Virginia Business
Spacer
SEARCH
Spacer
NEWS CENTER
Spacer

December 2007

Home page
Current Issue
Past issues
Daily Headlines
Virginia Ideas
Editor's Blog
Spacer
TOP FEATURES
Spacer
Business Calendar
Virginia's Wealthiest
List of Leaders
Fantastic 50
Legal Elite
Super CPAs
Maritime Guide
Business Guide
Spacer
MARKET RESEARCH
Spacer
Regional Guides
Spacer
CLASSIFIEDS
Spacer
Jobs
VACommercial
Executive Services
Featured Ads
Spacer
CONTACT US
Spacer
Contact Us
Advertise With us
Planning Calendar
Subscribe
Spacer

Return to Virginia Business - October 2004

Regional Report

New marketing campaign aims to raise region's profile

Related story:
- Growth & Development

by Lisa Dressler Garst
Virginia Business

October 2004

WEB POINTERS
For more information:
New River Valley Economic Development Alliance
Roanoke Valley – Alleghany Regional Commission
Roanoke Valley Economic Development Partnership

In this part of Southwest Virginia, mostly small towns and rural counties spread across the valleys and low mountains that ring the more urbanized areas of Roanoke and Blacksburg. Long known for its scenic vistas, railroad heritage and now an Atlantic Coast Conference football team at Virginia Tech, the region is in the midst of a makeover. It goes by a new nickname these days — NewVa — accompanied by a soothing logo of a mountain sunrise. The new packaging is part of a branding campaign unveiled earlier this year that describes NewVa as a place that offers “the opportunity for an active, engaged, yet comfortable and secure lifestyle.”

TALK BACK

Does drive time to the Roanoke / New River Valley in the mountains of Southwest Virginia discourage you from doing business there?
Vote in the reader's poll and give us your feedback.

Certainly locals would know best if that’s true, but they’re not the target audience for this new marketing pitch. Boosters of this region of nearly 500,000 say the new logo and campaign are part of an effort to raise the region’s visibility.

And for good reason. A study done two years ago uncovered some troubling trends: the region’s economy in recent years has lagged behind the state and the nation in several critical areas, including job creation, personal income and population growth. “We have an old transportation/manufacturing center that is trying to figure out what it wants to be in the New Economy,” says Wayne Strickland, executive director of the Roanoke Valley — Alleghany Regional Commission.

Even some of the region’s larger and more developed sectors may need help. A second study completed in August by the commission and the Center for Regional Competitiveness at George Mason University found that the region’s travel and tourism industry hasn’t kept up with the national average for that sector. The report also noted that while growth in health care and business services was strong, those sectors didn’t outperform national averages. Still, there has been solid growth for some companies, including Delta Dental Plan of Virginia, a nonprofit that in ten years has boosted its revenue from $18 million to $195 million and its employees from 20 to 165.

Home to many schools, the cluster of jobs in higher education is unsteady as well, according to the study. The region has 19 two-year and four-year post-secondary institutions, anchored by Virginia Tech and Radford University, but employment there has been hurt by state budget cuts. What’s more, the region’s computer technology and IT sectors fared poorly compared to national trends and lost jobs during the most recent recession. “These firms will have a significant challenge in staging a comeback,” the study noted.

But the report did uncover a number of sectors in which the Roanoke and New River Valley region has an advantage. Among them is mechatronics – an emerging field that combines electronics, mechanics and engineering. It’s a relatively small employment sector with 2,777 jobs locally, but that’s 12 times what would be expected, according to the study.

The region’s advantage stems in part from the presence of two major employers, says Victor Iannello, president of Synchrony Inc., a Roanoke County firm that develops advanced automation and information systems. General Electric in Salem employs more than 1,000 people in electronics, drive systems and fiber optics, and Kollmorgen, a leading international manufacturer of high-performance motion control products and systems, employs more than 700 people. Kollmorgen plans to expand its operations in Radford with a $2.8 million customer support center that will create another 70 jobs. “Some of it is just a factor of these two large companies that have formed a cluster,” says Iannello, who is also chairman of the Fifth Planning District Regional Alliance. “Once you have a critical mass, it takes off.”

Among the other industries with good growth potential are motor vehicle manufacturing, pharmaceuticals and banking. Roanoke is home to Advance Auto Parts, a Fortune 500 and the second-largest specialty auto parts retailer in the U.S. The banking sector grew 28 percent faster in the region than the national average in recent years despite mergers of major banks. Many of those jobs are in back-office banking services.

One leading business in the finance sector is Atlantic Credit and Finance, which was founded in 1996 by brothers Richard and Kelly Woolwine, two Roanoke natives. For the past two years the company has made Inc. magazine’s list of fastest-growing, privately held companies in the country. Its specialty is buying charged-off credit card debt and recovering what it can from the debtors.

The firm employs about 300 people in Roanoke and another 100 people in offices in Richmond and Columbia, Md. Richard Woolwine, the firm’s CEO, says the Roanoke market offers a wealth of potential employees. He adds, “We’ve been able to hire as many as we’d like to. We are not having any trouble meeting our manpower goals.”
That’s good news for a region that needs to attract new skilled workers. Part of the new marketing pitch will emphasis the quality-of-life attractions here, and there are plenty. Beth Neu, economic development director for Roanoke, is eager to make a case for the region. Roanoke has a “quaint and cool” downtown with free Wi-Fi, an emerging eTown district, and nearby Virginia Tech is a key economic driver. “If you look nationwide, it is those areas associated with a quality in-state educational institute that are growing the fastest,” she says.

For outdoor recreation there’s the George Washington and Jefferson National Forests and the Appalachian Trail. There’s also the New River and Smith Mountain Lake. The city also has the new O. Winston Link Museum, which opened in January. Located in the renovated historic Norfolk & Western Railway passenger station, the museum houses the world’s largest collection of the acclaimed 20th century photographer’s work. The Jefferson Center, a renovated high school, features the Shaftman Performance Hall, which hosts performers as diverse as The Four Tops, Bruce Hornsby and The Roanoke Symphony Orchestra.

The Art Museum of Western Virginia plans a building in downtown Roanoke to house the permanent collection, special exhibits and an IMAX theater. The design is under wraps, though, and so far only major donors have been privy to the plan.

The NewVa regional marketing pitch could use some major donors, too. The Fifth Planning District Regional Alliance recently lost its state funding to budget cuts and now has few resources to promote its new brand. Howard Packett, a member of the Salem City Council and the founder of a local advertising firm, says the lack of money will cripple the marketing effort. “We need to make an investment. It’s like selling any product,” he says. “You need to focus on what you want to sell and hit it over and over.”

It will take more than marketing to overcome the region’s relative isolation from major markets, including Northern Virginia, Hampton Roads and the North Carolina cities of Raleigh and Charlotte. Efforts to get a low-fare airline to serve Roanoke Regional Airport have so far been unsuccessful. The proposed TransDominion Express, a rail service that would run from Washington and Richmond through the region to Bristol, is still years away. And the state is working on plans for a major expansion of the entire Interstate 81 corridor that includes tolls on trucks.

Neu, however, remains optimistic. “People come up to me all the time and say I moved here even though I didn’t have a job. Or maybe they were here for 10 years with a company and decided to come back after retirement to live here,” she says. “Soon the jobs will follow the people.”

Return to Virginia Business - October 2004


Virginia Business Online | Contact Us | E-mail the editor

©2007, Media General Operations Inc., publisher of Virginia Business.
Use of this website is subject to certain terms and conditions.