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Staff Photo by John Rawlston Mike Potter, second from left, co-owner of the Southern Fabrication Contractors facility on Chestnut Street, leads a tour of the facility Wednesday morning while welding supervisor Chris Love works on a piece of steel. Listening to Mr. Potter are, from left, Don Jackson, VW president of manufacturing; Frank Fischer, CEO of VW's Chattanooga operations; Hamilton County Mayor Claude Ramsey; and Chattanooga Mayor Ron Littlefield.
Southern Fabrication Contractors, a Chattanooga company providing structural steel for Volkswagen's auto assembly plant, has added about 35 jobs due to the work, company officials said Wednesday.
VW and Hamilton County officials pointed to the jobs as one indicator local companies are benefiting from the auto factory under construction in the city.
"This is an example," said Frank Fischer, VW's chief executive for Chattanooga operations, during a tour of Southern's Chestnut Street facility.
The visit comes a day after a group with ties to organized labor, Volunteers for Local Hire, charged Tennessee politicians were "selling out" the state's work force because they didn't insist VW hire local contractors and workers to build the plant.
VW and local officials, who said the tour of Southern's facility had been planned weeks in advance, added that VW has already contracted for more than $500 million with area and Tennessee companies.
Mike Potter, Southern's managing partner, said the company is operating two 12-hour shifts to meet its VW commitments.
The company so far has supplied about half the needed steel, which was provided by Siskin Steel and Supply Co. in Chattanooga, he said.
Southern has hired 45 people in recent months, including those for the VW work, he said, and nearly doubled his work force to 110 people. The business obtained the necessary government permits and job certificates to do the work, he said.
"It has been a big impact on our business," Mr. Potter said, adding that he hopes to get other VW jobs.
the plus of proximity
Mayor Ron Littlefield said local companies have an edge on securing VW work if they take advantage of their proximity to the $1 billion plant that's slated to start production in early 2011.
Hamilton County Mayor Claude Ramsey said there are union and non-union workers at the plant site.
"It's a win-win for everybody," he said.
Michael Mathis, Regions Bank's city president, said VW has had a big effect on client Southern Fabrication.
"We've started to see the impact as other companies are looking here that haven't previously," he said.
Mr. Fischer said he made the visit because it's important to show how key Southern is to the automaker's paint shop.
"We can get a better feeling of what local business is doing," he said about Wednesday's tour.
Mike Pare, the deputy Business editor at the Chattanooga Times Free Press, has worked at the paper for 27 years. In addition to editing, Mike also writes Business stories and covers Volkswagen, economic development and manufacturing in Chattanooga and the surrounding area. In the past he also has covered higher education. Mike, a native of Fort Lauderdale, Fla., received a bachelor’s degree in communications from Florida Atlantic University. he worked at the Rome News-Tribune before ...
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