Business North Carolina October 2023 by Business North Carolina

HOW BOB TIMBERLAKE GAINED GLOBAL STARDOM CAN FRANKLIN STREET REVIVE? | SUCCESS TIPS FROM ROD BRIND’AMOUR | CANTON’S CRASH

OCTOBER 2023

STAYING ON TRACK How railroader Jennifer White and 22 other Trailblazers keep their Tar Heel towns charging ahead.

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OCTOBER 2023

UP FRONT

POWER LIST INTERVIEW

In charge since 2014, Tom Pashley drives change at Pinehurst Resort.

PILLARS OF N.C.

Dentist Bill Milner devotes his life to providing care to needy folks across central North Carolina.

COVER STORY

NC TREND

Tiny Earth Toys delivers regular joy, not just at Christmas; How Rod Brind’Amour powers a resurgent hockey powerhouse; Canton eyes a new role after the abrupt closing of its landmark paper mill; Cary’s Tribucha aims to prove tasty kombucha is possible; News from across the Old North State.

TRAILBLAZERS

Our sixth annual roster of under-40 leaders making dynamic local impacts. BY KEVIN ELLIS AND AUDREY KNAACK

80 GREEN SHOOTS A prominent, empty Hickory building opened the door for Appalachian State University’s expansion.

30 ROUND TABLE: DIVERSITY, EQUITY AND INCLUSION Having employees with a wide range of backgrounds and experiences helps build stronger businesses, experts say.

AN N.C. ICON How Bob Timberlake, a nice guy from Lexington, became a global phenomenon. BY CHRIS ROUSH

COVE R PH OT O CO U R T E SY O F J E N N I F E R WH I T E

60 ECONOMIC DEVELOPMENT: TRAINING THE N.C. WORKFORCE Colleges and universities team with the private sector to help expanding employers fill thousands of jobs.

66 COMMUNITY CLOSE UP: EASTERN N.C. A look at key regional trends, including efforts to bolster 13,000 K-12 teachers; drone innovation and tourism.

TURNAROUND TIME Chapel Hill leaders jockey to help revive Franklin Street, this time with a research twist. BY NOELLE HARFF

Start your day with business news from across the state, direct to your inbox.

October 2023, Vol. 43, No. 10 (ISSN 0279-4276). Business North Carolina is published monthly by Business North Carolina at 1230 West Morehead Street, Suite 308, Charlotte, NC 28208. Phone: 704-523-6987. All contents copyright © by Old North State Magazines LLC. Subscription rate: 1 year, $30. For change of address, send mailing label and allow six to eight weeks. Periodicals postage paid at Charlotte, NC, and additional offices. POSTMASTER: Send address changes to Business North Carolina, 1230 West Morehead Street, Suite 308, Charlotte, NC 28208 or email circulation@businessnc.com.

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VO L U M E 4 3 , N O. 1 0 PUBLISHER

Ben Kinney

bkinney@businessnc.com EDITOR

David Mildenberg

dmildenberg@businessnc.com MANAGING EDITOR

Kevin Ellis

kellis@businessnc.com EXECUTIVE EDITOR, DIGITAL

Chris Roush

croush@businessnc.com ASSOCIATE EDITORS

Ray Gronberg

rgronberg@businessnc.com

Cathy Martin

cmartin@businessnc.com SENIOR CONTRIBUTING EDITOR

Edward Martin

emartin@businessnc.com SPECIAL PROJECTS EDITOR

Katherine Snow Smith CONTRIBUTING WRITERS

Connie Gentry, Noelle Harff, Vanessa Infanzon, Audrey Knaack CREATIVE DIRECTOR

Peggy Knaack

pknaack@businessnc.com GRAPHIC DESIGNER

Cathy Swaney

cswaney@businessnc.com MARKETING COORDINATOR

Jennifer Ware

jware@businessnc.com

ADVERTISING SALES ACCOUNT DIRECTOR

Melanie Weaver Lynch, eastern N.C. 919-855-9380 mweaver@businessnc.com

ACCOUNT MANAGER AND AUDIENCE DEVELOPMENT SPECIALIST

Scott Leonard, western N.C. 704-996-6426 sleonard@businessnc.com

CIRCULATION: 818-286-3106 EDITORIAL: 704-523-6987 REPRINTS: circulation@businessnc.com

BUSINESSNC.COM OWNERS

Jack Andrews, Frank Daniels III, Lee Dirks, David Woronoff, in memoriam Frank Daniels Jr. PUBLISHED BY

Old North State Magazines LLC PRESIDENT

David Woronoff

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UPFRONT

David Mildenberg

SPIRITUAL SPLIT

ethodism is as much a part of North Carolina as barbecue, Bojangles' and Cheerwine, though it may not be marketed as well. Virtually every town has a Methodist church, while the big cities have many. Some have prominent center city locations; others sit in remote countryside. It’s not a business, but the Methodist impact on our state has been profound economically and socially. The mostly White United Methodist Church had nearly 1,000 churches a few years back, while the mostly Black AME Zion denomination has 562. Methodists started or have backed colleges including Duke, High Point and Methodist universities; a half-dozen senior living centers; various camps and retreat centers; and hundreds of social-service nonprofits. Methodist church membership in North Carolina once topped 1 million. It’s now at least a third smaller, still more than any peers except the Baptists. Methodists historically stay out of the news. That changed in the past year as more than 500 United Methodist churches in the state have voted to quit their denomination. This “disaffiliation” requires a twothirds plurality at each church. The breakup is symbolic of polarization affecting many parts of society, including education, politics, media and business. Continuing a tradition advanced by Martin Luther in 1517, Methodists are proving that church folks can disagree as vigorously as anyone. The Methodists’ conflict largely centers on whether to honor LGBTQ marriages and empower openly gay clergy. Current doctrine says no. Conservatives in the U.S. and Africa have blocked doctrinal changes promoted by progressives since the 1970s. United Methodist membership has soared in Africa, while declining from more than 10 million in the U.S. in the 1970s to fewer than 6 million today. The debate will continue at next April’s gathering of global United Methodists in Charlotte. As many as 7,500 people are expected to attend the 11-day meeting, which is typically held every four years. Most departing churches in North Carolina are in smaller cities, reflecting the rural-urban divide evident in national and state politics, in which rural areas are more conservative and bigger cities more liberal. While few churches in Charlotte and Raleigh are splitting off, some big

suburban churches are cutting ties. In the Charlotte metro area, six of the 10 churches with the largest Sunday worship attendance are departing, including congregations in Concord, Mooresville and Weddington. Overall, it’s likely that United Methodism will have lost more than a fifth of its North Carolina membership by Jan. 1. Many of those leaving will be part of the new Global Methodist Church denomination, which promotes a traditional view of Christian marriage as being restricted to a man and a woman. Other churches will be independent. There’s much sadness around this change. The three N.C. Methodist churches of which I have belonged embraced arch-conservatives, passionate liberals and those in between. Study and deliberation has been mostly encouraged. Splitting into separate camps is disappointing. Still, good things can emerge as churches focus on essential callings that support members, families and communities. A four-story, 72,000-square-foot building is under construction at Myers Park United Methodist Church in Charlotte, reflecting a positive vision at the biggest Methodist congregation in the state. It’s sticking with the UMC. Likewise, Charlotte’s Good Shepherd Church, a large, racially diverse parish where 99% voted to leave, started a elementary school this fall to serve southwest Mecklenburg County. It’s the first such private school initiated by a Methodist church in the county. It plans to eventually offer classes through the 12th grade, signaling a long-term view. People with good intentions will disagree on fundamental matters. This Methodist hopes that this reset renews rather than damages an essential North Carolina institution. Contact David Mildenberg at dmildenberg@businessnc.com.

A September story on UNC Charlotte coach Biff Poggi provided the incorrect name of private-equity investor Matt Magan. The September Private 125 feature misidentified two businesses. RH Barringer is a beer distributor. MegaCorp is a logistics company.

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LIST INTERVIEW

with Nido Qubein at High Point University

HOW A GOLF MECCA KEEPS ITS SHINE Pinehurst Resort President Tom Pashley joined High Point University President Nido Qubein in the Power List interview, a partnership for discussions with influential leaders. Interview videos are available at www.businessnc.com.

Tom Pashley has worked at Pinehurst Resort for 27 years and was named president in 2014. The business owned by Dallas investor Robert Dedman Jr. operates four hotels with a combined 400 rooms, nine restaurants, nine golf courses with a tenth opening in April, and employs 1,500 people. The courses cover 2,500 acres within a three-mile radius, making it one of the world’s golf meccas. Pashley has a bachelor’s degree from the University of Georgia and a Duke University MBA. This story includes excerpts from Pashley’s interview and was edited for clarity. What was your first job at Pinehurst? My first job was in a one-year management training program, where I spent anywhere from a week to a month in the different departments from golf course maintenance, to the kitchen, to night audit. I got to learn how all the pieces of the business work together. When that year was over, I began working on the 1999 U.S. Open, our first at Pinehurst. What do you consider to be a good occupancy rate? An annual occupancy rate would be about 65%. We don’t look at occupancy as much. We are driven by golf. So we pay more attention to golf rounds. It’s the total package. Revenue per occupied room. In the low season, you could be as low as 30-33% occupancy during certain times. In the high season, you’re up to 100%. What percentage of your revenues are from residency? It’s 70% or so. That includes food and beverage. The remainder of the 30% might be our membership. We have a country club that has 4,500 members. Most of them are in-town residents, people who have retired to Pinehurst.

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How many business conferences do you have in a year? We probably have 200 to 250 events. The weekends are busy, but sometimes mid-week is when you need that conference business to keep your employees working, to just drive some additional revenue. It’s also a great way to bring in people to the resort. They come for business, and they return for pleasure. Do the seasons make a difference in occupancy? Spring is our peak season. People come from all over the world in the spring and fall. How do you adjust to the occupancy changes labor-wise? You really do have to expand when you’re busy and contract when you’re not, and so we have a lot of seasonal people who take time off. Seasonal layoffs, if you will. People who enjoy taking December through February off. And then they come back. It’s always neat when they return for the season.

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It must be complicated to analyze profitability. I think the biggest change we’ve seen recently is the profitability of the leisure traveler, the golfer coming to Pinehurst for a golf trip versus a corporate meeting attendee. The golfer is much more profitable. It used to be about half and half of our business was split between corporate and leisure. Now, leisure is 70% of our business. So, we’ve seen a sea change in our margins, if you will, because they’re coming in, they’re buying retail, they’re playing golf, they’re at the bars and restaurants, whereas a meeting-goer could be in a meeting room all day. Leisure right now is really strong. Golf is booming. What did you do during COVID? Did you just not sleep at night, worry and pray a lot? A lot of that. We closed our hotels for two months. We laid off 1,200 employees at the time and the golf courses, fortunately, stayed open so our 4,500 members still had an opportunity to come out and play. We got through it, and in the Fall of 2020 when we opened back up, golf was booming. We really haven’t seen the leisure demand slow down since then. During the closing, did you worry about keeping things alive? Yes, anything that sits still for a while can age quickly. We still had a core level of staff who were around. The Carolina Hotel opened in 1901. I liken it to painting the Golden Gate Bridge. We’re constantly updating that hotel, and we never want to lose the charm. By October 2020, we were seeing exceptionally high demand from golfers, and for us the challenge was staffing a restaurant, for instance. The golf part was easy. They could go outside. But now we need to feed them. One of the most difficult positions for us to fill was the culinary positions, and so we had restaurants closed. We were not able to fulfill all the demand because restaurants were not available. We’ve brought in international visa workers who have helped keep our restaurants open, thankfully. So 2021 was a record year in terms of demand from leisure travel, but it was a tough year for us because our managers worked overtime. It was not a sustainable year. In 2022 we finally reached the point with staffing where we felt it was sustainable. International staffers seem to offer outstanding performance. Why is that? Maybe they realize they only get to have the visa for a year, and so I think they’re maximizing their year. This is a learning visa, and so they are educating themselves. I think our team is excited because they’re coming from a different country. So, they do add a different level of vibrance. How do you house them? We had to go out and acquire or rent townhouses in the area. We house and transport them. What do you look for every day? I came up through the marketing realms, so the customer is most important to me — the guest. So I start my day reading an email that recaps our guest survey data, so it’s numbers, it’s scores. It’s an electronic survey and then we extrapolate the verbatim comments are really what I like to read. About 25% of our guests will fill that out. We view that feedback as a gift. How many people do you have in marketing? We have seven. We have a person who does video only. We have

a content creator. We’ve really doubled down on social media and creating new content. We have a whole other sales team calling corporations throughout the state and around the country. What makes Pinehurst special? It’s the golf. If you were starting this resort, you’ve got to have the golf courses. You can’t just create a golf resort in any area and think people are going to come. You’ve got to have the right golf course architect, the right aesthetics. Right now, it’s kind of a trend to be remote if you’re a golfer or a destination. Almost the more remote the better, because it’s this discovery process. People want to get away and they don’t want to see planes flying overhead necessarily. How do you deal with special requests from patrons? There’s an acronym, HEAT. When a guest isn’t happy about something, you’ve got to take the heat. The H is, you’ve got to hear, and listen. You’ve got to let them express themselves. Don’t interject too quickly because you want them to fully express their frustration and their concern. The E is empathize. Now that I have heard you, I’m going to acknowledge your concerns. The A is apologize. Apologize that you’re not happy with us. You don’t want to admit fault, but I’m very sorry this is not going the way you hoped it would be. The T is take action. Solve the problem. What percent of your guests are repeat customers? About 25% of our folks return within a three-year period. How about families with children. What do you do for them? We’ve got a great pool outside at the Carolina Hotel. There’s a little putting green; but most recently we’ve added an 18-hole putting course and a par 3 course. People are going out there with one club, they’re playing barefoot, we play music on our little par 3 course, and so Pinehurst has become much more welcoming to families. What is your tipping policy? We have a 10% service charge, a resort fee. And if you go into one of our dining outlets and you have a meal, we have an automatic 18% gratuity that’s added. The server will often be asked how much of that do you get? The majority goes to the server. What we don’t want is for people to be stressed about it. It needs to be enough that we feel good about our 18%. Is the guy who buys three expensive bottles of wine charged 18%? We do. We love him. What’s next for Pinehurst? We have the U.S. Open returning in June of ’24. The USGA named Pinehurst an anchor site for the U.S. Open, so it’s coming all the way through 2047. Four future U.S. Opens. And the USGA is building its secondary headquarters, Golf House Pinehurst, right there in Pinehurst. It will open in December. So there’s a tremendous amount of innovation and change coming to Pinehurst. We’re not changing all the things that people love, the rocking chairs, the piano music. But we’re adding a lot. If you haven’t been to Pinehurst in the last five years, you’d be amazed at how much it’s changed. ■ O C T O B E R

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DR. BILL MILNER A Texan-born dentist devotes his life to providing traveling dental care in central North Carolina.

r. Bill Milner knew as a teenager volunteering at a Fort Worth, Texas, hospital that he wanted to pursue dentistry. The work of oral surgeons fascinated him, leading to biology and dentistry degrees at Baylor University. Most of his dental school classmates headed to private practice after graduation in 1975, but Milner saw gaps in care within communities. More people with disabilities were being dismissed from institutions, and lots of stigmas existed for elderly patients and those with intellectual and developmental disabilities and HIV. The newly trained dentist was impressed by barefoot doctors in China who traveled from village to village and Dr. Paul Farmer’s work among Haiti’s impoverished population. He and his wife, Susan Milner, moved to Asheboro in 1975 for a staff dentist position with the state of North Carolina. He was an itinerant dentist for five years, moving among public schools, with antiquated equipment and no X-rays. For the next 20 years, he worked four days a week as the director of Randolph County’s dental program. On Fridays, Milner and his hygienist, Betsy White, carried portable equipment in the trunk of his Ford Taurus and provided dental care for residents at six facilities in Guilford and Randolph counties through their own private practice. In 2000, Milner and White founded Access Dental Care as a nonprofit bringing comprehensive dental care to people with intellectual and developmental disabilities and seniors living in 25 group homes and nursing centers. Cone Health Foundation in

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Greensboro gave $365,000 for start-up costs, enough to purchase a truck and equipment and operate for six months. At each facility, the physician-hygienist team unloads the equipment and works in a familiar environment to the patient, such as an activity room. In 2022, Access Dental Care’s annual budget reached $3.3 million from grants for capital expenses, insurance programs, Medicaid reimbursement, private pay and fees from facilities. The group now serves 160 facilities in 60 counties with five teams each seeing 15 to 18 patients a day, or more than 6,200 in 2022. The plan is to increase it to 10 teams and cover the entire state in the next five years. States are required to provide dental services for people under 21 with Medicaid insurance, but there are no minimum requirements for adult coverage under the government program. About a third of adults ages 19-64 do not have dental benefits, according to the American Dental Association. Dr. Milner has a degree in public health from UNC’s Gillings School of Global Public Health. He received the American Dental Association Humanitarian Award this year, and received the North Carolina Dental Society Distinguished Service Scroll Award in 2021. Milner, 73, shows no signs of stopping. He gardens, travels, sculpts and enjoys photography. He and Susan, married 49 years, have two grandchildren and one son, Dr. Joe Milner, a family medicine physician with Atrium Health in Monroe.

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Comments are edited for length and clarity. Everyone in dental school thought I was nuts. I was looking at health systems and trying to get a bigger perspective. I walked into my first nursing home in 1976, here in Asheboro. There weren’t any training programs in North Carolina for dealing with populations who couldn’t access a regular private practitioners’ office. Four days a week I chased kids at the (Randolph County) health department and on Fridays, Betsy (White) and I would take care of five nursing homes and one day program. I was getting my feet wet before starting Access Dental Care. In 1984, I’d written a paper that said we need to establish a statewide special care program. In 1997, Dr. Ford Grant and I wrote a grant and the Duke Endowment funded Carolinas Mobile Dentistry under Carolinas Medical Center (now Atrium Health.) That was really the first program in the state to incorporate the nonprofit model.

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When we started Access Dental Care, 80% of our folks were Medicaid. Reimbursement at the time we started was about 40 cents on the dollar. (It’s now 42 cents. In 2023, 72% of the group’s patients have Medicaid insurance). Obviously, there wasn’t a profit motive. The only way I figured I could make it work was to start a nonprofit and depend on very generous health-leaning foundations to supply the capital expenses — the truck, the dental equipment, anything else we needed to get the program started.

We worked six days a week the first two years. It doesn’t make any difference whether it’s profit or nonprofit. We had to make a profit to stay alive. We had to charge every facility a retainer fee. We are a fee-for-service business. There is a very small number of people who want to do this kind of work. We require dentists to have worked in a hospital general practice residency program for a year. Our dentists also go into the operating room because some patients can’t be treated in a regular dental chair. You can’t do this job without specialty training. It takes us six months to a year to train somebody who has completed a residency program. We’ve reached that tipping point — training needs to be financed differently and folks need to be trained. We never have to advertise (our services). It’s all word of mouth. People have heard about us for 30 years. It’s taken a community to do what we’ve done. People have been very kind to recognize what we have done. The American Dental Association Humanitarian Award has really put a spotlight on North Carolina, on the concept of care for this group, and the support that has been provided by special care organizations and practitioners in the state. We will continue to lead with special care programming. Down the road, there will be plenty of people who will want to continue the leadership [of Access Dental Care]. I am still able to do clinical work. For right now, I am just having a ball. ■

Dr. Bill Milner has provided dental care for needy North Carolinians for 48 years.

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INVESTING IN THE FUTURE OF AFFORDABLE HOUSING IN N.C. This is the twenty-eighth in a series of informative monthly articles for North Carolina businesses from PNC in collaboration with BUSINESS NORTH CAROLINA magazine.

s North Carolina continues to attract tremendous business growth and recruit the workforce necessary to deliver on the state’s tremendous potential, rising costs and increased demand for housing are exerting significant pressure on the supply of affordable rental housing in communities throughout the region. While the affordable housing challenge is not unique to North Carolina, it represents a significant area of concern – and not only for households dependent on access to reasonably priced housing, but to the economy at large, says Venus Myles, senior vice president and PNC Community Development Banking market manager for the Carolinas. Myles, who leads a North Carolina-based team that is laser-focused on helping improve the quality of life in lowand moderate-income neighborhoods, points to research from the National Low Income Housing Coalition that calculates the shortage of affordable housing as costing the U.S. economy approximately $2 trillion per year in lower wages and productivity. That reality alone, she says, brings validation to the multi-stakeholder efforts underway to help improve access to affordable housing. “All of us at PNC recognize the imperative to bolster the supply of affordable housing throughout the country and right here in North Carolina,” says Myles. “And as a national main street bank, we are uniquely positioned to help support the various pathways to build and preserve affordable housing in our communities.” In North Carolina, PNC Community Development Venus Myles Banking’s investments and initiatives to enhance the supply of affordable housing vary by community, based on the housing infrastructure and needs unique to local populations – from preserving Naturally Occurring Affordable Housing (NOAH) in Charlotte to building new supportive housing units in Rocky Mount. 10

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PRESERVING NOAH IN MECKLENBURG COUNTY A relatively new strategy to bolster the supply of affordable housing in Mecklenburg County, NOAH preservation represents a less expensive and faster alternative to building new construction, particularly in areas with existing housing infrastructure, and also mitigates the loss of affordable housing units and displacement of low- and moderate-income residents, says Myles. To help activate this strategy, PNC Bank recently invested $8 million in Housing Impact Fund II (HIF II), a $66.8 million social impact equity fund raised to preserve NOAH in Mecklenburg County. Managed by Erskine Bowles and Nelson Schwab and operated in partnership with Ascent Housing, HIF II acquires, renovates and sets long-term affordability covenants on large-scale apartment communities vulnerable to gentrification. Following on the heels of the success of the initial Housing Impact Fund, which preserved over 800 apartments in opportunity-rich areas of Charlotte housing, HIF II is setting aside 30% of its portfolio for households earning less than 30% of area median income (AMI), 50% of units to households earning less than 60% AMI and 20% of units to households earning less than 80% AMI. “Housing Impact Fund’s NOAH preservation strategy is two-fold: Protecting existing residents from rising rents and creating new opportunities for low- and moderate-income households when units become available through natural turnover,” says Mark Ethridge, principal at Ascent Housing. With the support of PNC and other local investors, HIF II

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recently completed its first investment: The acquisition of Charlotte Woods, a 266-unit apartment property located near Myers Park and Park Road Shopping Center. Current residents of Charlotte Woods will be protected from displacement through rent stabilization, and the adoption of long-term covenants will help ensure housing remains affordable for households of various income levels over time. “We’re grateful for PNC Bank’s investment in HIF II and for its commitment to be part of the solution to Mecklenburg County’s affordable housing challenge,” says Ethridge. CONTRIBUTING TO THE DEVELOPMENT OF SUPPORTIVE HOUSING IN ROCKY MOUNT In August, PNC and community stakeholders joined Rocky Mount Housing Authority (RMHA) and RMHA’s development arm, South Eastern North Carolina Community Development Corporation (SENCCDC), to celebrate the grand opening of Vance Street Homes, an affordable housing development for

which PNC Community Development Banking helped finance construction. Consisting of eight new single-family homes designed for residents with disabilities and low- and moderate-income families who qualify for supportive housing, the Vance Street Homes development was built on land donated to SENCCDC by Edgecombe County – and made possible by a multitude of agencies, funders and business leaders. PNC’s support for Vance Street Homes builds upon its significant investments and engagement in Rocky Mount, including previous collaboration with SENCCDC and its development of supportive housing. “Delivering on the region’s housing challenge requires collaboration and a shared vision among public and private sectors, and Vance Street Homes is a classic example of what that collaboration looks like in practice,” says Myles. “All of us at PNC are confident this development will create positive and lasting impact, and we are grateful to be part of this important effort.”

For more information about PNC Community Development Banking, visit www.pnc.com/communitydevelopmentbanking.

REGIONAL PRESIDENTS: Weston Andress, Western Carolinas: (704) 643-5581 Jim Hansen, Eastern Carolinas: (919) 835-0135 These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions. PNC and PNC Bank are registered marks of The PNC Financial Services Group, Inc. (“PNC”). Bank deposit, treasury management and lending products and services, foreign exchange and derivative products (including commodity derivatives), bond accounting and safekeeping services, escrow services, and investment and wealth management and fiduciary services are provided by PNC Bank, National Association (“PNC Bank”), a wholly owned subsidiary of PNC and Member FDIC. Lending, leasing and equity products and services, as well as certain other banking products and services, require credit approval. ©2023 The PNC Financial Services Group, Inc. All rights reserved.

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NCTREND ››› Entrepreneurship

PERPETUAL CHRISTMAS

A Durham startup promotes sustainability, sharing and fun with regular toy deliveries.

raditional toy retailers depend on October to December as their make-or-break holiday selling season. For customers of Durham-based Tiny Earth Toys, it’s like Santa shows up every two months with a delivery of age-appropriate playthings, through the startup’s subscription service. Founder and CEO Rachael Classi launched this unconventional purveyor of fun in early 2021. It now employs 16, has annual revenue topping $1 million, is nearing profitability and has backing from a notable N.C. investment group. Sales continue to climb, even in summer months. Tiny Earth has several thousand subscribers, who live in every state in the continental U.S., with a 92% monthly retention rate. Toys are delivered every two months: five toys cost $35 per month; eight for $48; or 10 for $65. Roughly 60% of customers have a child under the age of 2, which should lead to a lengthy relationship with most customers. “Traditionally, July is slow for the juvenile industry, but we hit 110% of our sales goal when we were only 77% of the way through the month,” says Classi. It was a record sales month for Tiny Earth with about Tiny Earth Toys Founder and CEO 1,500 packages shipped. Rachael Classi. Classi is a Spokane, 12

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Washington, native who came to North Carolina to attend Duke University’s MBA program in 2012. She envisioned the toy subscription service concept in the fall of 2020. The pandemic had prompted her to leave her job as vice president of strategy and marketing at Teamworks, a Durhambased digital software company serving athletic organizations. She wanted to stay home and care for her daughters Donna and Lucia, then 3 years old and almost 1, respectively. She encountered problems faced by many families with children under age 6: a never-ending cycle of toys becoming obsolete as kids progress developmentally. Her home became a repository of plastic clutter. “Since we were no longer in classrooms or a daycare center, I was spending a lot of money to create an enriching environment in our home, but it was constantly a mess, and there was a lot of waste coming in and out,” she says. Ever a problem-solver, Classi started a toy exchange with other neighborhood families. One parent offered her money to buy more toys and create an ongoing community sharing of resources. “Somebody has got to be doing this already,” Classi thought. Nobody was. So she and her husband, Peter, dipped into savings to buy inventory in September 2020 and create a website. (He’s an executive at United Therapeutics in Durham.) Ten initial customers signed up as she tested the idea, starting with about 20 different toys. After raising about $275,000 from several angel investors, she opened the website to the public. Now, Tiny Earth offers about 400 different options and has tens of thousands of units stored at a 10,000-square-foot warehouse in Durham. By August, they had raised more than $3.3 million, led by the Bull City Venture Partners investor group in Durham. “We see 1,500 to 1,700 companies a year and pick two to four,”

PHOTOS COURTESY OF TINY EARTH TOYS

By Connie Gentry

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CEO Classi and Chief Operating Officer Catherine Bhattachar, third from left, are Duke MBA graduates.

PHOTOS COURTESY OF TINY EARTH TOYS

says Jason Caplain, Bull City Venture Partners co-founder and general partner. “We put a very heavy weighting on the person and the team running a company, and Rachael is one of our best founders at being able to hit all of the goals that she lays out — revenue, customer growth and hitting all the numbers that she puts forth to the board, which is amazing.” Caplain, who has three children, relates to Tiny Earth’s mission. “She’s solving a big problem and customers are really happy, plus it’s fun to work for a toy company. But this is one of the most complex businesses we’ve invested in,” he adds, referencing the unique logistics challenges. Tiny Earth is one of Bull City’s bigger investments and its fastestgrowing company, based on revenue growth. (Caplain won’t disclose how the fund invested.) Ironically, Classi initially declined his offer to invest. “We met for coffee and she walked me through the problem she was solving,” he says. “She had raised a small amount of capital — all of the founders at Teamworks where she worked before wrote checks to her — and I said we might want to write a check, too, but she had just closed up [fundraising].”

“We’re able to cultivate a relationship with the families over the course of six years,” Classi says. She’s studying how to support families after children age out of the existing products. Recently, the company launched a website tool that asks about a child’s development and recommends products tailored to that child. “Every child develops differently, no two 2-year-olds are doing the same thing or are interested in the same things, so this recommendation engine helps with the alignment of interest and readiness,” Classi says. While Tiny Earth now handles inventory and shipping in Durham, Classi is considering adding distribution centers to cut travel time for products. She’s also looking at different customer delivery options in major customer hubs such as Durham, New York City and Boston. As she grows her own North Pole, Classi is evaluating a future. “The one place that will always be a challenge is how do we scale our operations? How do we go from the 10,000-square-foot warehouse we’re in now to a 100,000-square-foot facility?” ■

SAFE AND STURDY Classi says toys have to be durable for the rental system to work, able to withstand shipping back and forth between families and the company. “As a parent, something that really mattered to me was the materials used in the toys,” Classi says. Her biggest supplier among about 20 companies is PlanToys, a family owned, 40-year-old business based in Thailand. PlanToys makes its toys from wood reclaimed from rubber trees and uses non-formaldehyde glue, organic color pigment and waterbased dyes. It’s all safer than lead-based paint or chemical dyes. Most of Tiny Earth’s toys are made from natural wooden materials, which Classi says are more sustainable and more attractive in homes. No plastic is used, enabling the packaging to be recycled. The same box is used for shipping and returning used toys, which limits waste. When toys arrive back in Durham, they are sanitized, inspected to ensure there are no loose parts or damage and packaged for the next family. O C T O B E R

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NCTREND ››› Sports

ICY HOT

How Rod Brind’Amour has led a resurgent hockey powerhouse.

By Chris Roush

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As a player, did you watch the different motivational strategies of coaches? Obviously, you pay attention to your coach and whatever they’re asking you to do, you do. In the back of your mind, you don’t question it. When I was coming in, you didn’t buck the system. It was, “This was the way we’re doing it.” It changed later in my career. and you could go up to a coach and say, “How about we try it this way?” Now the players are much more in tune and not afraid to come up and tell you there’s a different way of doing things. What attracted you to coaching? I didn’t really want to be a coach. When I finished playing, I wanted to get into management and help put a team together. I was tired of the schedule, and coaching is the exact same thing. A year out of playing, I was in management but not really doing much, and they asked me to come back and be a part-time coach, which was really good. Unless you’re all in, you’re not really impacting the team. I think it’s what you miss when you’re not playing. The closest thing is being a coach. You’re in it for every play, just like the players. There’s nothing else that gets close. What did you learn as an assistant coach? I learned watching guys do it. There are different styles and definitely different ways of doing it. There’s not one way of having it done. I watched [former Hurricanes coach] Paul Maurice and said I couldn’t do it like that. Paul didn’t play, so he didn’t have a feel for the game. But then [former Hurricanes coach] Kirk Muller came in, and he was a former player and did it much differently than Paul. I took the good from each guy. But at the end of the day you have to be yourself.

PHOTOS COURTESY OF THE HURRICANES

fter winning the Stanley Cup in 2006, the Carolina Hurricanes made the playoffs twice over the next dozen years. Attendance sagged at Raleigh’s PNC Arena, ranking second-to-last in the NHL for two years, and rumors floated that the team might leave town. Then, in 2018, the Hurricanes promoted former star and assistant coach Rod Brind’Amour to lead the team. In the five following years, the Hurricanes have appeared in the National Hockey League playoffs every year, including two trips to the conference finals. He was named the NHL’s top coach in 2021. This past season, the Hurricanes averaged 19,526 fans per game, second behind the Montreal Canadiens, and a 47% increase from the year before Brind’Amour became coach. Brind’Amour played 20 seasons for the St. Louis Blues, Philadelphia Flyers and the Hurricanes. He joined the Raleigh team in 1999 and captained the 2006 champions. He finished his career with 452 goals and 732 assists. He was 39 in his last season. Rod Brind’Amour Leadership trainer Travis Vendeusen lauds Brind’Amour’s management style, noting he “prioritizes positivity and a growth mindset. He is always looking for ways to improve himself and his team and encourages his players to do the same.” In a study posted on LinkedIn, Vendeusen notes Brind’Amour’s communication skills and his ability to think positively when facing adversity. Brind’Amour, 53, spoke with Business North Carolina about his evolution from player to coach and his management style. The following has been lightly edited for clarity. C A R O L I N A

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What are you focusing on before a game?

What do you defer to the team captains?

The routine is you’re always preparing. As soon as a game is over, you’re looking at what you need to improve and you’re obviously looking at the next team you’re playing and making sure you’re prepared. You’re mostly focused on your players as much as possible and trying to get better each day. That’s really the No. 1 thing.

There’s a lot of decisions that have to be made that people don’t think about. Like travel times after practice when we go to a new city. Do we want to go home after practice and get a late flight? Do we stay overnight after a game? We ask captains what they think best. If we’ve been on the road for 10 days, they may want to get home and be with their families. On days off, we will come in, and I will ask the captains if they need a day or two. Sometimes they know better than you do. And if you have an honest group, they will let you know. I trust them.

What are some of your leadership tactics? Every day there’s stuff going on. We try to approach every day and get the most out of it and not worry about what’s going on. That’s really the secret for a long season. You have 82 games just to get to the playoffs. You can’t lose sight of the fact that you might not make the playoffs. We look for ways to keep everybody focused. You’re seeing things over and over and trying to keep the guys engaged.

PHOTOS COURTESY OF THE HURRICANES

What’s the most difficult thing about being a hockey coach? Managing your own expectations and the stress. You’re expected to win every night. Even when you play great, there’s a lot of randomness, and you sometimes don’t win. We focus all of our attention on game day. Managing that frustration and stress on the whole and not letting it get to you too much, I think that’s the toughest thing. Do you set goals for the team? We don’t set individual goals like I need you to score this amount of goals. It’s more focused on being consistent in trying to get better every day. It’s kind of cliche, but it’s giving our best effort every night. It doesn’t always show up on the score sheet. We have a major goal as a team. Our goal is to be the best team in the world. We don’t put a bunch of other goals out there.

You’re known as an intense leader. Do you think that rubs off on the team? You hope as a coach that whatever you’re preaching, or whatever your persona is, you hope that they take on some of that, if not a lot of that. That’s why you put your system into play and your identity. You certainly hope so. How do you work with the general manager and owner? Majority owner Tom Dundon and Don Waddell, the general manager, call me every day and talk about what we’re doing and my thoughts. So I am part of the management group. That’s a unique thing. Whatever is on the table, I am definitely involved. I’m pretty fortunate that way. Tom is the hardest-working owner in sports. There is no other person. He’s also one of the smartest men in sports. He’s constantly questioning everything you do so he can learn too. ■ O C T O B E R

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WHOSE BUSINESS IS IT ANYWAY? A Case Study in Divorce and the Family Business.

By Paige Inman, Al Clyburn, and Richard Crow

eet the entirely fictional Rookie Family. Led by parents and business founders Cheryl and Wayne Rookie, Rookie Construction is a North Carolina family business that is important to the family's sense of identity, financial security, and workplace environment. The Rookie children, Joel and Tiffany, grew up in the family business. They were given stock in the company when they graduated from high school. Neither gift included a shareholder agreement. In 2010, Joel married Natalie without a premarital agreement. Joel and Natalie have two children. During the marriage, Joel worked at Rookie’s Construction as a project manager. In 2015, Natalie filed for divorce and asserted a claim to distribute the couple's marital property.

WHAT WILL HAPPEN TO OUR COMPANY? Ward and Smith family law attorneys Al Clyburn and Paige Inman are certified by the North Carolina State Bar as specialists in the area of Family Law. They explain that the property distribution claim filed by Natalie may expose the family business to unnecessary risk and expense. Clyburn states, “There is a risk that the Court will find that Joel's ownership interest in the business experienced active appreciation during the marriage and that Joel should be required to pay Natalie for her share of that increase in value. In an action to distribute marital assets and debts, the court is required to identify, value, and 16

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distribute all marital assets. There is a presumption that the net fair market value of the assets will be divided equally.” Inman further explains, “Marital property includes the 'active' appreciation of a separate asset. Therefore, any increase in value that can be attributed to Joel's active efforts will be subject to distribution by the Court. This could require a significant distributive award from Joel to Natalie if there are insufficient other marital assets to offset Natalie's share of the active appreciation which occurred during the marriage.” “Additionally,” Clyburn says, “the cost of litigating valuation can be significant. This case will require an expert to value Joel's interest on the date of marriage and on the date of separation. The expert may also be required to develop an opinion as to whether the increase in value is the result of active as opposed to passive appreciation. Expert fees and the cost to litigate the issue can add up quickly.”

WOULD A PREMARITAL AGREEMENT HAVE HELPED? Inman and Clyburn say that having a premarital agreement can help to avoid these risks and safeguard a business for all owners. Premarital agreements can be limited in scope to address specific items of property, i.e.: - An agreement that Joel's interest in the business cannot be distributed to his spouse Natalie; or - An agreement that defines both active and passive appreciation of the business as Joel's separate property to ensure that Natalie will not share in the value of the appreciation. SPONSORED SECTION

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Limiting the transfer of stock is an additional advantageous provision in shareholder agreements. Crow says, “Most of my clients love their in-laws and their spouses, but they don’t want to be in business with them. We cover that by including a clause allowing a shareholder or the corporation to buy stock from a shareholder upon certain specified events, such as an involuntary transfer resulting from an equitable distribution.”

ROOKIE MISTAKES The Ward and Smith team agrees that the issues confronting our fictional Rookie family could have been alleviated with smart planning. When representing a family business, it is imperative for the family's business attorney to work with a family law attorney to minimize risk in the event of an unexpected divorce. Crow explains, “If the owners of a family business want to avoid these issues, they must consider protecting the business for the long haul. That means connecting with counsel who will identify current needs, like shareholder agreements in connection with gifts to children, as well as future concerns like prenuptial agreements and buy-back provisions.” Inman agrees. “At Ward and Smith, we help closely-held businesses avoid rookie mistakes.” ■ Inman states, “Premarital agreements do not have to be the scary, argument-causing document that causes disputes between potential spouses. Instead, they can be limited in nature to address specific items of property and provide peace of mind that a well-established family business is not subjected to certain risks as a result of marriage.”

WHY DO I NEED A SHAREHOLDER AGREEMENT? When Joel and Tiffany received their stock upon high school graduation, neither signed a shareholder agreement. That mistake may cost the Rookie family in years to come. Ward and Smith business attorney Richard Crow explains, “Including a clause within a shareholder agreement that requires a premarital agreement could be an effective tactic for alleviating a spouse's concerns over signing a premarital agreement. It can also add protection for the family members who are acquiring ownership interests as it ensures that the business will not be tied up in divorce-related litigation as well.” Crow states, “In general, it is a good idea to work out the details and protective provisions within a shareholder agreement before gifting the stock, as doing so makes things easier in a variety of ways.” Agreeing to the provisions on the front end is more cost-effective and creates less internal friction than attempting to negotiate and implement a shareholder agreement after shares are transferred.

Paige Inman North Carolina State Bar Board Certified Family Law Attorney peinman@wardandsmith.com

Al Clyburn North Carolina State Bar Board Certified Family Law Attorney jaclyburn@wardandsmith.com

Richard Crow Business Attorney rjcrow@wardandsmith.com

wardandsmith.com

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NCTREND ››› Manufacturing

PAPERTOWN BLUES

Canton looks for a new role after the shuttering of its landmark.

By Edward Martin

he silence is back, this time for good. A few years ago, on a summer night, Lashine Reynolds stood on the deck of her parents’ home as rain from a tropical storm swelled the Pigeon River. The house is next door to the billowing smokestacks, silos and rail sidings of Canton’s gargantuan paper mill. In the flooded mill, as water reached half up the walls of the storeroom where Reynolds’ father worked, supervisors frantically killed the electricity. Outside, scores of brilliant floodlights flicked off. The industrial rumble that filled this valley so long that residents no longer noticed it was stilled. “Suddenly, everything was black,” says Reynolds, born 54 years ago on the day her father, now retired, was hired by the mill. “I stood there on the deck thinking, ‘This just isn’t right at all. Not at all. Everything is just too quiet.’” Now, North Carolina manufacturing experts, historians, Reynolds and others who’ve lived their lives here read more than lost jobs and death of a local industry into the quiet that descended on Canton in May when the Pactiv Evergreen paper mill closed, this time permanently. About 1,050 jobs with annual salaries averaging more than $80,000 were lost, along with an estimated $2 million in annual local tax and utility revenue. Canton’s issues prompted the state and nonprofits to offer help. Asheville-based Dogwood Health Trust, created from the $1.5 billion sale of Mission Health system in 2019, is giving the United Way of Highwood County $1 million for an emergency fund to help mill families. About 150 miles to the east, the experience of Kannapolis gives Canton hope that dead mill towns can revive. Cannon Mills and the town’s streets, rental houses, water, schools, police force and a YMCA were all owned by James Cannon, who founded the mill in 1905. Residents voted to incorporate in 1984, but 13 years later, Cannon Mills’ successor Pillowtex shut down, throwing 4,390 out of work. 18

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Kannapolis has bounced back strongly, benefitting from its proximity to Charlotte. In 2005, it landed the public-private N.C. Research Campus, developed by California investor David Murdock and backed by $23 million in annual lease payments from UNC System campuses. It’s an inspiration for dead mill towns. Zeb Smathers, 40, graduated from high school in Canton in 2001, then earned degrees from Duke University and UNC Chapel Hill. He rejoined his family’s law practice in downtown Canton, and was elected to the council in 2013 and as mayor since 2017. “The mill was our heart, literally, physically, and in our souls,” says Smathers. “We have to rebuild the mindset that even though we’re a mill town, we deserve everything that everybody else has.” Gary Salamido, president of the N.C. Chamber businesspromotion group, cites Marion as a possible role model for Zeb Smathers Canton. More than 3,000 Baxter Healthcare employees make intravenous bags and other healthcare equipment in the McDowell County seat. “Canton’s got work to do on the environment, cleaning the place up, but when that’s done, it’s going to be very appealing to somebody,” he says. “It’s got the workforce, the beauty of the mountains, access to markets.” Mill towns dominated the state economically and politically from the post-Civil War era until the late 20th century. Then, in the 1980s and 1990s, globalization, new technology, politics and other societal changes redefined their sense of community. North Carolina still retains 550,000 manufacturing jobs with

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the sector having a larger impact than in most U.S. states. But it’s much more technical and reliant on skilled labor. The state’s prize new factory is Toyota Motor’s $4 billion electric-vehicle battery plant rising from the flat pinelands of Liberty, 20 miles south of Greensboro. It is expected to employ 2,500 in 2025, from a vast swatch of central North Carolina and southern Virginia.

Canton’s Imperial Hotel is a downtown landmark.

STARTING OVER Canton was a holdout among dozens of small mill towns and villages that thrived around a single industry. Robert Ferguson grew up in Eden, a Rockingham County town that once had 3,000 workers at a Fieldcrest Cannon mill. “It’s a good example of a dead mill town,” says the professor at Western Carolina University in Cullowhee. The mill shut down after its parent company went bankrupt in 2002. Today, Eden has about 15,000 residents, or 600 fewer than in 1960. North Carolina’s population has more than doubled in the period, to 10.6 million in 2022. Canton, population about 4,000, is in a valley carved over millennia by the Pigeon River through the Haywood County mountains. “We’re the last blue-collar town in North Carolina,” Smathers says. At its end, the mill made paper cartons and boxes. Its key customers included Starbucks. At its peak, more than 10,000 worked at the mill, support industries and cutting pulpwood in the forests within a 100-mile radius. Officials of Lake Forest, Illinois-based Pactiv Evergreen declined interview requests. The $6 billion revenue company operates more than 50 plants. Its federal filings blame the closing on plunging demand for liquid containers such as milk cartons, supplanted by plastic. The company is writing off $300 million related to the closing. Smathers and others here say Evergreen abandoned hundreds of workers and their families with little or no health insurance. Dismissed employees, including those at a smaller mill in Waynesville that remains open, are getting a week of pay for every year of service. Some like Justin Medford seem lost, with limited severance and other benefits. “I’m starting over again,” says the 30-year company veteran. The mill’s land site itself is a so-called brownfield, contaminated by more than a century of ground toxins that will cost millions to clean up before it can be repurposed. Pollution of the Pigeon had long been an issue, triggering U.S. Environmental Protection Agency intervention and prompting neighboring Tennessee to sue.

The mill pumped $50 million into air and water pollution control in 2015, with much of the cost offset by state and federal aid. N.C. Department of Environmental Quality Secretary Elizabeth Biser says remediation efforts are ongoing, and Evergreen is still “responsible for closure.” Adds Anna Alsobrook, who monitors rivers for Mountain True, an environmental group, Western North Carolina rivers like the Pigeon contain phthalates, so-called forever chemicals that are “harmful to human health and the environment.” Town officials are skeptical that Evergreen will come through, leaving others stuck with the clean-up costs. The silence of the mill, however, echoes far beyond local hard feelings. Last fall, before the closing, its smokestacks were like a fumarole in a sea of autumn reds and yellows. Minus the big mill, Haywood County’s forested peaks and Canton’s meandering river would have resembled the landscape pioneers found. “The area was pretty much subsistence farming,” says Dan Pierce, who grew up in the region and is now a history professor at UNC Asheville. Canton’s YMCA “was much nicer than Asheville’s, and it was among a lot of things provided by Champion. There was always the sulfur smell, of course, but people said it was just the smell of money. “Champion Paper was a chance for a lot of people in western North Carolina to move to a mill town where there were opportunities for schools for their kids, church and social life, movies.” In 1999, the United Steelworkers union bought the mill from Champion for $200 million and renamed it Blue Ridge Paper. Seven years later, New Zealand billionaire Graeme Hart’s Evergreen Packaging took over, then in 2020 merged with Pactiv. Hart still controls the business, a publicly traded company that has consistently notched losses and operated with heavy debt loads. Its customers have included Walmart, Burger King, and Whole Foods. The mill’s loss stings, but Canton’s mayor remains hopeful. “After this place is cleaned up, we’ll be an economic super site,” Smathers says. “We have gas, rail, and the interstate between here and Asheville.” That proximity, speculates Salamido and others, could find Canton a bustling bedroom community to Asheville. “We can create a diverse economy,” Smathers adds, possibly landing light industry to replace the paper plant, and mixed-use housing, retail and outdoor recreation uses. “There’s still something to be said for making things.” ■

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NCTREND ››› Beverages

FRESH APPROACH

A Cary company says tasty kombucha isn’t an oxymoron.

fter a decade in the fragmented but fast-growing kombucha market, Cary-based Tribucha believes it has found the formula for success. The company was the first in the industry to use cans and six-packs, ahead of brands owned by Coca-Cola and Pepsi, and its fermentation process creates flavors that are more palatable than its vinegar-tasting counterparts. That’s attracted investors, and retailers such as Harris Teeter, Whole Foods and Publix. “This was the first kombucha I ever tried that actually tasted good and I wanted to drink it,” says David Gardner of Cary’s Cofounders Capital, an investor in Tribucha. “I was also impressed with the passion of the founders and the quality of the board members,” Adrian Larrea including Jim Geikie, former CEO of Burt’s Bees, and Mike Hockenberry, a former Target vice president who is now a partner in Durham-based Disruptive Enterprises. Tribucha is about to sign a marketing deal with a rock band to promote its drinks, and Publix is adding it to 500 stores in the Southeast in October. The company has raised another $1 million 20

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from investors to use in sales and marketing efforts and says it will become profitable in 2024 on $4.5 million in revenue. Sales this year are projected to be $2.4 million. The company is betting on the increased popularity of health drinks. Polaris Market Research projects the $2.6 billion kombucha market to top $11 billion in annual sales by the end of the decade. In 2019, Coca-Cola invested in Los Angeles-based HealthAde and rolled out the Honest kombucha brand. PepsiCo owns KeVita, and Molson Coors acquired Clearly Kombucha in 2018. And while Tribucha is in the top 25 kombucha brands, there are hundreds of different companies in the industry. Harris Teeter locations in North Carolina are also stocking Lenny Boy, Synergy and Brew Dr. Tribucha founders Adrian Amo York Larrea and Amo York grew up in Cary and started the company a decade ago. Larrea’s main interest was creating an organic drink that is healthy for consumers and tastes good. Fermented kombucha teas have been around for centuries and are credited with digestive health benefits. “Our goal was to make it light, bright and drinkable,” says Larrea. “We’ve done things the hard way for a long time, but it’s what has gotten

PHOTOS COURTESY OF TRIBUCHA

By Chris Roush

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PHOTOS COURTESY OF TRIBUCHA

us to the level we are today.” Its kombucha flavors include The Main Squeeze, a drink with lemons and berries, and Controlled Burn, which has ginger, cayenne and turmeric. By 2017, Tribucha was in 150 bars, restaurants and cafes. The next year, Lowe’s and Ingles grocery chains added the drinks. Whole Foods and Harris Teeter were added in 2020. Tribucha also rolled out another drink called Super B in 2021 that has no calories, no sugar and is intended for hydration. All of the drinks are sold two for $5, or a six-pack for $15. Larrea and York, who is the head brewmaster, knew they needed help to grow Tribucha, which previously raised $1.7 million from investors. A year ago, the company hired Mark Mullins as chief executive. “It was getting super complicated,” says Larrea. “I raised my hand to the board and said, ‘I don’t have enough experience and can’t catch up fast enough. I need someone with beverage experience.’” Mullins was a cofounder of Social House Vodka in Raleigh and had been vice president of sales of Mati Energy, a Durham-based company that has since closed. “I love the beverage space, as complicated and as complex as it is,” he says. “But my first answer was no [because] I don’t drink kombucha.” He changed his mind once he tasted the Tribucha flavors. “I have dealt with founders before,” adds Mullins, sitting at a picnic table outside Tribucha’s building. “They don’t want to part with their babies. If I didn’t think I couldn’t come in and help, I wouldn’t have joined.” Mullins now hopes that the Publix distribution deal, a Super B 2.0, and money from investors to launch a marketing campaign will take Tribucha to the next level. “There was some cleaning up to do,” he says. “Now, we’re going to take some swings. You have to do that in the beverage business.” ■ O C T O B E R

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NCTREND ››› Statewide

CHARLOTTE CHARLOTTE

Albemarle Corp., the world’s largest lithium producer, aims to close its buyout of Australian rival Liontown Resources by mid-2024. Looking to lock down additional supplies of the key electric vehicle battery metal, Albemarle earlier made a nonbinding $4.3 billion bid for Liontown.

Truist plans “sizable reductions in force” over the next six months and is simplifying its senior management team, appointing three leaders to head consumer, wholesale and insurance units. The moves are part of an effort to save $750 million in gross costs over 12 to 18 months.

Duke Energy is launching a flat-rate pilot with carmakers General Motors, Ford and BMW. The EV Complete Home Charging Plan will allow customers in North Carolina to use up to 800 kilowatt hours per month to charge an electric vehicle at home for a fixed monthly fee.

Dallas-based MCR bought the Canopy by Hilton, a five-story, 150-room hotel built in 2020, at a 20% discount to its estimated replacement cost. The SouthPark property has a tax value of $26.1 million. The purchase price was not disclosed. MCR says it is the country’s third-largest hotel owner-operator with 150 hotels in 37 states, including five others in North Carolina. 22

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Margaret and Smoky Bissell are starting the Bissell Ballantyne Legacy Foundation to continue the Bissell family’s commitment to Charlotte area nonprofits. Developer Howard “Smoky” Bissell sold Ballantyne Corporate Park to Northwood Investors for more than $1 billion in 2014.

Bank of America executive Cathy Bessant will be the next leader of Foundation for the Carolinas, which oversees $4 billion in assets. Bessant spent most of her career in Charlotte, but is now based in Paris. She plans to retire in December after more than 40 years at BofA. Bessant chaired the foundation’s board between 2009 and 2014.

NEW LONDON Clayton Supply, a mobile home company controlled by Warren Buffett, will create 263 jobs with a $46.6 million facility for manufactured housing. The company is part of Maryville, Tennesseebased Clayton Home Building Group, the largest U.S. builder of modular and manufactured homes, producing more than 62,600 homes last year. Buffett’s Berkshire Hathaway conglomerate bought Clayton in 2003 for $1.7 billion. KINGS MOUNTAIN The Department of Defense committed $90 million to revive the Kings Mountain mine that closed in 1988 but could contain 5 million tons of lithium, bolstering the military’s net-zero emissions goal by 2050. The funds will be allocated to mine owner Charlotte-based Albemarle Corp., which says it could be operating by late 2026. MOORESVILLE Engineering firm Corvid Technologies bought 66 acres around its headquarters near Lake Norman for $9.25 million. Corvid opened its headquarters campus in 2019, pledging to hire hundreds of workers. The company employs more

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than 200 engineers and scientists that specialize in high-fidelity, computational modeling and simulation for defense, motor sports and Olympic customers. GASTONIA

A listing by Premier Sotheby’s International Realty’s Charlotte office set a record for most expensive residential listing in Gaston County history, says the seller’s agent, Jessica Grier. The almost 55acre property has a price tag of $7 million. It includes an almost 9,000-square-foot, five-bedroom brick home, two bass ponds, a pool, two garages and a carriage house. Richmond, Virginia-based Dominion Energy is selling its North Carolina natural gas distributor to Enbridge as part of a plan to focus on its electricity business. Public Service Company of North Carolina, also known as PSNC Energy, serves more than 600,000 customers across 28 counties in the state. The North Carolina business, based in Gastonia, is fetching a price of $2.2 billion plus the assumption of $1 billion in debt. An industrial facility that has attracted Amazon, the U.S. Postal Service and Newell Brands has two more buildings to market in the Gateway85 industrial park. Illinois-based Poettker Construction, which has a Charlotte office, completed the 241,000-square-foot Building 4 and the 705,000-square-feet Building 7. Kansas City, Missouri-based NorthPoint Development is developing the 300-plus acres.

EAST BEAUFORT After 10 years, the National Park Service Beaufort Visitor Information Center will close in December. The visitor’s center aimed to promote Beaufort as a National Park Gateway Community, but did not create the expected economic benefit to businesses in town. EDENTON

Google will buy all of the 189-megawatt capacity produced by the Timbermill Wind farm being built on the Albermarle Sound by Charlottesville,Virginia-based Apex Clean Energy. Apex says that the farm will create more than 150 jobs during construction and include as many as 45 turbines. It’s the first to be approved in North Carolina by the Department of Environmental Quality. It’s expected to be operating by late 2024.

GOLDSBORO A federal grand jury indicted one current and one former deputy of the Wayne County Sheriff ’s Office over an alleged bid-rigging scheme. Michael Kenneth Cox and Christopher C. Worth face 12 separate fraud charges that accuse them of steering contracts for upgrading Wayne County Sheriff ’s Office vehicles to Eastern Emergency Equipment, a business owned by Cox and employing Worth. GREENVILLE A Pitt County grand jury indicted Mayor Pro Tem Rose Glover on two counts of obtaining property by false pretense. The matter relates to her withdrawing funds from a dead man’s account in 2019. Glover, who has filed for re-election, had not commented on the matter as of mid-September. KILL DEVIL HILLS Murray Bridges, who had owned and operated Endurance Seafood since 1976, died after being infected by the Vibrio bacteria while tending his crab shedders. The Outer Banks fisherman is credited with remaking tiny Colington Island into a behemoth of the soft-shell crab industry. He was 89.

SHELBY The N.C. Division of Motor Vehicles License and Theft Bureau filed more than 425 charges against a dozen current and former employees at Nissan of Shelby after a months-long investigation. Charges included failing to inspect vehicles before offering them for sale, failure to disclose damage and failure to deliver title.

MOUNT OLIVE Mt. Olive Pickles signed a partnership to be the official pickle and pickle juice provider for the Carolina Panthers at Bank of America Stadium. The 97-year-old company employs more than 1,200 people who produce more than 230 million jars annually. O C T O B E R

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Financial banking firm nCino has agreed to resolve an antitrust violation civil suit for $2.2 million. Affiliated companies Live Oak Bank and Apiture had already agreed to settlements in the March 2021 lawsuit.

PB Financial, the holding company for Providence Bank, will acquire Coastal Bank & Trust, which is based in Jacksonville, creating a $1.1 billion institution with more lending power. The deal encompassed 75% stock and 25% cash. Coastal will merge into 17-year-old Providence. Robert “Bob” Pike is the new CEO and president of Carolinas Gateway Partnership. The public-private partnership promotes business in Edgecombe and Nash counties. He succeeds Norris Tolson, who has led the organization for the past seven years and will stay on in a transition role.

German-based Kesseböhmer broke ground on a $30 million, 93,000-square-foot consolidated headquarters and distribution warehouse near the Pender County line. The company employs 3,000 people worldwide and makes metal kitchen implements and storage products sold at Lidl, Walgreens and other stores.

TRIAD

WILMINGTON William C. “BJ” Losch III succeeded Huntley Garriott as president of Live Oak Bank. He will also continue to serve as chief financial officer of parent company Live Oak Bancshares. Before joining Live Oak two years ago, Losch had spent 12 years at Memphis, Tenn.-based First Horizon as senior executive vice president and CFO.

GREENSBORO Boom Supersonic hired Scott Powell, a 38-year veteran of aerospace giant Boeing, to lead development of the propulsion system for its promised supersonic jet. The company is building its aircraft factory near Piedmont Triad International Airport.

North Carolina A&T State University will break ground this fall on a $13 million community food-processing complex. The facility will include an advanced test kitchen and development area, plus a creamery that will sell ice cream and other dairy products. The goal is to expand the role of the university’s 492-acre farm. HIGH POINT The former United Furniture Industries properties are up for sale. United Furniture’s real estate was sold in bankruptcy court in July to Phoenix Acquisition, which specializes in repurposing industrial sites, for $65 million. Phoenix has listed the properties for sale on its subsidiary website. Rock House Farm named Federico Contigiani as president of the 112-year-old Hickory Chair. Contigiani has had sales leadership roles with Rock House furniture manufacturers Maitland-Smith and Cabot Wrenn during the past five years. TAYLORSVILLE Furniture maker Mitchell Gold + Bob Williams ceased operations and filed for bankruptcy protection. Stephens Group of Little Rock, Arkansas, which owned the business since 2015, cited an inability to raise critical financing. More than 500 employees at plants in Taylorsville, Hiddenite and Statesville lost their jobs. Gold and Williams started the business in 1989. WINSTON-SALEM

GREENVILLE East Carolina University exceeded its $500 million Pursue Gold campaign five months ahead of schedule. A key factor was support for the Jeff Charles Scholarship fund, honoring the veteran sports broadcaster who had worked at ECU since 1988. He died in February. The campaign has raised more than $503 million and will accept contributions through Dec. 31. 24

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Salem College received a $5 million gift to support its health leadership transformation. It equals the largest donation in Salem’s history, and came from an alumna who asked to remain anonymous. Salem College is an allwomen institution that enrolled about 500 students last year.

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Dhruva Chellani, who founded UNC apparel store Classic Carolina on Franklin Street in 1993, and his son Kris were killed in a head-on collision. Kris Chellani was a TikTok influencer who was poised to take over the family-owned company.

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DURHAM

Epic Games is offering developers as much as 100% of revenue generated by a new title for six months if it’s listed exclusively in the company’s game store. The program is called the “Epic First Run” program. According to Epic, its store has more than 230 million players — 68 million active per month. After six months, Epic gets 12% of the revenue and the developer keeps 88%.

NET Power reports $649 million in cash on hand after its first quarter as a public company. NET Power merged with Rice Acquisition in June to form a public company in a deal that generated $670 million to fuel its energy plant strategy.

CHAPEL HILL Nashville-based Montecito Medical acquired an 11,515-square-foot medical building in Chapel Hill used by the UNC Physicians Network. Montecito also acquired a 15,153-square-foot medical office building in Raleigh hosting Raleigh Pediatric Associates. The company has bought more than a dozen medical buildings in North Carolina, including properties in Gastonia and Shelby.

Drugmaker Novan agreed to sell its assets as the company’s bankruptcy moves forward. Novan reached an agreement with Australian company Mayne Pharma for assets related to Rhofade, a commercial product that Novan added through its acquisition of EPI Health. Mayne Pharma will pay $8 million for the assets.

Fortrea, a contract research organization that was spun off from Laboratory Corp. of America, reported revenue of $793 million and net income of $28.3 million, or 32 cents per share, in its first full quarter as a public company. Fortrea employs 19,000 people working in more than 90 countries. It expects 2023 revenue to be between $3 billion and $3.1 billion, and pre-tax earnings of $255 million to $285 million.

Doctoral students at Duke University voted to unionize through the Service Employees International Union. The result gives more than 2,000 academic employees at Duke the right to have their pay and working conditions collectively bargained. The Ph.D. students often work as teaching and research assistants. MEBANE

McKay’s, a used-book and media store, is relocating from central Greensboro to a new building on Interstate 40-85 here in early 2024. The company says the move will be more convenient for more Triad and Triangle customers. It also has a store in Winston-Salem, plus three in Tennessee. MORRISVILLE

CARY Paris Baguette, a bakery franchise owned by South Korea’s SPC Group, opened its first North Carolina location and eight others in North America, bringing the total number of stores in the region to 150. 26

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Blue Force Technologies, which is developing an autonomous drone called The Fury with “fighter like” performance, has been sold to California-based Anduril Industries, a defense contractor. Andruil plans to continue expanding operations in the Triangle.

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RALEIGH The Carolina Hurricanes signed a 20year lease with the Centennial Authority, the organization that manages PNC Arena. Team owner Tom Dundon pledged to invest millions in redeveloping the land. Raleigh and Wake County governments appear ready to give PNC Arena $21.3 million annually from their interlocal fund for the next 25 years. Cherry Bekaert, a 75-year-old assurance, tax and advisory firm, purchased Cordia Partners and Cordia Resources, an accounting and consulting firm in the Washington, D.C. area. This is the company’s fifth acquisition in 12 months, making it the largest accounting firm based in the Southeast, the firm says. Cherry Bekaert, which has private equity backing, will grow to around 2,100 employees.

An administrative law judge ordered the state to issue a permit to Wake Stone for its rock quarry near Umstead State Park, reversing a decision by a division of the N.C. Department of Environmental Quality. Judge Donald van der Vaart found the state regulators committed several key legal and procedural errors in denying Wake Stone’s modified permit for the quarry. The state environmental agency has appealed the judge’s decision to Superior Court. Wake Stone operates several quarries in North Carolina.

Liberty Healthcare announced 96 people would lose their jobs after it lost a contract with the N.C. Department of Health and Human Services. The Pennsylvania-based company reviews Medicaid Personal Care Services applications for the state to determine eligibility. The program assists individuals who, because of a disability, are unable to accomplish tasks themselves.

Advance Auto Parts named Home Depot executive Shane O’Kelly as president and chief executive officer, succeeding Tom Greco, who had been the top executive since April 2016. Greco will remain an adviser for an unspecified time.

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Raleigh-Durham International Airport will spend more than $500 million to replace its main runway. The Federal Aviation Administration authorized the Raleigh-Durham Airport Authority to seek final permits and begin construction on the replacement. The existing 10,000foot runway was built in the 1980s. The current runway will remain in operation during construction. N.C. Transportation Secretary Eric Boyette, who has served in Democratic Gov. Roy Cooper’s cabinet since 2017, has retired. Joey Hopkins, who has been chief operating officer at the DOT, succeeded Boyette.

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CHEROKEE The Eastern Band of Cherokee Indians voted to legalize recreational marijuana sales and use on its western North Carolina reservation. Tribal members also approved a second proposal to expand liquor sales to restaurants, hotels and other places on the reservation. The votes are not binding, although the Tribal Council has signaled it plans to follow through. LAUREL SPRINGS

The search for UNC Asheville’s next chancellor is the first under a new policy that gives more control to the UNC Board of Governors and System President Peter Hans. Enrollment at the school has declined by 20% to about 3,000 students over the past decade. Kimberly van Noort is the interim chancellor at the university, which has had four leaders in the past eight years.

Construction work on the Blue Ridge Parkway has led to double-lane closures on either side of The Bluffs at Doughton Park, the first restaurant to open on the Parkway in 1949. Visitors can still access the restaurant via N.C. 18. The $100 million, three-year infrastructure program involves a staggered series of lane closures along a 75-mile stretch as workers repave roads and address overlooks and signage issues. The Bluffs closed in 2010, but reopened in 2021 after receiving nearly $1 million in state and federal aid. ■

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DIVERSITY

DIVERSITY: IT JUST MAKES SENSE A wide range of employees with different backgrounds and experiences, lead to improved recruiting and retention along with stronger relationships with clients. Diversity leaders at organizations across North Carolina share their experiences. Photography by Bryan Regan

Taylor Dewberry

Anna Dolgikh

Emma Hayes

attorney chief diversity officer Smith Anderson

senior vice president of HR Reynolds American

senior evp-chief culture officer State Employees’ Credit Union

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BASF, Fidelity, Reynolds American, Robeson Community College, Smith Anderson and State Employees’ Credit Union sponsored the discussion. It was moderated by Chris Roush, executive editor of Business North Carolina. It was edited for brevity and clarity.

make sure that there’s a very inclusive environment so that they can show up being themselves. Also, as we think about supporting our customers, they expect to see diversity, and they expect to see themselves at our company.

HAYES: I’m Emma Hayes with North Carolina State Employees’ Credit Union. State Employees’ was early in its official DEI journey, so I’ve been in my role as what initially was the chief culture officer. Now I’m the chief learning and experience officer. In that role I am responsible for learning, leadership development, sustainability, equity, diversity and inclusion. We lead with equity, looking at providing equitable opportunities across our organization. We have about 8,200 employees. We’re the second largest credit union in the nation. We are champions for the Eight Cooperative Principles, which include diversity and inclusion, considering all ways to provide equitable opportunities in all things, including learning and development. We are just now creating baselines for a lot of the work that we’re doing as we continue to build out frameworks for some of our programs, which include retaining and recruiting diverse talent into our organization at all levels.

ROBINSON: My name is Kristen Robinson, and I’m the head of our asset management board program at Fidelity Investments. But I am also one of the site leaders in North Carolina for Fidelity. We have about 8,000 associates in this amazing state of ours. I’m proud to say that we are the most diverse region that we have across Fidelity, which has about 75,000 associates worldwide. When I think about diversity, I think about how I need to represent all of our associates on our campus. That means we need to

DEWBERRY: I am Taylor Dewberry. I am the chief diversity officer at Smith Anderson. I’m also an employment attorney, so that goes hand in hand together. We have over 200 employees. We’re based in Raleigh and we are the largest business and litigation law firm in the Triangle and one of the largest in North Carolina. We do everything except for family and criminal law. I’m over our diversity mentorship programs and our programs to recruit, retain, and advance our diverse employees at our firm. The firm recently got Mansfield certification, which means we considered at least 30% diverse candidates for recruitment and advancement opportunities at the firm, which was a huge milestone for us. We also are heavily looking into how we build our pipeline of diversity coming in so we are working with high schoolers, college students and law students to bring in the next generation of diverse attorneys.

Kristen Robinson

Dr. Johnny Smith

Courtney J. White

head of asset management board program and N.C. regional leader Fidelity Investments

vice president of instruction and student support services Robeson Community College

head of human resources BASF Agriculture Solutions North America

WELCOME TO THE BUSINESS NORTH CAROLINA DIVERSITY EQUITY AND INCLUSION ROUND TABLE. OUR ROUND TABLE MEMBERS WILL INTRODUCE THEMSELVES AND TALK BRIEFLY ABOUT DIVERSITY IN THEIR ORGANIZATION.

SMITH: My name is Dr. Johnny Smith. I serve as the vice president of instruction and student support services at Robeson Community College. We’re excited to be able to work with people from the high school level all the way to our

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DIVERSITY adult learners. And when we think about diversity, we are open, we are accessible. One of the things that we’re also excited about is the fact that we have a minority male mentoring program. So we’re endeavoring to work with our minority males, and show them enrichment opportunities and experiences. We’re reaching out to our Hispanic population and making sure that they have an opportunity to join in their educational pursuits. We’re just as excited about working with all people to make sure that everybody has an opportunity at education because we know education is the great equalizer, and it’s so important to have that opportunity for not only educational advancement, but also for economic prosperity.

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DOLGIKH: My name is Anna Dolgikh. I’m the chief human resources and inclusion officer for Reynolds American and a member of the broader British American Tobacco group. We’re international and quite a diverse company. We are transforming the industry, we are transforming our portfolio. It’s enormously critical for us to ensure that we get diversity and inclusion right more than ever, because we need different ideas, we need to ensure that the culture is catering for that. So we’ve been very pointed in our efforts, starting from the recruitment into the development within the organization. We’re inviting employees to participate in a lot of dialogue. Employee resource groups have been a real success story for us. We are also thinking about what are the right enablers that we need to put in

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place. How do we create a long–term sustainable company where people can be their best authentic selves? WHITE: I’m Courtney White with BASF. I am the head of human resources for agricultural solutions in North America. I’m also the global head of diversity, equity and inclusion for the operating division as well. BASF is the largest chemical company in the world. DEI takes everybody understanding the fact that everyone has something to bring to the table. Honestly, we always say that we want to be considered the No. 1 employer in our industry and across all the industries. In order to do that, it really takes ensuring that we have programs, policies, and have every facet that shows that we’re living our convictions. We’re living who we are and we do it in a natural way such that

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we have a culture that not only recruits, but also retains individuals from different backgrounds. There is a saying that “customers will never love a company whose employees don’t love it first.” WHAT ARE THE CHALLENGES IN TERMS OF IMPROVING DIVERSITY AND GETTING PEOPLE ON BOARD FOR DIVERSITY AND INCLUSION EFFORTS? HAYES: We have changed the meaning of diversity, equity and inclusion. We’ve always considered ourselves to just go out and get good talent. I think we need to recognize the landscape of North Carolina is changing. To remain relevant, we have to ensure that we mirror the people we serve. And there’s no way to do that without intentionality. I think some

people hear that and think there are groups of people that you’re trying to exclude. That is the challenge of where we are in this very political environment. The challenge is having to break down the misconception that programs for diversity, equity and inclusion are exclusionary, because they’re not, they’re quite the opposite. A lot of people have this automatic impression that we’re talking about race, or gender, or sexual orientation or identity. And really, it is so much larger than that. So I simplify it and say: “When I say ‘diversity,’ what we’re saying is anything that makes us different.” There are no two people who are exactly alike. How then do we celebrate and invite differences into our organization? So changing the language to ensure that people don’t get the wrong impression about the

programs that we want to put in place has been a recent challenge. DOLGIKH: I can build on that elephant in the room. One of the biggest challenges we have is the tobacco stigma. When we recruit, we have that barrier to overcome, which is a challenge. But, it’s also an opportunity because it pushes us to innovate. We get a lot of people who want to help us change and this is amazing. Then comes the retention. How do you continue to stimulate? We have people from different industries and different backgrounds. How do you get all that talent that we are bringing in and ensure that it’s sustainable. It keeps us on our toes. But it’s a good place to be in a way I think that really pushes us to think differently. We learn fast,

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DIVERSITY try things. Sometimes we realize that something probably was not the best idea, but we move on and try something else.

something that for us has been exciting. Because of the transparency, we’re able to have the conversation and have that platform.

ROBINSON: We’ve had a diversity and inclusion annual report for the last three years. We do it voluntarily. We do it because we want transparency and accountability. When we share it with our associates, they say, “Well, what does good look like?” I think the fact is, especially with a company that’s growing, the pie is getting bigger. So even if you make tremendous progress and double the amount of people of color that you’ve hired, year over year, when you look at the percentages, it still looks diluted. And I think one of the challenges is making sure that people understand that you have to keep pushing forward, you’re never done. I think that really making sure that people understand what that actually means is

HOW DO YOU GET SENIOR EXECUTIVES TO UNDERSTAND THE IMPORTANCE OF DEI EFFORTS? DEWBERRY: It’s a point that our customers are asking us for. I think a lot of us have discussed this before. People are looking for teams that look like them, or teams that have people that can bring different perspectives not just for the perspective of being diverse, but having those people on your team is a better team. Having people looking at things from different angles and different backgrounds is going to build a better work product. This is a retention effort. But this is also an effort to make us produce better work and a better product for our clients.

WHITE: I think what we find is that there’s not one way, and oftentimes people are hoping for the blueprint and what you find is that it takes multiple ways. For example, if you’re trying to advocate for others, and also decision makers to be a part of the hiring process, you may find that with one an emotional discussion around why this is the most humane thing to do is effective. But for another it may be the fiscal return that should be expected. I was in a session and I had to talk about what’s the value proposition. I took the research and turned it into what that means for the organization. I say, “When you read McKinsey or Gartner (business research), it shows that only 28% of people show up to work every day actually caring about what they do. So what happens if we get the rest of them, the 72%?” Once that statement was made, all of a sudden I got a lot more people on board. ROBINSON: Another part we’re thinking a lot about is our future customers. If you think about it, the millennial generation, they will comprise an extra 75% of the workforce in 2025. The largest cohort within that is bilingual, Hispanic individuals. McKinsey has all this great data that says the more diverse teams perform better. The numbers don’t lie. When you think about what’s coming, it’s so incredibly important to be thinking about programs that you can resonate with your customer base. And again if your associates do not see themselves, then I think that it starts breaking down. SMITH: I think about the different ways that we have to reach out to our learners, whether they are adult learners, whether they are in the early college setting, whether they are in adult high school, or whether they’re working on their GED. They have different learning modalities. Some folks want to learn online, and we’re trying to say come back to school. We really want to re-engage with these

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DIVERSITY adult learners and these students, but many of our learners have now found that online, this virtual stage, has been a great way for them to learn. And so I think those challenges in the classroom and outside of the classroom are: How do you engage this learner? Is it teaching a high-flex class, face-to-face or totally online? Dr. Dallas Herring, who is known as the father of the N.C. community college system, said meet students where they are and take them as far as they can go. And that’s essentially what we’re endeavoring to do is to meet every learner, and trying to customize, individualize their learning experience where they are, and take them as far as they can go. We’re not comparing their experiences to someone else’s. That is what we’re endeavoring to do in higher education.

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DEWBERRY: I think Dr. Smith made a great point about the hybrid workforce that we as employers are looking at too, because you have people who are most comfortable working at home. Well, how does your employer make you feel belonging, and included when you’re at home? So we’re trying to come up with all these different ways. Let’s do some virtual opportunities. Let’s have more one-on-one sessions versus big group employee sessions. We’re trying to work with this new world that COVID has created with hybrid, in-person or fully virtual employees. SOME EMPLOYERS SAY THAT HYBRID WORK HAS HELPED THEM INCREASE THEIR DIVERSITY BECAUSE IT HAS ALLOWED THEM TO BRING IN NONTRADITIONAL WORKERS.

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HAYES: Before the pandemic, we never hired outside the state of North Carolina. And now we have employees across the country. So it’s definitely helped, because there are some challenges in reaching talent. It gave us an opportunity to invite people outside of North Carolina, in small numbers, but for very specialized skill sets that we needed. Skill sets that we were having challenges finding because we live and work in a state with big tech. When you think about your Red Hats and your Ciscos … how do we as an employer compete with other tech companies for employees when you’re here in North Carolina. So we had to leverage talent outside of North Carolina to meet some of those specialized type skills, particularly IT, where employees in the state have so many options. So it was a difficult challenge for us.

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ROBINSON: We hired 15,000 associates across the country last year. And 43% of those hires were people of color, and 42% were women. Hybrid and remote work opened up a tremendous opportunity to have people in different places. Something that often we don’t talk about is the diversity of location. HAYES: We’ve certainly seen the same thing. All of our employees were here in North Carolina. So that is a myopic view when you think about geography. Although the state itself is very diverse it’s still very much North Carolina. When you want to innovate, when you want to have an opportunity to challenge yourself, you get less of that when everyone’s experience is very similar. Opening up our talent pool and inviting a few people from outside

of North Carolina. It’s been very, very helpful to have some of that diversity of thought. CAN YOU GIVE ME AN EXAMPLE OF SOMETHING THAT IS REALLY WORKING WELL?

WHITE: We moved to what we refer to as impact-based hiring, which basically suggests that we need to challenge ourselves on the traditional ways that job descriptions are written. The natural tendency of a hiring manager, if a role is vacant, is to write the role based on

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DIVERSITY DR. SMITH, CAN YOU TALK MORE ABOUT THE MENTORSHIP PROGRAM AT YOUR COMMUNITY COLLEGE?

the person who was just in it. Often that person has retired. “You need to have this number of years experience, you need to know how to do this, etc.” The goal for us is to say, “Is that really what you need?” Or can a candidate have skill sets, competencies and capabilities that suggest that you can create impact? And if you can create impact, and then you will learn what we will teach you in that role? Does that make you a viable candidate? And what we found is the answer is yes. We have hired individuals who didn’t meet what you would refer to as a traditional profile for a role that helped us increase our diversity numbers. Impact based hiring … has been in place now for about four years.

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SMITH: What we know is that the minority males mentoring circles have important opportunities for enrichment. It’s important to get our students outside of where they live, where they normally function, and allow them to see different spaces. One of the things I did at another community college with this particular population is I took this group, I taught a sociology class, and I created a civil rights travel study that was embedded in this course. I took the men to Tuskegee, Alabama, where we went to Booker T. Washington’s home and we saw Dr. George Washington Carver’s sweet potatoes — they’re still in formaldehyde over there. We got to go to the Red Tails hanger. We went to Selma. We walked the Pettus Bridge. We pretty much tracked where Dr. Martin Luther King Jr. may have been. We captured that moment of Bloody Sunday. We took the learning, we made the world the classroom. We took these men on a journey that I think they won’t forget. What we found also that is important is that accountability

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is a component. These men wanted to be accountable to someone, someone they respected, and also somebody that they felt like really cared for them. Not just in the classroom but outside the classroom. When we start talking about minority male mentoring programs. We use Tony Dungy’s book, “Uncommon,” in which he talks about being a good man and good parent. At my former institution, the wife of one of the men came up to me and said, “You have given me back a better husband.” His family was better; his kids were better. To think we were able to get that out of a minority males mentoring program. At Robeson Community College we are looking to do the same thing to make sure we are creating a warm, welcoming environment where we feel our men can express themselves and they feel that sense of belonging. Our minority males really look for: “Do I fit here? Do I feel comfortable here?” ■

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By Kevin Ellis and Audrey Knaack

orth Carolina’s population has trended urban for decades, but the state’s rural history is important to its culture. About 40% of the state’s population lives in one of 80 rural counties, as defined by the North Carolina Rural Center, and 85% of North Carolina’s municipalities have fewer than 10,000 residents. North Carolina’s rural population of almost 3.5 million people makes it the second largest in the nation, behind only Texas, according to the 2020 census. North Carolina’s reliance on its rural residents is why Business North Carolina has publicized a list of trailblazers for six years. These are thriving business owners and professionals under the age of 40 who work in cities and towns with fewer than 100,000 residents. They are creating jobs and providing services while championing their communities. This year, we received nominations for trailblazers who live from the Atlantic waters of Ocean Isle Beach to the Blue Ridge Mountains in Franklin. The 23 trailblazers work in a wide variety of occupations including agriculture, entertainment, retail and technology. Four trailblazers list more than one occupation on their resume while all are involved in community activities. One opened a bistro after helping start a commercial truck and van equipment business. Another teaches college students entrepreneurship while also operating seven businesses. Most of these trailblazers are working behind the scenes to help make Main Streets across the state vibrant in smaller communities. Two trailblazers serve as mayors, while a third is a candidate for his town’s board. We appreciate the young professionals who are making a mark, and thank those who made nominations. O C T O B E R

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Allen’s online commercial truck and van equipment business started with co-founders Harrison Boyd and Brian Sherman four years ago and has grown to about 20 employees. “Seeing such talented and hardworking people join the team has been great. Getting to know them all and watching everyone grow together has been an honor.” Education: Business administration degree, East Carolina University Biggest influencers: My father, Tony Allen, is the hardest working

person, no matter what setting or job he is in. I often find myself picking up trash or taking on simple construction or business tasks, even as our teams have expanded. That “do whatever it takes mentality and never be too good for any job attitude” came from him.

Cool fact about yourself: My wife, Katherine, and I live in a house built in 1881. We also bought a three-story bank built in 1906 that we spent more than a year renovating with my father, who is a general contractor. The first floor is now the 1906 Bistro & Bourbon Bar, and the second and third floors are six Airbnbs. The history of the building and Washington plays a considerable influence in the design of the restaurant and Airbnbs.

WARREN ALLEN

CO-FOUNDER, VICE PRESIDENT | ELITE TRUCK OWNER | 1906 BISTRO & BOURBONS

Organization’s biggest success last year: Doubling our team size when other companies are struggling to hire good people was a huge success. The Rural Infrastructure Authority awarded us a $200,000 grant to renovate a vacant commercial space to house our expanding team with the expectation we would invest $1.9 million and create 31 jobs. Best place to show off your town: We opened up the bourbon part of 1906 Bistro & Bourbons in July. So far, it’s been a great success and I love having friends and visitors check it out.

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HEATHER HUNT ALMOND CHIEF FINANCIAL OFFICER UWHARRIE BANK ALBEMARLE

35 Almond has worked at the bank for 13 years, including three years in her current position. Her job satisfaction comes from “knowing that I get the opportunity every day to work for a company that is about more than just money. It is about truly bettering the communities in which we live, work and play.” CEO Roger Dick and community members formed the bank in 1983. It now has about a dozen offices. Education: Accounting, MBA degrees, UNC Charlotte

COLTON BAKER OWNER, HEAD BREWER UWHARRIE BREWING ALBEMARLE

Biggest influencers: I watched my dad work his way up

in law enforcement, not for the money, but for the ability to have a voice in the safety and well-being of his community. Same for me. I want to have an impact on communities in an effort to continue the revival of Main Street America.

Cool fact about yourself: Mom of Alexis, 9, and Maddox,

6. My time is pretty much consumed with ball sports. I love every minute of it. In my spare time, I enjoy hosting friends and family at my house. Organization’s biggest success last year: We crossed

$1 billion in assets, which allows us to remain competitive and independent in our industry and leverage our overhead to continue to provide our services to our communities.

CAROLINE CATOE PRESIDENT ECRS BOONE

Best place to show off your town: My family farmhouse. Treat people to a good meal, let them visit with the donkeys, goats, cows, horses and beagles, explore the woods and go fishing in a natural spring pond. End the day by watching a gorgeous sunset without any obstructions.

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Bumgarner considers it a blessing to have worked during the past seven years with both his father and grandfather in the threegeneration-old business, which delivers petroleum products in seven N.C. counties and operates Cubbard Express stores. “The most satisfying thing about my work is continually improving and building upon the foundation that our company has built, and seeing how that improvement betters the lives of our employees, our customers and our community.” Education: Criminal justice degree, UNC Charlotte (He played in the football team’s first 46 games, starting in 2013.) Biggest influencers: My father and grandfather had distinctly

different personalities and means of doing things, but were in lockstep on the things that really matter like honesty, integrity, and customer service. I have tried to take things from both of their styles and incorporate it into my leadership and how I approach different situations.

Cool fact about yourself: My wife, Stephanie, and I have been married since 2017. We have three children, two girls and one boy. Organization’s biggest success last year: Our convenience store

ZACH BUMGARNER

VICE PRESIDENT BUMGARNER OIL HICKORY

chain grew from 11 to 14 stores, and we expanded our wholesale fuel and delivery capacity in both North and South Carolina. We launched our propane division in late 2021 and have organically grown that over the past two years.

Best place to show off your town: After eating at a locally owned restaurant, I would take them to a Hickory Crawdads minor league baseball game or Hickory Motor Speedway, the “birthplace of the NASCAR stars.”

Uwharrie Brewing became the town’s first craft brewery in February, nearly two years after Baker started renovating a former fire station. He overcame hurdles with the supply chain, labor and inflation. The business helps promote downtown with live music and open mic nights, a running club and yoga classes. “The thing I enjoy most about brewing beer is seeing the finished product, and the reaction that it gets from patrons as they try new styles and flavors they may not have enjoyed before.” Education: Business, University of Mississippi Biggest influencers: My friend and former coworker Cody Noble’s attention to

detail and appreciation for brewing as an art helped shape my vision as a brewer and an artisan. His work starting a Brevard brewery, Noblebrau Brewing, inspired me.

Cool fact about yourself: I have no formal brewing education, but have brewed more than 500 batches of beer. Organization’s biggest success last year: We are delighted to be on our

30th batch of beer and showing no signs of slowing down.

Best place to show off your town: The people who operate the restaurants, boutiques, coffee shops and ax-throwing businesses downtown make Albemarle amazing. There’s also a model train set up, a bakery and a nice Biergarten.

When Catoe is not leading a company of almost 200 employees, more than half of them working in Boone, she can often be found running along King Street with her dog, Critter, along with a double stroller carrying her two young children. She started working for the company started by her father in 1989 as a part-timer. She has been a full-time staffer since 2013 and was named president last year. ECRS sells soft ware designed for independent retailers. “We help independents compete against the retail giants.” Education: Business degree, UNC Wilmington Biggest influencers: I grew up under the guidance of a talented entrepreneur, my father. Learning how

he has successfully started, grown and operated ECRS has been the biggest factor in my own business journey. How many people get the opportunity to work alongside their predecessor for years with intentional mentoring throughout? It’s invaluable.

Cool fact about yourself: I graduated high school at age 16. Organization’s biggest success last year: We opened our new deployment facility, our third office in Boone. Best place to show off your town: We have the best outdoor experiences in the state. If there’s snow on the ground, we’re skiing. If it’s spring, fall or summer, we are out mountain biking, hiking, kayaking or rock climbing. It’s a very special place to live.

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Faulconer attended UNC School of Law as a Chancellors Scholar, its highest merit-based award. She was also an East Carolina University Scholar (now Brinkley-Lane), its most prestigious scholarship. She worked with ECU’s athletics department, and then the minor league baseball team in Kinston. Her sports background fits in Ward & Smith’s Name, Image and Likeness practice group that involves compensation for college athletes. She also has legal expertise in sports betting, creditors’ rights and healthcare. “I know it’s cheesy, but I grew up in North Carolina (Smithfield), and I believe it’s important to give back to the state that has given so much to me.” Education: Political science, master’s in kinesiology, East Carolina University; law degree, UNC Chapel Hill Biggest influencers: Law professor John Brooker

taught me the most important part of a law practice is the relationships we form, and the way we treat people.

Cool fact about yourself: I am experienced in “pulling tarp” over a baseball field in the event of a rainstorm from time working for the Down East Wood Ducks in Kinston.

LILY FAULCONER ATTORNEY WARD AND SMITH

Organization’s biggest success last year: Every

client we serve is our biggest success. Without our clients, we would not have engaging, challenging and rewarding work to do every day.

Best place to show off your town: Greenville is a great place for year-round visitors. There’s nothing better than a fall Saturday at Dowdy-Ficklen Stadium cheering on the Pirates. In the summer, there is the Concert on the Common series. The Little League Softball World Series at Elm Street Park provides the perfect setting to enjoy green space and connect with the community. First Friday Artwork takes place during all seasons. We also have fantastic small businesses and incredible local restaurants. Luna Pizza is my favorite.

GREENVILLE

HALEE HARTLEY OWNER KID COVE PRESCHOOL BOONE

Henderson started his practice in 2018, about three years after becoming a doctor of dental medicine. “I enjoy being able to help so many fearful and anxious patients get the care that they need. I have patients that travel long distances and wait months in order to be treated under our care.” Henderson also serves as a pastor of Oasis of Hope Ministries and leads the praise and worship ministry. He also mentors local teenagers. Education: Biological sciences, doctor of dental medicine, University of Pittsburgh Biggest influencers: My former department chair from

residency, Dr. Joseph Giovannitti, was a pioneer in my profession and well-regarded internationally in the field of anesthesiology for dentistry. He has been a mentor for 10 years.

Cool fact about yourself: I lived the same day twice at sea while studying abroad. I crossed the International Date Line while on Semester at Sea and relived the previous date. I guess it’s safe to say I have time-traveled. Organization’s biggest success last year: Continued

growth with the hiring of two administrative personnel and two paramedics.

BRAXTON HENDERSON PRESIDENT, OWNER SOUTHERN OFFICE-BASED ANESTHESIA OXFORD

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Best place to show off your town: We would start at my favorite place for breakfast in Oxford, the Family Diner. For lunch, we’d go to Strong Arm Baking for pastries and sandwiches. Dinner would be at Tita’s Taqueria and Pupuseria, known for its tacos and pupusas.

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Watauga County has a lengthy waiting list for childcare, so Hartley opened her own business six years ago with a goal of helping children learn and develop through creativity and understanding that a well-rounded education begins with a good preschool experience. Enrollment has more than tripled in five years. “I love watching children learn and grow. I love watching their excitement as they catch a ball for the first time or write their name by themselves for the first time,” Hartley says. “I also love watching my staff grow, too. I love watching them figure out and implement what works well in their classrooms.” Education: Early childhood education, Caldwell Community College; Early childhood development, master’s in educational psychology, Purdue University Biggest influencers: Jamie Durham, who

works at the family-owned furniture company Charleston Forge in Boone, helped me get Kid Cove off the ground with her business expertise and knowledge. My professors have influenced how I teach children and then how I teach my staff to excel in their classrooms.

Cool fact about yourself: I am the middle child

with four siblings.

Organization’s biggest success last year:

We opened a summer camp in 2021. In 2022, we grew to 75 preschoolers and 50 campers. In 2023, we opened a second facility, increasing our total enrollment to 90 preschoolers and 140 summer campers.

Best place to show off your town: The Blue Ridge Parkway, more specifically Price Lake, Bass Lake or Rough Ridge for hiking, canoeing and taking in the beauty of our mountains. End the day at The Cardinal for a burger and Blue Deer for dessert, both locally owned and operated.

JOE KIMRAY OWNER B & W HARDWARE WAKE FOREST

39 Kimray left the corporate world a decade ago to join his father-in-law, Buddy Willis, in the hardware business. “He and I have very different skill sets, and when they were combined, we realized that we had something very special that allowed us to grow the business.” Kimray enjoys continuing the legacy of a business that has been downtown since 1949, and is the town’s only family-owned and operated hardware store. “Seeing regular customers, while also welcoming new residents to town provides the opportunity to get to know many people in the community.” He is running for town commissioner. Education: English degree, N.C. State University Biggest influencers: Kimray credits his father-in-law with teaching him how to lead a

retail business, from managing inventory levels to relationships with larger corporate clients.

Cool fact about yourself: The town of Wake Forest named him Citizen of the Year

in 2021.

Organization’s biggest success last year: Our store is the largest dealer of Traeger

Grills in North Carolina. We have customers from other states because we stock every model and can provide them information on the best grill for them.

Best place to show off your town: Many buildings in our downtown have been here since the early 1900s and now house an exciting group of shops, restaurants and breweries, including my own B&W Hardware. We have something for everyone.

Kornegay combined his faith-driven passion with his interest in agriculture to create a company and nonprofit to help farmers and the hungry. “Our purpose is to revive communities with food.” He started the company in 2019 and now has about 20 employees, although that number grows with seasonal workers. His business helps support several dozen farmers along the East Coast sell their produce to customers, including restaurants, stores or individual customers. He has converted five city buses into “pay-what-you-can” grocery stores, which he deploys into eastern North Carolina communities where people face food insecurities. Education: Business management, N.C. State University Biggest influencers: Rocky Mount businessman Josh

Munden, who died in 2008, became like a father figure to me when my own father became ill. He helped build my work ethic and gave me my first job, digging a trench for a plumbing line.

WILL KORNEGAY

Cool fact about yourself: I have a great twin sister.

FOUNDER, OWNER RIPE REVIVAL

Mount Chamber’s 2023 Business of the Year.

ROCKY MOUNT

Organization’s biggest success last year: Rocky Best place to show off your town: Our farm. Most

people have never stepped foot on a farm, much less know the hard work it takes to grow the food they find in the grocery stores.

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When work for a two-way radio company slowed, Lofthouse shifted to Basic Law Enforcement Training, leading to a job at the Macon County Sheriff ’s Office in 2009. Working on his off-duty days, Lofthouse started his first company, Wise Communications, after being asked to install and repair safety equipment in patrol cars, fire trucks and ambulances. After selling that business, he later rejoined the Sheriff ’s Office and started Public Safety Services seven years ago. “The most enjoyable thing about the job is seeing my company be able to hire local employees to build first responder vehicles that support our community, all while being able to help local organizations with sponsorships from revenue earned,” Lofthouse says. Education: Criminal justice degree, Southwestern Community College Biggest influencers: My mom was a single mom and did it all

by herself to make sure we never had to do without. My greatgrandpa taught me if you never risk and roll the dice, you will never win.

Cool fact about yourself: I oversee the road patrol for the Macon County Sheriff ’s Office.

NICK LOFTHOUSE

OWNER | PUBLIC SAFETY SERVICES LIEUTENANT | MACON COUNTY SHERIFF’S OFFICE FRANKLIN

Organization’s biggest success last year: We were able

to buy our own building and increase our workforce to five employees.

Best place to show off your town: One of the many waterfalls

in Macon County or gem mining in one of the local operations.

30 Miller has been with Pine Gate Renewables for six years, and in a leadership role for the past four. She oversees project development and commercial strategy for more than 65 large-scale solar projects in the Southeast. In the past few years, she has helped lead more than 1,200 megawatts of solar projects into commercial operation, equivalent to powering 4.5 million homes with renewable energy. “Putting years of effort into making a project a reality and getting to see the benefits it brings to the community is one of the most satisfying experiences.” Education: Environmental science and policy with a minor in business, Florida State University. Biggest influencers: My mom is my biggest

professional mentor and idol. As a female leader, I admire the way she wields empathy, creativity, and strong interpersonal skills to create successful outcomes.

Cool fact about yourself: I sing and play guitar, and have been writing my own songs since I was 13. I am the lead singer in our Pine Gate Renewables band, “PV Ray Vaughan” (PV is an acronym for photovoltaic, a device that converts sunlight into electricity.). Organization’s biggest success last year: Pine

Gate placed into service close to 8% of all solar energy installed in the U.S. last year. This monumental achievement was realized by a dedicated team, of which nearly half identify as female, who viewed challenges as opportunities and continued to drive toward a clean energy future.

PIPER MILLER VICE PRESIDENT PINE GATE RENEWABLES ASHEVILLE

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NIKKI MORGAN SINGER NORTH WILKESBORO

HOLLY MINTON TOWN MANAGER NORTH WILKESBORO

Best place to show off your town: I love taking friends and family hiking to one of the many amazing waterfalls in the area, then ending with food and wine at Leo’s House of Thirst in west Asheville. Not only is their food incredible, but their cozy outdoor patio and fire pits are perfect for any weather.

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Mayo has a full resume – teacher, sock manufacturer, mayor, farmer. “The most satisfying aspect about what I do is that I know that I am helping feed this country. Not only am I helping put food on people’s plates, I am also using cotton from our family’s farm to make socks.” The sock mill has been in the family since 1932 and at its peak employed 400; it now has about 30 staffers. His father, brother and sister work at the mill. Mayo, who is a registered Libertarian, was elected as mayor in May. Education: Agricultural science, N.C. State University. Biggest influencers: I call my father “Big Tater.” He has never been far

behind me, but also never stopped me from failing. When I have failed and when I fail today, he is there for me. When I succeed, he pushes me further.

Cool fact about yourself: Eagle Scout.

TATE MAYO

Organization’s biggest success last year: Tarboro approved a strategic plan, passed a social district and continues to build on its summer concert series. We’re in the process of incorporating the Riverfront Park into our downtown. It’s an effort to liven up an area that needed attention. From a textiles perspective, my sisters Grace, Deanna and I have been able to start making socks under our own brand, Mayo Mills. It brings my heart joy to finally see some hope in an otherwise bleak outlook for textiles.

AGRICULTURAL TEACHER | NORTH EAST CAROLINA PREP PRINCIPAL | MAYO KNITTING MILL MAYOR | TARBORO TARBORO

Best place to show off your town: Tarboro Town Common is the second-oldest in the United States, behind Boston. You can still graze your livestock on The Common, although I have never seen that happen. You can enjoy the social district, play pickleball, walk to the town’s brewery, visit an art gallery, or library, walk through an arboretum or get a coffee and food at one of three restaurants within three blocks.

Morgan started college studying math, took a drama class and never looked back. Her musical career began about six years ago, and she now performs nationally. She is part of the Black Opry Revue, a national movement which aims to provide a home for Black artists working in country, Americana, blues and folk music. Songs and storytelling help bind people together, she says. “When I perform live and exchange energy, thoughts and space with people, that’s always the best moment for me and the people with me.” Education: Drama, Guilford Technical Community College; theater arts, Bradley University Biggest influencers: One grandfather had healthy careers in the military and the postal service.

The other thrived in graphic design and sign-making. Both embraced church ministry later in life. Both were men of service. Growing up, money was never the highest priority. I was taught that if you meet people where (and as) they are, if you prioritize the needs of the community, and when you lead with humility, everything else tends to fall into place.

Cool fact about yourself: I stay active by rollerblading because it makes me feel weightless and like I’m floating on air. Even if I only have 15 minutes, I will throw on some headphones and fully enjoy that happy place. Organization’s biggest success last year: I produced and hosted a variety show, “The Sunday

Kickback with Nikki Morgan” that was performed in Chicago and Greensboro. It featured music and comedy as well as children activities. Minton took the job in her hometown almost a year ago after serving on the town’s planning board since 2020. It’s her first government job. She has worked at her late father David Minton’s North Wilkesboro auto service business. “The most satisfying thing about my work is having a voice in how our community grows and changes. My Board of Commissioners set a vision, and I help move that vision into reality. “ Education: Political science, UNC Asheville; master’s in public administration, Appalachian State University Biggest influencers: Patricia Mitchell from my master’s program gave me my first internship and set my

course toward grant writing in the nonprofit environment. My first boss after grad school, Heather Murphy, was a huge influence in teaching me how a healthy organization should operate. When my father became ill, I came home to work for my family’s business. I had time to fall in love with the people who make Wilkes County great.

Cool fact about yourself: I’ve lived three professional lives — six years in nonprofit, eight years in the private sector, and now local government. Oddly enough, I feel this is where I was meant to be all along. Organization’s biggest success last year: When NASCAR’s All-Star Week returned to North Wilkesboro

Speedway, we were on a tight deadline to hold a FanFest event. We worked with Wilkesboro, Wilkes County government and Wilkes Economic Development to provide family-friendly entertainment and a parade. We raised funds to minimize the use of tax dollars. It was hugely successful.

Best place to show off your town: Smoot Park has the trailhead to the Yadkin River Greenway. It is beautiful and relaxing. The park also has our community’s only public swimming pool. O C T O B E R

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GABBY MURILLO OWNER TRI-RIVER CONSULTANTS SANFORD

In her mid 20s, Murillo worked at a private Raleigh airport refueling and towing jets. She did not have the strength to pull the refueling hose by herself, so she doubted that she would last. She ended up staying three years, and learned that business could be lucrative. She has been in real estate for five years, including three years as a company owner. She serves as a chamber of commerce ambassador and supports a Central Carolina Community College scholarship. “The most satisfying part of my work is helping people invest in their future by guiding them through the process of achieving home ownership.” Education: High school with some college Biggest influencers: Raleigh real estate agency

owner Tina Caul shines her light so bright, paving the way for others to create their own success. Her collaboration-over-competition mindset is rare in this cutthroat industry.

Cool fact about yourself: I was a teen mom and a single mother of three by age 20, so my entrepreneurial path was unconventional. Organization’s biggest success last year:

Being female, minority and LGBTQ+-owned, it was a huge milestone to hit two years in business. Best place to show off your town: Locally

owned gems — Purple Poodle Boutique, Libations 139 and Books at a Steele! Being a nature girl, I recommend San Lee Park, which has a wildlife nature center, nature trails, and paddle boating.

COREY PULIDO TEACHING INSTRUCTOR EAST CAROLINA UNIVERSITY GREENVILLE

Sawyer started her career in 2018 as a managing broker for a national company. Her passion for downtown led her in January 2021 to buy her first commercial space, which included a bakery and cafe. She took over the business, hired a manager and operated it before handing it off to another entrepreneur. She created space in the same building for her own firm, which now includes 16 teammates and annual real estate sales of more than $50 million. “The most fulfi lling aspect of my job involves leading new buyers through the home purchasing journey and mentoring aspiring agents. It’s immensely rewarding to help them discover the attainability of their aspirations.” Education: Accounting degree, Elizabeth City State University Biggest influencers: Debbie Malenfant, executive director of

Elizabeth City Downtown, ignites my creativity and instills in me the importance of making a positive impact on my community.

Cool fact about yourself: I’m a parent to two wonderful children, Tilden and Brinley, and I adore creating memories with them at the beach, pool, river and traveling. Organization’s biggest success last year: I acquired a down-

HEATHER SAWYER

OWNER AND MANAGING BROKER WATER STREET REAL ESTATE GROUP

town building that may be one of the town’s oldest properties. This purchase holds great personal significance as it presents an opportunity to rejuvenate a piece of local history. It’s the largest project I have undertaken.

Best place to show off your town: Meticulously restored buildings have breathed new life into our historic downtown. Pailin’s Alley dates back to the 1800s and has an array of local restaurants and breweries.

ELIZABETH CITY

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For the past nine years, Pulido has been teaching ECU students. “I enjoy seeing the entrepreneurial spark the students get throughout the semester,” he says. “When they finally start to realize maybe entrepreneurship is more feasible than they originally imagined.” He teaches students how to recognize opportunities and how to attract others to help pursue their aspirations. Pulido owns and operates seven businesses, ranging from rental properties to a dog sanctuary. His first semester of teaching involved 22 students. This fall, 177 students signed for classes. Education: MBA, East Carolina University Biggest influencers: My father-in-law,

Ira Rhodes, mentored me getting into East Carolina and encouraged me to draw outside of the lines.

Cool fact about yourself: I lived in Japan

for six years because my father was in the military. We have a hound dog sanctuary in Ayden, and my wife and I live with 25 dogs. Organization’s biggest success last year: The Pirate Challenge, which helps

fund entrepreneurs, raised $170,000 this year. We published more academic articles, and we have recruited and grown all student programs. Best place to show off your town: A

business on Main Street like Coltrain Home and Hardware in Ayden, about 10 miles south of Greenville. I want to show people how it takes a team to build something incredible. I’m proud and honored to think of myself as someone who can see the future vision and deliver the message of what’s to come.

MARC SEELINGER FRACHISEE MARCO’S PIZZA, GASTONIA MAYOR | BELMONT BELMONT

Dual roles as mayor of a town of 15,000 residents and as a restaurant franchisee offer Seelinger a bird’s-eye view of improving someone’s day. “With the city, that might mean making a resident’s commute a little easier by filling in a pothole he hits on his way into work every day. With Marco’s, it’s always fun to see kids jump up and down or cheer when mom or dad brings them in to pick up a pizza for dinner.” Elected to City Council in 2019, Seelinger was appointed mayor by a unanimous council vote when former Mayor Charlie Martin stepped down after more than a decade due to health reasons. The Republican says he’ll run next year for a seat on the Gaston County Commission. Education: Economics and Chinese degrees, UNC Chapel Hill Biggest influencers: My dad has always had a strong entrepreneurial streak, and in

watching him build up his business, I picked up a lot of skills that I have been able to use.

Cool fact about yourself: I completed a three-month residency program in Beijing in college in which we could only communicate in Chinese. Violators of the language pledge would be sent home. It was one of the most challenging things I’ve ever done. Organization’s biggest success last year: Belmont City Council made the planning

process more responsive to growth. At Marco’s, our store’s 57% annual increase in sales set a record for that location. This came about because of staff development and a focus on customer service.

Best place to show off your town: Downtown Belmont during a Friday Night Live concert. Our downtown is easily the most vibrant and dynamic downtown district of any municipality in the region because it is filled with dozens of locally-owned small businesses.

Stanton spent four years selling wares at shows and festivals, then moved to online sales. She opened her downtown boutique about four years ago. “The most satisfying thing about my work as founder and owner is that I’ve had the opportunity to create relationships with my customers, both professionally and personally. Many have become like family.” Stanton found love at her shop when an Army soldier stationed at Fort Liberty came in to buy a gift for his sister. They’re planning a wedding next September. “His support and encouragement is unwavering.” Education: Rockingham County High School Biggest influencers: My dad co-owns Southern Julep and works in

the company daily. He pushes me to go for my dreams. Sales rep Cindy Hopkins inspired me at a young age that women can kill it in business. Jenny Stilley, owner of BohoBlu, a total boss babe and even sweeter friend, taught me that small town girls can make big city dreams come true. My fiancé, Jesse, hasn’t missed a beat since he walked into my shop.

Cool fact about yourself: I started my business as part of my high

school senior project.

JULIE STANTON FOUNDER AND OWNER SOUTHERN JULEP BOUTIQUE EDEN

Organization’s biggest success last year: Southern Julep introduced Julep, which is our jewelry line, and Sunday Morning Clothing Co., a modest line of apparel with work attire and size inclusivity in mind. We also broke plans on the addition of a coffee shop inside our boutique with the purpose of creating a one-of-a-kind shopping experience while “sharing the love of Jesus” over coffee. Best place to show off your town: Our downtown has many unique shops and restaurants. The merchants and residents downtown are very involved in the growth of our local community.

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SADA STEWART TROUTMAN DOWNTOWN DEVELOPMENT DIRECTOR CITY OF SALISBURY

BECKY WHITESIDE DIRECTOR OF OPERATIONS NOVANT HEALTH BRUNSWICK MEDICAL CENTER

SALISBURY

OCEAN ISLE BEACH

Troutman came to Rowan County to lead the Historic Salisbury Foundation in 2019, then moved to her current post two years later. She works with developers, business and property owners, and residents to help grow downtown Salibury. One joy of her job is seeing others discover the community’s assets. Education: American history, Princeton University; master’s in historic preservation, Clemson University Biggest influencers: Graduate school professors Carter Hudgins and

Amalia Leifeste taught me historic preservation is a tool for community building, community identity, and community development, all of which continues to drive my passion for downtown Salisbury. My parents instilled in me that serving the community is important and admirable.

Cool fact about yourself: I was a Division I swimmer in college. Organization’s biggest success last year: Salisbury was one of

the first communities in North Carolina to create a downtown social district in July 2022. There was a lot of research and execution to make it safe and impactful. Our businesses, not just bars and restaurants, have seen a positive economic impact.

Best place to show off your town: I take family and friends in town to get a drink in the social district, so we can walk around and shop, and ultimately end up with good food from one of our downtown restaurants. Then I take them to our Bell Tower Green for a concert. Can’t go wrong with a beer from New Sarum, a Cheerwine, and a pizza from Salty Caper (get the House Pie) to enjoy a night at the park.

Whiteside transitioned from helping lead her coastal hospital as it administered tens of thousands of COVID-19 vaccinations to working on the opening of a medical office to make healthcare more convenient for Brunswick County residents. Seeing members of her extended family work in healthcare inspired her to become a nurse. While she enjoyed working as an emergency room nurse, she yearned to take a broader administrative role. Dealing with the pandemic reaffirmed her calling. She has been with Novant Health for 15 years, including almost two years in her current role. Education: Nursing, East Carolina University; master’s in healthcare administration, Ohio University Biggest influencers: My parents taught me that dedication and

hard work will take you far, to trust God and aspire to help others. My husband, Justin, and two children, Walker and Maddox, push me to be the best version of myself.

Cool fact about yourself: I was born and raised in Brunswick County. I enjoy watching and coaching sports for our children. Organization’s biggest success last year: Following numerous

years in a pandemic, our organization has really placed a focus on our team members’ well-being. We have been investing into the overall community health and service through areas such as the Brunswick Community Baby Shower, new mobile mammography coach to service the coastal region, Michael Jordan Health clinics, and the upcoming Leland Ambulatory Surgery Center.

Best place to show off your town: Ocean Isle Beach for sunset.

Growing up in Pinehurst, family vacations for White involved cross-country drives, often involving chasing trains and camping near railroad tracks. Her father, Robert Menzies, acquired the company in 1987, and White has worked for the railway for 10 years, following a stint in commercial real estate in Charlotte. “I enjoy being involved in strategic problem-solving, thinking outside of the box and exploring unconventional solutions to new challenges with my team.” The shortline railroad specializes in connecting freight from industrial sites to the national railroad lines owned by CSX and Norfolk Southern. Aberdeen also has a passenger train for Christmas season trips and special occasions. Education: Business management, UNC Charlotte Biggest influencers: From an early age, my four parents (blended family) put

an emphasis on integrity, perseverance, and commitment to putting your all into everything you do, which has served as a foundation for my professional growth.

Cool fact about yourself: My husband is an active-duty Marine who plans to retire next

year after 20 years of service. We have four boys ranging from 18 months to 13 years old and a 17-year-old daughter. Life is a beautiful chaos.

Organization’s biggest success last year: My business partner and brother,

JENNIFER WHITE

PRESIDENT ABERDEEN CAROLINA & WESTERN RAILWAY CANDOR

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Anthony Menzies, completed the purchase of 104 miles of our railroad line that we had leased from Norfolk Southern for more than 30 years. This purchase allows us to further improve our infrastructure and move freight safely and efficiently.

Best place to show off your town: Our railroad runs right next to the famous golf courses of Pinehurst. In the early 1900s, the railroad was instrumental in bringing guests from major cities such as New York and Philadelphia to Pinehurst. We hope to bring this concept of luxury train travel back to life.

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BLAZING AHEAD

HOW SOUTH STREET PARTNERS STROKED KIAWAH AND THE CLIFFS GENE THERAPY’S BIG PAYOFF • THE GIPSONS’ PARK PASSION • JIM BABB’S NEWSY STORY

2021

This is the sixth year that Business North Carolina has highlighted business and civic leaders from smaller communities that often don’t receive much of a media spotlight. Here are some updates from previous Trailblazers.

2019

JASON COX OWNER PRESS COFFEE+CREPES FITZGERALD & FAULKNER AEDOS GROUP GRAHAM

Jason Cox describes his Press Coffee+Crepes business as a “coffee house that sits within a restaurant that has a cocktail lounge in the rear.” That formula he and business partner Brett DeVries used in 2017 in Graham “as a shiny object to play with” has turned out to be a recipe for success. Since featuring Cox in 2019 as a Trailblazer, he and DeVries have opened a second Press Coffee+Crepes, that includes the Fitzgerald & Faulkner cocktail bar, in the American Tobacco Historic District campus near Durham Bulls Athletic Park. A third Press will open early next year on Hillsborough Street in downtown Raleigh, Cox says. The first Press was an effort at downtown revitalization in Graham, a town of 17,000 residents between Burlington and Chapel Hill. His Aedos Group then acquired 43,000-square-feet of downtown space, which has been leased out to retail and services businesses, helping stabilize a town he characterized as having unrealized potential. He says 80% of the first tenants remain in business. He estimates there are another half-dozen Grahams in North Carolina – smaller areas with walkable downtowns, but with the access to populations and just waiting to be discovered. The secret, Cox says, is that first-time entrepreneurs need encouragement to pursue their “crazy ideas.” The Greene County native also serves on an advisory board for entrepreneurship at Elon University.

2020

LAURA BARRY ASSISTANT COACH DAVIDSON UNIVERSITY DAVIDSON

Laura Barry returns to the women’s college basketball coaching ranks this season as a full-time assistant to Gayle Fulks at Davidson University. She had coached the Watauga High girls team for the past seven seasons, accumulating a record of 124-55, including last season’s team which made it to the fourth round in the state playoffs. She also coached the high school boys team for two seasons from 2019 to 2021.

“Change is hard, and leaving a team is always hard,” says Barry, “but this is an opportunity that came at the right time and the right place.” She and Fulks have known one another since they were both assistant college coaches in their 20s. Barry will continue with her Peak Basketball business, which she started in 2018 in Boone to work with young high school athletes to give them year-round opportunities to train and compete in basketball. Peak stands for “Process, Effort, Accountability and Keep at it.” The Cary High grad’s basketball journey began as a child and continued as a walk-on for UNC Wilmington. She would transfer to UNC Chapel Hill, where she was a member of two ACC championship teams and the 2007 team that made it to the women’s Final Four. Barry played for Gastonia native and former Tar Heel coach Sylvia Hatchell, which helped feed her lifelong love of the game. “I think that’s why I’m a coach, just being around her and her staff.” Barry had previous collegiate coaching experience as a graduate assistant at St. John’s University and assistant coaching jobs at Allegheny College in Pennsylvania and East Tennessee State University.

2020

MELINDA COVERT PROJECT MANAGER DPR CONSTRUCTION APEX

Melinda Covert is project manager on a two-year, $100 million life sciences construction project in Greenville that she can envision one day providing life-saving treatments for people in North Carolina. “It’s rewarding to make something exist where it didn’t exist before,” she says. Covert came south in 2016 for work after completing her engineering degree at Northeastern University in Boston in 2013. Since being named a trailblazer she has settled in Apex and purchased her first home. She also switched companies, moving from Texasbased Fluor to California-based DPR Construction about 15 months ago. The move allows her to take a more active role in project execution on the construction field side of the business and be more involved in problem-solving, she says. A project manager can work long days and have stretches without time off depending on scheduling, she says. She enjoys being on the job site, though. She has volunteered to help get more young women interested in jobs within the construction industry. “You don’t see a lot of us, but you do see more than you used to,” Covert says. The U.S. Bureau of Labor Statistics reports that there were 1.2 million women in the construction industry in 2020, or about one in 10 workers. The industry needs to work on pay equity issues as well as bringing more women into jobs, Covert says. “The more diverse your team is, the better results you get.” ■ O C T O B E R

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A North Carolina icon How Bob Timberlake, a nice guy from Lexington, became a global phenomenon. By Chris Roush

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PHOTOS COURTESY OF BOB TIMBERLAKE

May 1965 article in Life magazine about famed artist Andrew Wyeth turned Bob Timberlake from the manager of his family’s gas business and other interests into a world-famous artist and furniture designer. After reading the article and being impressed with Wyeth’s style, Timberlake met the subject of a Wyeth painting called “The Children’s Doctor” at an art show. (Dr. Margaret Handy had treated Wyeth’s children.) Timberlake had begun painting in the basement after his kids went to bed, but he didn’t know how to channel his passion. So in February 1969, he called Dr. Handy, who told him to call “Andy.” Nervously, Timberlake dialed, and Wyeth answered. After a short explanation, the famous painter replied, “Well, when can you be up here?” That weekend, Timberlake drove to Wyeth’s studio in Chadds Ford, Pennsylvania, and showed his paintings. One was called “The Old Feezor Place,” an acrylic painting that Timberlake still possesses. “He looked at mine and said, ‘You’ve obviously got a wonderful talent. You ought to figure out a way to do it.’”

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PHOTOS COURTESY OF BOB TIMBERLAKE

Nearly six decades later, Timberlake’s work is globally renowned. Based in his hometown of Lexington, his paintings have sold out exhibits around the world, selling for millions, and his Lexington Furniture “World of Bob Timberlake” line has sold an estimated $2.2 billion, an industry record. He’s licensed designs for everything from rugs and lamps to ceramic tile, doors, floors, fixture lighting, roofing, windows, hardware, paint and stain, bringing in millions more. His books, mainly depicting his art but also a 1999 memoir, are best-sellers. Collectors search for his paintings, tables and chairs at garage sales, hoping to strike

it rich by owning an original from a man who looks like the quintessential grandfather, having never said an unkind word, according to one of his granddaughters. “He is just a singular personality,” says Jerry Epperson, managing director of the Richmond, Virginia-based Mann, Armistead & Epperson and a notable industry analyst. “He’s warm. You can’t help but love him. I wish there were more Bob Timberlakes in my life.” At his Lexington gallery, open Wednesday through Sunday, several thousand shoppers visit each week, perusing Timberlake prints and originals while their creator walks the floor, unnoticed by many of those milling around. A drawing of a kitchen stove is listed for $1,150. A six-pack of Timberlake note cards goes for $11.95. A cherry coffee table costs $299 while his monthly doodle sheets that show his creative mind at work fetch $995. A sunflower throw pillow is listed at $29. Canoes hang from the ceiling. Timberlake, whose glasses hang around his neck, apologizes to guests in the gallery, noting that the past weekend cleaned out some inventory. Timberlake often gives some of his work to nonprofits for fund-raising efforts. “He’s just a very unselfish man,” says Rockingham lawyer Bill Webb, a friend and quail hunting partner for the past 20 years. “He’s not driven by money. He’s a North Carolina icon in the Hugh Morton and Bill Friday model. Those level of people are fewer and fewer. He’s the finest man I have ever known.” Timberlake professes not to know how much money he’s made during his 53 years as an artist. “It’s my reward to have people tell me that they have a painting in their room,” he says. “The furniture has turned out to be like the paintings. People tell me what it reminds them of, and what they feel when they’re in a house with that furniture.” At 86, Timberlake shows no signs of slowing down. He still works eight to 10 hours a day in the studio in the back of his Lexington gallery, and says he’d work longer if his family would let him. At one table, he’s designing furniture. At another table, Timberlake doodles and writes down ideas for new paintings. He and his son Dan, who handles the business dealings, decline to discuss business specifics other than to expect an announcement in early 2024. Succession at Bob Timberlake Inc., and its future structure, is being discussed, but there are no firm plans.

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An entrepreneur at heart

until April 1973 before Timberlake could produce enough for a major exhibit of 25 paintings. Although it was Easter, and income Timberlake’s father, Casper, pushed Bob and his brother Tim, tax returns were due the next day, the exhibit sold out the day before who was five years older, to be entrepreneurial. When Bob was 10, it opened, marking a first for the Hammer Gallery. Over the years, he and his brother spent the summer building a lake cabin, using Timberlake had six more showings there. parts of a torn-down house on South Main Street in Lexington His work quickly attracted global interest, aided by displays to build an office for the family’s gas business. At 15, Timberlake at the Corcoran Gallery in Washington, Frye Museum in Seattle built a chest that won Ford Motor’s Industrial Art Contest. “We and Isetan Gallery in Tokyo. In 1974, he exhibited at the Artists of were thrown into situations to create and use our imaginations and America show with Norman Rockwell. creativity,” he says. That same year, he built a 1931 Plymouth Roadster, taking parts from nine other cars. The vehicle was later sold to buy his wife Kay’s Timberlake calls his artistic process as simply determining which wedding ring in 1957. ideas in his head he’s going to act upon. “My eyes were like cameras,” Eddie Smith, the CEO of Grady-White boats in Greenville, he says about those early years. “I was storing all this stuff — moss grew up two blocks away in Lexington. He idolized Timberlake growing on the side of an oak tree, ants fighting in the woods, squirrel for building the hot rod. “That was right at the age I was getting car nests. I was storing and capturing all of that stuff. The creative process crazy,” says Smith. “He would come by the house, and it was just a is continuous. It’s like writing a book, reading the book and then piece of art. It was just the coolest thing I had ever seen.” illustrating the book.” Timberlake graduated from UNC Chapel Hill in 1959 with a For many years, Timberlake would retreat to a barn south of degree in industrial relations and returned home to work in the family Lexington to paint and sketch. He bought the Shoaf Barn, which had businesses, which included a funeral home and a furniture store. been built in 1809, in 1986 and renovated it into a cabin. Two years But he grew restless. “My brother Tim was very capable of running ago, he moved his main work studio to the back of the gallery, just everything we’ve got,” says Timberlake. “And I could see running off Interstate 85. out of things to challenge myself.” Tim ran the family gas business, In 1989, Timberlake was approached by former CEO Jeff Young Carolane Propane, until it was sold in 1995, then he retired. of Lexington Furniture about designing a line of desks, chairs, beds Doodling and sketching came second hand to Timberlake. In and tables. The “World of Bob Timberlake'' line was introduced in 1965, he came across the Life article about Wyeth. “And a light bulb, October 1990. Within three months, it honestly, just as you pull a chain — ching, was selling at the famed Harrods ching — went off in my head. All of the department store in London. Young things he was saying, his feelings, why he did expected $6 million in first-year wholesale the paintings, it was so familiar it was scary.” sales, but Lexington pulled in $26 million. It wasn’t until the visit to Wyeth four The number kept increasing, topping years later, however, that Timberlake acted. $100 million annually for more than a From February 1969 to January 1970, decade. Young says the line was the most Timberlake painted in the basement. In successful in the industry’s history. Furniture May 1970, he took 23 paintings to the pundits called it the “antiques of the future.” Winston-Salem Gallery of Fine Arts in Young remembers visiting furniture Old Salem and sold them all for $18,500. stores with Timberlake and being amazed He knew then that he’d found his to see customers lining up outside, waiting calling. There’d be no more working at to get the designer’s autograph. “It just had the gas company. a downhome appeal that nobody else had,” In January 1971, he aimed for the big says Young. “We hoped that we would time. Timberlake and his dad traveled Bob Timberlake and his granddaughter, Evanne. strike a nerve with a downhome look that to New York with seven new paintings was not pumped up by marketing.” to show to galleries. Although he had an appointment with the Today, pieces from the line sell on Etsy. A king-size bed goes Kennedy Gallery on Madison Avenue, Timberlake took a taxi to for $2,500 while a walnut cabinet lists for $1,495. Young, who left the famed industrialist Armand Hammer’s gallery on 57th Street Lexington Furniture in 1999, stepped down as head of Markor and knocked on the door. Timberlake was showing the paintings to International Home at the end of 2022. Lexington is now owned by a gallery staffer when Hammer’s brother, Viktor, walked by, took a Shanghai-based Luolai Lifestyle Technology and Yixing Capital. quick look, and said, “Can you leave these?” Timberlake declines to give the furniture style a name, though They sold immediately, and the Hammers wanted more. It took

Eyes like cameras

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others call it Americana or country. “It was a chair that looked like your grandfather sat in it and made it just for you,” he says, noting that he required Lexington to keep knots and other imperfections in the wood. “Or made that table for your home. What do you call that? Personal. Everything we were doing was real. It wasn’t fake.” Timberlake released seven additional lines, including Riverwood in 1999, Lodge in 2000 and GrandKids in 2001 and Vintage Reserve in 2002. In 1997, he introduced a collection of 24 home plans, with the first Timberlake show home in High Point. Other show homes were built as far away as Utah. The designs were made available through Southern Living. His Lexington gallery opened in 1997 and another opened in Blowing Rock in 2001. In December 2010, Timberlake’s license with Lexington expired, after he objected to the company’s use of Chinese manufacturing. His contract gave him the right to OK the furniture before it was sold. He recalls telling Lexington, “If you make it in China, I’m not going to approve it.” (At one time, four of the company’s 16 plants in North Carolina were devoted to the Timberlake line.) The next year he started working with Hickory-based Century Furniture, which made the furniture until the end of 2019.

Bob Timberlake during the 1980s at a television interview (above); Timberlake at his studio with journalist Charles Kuralt (left).

Stamps and wine labels

Timberlake has written nine books, including two cookbooks and one with noted CBS “Sunday Morning” host Charles Kuralt. He partnered with Shaw Living to produce a line of rugs. Door hardware and bath accessories were his Longleaf Collection. He partnered with Statesville-based Dixie Seating Company to produce wood rockers. Plantation Dog Foods made a premium Timberlake premium dog food. He’s designed four stamps for the U.S. Postal Service and the wine labels for Shelton Vineyards in Dobson. His friend Eddie Smith remembers opening a Bass Pro catalog one day and seeing a line of Timberlake luggage for sale. When COVID-19 hit in 2020, the Timberlake’s scaled back on the licensing, letting the contracts expire and returning the company’s focus to his dad’s art. “Nobody wants to know who I am,” says Dan Timberlake. “I’m in the back with my dog.” Says his dad: “Dan keeps me out of trouble. He keeps me to where I can create. Dan is the guard at the gate.” Both Timberlakes remain circumspect about the company’s plans. Bob Timberlake acknowledges work on a book about his friendships. “When I’m doing a book, I’m writing the words, I’m picking the paper, creating the design,” he says. As for the furniture he’s designing, Timberlake says, “We are looking to change, but change in a way that has quality and character, our character. People will know our furniture.” As for the company’s future, a granddaughter, Evanne Timberlake, worked for Bob Timberlake Inc. as a design consultant and director of retail, art and furniture. She left in 2021 to earn an

MBA at UNC Chapel Hill and now works for Amazon.com in Washington, D.C. Says Bob Timberlake: “I want her to be happy. I know so many people who know her potential. So whatever she wants to do.” That, says his friends, is what makes Bob Timberlake special. He’s always thinking about others and not himself. “He’s just the nicest, most humble, thoughtful, most generous person I have ever known,” says Smith, his childhood friend. “He’s just an amazing person.” ■

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TURNAROUND TIME Chapel Hill leaders jockey to make Franklin Street a dynamic space. By Noelle Harff

ranklin Street, Chapel Hill: A famous avenue where students and residents meet, greet and rush after winning national championships. Some believe it should remain a classic college town, while others argue that the streetscape adjoining the UNC campus should evolve into an “innovation hub.” Instead of either coming to fruition, Franklin is evolving into a strip of shuttered windows and chain restaurants.

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Public relations professor Lois Boynton can attest to this regression. She joined the UNC Chapel Hill faculty in 2001 and began eating lunch regularly at Spanky’s, a venerable restaurant on Franklin Street known for the caricatures of famous UNC athletes that adorned its walls. She got to know the staff and was periodically invited to employee events. When Spanky’s closed in March 2018 after 41 years of business, “I was kinda lost,” she says. “They were so supportive when I went through cancer treatment. It was a sad day.” Lula’s lasted two years before becoming a COVID-19 victim. Raising Cane’s, a fast-growing friedchicken chain based in Louisiana, was expected to open at the prime location, but has been delayed. Like main thoroughfares of college towns across the country, Franklin Street experiences its ups and downs. Retailers and restaurants struggle when students leave for the summer. Chapel Hill became a town after the university was opened to students in 1795. This highly dependent relationship exists both in the town’s origins and its future. It's a common struggle nationally, with many universities and towns struggling to understand their mutual reliance. Now, the town, The Downtown Partnership community development organization and the university have devised a strategic plan they hope will attract enough consumers on a consistent basis to return Franklin Street to its former glory. Five large developments have been approved along Franklin Street and the parallel Rosemary Street, including a high-rise apartment building, parking decks, a wet lab, office space and an innovation hub. These developments focus on three main objectives: revitalizing downtown, creating a better “front door” for UNC and increasing jobs and tax revenue. “Chapel Hill’s peers, places like Boulder (Colorado), Madison (Wisconsin) and Ann Arbor (Michigan), are ahead in attracting industry that provides collaboration opportunities for faculty and internships for students,” says Rod Stevens, a development consultant specializing in urban revitalization. “Chapel Hill won't be able to compete for talent if it doesn't bring industry up the hill.” Charlotte developer Clay Grubb, who has been working on mixed-use real estate projects in Chapel Hill for many years, alluded to the downfall in an interview last year with the Carolina Alumni Review. “The last 10 years have not been good to Franklin Street,” he says. “Everyone has flocked to Durham and Pittsboro and Raleigh.”

Today, downtown Franklin Street has plenty of unoccupied properties. After 48 years of business, Ye Old Waffle Shoppe closed in 2021, another pandemic victim. The Library, a popular bar for students, shut down in June 2021. “We are being forced to close our doors to make room for a national brand,” it announced via Instagram. The location remains vacant two years later. Some legacies remain. Sutton’s Drug Store still serves from its food counter, UNC students collect the infamous blue cups and drink draft beer at He’s Not Here, and Shrunken Head Boutique sells UNC paraphernalia, most notably the “Beat Dook” T-shirt. Still, many businesses haven’t been able to survive the high rent and hefty tenant improvement costs. “Rent is high, there’s no debating that,” says Dwight Bassett, director of economic development in Chapel Hill and a town staff member for 16 years. Expensive acreage is a key factor. “The land value in downtown is unprecedented. Before the pandemic, an acre in Chapel Hill was around $4 to $5 million. Now we are looking at $6 to $8 million per acre.” This summer, the town launched a grant program funded by the American Rescue Plan Act to aid existing downtown businesses affected by the continued redevelopment of Rosemary and Franklin Streets.

Franklin Street is a jewel of Chapel Hill, home to 60,000-plus residents.

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Jeri Lynn, interim executive director at the Downtown Partnership, identified another obstacle. “These are 100-yearold buildings with 100-year-old pipes and 100-year-old walls. Imagine finding out those pipes are rusty,” she says. “What mom-and-pop shop can afford those costs?” They can’t, which leaves openings for larger, wellcapitalized operators such as Raising Cane’s, which has more than 700 locations. The chain paid $3.87 million in December 2021 for its prime spot at the intersection of Franklin and Columbia Avenue. No opening date has been announced, but “2024” has been spray painted on wooden signs outside the building. The retail space adjacent to Cane’s is being leased for $31 per square foot by Riddle Commercial Properties of Fayetteville. The building has been empty since 2019. In June 2022, the town and university concluded that the district’s prosperity relies on catering to consumers beyond the 29,500 students attending UNC. Though grants and subsidies are a temporary fix, a permanent solution lies in a year-round consumer base. “We are looking for a 12-month economy instead of a nine-month economy,” says Lynn. Grubb Properties is working on multiple projects to build this year-round consumer base, including renovations of two older buildings on Franklin and Rosemary streets. On Aug. 1, it opened an “Innovation Hub” at 136 E. Franklin Street that is anchored on the first two levels by Innovate Carolina, a UNC Chapel Hill affiliated innovation, entrepreneurship, and economic network. It includes co-working space for startups, Grubb spokesperson Emily Ethridge says. Across the street, Biolabs, a Durham-based life science lab, has signed a 23,000-square-foot lease at Grubb’s 137 E. Franklin Street. Innovate Carolina says it has spawned nearly 450 startups 58

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connected to research or entrepreneurship at UNC over the last 10 years, with total employment topping 12,000. About 1,000 employees of those concerns remain in Orange County, prompting leaders to find new ways to retain fast-growing companies. “Right now, faculty members and students are working on start-ups that require lab space … and they are leaving to go to Research Triangle Park,” says Sheryl Waddell, director of economic development and innovation hubs at Innovate Carolina. “We are looking to provide students and faculty more opportunity.” While UNC Chapel Hill receives more federal research dollars than Duke University, the oldest U.S. land-grant university doesn’t have similar facilities such as those available in Durham’s downtown district or at N.C. State University’s Centennial Campus in Raleigh. Chapel Hill’s Innovation Hub hopes to address that problem. Though Biolabs and Innovate Carolina are the only official tenants, officials are seeking Microsoft, Cisco, Google and other blue-chip companies as prospective tenants due to their regional presence and recruitment of UNC graduates. “UNC creates these amazing students,” says Waddell. “We have amazing innovation coming out of the university, but after four years they leave. Wouldn’t it be great if we could give them an opportunity to stay and flourish in Chapel Hill.” Adding a six-story, 1,000-space parking deck near Grubb’s Innovation Hub is a key part of the plan to accelerate growth. Though approved in 2021, the deck has faced major delays because of bedrock problems and is now more than $10 million over its initial $48 million budget. The town is working on the deck with Ballentine Associates, a Chapel Hill-based planning and engineering firm, with hopes of completing the project in April, says Michael Carew, Chapel Hill parking operations administrator.

RENDERING COURTESY OF GRUBB PROPERTIES

Charlotte's Grubb Properties has invested heavily in Chapel Hill projects, including two downtown mixed-use projects on Rosemary and Franklin streets.

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“I was dismayed as we all were at the amount of money that we've overrun, but I really don't think we have any other choice,” City Council member Adam Searing told The (Raleigh) News & Observer. “We've got to finish it." Next door at 150 E. Rosemary Street is another Grubb Properties project. The plan is to demolish a small parking deck and add more than 228,000 square feet of office and wet lab space used by biotech researchers. While upper floors will be lab space, plans call for two floors of retail and restaurants and underground parking. UNC ranks as the seventh-best medical research institution in the nation, according to U.S. News and World Report. It receives more than $1.6 billion for research annually, mainly from federal grants. Grubb views its projects as ”an organic extension of campus,” Ethridge says, “making Chapel Hill more accessible and vibrant year round.” Development consultant Stevens applauds the moves to overhaul downtown Franklin Street. “The real advantage will come by adding a jolt of energy during the day, the ability to sit at Carolina Coffee [Shop] and hear people in the next booth talking about how to solve real-world problems of fundamental importance.” Other developers share Grubb Properties’ optimism for downtown Chapel Hill’s potential, including Longfellow, a Dallas-based developer that owns significant property in Research Triangle Park and downtown Durham. Longfellow paid $7.5 million for five lots on West Franklin Street in November 2022. The property houses local businesses such as Bella Nail Salon, Chimney Indian Kitchen and Purple Bowl. Longfellow is proposing the Chapel Hill Life Sciences

Center, which would include a nine-story, 320,000-squarefoot building, the town’s tallest structure, along with lab space, offices and some retail options. The town approved the conditional zoning permit in June, but Longfellow hadn’t started construction as of mid-September. Franklin Street is an important attraction for people making their initial visit to Chapel Hill. “The university wants to make sure its front door is the best it can be,” says Bassett. The new “front door” is named the Porthole Alley project and will include a renovated admissions office and visitors center on Franklin Street, across from the Varsity Theatre. The development, which is entering its design phase, is sponsored by the UNC Foundation, a university affiliate that owns most of the block stretching from the Top of the Hill Restaurant and Brewery to the Carolina Coffee Shop. “Downtown is where the town and the university meet. The university has a long history of investing in downtown,” says Stephanie Berrier, a marketing and communications director at the foundation. The university previously operated a store for the Ackland Art Museum under the Top of the Hill, but it was replaced by Midici Italian Kitchen, which shut its doors in 2019. Other fan favorites that are long gone include Bski’s and Pepper’s Pizza, which in 2013 closed after 25 years. Boynton would just like a reliable place where she can become friends with the servers. She sometimes visits other restaurants on the street, “but I haven’t found a home base like Spanky’s.” Developers, city officials and university administrators hope that home base is part of this Franklin Street renaissance. ■

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y dad was a Tar Heel, and so am I. We both attended classes in Carroll Hall and sat in the same quad, but we walked very different Franklin Streets. Many of the staples from his time are shuttered today. Still, some legacies stand. We both gained our freshman 15 with the help of midnight fried chicken at Time Out. We both have a collection of Blue Cups from He's Not Here and grabbed Sunday brunch at Sutton's. Despite the three-decade difference, we both were able to rush Franklin Street after beating Duke in basketball. And though Carolina's storied traditions are worth conserving, its character cannot be maintained without adaptation. Sharing the same Franklin Street is something special, but the future of Franklin is something to look forward to. — Noelle Harff is a UNC Chapel Hill senior majoring in journalism and economics.

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elly Sivy grew up with old-time music playing in the background and always loved it, but it wasn’t until she moved to Alaska to pursue her career as a wildlife researcher that her love bloomed into full-blown passion. “My friend gave me a super cheap fiddle and I was sort of scratching away, trying to figure out how to play it,” she says. She started sitting in at local jam sessions in Fairbanks and became a fan of Joe Thrift, a celebrated musician and violin maker in Elkin. This year, she is one of his apprentices, splitting her time between North Carolina and Alaska. She has crafted four violins and has even sold one. 60

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Thrift, who is revered in the world of old-time music, was once an apprentice too. “I learned to play music by ear, and stumbled into old-time music, and this is the life I have chosen,” he says. “I went to work as an apprentice at a guitar factory and was in a moneyback band, which means if you bought a ticket to fiddlers’ conventions and played on stage, you got your money back.” He now teaches at Surry Community College. “I love that I am giving back, and I also love providing information and passing along the craft,” he says. Sivy, Thrift, and Ben Masterson of Elkin participate in the unique North Carolina In These Mountains

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Appalachian Folklife Apprentice program. Funded by the N.C. Arts Council, the program supports yearlong apprenticeships in the folk and traditional arts across the Appalachian Regional Commission’s 31 counties in North Carolina. The three musicians split a $10,000 grant which funds their apprenticeship. North Carolina has had a robust folklife program since the 1970s, says Zoe van Buren, director of the N.C. Arts Council’s Folklife program. “We started our version of an apprenticeship program in 2018 to preserve the future of our cultural practices,” van Buren says. “Apprenticeships are time-tested foundational pieces of folklife programs.” Apprenticeships are considered

PHOTO COURTESY OF USGA

Businesses expanding in North Carolina are creating thousands of jobs. Colleges and universities, along with public and private sector partners, are uniting to fill them with skilled workers.

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turn, the individuals registered in those apprenticeship programs qualify for federal or state credentials,” says Dale Yarborough, ApprenticeshipNC field supervisor. Any employer can register apprenticeships, Yarborough says. And there are no limitations to the number of apprenticeships an employer can offer. “That’s part of the flexibility of apprenticeship,” he says. “Whether a small mom–and–pop shop, or a huge corporation, any employer can get involved with apprenticeships.” And while alignment with a community college is not required, the education partnership can offer a classroom education and provide resources for employers to help them coordinate classwork with on-the-job training.

PHOTO CREDIT: TED FITZGERALD, THE PILOT

USGA HOSTS GREENKEEPER APPRENTICESHIP Last year, the United States Golf Association aligned with Sandhills Community College to create a unique greenkeeper apprenticeship. Caring for the turf is one of the most important jobs at a golf course, says Jordan Booth, an agronomist with the USGA, based in Pinehurst. “Giving people the opportunity to make greenkeeping a career by the gold standard of learning a skill or a trade. Whether it’s arts, early childhood education, or advanced manufacturing, apprenticeships can pave the pathway to a new career by providing hands-on learning while paying a salary. Apprenticeships also help fill the workforce gaps in the post-pandemic economy and fill jobs at businesses and industries located in North Carolina. Many apprenticeships are registered at ApprenticeshipNC, a program administered through the N.C. Community College System, which works with employers to develop and approve apprenticeship programs across the state. “If it’s a registered apprenticeship, that means we’ve approved it, and in

helping them develop their skills and education is a main goal of our program,” he says. Next summer, Pinehurst will host the USGA U.S. Open for the fourth time in 25 years. The resort is on target to become a major golf hub, and the home of the USGA’s new Golf House and the Hall of Fame. The apprenticeship program grew out of a labor shortfall in the golf course maintenance industry, caused partly because of the COVID-19 pandemic. “We had a real shortage of people that wanted to work on the golf course,” Booth says. Booth viewed the turfgrass management program at Sandhills Community College as an opportunity to create a partnership through ApprenticeshipNC, Moore County Partners in Progress, Pinehurst Resort, Pine Needles, MidPines and others. “It’s really a collaboration between the partner golf courses, the USGA, and the community college system,” he says. “It’s been wonderful to be a part of and a way to support the local community.” Since starting in 2022, the apprenticeship program has reached its capacity of 20 students of all ages, from their 20s into their 60s. They work as paid employees at local golf courses, Booth says.

Twenty-one students, representing 11 golf courses, make up the first cohort of the USGA Greenkeeper Apprenticeship Program in Moore County.

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Gov. Roy Cooper talks to a classroom as part of the Building Bright Futures program.

for the smallest and most vulnerable in our population. APPRENTICESHIPS FILL TEACHER GAPS Building Bright Futures, a pilot program that supports early childhood pre-apprenticeships and apprenticeships

PHOTO CREDIT: BUILDING BRIGHT FUTURES

“The students are engaged, educated, driven to produce and be a part of the team,” he says. Apprenticeship programs in North Carolina also fill teacher shortages, especially in the field of early childhood education, where experience matters when it comes to teaching and caring

in North Carolina, grew out of the North Carolina Business Committee for Education, says program director Morgan Ford. The Building Bright Futures program combines hands-on training with related coursework, offering both pre-apprenticeships for high school students and paid apprenticeships for community college students. In addition, pre-school center owners, directors and teachers are tasked with hosting and mentoring apprentices and receive stipends for taking on the extra responsibility, Ford says. “It’s important they get paid because they are guiding the future of this needed workforce and taking extra time out of an already busy job,” she says. Launched last May, Building Bright Futures is a partnership between The N.C. Business Committee for Education

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and the N.C. Department of Health and Human Services’ division of child development and early education. “Each apprenticeship is different,” Ford says. “Individual employers decide what their requirements are, and hiring apprentices is like hiring a regular employee.” Currently, Building Bright Futures supports 37 organizations and works with community colleges across the entire state, she adds. According to a report by the N.C. Department of Commerce, before the pandemic, the early childhood education workforce was on the rise, with 36,967 teachers projected in 2021 based on growth trends. But employment fell short, with 33,847 teachers actually employed. “Apprenticeships are a wonderful way to help address this gap in the workforce,” Ford says. “They’re flexible, easy to customize and provide a way to recruit quality employees who are dedicated and willing to work hard.” UNIQUE OPPORTUNITIES IN IREDELL COUNTY In Iredell County, career awareness starts early, according to Jennifer Bosser, president and CEO of the Iredell County Economic Development Corp. “We promote careers for kids starting in the sixth grade,” she says. “This year, we hosted Career on Wheels, a career awareness fair with 60 employers and 1,000 students to showcase careers across a variety of local industries.” Iredell County, just north of Charlotte, has the fourth–highest average wage in the state at $64,334, and a 91% high school graduation rate, Bosser says. The county’s targeted business sectors are manufacturing, financial services, agriculture, logistics, information technology and health care and life sciences. Mitchell Community College is a strong partner and partners with local industries through its Apprenticeship Iredell program. About seven years ago, Universal Technical Institute, an education provider for students seeking careers as automotive, diesel, collision repair, motorcycle and marine technicians, O C T O B E R

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apprenticeship, they receive a credential stating that they are fully qualified to do their job.” In Moore County, where golf is king, the greenkeeper apprenticeship is the stuff of dreams for those who enjoy laboring with their hands and being part of Pinehurst’s storied legacy. “For folks that love being outside, watching the sunrise every day, being part of a team and seeing the results of their work are the best parts,” Booth says. And in Elkin, Masterson, recalled picking up his first guitar at the age of 12 and teaching himself to play the Americana music he grew up listening to in rural northern Wisconsin.

partnered with Roush Yates Engines to create a Computerized Numerical Control Machining program in Mooresville. The city is also home to the NASCAR Technical Institute. Since launching the program, Roush Yates Engines has hired more thsn120 graduates. Mitsubishi Materials USA Corp. is now part of the partnership. Both companies offer apprenticeships for CNC machining students, giving them an opportunity to gain hands–on, real–world experience while continuing their education. Most recently, Jet East, a mechanical company that maintains private jets opened an operation in Statesville with plans to hire 250 employees. Thanks to a customized plan the Iredell EDC helped create to recruit employees, the company has started working with Mitchell Community College and the county school system to develop an airplane mechanic curriculum, including a summer enrichment program for young people. “It’s a good feeling to develop a project in concept, but it’s amazing to actually see it unfold in real life, when you can work with partners to develop innovative ways for a new company to be successful,” Bosser says. 64

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Iredell’s latest venture is Iredell Ready, an initiative designed to help students and adults identify opportunities to pursue individual career pathways and employment with industry in the county. “We have an enormous number of service programs already in place,” Bosser says. “We created Iredell Ready to amplify our efforts to connect those programs to our students and our residents and get businesses involved as well.” Whether it’s the arts, education, golf, or NASCAR, growth is rampant in all economic sectors across the state, and with that growth comes opportunities for apprenticeships to fill workforce needs while providing good careers for those who need them. At ApprenticeshipNC, Yarborough estimates that about 90% of apprentices continue on at the companies and organizations that hired them after they complete their training. “It’s a great opportunity for apprentices, because their career pathway is identified and they know right up front what they can expect to gain from that career,” he says. “Many earn an associate degree while they’re in training, and when they complete their C A R O L I N A

Ben Masterson

A self-described musical hobo, he worked at a music shop and played local gigs in Oregon before moving across the country where his apprenticeship has helped him find his niche in crafting violins and teaching music at the Reeves Downtown School of Music. He also teaches traditional woodworking at the Foothills Arts Center. “Joe helped me find my path and get my foot in the door,” he says. “This apprenticeship has changed my life completely.” ■

— Teri Saylor is a freelance writer from Raleigh.

PHOTOS COURTESY OF REEVES DOWNTOWN SCHOOL OF MUSIC AND UNIVERSAL TECHNICAL INSTITUTE

Experienced engine builders, many with NASCAR backgrounds, teach students at the Universal Technical Institute.

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A strong economy is built on connections. Not just connections to global markets, but also between industries, businesses, and people. At North Carolina Ports, we build all types of connections every day. We’re proud of the effect they’ve had on our state’s economic health, and we’re excited about where they can take us next. With deepwater port locations in Wilmington and Morehead City, plus an inland port in Charlotte and intermodal rail access through CSX’s Carolina Connector (CCX) in Rocky Mount, North Carolina’s ports serve as vital links between our state and the world. In fact, our locations are within 700 miles of 70% of the U.S. industrial base. That proximity drives job creation at home and supports industries with a long heritage in North Carolina, like agriculture, manufacturing, pork and poultry, consumer goods and forest products. But we’re not just focused on connecting industries. We pride ourselves on connecting with people to better understand what they need. With the fastest turn times on the East Coast, low congestion and personalized service, we strive to be an approachable, efficient partner that’s easy to work with. We believe that a more customized and accommodating relationship is the gateway to better business. Not only do we tailor our services to meet the needs of our customers, but we do so safely and efficiently. Recently ranked as the most productive port in North America, North Carolina Ports makes transporting cargo faster and more cost-efficient than ever. Following a record-breaking performance in fiscal year 2023, we’ve also been strengthening our connections at home to continue meeting our standards of service, speed and efficiency. Projects on the horizon or nearing completion at the Port of Wilmington include intermodal yard improvements that will enhance freight mobility and efficiency, an expanded refrigerated container yard to handle more cargo than ever before and major paving projects that will increase the overall productivity and capacity of our operations. On-port projects in Morehead City include berth improvements, crane rail extension, and new warehouse space to keep pace with the strong demand for our services. However, there’s much more on the horizon. The recent approval of our fiscal year 2024 budget will bring even more efficiencies to our gate and terminal operating systems, intermodal services, and infrastructure technologies.

PHOTO CREDIT: NORTH CAROLINA PORTS

But no matter how many connections we make, we must always remember the reason for building them: the continued economic prosperity of North Carolina. We look forward to working with you in support of this goal, because a thriving state is beneficial to all who live within it.

Brian E. Clark North Carolina State Ports Authority Executive Director

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GOING COASTAL Expanded marketing benefits New Hanover.

PHOTO CREDIT: NORTH CAROLINA PORTS

ew Hanover is the second smallest of North Carolina’s 100 counties at 191.53 square miles But the area, which includes Wilmington, along the state’s southern coast ranked seventh in visitor spending in 2022. Domestic and international visitors spent more than a billion in 2022, which represents a 13.9% increase from 2021. Three new marketing strategies aim to keep the momentum as tourism officials want visitors to know they have friends in small places. The Wilmington and Beaches Convention and Visitors Bureau’s Mobile Trip Guide and its Ambassador course help direct tourists to local attractions. Its out-of-state paid media campaign uses funds to target markets through a media plan using a testing scenario, according to CVB communications and public relations director Connie Nelson. The Mobile Trip Guide allows visitors to scan a QR code and go to a website that gives them needed info. The threehour ambassador course is free to tourism industry employees and residents who want to enhance their knowledge of the whole region to advise visitors.

CVB President and CEO Kim Hufham explains how they are testing travel from specific areas. “We selected six key markets with lower awareness — this includes five outof-state markets and one Western N.C. market — to receive a ‘heavy up’ approach of media support above the unified base media plan we do annually that also includes in-state and out-of-state targeting,” says Hufham. “These ‘heavy-up’ or ‘variable’ markets were paired with ‘control’ markets of a similar profile, population size and location/distance from Wilmington.” A Destination Analysis Study will measure media metrics such as clickthrough rates to banners (of websites), website traffic and visitor guide downloads. In its first six months, the out-of-state campaign showed a 20% increase from 2021 in the distances visitors travel for overnight trips, at a 350-mile average. Out-of-state versus in-state travel for overnights originating from four designated marketing areas was close to 2021 (61.1% versus 60.6%). Out-ofstate visitation dropped slightly from 2021

(37.7%) to 2022 (37.1%). “It is still too early to truly see significant shift, however, the increase in miles traveled for overnight trips is the best indicator we are seeing the needle move,” Hufham says. New Hanover’s CVB also has completed a partnership with Wilmington International Airport. “The CVB completed several inbound marketing campaigns with Avelo Airlines and Sun Country to promote visitation to the area,” Hufham says. “The airport visitor information desk features the new Mobile Trip Guide through promoting its QR code to better serve visitors while in market. In FY23-24 the CVB will continue to support new air service as awarded with inbound marketing and will be developing a digital destination ad placed in the airport with space compliments of the airport.” In addition to Wilmington’s historic areas, riverfront and performing arts venues, popular destinations include the oceanfront towns of Wrightsville Beach, Carolina Beach and Kure Beach. “The Mobile Trip Guide is a web-based, mobile-first guide designed to enhance the in-market visitor experience,” Nelson says. “The location-based functionality allows O C T O B E R

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visitors to find hotels, attractions, restaurants, shops and events near them more easily, or they can search by type of restaurant, hotel, activity,etcetera. “Visitors are able to save partner businesses to an itinerary, share them via text message or social media or contact the partner directly from the contact information saved directly in the site.” Nelson says QR code cards, table tents, placards and window clings promoting the Mobile guide have been distributed throughout New Hanover for travel businesses to share with visitors for easy access to the website guide. “One thing that sets the Wilmington mobile trip guide apart is that it is web-based and there’s no app download required,” Nelson says. Tourism in New Hanover creates 6,142 jobs and contributes $73 million to the state and local tax bases, according to Wilmington and Beaches CVB. The three-hour Wilmington and Beaches Ambassador course is primarily designed for local travel partners and visitor-facing hospitality employees, including the CVB staff. “Local residents who wish to become destination ambassadors are also welcome to enroll in the course. In fact, a local realtor recently inquired about enrolling in the course, which is great,” Nelson says. “The course launched just as the summer travel season kicked off. During the winter months, we hope to see enrollment pick up again.” The free, online Ambassador course is a professional development course in which employees apply what they learn to 70

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“There’s no way we can forget to mention our beautiful wild Spanish mustangs,” says Visit Currituck spokesperson Michele Ellis. “They are one of the biggest draws for our part of the Outer Banks. You can take a horse tour to see them with one of our amazing horse–tour companies.” The Currituck County Rural Center in Powells Point hosts a Bulls & BBQ on November 4 with a craft market, mechanical bull, “Mutton Bustin” rodeo event for young children and barbecue tasting contest. On November 24, Whalehead, a 1920s estate in Historic Corolla Park, hosts a Christmas Crafts Village, with candlelight tours on Fridays and Saturdays. WANT A SELF-GUIDED TOUR? “If your vehicle is four-wheel-drive,” Ellis says, “then you are able to drive on our beach yourself. Just don’t forget to let some of the air out of your tires.” In Carteret County on the Crystal Coast — where Shackleford Banks horses, Cape Lookout Lighthouse and Old Fort Macon are big draws — tourism’s annual economic impact is near $325 million, according to the Chamber of Commerce, with more than $57 million in payroll for tourism industry employees. The 85 miles of Crystal Coast coastline known as the Southern Outer Banks includes Morehead City and oceanfront towns of Emerald Isle, Indian Beach, Atlantic Beach, Beaufort, Cape Lookout, Harker’s Island and Pine Knoll Shores, home of the N.C. Aquarium, with several marine species and a sea turtle nursery.

PHOTO COURTESY OF VISIT CURRITICK

Whalehead, a 1920s estate in Historic Corolla Park, hosts a Christmas Crafts Village, with candlelight tours on Fridays.

their current jobs in lodging, restaurants, attractions, tour companies or event venues. “At the end of the course, a certificate of completion can be printed and displayed for all to see,” Nelson says. “The ultimate goal of the course is to enhance the visitor experience by expanding employees’ destination knowledge and experience using the CVB’s visitor information tools. Other lessons are devoted to best practices in providing excellent customer service and gaining a better understanding of the role that tourism ambassadors play in New Hanover County.” Overall, North Carolina hauled in $33.3 billion statewide in 2022 from domestic and international visitors, a 15.2% increase from 2021 and 14% higher than the record $29.22 billion set in 2019. Much of that is spent along the state’s 325 miles of coastline. The N.C. Department of Commerce reports the Outer Banks — barrier islands from the Virginia line 120 miles south to Ocracoke — saw a 67.2% increase in occupancy collections between 2019 and 2021. Rental prices are down in the fall, and fishing and bird-watching — at Pea Island National Wildlife Refuge — is in. History fans can visit the Graveyard of the Atlantic Museum, Fort Raleigh National Historic Site, Dare County Regional Airport Museum and Freedmen’s Colony of Roanoke Island.

1940s postcard for Carolina Beach in southeastern North Carolina.

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PHOTO COURTESY OF VISIT CURRITICK

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Fall and winter events include Fall Party and a Kindergarten Thanksgiving at the Beaufort Historic Site and Carolina Chocolate Festival in Morehead City. Further inland, Moore County’s Pinehurst Resort will host the 2024 U.S. Open golf tournament in June 2024, and county leaders are urging visitors to book accommodations and buy tickets early. The World Golf Hall of Fame is relocating next year from St. Augustine, Fla., to Golf House Pinehurst. In nearby Carthage, Southern Pines Brewing Company has purchased the historic Tyson and Jones Buggy Factory

and will open a two-story restaurant and brewery in the spring. This winter, the Pinehurst-Southern Pines-Aberdeen Area CVB is partnering with the Aberdeen, Carolina and Western Railroad to promote the inaugural Carolina Christmas Train — a local ‘Polar Express.’ WHAT’S POPULAR IN NEW HANOVER? The vintage Carolina Beach boardwalk with oceanfront amusement park and Ferris wheel. KURE BEACH

Wrightsville Beach, one of National Geographic’s top surfing towns in the world. Kure Beach, the oldest fishing pier on the Atlantic Coast and a Civil War fort, home of the largest land-sea battle of the Civil War. The Wilmington Riverwalk area with 30 public-use boat slips, Battleship North Carolina tours, 230-block National Register Historic District, parks, gardens, museums and performing arts venues. “Business owners and local residents are often asked by visitors, friends and family who live in other areas about what there is to see and do in Wilmington,” Nelson says. “As our industry and local residents become more familiar with what we have to offer, and learn more about how visitors help create a desirable quality of place, we hope to create an even more welcoming environment for those visitors.” ■

WILMINGTON RIVERWALK CAROLINA BEACH

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PHOTO CREDIT: ASHEVILLE AREA CHAMBER OF COMMERCE

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FROM SOIL TO SKY Educational partnerships and a focus on drones create jobs across the East’s 29 counties.

he NC East Alliance economic development organization is initiating a homegrown approach through educational resources to create a continual, skilled workforce in its 29 Coastal Plain counties. STEM East connects school district faculties and superintendents, and leadership of 10 community colleges, with employers for careers that utilize science, technology, engineering and math. “NC East is the only regional economic development organization focusing on our 13,000 teachers in 29 counties as a workforce,” says Vann Rogerson, the Alliance’s president and CEO. The Alliance’s Industry in Schools career clusters for FY 2023–2024 will train teachers and faculty through public– private partnerships so they can educate students in career-specific pathways. California-based BelleJAR Foundation has pledged $1.6 million to help. The Alliance received the first of four annual checks — $400,000 — last summer from the foundation, which seeks “unique and innovative approaches to improve educational outcomes for underserved students,” according to its website. Industry in Schools “provides an opportunity for teachers to engage with regional industry to design instructional programming and classroom activities that align with curriculum standards,” according to the STEM East website. While funding for Industry in Schools remains an agenda item with the

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legislature, some events are taking place. “We’re coming together to solve workforce issues in the region,” says Trey Goodson, the Alliance’s regional economic developer and director of marketing and communications. “Some areas are health science, aviation sciences, agriculture, advanced manufacturing, the blue economy of boat building, marine trades, tourism and renewables and alternative energies.” Last summer, NE East Alliance hosted workshops in Health Sciences, at Pitt Community College; Aviation Science, at Craven Community College; and Smart Agriculture, at James Sprunt Community College in Kenansville. While other announcements are forthcoming, Goodson says, “Through these programs, we help teachers learn about these job opportunities and training opportunities for their students to pursue some long-term careers in eastern North Carolina that people may not be aware of.” One area with multiple jobs is agriculture. Gary Roberson is a distinguished professor and cooperative extension specialist in the Biological and Agricultural Engineering Department at N.C. State. North Carolina has 8.4 million acres of farmland and leads the country in tobacco and sweet potato production. Agriculture contributes about $76 billion to the state economy. “I have worked with the STEM East program. Agriculture is changing. It is no

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longer a business where you can learn all you need to know by just listening to your parents or neighbors,” Roberson says. “The modern farmer is part businessman, entrepreneur, crop and soil scientist, machinery technician, personnel manager and marketing specialist. The list could go on and on. We need to increase our productivity in order to continue to meet the demands of a growing world. At the same time, we need to be good stewards of our resources for efficient production. This will require a well-prepared farm community and a well-prepared support community. Farmers will need support services they can depend on to keep modern machinery running at peak efficiency. The demands and opportunities for a local workforce are certainly there.” Beaufort County on the banks of the Pamlico River also sees “demands and opportunities,” with incoming industries and an undertaking at its WashingtonWarren Airport that will have ripple effects throughout the territory of the NCEast Alliance works with. “All of what makes North Carolina great is on display here in Beaufort County, where we add in a top-notch quality of life with a coastal/river environment and small town feel that is just 25 minutes from Greenville and less than two hours to Raleigh,” says Brad Hufford, director of Beaufort County Economic Development. “Companies are discovering that there is great opportunity here, such

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as BTW Global, which relocated here recently as well as Elite Truck which is investing in a new headquarters in downtown Washington and scaling up their workforce. We anticipate additional announcements in the next few months that will further solidify Beaufort County as a top-tier location for economic development in Eastern North Carolina.” One field ripe with opportunities recently landed at Beaufort County’s airport. THE DRONE FRONTIER Drones are the latest addition to join Washington-Warren’s 5,000-foot active runway, 5,000-foot crosswind runway, five conventional and five t-hangar complexes, 39-acre solar farm and a terminal building with rocking-chair front porch, dedicated in 2015. “There are 72 airports in North Carolina, and 62 that are general aviation like ours, so we’ve been operating at a loss for as long as anyone can remember,” says airport director Earl Malpass. “So, I’ve been trying to put some things in place that would help us to, one, be self-sufficient and, two, provide jobs to Washington and Beaufort County. So, what’s our niche? What’s surrounding us?

“We started looking into the future. North Carolina is known as First in Flight and is third or fourth in the nation in the aerospace business, so looking at what I believe is the next frontier in aviation is drone operation.” Xelevate Unmanned Systems of Excellence, an Unmanned Aircraft Systems [drone] testing, development and training center in Leesburg, Va., partnered with Washington-Warren in August 2022 to make it the first “Drone Smart” airport on the East Coast — a commercial location for unmanned flight operations.” “Forever First in Flight is the term we’re using,” Malpass says. “It’s important that everyone understands that Washington is not becoming a ‘drone airport,’ but an airport that has integrated drone use.” Xelevate’s presence is expected to impact many factors of coastal life. “Creating a workforce to complement the drone industry will be a long-term effort and include not only Beaufort Public Schools, Beaufort County Community College but East Carolina University as well,” Hufford says. “Xelevate’s partnership has helped draw attention to Beaufort County and the

unique value proposition that we have here. [We] exemplify all the great characteristics that have made the state of North Carolina a consistent and recognized leader in economic development.” He mentioned several ways the state is ripe for new technology and new businesses “Our strategic location at the midpoint of the eastern seaboard, where a large percentage of the U.S. population is within a day’s drive, a competitive tax environment and low cost of doing business, as well as support from the community college and university system make our state the envy of most.” “We plan to partner with companies like Xelevate to grow a local, homegrown workforce in adjoining counties,” Rogerson says. “When companies come to Beaufort County for testing, manufacturing and software development, NCEast’s STEM Industry in Schools Regional Team will partner and grow local workers for the company’s future multi-county labor shed. We look forward to supporting Xelevate’s development and growth in our NCEast region.” Marcy Eisenberg is president and co-founder of Xelevate, a company

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Elizabeth City State University is actively involved in drone research.

created “because we saw a gap in the industry of unmanned systems,” she says. “About 80% of the market is foreign-owned. “From a national security standpoint, we need to have American-made, bornin-the-USA technologies, so we created Xelevate for aviation, national security, workforce development and education all wrapped into one.” Think First in Flight on caffeine. “This whole market has been like drinking from a firehose; it’s moving so incredibly fast,” Eisenberg says. “Obviously the defense market has a big interest in this, but because drones can be a fraction of the cost and solve complex issues we haven’t seen in the past, you see commercial markets starting to use them. Real estate, insurance, agriculture — these are starting to use drones in their business clusters in the area.” Roberson emphasizes UAV [unmanned aviation vehicle] importance in agriculture. (The term UAV refers to the vehicle alone, whereas UAS includes ground control and communications units.) “The UAV is flown over the field and captures images of the entire field. These images are stitched together to form a composite image, which is then analyzed to tell us something about the crops’ health or status,” he says. “Images are captured with either an RGB (red, green and blue wavelength) camera, the same type of camera in a cell phone, or a multispectral camera which can also include near infrared or red edge bands. The imagery, after processing, can be used to estimate plant stands, plant 76

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biomass, health or vigor, track weed populations or look for plant stress, such as insects, disease, drought or other factors.” Last April, a workshop called Drones On The Farm — Introduction To Drones In Agriculture was presented by the Vance County 4-H for high school students. N.C. State has hosted sessions explaining drone use for pesticides and crop monitoring and in a study that started in 2021 and ends in January is evaluating drone use for management decisions in soybean production. Then, there’s weather. “Part of the reason we wanted to be engrained in North Carolina is the hurricane response teams,” Eisenberg says. “N.C. DOT can use drones to fly radios over distraught areas and have conversations with people. They can use drones to start delivering water and medicines and things of that nature. The best part of drones is they are the next flying cell phone.” Washington-Warren received $20 million in state funding last year for a new landing system, runways and taxiways. Upgrades could generate about 1,000 jobs in contract work, and the aerospace and marine industries. The first $10 million payment was in January 2022 and the second in October 2022. The airport purchased an adjacent 107 acres for an aerospace industrial park; added water, sewer and electricity at a new corporate jetport and mapped plans for future hangars. Lights were added to the runways. Further modernization, Malpass says, include adding fiber and a 5G antenna,

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“so companies can send data where they need to, securely. An additional project is we’re the first and only general aviation airport with drone detection service. Verus Technology Group partnered with us and installed a drone detection system so pilots can detect drones within two miles. “We purchased LiDAR wind detection system, which monitors from three feet to 1,000 feet, and that’s important because the drone customers want to know if the winds are more critical at a certain altitude. We’re only the fifth airport in the nation using LiDAR.” Eisenberg says Xelevate is exploring working with Hyde and Dare Counties and the N.C. Department of Transportation in DFR (drone as a first responder) and the FAA’s Beyond Visual Line of Sight applications. A few years ago, Eisenberg says, Xelevate conducted a test flight over Ocracoke that lasted 20 minutes. The drone carried bottled water. “Essentially it was a DFR, and it can become part of an emergency response team,” she says. “We are working with Hyde County to potentially utilize some of that area for additional innovation work. This is a regional initiative, not just at the airport. The airport is Ground Zero. North Carolina was First in Flight and it will be First in Flight, forever.” In mid-August, the NCDOT received a first-of-its-kind waiver from the FAA “to remotely launch and fly drones beyond the pilot’s visual line of sight for construction project inspections,” according to a NCDOT release.“NCDOT Division of Aviation is piloting the use of docked drones with the private firm. Skydio, a San Mateo, California– based company, is part of the Beyond Visual program. And NCDOT is one of eight U.S. teams testing and demonstrating how drones can be safely used for business and government purposes to inform the Federal Aviation Administration’s regulation of these rapidly advancing technologies.” One facet of Beyond is community engagement or collecting, analyzing and addressing community concerns. “The imagery lets you see from a disaster perspective,” Eisenberg says.

PHOTO CREDIT: ECSU

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DRONE EDUCATION SUPPORTS A GROWING INDUSTRY In addition to aviation curriculum in Beaufort schools, Elizabeth City State University’s bachelor’s degree program in Unmanned Aircraft Systems began in fall 2019. The university also offers a bachelor’s in Aviation Science with a concentration in UAS. “Many students in the aviation program take courses offered in the UAS program as their electives,” says Dr. Chandra Asthana, UAS program coordinator and associate professor. ECSU has since introduced a minor in UAS and certificate in UAS. “ECSU has a strong partnership with Wake Tech for drone training to provide education, training, workforce development, outreach and applied research,” Asthana says. “A realitybased simulation center for Basic Law Enforcement Training, including a driver training track and a 4D immersive training village will come up soon. This facility will become the new home of Wake Tech’s EMS program and a new program in Unmanned Aircraft Systems.” He says the school also is working with a NASA workforce development grant and since 2019 has engaged in summer programs “to provide educational experiences to school children.” In the future, he says, “We are going

to have a bigger building for the aviation and emergency management department that will have more space for UAS labs and lecture rooms. We have many virtual simulation facilities for UAS. In addition, we have a variety of drones that students have hands-on experience with. Some of them are flown with remote controllers while some of them are flown in automated mode for which students make mission plans before launching them in the field. “The expectation is to have multidirectional growth of UAS program providing many opportunities to the students for employment as well as starting up businesses of their own.” Xelevate’s Eisenberg says the company will also collaborate with the schools. “With NC East, the goal is to strategically partner with them,” Eisenberg says. “With schools, we’re partnering with how to build UAVs, do the software, do the body, flight operations. These are going to allow Eastern North Carolina to plug in a new way to help this market. Start the students young, have them introduced to aviation science early and computer science, and they’ll learn the concepts as they go through school. At Xelevate, we don’t build the drones; we help people. It’s an emerging market, the supply is out there and people in the communities can find ways to plug in.”

ECSU now has a mobile drone lab, taking its highly lauded unmanned aerial vehicle (UAV) degree program curriculum into the field, and providing students with more hands-on experience in one of the fastest growing career fields in the country.

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HELP IS IN THE AIR “This is what we’re doing here: We’re here so we can forge into the future with an initiative of policy and technology and provide the consulting to minimize risk and maximize innovation,” Eisenberger says. “That’s why we’re at the airport, to continue to build in this emerging market.” The airport is hosting a Drone Technology and Air Show on Oct.13 and 14. Hufford says new companies are one ingredient in pushing Eastern North Carolina forward. But there are others. “I think the biggest challenges we have in Eastern North Carolina are to reverse the population trends that have seen population diminish in the east while communities in the Triangle, Charlotte region and Triad have experienced explosive growth the last few years,” he says. “I think North Carolina needs to balance growth to all parts of the state, and there is no better place to do that than in Eastern North Carolina. To do that, investments need to be made in infrastructure like roads and utilities, affordable housing options and economic development sites and buildings. “I think the biggest goal is to grow in relation to the state’s overall growth numbers. If we can begin to attract new companies at the size and scale that the Piedmont has, then we will see population growth and help develop communities that to date have seen decline and reduction in residents. I have always contended that our region suffers from a branding and marketing challenge. Too many people only know us through East Carolina University and vacations at the coast, but there is so much more. There are homegrown entrepreneurs doing incredible things. We have diverse communities and a growing Latino population as well as many retirees from all over the country that have discovered places like Washington, Belhaven and Chocowinity. If the Eastern N.C. counties and political leadership came together and worked toward a common goal, I think we can be the next region that gets the attention of businesses as well as relocating workers.” ■

PHOTO CREDIT: ECSU

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GREENSHOOTS

Revitalizing rural N.C.

COMING DOWN THE MOUNTAIN

A prominent empty building enables Appalachian State University to expand.

emove Hickory from North Carolina’s largest metropolitan areas without a four-year public university. Hundreds of students like 2023 East Burke High School graduate Macy Carson started classes in late August at Appalachian State University’s campus in Hickory, resurrecting a five-story, 225,000-square-foot building originally used as a furniture market. “I really do think I’m going to get my dreams accomplished here,” says Carson. The Hickory campus allows Carson to attend Appalachian State and live at home. Carson also benefits from a $2,000 “Hickory First Scholarship,” offered to all inaugural students, cutting tuition to about $6,000 a year, before any other financial aid. “It’s really close to home, and the price is really good,” says Carson. She hopes an entrepreneurship degree will help her start a business putting her artwork on clothing and other items. The Hickory campus also may help Appalachian State meet its dreams of greater influence beyond its mostly built-out main campus in mountainous Boone, 45 miles to the north. About 21,250 students attend there, a 15% increase from a decade earlier, making it among the fastest-growing schools in the 16-campus UNC System. Initial enrollment in Hickory was 363 students, and that number should double next year and continue to double for several years, Chancellor Sheri Everts says. University officials expect the Hickory campus to mainly draw students from the Unifour counties of Catawba, Burke, Caldwell and Alexander, which have a combined population of nearly 400,000. In comparison, Appalachian State’s home county of Watauga had about 54,200 residents in 2021, according to the U.S. Census Bureau. $1 MILLION PURCHASE The new campus occupies the former Hickory Furniture Mart that opened in the 1960s. Corning Optical Communications later bought the building as its headquarters and employed as many as 800 people there before moving to north Charlotte in 2019, says Vice Chancellor Nick Katers. Appalachian State bought the property for $1.02 million in 2021, then received $9 million from the state for renovations and

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technology upgrades. The six-floor building, including an under-ground floor, is bigger than any facilities on the Boone campus. It’s the most prominent office building along the U.S. 321 corridor between the Virginia and South Carolina state lines, says Catawba County Economic Development President Scott Millar. Adding Appalachian State buttresses Catawba County’s economic efforts, he says. Hickory has a thriving community college and Lenoir-Rhyne University, a Lutheran-affiliated liberal arts institution with enrollment of about 2,700, including graduate students. “[Appalachian State] opens up another pathway for students to maneuver around for better opportunities and find their way to the top,” says Millar. The university is using the 65,000 square feet on the first floor for 10 classrooms, student services and common areas. About 50 professors are teaching at the site. The building’s fifth story will be used for administration, while the below-ground floor features a gym. The second story will open next fall with more classrooms. A commons area once had about 100 cubicles for Corning employees, Katers says. It now includes sofas, chairs and desks, and places for small groups to work without disruption. Having a public university near her home means Keonna Reinhardt (pictured) can complete a finance degree, a decade after she graduated from Catawba County’s St. Stephens High. She went to community college, she says, but lacked direction and then became pregnant. Her 6-year-old son, Jacobi, started first grade this year. “I wanted to go back to school, but the only thing stopping me was finances,” she says. The Hickory campus means she can work as a waitress and care for her son, while attending school full time. “When I woke up I was a little nervous, so I said a prayer,” says Reinhardt. “And now, here I am. Classes are about to start, and I don’t have any worries.” ■

PHOTO CREDIT: KEVIN ELLIS; RENDERING COURTESY OF APPALACHIAN STATE UNIVERSITY

BY KEVIN ELLIS

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