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Return to Virginia Business - January 2003

Is the $200,000 man worth it?
Henry County’s top recruiter has a mixed report card

A little more than a year ago, hard-hit Henry County shelled out a whopping salary of $200,000 a year to hire a ringer for economic development. It lured Wayne Sterling, once Virginia’s top economic recruitment official, from South Carolina, just as Sterling was leaving his job in the Palmetto State under a cloud.

So, what has Henry County, which has lost more than 9,000 apparel and textile jobs in recent years, gotten for its money? Hard to determine. Sterling says he is pleased with what he’s accomplished. Henry County Administrator Benny Summerlin says it’s too early to tell.

Sterling points to seven announcements since January of new industries landing in the county, or existing ones expanding. All together, they should total 1,110 new jobs. “We’re off to a running start,” says Sterling.

But the Patrick Henry Development Council — the economic development arm of a joint effort by Henry County and the city of Martinsville — averaged more than 1,600 new jobs a year over the three years prior to Sterling coming to Henry County. That’s about 500 jobs more than the first-year record of Sterling, who is by far the highest paid economic development official in the state.

The report card is further muddied since county officials say that at least three of the past year’s job announcements were actually in the works before Sterling began working in Henry County. Sterling says his office should be credited with generating the leads that led to all but one of the seven new industry announcements over this first year.

Just three months after Sterling came to Henry County, Cerxon Microtechnologies announced it was moving from South Carolina to Henry County, a move Cerxon CEO Craig Rogers credited to Sterling’s lobbying. Cerxon makes ceramic microchips, primarily for use in cell phones, and represented a new type of industry in a community desperate for relief from its reliance on the textile and furniture industries. Sterling is also credited with helping to attract a similar company, Axiom Technologies, which announced last month it would open a $5 million headquarters in Martinsville, employing 250 people.
Other job announcements include three in the furniture industry, two of which were expansions of already existing industries; a new textile firm; and an expansion of another textile company. The only other true diversification came with the announcement that Knauff Snack Goods would locate a facility in the county.

Sterling, who resigned his position in South Carolina in 2001 following allegations of financial irregularities, says that with unemployment hovering around 12 percent, his office can’t be too choosy. County Administrator Summerlin agrees. “We want to diversify the base here, but with the economic slump we’ve had here, we have really gone after all the prospects we could. We haven’t been able to pick and choose.”

— by John Peters in Martinsville

Virginia Business - January 2003


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