Where in the world are potential industries?

By Tiffiny Woo

Published: June 23, 2008

Why do key leaders in Eufaula travel to countries such as Japan, Germany and Korea to promote industry in the area?
Eufaula-Barbour County Chamber of Commerce President Jim Bradley says the reason is simple. That’s where all the prospects are located.
“Most of the manufacturing growth we’ve seen in the past several years has been from the international market,” said Bradley.
“There are currently about 10,000 jobs in Barbour County. Three thousand of those are manufacturing jobs. So, it makes a big difference. Plus, one dollar spent in manufacturing has a turnover rate of seven. That means if one million dollars is spent, it has a seven-million dollar impact on the economy.”
Eufaula Mayor Jay Jaxon, who has been involved in economic development in the area for 33 years, says it’s a continuous cycle.
“You see them come and go,” he said.
“That’s why you always have to attract more industries to the area. For example, the textile industry here is gone, but the automotive industry is hot right now.”
Bradley and Jaxon have taken several trips to these countries in an effort to entice various industries into the Eufaula-Barbour County area.
They travel as part of a delegation of individuals from Alabama chosen by economic development groups for the state.
Most of the trips that Jaxon and Bradley have participated in have been sponsored by either the Alabama Development Office or the Southeast Alabama Gas District.

These organizations employ representatives overseas that work as a go-between for communities in Alabama and interested prospects in other countries.
Once these representatives gather enough companies from one country that are interested in locating to the United States, ADO or SEAGD sponsor a seminar in that country.
Jaxon has been on several trips organized by ADO and SEAGD.
But the mayor says it’s no vacation, though. Jaxon says he has sometimes spent more than 24 hours round-trip on a plane (flying coach, of course) to spend two days at a seminar meeting prospects and promoting Eufaula.
In Jaxon’s case, the City of Eufaula pays the bill for airfare and some accommodations, while most of the other expenses are paid by the organization sponsoring the trip. Bradley’s airfare and expenses would be paid for by the chamber of commerce. Either way, the funding comes from tax money set aside to promote economic development.
“The way it works it that they (the sponsoring organization) hold a seminar where we try to promote Alabama first and then each of us gets some time to promote our own part of Alabama and our communities,” said Jaxon. “We’re not visiting geisha houses, that’s for sure.”
There usually is a social function set up by the sponsoring organization so representatives from Alabama and industry executives can get acquainted. While it offers attendees a chance to get to know one another, these events aren’t all play. In fact, it’s still part of the work.
“I remember that one time we participated in a golf tournament,” said Bradley. “Each one of us was paired with three prospects so there would be more opportunity to talk and interact with the prospects. I only remember doing that once, but usually it’s just a luncheon or dinner that we do.”
Each country they visit has its own unique culture, and representatives are expected to know what is proper and what is not when dealing with prospective industry leaders.
“The Koreans, for example, are very relational,” said Bradley. “Some countries aren’t that way; they’re going to look at the numbers and decide. But the Koreans also value those relations.”
Both Bradley and Jaxon have had some interesting experiences from their trips.
Jaxon had to learn to use chopsticks, though he says eating with the stainless steel version can be trickier than using wooden utensils.
Bradley found many of the customs in Korea and Japan to be particularly interesting.
“The culture is very formal,” he said. “You don’t call someone by their first name. I’ve known one man over there for 18 years and I still call him Mr. Kim. It’s also considered very offensive to show the bottom of your shoes to someone. Most people have a tendency to cross their legs when they sit down, so it takes some adjusting.”
So why aren’t big name industries flocking to Eufaula?
The answer is: criteria.
When a prospective homeowner contacts a real-estate agent, they most likely have certain things in mind that they want in their new home. Maybe they want a pool, one story as opposed to two, a certain neighborhood or require a certain price bracket. The agent can then sift through listings and eliminate those homes that don’t meet the basic criteria.
In the same way, any foreign industry that is considering a facility in the United States has a set of criteria as well.
For example, most large industries, or Tier 1 companies, want to be close to or located on an Interstate. Others may have other criteria that they require to operate their business. ADO and SEAGD evaluate a group of prospects’ needs and choose delegates from around Alabama whose communities meet those criteria.
That doesn’t leave much room for cities such as Eufaula and Barbour County to attract the larger, Tier 1, companies. Fortunately, those companies will need suppliers. Those suppliers will most likely need their own suppliers as well.
Many of the lower tier companies’ criteria match what Eufaula and Barbour County have to offer, and it’s those companies that representatives such as Bradley and Jaxon focus on when they travel overseas to meet with prospects.
This keeps both the prospects and representatives from wasting valuable time and resources.
Another reason manufacturing plants aren’t popping up around the area is: time.
It takes a serious time commitment to draw industries into the area.
Once a prospect is interested in a location, they will likely make several visits to the area and invite local leaders to re-visit them overseas.
“In the past two years, we’ve had about 15 to 18 companies come and visit Eufaula and Barbour County,” said Bradley.
“It takes time,” said Jaxon. “It doesn’t happen overnight.”
In fact, Bradley says the national average of time it takes for a company to become established in the U.S. once they decide on a location is three years.
During that time, manufacturers must contend with other elements such as the economy and the current credit crunch that could affect their ability to move into the area.

This is the first in a series of articles outlining economic development in Eufaula and Barbour County.