Approximately one-in-three jobs in Barbour County are manufacturing jobs.
But in the past year, Barbour County has seen numerous industries close in the area. And without new industries to replace those jobs, the economic forecast could be bleak in Barbour County.
So, what’s being done in Eufaula and Barbour County to attract industries into the area?
Eufaula Mayor Jay Jaxon and Eufaula-Barbour County Chamber of Commerce president Jim Bradley have traveled as far away as Japan, Korea and Germany on trips aimed at recruiting industries into the area. These trips are possible in part through an extensive network of economic development organizations across the state,
The trips are organized and sponsored by organizations such as the Southeast Alabama Gas District (SEAGD) and the Alabama Development Office (ADO).
SEAGD and ADO pay the majority of the expenses for community leaders from around the state to visit prospects in foreign countries.
SEAGD’s efforts at recruitment began six years ago, says president/CEO Greg Henderson.
“We realized the textile industry was on a gradual decline,” he said. “It’s a natural response, I think, to want to replace those industries.”
Henderson said the automotive and aerospace industries are particularly of interest to Alabama and efforts at recruiting these companies have been fruitful over the years, with Mercedes-Benz U.S International kicking off the trend in 1993. The most significant growth in Barbour County regarding the automotive industry occurred in 2005 with the addition of Hyundai Polytech.
Jobs are the main objective behind recruiting these industries, says Henderson.
“The automotive industry has become more mechanized,” he said, “making the cost of labor less of a factor, and the people here work hard. We have a good pool of available workforce to draw from.”
Diversification is also key to establishing economic stability.
“It’s better, for instance, to have 10 companies that employ one hundred workers each than one company that employs one thousand,” said Henderson. “Eufaula has been good at recognizing that.”
SEAGD was formed in 1952 as a partnership between 14 cities, including Eufaula, Dothan, Headland, Abbeville, Brundidge, Troy, Enterprise, Ozark, Andalusia, Elba, Greenville, Fort Deposit, Opp and Luverne.
Each city is represented on the board of directors.
“Jay (Jaxon) is our longest serving board member and a former chairman of the board,” said Henderson. “He has been on the board for 18 years and has worked toward economic development for a long time.”
Who and how many representatives that are sent on each recruitment trip is up to each city. Henderson said that on occasion, a city may send more representatives if they have a vested interest in the industries that have been invited, while others may only send one.
“We pay the event and hosting costs,” said Henderson. “But representatives chosen from each city pay their way to the events.”
Jaxon and Bradley are responsible for certain expenses such as airfare.
Whenever he is acting on behalf of the group as a board member, Jaxon’s lodging expenses and some other costs for the recruitment trips are paid by SEAGD.
In the same way, SEAGD has also paid airfare and accommodation on at least two of Jim Bradley’s trips, one overseas and one to Atlanta, when he was acting as a representative of the company.
“On one occasion, I know Jim practically set the whole event up,” said Henderson.
Jaxon’s airfare is paid for out of the City of Eufaula’s general fund. Joy White, the City of Eufaula clerk/treasurer, said in the past five years, the City of Eufaula has paid for three different trips overseas for the mayor, spending approximately $4,500 in total expenses.
The chamber pays for Bradley’s expenses out of money set aside for economic development and tourism.
By virtue of the state legislature, the chamber of commerce receives 60 percent of the annual accommodations or lodging tax collected by the city. The money, which totals approximately $140,000 annually, must be set aside to promote economic development and tourism in the area. The chamber pays expenses incurred by Bradley on the recruitment trips using these funds.
Since 2005, Bradley has been on three trips with SEAGD, traveling twice to Korea and once to Germany. He has been on one trip with ADO to Korea.
He estimates his total expenses for all four trips to be approximately $12,000. This total usually includes the cost of airfare, accommodations and any incidental fees during the trip. Trips usually last approximately 4-5 days.
“According to the U.S. Department of Labor, a dollar spent in industry has a turns over seven times in the local economy,” said Bradley. “The industry pays a worker wages and that worker will buy something from Wal-Mart, so the Wal-Mart employee gets paid and buys groceries and so on.”
Just as one industry dollar produces a bigger effect in the economy, the same could be said for money spent on industry recruitment overseas.
It was from one of these trips to Korea that Jaxon and Bradley were able to entice Hyundai Polytech to locate in the area.
When the company opened in 2005, it employed 35 workers and brought millions of dollars into the local economy through wages, expenses and by attracting smaller suppliers to the area.
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