Southeast Industrial Region Retools Manufacturing Sector
Published Jan 13, 2010
Significant investment in new and existing facilities is giving new muscle to the Southeast Industrial Development region’s manufacturing base.
The region’s roster of manufacturers is as impressive for its diversity as its length. Many are even taking over existing plants to solidify their market presence. That’s the case with Shaw Industries, which has purchased Sportexe Construction Services’ plant in Calhoun, Ga. The plant, which makes artificial fields for many sports, will become a part of Shaw’s recreational surfaces division.
Volkswagen is revamping the local auto manufacturing industry with its $1 billion plant under way in Chattanooga, and multiple energy-related enterprises are building on a long history of success to penetrate current and coming markets with their products and services.
“We think the most seductive scent for attracting manufacturing business is the smell of money being made, and as manufacturers are successful in establishing and expanding their operations here, then others will follow,” says Ray Childers, president and chief executive officer of the Chattanooga Manufacturers Association. “We are seeing that now on many fronts.”
The suppliers and related business attached to Volkswagen’s bumper are fueling inquiries and economic development activity not only in Chattanooga and Hamilton County, but in an eight- to nine-county region surrounding it, Childers says.
The energy sector is quietly but quickly ramping up operations to produce major components for nuclear plants, as well as for solar and other new-energy producers.
“In the next decade or two the energy sector, specifically nuclear energy, may outpace the automotive industry here,” Childers says. French-based Alstom announced a $280 million expansion in Chattanooga to make the largest turbine rotors in the world, a major component used in virtually every power plant — nuclear, fossil or gas.
“They’re already doing retrofits on plants around the country, and we see ourselves as being at the center of this service industry. We also have Westinghouse here, and they’re growing, and other major companies are looking at moving into the area as well,” Childers says.
Other players heating up the market include Whirlpool, which brought production of built-in ovens and cooktops to its Bradley County, Tenn., facility, adding 500 jobs.
Chattem Inc. will invest $35.5 million and create up to 70 jobs by bringing production of its ACT mouthwash line to Chattanooga. In December 2009, French-based Sanofi-Aventis announced it would acquire Chattem for $1.9 billion to create the world’s fifth-largest consumer health-care company.
Columbus McKinnon plans to invest $5.5 million to expand its Dixie Industries specialty forging and assembly operations in Chattanooga, adding 120 jobs. And Arch Plastics Packaging plans to double the size of its Chattanooga pharmaceutical and personal care bottle-making plant to 60,000 square feet and create 60 additional jobs.
Pliant Corp. has reversed a decision to close its Dalton, Ga., manufacturing facility and plans to expand it. Pliant is a leading producer of value-added film and flexible packaging products for personal care, medical, food, industrial and agricultural markets.
The region should be able to capitalize on the diversity to grow the manufacturing infrastructure now, and then really take off as the economy recovers, Childers says.
“We’re well positioned to provide the nuclear and other services because of our location and what’s already here, but we also are benefiting from our manufacturing heritage,” he says. “We’ve made a lot of things here in the past, and we have a lot going on now. Manufacturing is really taking off again around here.”
Story by Joe Morris
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