Quarterly Newsletter
Community Stakeholders Report - Quarter One - 2024
From the Desk of the CEO
“May you live in interesting times.”
In today’s brave new world, these words hit close to home, but is it all bad?
Over the past few years, some old cliches have been elevated to the point of burnout. (It’s as if we might have jumped the shark.) I think the most overused phrase has become “the new normal”.
I guess I’m a little old school. The first time I recall hearing “the new normal” was during the financial crisis of 2008. If I’m going to take something off the shelf, dust it off, and call it new again, I’m going a little deeper into the way-back machine. The first reference to the curse “May you live in interesting times,” I have been able to track was by New York politician Frederic Coudert in 1936 (although he incorrectly attributed it as an ancient Chinese saying).
From wherever and whenever it comes, that saying pops into my mind more and more these days. In life in general as well as economic development. From talent attraction to housing shortages (funny how those things can go together) to remote workers to an emphasis on power reliability and availability, business attraction (and retention) continues to change.
I have a handful of peer group texts going at any given time. There’s always some overlap of folks, but it’s interesting how many of the same articles and issues pop up for discussion. Some of the items on which we have been opining lately:
- Rivian, a fledging electric vehicle company based in Normal, Illinois, announced in early March that it was pulling the plug – at least for now – on building a $5 billion facility just outside of Atlanta. Instead, Rivian said it will save about $2.5 billion in production costs by building its new small SUV line in its existing facility in the Land of Lincoln. Georgia state and local officials had stood by the company fighting off lawsuits by residents near the intended site who claimed the plant would violate zoning laws as well as laying out lucrative incentives.
- Durham, North Carolina’s BioAgilytix Labs recently terminated its incentive deal with the state as part of a planned expansion that would create nearly 900 jobs. In citing declines in biotech funding as the primary cause, the company gave up, among other things, up to nearly $19 million in grants. While the company had not received any of the agreed-upon incentives nor hired any of the additional people, it did invest about a third of the $60 million it had planned to spend, adding 150,000 square feet in total to three buildings.
- In January, SmarAsset ranked the largest US Cities in order of percentage of workers working from home. Cary, North Carolina, led the way with a whopping 41.4 percent remote workers. One third of the top 25 work-from-home cities were in California. Tennessee did not have a city in the top 20. This study, along with a few HQ projects floating around that listed a high number of jobs in the initial Requests for Information (RFI) only to later reveal than most of those jobs would be remote with no guarantee of where the workers would be based, kind of rekindled conversations among my peers about the challenges of recruitment in a world where job totals aren’t always what they seem.
- Then there are the increasing times something about the workforce attraction conundrums and power availability come up. Of course, workforce development and site readiness are always on the table. Lately, general conversations and anecdotes about high vacancy rates in office and call center space are also popular.
What is important during any time of great flux is the ability to adjust while not overacting to the latest trends. We must keep what we – as a community, region, and state – do well. For Northeast Tennessee, as much as anything else, that has to include innovation and manufacturing, along with the ability to produce a great workforce and customized training programs to meet the various needs across a wide range of industry sectors.
The basic formula for success remains as well. Our partnerships and collaborations are a strength for us, including the prerequisite support of our political leadership and investors. This newsletter has some pretty great examples of all that in the land development investments we and our partners at BTES have undertaken, with the help of our most visible supporters, the Tennessee Department of Economic and Community Development.
There are also some articles and posts regarding workforce development, one in which we have had a pretty significant supporting role with the virtual reality headset grant from TVA. And of course, there are two examples of our collective work paying off in the form of one company being retained and given the opportunity to grow and another recruitment win, both of which were the result of very collaborative efforts and innovative solution finding along the way.
The NETWORKS Sullivan Partnership Board refers to “chopping wood”, that is the constant commitment to our mission and good old-fashioned work ethic is seeing it carried out. We most certainly will face changes in the world in which we live and work, but that persistence will just as assuredly get us through them all… regardless of how interesting the times become.
A.Y. McDonald plans expansion in Bristol
After a lengthy site search, a Northeast Tennessee manufacturer facing relocation found a solution that allows it to maintain its workforce and continue its steady growth for future generations.
A.Y. McDonald recently purchased a 50-acre, pad-ready site in Bristol Business Park, owned and developed by BTES. The identity of the company was made public after the purchase of the property was approved at the January City of Bristol City Council meeting. NETWORKS Sullivan Partnership staff worked with the City of Bristol, BTES, TVA and the Tennessee Department of Economic and Community Development for more than a year prior to the approval.
A new building and land were needed due to continued growth of the Carter County facility. The company has expanded three times from its original 50,000-square-foot plant to its current 200,000-square-foot facility.
Vulcan Thermal to Establish Manufacturing Operations in Hawkins County, investing $5 million and creating 30 jobs
Vulcan Thermal, a subsidiary of EHT, Inc., plans to establish operations at Phipps Bend Industrial Park in Surgoinsville, Tennessee. The $5 million project is expected to create approximately 30 jobs in Hawkins County.
The investment will include the construction of a new 15,000-square-foot manufacturing facility which will provide heat treating services to the metal industry.
“I am confident that Vulcan Thermal has chosen the best place to position for continued success. The cooperation from the state and local officials, as well as general support from the community, made the decision to invest in the Phipps Bend Industrial Park easy. We are excited to become one of the newest employers in Hawkins County and look forward to many years of growth,” Benjamin Vrobel, president, Vulcan Thermal said.
Site Development Grants Awarded in Sullivan County
Bristol Essential Services awarded $2 million to grade Bristol Industrial Park
Tennessee Gov. Bill Lee and Department of Economic and Community Development Commissioner Stuart C. McWhorter announced today 12 new Site Development Grant recipients.
The grants, totaling approximately $17.9 million, are designed to help communities invest in infrastructure and engineering improvements to land economic development projects and achieve Select Tennessee site certification.
“TNECD’s Site Development Grants play a critical role in preparing Tennessee communities for economic development growth, which directly supports our focus of ensuring every Tennessean has access to a high-quality job,” said Lee. “I thank the General Assembly for partnering with us to fund this important program.”
NETWORKS awarded $100,000 for due diligence studies at Bristol South Industrial Park
The Site Development Grant program, part of the Rural Economic Opportunity Act, works in tandem with TNECD’s Select Tennessee program. Since 2016, TNECD has awarded 174 Site Development Grants across the state, totaling nearly $85 million in assistance to local communities and generating 6,595 new jobs for Tennesseans.
“Having a shovel-ready industrial site is a key component many of our communities need to land business investment and spur job creation,” said McWhorter. “These grants serve as a steppingstone for Tennesseans to achieve a better quality of life, and I look forward to seeing the economic development growth that follows this latest round of funding.”
Workforce Development & Quality of Life
Virtual Reality Career Exploration with TransfrVR begins at Bristol City Schools
Thanks to the TVA Workforce Invest Grant awarded to NETWORKS and it's partners, Bristol City Schools began working with students and staff on how to use TransfrVR to virtually explore career pathways and learn skills. Thanks to our generous partners: TVA, BTES, and City of Bristol!
Kingsport and Bluff City Rescue Squads among recipients of grant funds
Several local Tennessee rescue squads and emergency services will receive $3 million through the Rescue Squad Grant Program.
The Tennessee Department of Commerce & Insurance (TDCI) and the Tennessee State Fire Marshal’s Office (SFMO) announced on Monday that 104 rescue squads across the state will receive the grants, 10 of which are in the Tri-Cities area.
The $3 million in grants will be distributed among the rescue squads across the state.
UT College of Dentistry breaks "ground" on new Kingsport clinic
The College of Dentistry at the University of Tennessee Health Science celebrated the start of construction Thursday on a new dental training clinic in Kingsport which is expected to open sometime in mid-2024.
When completed, the clinic, named the Kingsport Dental Clinic of the Appalachian Highlands, will serve as a rotation site for dental students and offer a full-time Advanced Education in General Dentistry residency.
Additionally, the clinic will host Dental Hygiene student rotations from East Tennessee State University.
Bluff City Diner wins Tri-Cities Best
After thousands of votes, the Tri-Cities has placed Bluff City Diner on the pedestal and given it the title of Tri-Cities Best Diner.
Owner Kristi Roberts told News Channel 11 the diner at 4267 Bluff City Highway is typically full of regulars who make their daily stop in at Bluff City Diner for fresh meals.
“Just hometown hospitality,” Roberts said. “Everybody comes and we usually have the same customers every day over and over. Occasionally, we get some new faces.”
Spring Bristol Cup Race at Bristol Motor Speedway was one to remember
Denny Hamlin wins NASCAR Cup at Bristol: A NASCAR short track record 54 lead changes, plenty of strategy and a good dose of wisdom and experience – as it turned out – produced one of the most talked-about NASCAR Cup Series races in recent memory at Bristol (Tenn.) Motor Speedway on Sunday.
Tire management, tactics and frankly, the right positive mindset resulted in one of the most raved-about races of the young season.
In the end, it was a trio of crafty veterans leading the way. Denny Hamlin out-paced his Joe Gibbs Racing championship teammate Martin Truex Jr. and 2012 series champion, RFK Racing’s Brad Keselowski across the line in a race that demanded heads-up thinking on track and atop the pit box – every lap, all afternoon on the famed half-mile high-banks.
Socially speaking
Touring TN Hills Distillery facility in the works #responsiblyrowdy
TN High offers Teacher Apprenticeship Program #CTE
Tennessee Chamber Annual Meeting #TNecondev
Bell employees raise money for disabled veterans #charity
Northeast TN Legislative Breakfast #update
Cardinal Glass welcomes new apprentices #workforcedevelopment
77th Annual Kingsport Chamber Dinner #community
Eastman attends Northeast State Career Fair #manufacturing
Tourism Economic Impact Year in Review #NETN
TNECD releases newest anthem video #BorntoMakeTN
Upcoming Meeting - Networks Sullivan Partnership Executive Committee Board Meeting
Northeast State College - Technical Education Complex, Room T-027
Wednesday, May 8, 2024, 08:00 AM
Technical Education, Tennessee 75, Blountville, TN, USA
RSVPs are enabled for this event.