Tuesday, October 29, 2002
The state of Kentucky is guaranteeing an $800,000 loan to a garment manufacturer, so they can consolidate their factory operations. Corbin Ltd. will close its factory in Huntington, WVA and relocate the 125 jobs to a factory near Ashland, KY, where another 125 people are working.
One problem: it doesn't appear like the 125 West Virginia jobs are really there. According to the local union president, 12 people are working at the West Virginia plant, not 125. A company spokeman explains that the company is "between seasons". According to the spokeman, "We're between fall and spring, so the plant is on a reduced work force right now."
The story is not convincing. Some time ago, Fruit of the Loom closed its manufacturing plants across the South and, in doing so, delivered an important message to EDPros: To build a prosperous community in today's global economy, we are going to need higher skills than the ability to sew underwear. This is the type of low skill manufacturing that is migrating to lower wage countries.
You'd think that Kentucky would have figured this out by now and placed its scarce incentive dollars on a stronger bet. Read more.
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
This incentive is nuts
