Year In Review: Economy

Manufacturing job announcements throughout the year were a hopeful sign the local economy is picking up again.

Burke Development Inc. teamed up with county officials and municipalities this year to attract new businesses and to help existing businesses grow.

According to County Manager Bryan Steen’s report on the county government’s 2011 accomplishments, economic development this year resulted in the announcement of 672 new jobs, $65.5 million in new investment, $5.4 million in grant funds and $20.1 million in annual payroll for new jobs.

Those numbers don’t include all economic development projects that municipalities worked on without the direct involvement of county government.

American Roller Bearing announced this month plans to create 231 jobs over the next three years in Burke and Alexander counties. It will also invest $3 to $5 million per year for the next five years in land, buildings, machinery and equipment.

A.R.B., which operates a facility on 307 Burke Drive, also purchased the old Rexnord building on Chain Drive for expanded manufacturing capabilities.

The North Carolina Economic Investment Committee awarded A.R.B. a Job Development Investment Grant to facilitate the expansion.

A.R.B., under the terms of the JDIG, will be able to receive a grant equal to 65-percent of the state personal income withholding taxes derived from the creation of new jobs for each of the nine years in which the company meets annual performance targets.

If the company meets those targets and sustains them for nine years, the grant could yield as much as $2.031 million in maximum benefits.

Grants and local tax incentives also helped bring Ekornes ASA to the county.

With state grants totaling more than $500,000, local matches and incentive agreements reducing property taxes, Ekornes announced in July the opening of its first U.S. facility.

Ekornes is the largest furniture manufacturer in Norway and is renovating a county-owned building on Wamsutta Mill Road.

It aims to create 56 jobs and invest $1.5 million over the next three years. Ekornes expects to pay new employees on average $30,464 a year, plus benefits.

Geiger International, a subsidiary of Herman Miller, announced in April plans to create 64 jobs and invest $3.5 million over the next three years when it purchased the former Cox Manufacturing building, 218 Cline Park Drive, Hildebran.

Salaries for the jobs will average $33,754, with manufacturing associates making on average $30,981, which is higher than the county’s average annual wage of $30,784.

The company hopes to hire 40 people by the time the plant is fully operational, which could be as early as March 1.

Most of the new employees will work with completing the furniture, whether it’s upholstering, staining or finishing.

Plans for a Super Walmart moved forward this year when WRS Realty, the developer, broke ground in July at the old Henredon plant.

A Super Walmart will anchor the shopping center, Morganton Heights, which is expected to open in 2013.

The construction work is expected to employ 250 workers, and around 900 to 1,000 retail jobs are expected.

Morganton Mayor Mel Cohen called the project a “shot in the arm” for the local economy.

Businesses such as Ross, Golden Corral and TJ Maxx have confirmed or announced plans to operate within the shopping center.

Case Farms is also adding 100 jobs as it expands in 2012.

With the help of a $500,000 building reuse and restoration grant from the N.C. Rural Economic Development Center, the Morganton facility will be increasing its production.

New jobs will be created with the addition of a second shift of workers.

Existing business Ice River Springs announced an expansion that would result in 12 jobs and $7 million in new investment.

And Caterpillar hopes to add 28 jobs with $23 million in new investment as it expands production lines.

Larger companies weren’t the only businesses receiving help and making an effort to grow this year.

Burke Business Loan Program awarded $250,000 in loans to county businesses.

Valdese Economic Development Investment Corporation (VEDIC) launched BBLP last December with a Golden Leaf grant. It continues to administer the program with the help of local agencies.

BBLP assists small businesses in the county by providing access to a flexible source of capital. The program aims to help the county by creating or retaining jobs, increasing economic opportunity, strengthening the business sector and creating partnerships with local commercial banks and other private sector lenders and investors.

Twelve businesses across the county received loans ranging from $10,000 to $35,000. They expect to create 65 full-time jobs and 37 part-time jobs. Another 18 jobs will be retained through loans.

Gov. Bev Perdue recognized VEDIC last month for its efforts to create jobs with one of nine inaugural Governor’s Innovative Small Business Community Awards.

The award “recognizes projects, strategies and initiatives that reflect excellence in community economic development, small business and entrepreneurship and sustainability in North Carolina,” according to Perdue’s office.

VEDIC, in addition to BBLP, administers a revolving loan program aimed at helping businesses start and expand. VEDIC helped create 46 full-time jobs and 32 part-time jobs while retaining 48 existing jobs.

Downtown Morganton is seeing more foot traffic as tenants move into stores.

Grants and small business loans from the city have helped fill those stores and helped existing businesses expand.

Root and Vine Restaurant and Kalā Gallery are among the new businesses that received help from the city. Root and Vine is a new restaurant, while Kalā relocated from Lenoir.

And with the help of a small business loan from the city, Yianni’s Family Restaurant finished installing an outdoor deck.