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published Sunday, June 28th, 2009

Neighboring states ready for Volkswagen rollout

Alabama may have lost out in its bid to get the mammoth Volkswagen assembly plant, but that doesn't mean the Yellowhammer state and other neighboring states aren't eyeing the project.

The head of North Alabama Industrial Development Association said several northeast Alabama counties are perfectly situated to get spin-off businesses from the $1 billion Chattanooga plant.

"Alabama has a long history of retraining workers for those highly skilled automotive positions," said Tate Godfrey, president and chief executive officer of the association.

Limestone County, Ala., was in competition for the Volkswagen plant, but lost out when the German automaker chose Chattanooga's Enterprise South industrial park in July 2008.

That's important for Alabama, which has suffered losses in textile and other manufacturing jobs.

"Take Fort Payne for example. It was the sock capital of the world," Mr. Godfrey said. "But all those jobs have moved to Asia."

That regional hope is shared by development officials in western North Carolina who are trying to further integrate that region into the Chattanooga business community.

"Industry doesn't stop at the state line," said Scott Hamilton, CEO of Western North Carolina Economic Development Group.

He said western counties have been successful in joining economic development alliances with eastern Tennessee groups like Southeast Tennessee Development Resource Group. Those pairings will put western counties in position to garner businesses when Volkswagen begins operating in 2011, Mr. Hamilton said.

"We hope tier 2 and 3 suppliers will set up shop in those counties," he said.

ALABAMA WEATHERS ECONOMIC SLUMP

Though automakers in Alabama have idled some plants, Mr. Godfrey said layoffs have been negligible and the state is positioned well to take advantage of future economic recovery.

"The four key auto companies and suppliers have been able to weather this storm without signifcant job losses," said Mr. Godfrey. "Particularly Toyota, which has had no layoffs so far."

Alabama ranks sixth in U.S. car and light truck production -- minivans-pickups-SUVs, according to the Alabama Automotive Manufacturers Association. The state is home to Mercedes-Benz, Honda and Hyundai assembly plants. It is also home to International truck and Toyota engine plants.

NORTH CAROLINA FOCUSES ON ENTREPRENEURS

In western North Carolina, Asheville is king, but just over the Smoky Mountains, a thriving network of entrepreneurs are driving the economy, said said Mr. Hamilton.

Working with the the Blue Ridge Entrepreneurial Council, the region is trying to support entrepreneurs by supplying education, mentoring and networking, communications and capital formation.

The Blue Ridge Food Ventures is a government-backed kitchen incubator in Candler, N.C., that gives access to entrepreneurs interested in starting a food-manufacturing business.

The area, with scenic mountain views, has a thriving tourism industry, too, Mr. Hamilton said.

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about Adam Crisp...

Adam Crisp covers education issues for the Times Free Press. He joined the paper's staff in 2007 and initially covered crime, public safety, courts and general assignment topics. Prior to Chattanooga, Crisp was a crime reporter at the Savannah Morning News and has been a reporter and editor at community newspapers in southeast Georgia. In college, he led his student paper to a first-place general excellence award from the Georgia College Press Association. He earned ...

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