Central Shenandoah Work force training could bring a rising tide to the Crater Planning District.

Jim Quarforth: president and CEO of CFW Communications Co. in Waynesboro. Photo by Mark Rhodes

By Lisa K. Garcia
With this issue, Virginia Business introduces a new format for regional reports: a question-and-answer interview with a business leader in the thick of economic development.

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Q Economic developers nationwide are working to lure high-tech companies. Central Shenandoah’s efforts include James Madison University’s College of Integrated Science and Technology and technology parks in Augusta County and Harrisonburg. Rockbridge County recently bought 360 acres where it also may build a technology park. The Rockbridge Partnership is designing a technology training center and Verona opens a technology incubator in early May. Are these efforts enough? Will they change the industrial base in the next decade?

A I think economic development officials look at, and define, technology businesses differently. There are a lot of different types of training options based on what area of the region you are discussing. They are really there to provide support to their constituents, if you will. Rockbridge has some high-tech robotics, and JMU’s College of Integrated Science and Technology is doing a lot of work in that field. You’ve got some computer software developers in Harrisonburg, and there’s been some talk of some prospective biotech firms. There is diversity in the region, which gives us some strength. We’ve seen some successes over the last several years that we can build on.

Q CFW expands every year. It makes sense for a company like yours to grow in its service area, but what will attract other companies to Central Shenandoah?

A We’ve made a lot of progress and have a lot to be proud of. There is a high work ethic here. And the population is less transient than in some other regions, which helps turnover rates. People seem to be more committed to their jobs and the quality of the job. They know they are going be here for a long period of time, so they take ownership. We believe the area has a higher quality of life for our employees. We think it is rich in educational support from the nine colleges and universities in the region. Some of the other things that are important are the transportation system — the Interstate 81 and Interstate 64 corridor and improved air service. There are strong communication services, which we can offer, and a good public education system. And medical services. We have regional hospitals now instead of community hospitals.

Q Many people value the area’s agricultural roots, such as Rockingham County’s large poultry processors — WLR Foods, Rocco Enterprises, Perdue Inc. and Tyson Foods. The district also leads the state in other livestock and crop production and leads the state overall in farm income, with cash receipts of $371 million in 1997, according to the Virginia Farm Bureau. Will agriculture have a strong presence in the district’s future?

A These farms have become a lot more productive. Between 1987 and 1992 — I realize that is a little dated — we had a less than a 3 percent decline in the size of farms, but the market value of the products sold out of these same farms increased 33 percent. The point is there is a lot of productivity there through technology. I think this region will always have a strong element of agriculture. We also believe that there could be some kind of biotechnology component. At the same time, I think agriculture will become a small piece of the whole. It may not become small in real size, but we will have other businesses coming in that will make agriculture a small sector.

Q What businesses do you see coming into the mix?

A I think it will be technology driven. The other element is heavy manufacturing. We may continue to see that, and trucking is a big segment in the region. But I also think you will see the component of technology-driven businesses.

Q The district’s 2 percent unemployment rate makes finding, hiring and keeping qualified employees a challenge. What is your region doing to combat the worker shortage?

A Low unemployment is an issue for most of Virginia. I don’t think Shenandoah Valley is any different. There are a number of programs available for employers and employees. The programs are extremely beneficial, not only for the residents of the business community, but also for employees that really need the development of business and industry.

Q Does your company use any of these programs?

A We use Blue Ridge Community College, but we also do our own in-house training. We also provide training for various organizations in the area. For example, we have done some training for school systems that educate them on the needs of the business community, then they can put that into their curriculum. CFW’s foundation issued an "Edu-cational Challenge" to Augusta County and the cities of Waynesboro and Staunton. We challenged them with a matching grant, where we would give them 25 cents on the dollar up to a million dollars. The purpose was to build computer systems tied to the Internet and each school, public library and county administrative office. It took about two years to do, but as a result today every single school has local area networks, computers that are all tied together and to the Internet. It drove technology platforms into the school system and allowed them the opportunity to start thinking about integrating technology into the curriculum.

Q I understand ValleyNet, a new digital cell network along I-81 and I-64, will supplement a fiber-optic trunk that runs along I-81. What will this technology mean for businesses?

A We have a 500-mile fiber-optic network in Virginia that is being expanded to 1,000 miles by the middle of 2000. It encompasses a connection to every city that CFW does business in, which is pretty much the central and western part of the state. That network allows for an alternative for businesses to get access to the world, if you will, at competitive rates. The real benefit for business is increased productivity. Digital provides those applications at a much lower cost and higher quality than traditional cellular providers. The data implications are just now beginning, and we anticipate over the next several years to continue to add a number of additional data applications at higher speeds over that network. I think the overlying point here is that we can offer across this region any service that a business could acquire in any urban market. So, if you couple that with the labor force here and the quality of life, it’s a pretty powerful combination.

Q The district’s strategic plan lists out-of-state control over bank mergers and other decisions that affect local banking as a weakness. How accessible is capital in the district?

A Certainly Virginia as a whole has been impacted by these bank mergers. At the same time, I suggest that we have some very strong regional financial institutions. We have seen a lot of financial institutions pop up as a result of the consolidation. For instance, Harrisonburg has 17 different financial institutions. So, I think you have a strong base that serves a residential market and a mid- to small-size business market. If a large company comes into the region, their banking is probably going to be done by a larger financial institution.

Q Regional cooperation has become the key in many regions to marketing strength and economic development; given your region’s geographic diversity and lack of an urban center, is regional cooperation a hurdle?

A The Shenandoah Valley Partnership has a 33-member board. Each jurisdiction has equal representation. It also has a cross-section of private partners from different jurisdictions. As a group, we have developed a common mission, a common set of goals. We’ve developed a business plan that tries to leverage the strength of each jurisdiction. And, I feel at this point, it’s been very successful. It’s required people to think differently and, quite frankly, help each other at the same time they may be competing as jurisdictions to acquire businesses.

Q Does the geographic isolation of some communities and the number of different governmental bodies hinder infrastructure development?

A There’s no question there is a difference in the technology available in each jurisdiction. That is a factor of the concentration of population and of the rural nature of the jurisdictions. Geographic isolation does make it more difficult. At the same time, I think through the partnership there have been opportunities to support or partially fund some infrastructure in some of these more rural jurisdictions. For example, the Shenandoah Valley Partnership board members voted to support partial funding for distance-learning centers in both Highland and Bath counties. It’s a great application for an area like that. Think about schools and businesses. They have the opportunity of access to resources outside of the region and greatly enhance what they offer employees in the region. It could be medical, it could be education. They may not have the experts in their area, but they would have access to them.

This interview has been edited for length and readability.