High-grade economic development for Horry

Today's editorial explains why it's such great news that a Conway factory is getting a $20 million upgrade:

In nondramatic but significant fashion, the Horry County economy prospectively grew more robust this week with the announcement that a Conway factory will receive a $20 million upgrade. This added investment in Metglas Inc., located in the Atlantic Industrial Center on U.S. 501, will beget 25 new jobs during the next three years.

That may not be an eye-popping new-job number. But these particular jobs will be worth $30,000 to $40,000 each. And in addition to the skilled workers already employed at Metglas, the new employees will be performing knowledge work that advances the Conway factory's reputation as a global leader in the green revolution.

Metglas, established by Honeywell and now owned by Hitachi Metals America, Ltd., develops amorphous metals for sale worldwide. This product, when built into transformers, medical gear, vehicle emission reduction systems and security devices, distributes electricity with high efficiency. Because devices based on amorphous metals require less electricity than other such devices, they are in great demand globally.

According to local economic development officials, who helped broker this deal, the $20 million from Hitachi will finance an expansion of casting operations at the Conway plant. Metglas already has a strong and growing customer base in India, China and other Asian countries.

The added capacity bought with the $20 million will enable Metglas to supply more product to markets in Europe, South America and North America. Indeed, the added supply of Metglas electrical steel will help U.S. electricity generators meet federal energy conservations taking effect in 2010.

For a county whose economic mainstay is tourism (and thank heaven for that), this is exciting stuff. But how will this factory expansion make the local economy more robust?

For openers, the new Metglas jobs created over the next three years will raise the county's average earnings per worker - the best measure of the quality of economic development. Lower-wage new jobs put local people to work, too, and that's great. But unless new jobs equal or exceed average local worker earnings, they actually weaken the local economy - not a problem in this case.

Moreover, the health of the local economy is too dependent on tourism and construction. Both industries, especially construction, are struggling right now, thanks to the high price of fuel, rising prices, shrinking discretionary spending and the housing recession. The stronger the still-small local manufacturing sector gets, the greater becomes the county's ability to withstand recession.

So congratulations to Hitachi for making this investment in Horry County's global presence. And thanks to the public-private Myrtle Beach Regional Economic Development Corp., which helped broker this deal.

Its president, Hugh Owens, said the group's No. 1 goal is to diversify the Horry County economy. There's no doubt that this week's Metglas announcement will advance that goal.

Comments?

Comments

[DanielC]

Grats to Metglas and Horry County.

dsc

[Tom Davis]

I don't like raising taxes (I'm an "R") but we need this kind of news and we 'ought to support the proposed 1% tax for local education (to be divided 80/20) between Horry County's local school districts and its higher eductation venues: CCU & HCTC (which benefit the entire region); as having a skilled, trainable workforce (and a place/program in-place to train 'em prior to start-up) always makes a difference for potential employers considering these types of decisions. It's the right thing to do. Nice story.

[Denney Clements]

You're right, Tom. We're supporting the 1-cent tax mainly because Coastal and tech would get cut in on the proceeds, and I'm personally voting for it, even though I don't need or want a further property-tax break. Both schools, tech, especially, are essential to diversifying our local economy.

dc

[Nick]

I didn't support it last time, I don't want to pay more at the register. I have no personal direct stake in the public school, none that I directly see anyway, so I'm happy with the status quo. This time they announced that the colleges would benefit from it too, and since I plan on going back to school, I can agree on the tax.

[beachguy(original)]

The way CCU wastes money and has no financial controls, plus the open door policy for "illegals" at HGTC means I will Vote "AGAINST" the tax.

Horry County School Board can't even make Horry County Schools secure.

Why are they trying to raise money for CCU ??

[beachguy(original)]

PS: Perhaps they should try learning how to run Horry County Schools first.

[Tom Davis]

Nick:

However you get to 'yes' that's a fantastic reason (and truthful acknowledgement of self-interest is always a powerful reason); absolutely no need to beat the drum about anything else, it's time to 'drop the pen' and let you sign or offer you a ride to the polls.

Denney: In re: HCTC's value vs. CCU ... their roles are very different and I'd agree that HGCU is extremely valuable for our region.

A LOT of thanks is due old-man (I say that very kindly) Malcom Fowler and his wife, they put a considerable amount of money where their mouth was supporting Tech ... that old guy was really smart.

He knew that in a barnyard race the trailing rooster wasn't apparently gay, he was just slower (or way too big for his britches, having given the 'old rooster' too big a head-start; which is what got him shot by the farmer on the porch that didn't know what Malcom Fowler knew). Thus, the 'old rooster' was able to keep his henhouse job, keep those hens cackling and continue to crow at the sun every morning.

Education is very powerful, combined with experience it's unbeatable.

[Denney Clements]

Amen to that, brother Tom. Thanks for the background on how tech got to be what it is now. We'll have to have a more detailed conversation sometime about the Fowlers. But tech under Neyle Wilson and the current Area Commission is an inspirational machine of economic development and community enrichment. I'm a huge fan.

dc

[beachguy(original)]

I don't know how my above post got here....but I wish Metglas continued success

[Tom Davis]

Malcom Fowler was a rich man who workd 'hard' not to show it. A great, good, CLOSE friend of his ... Craig Wall, Sr. (his 'next-door' neighbor on 501 - "Canal Wood") who was a real GIANT in Horry County, used to get a new caddy from Mr. Fowler every year. Mr. Fowler would give it the "Wall" treatment (it was always black) ... he would remove the Cadillac hubcaps and replace 'em with nondiscript Buick (or totally plain rims) ... then he'd remove ALL Cadillac exterior markings/badges; inside it was all Cadillac but 'to the world' it was just a plain black car.
BOTH of those guys were like that.
I was on a finance committee with Mr. Fowler once (in the 70's) when we were, as Members, obligated to provide 'current financial statements'. ALL of us (except Mr. Fowler) wanted to 'show the world' what rich wizards we were ... lots of 'high appraisals' on that Committee!!! ... except Mr. Fowler.
I'll never forget how embarrassed I was valuing a multi-family lot on 71st that I owned at the time for $150K (a real stretch back then); then reading his FS to see that he was valuing an 'oceanfront' lot at $23K.
When I asked him about it he said "That's what I paid; I still own it, how do I know it's worth more than that? I haven't sold it."
Mr. Fowler gave several MILLION to HGTC ... and Mrs. Fowler KEPT giving after he died.
If you asked him about it he'd say "we need a lot more good plumbers and auto mechanics around here that we need more lawyers or Indian Chiefs."
I liked Mr. Fowler very much. Even today I don't feel qualified to carry his luggage, and I have a HIGH opinion of myself.
He was very special.

[beachguy(original)]

The "BIG" question is..have they produced a lot more good plumbers and mechanics ?

Or just a bigger budget