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Saturday, May 31, 2008

What goes around comes around: Globalization now helps Danville and parts of Southside Va.

Danville and much of the rest of Southside Virginia declined economically along with the linchpins of the Piedmont: tobacco, textiles and furniture, all hurt by globalization, especially the latter two. Dan River Fabrics (in photo by Misscharo) is down to 50 employees from its former 15,000. But now, "The powerful global economic forces that swept away thousands of jobs over the past two decades are now working in Danville's favor," and for other towns in the region, The Washington Post reports. "New companies are moving in to breathe life into once-tired economies across the industrial corridor in central and southwestern Virginia and in Southside, a strip of generally poor counties in the south-central part of the state."

Ylan Q. Mui reports for the Post, "The weakening dollar has made the United States more attractive to foreign investors. Companies from England, Canada and India have recently opened operations or expanded in Danville." The latest is Swedwood, the manufacturing subsidiary of the IKEA home-products chain, and one reason is rising oil prices. "Shipping Ikea's popular Expedit bookshelves to the United States, for example, costs more than it does to make them, said Joseph Roth, the company's U.S. public affairs manager," Mui writes. To get the plant, which is supposed to eventually employ 700, "The city paved its entry with new facilities, secured permits and state Tobacco Commission grants" -- money from Virginia's share of states' 10-year-old settlement with cigarette manufacturers.

At Swedwood's log-cutting (IKEA's version of a ribbon-cutting) last week, Gov. Tim Kaine said, “Sometimes people hear about globalism and think ‘what are we going to lose next? Globalism is also about winning, and so many of the announcements we’ve done here in Danville are foreign companies wanting to come to the United States. …There isn’t a reason we have to be afraid of globalism.”For the story by Sarah Arkin of the Danville Register & Bee, click here.

Danville still has a long way to go, the newspaper said in a May 1 editorial: "The best long-term solution is raising education levels and worker skills, which helps people get better-paying jobs that offer health insurance, which leads to more preventative care and the faster, more intensive treatment of disease, which typically leads to longer, healthier lives." Noting a recent report that people in the region are living shorter lives, the editorial concluded, "Declining life expectancies are another result of the long slumber that Danville has only recently started to awaken from. If we understand how we wound up with these problems, it’s easier to get started on the solutions." (Read more)

The local hero is retiring City Manager Jerry Gwaltney, who also successfully pushed Danville as a regional shopping hub for several rural counties. A shopping center that will employ 1,300 to 1,600 is under construction. A list of Gwaltney's successes ran in a Register & Bee story on his retirement. Writing in the Daily Yonder, Danville native John Borden asks, "Can Danville as a whole rebuild its economic life and energize its educational and social life after seeing its textile- and tobacco-town identity definitively become part of the historic past? Is there a unique next chapter? If not, does this mean that the city over time becomes just another distribution center of the national consumer culture, helping to deliver what the focus groups say is good to every corner of our country. Will people finally speak 'proper' English and then have nothing to say?' (Read more)

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