediately with state and NAIDA (North Alabama Industrial Development Association) leaders to make plans to go to Germany and meet with Volkswagen officials," Rogers said.
Just over 1,700 Jackson Countians already work jobs in Hamilton County, Tennessee, according to data from the U.S. Census Department. Rogers believes many more will have the opportunity to find work because of VW's decision to build a mid-size sedan in Chattanooga.
A plan is already in place to recruit the spin-off industries that will follow the automotive manufacturer. It was developed by state and regional economic developers when Toyota chose to locate a plant in Tupelo, Miss. Rogers says it will be fine-tuned and used to help Jackson, DeKalb and Marshall Counties compete for those companies that will supply VW.
"Many of north Alabama's counties are very near Chattanooga and will benefit from jobs and economic investment in Tennessee," U.S. Senator Richard Shelby (R-Tuscaloosa) said.
Even Tennessee Gov. Phil Bredesen acknowledged that north Alabama and north Georgia will likely land many of the suppliers needed by VW. He said the announcement was a benefit to the entire tri-state area.
Five Jackson County manufacturers directly supply the automotive industry and another, Polyamide High Performance, supplies materials for air bag manufacturers worldwide. The companies provide jobs for approximately 375 people. The other manufacturers are Sanoh America, NCI Manufacturing, KTNA, B&L Fabricators and ICB Electronics.
"Alabama is obviously disappointed our state was not selected," Alabama Gov. Bob Riley said. "But we are extremely pleased this Volkswagen plant will be located close to us."
U.S. Congressman Bud Cramer (D-Huntsville) who represents most of north Alabama, including Jackson County, also expressed his disappointment but remains optimistic.
"I'm confident that our workforce and business-friendly environment will continue to attract top-tier businesses," he said. "I commend Gov. Riley and the entire regional economic development team for their hard work on this project."
Rogers has done his homework. He knows that it is 67 miles from the Enterprise South location VW selected in Chattanooga to the Jackson County Industrial Park at Hollywood. It was also about the same distance from Limestone County.
The park "gives us a leg up," Rogers said. He noted that the City of Scottsboro, the Jackson County Commission, the county legislative delegation, Congressman Cramer and others were instrumental in getting infrastructure in place to accommodate new industry. He said his office would be working to identify other locations in the north part of the county that also might be suitable for those looking for sites.
"There is a lot of opportunity out there for Jackson County. Let's go get after it," Rogers said.