Fayetteville, NC –Like many communities across the nation, Fayetteville (Cumberland County), North Carolina, just ended its annual celebration of Industry Appreciation Month. Why does Fayetteville designate the month of May to say a special thanks to their existing industry? What makes this sector different than other sectors such as retail or health care?
“The major difference is that manufacturing plants – as well as other businesses like distribution centers, agriculture, administrative centers, research and development laboratories and some information technology companies – conduct ‘primary' economic activity,” says Bill Martin, President of the Cumberland County Business Council (CCBC). The goods these companies manufacture or ‘handle' in our county are sold outside the region, and that brings ‘new' money to our local economy,” Martin explains.
Take, for example, Fayetteville 's largest industrial employer, Kelly-Springfield Tire. One of the largest tire manufacturing facilities in the world, the Kelly-Fayetteville plant produces an average of 55,000 tires a day. When someone in Billings, Montana, buys a set of Kelly tires, revenue generated by that sale comes into Cumberland County. It is used to pay wages of the local Kelly-Springfield employees who, in turn, make house payments, buy cars and groceries, and make other purchases on a daily basis.
“This is known in economic terms as the "multiplier effect," and it has a positive impact on all of our local businesses,” says Martin. As employee paychecks “ripple through” the local economy, it helps support other jobs. In 2003, the total manufacturing payroll in Cumberland County was more than $408.6 million (in “new money”). And economic models show that this “new money” supports more than 9,000 other jobs in Cumberland County .
Other Businesses Generating “New Money”
When you add the contributions of other Fayetteville area businesses that are not technically manufacturers – but conduct “basic” or “primary” activities – the impact is even more substantial. Cumberland County is home to a number of distribution centers. Five of the largest centers alone – Wal-Mart Distribution, Sprint North Supply, TBC Corporation, Dayco/Mark IV and Maidenform – employ more than 1,500 people. Their products are distributed and sold outside the area, again generating “new money.”
Local technology firms, like Advanced Internet Technologies (AIT), SchoolLink and Cingular Wireless employ over 1,000 local residents. And they “export” the majority of their services outside the area. Consider that AIT – a web hosting and technology services company projecting on-line sales this year of $65 billion – and Schoollink – an internet, fiber optic and software provider – both made Inc. magazine's list of the nation's 500 fastest growing companies this year.
“When you look at the enormous contributions of these businesses, you understand why we celebrate Industry Appreciation Month,” says Bill Martin. It's also the reason Martin's group, the Cumberland County Business Council (which oversees the activities of the Fayetteville Area Economic Development Corporation and the local Chamber of Commerce) is actively seeking to bring new business and industry to the area. “As you can see by the growth and success of our existing businesses, the Fayetteville area offers a favorable environment for doing business,” he points out. Advantages cited by Martin include the area's unparalleled workforce (one of the primary reasons many businesses choose Fayetteville ), available sites, excellent infrastructure and significantly lower costs of operation compared to the national average.
For more information on business location opportunities in Cumberland County, contact the Fayetteville Area Economic Development Corporation at 800-396-4210 or visit www.faedcnc.com .
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