No place like home
Gaston County rolls out the welcome mat for manufacturers.
By Alyssa Pressler
When you’re looking to expand or move your business, there’s a lot to consider: Proximity to an airport is important for shipping purposes and to facilitate visits by out-of-town executives. Being close to your target market is a factor because distribution costs often increase along with distance. Many manufacturers require resources such as fresh water and abundant land and electricity. The capability to draw on the local workforce for available jobs is another priority when making important site decisions.
In North Carolina, Gaston County checks many of the boxes manufacturers are seeking when it’s time to find a new or second home. About 10.8% of the state’s workforce is employed by manufacturers, compared with 8.5% nationally, according to the North Carolina Chamber. In Gaston, manufacturing makes up a whopping 20% of employment, says Steve Nye, marketing director of the Gaston County Economic Development Commission. Manufacturing in North Carolina is a staple, but here, it’s especially important.
“Like air and water, it’s necessary,” Nye says. The county has prided itself on being a choice home for manufacturers for decades. “Our folks, they’ve made product all their lives.” Among other considerations, Nye and other local officials say hospitality is key to attracting new development, and manufacturers who have recently moved to Gaston praise its business climate.
“It made a big difference because we felt right at home, and they were very welcoming to us, very responsive,” says Lothar Burger, CEO of Dhollandia North America. The international vehicle-parts company is opening a manufacturing headquarters in Bessemer City in the western part of the county. It plans to invest $30 million and add at least 150 jobs over five years. The building is being constructed on 45 acres in South Ridge Business Park and should be operating by September 2019, Burger says. Dhollandia NV, the parent company, was founded in Belgium in 1968 and opened a distribution and installation plant in Bessemer City in 2016. The company decided to bring manufacturing overseas to better connect with its U.S. market.
Dhollandia makes hydraulic tail lifts and gates for vans as well as cantilever, slider, tuck-away, special tail, column and passenger lifts. According to Burger, choosing Gaston County had a lot to do with the local market potential. Many of the products can be used at Charlotte Douglas International Airport, a short 30 minutes away. Local highways and airways make Gaston a great hub for distribution as well.
But what really sold Burger was the effort by local officials in Bessemer City and Gaston County to showcase the region for Dhollandia executives and help them obtain local grants and partnerships. “[The decision] wasn’t just about cost or savings — you also need to feel welcomed and at home,” Burger explains.
Part of making a prospective company feel comfortable is making sure you can answer questions posed by business leaders while meeting their key needs. Providing tours of the area — and sometimes even attending local sporting events — can be part of the recruitment.
“It’s that human element that makes a difference,” says Stuart Gilbert, director of community and economic development in Kings Mountain, a town of about 10,800 that is split between Gaston and Cleveland counties. “We had a client last week and at the last minute, we went to a tailgate party at a Carolina Panthers [NFL football game] with them. That’s what we like to do: really understand the client’s needs and make it a win-win for both the community and for the manufacturer interested in us.”
A recent achievement in Kings Mountain was the expansion of Firestone Fibers & Textiles Co., owned by Bridgestone Americas Inc., the world’s largest producer of tires with annual revenue of $32.5 billion in 2017, according to Tire Business, an industry publication.
Firestone Fibers & Textiles has called the area home since 1935 when it opened a plant in Gastonia, the largest city and the county seat, to produce tire cords and similar products. In 1992, the work was shifted to a Kings Mountain site. In 2017, the company decided to consolidate its Canadian plant and add 25 people to its 400-employee payroll in Kings Mountain, says President Brian Goldstine. The $19.8 million expansion will add about 110,000 square feet to its facility, putting it near 600,000 square feet overall.
“We did have terrific partners from the local community: the North Carolina Department of Commerce, the Gaston County Economic Development Commission, the city of Kings Mountain,” says Goldstine, who joined Firestone in 2017 after working at Kraft Foods Group Inc., Unilever and Kimberly-Clark Corp. “Obviously, they helped us in terms of providing support so we could [expand].”
The relationship between Kings Mountain and Firestone has been beneficial on both sides over the last two decades, according to Assistant City Manager Nick Hendricks. One of the town’s major selling points is its municipal-owned utilities that provide gas, water and electricity for residents and businesses. The unusual consolidated ownership helps the city keep utility rates competitive, Hendricks says.
Last year during a particularly harsh cold snap, the city faced debilitating penalties related to large purchases from its gas supplier. At the city’s request, Firestone executives agreed to shut the plant down for a week to limit usage. Remembering this gesture when the company started discussing its expansion, Hendricks and the city agreed to cover costs to relocate about 800 feet of a natural-gas line that was in the expansion zone, saving the company a significant expense.
“I always refer to it as the Andy Griffith mentality,” Hendricks explains, referring to the 1960s sitcom. “In the show, everything is rigid and black and white, and Andy brought the human element. … We don’t skirt regulations, but we also understand behind every decision there is a human element, and there are other scenarios that may work better.”
In Gaston County, local officials also help with grant applications, at times a tedious and confusing process that can help offset the costs of a business move or expansion. These grants can also help with local job creation, such as the North Carolina Job Development Investment Grant program, which provides incentives to help expanding and relocating businesses that commit to certain investment and employment goals.
Dhollandia’s Burger says obtaining JDIG funds was a major factor in the company’s decision. His company, which also considered Atlanta and Rock Hill, S.C., could receive more than $1.4 million over 12 years.
Separately, Gilbert says the city of Kings Mountain recently delivered a client’s grant proposal three minutes before deadline after working seven straight days on the application. If approved, the grant will offset costs and create 30 jobs for the area. “We’ll work around the clock and do whatever it takes to help our citizens and industries,” Gilbert says.
But Nye says when talking with a manufacturer who is interested in making Gaston County its home, officials also want to be sure that the business fits local needs. Just as executives study the benefits of relocating to Gaston County, Nye says the seven employees in his office also search for businesses that will offer competitive wages and great benefits and experience little staff turnover.
“A lot of people here are in the mentality of being hired and fired, and we want to go the other way round and grow a little slower,” Burger says. “We want to hire them for the long term. We want to build trust.”
To maintain a workforce that is supportive of manufacturing jobs and alternative career paths, the Gaston County Economic Development Commission works closely with local schools and Gaston College, a community college with campuses in Gaston and neighboring Lincoln counties. The goal is to ensure students are aware of their options, says Malissa Gordon, the group’s existing industry manager. Last year, Gaston County celebrated students who signed full-time contracts with area businesses while getting a two-year degree rather than going to a four-year school or signing a college sports scholarship.
“It was a bigger event than we anticipated,” Gordon says. “So many people were so excited for these kids, because they’re making a decision that will probably be a more positive outcome in terms of the experience they’ll get, plus the education … plus what they’re going to make as far as money.”
For manufacturers such as Firestone Fibers & Textiles, Dhollandia and others, doing business in Gaston County is a no-brainer. The resources are too plentiful to pass up, the local workforce is strong and it feels like a home away from home.
Asked if other manufacturers should relocate here, Goldstine, Burger and other officials say “absolutely.”
“As long as they don’t take our workforce,” Burger adds with a laugh.