Roanoke Business- Dec. 2013 by Virginia Business

DECEMBER 2013

SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION

City Manager David Ridpath

Hits misses and

Grading the performance of the region’s economy

The Amateur Softball Association of America’s national tournament will be held in Salem in July.

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CONTENTS

6 December 2013 SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION

F E AT U R E S COVER STORY

Better than average The coming year looks to be a good one for the local economy.

by Jenny Kincaid Boone

BUSINESS TRENDS Attracting older residents

Roanoke and New River valleys get national attention as places to retire. by Donna Alvis Banks

SPECIAL REPORT The class of 2014

A watch list of rising young entrepreneurs. by Mason Adams, Donna Alvis Banks, Kathie Dickenson, Beth Jones and Shawna Morrison

COMMERCIAL INSURANCE Statistics have a say

22 Predictive modeling is helping insurance

companies set rates. by Joan Tupponce

D 25

TECHNOLOGY

M 30

22 E

COMMUNITY PROFILE

No more illegible prescriptions

Coming together

Electronic medical records are becoming more common. by Kevin Kittredge

Botetourt County has planned its way to a new sense of community. by Anita Firebaugh

INTERVIEW: GEORGE CARTLEDGE JR. Furniture executive named to hall of fame. Early entrepreneur finds success in business and community service. by Sandra Brown Kelly

DECEMBER 2013

33 36

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FROM THE EDITOR CityWorks Xpo participants listen to each other and create a buzz

e need to be future-proof. We need to constantly think outside the box. We need to become change agents empowered to leverage synergy so we can get the bandwidth we need to double down on our strategy, sync up our goals and actualize our vision of creating a client-based, cost-centered, result-driven, performance-based model that will get us a win-win. Buzzwords can be ridiculous. Buzz with substance? That’s something else altogether. Sometimes people interested in using new ideas to solve old problems – and people interested in rediscovering old ideas that worked pretty well until we abandoned them – say something with that buzzword-like ring. At CityWorks Xpo, an annual gathering billed by organizers as “a collaborative … creative and multi-disciplinary idea exchange,” buzz with substance is pretty common. Ed Walker – developer, lawyer and social entrepreneur – is the force that draws CityWorks Xpo together. Gathering big names and big ideas on the top floor of Roanoke’s Market Building, he invites folks to come in and listen – and talk. Those people and ideas come from all over, including from right around here. One of the October event’s three days opened with Jeff Midkiff playing his mandolin. Midkiff was born and raised in Roanoke. His mandolin was made in Floyd County by renowned luthier Arthur Conner. The tune Midkiff played was “Roanoke,” written by Bill Monroe, the father of bluegrass. Midkiff used that tune and “Wildwood Flower,” made famous by the Carter Family, in his mandolin concerto, “From the Blue Ridge.” It premiered with the Roanoke Symphony Orchestra in 2011 and has been performed from Rochester to Shreveport. Midkiff was 7 when he got his first mandolin. That’s when he began to think of the world – problems, riddles, challenges, everything – in musical terms. Musicians have to listen to each other, he said, and react. They build on and add to what their bandmates are doing. That brings the obvious lessons about harmony and cooperation and all that, but Midkiff said music also taught him, “Some dreams are way too big to do by yourself.” Erika Johnson, who co-founded Floyd Fest with her life and business partner Kris Hodges, spoke in a segment called, “Mom, Why Is Floyd So Amazing, And So Many Other Places Aren’t?” Johnson seemed to sum up her perspective with one sentence, “It’s not where you are; it’s how you are who you are.” All those people being themselves in Floyd generates friction, Johnson said, and that generates dialogue. Dylan Locke, artistic director at The Jefferson Center, lives in Floyd County and he identified with Johnson’s point. “The friction,” Locke says, “seems to me to be really cozy and beautiful.” Floyd is a small place, and that may make all that beautiful coziness easier to generate. But Arturo Reyes grew up in Flint, Mich., a city best known as a place where General Motors used to build cars. Reyes is a community organizer who’s focused his job into one question: “How do we turn the resources we have into the power we need to make the changes we want?” Wirt Confroy, director of partnerships and outreach for the Virginia Tourism Corp., had another snappy saying to remind people and communities that when they’re building or promoting something, “It’s not about you. It’s about you and your neighbors. “You’re not a rock star,” Confroy told the folks at Xpo. “You’re in the band.” In buzzword speak: You’ve got to leverage that synergy for a win-win.

DECEMBER 2013

SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION Vol. 2

DECEMBER 2013

President & Publisher Roanoke Business Editor Contributing Editor Contributing Writers

Art Director Contributing Designer Contributing Photographers

Production Manager Circulation Manager Accounting Manager Advertising Sales

No. 12

Bernard A. Niemeier Tim Thornton Paula C. Squires Mason Adams Donna Alvis Banks Jenny Kincaid Boone Kathie Dickenson Anita Firebaugh Beth Jones Sandra Brown Kelly Kevin Kittredge Shawna Morrison Joan Tupponce Adrienne R. Watson Elizabeth Coffey Sam Dean Alisa Moody Natalee Waters Kevin L. Dick Karen Chenault Sunny Ogburn Lynn Williams Hunter Bendall

CONTACT: EDITORIAL: (540) 520-2399 ADVERTISING: (540) 597-2499 210 S. Jefferson St., Roanoke, VA 24011-1702 We welcome your feedback. Email Letters to the Editor to Tim Thornton at tthornton@roanoke-business.com VIRGINIA BUSINESS PUBLICATIONS LLC A portfolio company of Virginia Capital Partners LLC Frederick chairman e de c L. Russell u sse JJr.,, c a a

on the cover The Amateur Softball Association of America’s national tournament will be held in Salem in July. File photo

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COVER STORY

Better than

average The coming year looks to be a good one for the local economy. by Jenny Kincaid Boone

f the Roanoke and New River valleys took a test on the economy, the region would earn mostly Bâ&#x20AC;&#x2122;s. Several industries, such as manufacturing, health care and tourism, are producing jobs, with employment forecasts positive for 2014. Meanwhile, other industries are struggling.

Overall, the Roanoke Valley gained 5,400 jobs as of June, for a total employment of 158,600 that month. Still, its economy will remain in the recovery phase until it surpasses a March 2007 monthly peak of 163,900 jobs, according to a report by Chmura Economics &

DECEMBER 2013

Analytics, a Richmond firm that analyzes economic trends. The report also says that total jobs in the Roanoke region will increase by 1.9 percent in 2014, slightly higher than its 0.9 percent growth in 2013. The Chmura report forecasts a jobs increase in

Blacksburg of 1.6 percent in 2014, compared with a 1.5 percent rise in 2013. With an eye toward the coming year, hereâ&#x20AC;&#x2122;s how several important Southwest Virginia industries rate concerning job growth and economic performance in 2014.

Manufacturing: Ardagh Group

Cutline

Tourism: Hiking McAfee Knob Health care and life sciences: Virginia Tech Carilion Research Institute

Housing: BOn the heels of one of the largest real estate sales slowdowns in history, Tom Wilson took a chance. In April, the real estate broker hired nine real estate agents and opened Prudential Premier Realtors on Roanoke Road in Daleville. This is the second location for his Prudential business, a move Wilson says was key to tapping into Botetourt County’s improving real estate market. “Botetourt had taken a pretty good hit” in home sales, Wilson says. Photo by Mark Rhodes

“You’ve got to be in a position when it is ready to turn.” Wilson’s expansion is one signal that the region’s housing market is picking up steam after a rocky few years that sent sales diving, put many real estate agents out of work and tightened home lending. Experts expect the Roanoke and New River valleys’ residential real estate markets to improve gradually in the next year. “Everything seems to indicate to me that we should continue to have a good strong fall and

winter season,” says Mel Jones, a research associate with the Virginia Center for Housing Research at Virginia Tech, adding that 2013 has been the best sales year in the past five years. The total number of homes sold in the Roanoke Valley rose to a sixyear high in August. Buyers purchased 447 homes, up 16 percent from 384 in August 2012, according to the Roanoke Valley Association of Realtors. Betty Kingery, a Rocky Mount ROANOKE BUSINESS

cover story real estate broker and president of the Roanoke Valley Association of Realtors, says sales activity increased in 2013, but the lending market remains tight. Also, housing inventory is large, at 3,300 homes for sale as of late September, she said. Home construction also is picking up, after a significant slowdown. Roanoke-area building permits increased 38.6 percent from June 2012 to June 2013, according to the Chmura report. Sales of custom and speculative homes at Progress Street Builders in Blacksburg increased 50 percent this year, compared with 2012, says General Manager Don Hughes. The company is booked for jobs through early 2014. Stable employment in the region has contributed to a “very quick recovery from the lows” for home building, Hughes says. Tourism: A Come July, hundreds of families will visit the Roanoke Valley for the Amateur Softball Association of America’s national tournament. They will book at least 2,000 hotel rooms daily for seven to nine days. They may eat in restaurants, shop at Valley View Mall and visit Mill Mountain Zoo, the Taubman Museum of Art and other attractions. The tournament will be one of the largest that the region has hosted. It’s one of many events tourism experts expect to draw a slew of out-of-towners and spending to the Roanoke area in 2014. In 2012, people who traveled to Roanoke, Roanoke County, Salem and Franklin and Botetourt counties spent $730 million – 4 percent more than $703 million in 2011, according to the Virginia Tourism Corp. Montgomery County led the New River Valley in total travel spending in 2012, with $129 million, up from $121 million in 2011, based on the same report. The area’s travel amenities have been recognized nationally and regionally. Roanoke was named the 8

DECEMBER 2013

The Amateur Softball Association of America’s national tournament will be held in Salem next year.

best midsize mountain town in 2012 and the best trail town in 2013 by Blue Ridge Outdoors magazine. Also, the Botetourt Sports Complex in Troutville was named the 2012 Amateur Softball Association of America’s complex of the year. In 2011, the association gave the James I. Moyer Sports Complex in Salem the same honor. “I have to give credit to the economy improving,” says Landon Howard, executive director of the Roanoke Valley Convention & Visi-

Nationally, “slow but reasonably steady growth is the consensus forecast” for the tourism industry, says Richard Perdue, department head and professor of hospitality and tourism management at Virginia Tech. New branding by the Roanoke Valley CVB also is key to increased tourism spending in Southwest Virginia, Perdue says. Two years ago, the bureau introduced a new name, Virginia’s Blue Ridge, to promote Roanoke and surrounding communities as a cohesive travel area.

In 2012, people who traveled to Roanoke, Roanoke County, Salem and Franklin and Botetourt counties spent $730 million — 4 percent more than $703 million in 2011, according to the Virginia Tourism Corp. tors Bureau. For 2014, “I see nothing but encouraging signs.” These signs include several new hotels scheduled to open late this year and in 2014, including a 126room Hampton Inn & Suites on Valley View Boulevard in Roanoke and a 117-room Hilton Garden Inn in Southwest Roanoke County, off U.S. 220.

“As a rule, the further people travel, the more regional the market structure needs to be,” Perdue says. “Also, as a rule, the further people travel, the more money they spend.” Still, logistical challenges plague the region’s ability to attract tourists. Travelers on Interstate 81 do not see the Roanoke Valley’s important Photo courtesy Amateur Softball Association of America

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cover story sights because they are not visible from the interstate, says Catherine Fox, CVB spokeswoman. Manufacturing: B+ From a metal can producer to a Poland-based candle maker, several manufacturing companies are targeting the Roanoke and New River valleys for new locations next year, driving job growth. Ardagh Group and Korona S.A. are two of a host of manufacturers

making plans to land facilities and jobs in Southwest Virginia. Ardagh plans to open a metal can-making operation in Roanoke County at the former Hanover Direct distribution center on Hollins Road. In a move that represents the largest manufacturing investment in Roanoke County, the Luxembourg-based company has said it will spend $93.5 million to renovate the 525,000-square-foot facility. Ardagh produces 4.5 million

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cans a day or about 5 percent of the U.S. food can market. The company, which will begin operations in the third quarter of 2014, plans to hire 96 machine operators, managers and support staff. In September, Korona chose Pulaski County for an $18.3 million candle production facility. It plans to hire 171 employees for a fall 2014 opening. Manufacturing jobs make up 11 percent of the Roanoke metropolitan statistical area’s job market, according to the Chmura report. Newgeography.com, which evaluates cities based on job growth, recently ranked Roanoke as the 15th-best city for manufacturing jobs and the 10th-best among midsize cities. An improving housing market has contributed to growth for manufacturers that produce windows and building products, says John Hull, director of market intelligence for the Roanoke Regional Partnership. But not all Southwest Virginia manufacturing companies are expanding. Grede, a Radford foundry that produces iron castings for the automotive industry, plans to shut its doors at the end of December, eliminating 250 hourly and salary jobs, says company spokesman Richard Pacini. Grede Holdings bought the facility, formerly Virginia Casting Industries, in 2012. Pacini says the foundry is “idling,” because of “a lack of competitive cost structure” and the aftermath of a 2012 fire. Jeld-Wen also plans to close its Christiansburg door manufacturing plant early in 2014. Retail: B As consumer spending slowly picks up nationally, the retail business in Southwest Virginia is mixed for retailers and developers. Some are moving forward with growth plans, while others are uncertain. During the third quarter, the Roanoke MSA’s retailers employed 17,563 people, the third-largest sec-

Jacklyn’s Hallmark store moved from Ronaoke County to Towers Shopping Center in Roanoke to draw more shoppers.

tor behind health care and social service and the government, according to the Virginia Employment Commission (VEC). But the National Retail Federation (NRF) cautions that retailers are awaiting stronger signs of sustained economic growth. “Retailers are making headway but challenges remain,” NRF Chief Economist Jack Kleinhenz said in a news release. “Slow wage growth and downward jobs revisions continue to indicate a reluctant economy.” For Scott Bailey’s 17 Hallmark stores in the Roanoke Valley and in North and South Carolina, sales volume remains below 2007 levels, before the Great Recession. “Being small, we’re the first to see an upturn or downturn,” Bailey says. “If gas prices go up, [consumers think] it’s not so important to send someone a happy birthday card.” In October, Bailey relocated one of his Jaclyn’s Hallmark stores from Cave Spring Corners, a retail center in Roanoke County, to Towers Shopping Center in Roanoke to escape rising rent rates and draw more shoppers. “It was a better economic move for us,” he says. In Blacksburg, the owners of First & Main, an outdoor shopping center, plan to build a movie theater with an IMAX screen, restaurant and bowling alley. Construction began in June for Cinebowl & Grille. It’s aiming for a May 2014 opening, says Nate Kiser, property manager. Photo by Steven Mantilla

Already, news of Cinebowl’s coming has revitalized leasing activity at First & Main, a 130,000-square-foot center that has struggled to attract and retain shops and restaurants since it opened in 2008. As of early October, Kiser would not disclose the new retail prospects. “It’s been a challenging environment, but I see retailers performing on promising deals,” he says. “We see this as a promising market.”

Health care and life sciences: A

Four health-care companies are among the top 15 largest employers in the Roanoke Valley, with one, Roanoke Memorial Hospital, topping the list, according to the VEC. Also, as of the first quarter of 2013, health-care and social assistance companies employed more people than any other sector in the Roanoke Valley. Health care continues to be

ROANOKE BUSINESS

cover story a major driver of the region’s economy. Take the Virginia Tech Carilion Research Institute in Roanoke, for example. The biomedical research center opened in 2010 with 12 research teams. Now it has 21 teams and more than 150 faculty and staff. At Virginia Tech, construction of the first building in a new biosciences precinct was completed in November. The building will house research labs for faculty and students in the College of Agriculture and Life Sciences. Programs will include food safety, food packaging and processing, and bioenergy. Biomedical research is a growing component of the economy. Scientific research and development service jobs increased 42 percent from 2011 to 2012, according to the Chmura report. The region also is training more doctors. The Virginia Tech Carilion School of Medicine in Roanoke reached its full student capacity at 168 this fall. Also, Virginia’s economic impact from the Edward Via College of Osteopathic Medicine in Blacksburg from June 2011 to June 2012 was about $119 million, which includes student spending, salaries, wages, benefits and operations. It had a record enrollment of 1,200 students for the 2013-2014 academic year at its Blacksburg and South Carolina campuses. One challenge for the healthcare industry is the implementation of the Affordable Care Act, coined “Obamacare.” The law requires Americans to sign up for health insurance by March 31 to avoid a penalty. Additional consumers with health insurance likely will create a surge in demand for doctors and hospitals, says Timothy Jost, a law professor at Washington & Lee University. At the same time, with increased price competition from insurance companies, “providers are going 12

DECEMBER 2013

The Virginia Tech Carilion School of Medicine in Roanoke reached its full capacity of 168 students this year.

to start seeing more pushback with no longer have the option to fly prices” from consumers, he says. directly to New York from Roanoke. Delta Air Lines is considerTransportation: C ing discontinuing its flight from The region’s transportation the Roanoke Regional Airport to industry has experienced ups New York’s LaGuardia Airport. and downs. Earlier this year, Not enough passengers are taking when a customs official retired the weekday flight. US Airways at the New River Valley Airport discontinued its Roanoke to New in Dublin, the federal govern- York service last summer. ment did not replace him. The Even so, another transportaport official, who had worked in tion option that would increase Dublin for more than a decade, the region’s economic develophelped regional businesses with ment opportunities and visibility export and import activity, such is on its way to becoming a realas inspecting packages and offer- ity. After advocates spent more ing guidance. U.S. Customs and than 15 years rallying for passenBorder Protection says the deci- ger rail service in Roanoke, the sion was budgetary, says airport service likely will become availmanager Keith Holt. able in three years, says Wayne But the move could severely Strickland, executive director of impact the region’s ability to at- the Roanoke Valley-Alleghany tract businesses that rely on in- Regional Commission. ternational commerce, says Aric The state is studying issues Bopp, executive director of the ranging from the location of a New River Valley Economic De- passenger platform to coordinavelopment Alliance. Now, interna- tion with Norfolk Southern train tional travel through the airport service. Lynchburg, which already has halted. “It’s my expectation has rail service via Amtrak, would that we will get that position be the next stop for a train headback,” says Bopp, who has spoken ing from Roanoke. Advocates bewith congressional representa- lieve rail to be an economic boon tives about the situation. “It’s an for the area. important component to being a “Our hope is that it will bring globally competitive area.” more people down here,” StrickMeanwhile, passengers may land says. Photo courtesy Virginia Tech

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BUSINESS TRENDS A view of Smith Mountain Lake from Barb and Will Nocera’s lakefront home.

Attracting older residents Roanoke and New River valleys get national attention as places to retire by Donna Alvis Banks

lorida has long been known as a retirement state. More than 18.2 percent of its population of 19.3 million is 65 and older. As one bumper sticker puts it: “Florida — God’s waiting room.”

Yet Virginia ranks higher than the Sunshine State on AARP’s list of the 10 best-rated states for retirement, based on such factors as weather, economy and life expectancy. On the list, last updated in October 2012, Florida and New Mexico are in a tie at No. 7, while Virginia claims the No. 5 spot, also surpassing Texas, California, South

DECEMBER 2013

Dakota and Colorado. Only Arizona, Utah, Idaho and top-ranked Hawaii score higher. Within the Old Dominion, the Roanoke and New River valleys consistently earn high marks as retirement destinations. Earlier this year, AARP the Magazine chose Roanoke as one of the 10 best places to retire on less than $100 a day, calling it “a

bustling small city amid the magic of the Blue Ridge Mountains.” In 2009, Roanoke made Money magazine’s top 25 places to retire, and a 2010 U.S. News & World Report story espoused Blacksburg as a top 10 best affordable mountain town for retirement. Why are retirees drawn to this region of Southwest Virginia? RePhoto by Natalee Waters

Barb and Will Nocera moved from Washington, D.C., to their Smith Mountain Lake home in December 2010.

sponses from senior citizens interviewed by Roanoke Business ran the gamut, from scenic beauty to minor league baseball to an agreeable shortage of mosquitoes. All of those interviewed, however, cited a common denominator in their decision to locate here: the people. “It’s a beautiful area, but I think the thing that really differentiated it for us is the people in the community,” says Mark McClain, 67, of Salem. “The people are very friendly,” agrees Blacksburg’s Carol Kuchinski, 67. “This is a melting pot for retirPhotos by Natalee Waters

When Barb Nocera was considering early retirement, her husband said, “What is there to think about? Let’s go to the lake!”

ees. We’ve always found ourselves welcomed.” Carol and David Kuchinski, both former public school teachers, moved to Blacksburg from Owego, N.Y., in

ginia Tech. Their two sons graduated from Tech. David Kuchinski, 70, says his family visited many states when his oldest son was looking for a univer-

“It’s a beautiful area, but I think the thing that really differentiated it for us is the people in the community.” 2002. Weary of cold temperatures and seemingly endless precipitation in the upstate town, the Kuchinskis discovered Blacksburg through Vir-

sity: “Western Illinois, University of Florida, Purdue — you name it, we were there. Eric had an appointment to the Naval Academy, but he chose ROANOKE BUSINESS

business trends Virginia Tech.â&#x20AC;? After Eric Kuchinski got his degree in mechanical engineering, his younger brother, Brad, followed with a degree in building construction engineering. Both now have corporate jobs elsewhere, but David and Carol Kuchinski settled in Blacksburg. They say Blacksburgâ&#x20AC;&#x2122;s temperate weather factored into their retirement choice, but the more noticeable difference was the temperament of Southwest Virginians. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve found the people much more courteous and respectful here than in the North,â&#x20AC;? David Kuchinski says, recalling a time when a power outage at Christiansburgâ&#x20AC;&#x2122;s Wal-Mart left his son stranded at the check-out with other customers who remained calm and chatted affably. â&#x20AC;&#x153;In New York,â&#x20AC;? he says, â&#x20AC;&#x153;people would be throwing things.â&#x20AC;? Matt Miller, director of information services for the Roanoke Valley-

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Alleghany Regional Commission, says coming up with hard numbers on why people might move to the Roanoke region is difficult. Yet a

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recent â&#x20AC;&#x153;Age Waveâ&#x20AC;? report compiled by his organization notes that between 2000 and 2010, the regionâ&#x20AC;&#x2122;s population grew by 6.1 percent with the â&#x20AC;&#x153;baby boomerâ&#x20AC;? age groups (5559 and 60-64) increasing nearly 37 percent and 58 percent, respectively.

Between 2000 and 2010, the regionâ&#x20AC;&#x2122;s population grew by 6.1 percent with the â&#x20AC;&#x153;baby boomerâ&#x20AC;? age groups (55-59 and 60-64) increasing nearly 37 percent and 58 percent, respectively. â&#x20AC;&#x153;We â&#x20AC;&#x2DC;hearâ&#x20AC;&#x2122; that the Smith Mountain Lake area may draw people from the North who are more afPhoto by Alisa Moody

Outdoor activities and natural beauty are big draws for retirees.

fluent and are looking for a more moderate climate and ‘lake lifestyle.’ Roanoke may draw from more rural areas since it is the largest urban area in the region and has better health- care options,” Miller writes in an email. “But it is hard to translate these generalizations to statistics.” Mark McClain and his mate, 65-year-old Diana Christopulos, know why they moved to Salem from Irving, Texas, in 2003. “We love it,” he says. “We never looked back.” “We like it a lot better than we thought we would,” adds Christopulos. The couple, lifelong environmental activists, says bad air, bad traffic and bad weather in Dallas’ suburban area made the Roanoke Valley attractive. After looking at properties in several states, including Missouri, Tennessee and North Carolina, they came to Salem in part because of their love for minor league baseball. They bought a house near Salem Memorial Ballpark and started the Roanoke Valley Cool Cities Coalition, a local organization working to curb global warming. “We call this a Goldilocks climate Photo by Alisa Moody

because it’s not too hot and it’s not too cold,” Christopulos says, adding that she and McClain also enjoy the area’s four seasons.

Lake living is what drew 58-yearold Barb Nocera and her 64-year-old husband, Will, to Smith Mountain Lake 20 miles south of Roanoke. The Northern Virginia couple bought lakefront property as an investment in 1999 but lived in Alexandria and worked in Washington, D.C. As head of Mazda’s D.C. office for government affairs, Barb was the company’s chief lobbyist, but when it downsized and offered retirement incentives in 2010, she sought her husband’s opinion. “What is there to think about?” he replied. “Let’s go to the lake!” The Noceras like the development that has made Smith Mountain Lake an energetic hub. “There’s plenty to do here,” says Barb. “For us, it has everything we need.” More importantly, she adds, the lake has one thing they don’t need: “Believe it or not, one of the deciding factors was the lack of mosquitoes.” Pulaski County’s Claytor Lake

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business trends enticed Janice and John Woodward from Bluefield, W.Va. They turned their weekend getaway at the lake into a full-time residence and then opened it to guests. Contentment on the Cove, their B&B, opened in 2011. While they have a small clientele (usually fewer than 20 guests a year), they enjoy serving people. “That’s what this time of life is about — giving back,” says Janice Woodward, 61. “This area is so rich with opportunities for everybody. When I went through the checklist as to whether a bed-and-breakfast was plausible, I was able to check off every one of the criteria.” Citing an abundance of outdoor activities, active music community, local colleges (some of which offer free classes for senior citizens), a variety of restaurants and theaters, qualified health-care facilities and professionals and many different churches and nondenominational

The wildlife and serenity of Claytor Lake in Pulaski County appeal to retirees.

places of worship, Woodward can’t say enough about the area as a retirement destination. Like others, she appreciates the lower cost of living

Our Services • Assisted Living • Independent Living

in the valleys, too. Forbes.com lists Roanoke’s cost of living at 7.2 percent and Blacksburg’s at 8.8 percent below the national average. Woodward, a former teacher with a master’s degree from Tampa’s University of South Florida, doesn’t

Forbes.com lists Roanoke’s cost of living at 7.2 percent and Blacksburg’s at 8.8 percent below the national average.

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have much to say about that other retirement place, though. “They can give Florida back to the roaches as far as I’m concerned. I didn’t care for Florida. We’ve been affirmed that this is where we need to be,” she says. “This is a warm, comforting area. This is a great time of life.” Photo by Alisa Moody

SPECIAL REPORT

THE CLASS OF 2014 A watch list of rising entrepreneurs

by Mason Adams, Donna Alvis Banks, Kathie Dickenson, Beth Jones and Shawna Morrison

oanoke’s Jason E. Bingham, a vice president with Trane North America, is responsible for the company’s $1.2 billion central territory. Last month, Junior Achievement of Southwest Virginia inducted him into its Hall of Fame as the organization’s first-ever Young Entrepreneur. Bingham is author of “Cultureship: The ABCs of Business Leadership.” He’s known for his results-driven approach, but he’s not the only entrepreneur in the valleys. Here’s a quick look at Bingham and some other rising business leaders who are making waves.

Jason Bingham, 45 What he does: Develops strategies and processes for Trane leadership programs that are adopted across the nation. Who he is: “It’s important to me that I do the right thing for others and add as much value as I can while I am here. It is equally important to me that I have strong relationships with my wife and kids. After that, it is fun to play golf.”

Who she is: Levison is a volunteer with the American Institute of Certified Public Accountants and the Virginia Society of Certified Public Accountants. She also serves as PTA president at her daughter’s school and enjoys traveling and spending time with family and friends. What’s ahead: “The sky’s the limit. I’m going to continue writing and speaking about personal finance and see how far it takes me.”

What’s ahead: “I have found that doing my best today tends to make evident where I should go next and that setting goals can have the unintended consequence of missing the right path.”

Advice: “I’m a big advocate of being frugal. Being frugal means taking pride in using your money wisely. It doesn’t mean you have to be cheap and pinch every penny and give up all the things in life you enjoy. It does mean putting emphasis on true wealth, being debt-free with solid savings and investments.”

Advice: “Grow, serve and perform.”

David Poteet, 45

Clare Levison, 35

What he does: President and founder of NewCity, a Blacksburg Internet design firm specializing in websites, apps and online campaigns.

What she does: Certified public accountant and author of a new personal finance book, “Frugal Isn’t Cheap: Spend less, save more, and live better.” She works part time for Alliant Techsystems at the Radford Army Ammunition Plant.

Who he is: Poteet says he strives to provide a workplace where his 30 employees can grow while still finding time to pursue a personal life. Poteet hikes, bikes, spends time with ROANOKE BUSINESS

special report family and works with youth in his church.

Roanoke.

What’s ahead: NewCity is leaving Virginia Tech’s Corporate Research Center for a new space in downtown Blacksburg. Poteet is focused on developing new leadership, too. “Not that I’m planning to leave soon, but I want to be more involved in speaking and not being as involved in the company,” Poteet says.

Who she is: Lohmann develops programs that help English speakers improve reading skills and that teach English to speakers of other languages. “The people who come to us are often convinced that they’re stupid, but it’s very clear to me that they’re not because they’ve been able to live as long as they have, sometimes without even being able to recognize letters,” says Lohmann, the daughter of a Chilean immigrant.

Advice: Poteet says there’s no thrill quite like seeing hard work turn a vision into reality. “Just believing you could do it is one of the most powerful parts of being an entrepreneur,” he says. Tony Roman, 31 What he does: Director of business development at Family Insight, a community-based mental-health-care provider. Who he is: Roman started Family Insight two years ago to help provide services to clients facing severe mental illnesses, by helping them stay in their homes and communities. He works to find a balance in promoting the company, spending time with his wife and exercising. Roman is president of the Christiansburg Rotary Club and serves as an adjunct faculty member at Radford University. What’s ahead: Roman wants to grow Family Insight from its current footprint in Roanoke, Manassas and Richmond to a statewide presence. He also wants to expand its range of services, particularly for autistic clients. Advice: Do something that you’re passionate about. “It’s kind of cliché, but I’ve definitely found it to be true.” Greg Széchényi, 32 What he does: Owner of Press Press Merch, maker of screen-printed goods and apparel. Who he is: Széchényi became an entrepreneur 12 years ago when he started making T-shirts for his rock band, which led to making T-shirts for other rock bands, which led to making T-shirts about festivals, businesses and pretty much everything under the sun. Today, his company has eight full-time employees. What’s ahead: “I want to continue to implement ways to manage the growth, so everything doesn’t get out of control. I want to make sure we’re delivering what we say we’re going to deliver.” Advice: “Work really hard.” Stephanie Lohmann, 28 What she does: Program manager, Blue Ridge Literacy in 20

DECEMBER 2013

What’s ahead: Lohmann is working toward creating programs that offer English skills to entire immigrant families. Advice: “I have this mantra. I think it came from Conan O’Brien, but I’m not sure. It’s this: If you work really hard and you’re kind, amazing things will happen.” Haden Polseno-Hensley, 35, and Rose McCutchan, 34 What they do: Owners, Red Rooster Coffee Roaster, Floyd. Who they are: Polseno-Hensley and McCutchan, once high school sweethearts, married in 2010, the same year they decided to partner in business. The idea to begin roasting high-end organic and fair-trade coffee took shape when McCutchan was working at the Black Water Loft, a Floyd coffeehouse owned by her mother. “She said she’d love to have some coffee roasted inhouse,” Polseno-Hensley explains. The couple is passionate about creating an ethical business model. This means they do things like having a local screen printer create their bags out of eco-friendly, water-based inks even though it costs three times as much to do it that way. What’s ahead: Whole Foods Market in Charlottesville recently began carrying Red Rooster coffee. The pair hopes to expand that to other Whole Foods locations. Advice: “You have to be really proactive,” McCutchan says. “You can’t just sit and wait for the phone to ring.” Gregory Beato, 34 What he does: Beato practices internal and sports medicine with Medical Associates of Southwest Virginia, provides hospitalist care at Lewis-Gale Montgomery and he serves as a Virginia Tech physician, primarily for women’s soccer and men’s basketball teams. Who he is: “Important in my work is communication and honesty with my patients … Important outside of work is

spending time with my wife, Susan, and 1-year-old, Marco.â&#x20AC;?

Advice: â&#x20AC;&#x153;Figure out what the overarching impact of your career work should be,â&#x20AC;? then â&#x20AC;&#x153;identify your more finite interests and your strengths and weaknesses.â&#x20AC;? For young people in this time of job scarcity, â&#x20AC;&#x153;be flexible, nimble and not too proud.â&#x20AC;?

Whatâ&#x20AC;&#x2122;s ahead: â&#x20AC;&#x153;I want to grow my practice as much as possible while continuing to offer the highest quality and comprehensive patient care possible.â&#x20AC;?

Tara Grant, 41

Advice: â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m a firm believer in hard work, no matter the goal. Anything worth doing will take effort and hard work.â&#x20AC;?

What she does: Principal, Belview Elementary School, Christiansburg. Who she is: Someone who provides children with opportunities and information so theyâ&#x20AC;&#x2122;ll â&#x20AC;&#x153;know whatâ&#x20AC;&#x2122;s out there for themâ&#x20AC;? and gets them committed to high school graduation.

Mason Cavell, 31 What he does: Director of energy efficiency programs, Community Housing Partners in Christiansburg; co-founder and chairman of the board, Bike the U.S. for MS. Who he is: Someone who likes being in a leadership role â&#x20AC;&#x153;in efforts that I think are making important progress in solving problems â&#x20AC;Ś I have fun when Iâ&#x20AC;&#x2122;m challenged â&#x20AC;Ś itâ&#x20AC;&#x2122;s almost as if Iâ&#x20AC;&#x2122;m only comfortable when Iâ&#x20AC;&#x2122;m out of my comfort zone.â&#x20AC;? Whatâ&#x20AC;&#x2122;s ahead: Will continue working on energy efficiency and poverty issues in Southwest Virginia and in the state.

Whatâ&#x20AC;&#x2122;s ahead: Short-term goal for the school â&#x20AC;&#x201D; raise studentsâ&#x20AC;&#x2122; test scores. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re doing okay, but I want us to do better because we can.â&#x20AC;? Long-term goal for herself â&#x20AC;&#x201D; pursue a doctorate in educational leadership. Advice: â&#x20AC;&#x153;Keep moving forward â&#x20AC;Ś Iâ&#x20AC;&#x2122;ve talked a lot of people into going back to school and getting that degree, or getting that certification, because I believe that everything you do builds and adds and enhances where you end up.â&#x20AC;?

What is a person TRULY capable of? 5RDQRNH LV WKH SODFH ZKHUH ZH ĂŻQG RXW :H WHDFK RXU VWXGHQWV WR RXW VPDUW RXW VROYH DQG RXW GR WKH H[SHFWHG The world needs people who want more than business as usual. Solving our biggest problems requires it.

www.roanoke.edu

ROANOKE BUSINESS

A 5.9 magnitude earthquake in 2011 cracked the Washington Monument, littered the floor of Millerâ&#x20AC;&#x2122;s Mart in Mineral and made more Virginia businesses think about earthquake insurance

DECEMBER 2013

AP Photo/Steve Helber, File

COMMERCIAL INSURANCE

Statistics have a say Predictive modeling helps insurance companies set rates by Joan Tupponce

arson Hamilton is cautiously optimistic that businesses won’t see any major increases in their commercial insurance premiums next year. “There may be small 2 to 5 percent increases but not like anything we have seen in the past 10 quarters where increases have been as much as 15 percent in some cases,” says Hamilton, CEO of Commercial Insurance Services in Roanoke. “2013 is faring better than 2012, and 2014 will be somewhat better than that.”

Weather always factors into insurance rates, so this year’s mild hurricane season is a plus for the insurance industry, which saw about $25.4 billion in insured losses when Hurricane Katrina slammed into the Gulf Coast in 2005. “We haven’t had the storms we have had in the past,” says Hamilton. “And, there’s nothing that looks threatening on the horizon.” Businesses with good loss experience will likely see little, if any, increase in premiums. Businesses with large losses, however, won’t fare as well. “If you have significant losses, you can expect rates to increase, which will increase your premiums,” says Roy Bucher, president of Chas. Lunsford Sons & Associates in Roanoke. The increase in rates varies by line of business. For example, directors and officers and employment practices liability will see the highest rate increases. “Rates for directors and officers coverage have increased

because of the economy,” Bucher says. “Most of that is underwritten based on an insured’s financial statement. If that is not strong, rates will go up.” The economy also plays a role in pushing up rates for employment practices liability. “If you terminate someone to save money and that person sues you, that falls under employment practices,” Bucher says. One of the biggest changes in commercial insurance is the adoption of predictive modeling, which uses a large collection of data to help insurance companies set rates. “Insurance companies are relying more on models and analytics to better manage their pricing profile,” says Richele Stanzione, vice president and director of corporate marketing for Lynchburg-based Scott Insurance. “They are looking at the big picture and using statistics.” Predictive modeling reflects the loss experience that insurance

companies have seen with different types of business. “Most insurance carriers have a target list of classes of business that they would like to write. Each carrier is a little bit different,” says Bucher. “Typically they go after classes that don’t have an adverse loss experience.” Personal lines such as automobile insurance have relied on predictive modeling for several years. “These models are now being used in commercial insurance,” Stanzione says. “Before commercial insurance companies were just relying on an underwriter to gather information and make assessments on individual clients.” This type of pricing first showed up in the commercial sector in workers’ compensation. “Now you are seeing it in all lines,” Hamilton says. “It’s making pricing a little more of an art than it used to be.” As they work to manage rates, businesses must look at what types of coverage they consider necessary. ROANOKE BUSINESS

commercial insurance When cyber liability coverage hit the market a few years ago, many businesses overlooked it, but not anymore. Cyber liability covers everything from data breaches that involve Social Security numbers, bank account information or patient history to the transmission of a computer virus to a third party. Businesses that benefit from this coverage include law offices, health care, retailers, and insurance and financial services firms. â&#x20AC;&#x153;The average cost of a data breach could be in the millions of dollars. You need to buy coverage for that,â&#x20AC;? Bucher says. â&#x20AC;&#x153;Rates depend on the type of risk you have and how much coverage you need.â&#x20AC;? A data breach can be triggered by a large event such as someone hacking into the companyâ&#x20AC;&#x2122;s computer system or a smaller theft such as someone stealing a laptop or a company iPhone. â&#x20AC;&#x153;You need to be proactive in getting rid of any confidential information you donâ&#x20AC;&#x2122;t need any more,â&#x20AC;? Bucher says. â&#x20AC;&#x153;You have to

Sandy and Carson Hamilton counsel businesses to do all they can to make themselves attractive to insurance companies.

have safeguards to prevent someone from hacking into your system and getting client information.â&#x20AC;? Earthquake insurance is another coverage that some Virginia businesses are considering, based on the 5.8 magnitude earthquake that shook Louisa County in 2011. Other areas that have experienced earthquakes since 1981 include Scottsville, Richmond, Hillsville and Carroll County, according to the Virginia Department of Mines, Minerals and En-

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DECEMBER 2013

ergy. â&#x20AC;&#x153;Business owners need to weigh whether they have that exposure,â&#x20AC;? Bucher says, noting that earthquake insurance is based on the value of the building and where it is located. â&#x20AC;&#x153;If itâ&#x20AC;&#x2122;s located on a fault line, it could be very expensive.â&#x20AC;? Next year businesses could face changes relating to the Affordable Care Act that may increase premiums. â&#x20AC;&#x153;There are a lot of information gaps on who should be complying with what portions of the law,â&#x20AC;? says Sandy Hamilton, who heads up the benefit division of Commercial Insurance Services. â&#x20AC;&#x153;Organizations are currently having problems because so many people are trying to access the marketplaces.â&#x20AC;? She advises clients to be cautious about rushing into the marketplace. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s better to be right than fast,â&#x20AC;? she says. â&#x20AC;&#x153;There is still so much uncertainty with the carriers about their processes for applying. We are going to have the answers but it will take some to time to get the right answers.â&#x20AC;? Businesses proactive in controlling variables such as risk exposures, loss control, contracts and lost production will benefit from lower rates. Insurance companies also consider it a plus if businesses offer safety training and attend subject-specific workshops and seminars such as the ones the Hamiltons provide for clients. As Carson Hamilton points out, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s so important for the organization when it is getting prices from the insurance company to do all that it can do to make itself attractive to the insurance company.â&#x20AC;? Photo by Don Peterson

TECHNOLOGY

No more illegible prescriptions Electronic medical records are becoming more common

Dentist William Moore worked with electronic records while he was in school, so he’s had no trouble adopting them in his practice. by Kevin Kittredge

mail your nurse. Review your medical file from your home computer or download it onto a flash drive when you leave town, just in case. Send a photo of that mysterious skin rash to your doctor — or even have a virtual visit with him in cyberspace.

Those paper files? Forget about them. The age of digital health care is upon us. Spurred in part by CMS, the Centers for Medicare and Medicaid Services — which provide financial incentives for adopting up-to-date electronic health record systems — health care is changing

Photo by Natalee Waters

fast, officials say. In Southwest Virginia, Carilion Clinic and LewisGale Regional Health System, which together own nearly all of the hospitals in the Roanoke and New River valleys, are using electronic health records. Part of a national trend, the use of electronic records by fam-

ily physicians is expected to top 80 percent this year, according to a recent article in the Annals of Family Medicine. “We are in implementation mode,” says Beth Garrett, senior IT director for LewisGale, which is part of Nashville, Tenn.-based Hospital Corp. of America. LewisGale ROANOKE BUSINESS

technology has hospitals in Salem, Low Moor, Pulaski and Blacksburg as well as several outpatient centers and 700 affiliated physicians who are either employed by LewisGale or in private practice. “To date we have connected everything that is required by the government,” Garrett says. “We’re where we need to be.” For Roanoke-based Carilion’s eight hospitals and 600 physicians, paper files are already history, says Stephen Morgan, a physician and Carilion’s chief medical information officer. “They’re gone.” What are electronic health records? As the federal Medicare and Medicaid website cms.gov explains, “An electronic health record . . . allows health-care providers to record patient information electronically instead of using paper records. However, EHRs are often capable of doing much more than just recording information.” Indeed, the death of the manila folder is just the tip of the iceberg, say health-care officials. With medical records in a centralized data system, patients and their doctors can, or will soon be able to, access the information from almost anywhere. Carilion already has a feature in place called “My Chart” allowing patients to see portions of their records online. “You can see your test results, email your doctor and, in some cases, schedule your next appointment,” says Carilion spokesman Eric Earnhart. LewisGale will have a similar system in place in the next few months. “The flexibility that gives you – and the ability to exchange data – is just incredible,” says Morgan, who can remember waiting days for paper records to be transferred. Most of the world, of course, went digital long ago. “Medicine really was behind the times, to some degree,” he says. Part of the problem was money. The outlay in new computers and 26

DECEMBER 2013

Chief Medical Information Officer Stephen Morgan, says paper records are history at Carilion.

software has been “fantastically expensive,” says Morgan. Carilion’s conversion to modern electronic health records in 2008 cost $80 million. LewisGale officials could not provide a cost figure. Carilion and LewisGale began the transition to digital files in the late 1990s. Yet in the last several years the process has reached warp

she adds. Still, much remains to be done. With ease of record sharing have come new privacy concerns. As doctors and nurses become more accessible by computer, a new billing system will have to evolve. One immediate problem is that some software systems now in use are not compatible with others. Carilion, for example,

With medical records in a centralized data system, patients and their doctors can, or will soon be able to, access the information from almost anywhere. speed. One driver is the federal government. Eventually, health-care providers who have not modernized record-keeping systems will be paid less by Medicare and Medicaid, Garrett explains. Money to convert to electronic health records was part of the 2009 federal stimulus bill,

uses Epic. LewisGale hospitals use Meditech; its physician practices use eClinicalWorks, and its affiliated independent physicians use various brands. “Interfaces have been a real challenge,” Garrett says. ”There is a real need for everyone to standardize, so Photo by Natalee Waters

we can all talk to each other.” Some doctors complain that the time they spend behind the computer makes it more difficult to relate to patients. Plus, some older doctors struggle with typing skills, says Dr. Kipper Nottingham, a Carilion physician. “I do know a couple of older doctors who chose retirement” rather than make the switch. Overall, however, he finds the new accessibility of medical files a plus. During a recent trip to France, Nottingham was able to log on to the Carilion site to check on test results and “see how some of my patients were doing,” he says. Plus, in the new electronic world, the famous illegibility of physician handwriting is a thing of the past. “It has been more good than bad,” Nottingham says. “With any kind of a major change, you’re going to have some challenges,” says Garrett. “It’s a frontier. Our jobs are not dull.” Like it or not, more change is coming. For instance, more health care will take place via email and computer in the future, requiring fewer trips to the doctor’s office. Those trips will focus more on patients with chronic medical conditions, Morgan says. “Starting next year, we’ll be able to take in pictures,” he adds. “So if you’ve got a rash, you can go, click, ‘What do you think, doc?’ It really opens up a whole different world of how we’re going to end up practicing medicine 10 years from now.” Some personnel won’t get there, of course, especially older healthcare workers who may have little incentive to change. Dentists, for example, get little from Medicare and Medicaid, and so converting to electronic health records may seem more trouble than it’s worth. Some dentists are making the change anyway. Roanoke Valley dentist William Moore, 28, used Photo by Natalee Waters

Kipper Nottingham says some doctors have retired rather than adopt electronic records.

electronic health records in dental school. “For me, this is kind of what’s been normal,” he says. Moore has installed a cloud-based system called Curve Dental at his practice on Peters Creek Road. He shares a building

with a dentist in his 60s, however, who is sticking with paper. The older doctor’s response to Moore’s initiative? “He said more power to me.”

Accomplished “Our experience working with Waldvogel Commercial Properties was wonderful. They found the Hawthorne Towers for us and then stayed with us through the whole process. They really showed that they were willing to go the extra mile for us.” Jennifer Bell, Kissito Healthcare, Inc.

Let us help you with your next real estate transaction. Call, click or scan to see more success stories. www.waldvogelcommercial.com 540-342-0800

ROANOKE BUSINESS

INTERVIEW: GEORGE CARTLEDGE JR., Chairman, Grand Home Furnishings

Furniture executive named to business hall of fame Early entrepreneur finds success in business and community service George B. Cartledge Jr. is still handing out Coca-Cola at Grand Home Furnishings stores.

by Sandra Brown Kelly

eorge B. Cartledge Jr. never participated in Junior Achievement, except to serve on its board, but his November induction into the JA Southwest Virginia Business Hall of Fame paid tribute to a lifetime commitment to business and community. Cartledge, the 72-year-old chairman of Grand Home Furnishings, has long demonstrated entrepreneurial talent, beginning when he was a youngster selling Cokes in Atlanta. “The Coca-Cola Co. would give you a little yellow box – like a lemonade stand – where you could sell Cokes. I did that for a little while. Back then, you could buy a case of drinks for a dollar. One day, I took a wagon load of Cokes and went around to this apartment complex. I figured that might be better than sitting waiting for customers,” Cartledge recalls. His association with Coca-Cola came back into play years later when he was running the family’s furniture business. When Cartledge began attending Virginia Episcopal School (VES) in Lynchburg at age 15, he and a roommate sold corsages to fellow students whenever the school had a party weekend. He also worked in a men’s clothing store where he got a two percent commission on purchases by VES students. On school breaks from VES and later from Hampden-Sydney College where he majored in economics, he worked at Grand, sometimes driving a delivery

DECEMBER 2013

truck. His first sale was a $1 mirror. The Cartledge history with Grand dates to 1945 when George Cartledge Sr. and two partners expanded Southeast Wholesale Furniture Co. in Atlanta to Roanoke with the purchase of Grand Piano and Furniture Co. Today, the company has 550 employees in 19 stores, with 13 stores in Virginia and others in West Virginia and Tennessee. The company’s signature? A bottle of Coke it began offering to customers in 1953. Employees hand out, on average, 1.25 million beverages a year, including Coke regular, diet and Zero, Sprite and water. It would not be unheard of for George Jr. to hand out one of those Cokes even today. All the company’s leaders, which include his son, George Cartledge III, president; and Robert Bennett Jr., Cartledge’s nephew and the executive vice president, regularly work alongside the sales staff. The atmosphere is like family. George Jr.’s first boss at Grand, Fred Flora, has an office just down the hall from his. Flora, 94, started at Grand in 1946 and works two days a week. The company is private and does not release financial information, but the trade publication Furniture Today ranked Grand Home Furnishings 50th on its Top 100 Stores for 2012. It estimated Grand’s 2012 sales at $120.8 million. The company and its workers are generous in support of communities where Grand

has stores. The Cartledge Foundation each year contributes to an average of 80 nonprofit organizations in its three-state territory. This is in addition to the Employees’ Benevolent Fund, which annually supports projects selected by employees. George Jr. is chairman of the board of Center in the Square in downtown Roanoke and led the capital campaign for its recent renovation. “We raised $10 million and got $18 million in tax credits,” Cartledge says. He also serves on the boards of Carilion Clinic and Hometown Bank, where he was one of the founders. “My father always felt an obligation to give back to a community where we were fortunate enough to make a living,” Cartledge says. “He was oldest of five children; my sister and I were the first people in our family to go to college. My dad was running a grocery store when he was 17, and he worked all his life. That carried down. George and Robert feel the same way. They are on lots of boards.” George III serves on the Carilion Medical Center Finance Committee and the boards of Mill Mountain Theatre, Multiple Sclerosis Society, North Cross School and the Roanoke Rescue Mission. He’s also president of the board of directors of the American Furniture Hall of Fame Foundation Inc. Robert Bennett is a member of the boards of Carillon Foundation, Center in the Square, First Fridays at Five, Star City Motor Madness and the Virginia Museum of Transportation. He also serves on the National Home Furnishings Board Advisory Committee. Roanoke Business: As chairman, what duties do you currently have with the company? Cartledge: I just finished writing 22 letters. Once a month I write our top 10 salespeople and everybody whose anniversary ends in a zero or a five. I also go into the stores just like everybody else does. I worked in the Beckley, W.Va., store on Labor Day. We all still work in the stores. The role of most management people is to be cheerleader, to try to help people to do what you expect them to do. They figure if you can do it, they don’t mind doing it. RB: How does it work? Do you and your son and nephew sit down together to Photo by Sam Dean

make business decisions? Cartledge: We have a meeting every Monday morning. We have three vice presidents that report to George and Robert. They tell us everything they think we need to know. We travel a lot; today, George is in Beckley. We get involved in merchandizing the stores. We want them set up properly. RB: What has been the toughest period in your business? Cartledge: The toughest period for us has been the same as for everybody else, 2008 and 2009. Business generally was off in the whole industry. FBI [Furniture Brands International] filed for bankruptcy in September, and they’re the biggest conglomerate of manufacturers in the business. [FBI’s brands include Broyhill, Lane and Thomasville.] RB: Do you still go to the furniture markets to buy for the stores? Cartledge: I was in High Point this week. Robert buys upholstery, and George does the casegoods. I used to do all of that. They also go to the patio furniture market in Chicago, but I don’t go. RB: How does a market trip work? Do you make suggestions for purchase even though you have delegated the buying? Cartledge: Oh sure, I make suggestions, but there are 12 million square feet of furniture at the High Point Market, and you can’t see it all. [The market consists of 180 buildings.] You determine what your needs are before you go. In the old days when the market was in one building, we’d start at the top floor. Now, if we are looking for motion furniture [reclining chairs, pullout sofas, sectionals] … we go to specific vendors. One thing about Grand is we’re big enough to buy from almost anyone, but we’re small enough to buy from some specialty vendors that stores like a Haverty’s are too large to buy from. Smith Brothers of Berne [Indiana] is one of those vendors. That furniture is made by Swiss-Amish, and they make as fine an upholstered product as there is on the market. RB: How have your customers changed? Cartledge: I think young people are moving away from Queen Anne looks, and traditional is not so much important. They are moving more toward disposable furniture instead of something you’re going to keep for 40 years. Furniture has become more of an expression of people’s taste and their artistic abilities. If you can’t paint, you can decorate your living room, and that’s what women do today. They are much better at that

than their mothers were. Their mothers were so concerned about getting tired of something they were afraid to be adventurous. Women today buy bright colors and fun things and don’t worry about what it will look like 25 years from now. They want something that’s an expression of their creativity. RB: Anytime furniture is mentioned, someone always brings up the topic of imported furniture. Obviously, Grand Home Furnishings buys a lot domestically. Talk a bit about the domesticimport situation. Cartledge: There’s still a lot made here, and we buy a lot in the U.S. But if you want a cheap leather sofa, you’re going to buy an import. The leather comes from China and the wood is sent from North Carolina, and the Chinese import someone from Italy to tell them how to make it. Then they bring the sofa back here and sell it for half of what you could make it for here. Quality determines the price to some degree. You can spend $500 for a sofa in any store; we take pride that our $500 sofa is better than anyone else’s. RB: What are the trends in furniture and furniture stores? Cartledge: Twenty-five or 30 years or so ago, the really good looking furniture was expensive, and the stuff that didn’t look so good was cheap. Today, it all kind of looks the same. The styling of moderately priced furniture is much better than it used to be. The questions to ask when buying are what are you going to do with it, who made it, and how does it sit? Furniture is like a suit of clothes; you can buy a suit for $100 or you can buy one for $1,000; they look about the same, but they feel a lot different. That same thing is true about furniture The big explosion in furniture in the last few years has been in mattresses. We have 70 mattresses on display and that is in each size. People are aging and have back trouble. Tempur-Pedic has been phenomenal. Everybody sells it for the same price. It’s amazing how much of that we sell. It used to be that people had a little den and living room. Now the master bedroom has sort of become a den. I think 25 percent of the recliners sold go in bedrooms. RB: Almost all of the media coverage of you has been about your business or community involvement. Do you have any hobbies? Cartledge: Everybody in the family likes cars. I have a couple of old Mercedes sports cars. And, we drive nice cars, but we drive a lot. I

drove 600 miles day before yesterday. I read a lot, mostly fiction and military history. I’m reading “Roosevelt’s Centurions” now. I’m also going to the beach more than I used to; we have had a cottage at Pawley’s Island for 17 years. Robert says the reason I turned upholstery buying over to him was so I could go to the beach without having a guilty conscience. RB: Do you think you will retire? Cartledge: Probably not. I have to retire from the Carilion Clinic board next year because of the age limit, which is good. I’ve been on a Carilion board for 40 years. I went on the board in 1975 when it was Roanoke Hospital. I was chairman of the board when Carilion Clinic came into being. I’m also on the compensation committee. I’ve been on the Hampden-Sydney board for 28 years. I tried to set up term limits, but the only place I’ve ever gotten term limits put in is on the Roanoke Symphony Board. I’m supposed to become chairman of Hometown Bank – I’m vice chairman now – but I’m trying to get Bill Rakes [current chairman] to stay. When we set the bank up, we said we were going to rotate the chairmanship. I’m also chairman of its loan committee so I have about three meetings for the bank a month. RB: Who are you really? The community sees a successful business man with a concern for his community, but who are you away from work? Cartledge: Mary Ann and I have been married 52 years, ever since I was a sophomore in college. We started dating in high school when she was at St. Catherine’s [Richmond], and I was at VES, so it was a long distance romance. We have nine grandchildren, ages 4 to 19, so we go to lots of events. Our daughter Ann [married to Joe Hoff, executive director at Brandon Oaks LifeCare Retirement Community] has a 4-year-old who just completed a 50-meter, .6-mile run and 3-mile bike ride. All of the children of George III and his wife Barbara are excellent tennis players. We do all get together. When Mary Ann and I celebrated our 50th wedding anniversary, I took the family to The Greenbrier instead of having one of those parties where people read poems. RB: Does your interest in family extend to family history? Cartledge: I know the family came from Reddings, England, and I had relatives in the Civil War; three were in Stonewall Jackson’s brigade. It has been rather easy to learn about family history because we had a lot of Presbyterian ministers in the family and there are church records. ROANOKE BUSINESS

COMMUNITY PROFILE | BOTETOURT COUNTY

Coming together Botetourt County has planned its way to a new sense of community

Botetourt County Administrator Kathleen Guzi leads a government focused on community and economic growth.

by Anita Firebaugh

or the last half of the twentieth century, folks in Botetourt County’s southern end looked to Roanoke. The county seemed split, with farmland to the north and growth to the south. However, two decades of planning and controlled growth have coalesced to create a sense of community.

Families work, play and have access to educational opportunities nearby. New music venues, restaurants and an appreciation of scenic beauty have given residents a reason to spend time and money in Botetourt. Though growth slowed during the economic recession, change continued. Familiar faces in county government, including some who had been there for decades, left. 30

DECEMBER 2013

Kathleen Guzi took over the county administrator’s position in 2012; this past September, she hired Jay Brenchick as economic development manager. Unemployment never climbed above 6.5 percent during the recession even though the county lost a few manufacturers. Those unemployment numbers are now running around 5.3 percent, and county officials expect better days.

“We are definitely seeing an increase in activity,” Guzi says. Botetourt, with a population of about 33,000, began changing in the 1990s with the purchase of 900 acres to create the Botetourt Center at Greenfield. Though the center has only one industry, Altec, Guzi hopes for more. “They’re bursting at the seams,” she said of the company that manufactures truck-mounted mobile equipment. “We love to see Photo by Don Peterson

those trucks up and down [U.S.] 220.” A pad-ready site, which cost the county $314,641 for design, construction and utilities, is on the market. “We have the premiere business park in this entire region,” she says of Greenfield, “and we will get additional businesses in there.” The county also has invested in a sewer upgrade that should meet the growth needs in Daleville for the next 20 years, and it is drilling new wells. Major highways traverse the 548 square miles of Botetourt, located just north of Roanoke. There’s U.S. 460 in its eastern corner and Interstate 64 to its north. Interstate 81, U.S. 220, and U.S. 11 converge at Daleville. This busy interchange is due for a $46.8 million upgrade that will create a loop road and roundabout. The state already has filed paperwork to take property for the project. Construction of the loop road, scheduled to begin in 2014, will open up land for development. “This is an opportunity for us to try and define what we need in this county,” Guzi says. Her staff will examine business opportunities, and she anticipates high-level retail in this location because of the tourism potential due to Daleville’s proximity to I-81. With the hiring of Brenchick, the county is refining its economic development focus. He will work with small and midsize businesses, not just larger industries. Brenchick called it an opportunity for existing enterprises to partner with the county to expand or improve efficiency. He is particularly interested in “businesses that bring new money into the community” and commercial enterprises “in which over half of their product or services goes outside the county.” Botetourt remains 69 percent rural with a strong farming tradition. More than 635 farms bring in $13.5 million in revenue annually, so agribusiness has potential. “At the state level there are some new incentives and programs for agricultural businesses,” Brenchick said, and he expects to involve Virginia Photo by Don Peterson

Andy Kelderhouse, president of Fralin & Waldron, and Steve Claytor, vice president of development, stand in front of apartments under construction at Daleville Town Center, a Fralin & Waldron project.

Botetourt County Area: 548 square miles Population: 33,154 (2012 estimate) Population growth since 2000: 8.7 percent Percentage of population with high school diploma or higher: 89.5 Percentage of population with a bachelor’s degree or higher: 22.9 Tech whenever possible. Businesses seeking a workforce can find help in Daleville. Botetourt has a partnership with Virginia Western Community College through the Greenfield Education and Training Center. The training center offers welding, contractor’s licensing and other courses that meet local business needs. The facility also hosts the public school’s STEM-H Academy. The program allows high school students to focus on science, technology, engineering, math and health courses through a dual enrollment program.

Median household income: $65,633 Private nonfarm employment: 9,189 (2011) Unemployment: 5.3 percent (July 2013) Annual Budget: $90.8 million (2013/ 2014)

Sources: United States Census Bureau, Bureau of Labor Statistics, botetourt.org

As a result, some of these students graduate from high school with an associate degree. The STEM-H Academy “will really benefit the students of Botetourt County in their future education,” says Supervisor Terry Austin, by defraying some of the costs of a higher education. The supervisors and the county school board have maintained a close working relationship even during the recession. “Education is really at the heart of any community,” Guzi says. “A community that values and is willing to invest in education becomes ROANOKE BUSINESS

community profile the community that people want to be in. We’ve been successful at that.” The school board oversees 12 schools plus the STEM-H Academy, with a total student body of 4,856. The schools’ annual budget is $54.5 million, more than half of the county’s $90 million budget. The county’s emphasis on tourism has generated new money and given residents a different vision of community. Fincastle Winery, Virginia Mountain Vineyards, Blue Ridge Vineyards and the Flying Mouse brewery offer residents opportunities to spend both leisure time and money nearby. Blue Ridge Vineyard owner Barbara Kolb says her Eagle Rock attraction, which features music, hiking and picnicking, annually sees 6,000 visitors. “We are tickled to death when people come to Botetourt County,” Kolb said. “I think we are one of the best held secrets probably in the whole world.” The Upper James River Water

Blue Ridge Vinyards’ Barbara Kolb calls Botetourt County “one of the best held secrets probably in the whole world.”

Trail has created fun and jobs for water enthusiasts, and the county’s Greenfield Sports Complex has become a nationally recognized destination for sporting teams. Daleville Town Center, the county’s first and only traditional neighborhood development, combines residential and commercial activities. This summer new retail businesses, a music series and a farmers mar-

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ket gave residents a taste of things to come. A doctor’s office, dentist’s office, drugstore and grocery store are within walking distance, making this “a unique town center development that adds to the character and culture of Botetourt,” Guzi says. This fall the center’s developer, Fralin and Waldron, began filling its 120 apartment units — a recent $12 million investment — with new county residents. “We feel like there is a strong pent-up demand for apartments in Botetourt County for all age and demographic groups,” says Steve Claytor, vice president for development with the real estate development firm. Additionally, Claytor says a YMCA may build at the center. The project has the support of local officials, as well. “That will create an identity for that area,” Austin said. “It will encourage businesses to relocate there, too.” The YMCA, which could make a pool available to the high school swim teams, would be a cornerstone for the development. “I think Botetourt is going to be a very desirable place to be. The YMCA can bring it all together,” Austin said. This new economic development climate should mean good things for existing and new businesses, according to Guzi. “Our goal is to always make sure that Botetourt’s culture and climate is conducive to our businesses being able to not only survive but thrive.” Photo by Don Peterson

Roanoke Regional Chamber of Commerce | SPONSORED CONTENT

Roanoke Regional Chamber recognizes Chamber Champions CHAMBER CHAMPIONS

EVENT SPONSORSHIP

BB&T Brown Edwards Blue Ridge Copier Cox Business Gentry Locke Rakes & Moore LifeWorks REHAB (Medical Facilities of America) MB Contractors rev.net Spilman Thomas & Battle PLLC Trane Woods Rogers Attorneys at Law Pepsi Bottling Group

27th Annual Small Business of the Year Awards

Note: Chamber Champions are members who support the Roanoke Regional Chamber through year-round sponsorships in exchange for year-round recognition.

Clear Channel Media + Entertainment First Citizens Bank Gentry Locke Rakes & Moore Cox Business City of Roanoke County of Roanoke Sir Speedy Printing and Marketing Services xpedx

Natural Foods Co-op named Roanoke region’s Small Business of the Year. Sales, opening of second store and staying power bring recognition. The Roanoke Regional Chamber of Commerce and Roanoke Regional Small Business Development Center have named Roanoke Natural Foods Co-Op the 2013 Small Business of the Year. The food co-op, which offers nutritious food choices and earth-friendly products, was recognized at the chamber’s 27th Annual Small Business Awards dinner Oct. 3, at The Hotel Roanoke & Conference Center. John Bryant accepts the 27th The annual awards program Annual Small Business of the showcases the accomplishments Year award plaque on behalf of of the small-business sector, Roanoke Natural Foods Co-Op. which is composed of 95 percent Photo by Jim Markey Photography of the area’s business community. Founded in 1975, Roanoke Natural Foods Co-Op recently opened a new retail location in downtown Roanoke. It also operates Heritage Point farm, the largest contiguous urban farm in the United States. “As in years past, the selection committee was faced with a very difficult decision because of the number of outstanding companies represented in the competition,” said Joyce Waugh, president of the Roanoke Regional Chamber of Commerce. Waugh continued, “The Small Business Awards selection committee was impressed with how Roanoke Natural Foods has shown constant and continual growth during its years of existence. We were especially impressed with the opening of the new downtown store this year and the co-op’s long-term plans for growth.” A committee of local business people evaluates nominees in terms of increased sales, employee growth, staying power, innovation and contributions to the community. To be eligible, companies must meet SBA small business standards and be at least 3 years old.

Award winners by category are: • Small Business Advocate: Wendy J. Jones, Williamson Road Area Business Association. • Small Business Veterans of the Year: Nancy Harms and William Holmes, Patriot Drug & DNA Testing. • Construction/Real Estate: MKB, REALTORS continues to show growth even during uncertain economic times in the housing market. • Micro-Business (five or fewer employees): American Biosystems has discovered its niche market of sales of microbial enzyme products to the international market. • Technology: JPI is an information technology and program management consulting firm specializing in support services for federal government clients. • Business-to-Business Services: Devine Building Services opened in 2002 and has grown into the region’s largest building services company. • Business-to-Consumer Services: East Mental Health helps their patients foster independence while managing symptoms of mental illness through a holistic approach. • Wholesale/Retail: Roanoke Natural Foods Co-Op. • Manufacturing: Tecton Products designs and manufactures custom fiberglass pultrusions that are durable and weather-resistant. • Legacy Award (in business for 50+ years): Wood’s Service Centers has provided automotive services, repairs and towing to the citizens of the Roanoke Valley since 1957. • Not-for-Profit Arts and Culture: Center in the Square is a unique cultural complex dedicated to serving the community as an active participant in economic development. • Not-for-Profit Health and Human Services: DePaul Community Resources works with other nonprofit organizations in the region to transform the lives of special needs clients. Previous Small Business of the Year winners include EHS Support Services (2012), Interactive Achievement (2011), Magnets USA (2010), Home Instead Senior Care (2009), Virginia Prosthetics (2008), Luna Innovations (2007) and Blue Ridge Medical Imaging (2006).

ROANOKE BUSINESS

SPONSORED CONTENT | Roanoke Regional Chamber of Commerce

Member news & recognitions

Deborde

A American National University has nnamed Tonya Deborde department cchair of the newly launched health in information management program at tthe Roanoke Valley Campus.

All Virginia and West Virginia campuses of National College will become campuses of American National University during the fall term of 2013. Campuses in Charlottesville, Danville, Harrisonburg, Lynchburg and Martinsville as well as Parkersburg and Princeton, W.Va., are affected by the transition. Brandon Oaks Nursing and Rehabilitation Center formally launched the construction of the John P. Fishwick Rehabilitation Center with a groundbreaking ceremony Sept. 25. Scheduled to open in late 2014, the three-story, 33,900-square-foot expansion will provide Brandon Oaks with the capacity to offer additional in- and outpatient rehabilitative therapies for the general public as well as Brandon Oak residents.

County’s Economic Development C

D Debbie Ruff has been named di-

the t county for more than 13 years.

rrector of the Vinton HoneyTree Early

Roanoke County’s Communication R

LLearning Center.

Department. Loope has worked for D

Loope

and a Information Technology Depart-

JJefferson College of Health Sciences

ment was recently honored with a

hhas been named to the 2014 “Military

Governor’s Technology Award at the 16th Annual

Friendly Schools” list by GI Jobs Magazine, a

Commonwealth of Virginia Innovative Technology

publication of Victory Media, which serves military

Symposium.

personnel transitioning into civilian life. This is

The Roanoke Valley-Alleghany Regional Commis-

the second consecutive year the college has been

sion has been awarded a 2013 Innovation Award

recognized with this designation.

from the National Association of Development

Ruff

Smith

Freda Smith has been named chief F

Organizations Research Foundation for the 2013

ooperating officer of the education

Regional Report Card: A Compilation of Regional

aand recreation divisions of McLeod

Cooperative Initiatives & Activities. This marks the

EEnterprises.

sixth time since 2007 that the Regional Commission

Poe & Cronk Real Estate Group has P

has received an innovation award.

announced the sale of a former bank

A Angela Barbic has joined Smith

building and Ivy Ridge Shopping Mall on Orange

P Packett Med-Com as leasing coor-

Avenue in Roanoke. The property sold for $1 mil-

d dinator. Her duties will include office

Virginia Lutheran Homes, the affiliated owner of Brandon Oaks, has purchased an office building across the street from Brandon Oaks Retirement Community. The purchase will help the organization centralize its facilities and provide for growth.

lion and was purchased by the Rescue Mission.

s space leasing at Pheasant Ridge

The architectural firm Clark Nexsen is ranked 11th on the fifth annual Architect 50 by Architect magazine. The firm was ranked 50 th by the magazine in 2012. E Earth Environmental and Civil has a announced that Christopher S. F Fewster has joined the firm as a s senior engineer.

Since it launched its workplace partnership pro-

O Office Park and marketing upcoming office, retail and restaurant sites at

program RIDE Solutions has seen the number of

South Peak.

employers seeking to help their employees connect

Spilman Thomas & Battle reports that nearly 75

to transportation alternatives continue to grow.

business leaders from the Roanoke region at-

Currently, RIDE Solutions works with 42 employers

tended the law firm’s SuperVision symposium in

representing nearly 44,000 employees in central

September. The symposium focused on providing

and southwest Virginia. RIDE Solutions is a sus-

the keys to manage the most problematic human

tainable transportation program operated by the

capital issues. The keynote presentation was given

Roanoke Valley-Alleghany Regional Commission

by Harry I. Johnson, II, a member of the National

in cooperation with the New River Planning District

Labor Relations Board.

Commission and Region 2000.

Three Heritage Hall administrators have been recognized for excellence by the Virginia Health Care Association. The awards were presented to these leaders of the Roanoke-based Heritage Hall: Parker Jones, administrator of Heritage Hall Leesburg, won the James G. Dunton Distinguished Service Award for Lifetime Achievement; Derrick Kendall, administrator of Heritage Hall Blackstone, received the VHCA Nursing Facility Administrator of the Year Award; and Susan Parks, director of nursing

mental Quality’s Virginia Environmental Excellence

DECEMBER 2013

Barbic

gram in 2007, the regional commuter services

F Citizens Bank has announced First plans to relocate an existing branch at 1959 Valley View Blvd. to a new site at 1535 Hershberger Road in Roanoke. Construction is expected to be completed in late spring 2014.

Fewster

at Heritage Hall Nassawadox, won the Director of Nursing of the Year Award.

P Peter M. Pearl

The city of Roanoke’s Environmental & Sustain-

has joined the

ability Management System (ESMS) Core Team has

l law firm Spilman

successfully completed the criteria for its ESMS

T Thomas & Bat tle

initiative to qualify for the Department of Environ-

Pearl

Jenkins

a s a m e m b e r in the bankruptcy and

Program, level E3 certification.

creditors’ rights practice group. The firm also an-

For the third time in four years, Roanoke College

nounced that Britteny N. Jenkins has joined its

has been recognized as an “Up and Coming” college

Roanoke office as an associate.

by U.S. News & World Report’s college rankings.

U Unbridled Change

Roanoke advanced to the number two spot in the

h elected new ofhas

listing of national liberal arts colleges.

f ficers for its board o directors. They of

Roanoke County Administrator Clay Goodman has named Jill B. Loope the new director of Roanoke

Boyes

Bowman

a David Boyes, are:

Roanoke Regional Chamber of Commerce | SPONSORED CONTENT JDSU, fundraising chair; Sandra Pratt, Wheeler

her new responsibilities following the retirement

Broadcasting, marketing community develop-

of Mike Harness, associate dean for finance and

ment; and Rachel Bowman, U.S. Cellular, board

administration.

member.

Clapp

L. Glenn Kraige, professor of enL Dr. D Kemba Clapp has joined the

ggineering science and mechanics in

Virginia-Maryland Regional College V

tthe College of Engineering at Virginia

of o Veterinary Medicine at Virginia

TTech, has been conferred the title of

Tech as an assistant professor of T

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radiology in the Department of Small r

Tech board of visitors.

Animal Clinical Sciences. Harry Down, a professor of chemH

sessment at the Virginia Tech Carilion School of

istry is in the College of Science at

Medicine, was recently named an honorary profes-

Virginia Tech and a professor at V

sor by Kazan State Medical University in Russia. Ken W. McCleary, professor of K

Institute, has been reappointed the I

hhospitality and tourism management

Dr. A.C. Lilly Jr. Faculty Fellow in

iin the Pamplin College of Business

Nanoscience by the Virginia Tech board of visitors.

aat Virginia Tech, has been conferred JoAnn M. Emmel, associate proJ fessor in the Department of Apparel, fe

McCleary

tthe title of “professor emeritus” by the Virginia Tech board of visitors.

Housing and Resource Management H in i the College of Liberal Arts and

Leo Piilonen, professor and chair L

Human Sciences at Virginia Tech, H

oof the Department of Physics in the

has been conferred the title of “associate professor

College of Science at Virginia Tech, C

emerita” by the Virginia Tech board of visitors.

hhas been reappointed the William

Emmel

TThe College of Agrriculture and Life Sciences at Virginia S

Piilonen

EE. Hassinger Jr. Senior Faculty Fellow in Physics by the Virginia Tech

board of visitors.

TTech has named Erik

Dr. Jeffrey Ruth has joined the D

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Virginia-Maryland Regional College V

crop and soil envi-

oof Veterinary Medicine at Virginia

ronmental sciences, and Alex Niemiera, associate

TTech as an assistant professor of

Ervin

Niemiera

professor in horticulture, as assistant deans.

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W Webster L. Santos, associate pro-

recruitment at the Virginia Tech Lanr

fe fessor of chemistry in the College of

guage and Culture Institute. g

S Science at Virginia Tech, has been

Hunter Gresham has been named H

rreappointed the Blackwood Junior

Gresham

Hylton

Santos

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T Tong Wang has been appointed an aassistant professor in the Department oof Finance at Virginia Tech’s Pamplin C College of Business. Wang is one of nnine new faculty members at Pamplin tthis fall.

P Pamela A. Weaver, professor of hhospitality and tourism management iin the Pamplin College of Business aat Virginia Tech, has been conferred tthe title of “professor emerita” by the Weaver Virginia Tech board of visitors. She has worked at Virginia Tech since 1989. B Bill Woodall, professor of statistics iin the College of Science at Virginia TTech, has been selected as co-reccipient of the first Soren Bisgaard A Award. It recognizes the paper in the Woodall American Society for Quality Journal, Quality Engineering, with the greatest potential for advancing the practice of quality improvement. Receiving the award with Woodall is the late George E.P. Box, the world-renowned statistician who cowrote the paper “Innovation, Quality Engineering, and Statistics” with Woodall. V Virginia Title Center has named Kay S Slusher as its settlement processsor in the Roanoke office. She will

rradiology in the Department of Small

assistant director for admissions and a

chief of staff for the Division of Stuc

Wang

bbe responsible for coordinating and

Animal Clinical Sciences.

Daniel Gerbatch has been named D

Gerbatch

Walters

““professor emeritus” by the Virginia

Heidi Lane, senior director of evaluation and as-

the t Virginia Tech Carilion Research Down

ggroup that will guide the formation of a proposed network of digital reposittories at universities, libraries and oother institutions across the country.

Slusher

pperforming all aspects of residential and commercial real estate process-

ing and settlement. Virginia Western Community College earned honorable mention for its website design in the e.Republic’s Center for Digital Education’s 2013

dent d Affairs at Virginia Tech. Gresham

the Virginia Tech board of visitors.

Digital Education Achievement Awards and Best

has h been director of special events

R Robert T. Sumichrast, professor of

of the Web Awards.

for fo Virginia Tech since 2005.

bbusiness information technology and

C Charles Carter Lee, an attorney

The T Virginia-Maryland Regional

ddean of the Pamplin College of Busi-

w with Woods Rogers in the firm’s

College of Veterinary Medicine at C

nness at Virginia Tech, has been named

llitigation group, has been promoted

Virginia Tech has named April HylV

tthe Sorensen chair by the Virginia

to the rank of major in the Virginia

Sumichrast

ton t as its interim assistant dean of

Tech board of visitors. The Richard

administration. She currently is the a

E. Sorensen Dean’s Chair was established in 2012.

director of human resources at the d

Tyler Walters, the Virginia Tech dean of University Libraries, has been selected to co-chair a steering

veterinary college. She assumed

Lee

National Guard, serving as judge N advocate general for the 116th Brigade

based in Staunton, also known as the Stonewall Jackson Brigade. ROANOKE BUSINESS

SPONSORED CONTENT | Roanoke Regional Partnership

News from the Roanoke Regional Partnership Roanoke leads in economic growth in 2012 Virginia is also one of 24 right-to-work states, which Roanoke is ranked second in the commonwealth and in the top quarter of the nation’s metropolitan areas for economic growth in 2012 according to new gross metropolitan product data from the Bureau of Economic Analysis. Roanoke experienced a 5.1 percent growth rate in its local economy in 2012, significantly higher than the 3.4 percent experienced among the nation’s 381 metropolitan areas on average.

explains a union workforce that is only 4.4% of employment – fifth lowest in the U.S.,” the Forbes reports states. Virginia was ranked No. 2 from 2010 to 2012 and held the top spot on the Forbes list from 2006 to 2009. Virginia has been No. 1 or 2 since the first Forbes Best States for Business ranking eight years ago. Rounding out the top five behind Virginia are North Dakota, Utah, North Carolina and Colorado.

In the Roanoke market, the goods-producing industries (manufacturing, construction, mining and agricultural industries) led the region’s economic growth at an overall rate of 6.8 percent. The region’s service industries grew 5.0 percent. Roanoke’s rate of economic growth surpassed that of more than three quarters of U.S. metros including Asheville, N.C.; Chattanooga, Tenn.; Greenville, S.C.; and Raleigh, N.C.

Virginia named Best State for Business by Forbes.com Once again, Virginia is the top state for business in the nation. Forbes.com honored the commonwealth as the top state in its annual ranking released in September. Virginia ranked in the top five states in four of six criteria: cost, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. “Virginia ranks first among the states in the regulatory category because of its business-friendly government policies and strong incentive offerings. The tort system is one of the best in the country for businesses, according to the Mercatus Center’s “Freedom in the 50 States.” 36

December 2013

Radical Reels a big hit The Radical Reels Tour and Get Outside Expo continues to grow. The Roanoke Regional Partnership event Sept. 11 at the Jefferson Center featured an expo with outdoor businesses and organizations and a film festival with some of the world’s best adventure films. The films are part of the national Banff Mountain Film Festival and showcase some of the best biking, climbing, boarding, skiing and kayaking. Attendance was double the first festival in 2009; more than 650 tickets were distributed. “The consistent increase in attendance mirrors the national trend of growth in outdoor recreation,” says Pete Eshelman, director of outdoor branding for the Roanoke Regional Partnership. “As a community we’ve made significant strides toward making outdoor recreation and environmental stewardship a core component of the Roanoke Region lifestyle.” An increasing number of people are moving to the Roanoke Region because of the outdoors and quality of life while more businesses are using these same reasons to attract and retain talent. For example, Forbes.com, which recently ranked Virginia as the best state in the nation for business, considers quality of life one of six key criteria for business-friendliness.

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