$Account.OrganizationName
Ashland Area Council for Economic Development Newsletter )
February 2007
In This Issue
  • Manufacturing Expansion in Ashland...
  • Rain Drop Products Expansion
  • Globalization and Ashland: Staying Local
  • New programs led by Bob Grundy at the Adult Education Center

  •  

    AACED is in for an exciting year if the next 11 months are as busy as the past 6 weeks. I am proud of the work we have done to facilitate projects, such as Silver State Ethanol's ongoing discussions with the City of Ashland and the Community Improvement Corporation's potential purchase of the Novatex building, which would accelerate their growth plan. However, economic development efforts are never successful if they are only shared inside one office. Both of the projects above are examples of broad- based community support of economic development. Mayor Strine, City Council, and other City leaders deserve a great deal of credit for their leadership in navigating the process of such a significant potential investment in their new business park. Likewise, the Community Improvement Corporation (CIC) would not even be in a position of possibly assisting Novatex without the leadership of the executive officers, especially Treasurer Hal Sheaffer. These are not "easy" projects for the new Ashland Business Park, but with community efforts like these, solutions can be found. If you want to learn more about these recent initiatives, please contact my office, I think you will also be proud that you're a part of this forward-thinking county.

    In addition to the projects described above, you will notice inside two exciting growth stories in our manufacturing sector. I continue to be impressed with the small business innovation that is occurring in our county. Additionally, as Mayor Strine mentioned in his State of the City Address, these small firms are beginning to strategically cooperate for mutual benefit. It will be my job to make this a county-wide initiative that has positive impacts on our entire economy.

    Economic development has become a county-wide initiative, but it will only be enhanced by your involvement. I am challenging myself and my staff this year to focus on business recruitment into Ashland County. For example, the former Merillat facility (500,000 square feet, with more than 200,000 available) in Loudonville is an incredible asset for heavy industry. We will be aggressively marketing this building, along with many other opportunities. Many of you have business contacts and/or ideas regarding prospects for our vacant sites and buildings. Let us hear those ideas.

    Best wishes for continued success and prosperity in 2007.

    Sincerely,

    Evan Scurti


    Manufacturing Expansion in Ashland...

    Recent issues have highlighted the manufacturing success of companies like Ohio Electric Control, Farr Automation, and Maverick Innovative Solutions, and Straightaway Fabrications is a great addition to our vital small business sector.

    Much like many other entrepreneurial stories in Ashland County, Straightaway Fabrications is an example of skilled employees spinning a successful small firm out of a larger one, in this case Automatic Welding. From an economic development perspective, this is a good indication of our county's strong "business churning"-- the process of an economy's ability to generate and accommodate leaders that rebound quickly and start new ventures. Straightaway Fabrications' owner and President David Bowles did just that as Automatic Welding approached closure. In mid-2004 he launched Straightaway in one of the buildings in the former General Hone complex in Perry Township. David began by continuing Automatic Welding's shipping container production. However, by adding custom fabrication services on a variety of products, and implementing practices such as lean manufacturing, the company has grown rapidly from 4 in 2004 to 32 employees today (17 are actually staffing agencies' employees with future opportunities for permanent employment). Also impressive is the fact that 8 former Automatic Welding employees have found employment at Straightaway.

    David continues to lead the company toward more innovation and growth. They are becoming an active member of the manufacturing sector in this region. A prime example is their great powder coating services that many customers take advantage of, shown right:

    Straightaway has also entered the export market with sales to Italy, the United Kingdom. They are well poised for future growth, product development, and diversified services and they will be hiring between 8-10 permanent employees in the coming months. If you are interested in becoming a part of this great team or would just like to meet some great business leaders, please introduce yourself to the company.

    Rain Drop Products Expansion

    Ashland County innovation and growth will continue as Rain Drop Products announces an expansion plan. This producer (and inventor) of indoor and outdoor fiberglass-based water play equipment is growing out of its George Road facility and has signed a lease for an industrial facility on Union Street in Ashland. Rain Drop will be bringing some previously outsourced manufacturing processes in-house, which necessitated the move to the 44,000 square foot facility. The move will immediately create about 8 jobs with a forecast of about 15 additional jobs from 2008-2011.

    Rain Drop has deep roots in the region and Ashland. Started in 1982, we are proud that Ashland has been a part of its steady growth and many recent successes. For example, in 2005 Rain Drop formed a joint venture with Game Time, a playground manufacturer that now exclusively contracts with them. The company is also completing the GSA certification process, which will provide a competitive advantage when selling products to the federal government. Rain Drop is also very involved in local projects. They have been chosen as the supplier of the spray ground park equipment for the new Salvation Army Kroc Center, and they have also supplied parks in Wooster recently. These aggressive strategies, led by CEO Mike Hooper, have helped the company double in sales and employment since 2000; they currently employ 25. More growth is also possible as the company branches out into contract manufacturing services for a variety of products.

    AACED congratulates Rain Drop and will continue to work closely with management as they work through this transition phase. Congratulations also goes out to the owner of the new facility-developer Joe Zupan-for his cooperative, open-minded approach when working with local companies. AACED will consult with the team by presenting a variety of State and Federal financing programs that will facilitate Rain Drop's long-term commitment to their new home on Union Street. Visit www.rain-drop.com to view the great products produced by this company, or contact them to learn more about the expansion.

    Globalization and Ashland: Staying Local

    Many people believe that the trend of countries and companies going global is the dominant position. However, several economists believe that the trend is not necessarily to go global, but to go regional. It is true that there is a lot of pressure from the global community that has constrained the behaviors of firms and individuals. Still they are far from defenseless and far from being overrun by globalization. Many countries and companies have found that going regional or staying local brings many opportunities.

    The three major examples of regionalization among countries are the European Union, NAFTA, and the greater Asian region. There is one major phenomenon that supports why countries will choose to go regional before they choose to go global. That phenomenon is called the Border Effect. The border effect can be defined as an invisible barrier between countries or regions that affect their willingness to trade with that country. For instance, the CIA World Factbook lists two out of three of the United States' largest exporting and importing partners are Canada and Mexico. In China over one-third of their imports come from the Asian Region. This happens largely based on customs and cultures. They are more likely to be similar within a region than a country across the globe.

    Not all companies are jumping on the global bandwagon either. Some companies believe they can better serve their clients if they keep their production near them. According to an article in the Wall Street Journal by Mark Whitehouse, some of the same logic applied to restaurants and similar industries can be applied to manufacturing. Sometimes superior proximity to clients can provide better knowledge of consumer behavior and establish long-term relationships with clients. Here in Ashland, the Packaging Corporation of America has been very successful while keeping all their manufacturing in the United States. PCA is a manufacturer and distributor of corrugated board. They manufacture boxes and displays for companies. For each of PCA's different plants, large portions of their consumers are local companies. According to their 2005 Annual Report, 70 percent of PCA's customers are local. For the plant in Ashland, the clientel includes companies like Bendon Publishing and Archway. Don Haag, the Midwest Area General Manager, says that relationships are important in their industry and their company must be responsive to the needs of their customers. He explains that in this industry everything is 'just in time' and when a customer needs something you must be able to get it to them quickly. If their board was manufactured abroad that would not be possible. Therefore it is important to stay close to their customer.

    Globalization and countries coming closer together is a real trend, however it is more likely that a country will bond with its neighbors then one across the ocean. It is also not true that companies cannot find success from staying local, in fact several companies including PCA, prefer it and find great opportunity in serving consumers close to home.

    New programs led by Bob Grundy at the Adult Education Center

    The Occupational Safety and Health Administration (OSHA) elects that a business is responsible for the safety of their employees. That is why it is important that a company take the necessary steps in order to insure they are in compliance with the federal standards. That is where Bob Grundy, a Technical Consultant for the Career Center can help you. Bob is now licensed to certify managers and companies for compliance with OSHA standards. There are two programs that can be taken at the Career Center. The first program is a ten-hour class that is s general overview of working safety within an organization. In those classes you will learn such things as exit strategies and material moving and handling. The other program available is a thirty-hour program that explains more specific safety measures that can be taken. These are programs anyone can benefit from, whether you are a small company or a large one. In either of these programs you will learn not just about the Codes in the Federal Regulation handbook, but also those measures that are supposed to be taken according to the General Duty Clause, a clause that blankets several issues on building and conduct safety.

    Another program beginning in March is a plant maintenance program. The program is 680 hours of learning the trade of maintaining a building or plant facility. Students will learn everything from basic electrical repair to how to take apart machines safely. The Career Center is one of a few places in the area where you can learn the fundamentals and basics or "the old industrial arts". According, to Bob Grundy, who will be running the program, students can learn a wide range of skills that will make them more qualified in the job market. Maintenance personnel are in high demand. This program can give individuals the experience and skills that companies want.

    Please contact Mr. Grundy to learn more about these programs, or contact the Adult Education Center to learn about other services for companies and adult students.

    Quick Links...

    email: economicdevelopment@ashland-ohio.com
    phone: 419-289-3200

    Forward email

    Powered by

    Ashland Area Council for Economic Development | 206 Claremont Avenue | Suite 100 | Ashland | OH | 44805