Quarterly Newsletter

Community Stakeholders Report - Quarter Three - 2020

Clay Walker, CEcD - CEO

Email: cwalker@networkstn.com
Website: linkedin.com/in/clay-walker-cecd-67bbb18
Location: P.O. Box 747 Blountville, TN 37617
Phone: 423-279-7681
Facebook: https://www.facebook.com/NETWORKStn/
Twitter: @ClaytonRWalker

From the Desk of the CEO

On the Make

In Northeast Tennessee, We Don’t Apologize for Manufacturing. It’s a Big Part of Us and Will Continue to Be

Like so many things in this period of COVID-19, National Manufacturing Day came and went without the attention it usually gets. Even at its best, I don’t believe the day draws the attention it merits. The National Association of Manufacturers, US Department of Commerce, and many other local, regional, state and national professional business associations (particularly economic development organizations and chambers of commerce) have promoted the day for the past decade, which was declared by New Jersey Governor Chris Christie in 2012 and was a Presidential Proclamation signed by President Barack Obama two years later. The primary purpose of the day is to create awareness and continue a pipeline of students into the manufacturing workforce. It also creates awareness among elected officials and the public as to the importance of manufacturing to our economy, national security, and way of life.

I believe this awareness can’t be overstated. Having been in the economic development profession for a quarter of a century – in Western Kentucky, Middle Tennessee, and for the past seven years Northeast Tennessee – it is paramount that we not lose our ability and desire to make things. I’ve seen a handful of “new” economies over the years and we must adapt to technologies and lifestyle changes to remain a world leader. COVID has reminded us all of the power and importance of adaptability to survive times of crisis. Even though we’ve been hearing for years that US manufacturing is dead, I just can’t see it happening. Which is great news for Northeast Tennessee. Our people are smart, innovative, inquisitive, and hard-working – traits indicative of a strong manufacturing workforce.

Over the past several weeks, project activity has picked up a great deal, although companies are still trying to figure out how COVID will affect them in the long term. With this run of activity, we have been reminded of what a great product we are selling here; our product is, in a word, culture. We are about doing things well and manufacturing is among the things we do best.

In this edition of our quarterly newsletter, stories such as the repurposing of Kingsport’s Domtar mill, the opening of Northeast State Community College’s Technical Education Complex, Phipps Bend’s Homeland Vinyl’s latest expansion, and Eastman celebrating its centennial. None of those stories are possible if not for our value of and skills in manufacturing. We know how to make stuff and, when additional training is required, we have the facilities and expertise to fill that need.

Though it’s not featured, another common theme of each of those stories is our ability to partner. It has certainly been at the forefront of my mind in recent weeks as we’ve been busy with some promising projects and with the ongoing work with our local governments, NeTREP, and other stakeholders toward improved regionalism. Economic development does not happen in a vacuum and without dependable, effective partner agencies and supporters, communities, and regions sputter. Truth be told, sometimes they go through periods of sputtering even with them, but those downtimes don’t last and they are always overcome if meaningful partnerships with a shared interest are in play.

So, as we said throughout the day on social media and other platforms on October 2, thank you. Thank you to our incredible group of manufacturers. Thank you to our educators. Thank you to our pro-business governments. While we offer a great more than manufacturing careers, we certainly value our makers. You are a true force in our economy and without you, we wouldn’t be Where Tennessee Begins Its Business Day!

In The News...

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Domtar's Kingsport mill to be repurposed

Domtar Corp. announced on Friday that it will permanently close the uncoated freesheet manufacturing plant in Kingsport and the converting center in Ridgefields.

The company plans to enter the linerboard market by converting the Kingsport paper machine.

Once in full operation, the mill will produce and market approximately 600,000 tons annually of high-quality recycled linerboard and medium, providing the company with a strategic footprint in a growing adjacent market. The conversion is expected to be completed by the first quarter of 2023.

Linerboard is a paperboard that is used as the facing material in the production of corrugated and solid fiber shipping containers.

Domtar estimates the conversion cost to be between $300 million and $350 million.

Click here to learn more.

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Homeland Vinyl to expand Surgoinsville facility, creating 55 jobs

Tennessee Gov. Bill Lee, Department of Economic and Community Development (TDECD) Commissioner Bob Rolfe and Homeland Vinyl officials announced on Tuesday the manufacturer will invest $2.2 million and create 55 jobs in Surgoinsville.

As part of the expansion, Homeland Vinyl will add 38,000 square feet to its operations in Hawkins County, adding multiple new extrusion lines and assembly line capabilities.

Homeland Vinyl manufactures a diverse portfolio of vinyl profiles, including fencing, rail, and deck products. The company has operations in six states across the U.S., including the facility in Surgoinsville. In 2017, Homeland Vinyl added 50,000 square feet to its Surgoinsville facility and installed new equipment.

Click here to learn more.

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Lee celebrates PlastiExports’ Erwin facility

In a visit to Erwin on Tuesday to help Mexico-based PlastiExports cut the ribbon on its first U.S. manufacturing facility, Tennessee Gov. Bill Lee said he often joins communities in welcoming new companies.

But he said it was rare for him to stand beside a man like PlastiExports CEO Baldwin Britton, who understands the values of a community that goes into making a business successful.

Earlier this year, PlastiExports bought the former Regal-Beloit plant in Erwin, which was in the process of shutting down and displacing about 125 workers. The purchase included more than $6 million in direct foreign investment by PlastiExports and a promise to bring 100 jobs to the area over the next five years.

Click here for more

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TRI asks legislators for help with funding to allow airport to build-to-suit potential Aerospace Park tenants

Tri-Cities Airport (TRI) Executive Director Gene Cossey took the occasion of a Tuesday morning Legislator’s Breakfast to make it known that the airport will likely be able to bring tenants to Aerospace Park sooner if it has funds on-hand so it can offer to erect a building as an incentive. “This is by no means to negate all the money and all the work that was put into making this facility in the state it is now. Taking what was basically rolling mountainous terrain and making it flat ground is phenomenal. The amount of work and the amount of money that you need to make that happen is tremendous,” Cossey said. “Ideally, what we would find is a business or a company that has plenty of money for capital investment to come in here and say they’re going to build a facility and start operations as soon as the building is built. Click here to read more

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Q&A: Mark Costa, Eastman Board Chair and CEO

Over the course of a century, Eastman has been led by men whose focus ranged from visionary to operationally-focused on a granular level. Perley Wilcox, who negotiated the purchase of the original Kingsport site for a reported $205,000, became the first general manager of the Tennessee Eastman Corp. and led the company through its historical role in World War II. Wilcox’s successor, James C. White was a high school drop-out who came to Kingsport as a wood and timber operations manager. The Kingsport Rotary Club described him as, “a stern man, respected for his fairness and lack of pretense.” Skipping ahead in history, Earnest Deavenport led Eastman through the spin-off from Kodak in the 1990s, helping build a culture that led to the company earning the Malcolm Baldrige National Quality Award. . Click here to read more

You can download the entire Eastman 100 special section here .

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Northeast State Community College's Blair leads Technologies Division into new era

As Northeast State welcomed students into the long-anticipated Technical Education Complex (TEC) this fall, the worlds of technology and business education aligned in one space on the College’s Blountville campus.

“Having everyone under one roof, that is the most exciting thing to me,” said David Blair, who took the helm as the College’s dean of the Technologies Division earlier this year. “That makes collaboration a lot easier and offers a ton of potential for us.” The new Technologies Division is the merge between Advanced Technologies and Business Technologies divisions.

The new 114,475 square-foot TEC building houses the Technologies Division. The TEC’s spacious first-floor floor features classrooms, laboratory space, and faculty offices for the former Technical Education Buildings on the Blountville campus, built in the 1960s and early 1970s. Click here to read more