AMA: Economic development and the Athens EDC

(AMA stands for “Ask Michael Anything,” and is our readers’ chance to ask reporter Michael V. Hannigan questions about Henderson County.)

QUESTION: Through our Facebook page, Scott Brooks of Athens asked what the Athens Economic Development Corporation was doing to bring jobs to the city, as opposed to all the restaurants currently going up around town.

SOURCE: I sat down with Athens Economic Development Corporation President and CEO Brian Malone to discuss Scott’s question.

ANSWER: Malone was quick to agree regarding the AEDC’s true goal.

“We definitely agree that having good jobs for people to be employed at is our main purpose,” he said.

If those retail/restaurant businesses approach the EDC, the board is going to listen and try and help, said Malone, but he added, “The retail development is a secondary function. Our main purpose still will be job creation and marketing existing industry.”

Generating jobs is one of those things “easier said than done” however, and Athens is in competition with thousands of communities around the country for those jobs.

To try and get an edge, the AEDC went through a strategic planning process with TIP Strategies of Austin last year. Several times during our discussion, Malone referenced things “the community told us,” or strengths and weaknesses learned during the study.

To encourage that, the AEDC joined with the Trinity Valley Community College Small Business Development Center to offer a six-week course on going into business. The project started this month and at the end of the course, one business is going to earn a $30,000 grant. A business plan is a written description of the future of your business and more importantly, how you are going to get there. It is a document that explains what you are going to do to make your company profitable and how you are going to achieve this. It defines both your business model and your strategies to make this business model work and more importantly profitable. Normally when a business idea arises, you know what resources and capabilities you have at the start of your business and where you want to go in a certain period, usually in 3 or 5 years. But what is the way to reach that goal? Where to start? How to arouse investor interest? Even, how to get your business off the ground? Everything seems so easy when you have the great money winning idea and concept. It is how you are going to achieve these dreams and get enough money to keep the business going for many years to come. You can check here for more about the Business Corporate Planning.

Malone said there are three main ways to build economic growth: entrepreneurship, working with existing industry, and recruiting new industry.

1. Entrepreneurship: Malone said one of the things to come out of the focus groups that were part of last year’s study was the need to help local people start new businesses.

2. Existing Industry: “We have many wonderful companies already here, when you get right down to it,” Malone said. “We work with those guys to identify opportunities to help them expand.”

That could include new equipment or buildings, or expansion programs.

As an example, Malone pointed to programs with Schneider Electric, where the EDC board agreed to help the company based on jobs created, or OTE International, where the board provided a low interest loan and employment incentives.

In the past, the board has helped Argon with its roof.

“That helps keep that business here,” Malone said.

“Investing in those businesses is something that we’ll look at,” he added.

3. Recruiting: “Everybody loves recruiting, but it is also one of the hardest things to do,” Malone said.

Athens is not only going against other communities in the region or state, but the entire country.

“It is a very competitive situation,” Malone said.

Malone has been to California three times in the past year trying to lure business to the city, twice as part of a delegation from the Northeast Texas Economic Alliance.

“You have to be active in terms of trying to create a pipeline of projects, and that’s really what we are trying to do,” he said.

One real drawback for Athens, which was pointed out in the study, is a lack of developed sites.

“What I mean is, if you go to Sulphur Springs they’ve got four or five industrial parks, 300-400 acres. If you go to Kilgore, they have 500 acres. If you go to Commerce, they have about 115,” Malone said. “Athens has nine acres. That is a competitive disadvantage that we have.”

That doesn’t mean Athens can’t succeed. Extreme Engineering is a company relocating to Athens, and the sports recreation equipment manufacturer expects to bring 33 jobs to the city.

“We are going to look at trying to capitalize on our strengths. We are going to really look at different ways we can visit at medical device companies because we have a good niche there, and see how we can expand that,” Malone said. “Right now there’s good traction for us to do that and that’s something we are going to continue to work on.”

While the interview was with AEDC President Brian Malone, he is certainly not the only one involved in making decisions. The board includes: Chairman Robert Gould, David Holdredge, Kelly Smith, Tere Lawyer, Jess Laird, Maurice Cox, and Joe Masso. (Athens Mayor Jerry Don Vaught and City Administrator Pam Burton are ex-officio members of the board.)