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Regional Profile Danville/Martinsville For much of the past century, textiles and tobacco were the two-cylinder engine that drove Southside Virginia’s economy. But all of that has changed in a huge way. The North American Free Trade Agreement, freeing up markets in Mexico and Canada, has dealt a deathblow to the region’s textiles. Sewing, dying and folding jobs are headed overseas, leaving staggering unemployment that in Martinsville has exceeded 20 percent. Meanwhile, politics and lawsuits have taken their toll on the tobacco industry. Private lawsuits abound even after a record-setting suit by the nation’s attorney generals was settled. Tobacco giants are still in the sights of political activists. Part of the multibillion-dollar, multistate settlement is going to the region to help transition the economy from tobacco to other industries. The future is uncertain.
Even so, where there is uncertainty there is opportunity. New industries are moving in, and business and government leaders are tackling challenges head-on. Virginia Business talked with two developers in the region. If there is dirt being pushed or walls going up in Danville and Pittsylvania County, there is a good chance Ed Coleman or Howard Burnette have something to do with it. The two head The Daniel Group, one of the region’s largest developers. Coleman, 53, is chairman and CEO. Burnette, 49, is president and COO. Q How do you see the next 24 months shaping up economically for Southside Virginia? A Burnette: We are going to see modest but steady growth locally. The economy is in a transition, but I think it is a positive transition. Two big economic engines in the region, textiles and tobacco, have been hit hard by the political and economic climate in recent years. Have we seen the worst, or do you see still more tough times ahead? Coleman: That question hits on a very important topic: the importance of diversifying our economy and the type of industries we attract. If we stay focused on that and can do that, we will be able to react and respond to any more negative changes that occur in those two industries. Historically, Southside Virginia has not had the same educational levels as other regions of the state. Is it realistic to try and recruit industries in the technology and information-management sectors? Coleman: Right now Southside is deficient, especially in reference to training in information technology. But I would also have to say in the same breath that there are a lot of efforts under way right now to correct this problem. Let me cite just one example: Dr. Carlisle Ramsey, president of Danville Community College, is doing an outstanding job addressing this very issue. He and his staff are creating programs, interfacing with the high schools of the area. There was technological training under way, but it is being beefed up. When it comes to building infrastructure and recruiting new industry, Southside has suffered from a lack of cooperation between small, independent cities and the counties that surround them. Is there any more cooperation today than there was in years past?
Coleman: Because cities and counties are separate in this commonwealth, we have had what I will call "turf conditions" arise between cities and counties. But there are some positive changes happening and there have been a number of instances of cooperation recently. The city of Danville and Pittsylvania County have gone in on a sharing arrangement on the Dan River Small Business Development Center. They also have gone into a cost-sharing arrangement on our area’s new technology center, and the county and the city have reached a revenue-sharing arrangement on the new Lowe’s Superstore that is partially in the county and partially in the city. [The Daniel Group is developing the project.] Regionally the Southern Virginia Economic Development Partnership was organized to help foster a sense of regionalism, and I think that is on its way to success. So, have we had turf battles in the past? Yes. Are there still turf situations? Yes. But the level of cooperation is getting better, and I think it has to. What does this region have to promote in order to be successful in attracting new business? Coleman: Without a doubt it is our available work force. But that is not all. We have a great quality of life. Our geographic area is very desirable. We are not far from the seashore or the mountains. We are close to Greensboro and Raleigh and not too far from Richmond, and we have a very affordable cost of living. There’s also the availability and affordability of real estate. Cost-wise, this region offers some very advantageous operating conditions. In terms of the long-range success of Southside Virginia, what has been the most positive change, or the most significant recent addition to the business-recruitment arsenal? Burnette: The continued completion of the upgrade of U.S. 58 connecting the coastal regions to Interstate 77 is, over the long term, the most positive change to occur. That brings up a related question. The proposed Interstate 73 between Michigan and South Carolina is being touted by supporters as a savior for the Danville and Martinsville areas. Is I-73 that important, and will it come in time? Burnette: It is every bit as important as everyone says. It is incredibly important. I do believe it will arrive in time. Our area can survive without it, but with an interstate our area becomes that much better and stronger. It will add so much. What is the biggest hurdle the region has to overcome to be successful? Coleman: We’ve got to convince new types of business to come to this region — businesses and industries that are not here now. To do that we are going to have to upgrade our educational system, and by that I do not just mean new facilities. We need new curriculums to meet the 21st century, new ways of retraining workers. Do you see the commitment locally to make those changes? Coleman: Yes. I already mentioned Danville Community College, but I think the other leaders in our area realize the importance of building up the educational system and diversifying our economy. All we need to do is look right down the road here from Danville to Martinsville to see what can happen when one industry is such a large sector of the economy. We need to learn from that experience. A big part of Virginia’s growing economy is the Northern Virginia technology sector. There are ongoing reports about unfilled technology jobs and labor shortages in Northern Virginia. What can this region do to bring some of those jobs south? Burnette: I recently went to Northern Virginia on an intrastate trade mission. They told us the number one thing we could do to attract information and technology jobs is improve our educational system. Coleman: We are already seeing some of the benefit of the growing Internet commerce. We have the E-Toys Fulfillment Center in Pittsylvania County. That is a very exciting development that has been successful. It is a small part of the dot-com economy but something that we can build on here locally. This interview, conducted by George Lyle, was edited for length and readability. The data accompanying this report was collected by Lisa K. Garcia. |
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