It's not hard to look back at the past 12 months of Georgia manufacturing activity
and pick
out the hottest single topic.
The "b" in billion tends to stand out, as SKC Ltd. of Korea announced
the largest manufacturing investment in the state's history -- a $1.5 billion plant
to produce polyester
film for the video and audio tape markets.
Construction has already begun in Covington, about 35 miles southeast of Atlanta,
and the
first phase of the plant is expected to open in October 1998. The 400-acre site will
initially
start with 250 employees, but will jump to about 1,000 as all stages of the plant
are built
during the next 10 years.
Covington was just one of 70 sites that vied for the project in a 16-state area.
Key to landing such a huge project was $7.1 million appropriated from the state legislature
to be used for acquisition of the land, and the reputation of government leaders
in Newton and Walton counties for being "problem solvers."
"In the end, the deal is done at the local level," said Randy Cardoza,
commissioner of Georgia's Department of Industry, Trade and Tourism.
"Most companies like to be the big fish in the small pond," said Kip
Purvis, president of the Covington-Newton County Chamber of Commerce. "We got
our big fish."
SKC Ltd. is part of the Sunkyong Group of Korea, with operations in 30 countries
and
annual sales of $25 billion. Worldwide, the company employs 22,000 people.
While SKC's investment is huge, there was still plenty of other activity in Georgia's
manufacturing sector during 1996. According to Gov. Zell Miller's office, $6.3 billion
of investments from businesses and industry were committed, creating 33,324 new jobs
when completed.
Georgia has enjoyed a spurt of business activity over the past six years, with
736 new plants opening their doors, 2,688 companies expanding, and more than 86,000
manufacturing jobs created.
The appeal of Atlanta
The international flavor of Atlanta was one compelling reason the Philips Consumer
Electronics Co. (PCEC) will bring about 300 jobs from Knoxville, Tenn., to the Peach
State in the spring of 1997.
The huge TV manufacturer, which is part of the $40 billion Philips Electronics,
will be moving its top executives, sales and marketing forces to Atlanta. Georgian
officials hope that other divisions, including manufacturing sectors, will soon follow.
"This has the potential to be one of those deals that grows over time,"
Cardoza commented.
"Our move coincides with Philips' greater emphasis on marketing and sales
to leverage new digital technologies," said Robert Minkhorst, president and
CEO of PCEC. "Atlanta's reputation as a growing international business community
makes it an ideal choice for a multi-national, customer-driven company like Philips."
Digital technology is moving the firm to develop new types of televisions with
clearer pictures, as well as WebTV boxes for exploring the Internet.
Atlanta apparently won out over sites in Dallas and Charlotte.
Another 300-job project is scheduled to open in the first quarter of 1997 in Peachtree
City, about 25 miles south of Atlanta. Cooper Lighting has built a 485,000 square
foot facility that will house a regional sales office, a national customer service
center, and will consolidate warehousing and distribution functions into one location.
Cooper Lighting is a division of Cooper Industries, a $4.6 billion global manufacturer
of electrical and automotive products, as well as tools and hardware. The new facility
represents
a $20 million investment.
QuickStart Training Program
Both Cooper Lighting and SKC Ltd. share a common reason for selecting Georgia
as home to their operations.
They are just two of 2,500 businesses that over the past three decades have implemented
Georgia's QuickStart Training Program, which has been singled out by Fortune Magazine
as providing one of the most comprehensive and advanced training job programs in
the nation.
Virtually every state offers some form of training assistance or reimbursement,
but QuickStart stands out because there is no charge for the service to the company.
The program covers manufacturing, warehousing, distribution, back office, information
distribution and customer service.
Specifically, workers can get on-site training in robotics and sensory devices,
as well as in computerized control systems, distributive control systems, and solid-state
control systems. There are courses for ISO 9000, TQM, Just-in-Time inventory control,
and problem-solving. The QuickStart program also instructs employees in interpersonal
skills, self-directed team management, and work culture.
A feature many employers like is that the QuickStart can include pre-employment
training, so companies have an opportunity to preview the skills, aptitudes, attitudes
and work habits of prospective employees before they actually hire them.
All training is designed specifically for the employer, and includes orientation
to that company's policies, as well as its history and background.
The state also has a program called BEST (Business Expansion and Support Act),
which provides for a $500 to $2,500 job tax credit, depending upon location of the
new site.
Activity in Augusta
Although Atlanta got the majority of the press coverage in 1996 -- it was the
focus of the world's eye during the Summer Olympics -- other cities had their share
of business activity.
Augusta will have 120 new jobs open by 1999 when production begins at an animal
pharmaceutical plant by Monsanto Corp.
Monsanto will begin manufacturing posilac, the trademark name for bovine somatotropin,
a protein hormone that improves the efficiency of milk production in cows. The chemical
also helps young cattle grow faster.
Augusta won the bid against seven other sites partly because Monsanto already
owned the land, and the company operates two other companies in the city; Searle,
a pharmaceutical manufacturer, and NutraSweet, makers of aspartame, used in soft
drinks and foods.
"We were looking to locate in a place where we already had a facility in
the area," said Stacey Soble, spokeswoman for Monsanto. She said the large layoff
from the Savannah River Site and the high unemployment in Augusta will help to provide
for a sizable, highly skilled work force.
Early this year, Peridot Chemicals announced they would build a new sulfuric acid
plant in Augusta to replace the current facility built 30 years ago. This expansion
will boost capacity to 700 tons per day, up from the current 400 tons. Gary Randles,
president, said because of new efficiencies, the total emissions would be cut by
70 percent, despite the 75 percent increase in output. He said the company will spend
$20 million on the new plant, which should be operating by the end of 1997.
Savannah port is bustling
Nestled at the mouth of the Savannah River and the Atlantic Ocean is Savannah,
which in 1996 had 23 new companies make business investments creating more than 500
new jobs.
Savannah is building much of its future around its diversified transportation
sector. It has two deepwater ship terminals, and its expanding the number of berths.
A seventh container berth will be completed early next year, and another is slated
for construction by 2001.
Two major railroads, CSX Transportation and Norfolk Southern serve the area, as
well as the Georgia Central Railroad. Air cargo is increasing at the airport, and
more than 100 truck lines serve the region. Two major interstate highways also intersect
the city.
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