Cities compete to draw and retain manufacturers

Cities compete to draw and retain manufacturers

By Suzanne Haberman Friday, 13 November 2009

GEORGETOWN — Georgetown electronic connector manufacturer, AirBorn Inc., has been named one of Williamson County’s top 10 manufacturers by the Texas Workforce Commission. After completion of construction on a new facility on Snead Drive, the company will have an even greater presence in the community. The new plant, expected to open in 2010, will double AirBorn Inc.’s operating space and add approximately 150 employees to the company’s existing workforce of about 350.

Expansion was made possible through efforts by the City of Georgetown and the Georgetown Economic Development Corporation to retain businesses that provide primary jobs in high-tech manufacturing fields. AirBorn Inc. will receive $300,000 in incentives from the EDC contingent on job creation and community investment.

“During this not-so-slow time for us, we’ve maintained a pretty good pace,” said Mark Thomas, executive director of the Georgetown EDC. “Since January 2008, we’ve had 750,000 sq. ft. of primary job, manufacturing and office space come on board or [begin] construction. And that was right through the heart of the recession.”

Importance

Enterprises that design, construct and ship wholesale goods across the nation and around the world can often be overlooked by residents, but play a significant role in the local economy.

“In that transformation process [of manufacturing], a lot of value has been created: Jobs have been created; wealth has been created,” Thomas said. “That’s why manufacturing is important, because you’re basically transforming raw materials. And in that process, you’re bringing new dollars into the community.”

Georgetown

Georgetown’s proximity to Austin’s high-tech community makes the city a good match for high-level design and precision work, Thomas said.

“We are very, very selective and make sure that these are high-wage, clean, high-value-added manufacturing companies,” he said.

AirBorn Inc. fits into the sector that Thomas said Georgetown is targeting; so does Chatsworth Products Inc., another of Williamson County’s top 10 manufacturers located in Georgetown. Chatsworth Products Inc. creates structural support systems for computer and communication equipment while providing approximately 100 primary jobs.

When manufacturers are a good fit, the Georgetown EDC may offer them incentives, which are customized to the situation and could include building infrastructure, helping with startup costs or monetary assistance.

“[Incentives] are simply a way that [we] can close the gap when we’re competing on these projects with other areas, because we are not operating in a vacuum here,” Thomas said. “We are competing with other states and even other countries.”

The city’s proactive effort could account for predicted growth in certain areas of Georgetown. Manufacturing jobs could see an 18 percent increase by 2018 in some areas, according to regional workforce reports released by Economic Modeling Specialists Inc. in the third quarter of 2009.

Taylor

Historically, Taylor has been home to manufacturers relying on native supplies such as cotton or corn, but local businesses have had to adapt to an increasingly advanced industry.

Taylor Bedding Company has been making mattresses in the area for more than 100 years. The business started out filling its products with cotton from the family plantation, but now has the ability to produce synthetic textiles.

Factors such as workforce availability, highway accessibility and skills training opportunities at the East Williamson County Higher Education Center have contributed to new manufacturing companies relocating to Taylor, said Jason Ford, president of the Taylor Economic Development Corporation.

“We have a significant presence of manufacturing in Williamson County,” he said. “In fact, we are considered one of the larger employment centers in the county outside of Round Rock [based on commuter patterns].”

The TEDC has documented 35 manufacturers in the Taylor city limits and extra-territorial jurisdiction. Additionally, the city has existing buildings suitable for new businesses, such as the former location of Intercraft Co., a picture frame manufacturer. The building near the intersection of Hwy. 79 and FM 397 has been vacant for nearly five years, but is an example of how Taylor already has the infrastructure to support manufacturing.

TaylorCraft Cabinet Door Company took advantage of similar infrastructure availability when the company moved to Taylor in 2005, benefiting from the reasonable cost of land and an existing manufacturing facility, spokeswoman Heide Osborn said. TaylorCraft grew out of Burrows Cabinet Company, which originally was based in Hutto. The company now employs more than 50 people.

This turnover of manufacturing companies could be an indication of Taylor’s future in the industry. The EMSI reports show the region’s employment in the industry remaining nearly steady, with a 1 percent decrease in employment by 2018.

Hutto

Hutto has about five manufacturers within city limits with most of the companies operating in the city’s extra-territorial jurisdiction, said Scott Martinez, executive director of the Hutto Economic Development Corporation. Areas outside the city attracted manufacturers partly because there was limited government oversight, said Jeff Turk, CEO of Formaspace LP.

New companies interested in opening in Hutto might face challenges, Martinez said. While the area has the skilled workforce and access to highways that appeal to manufacturers, land prices inflated by proximity to Austin and lack of infrastructure could be deterrents.

“If someone came to Hutto today and said, ‘I’ve got a great economic development project, but it’s going to require 50 acres,’ I would have nowhere to put them today as far as water and wastewater [is concerned],” Martinez said.

The EMSI reports show that Hutto could see an 8 percent decrease in manufacturing jobs over the next nine years.

Industry

On average, Texas is faring better than much of the nation in the manufacturing industry, according to the EMSI workforce reports.

“Manufacturing is that group that has taken the biggest amount of layoffs,” said Al Lopez, Workforce Solutions Rural Capital Area board planner, “but if you take a look at ours as a whole, we’re not growing but we’re pretty much just holding our own, which is why we are recovering much quicker than everyone else.”

Manufacturing Industry's 10-year forecast - 2008-2018

• Employment levels in most local ZIP codes are predicted to remain nearly steady between 2008 and 2018 with slight variation by region.
• Areas with the most change could include Georgetown, with an 18 percent increase in manufacturing jobs, and Hutto, with an 8 percent decrease.
• Compared to employment numbers in the United States—forecasted to decline 11 percent in nine years—Georgetown, Hutto and Taylor could fare better.

Source: EMSI Complete Employment—Third Quarter 2009

A few Area manufacturers

• Georgetown - 78626
  • AirBorn Inc. (electric connectors)
  • Chatsworth Products Inc. (electronics storage)
  • Enflite Inc. (aircraft accessories)
• Georgetown - 78627
  • Texas Crushed Stone Company (cut stone)
• Georgetown - 78628
  • STI International Inc. (firearms)
• Hutto - 78634
  • A.R. Machining Inc. (inspection equipment)
  • Formaspace LP (custom technical furniture)
  • PICO Precision Fabrication (sheet metal)
  • Texas Fixtures & Interiors (retail store fixtures)
• Taylor - 76574
  • Accurate Inc. (powder coating/robotic painting)
  • BABECO (metal, plastics, graphite)
  • Durcon Inc. (epoxy resin work surfaces)
  • Taylor Bedding Company (bedding)
  • TaylorCraft Cabinet Door Company (cabinet doors)
  • Taylor Meat Company (food)