Regional Business Reports



Greensboro
Jefferson-Pilot Celebrates a Century of Growth
After celebrating its 100th birthday on July 1, Jefferson-Pilot Corp. shows no signs of slowing down. In fact, the Greensboro-based company is growing at an accelerated clip as it passes the century mark, gaining entry into the Fortune 500 with $3.5 billion in revenues. The company ranks as the nation’s 11th largest life insurer, and in the last 10 years under CEO David Stonecipher, Jefferson-Pilot has seen annual net income soar from $203 million to $450 million and assets jump from $5.4 billion to $30.6 billion.

Under Stonecipher, company officials admit it’s not the “same old JP.” Growing from a regional to a national company, Jefferson-Pilot has completed four major acquisitions since 1994 and has made the transformation from being known primarily as a life insurer to a multifaceted financial services company.

To cap the celebration of its milestone, Stonecipher rang the closing bell at the New York Stock Exchange. One hundred years earlier to the day, Southern Loan & Trust Co., a predecessor to Jefferson-Pilot, issued its first life insurance policy. From that start, the two founding companies, Jefferson Standard and Pilot Life, and all the others that have joined the ranks along the way have created a Greensboro institution.

“We are proud to be celebrating our 100th anniversary and appreciate the great contribution of thousands of individuals over the years who collectively made this event possible,” Stonecipher says. He was accompanied to New York by Dennis Glass, president and chief operating officer; Ken Mlekush, vice chairman and president of Life Companies; Theresa Stone, chief financial officer and president of Jefferson-Pilot Communications and also a member of NCCBI’s board of directors; John Still, senior vice president of corporate development; and Paul Mason, vice president of corporate affairs. — Jim Buice


Winston-Salem
Alliance Pushes Plan for New Economy Park
Winston-Salem Alliance Inc. is continuing its quest to improve the economic vitality of the area with plans for a business park in the heart of the Triad. The proposed Alliance Science & Technology Park would provide space for growing biotechnology, biomedical and other technology companies in a prime location in the Union Cross area between Winston-Salem, Greensboro and High Point. Mayor Allen Joines, who heads up the nonprofit group, believes the 190-acre tract will provide room to expand for companies in the developing Piedmont Triad Research Park in downtown Winston-Salem and eventually take advantage of businesses that are the result of the proposed FedEx hub at Piedmont Triad International Airport.

“We envision it being a location for companies in our research park to graduate to once they need space for production,” Joines says. “We also see this as a location for high-tech advance manufacturing. We believe that the strong research coming from Wake Forest Health Sciences, Winston-Salem State University and other institutions and companies will produce companies that wish to locate in a high quality business environment. We also see the opportunity for tying into the new FedEx hub at PTI with respect to electronics assembly and repair as well as other advanced manufacturing operations. There may also be opportunities for biomedical operations that need the hub.”

The proposed business park is off Temple School Road, which is near the U.S. 311 Bypass and Interstate 40 less than 10 miles east of downtown Winston-Salem and also conveniently located to Greensboro and High Point. The land is primarily undeveloped, and the Alliance has requested that it be rezoned for industrial growth. More land could be purchased in the future.

The Alliance was created three years ago by city and corporate leaders out of concern about slow economic growth. The nonprofit, with the help of the local business community, established the Millennium Fund to spark the economy and help provide funding for downtown residential development, infrastructure development and economic development, which includes business park development.  — Jim Buice


Greenville
Pitt Memorial Ranks High in Heart Disease Treatment
Pitt County Memorial Hospital in Greenville has been named among the nation’s top 50 centers for treatment of cardiovascular disease, recognition that supports the facility’s need for a new cardiovascular institute, according to Dave McRae, chief executive of University Health Systems of Eastern Carolina, the hospital’s parent corporation. U.S. News & World Report, in its July 21st issue, listed PCMH 44th among its list of top cardiovascular centers in the United States. The magazine takes into account mortality rates, technology, the ratio of registered nurses to beds and other data that are key to quality patient care, and also considers a facility’s reputation among physicians.

Other North Carolina hospitals that made the list are Duke University Medical Center in Durham (fourth), N.C. Baptist Hospital in Winston-Salem (37th) and Mission-St. Joseph’s Health in Asheville (42nd). The magazine released ratings in 17 specialty areas, and nine different North Carolina hospitals were cited. Pitt County Memorial Hospital’s inclusion was especially noteworthy in that the heart disease mortality rate in 33 of 41 eastern N.C. counties is greater than that of the state as a whole, and the mortality rate for nonwhites is 1.3 to 1.5 times the rate of whites, according to the East Carolina University Center for Health Services Research and Development.

McRae says the ranking is an indication that the proposed new cardiovascular institute, which will support patient care and research, is vital for continued advances in fighting heart disease in eastern North Carolina. “It’s wonderful news to have the recognition that gives the general public an idea of the quality of services delivered by our heart team,” McRae says.

In the 2002 fiscal year, physicians at the hospital’s Heart Center treated more than 5,000 cardiac catheterization patients, performed electrophysiology procedures on more than 1,700 patients and performed cardiothoracic surgery on more than 1,200 patients. On an average day, the Heart Center has 80 inpatients. University Health Systems, based in Greenville, includes Pitt County Memorial Hospital, regional hospitals, physician practices and is affiliated with the Brody School of Medicine at East Carolina University.  — Kevin Brafford

High Point
BofA Adding 350 New Jobs, Becoming Largest Employer
Bank of America plans to add about 350 jobs at the Triad Center in High Point to support a $2.5 million expansion of its mortgage-servicing center. The new positions were created to handle a call center, bill processing and other loan-servicing functions for the Charlotte-based bank. High Point city officials say the new jobs, which will push the Triad Center’s employment total to 1,850 people, will make Bank of America the largest employer in the city (combined with another 150 workers in other bank operations in High Point).

Certainly, it was welcome news in a region that has been hit hard by layoffs and plant closings, particularly in the furniture and textiles industries. “We are a growth company in a growing industry — an industry whose growth will continue to enhance the economy of this state,” says R. Eugene Taylor, president of consumer commercial banking for Bank of America.

Gary Gore, a senior vice president and High Point market president for the bank, says the “quality of the labor force in Guilford County” was a key consideration in High Point’s favor. The expansion was the result of a decision by Bank of America to consolidate its mortgage-servicing operations from three locations to two. In addition to High Point, the bank will expand a servicing center in Buffalo, N.Y., by 300 jobs but will sell its center in Louisville, Ky.

Bank officials in High Point planned to start hiring immediately after the early-June announcement. The new positions will increase the mortgage-servicing staff to between 800 and 850. The center is located at 4161 Piedmont Parkway in the Piedmont Centre business park in north High Point.  — Jim Buice


Charlotte
Low Fare Carrier Mulls Adding Flights to New York
Low-fare carrier JetBlue Airways Corp. expects to begin service between the Queen City and New York’s Kennedy International Airport as soon as 2005, thanks to a recently placed order for 100 new regional jets. “Charlotte is clearly in the strategic plan,” David Ulmer, JetBlue’s vice president of planning, told the Charlotte Observer. “It’s not an if; it’s a when.” The exact date, he added, “can be pretty far away. It could be 2005 or 2006, depending on the priorities at the time.” JetBlue, which flies to 18 cities from its Kennedy hub, announced in June that it had ordered up to 200 regional jets from Brazilian manufacturer Embraer. The airline says it will become the launch customer for the manufacturer’s new 100-seat regional jet and valued its order at $3 billion for 100 planes or $6 billion if it exercises an option for an additional 100.

Ulmer said the new planes make Charlotte a viable market for JetBlue because the airline wants to have three to five daily flights in the market, but doesn’t want to have too many seats. JetBlue’s existing fleet consists of 42 Airbus A320 jets, each with 162 seats. Charlotte/Douglas is usually ranked among the most expensive airports in the country, although the arrival in July 2002 of ATA, a low-service carrier with daily nonstops to its Chicago Midway hub, has brought some average fares down. JetBlue charges about $285 round-trip to fly on short notice from Tampa, Fla., or New Orleans to Kennedy. By contrast, US Airways fares approach $1,000 for the short-notice roundtrip to New York from the same cities.

US Airways has its busiest hub in Charlotte, where it provides nonstop service to 107 cities and carries more than 90 percent of the passengers. US Airways does not service Kennedy, but does fly to New York’s La Guardia Airport and to nearby Newark International Airport. Besides low-fare service to Chicago, ATA offers low-fare connecting flights to the West Coast. Similarly, JetBlue could offer low-fare connections to such destinations as Buffalo and Rochester, N.Y.  -- Kevin Brafford


Catawba County
Signs of Growth Abound Amid Economic Transition
While scores of traditional manufacturing jobs have left the Catawba Valley, there are some bright spots with expansion among less-traditional industries. The nation’s largest manufacturer of shopping carts, Technibilt Inc. in Newton, has increased production by 35 percent in the past year and projects a further 15 percent increase by 2004. Prestige Pillow in Conover is expanding its operations, building a $2 million-plus facility and plans to increase production by 30 percent in the next year. 

And Hickory Springs, a national manufacturer of components for the furniture industry, is expanding its wire drawing operation in Conover by about 25,000 square feet and making a substantial capital investment in equipment that will allow it to diversify its product line, according to President and CEO Don Coleman. Each company says its expansion will create new jobs. Technibilt President and General Manager Pierre Lafleur says the company has added about 28 new jobs this year and expects about that many more next year. Prestige Pillow President Gurney Davis expects an increase of about 15 jobs. Hickory Springs’ Coleman says positions will be added, but isn’t yet sure of the number.

Lafleur says Technibilt produced 300,000 shopping carts out of its facility in Newton last year and expects to make 525,000 carts in 2004. Sales of an estimated $35 million this year are expected to top $48 million next year. Prestige Pillow’s new facility will increase its operations by 20,000 square feet. Although the furniture industry is increasingly moving offshore, Davis says there is still a market for companies like his. “We deal in high-quality products and just-in-time deliveries,” he says.

Hickory Springs’ expansion is its second in two years. “We have building expansion as well as substantial capital investment in new equipment that will allow us to expand our current business and diversify into other wire products,” says Coleman. “We also have additional growth plans that will include future expansion.”  — Charlene H. Nelson


Statewide
State Ranks Near Top in Small Business Grants
Small businesses in North Carolina ranked fourth in the nation in the total amount of dollars received from the competitive Small Business Technology Transfer Program (STTR), according to figures released for fiscal year 2002. State businesses received nearly $5 million in award money. Only California, Massachusetts and Virginia received more. “These awards show that North Carolina’s efforts to help small businesses are yielding tangible and positive results,” says Gov. Mike Easley. “Our small businesses are recognized as among the most competitive in the nation.”

The STTR rankings measure the level of research and development funds received by each state from the five federal departments required by the STTR to give a portion of their funds to small businesses. The five departments are the Department of Defense, the Department of Energy, the Department of Health and Human Services, the National Aeronautics and Space Administration and the National Science Foundation.

Once companies submit proposals, these agencies allocate STTR awards based on the institution qualification, degree of innovation and future market potential of the business. To qualify for the award, businesses must be American-owned and independently operated; be for-profit; have a principal researcher not employed by the business; and employ fewer than 500 workers.

Awards are made in two phases. Phase I is the startup phase, with up to $100,000 available to companies for approximately six months support of the technical merit or feasibility of an idea. Winners of Phase I are then eligible for Phase II awards, which give up to $750,000 for as many as two years to expand Phase I results. During this time, research and development work is performed to evaluate commercialization potential. — Amanda Wherry


Asheville
Two Biotech Companies Plan Major Expansions
Buncombe County received a double dose of good news this summer. First, Phenix Research Products Inc., a major biotech player nationally, selected Asheville for its new corporate headquarters and East Coast distribution center. Two days later, Kendro Laboratory Products announced it would expand its Weaverville manufacturing facility and create a worldwide headquarters location in Asheville.

Phenix Research Products, currently located in Hayward, Calif., is a leading supplier of lab instrumentation to the life science research market for more than 10 years. Product lines include a broad range of microplate, robotics, PCR and general laboratory instrumentation. The new Asheville corporate offices and distribution center will be located at the Biotechnology Incubation and Training Center on the Enka Campus of Asheville Buncombe Technical Community College. The company expects to employ nearly 45 people within two years.

“We chose Asheville over other locations for several reasons, including its central location to our East Coast customer base as well as this incredible biotech facility at the A-B Tech Enka Campus,” says Greg Schulz, president and CEO. “We were also impressed with the proactive approach economic development officials took to get us here.”

Kendro, a global leader in products and services for the life science, material science, drug discovery and bioprocessing markets, is consolidating the distribution and assembly operations of its centrifuge, safety cabinet, and incubator processes from a Connecticut plant into the Weaverville facility, where it presently employs around 500. This expansion will create approximately 20 new manufacturing jobs and approximately 90 office and professional positions at the new headquarters in Asheville.

“By consolidating these facilities in the Asheville area, we are ultimately able to serve our customers, channel partners and suppliers better with a single location of business in North America,” says Dennis Pope, president of Kendro.

“This is a really big deal for Asheville and all of Western North Carolina,” says David Young, chairman of the Buncombe County Economic Development Commission. “Phenix Research Products is the anchor tenant we’ve been looking for to kick-start the entire Western North Carolina biotechnology effort. Their presence here will only aid in getting other biotech companies to locate in our area. And the decision of Kendro to consolidate operations to Buncombe County and establish its worldwide headquarters here is positive reinforcement that this area continues to provide a quality workforce and business environment, which helps companies to succeed.”  -- Kevin Brafford


Wilkesboro
Community College Counts its Blessings for MerleFest
MerleFest 2003, the 16th annual festival staged over four days in late April on the campus of Wilkes Community College, generated an estimated $6.5 million for the county and produced gross revenues of more than $2.26 million. Using guidelines recommended by the College of Business at Appalachian State University, the total regional economic impact was estimated at $12,286,799. This figure includes money spent by tourists attending the festival, ticket sales, festival local expenditures and donations to service organizations.

“This premier Americana music festival is a successful project and fund-raiser for the college and our endowment board,” says Gordon Burns, president of Wilkes Community College. “I’m also proud of the positive effect that MerleFest has on our community. The college is fortunate to be supported by a community that takes pride in and cares about the college. For the college to be able to give back to the community so significantly is most rewarding.”

Proceeds from MerleFest have permitted the college to make numerous capital improvements, among them the Eddy Merle Watson Memorial Garden for the Senses, the Doc & Merle Watson Theatre, fiber-optic wiring for the campus, and the endowment of scholarships. Funds generated by this year’s festival will enable the college to contribute $654,988 toward scholarships, salaries, program enhancements and capital improvements. In its 16-year history, MerleFest has contributed more than $4.4 million to the college.

Some 50 non-profit civic and college organizations earned $308,513 in net revenue on gross receipts of $489,458 through their participation in this year’s festival. Paid attendance totaled 36,414. Overall festival participation, including ticketed participants, artists, volunteers, school children admitted free and community outreach, totaled 77,359.  -- Kevin Brafford


Southport
New Visitors Center Will Boost Ferry Service
The wait time to catch a ferry between Southport and Fort Fisher should be a little less bothersome thanks to a $1 million project that will build visitors centers at each terminal. Half of the funding for the centers, which are expected to open next summer, is being provided by the federal government. The other half was obtained through DOT. The current center, located in Southport, was built in 1973, the ferry’s first year of operation. That year, the ferry had one boat that carried 20 vehicles per trip. Last year, more than 545,000 passengers utilized the service, and more than 195,000 vehicles were transported. The increase has left some passengers waiting for hours before they could board. The Southport side and the Fort Ferry Side will have nearly identical centers. The administrative offices will be housed in the Southport building.  -- Kevin Brafford


High Point
Retirement Community Offers Surprising Amenities
No longer content to rock away their golden years, today’s retirees are seeking living arrangements more compatible with an active, engaged lifestyle. The trend is not lost on Presbyterian Homes Inc., the Jamestown-based nonprofit organization which earlier this year opened River Landing at Sandy Ridge, an innovative $65 million continuing care retirement community (CCRC) in High Point. In addition to villas, cottages and townhomes for fully functioning residents, River Landing offers assisted living apartments and varying levels of nursing care for those requiring additional support. Soon to open there is a 16-bed special care unit for Alzheimer’s disease sufferers.

All that may be fairly standard stuff for a CCRC. But 154-acre River Landing has taken the increasingly popular model several steps further. The self-contained community also has its own chapel, bank, post office, library and computer center. Residents enjoy myriad recreational amenities, including an indoor swimming pool, walking trails, tennis courts, a fitness center, a woodworking shop, and even lawn bowling.

But River Landing’s most distinguishing feature is its nine-hole golf course. “The golf course sets us apart from most newly-constructed CCRCs,” explains Bill Pleasants of Presbyterian Homes. The facility currently employs 150, though its workforce will reach 200 as occupancy continues ramping up, Pleasants says.

Founded by religious institutions more than a century ago, CCRCs offer both flexibility and predictability for older couples and singles. Most residents move in while still healthy and active. As needs change, they are assured of convenient access to social and health services provided on-site by licensed professionals. More than 660,000 older Americans reside at the nation’s 2,100 CCRCs, according to the American Association of Homes and Services for the Aging, a Washington, D.C., trade group.

Though open only to those aged 65 and over (spouses may be as young as 62), River Landing may accept new residents into any level of care, and the community welcomes those of all faiths. Presbyterian Homes now has the distinction of operating North Carolina’s newest and oldest CCRCs. Just minutes from River Landing is the Presbyterian Home of High Point, established in 1951. “High Point was considered a pretty radical concept in its day,” Pleasants says. With fewer luxuries and a different financing structure, the High Point facility appeals to a different market segment and is not expected to compete against River Landing, Pleasants says. Presbyterian Homes also operates Glenaire in Cary and Laurinburg’s Scotia Village.  -- Lawrence Bivins


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