This Virginia town may be small, but it’s mighty when it comes to investment in the high-tech sector.
The city of Danville was mentioned in USA Today last year when it got tired of waiting for the private sector to wire it for high-speed Internet access. Instead of wringing its hands, it decided to wire itself, or as the newspaper put it, “grab fate by the throat.”
And when the fortunes of regional industries such as textiles and tobacco began to wane, local leaders boldly launched an aggressive strategy to reinvent the area for high-tech firms.
There’s fresh evidence that the reinvention is officially underway with the launch of a nanotechnology company and a research institute.
Danville’s Luna nanoWorks is symbolic of the convergence of the area’s old and new economies. After announcing its launch in November, the nanotechnology firm is up and running in a 24,000 square foot former tobacco warehouse.
It has hired 13 employees, including five with doctoral degrees, and plans to ultimately employ 54 workers. It plans a $6.4 million capital investment during the next five years.
The company is using nanotechnology to provide products for cancer therapy, chemical and biological warfare testing and disposal, and other applications, said Karin Clark, director of marketing and communications for parent company Luna Innovations, based in Blacksburg, Va.
Charlie Gause, vice president of Luna nanoWorks, said the company will be relying on the area’s manufacturing heritage as it hires technicians but is also seeking highly educated workers for other positions.
Danville doesn’t offer a big city lifestyle, but it doesn’t have the hassles of urban life either. Low costs of living, the absence of traffic jams and an abundance of available sites are just of few of the benefits of this community of about 50,000.
The work force is also in strong supply, with a local unemployment rate of 13 percent, compared with 3.7 percent for the rest of Virginia.
“We have recruited people from all over the country and they really like being here,” Gause said. “We’ve interviewed some really fantastic people here who are not employed or who are underemployed.”
Another benefit of Danville is its proximity to the Research Triangle Park (RTP) in North Carolina.
“One of the things we like to say is that we’re trying to raise the top point of that [RTP] triangle,” Gause said. “The leadership, both public and private, is really focused on progress. The cost of doing business here is quite inexpensive when you start to compare it with Boston, New York and [other] bigger cities.”
Government incentives contributed to the project, including a $250,000 state grant with a local match, and $400,000 in Tobacco Region Opportunity Funds.
In another initiative, the Institute for Advanced Learning and Research opened a year ago in a state-of-the-art, 93,000 square foot facility in Danville.
A work force of about 50 is employed in the fields of polymers, unmanned systems, high value horticulture and forestry, and motorsports engineering.
Another 35,000 square feet will be added to the campus, with construction expected to begin next month.
Semiconductor Companies Grow in Texas, Michigan
While offshoring continues to make headlines, industries continue to pour concrete and pile mortar on bricks for new facilities across the United States.
Another smaller community receiving a boost of high-tech investment is Thomas Township, Mich., near Saginaw.
A $40 million expansion by Hemlock Semiconductor Corp., announced last November, will result in more than 100 new jobs.
In addition to local incentives, the Michigan Economic Development Corp. approved a $1.1 million tax credit to help convince Hemlock to choose the state over competing sites, both foreign and domestic.
“This business incentive helps offset the competitive disadvantage the global competition has on both energy and labor costs,” said Don Pfuehler, president and CEO of Hemlock.
In April, Freescale Semiconductor announced it would establish its global headquarters in Austin, Texas, and invest $600 million in its local manufacturing facilities during the next decade. The headquarters will employ 600 workers.
Also in Austin, Samsung Semiconductor is nearing the completion of a $500 million, 34,000 square foot expansion that began two years ago.
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