Greater Charlotte Biz 2000.04 by CLT.biz & Charlotte Biz & Greater Charlotte Biz

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features 2 8cover story

a pattern of success Like many local textile companies, Concord-based Willis Hosiery is a family affair. And like so many others, the company has had to adapt to the changing fortunes of the textile business.

22 health care crisis: caught in the middle Health care is being confounded by the reduction in Medicare supports, increased pressure from

•

managed care companies, and the rapidly growing cos: of new drugs being produced. Facing double digit premium increases, businesses are finding themselves caught squarely in the middle

reinventing the business SBA Small Business Person of the Year Charles Fonville almost

•

closed the doors on a substantial part of his business in 1998. Today, he has increased

e artments publisher's post

from the editor

biz digest

Charlotte region gets new brand ... Rural Prosperity Task Force delivers report ... Film revenues up locally, down statewide.

his workforce, added new business and grown by over 20%.

guest column:

reducing downtime Seizing an opportunity in t~ e

marketplace, Peter

rural north carolina is in crisis!

Why Charlotte should support the state's rural prosperity plan. by Erskine Bowles of Carousel Capital

guest column:

sharing the power

Is electric deregulation good for the Carolinas? by Bill Coley of Duke Power

Templeton and his team at Carolina Orthopedic Specialists have successfully laur ched OccMed, an affiliate program that focuses the challenging field of occupational medicine.

38 the queen's cup Charlotte's steeplechase is

professional perks:

fly fishing

Some of the country's best fly fishing is in North Carolina's high country, and Oliver Smith wants to prove it to you. on the cover: This month's cover features Suzanne Howard,

vice president of manufacturing; Clare Cook Faggart, president; and Sue Cook, ceo of Concord-based Willis Hosiery Mills, Inc. Photo by Wayne Morris.

more than the highlight of the spring social season. While contributing to charity,

•

it's the culmination of the dreams of a local business executive. This year, the cup gets even better as it moves to a permanent home built especially for the event.

greater charlotte biz

cliaflotte the magazine for the successful business executive

www.greatercharlottebiz.com

april 2000

cliaflotte iz April 2000 Volume 1 • Issue 3 Publisher john Paul Galles jgalles@greatercharlottebiz.com

Associate Publisher Maryl A. Lane maryl.a.lane@greatercharlottebiz.com

Editor Timothy

Parolini

tparolini@greatercharlottebiz.com

Account Executives Sharon Kearns skearns@greatercharlottebiz.com Breon Klopp bklo pp@greatercha rlotteb iz.co m

Contributing Writers Dale Nixon Nethea Fortney Rhinehardt

Contributing Photographers Wayne Morris Robert Padgett Greater Charlotte Biz is published 12 times per year by: Galles Communications Group, Inc. 804 Clanton Road , Suite B Charlotte, NC 28217-1358 www.greatercharlottebiz.com

For editorial or advertising inquiries, call 704.676.5850. Please fax subscription inquiries to 704.676 .5853 or e-mail them to info@greatercharlottebiz.com All contents © 2000, Galles Commun ications Group, Inc. All rights reserved . Reproduction in whole or in part without permission is prohibited. Products named in these pages are trade names or trademarks of their respective companies . The opinions expressed herein are not necessarily those of Greater Charlotte Biz or Galles Communications Group, In c.

april 2000

[publisher's post]

• • • • • • • • • •

content contributes to public dialogue Greater Charlotte Biz is pleased to conuibute to the ongoing dialogue on topics affecting the area's business suength. In this issue, we are proud to introduce guest editorials that address some of the more important issues facing this economic region. Bill Coley of Duke Power contributes his thoughts about deregulating electrical power in the Carolinas, and Erskine Bowles of Carousel Capital speaks to the recommendations of the Rural Prosperity Task Force and "why those of us in Charlotte should care." These issues are important because until they are resolved, they will stand in the way of Carolina businesses' ab ility to compete in the global marketplace. If our cost of electrical power escalates, businesses may relocate their plants to obtain lower rates elsewhere. Or they may choose to produce their own power and opt out of the public utility system altogether, leaving a smaller base to pay for our "pub lic" power system. Also, if rural North Carolina continues to suffer from economic decline, the cost of public services to offset the impact of that decline will continue to grow at an exponential rate, substantially lessening our resources for maintenance and growth. Both issues deserve greater attention from the greater Charlotte business community. Simply ignoring them, prolonging the debate or choosing not to act will only postpone progress and could exacerbate the issues. Consuuctive engagement will shed greater light on individual concerns and differences that remain. In the process, we will stimulate new and creative proposals from enlightened points of view. We have also addressed health care and how it has changed over the last year. Thanks to Dr. Harry Nurkin of Carolinas Medical, Larry Hinsdale of NorthEast, Bob Seehausen of Novant and Bob Greczyn of Blue Cross/Blue Shield, you will learn why heath care premiums are again increasing by double-digit percentages and how gatekeepers will play a reduced role in managed care plans. In addition, a business profile looks at a local occupational medicine provider and how it works to reduce the incidence and cost of workplace injuries. Because manufacturing is so important to the Charlotte region, we h ave included business profiles on a hosiery manufacturer in Concord and an engine parts rebuilder in Charlotte. In each case, the owners have fought to survive the changing economic environment and build a future for themselves and their employees. Greater Charlotte Biz invites writers and opinion leaders to submit their individual perspective and vision on major issues facing our region. We will select input that we consider valuab le and helpful to advance the public debate and discourse. While we are not likely to agree with every published editorial, we will demand that each author conuibute new information and consuuctively engage the community in the issues. We want to serve the greater Charlotte region in support of its business growth and to protect and enhance its quality of life. We hope you enjoy the editorial content of this issue of Greater Charlotte Biz and that you are challenged to participate in propelling our region forward to become a major player in the international marketplace. Please call me with your thoughts and ideas. I look forward to hearir.g from you and to advancing the public dialogue on major issues confronting the Charlotte region. Thank you for reading Greater Charlotte Biz. John Paul Galles jgalles@greatercharlottebiz.com Phone: 704.676 .5850 Fax: 704.676 .5853

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......... let's hear it for the u n ive rs ity of charlotte! If a rose by any other name would smell as sweet, would a university by another name be the same? Recently, some students proposed changing the name of University of North Carolina at Charlotte (UNCC) <www.uncc.edu> to the University of Charlotte. They're tired of sport commentators consistently getting the school's name wrong and figure the University of Charlotte is a better name that more succinctly and accurately promotes the school's identity. There is some precedent within the state university system for different school names, for example Appalachian State University (UNC Boone) and East Carolina University (UNC Greenville). And from a branding perspective, the complaint has some merit. UNCC still sounds like the extension campus it started out as in 1946. UNCC didn't become a four-year school until the mid-1960s, and the name still exudes a sense of second-class status. It could be worse. In the 1970s, when business leaders in Indianapolis pushed for a state university campus for their city, school officials at Purdue University and Indiana University successfully defeated a new school by developing a joint venture. The result? "Indiana University Purdue University Indianapolis", more affectionately known as IUPUI and pronounced "oooeepooey." Of course, UNCC is far from an extension campus. It's the fourth largest of the 16 institutions that make up The University of North Carolina system, with enrollment expected to grow to 25,000 students within the next 10 years. More importantly, it is the only one serving Charlotte's 13-county metropolitan region. The school plays an active role in attracting businesses to the area. According to John Biggs, chairman, president and ceo ofTlAA-CREF, the promise of a partnership between the company and the school was a major factor in choosing Charlotte over Tampa, Fla. The company will open an operations and customer service center in 2001 that will eventually employ 1,000 people in University Research Park, near the school. So does it really matter if some out-of-town sportscaster can't get the name right? Actually, the issue is much larger than that. As a growing metropolitan area, greater Charlotte needs a well-respected research university in its backyard. The success and stature of UNCC is vital for continuing to attract businesses to the area, providing a skilled workforce and enhancing the lives of area residents. UNCC is not the only game in town. We are fortunate to have a wealth of excellent two- and four-year institutions. They contribute a great deal to this community, and we need to support their endeavors. But as the area's state school campus, UNCC is our flagship institution. UNCC must carve for itself a strong and unique identity. The school is headed in the right direction. Last May, it launched a new doctoral program in Information Technology that complements its well-respected graduate program in engineering. UNCC will also be establishing a new College of Information Technology, and is proposing a public-private partnership aimed at developing a science/ technology and research complex on campus. These are the kinds of initiatives UNCC needs to become a premier university in the country, but they won't come easily. UNCC has always gotten the short end of the stick when it comes to state funding, and the state university system is facing huge costs just to maintain existing facilities. If nothing else, having a University of Charlotte further establishes the identity and credibility tl1at this region needs to compete in the world marketplace. Tim Parolini tparolini@greatercharlottebiz.com

march 2000

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biz news and notes from around the region

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[biz

digest]

regionalism the key to future growth

charlotte area gets branded Leaders of Advantage Carolina have unveiled their branding The new Charlotte USA logo just appeared in public on initiative, "Charlotte USA." The new bran identity is designed banners at the ACC tournament at the Charlotte Coliseum to promote the Charlotte region with a consistent and ~and in newspaper ads throughout the region . In the comunifYing "gion•l b"nd id, ntity. On• of I fl•g· ~ ' . . _ , . ing mon!h,, !h, new logo w;]J likely b, •do pled by ship initiatives, the new image campaign is the various public and private organizations marketing result of nearly a year of planning and collabora.Jill'~ the region. The campaign is part of an overall movetion among leaders in the 15 cou nties sM ment to promote regional cooperation that make up the Carolinas ~o~TE in attracting and retaining businesses 1 ~ and solving issues that transcend local Partnership. "We have identified a brand message boundaries. "Whether we're in Raleigh, that positions Charlotte as a superior place to live, Washington, D.C. or London, we succeed as a region when we speak with one voice," noted McCrory work and visit," said Charlotte Mayor Pat McCrory, in announcing the new brand. "As a region, we depend on flagship champion for the regional brandi g initiative. "In the region, we have a cnique balance of business strength, each other to succeed." global accessibility and high quality of life. That is the promise Advantage Carolina leaders emphasize that the new mark is designed to complement existi ng marketing efforts. that we can offer to the cit:.zens of the Charlotte region and More information is avai lab le at <www.charlotteusa.org> . the rest of the world. "

u An T 1

uSA 1

local job growth continues Job srvwt11 rn t9991n the a...totte reston outpaced state. J'ellonal and natlonll-.a.. based on preliminary estl....- fram the aw.u of Labor Statistics. Jobs n the ...., metro counties meuured - Medllenbur& Cabanus. Union, Gaston, Uncoln, Rowan, N.C. and York County, S.C. -lnaased by 4.3 pertent IMir 1998. Stablwkle, jobs lnaasecl2.45 percent. 1be Southeut reston pined by 2.3 perant. while nationwide, the Job-1rowt11 rata came to 2.l percent. F1nal numbers won't be available until earty nut year.

cost estimated at $677 million

rural task force makes recommendations The North Carolina Rural Prosperity Task Force

estimated to cost $677 million over a

<www.ruraltaskforce.state.nc.us>

period of five years, are included in the

has released its final report aimed at

blue ribbon panel's recommendations. "Rural North Carolina matters to all of us, and we must make sure that we have equal opportunity for everyone in this state, regardless of where he or she lives," said Erskine Bowles, former White House chief of staff and chairman of the task force . (See page 20 for guest column

boosting the economic climate of rural North Carolina. A total of six initiatives,

by Mr. Bowles.) see

task force on page 10.

new biz group targets internet community First Round <www.firstround.org>, a new business networking group founded by Jim Roberts (pictured), is trying to promote the Charlotte region as a dot com friendly environment. Roberts says the group attracts what he calls the four ingredients for Internet success: the dot com entrepreneurs, the venture capitalists, the design firms and the media. Roberts hopes the organization will be the focal point for venture capitalists to find local dot com companies. "We have lnte.met companies having to go out of Charlotte to get funding when we are the second largest financial center in the country, " he says. "It doesn't make sense." The group meets every fourth Tuesday of the month at the City Tavern on East Boulevard. Seating is limited. For those unable to attend, First Round publishes a white paper on each meeting on its Web site. "This is not meant to be an exdusive, elitist type of event," he says. "This is to be a very open group that people can learn from ."

[biz

digest]

more biz news and notes from around the region

. ... .... ... . . . . . .... .. .. ..... ... .. . . .. ..

task force, continued from page 9. The six initiatives are as follows:

other interested parties are working

transit update

together to shape the future of agriculture

While plans for the Mecklenburg County's light

in the state. Boost North Carolina's 1. Information Technology

agricultural communities by marketing,

Provide high speed, reliable,

increasing value-added production

affordable Internet access to every

capacity and researching and planting

home and every business in the state.

rail line from Pineville to downtown roll along, groups in the northern and northeastern parts of of the county are positioning themselves to be the next corridor that's developed. In northeast Mecklenburg, the nonprofit

promising new alternative crops.

Tryon North Development Corp., UNCC and a

Start an organization called the Rural

5. Infrastructure Improvements

transit officials to abandon their current plans

Redevelopment Authority that would have

Provide rural North Carolina with

local arm of the Charlotte Chamber want

2. Rural Redevelopment Authority

for a busway to University City. Instead, they want a commuter rail to Cabarrus County to

the money and mandate to finance rural

the water and sewer, affordable housing,

better serve UNCC, Lowe's Motor Speedway,

economic development projects and

roads and rail it needs to compete for

Blockbuster Pavilion, and the Philip Morris plant.

invest in rural business development.

and sustain economic development

Their interest has alarmed mayors in Huntersville, Davidson and Cornelius, who

3. Educati on, Train ing & Retraining Improve the education, training and retraining of rural students and workers to prepare for the jobs of the next century.

opportunities.

6 . Building Community Capacity Create an initiative designed to boost leadership in rural communities, improve their ability to design and carry

4. Agricultu re Ensure that North Carolina farmers, agribusiness leaders, researchers, and

figured they would be second in line. Their towns, which sit alongside a little-used Norfolk Southern freight line, have implemented landuse plans that concentrate development around future transit centers and have spent millions buying land near those futu路e train stops. A decision on which area will follow

out community development projects and

Pineville will be made next year by the

find funding to help with implementation.

Metropolitan Transit Commission.

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april 2000

greater charlotte biz

OccMed@COS An Affiliate of Charlotte Orthopedic Specialists Does your company need the benefits of a dedicated medical staff without the high costs? Your solution is OeeMed@COS.

OeeMed@COS is a comprehensive occupational and corporate health service now available to area employers, employees and insurers.

Occupational medicineand only occupational medicine OeeMed@COS is the only dedicated facility in the greater Charlotte region that provides occupational medicine services

exclusively. A medical staff Charlotte knows and trusts Though our occupational health practice is new, DeeMed's staff of specialists has years of local experience. Our main physicians are: • Allen R. Edwards, M.D. • Eve N. Hanna, M.D. • David M. Peterson, M.D.

We'd like to tell you more. Call today to schedule occupational medicine services in any of our convenient locations: Main Office 1915 Randolph Road, Charlotte, NC (704} 330 -1 700 Piedmont Office 9203 South Tryon Street, Charlotte, NC (704} 588-1265

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Matthews Office 1450 Matthews Township Parkway Suite 250, Matthews, NC (704} 330 -1710 Lake Norman Office 156 Centre Church Road, Suite 102 Mooresville, NC (704} 330 -1727 Huntersville Office 16525 Holly Crest Lane, Suite 120 Huntersville, NC (704} 330-1722

Let our doctors assist you in promoting health and safety in the workplace. For any additional information or questions, call

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more biz news and notes from around the region

............. . . . . .. . . . ......... . .........

uncc goes high-tech U NC Ch arlotte will be th e fi rst college in tl:e Carolinas to establish a separate college devo ted entirely to the study of informatio n tech n ology. Th e school's Boan:l of Trustees approved plans receatly to create the n ew College of Idorm a tio n Techno logy

<wwv.sit.uncc.edu>. Th e college will h o use the univ::rsity's Department of Com puter Scien: e an d a second dep a rtm ent, whi ch will : x us mainly on software and inform atim systems technology. It will be h on:e to abo ut 700 undergraduate a nd gracLate students enro ll ed in existin g IT p rograms. In related news, UNC Ch arl otte and Ioca: b usiness leaders are also studyi ng the p:>ssibility of a public- private edu cati o n a nd research center, dubb ed The Millen nia! Campus. Th e center would b e rv:>deled after N .C. State University's Cen tennial Campus, which m ixes priva e offices with gradu ate labo rato ries and ::lassrooms.

film industry vibrant locally, down statewide Film making and video production in the Charlotte area generated recc rd revenue in 1999. The filming of six major films and television productions and other locally produced projects generated $156 million in direct expenditures, according to Marcie Kelso, film division director for the Carolinas Partnership. But while thE industry had its best year locally, spending statewide in North Carolina has dropped three percent in the past three years to $300 million in 1999, according to the N.C. Film Office. State officials say North Carolina and other states are losing rTillicns of potential film revenue :o Canada, which offers substantial tax rebates. Governor Jim Hunt's Film Task Force recently recommended incentives to film and TV producers who shoot in the state. Among the task force's recommendations: • Create a $5 million pool to offer incentives to producers. Productions that spend a yet-to-be-determined amount of money could get back 15 percent of the wages paid to N.C. crew members, actors and extras. • Waive state hotel taxes for film crews after 30 days. • Prohib it fees for filming on any state property. The Charlotte area's film and TV industry brought in more mo ney than Wilmington last year for the first time since such figures were kept. Me . Gibson's movie "The Patriot" , filmed primarily in York and Chester, S.C. coulties, provided a $30 million boost for the 15-county Charlotte region, which stretches into South Carolina. About $27 million of last year's regional revenue from the incustry was attributed to service companies based in the Charlotte area, while another $80 million was generated by sports production , film support and post-produc tion services .

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[biz

profile]

by nethea fortney rhinehardt

........................................

reinventing the business When a market shift threatened his company, North Carolina Small Business Person of the Year Charles Fonville didn't just save the business.

He reinvented it. Again. harles L. Fonville, Sr., got a little t eary-eyed when t he Sma ll Business Administration named him the North Carolina Small Business Person of the Year for 2000. After all, he wasn't trying to win accolades. He just felt obligated t o give

his employees his best effort. In little over a year, Southland Rebuilders (now Sou t hland Remanufacturing.) has increased its workforce , expanded its business, and grown over 20 percent. All of this in spite of the fact that in 1998, the remanufacturing aspect of the business was in danger of closing its doors. Charlotte, .C.-based Southland Rebuilders was once a Ford authorized rebuilder and distributor of automotive electrical parts, and a distributor of a broad array of remanufactured parts to Ford and Lincoln-Mercury dealers. In 1997, however, the Ford Motor Company began to eliminate its national rebuilders program, putting South land's remanufacturing plant in jeopardy. Ford decided to contract with Southland only for parts distribution, which required a much smaller workforce and left the remanufacturing plant quiet. Many Ford authorized rebui lders shut down, closed plants, and laid off employees. But Fonville wasn't so hasty. "I stood up in a meeting and said, 'I'm probably the craziest guy here, but I'm go ing to b uil d a big warehouse." Despite the bleak outlook for the remanufactu ring operation, in 1998 Fonville

ap ri l 2000

poured $3.5 million into a new wareho use facility to accommodate their growing Ford distribution contract. â&#x20AC;˘1 didn't know what we were go ing to do with the [reman ufacturing) plant, but I was sure we'd find something." That something wasn't so easy to come by. Fonville had strict requirements for his remanufacturing operation. "I didn't want a contract," says Fonville. "Co ntracts have a way of coming and going." The company created a company profile of Southland's remanufacturing resources and launched a search throughout North America and Europe for a partner. Unbeknownst to Fonville, Freightliner Corporation <www.freightliner.com> was shopping for joint venture partners to remanufacture automotive parts in different product categories.

greater charlotte biz

Vl 0:: 0::

0 ~ UJ

z ~

Charles Fonville Sr, daugater Amy Owen and son Charles "Chuck" Fonville }r. run the family's growing b~'?'SSinter?:5ts..

greater charlotte biz

~ pril ~ 000

Freightliner was executing a strategic plan to produce a new line of truck automotive parts under the Alliance brand name. Southland's company profile landed on the desk of the president of Freightliner, and Fonville met with the company in June 1998. "After our first meeting, there was never any question in my mind that we were going to do a deal with them. " The deal was a 50-50 joint venture between Southland and Freightliner to remanufacture electrical parts for heavy duty trucks to be distributed by Freightliner.

"Instead of closing the plant, you realize that your assets in terms of people, systems and processes can have value in another situation." -

c..

making the grade Trade associatio"s, ch3mt'=-s oh:c:nm.o :>:E anc bu~ir3s or91 il31: i on ~ freq uent({ sponsor candidates "o· SEftSma?l!Jusi; =:ss Pec.soa ofthe YEcr. Sp.1n5ors su bnit 3 no'llinatic n oackas-e tc t1e 1earo:sf S3P. :ii5-trict offi+:e br r eviu:.: nd selecrion ~ each di5::tricrs Sm=:U BJsiress .A.dvisory ==unci[ r4omil1ation pa·:~ ges are :hen 5en: to ·egio1cl SBA offices and prepared ;01 trans111ittal tr: the SE t. O~fi c E of Acviso'Y Co Jncils fur revie'h Se .ecticn •:rite ric: tor Small Eusi- es;; PE·so1: of the "l'!:!.cr 3re: • 513¥ n:s pc•wer. • Grm1tl1 in mbt-r :>f er~ oy=e5. • ln : rease ir sales a- d, or unitvclurr-e,. • Cure!I ard pas~ fhandal •epo-ts. • ln1o.~ative -product cr s;: ·.tee. • RE :;: onse :<1 ad .. er:: it). • Cc ntributi =-s b 11 n•: m·nee ·o ai::l :ornmunity-e:lienled projects. The national Smal! Busir..ess Perso." o.Fc,-;e tear <:!: i"fe!l as tw:> uwte ·s-up, are selectee by :he SBA Admiristrator:b3se j C<fl th-o recomme n dat:i.or~ o" t he Natio 1al Ad"Jisor~ Council a 1C are c r IOIJOCE j dL ;- g Srr all Eusiness V}~k. Srrall Business \.Vo:~l( (M3'!" ~1-:;:7, 200ot recog~ize ;; c Jtstanci"g small bu!:in e:;s. o'Mlers for t1eir o::rso1al :Khie·/'emtrrts :wd :o,tr"l:u: ons to 1 l nation's economy. One outstanding entret:Jre,eur is n3mec to rep · =.;ent eac1 sta1e, l: 1e Distri:t of Co umbra, PJerto :tico anc t.uam as the :;tate ~at Busin ess Per;;:m of the Year. From th is gnup, : ·,e natior=l Smt1~ ous~ress Pcrsv.1 cfthe Yec is cho:ien . >our<e: ST;;l 3Jsi•ess Aciniri;t ·a· iol

apri. 200:

Charles Fonville

Yet the deal wasn't signed until March 1999, which left a lot of down time for employees. Fonville wisely kept the channels of communication open between management and his workforce. "We didn't lose people in the transition because I communi cated to them what was going on. They knew we were trying to make something happen, " notes Fonville. "I wasn't ignoring the problem and I wasn't ignoring them. " Still, as Ford wound down their remanufacturing needs in late 1998, plant employees turned t housekeeping and other busywork. During the weeks of uncertainty, Fonville never dosed the plant, retaining every employee. Many workers had been with Southland for over twenty years. "I felt obligated to my employees," he reflects. "They are our biggest asset." The original company, Southland Rebuilders, evolved into two distinct and separate companies. Fonville created Southland Dealer Services to handle the new expanded Ford distribution contract. Southland Rebuilders was renamed Southland Remanufacturing, to reflect the partnership status with Freightliner Corporation. Instead of losing his business, Charles Fonville

greater charlotte biz

had ga ined an additi o nal one. He marvels at th e outco me, "I felt wo nderful th at we were abl e to come up with a new activity fo r the plant, keep peopl e empl oyed, and expand that wo rkforce. We had about 23 people in remanufacturing at the tim e; now we have 50." He co ntinues, "If you hit a bump in the road, sometimes you can tum it into an oppo rtuni ty." Fo nvi ll e certainly wo uld know. This wasn't the fi rst time he had reinve nted Southl and Rebuilders. In the earl y 1990s, the co mpany earned nearly 75 percent of its revenue fro m remanu factured Fo rd engines. Sensing overcapacity, Fo nville o pted to exit th e engine business and re-en gineered his p lant toward electrical parts. Thi s majo r shift required a substantial fin ancial outlay, but Fo nville beli eved this directio n was the best strategy for longevity. This decisio n turned out better than Fonville ever rea lized; Ford began to wind down its third-party co ntracts and ended its engine remanufacturing program a few yea rs ago . o nvill e credits his seemingly boundl ess energy for sustaining hi m du ring th e tough times. "Because of circum stances, certain th ings did or didn't wo rk out. But I'm an optimist," he says. "If yo u're creative enough, instead of dosing the plant, yo u realize that your assets in terms of people, systems, and processes ca n have value in ano ther situatio n." Stayi ng ahead of the curve, anticipating and respo nd ing nimbl y to cha nge has been Fo nville's greatest asset. He co nti nues to press ahead to better positi o n his compan ies in the auto motive industry. Southl and Dealer Services, the Fo rd distribution unit, and Southl and Rem anufacturing, the Freightliner venture, have invested h eavily in e-co mm erce. Fo nville explains, "We wa nt to be mo re respo nsive to th e dealers we serve. They should be able to check o n and o rder parts twe nty-four ho urs a day, seven days a week. With e-co mmerce they ca n do that. " Remanu facturing is actually a two-way business. With a ready fl eet o f tractor trailers, Fonville's co mpany delivers rem anufactured parts and also >

greater charlotte biz

Whittman-Hart provides enterprise-wide e-Business solutions for fast growing and middle-market companies. We will help build the essential connections between strategy, marketing and technology so you can Envision your e-Strategy, Engage your customers, Empower your employees and Extend your enterprise. To learn more, call 800.426.7767 or visit us on the Web at: www.whittman-hart.com.

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the mechanics of remanufacturing Remanufacturing is synonymous with rebuilding when used in connection with motor vehicle parts and systems but not the entire vehicle. A product is considered remanufactured if: Its primary components come from a used product.

picks up cores (items to be remanufactured). "We have to retrieve those; they are valuable. It's a 360 degree business. " In tum, Fonville sells cores to other remanufacturers. The company also sells Motorcraft, Ford Accessories, Ford Chemicals and other products to its Ford and Lincoln-Mercury dealer customers.

The used product is dismantled to the extent necessary to determine the FO~ilE,ABURUNGTON,N.C. NKmffi, ~D

condition of its components. The used product's components are thoroughly cleaned and made free of rust and corrosion. Missing, defective, broken, or substantially worn parts are either restored to sound, functionally good condition, or are replaced with new or remanufactured used parts. The product is reassembled and tested to determine that it will operate like a similar new product. A remanufactured machine often has a renewed life expectancy equal to the original rrachine. With engineering modifications and improvements, it can even outperform its original state. Remanufactured alternatives cost significantly less than new counterparts and are considered the ultimate form of recycling. The estimated total annual sales of 73,000 remanufacturing firms is $53 billion. Source: Remanufacturing Industries Council International

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april 2000

out in real estate. After graduating from Davidson College, he did a tour of Army service before returning to his hometown . He followed his father's footsteps into real estate but found the economic activity of then-sleepy Burlington lacking. He moved to Charlotte in 1959, working as a salesman for National Cash Register Company for nine years. After a stint at Interstate Securities, Fonville went to work in his brotherin-law's corporate financing operation. In 1972, Fonville spun out on his own. "I founded Fonville & Co. in April 1972 with $2000, a smile and a shoe shine," he quips. Fonville & Co. was a corporate financial consulting firm specializing in mergers and acquisitions and financing. In the early 1980s, Fonville acquired Southland Rebuilders from the Sherrill family, owners of the S&W Cafeteria chain. Fonville then set up Southland Rebuilders under the corporate vehicle, Fonville & Co. Fonville & Co. is now the umbrella for other businesses as well. Fonville's present holdings include Southland Remanufacturing and Southland Dealer Services, as well as Hi-Tach Oil Co. and other entities. The business fiefdom also contains numerous real estate holdings and significant venture investments. Fonville is proud to count his children as key figures in his daily operations. Daughter Amy Owen, a Morehead Scholar and Darden Business School alumna, is vice president. "Amy has been very involved in strategic issues," he says, referring to the company's new direction . His son, Charles Chuck), a Davidson graduate, has also strengthened the company's management team as vice president of sales. Fonville is a hands-on manager, rarely at his desk and usually among his greater charlotte biz

employees. "I enjoy creating opportunities for people, watching them grow." And grow they do, as Fonville plans bigger and better things for the Southlan business units and Fonville & Co. "The automotive industry is a mature industr,r and we are exploring ways to diversify." Part of that diversification strategy is exemplified in Fonville's recent investment in an Internet company. Earlier this year, Aida Alvarez, head of the U.S. Small Business administration, announced Fonville's award. He will go to Washington, D.C. the week of May 21 -27 as the North Carolina Small Business Person of the Yecu for 2000 to compete against 52 other winners (50 states plus Washington, D.C., Puerto Rico, and Guam) for the national award. Fonville contributes to the community through various charitable organizations and posts. At age 64, he certa inly isn't slowing down. "I do n't have any plans to retire."

vital stats Charles Fonville, Sr. Age:64 Job: President Company: Fonville & Co. dba; Southland Remanufacturing, LLC Year Founded:

Southland's new $3.5 mi/fll()n distribution center.

1972 Fonville & Co. 1953 Southland Rebuilders (Southland Rebuilders was acquired by Fonville and Company in 1986) Headquarters:

4450 South Boulevard • Charlotte. NC 28209 • 704-525·9990 Number of Employees: Southland Rerr:anufacturing, LLC: 50

2000 Estimated Sales: approaching $30 million Eaucation: Davidson College- B.A. History

Nethea Fortney Rhinehardt is a Charlotte-base :I freelance writer. She has pre~"iously profiled

Family: Wife, Doris

Children, Amy and Charles

Theckla Sterret and Vicki Wiason-McEireath .

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april 20 0 0

[guest

column]

by erskine bowles, managing director, carousel capital

. .... .......................

rural north carolina is in crisis! "So why should those of us in Charlotte care?" It was Parks Helms asking the questio n after I'd finished speaking at a meeting in Charlotte. And it was a question I'd been

After listening to 400 people at ten publi c hearings across the state, sorting t hroug h more than 1,000 pieces of mail, pro-

expecting ever since I agreed to head up a Task Force looking into how to revive the state's rural economies. First, a little bit of background about wh y it came up. Ni ne month s ago, I stood with Governor. Jim Hunt, House

cessing ideas posted on our Web site or over the ohone and having peop le stop us on the street, the Task Force members rea lized t hat the peop le of North Carolina had all the ideas we needed . Our jo b was to narrow the ideas down to six big ones- six ideas we

Speake r Jim Black and Senate President Pro-Tem Marc Basnight as we announced a gro up ca lled the Rura l Prosperity Task Force http:jjruraltaskforce.state.nc.us. Since t hen, I've been working with a bipartisan grou p of 24 other North Ca rolina leaders to

think will make a real diffe rence in the short and long-term :

develop a blueprint for rura l redevelopment. No questio n: rura l North Caro lina is in cris is.

0 Layoffs are accelerating as our state's economy joins the world economy. Last year 32,622 peop le lost their jobs due to pla nt closings and perma nent layoffs - a 43 pe rcent increase. Most of those layoffs came in rura l North Carolina . And

1. Provide high speed, reliable, affordable Internet access to every home and every business in the state. In the next five years, no small company in rura l North Carolina will be able to do business with a big compa ny unless they can do it electronically. You wo n't be able to do business with the state or federal governme nt. But if you have access to the Internet and know how to use it, you can do business anywhere in the world.

2. Make sure rural counties and companies have access to a source of funding they can use to fuel

- 71 percent of the remaining

growth by

manufacturing jobs in rural North Carolina are in "traditional" industries- textiles

creating a Rural Redevelopment Authority with the

and apparel, lumber, and furnitu re manufacturing, all of which are suffering the inevitable effects of technology an d globalization.

0 Commodity prices are at a 30-year low. Prices for corn and hogs are down more than 40 percent. When we started the Task Force, some estimates were that prices wou ld return to normal in 12-18 months. Recently, however, the World Bank specu lated that in our global economy commodity prices might never return to earlier levels.

0 Our tobacco economy has been devastated. What was a $ 1.2 billion crop in 1997 will be a $640 million crop th is year. That mea ns the payc hecks of tobacco farmers have been cut in half over t he past t hree years. The combination of t hese three facto rs has left our rural economies beaten up. Add in t his year' s flood ing, the worst natural disaste r in our history, and things are eve n worse. Rural North Caro linians c.re clearly seeing their revenue base erode and t hat means their communities are less and less likely to invest at just t he time when t hey need to invest mo re - in education, infrastructu re and economic development. Rura l North Caro li na is caught in a t errible downward spiral as we enter the 21st ce ntury. The question our Governor, Senate President Pro-Tem and House Speaker asked t he Task Force was, what could we do that

could make a long-term difference without breaking the bank?

a p ri l 2000

money and the mandate to provide equity capital for growing rural businesses . We know there are companies looking to locate in ru ral North Carolina if we have the right buildings and services available. We know there are other firms already in rural North Carolina t hat are ready to take off if they can get growth capital. Here's how we propose to do it: with $15 million from the state's unexpended reserves , we would ra ise $30 million from our banks . We can use that money to set up a Small Business Investment Corporation (S BIC), which wou ld qualify for $90 mill ion do llars in matching funds from the U.S. Small Business Admi nistra tion. Businesses cou ld then leverage that $135 million in funding 2:1, mea ning we wou ld have effectively $400 million avai lable fo r use of small, growi ng rural businesses.

3. Ensure that our rural people have the quality of education, training, teachers and retraining they need to compete in the marketplaces of today and the future. As forrrer Mississippi Governo r Willia m Winter wrote recently: "The road to prosperity goes right by t he schoolhouse door." In North Carolina, that road makes a sto p at our community college and university doors too .

see rural prosperity on page 43. greater e1arlotte biz

{And) Fortunately) We)re Willing To Share. } Fr0m Shelby to Salisbury, Chester to Taylorsville, the Charlotte region is ~ unique area where bu_inesses not only work with each other, but wi:i people. Where both the highways and skyways lead, attracting innovation and success. Yet despite the hustle and bustle, we still boast pleasant neighborhoods and inviting scenic beauty. S i"11ply put, this is a region that offers an 11nparalleled "balance" of blGiness strength, global access ibility, and exceptional

qr~a lity

To ass ist us in doing ju;t that, a. uni - in搂 theme and symbol Charlotte USA- has 路Jeen de\elored. ?osttive and proactive, Charlotte USA helps U3 say so nu c <, ya so co nci;ely, to virtually any co nstituer.cy. To tle business and international communities, it positions our region as 1 n: a_1or world market; to our visitors and tho ~e of us -vho live here. it ca ptures our hospitality and warmth.

of life.

Wich the city of Charlotte as its hub, our region is strengthened by the re~urces of all its communities. The result is an ideal mixture of urban am r ural, encompassing cities and counties in both North and SCJ.Jth Carolina. This balance our region enjoys is a tremendous asset. As a matter of fact, it's what makes us stand apart. Therefore it is important to not or:ly embrace this message, but to promote it with every interaction ard impression we make.

However, rest assured th~t Charlctte USA is r:ot meant to replace existing marketing efforts, bJt rather co=-.pleoer:t the quity of the existing messages,logos, and taglines we ill cmrently use. The fact is, the more unified we are, the stronger we will be. No, our region is not perfect. But a powc.rful toundation has been laid. In order to position the Charlot:e re5ion. well in the emerging global economy, we must continue :o v.ork lS a. 路eao. The result will be a healthier economy- aru, most impona.n~- a better life for all of us who live and work here in Charbtte USP._.

((j..., CHARLOTTE~

USA

- - - - - - - - - - - - - - - - -

[biz

feature]

... .. . .. ... . . ...........................

health care crisis:

caught in the middle Confounded by a reduction in Medicare payments, pressure from managed care providers and a growing demand for new drugs, health care costs are skyrocketing. And businesses will pay higher premiums.

april 2000

greater ch a rlotte biz

mployers are facing double-digit increases in

Reducing Your Health Care Costs

health care premiums. In today's tight labor market,

lf·~o> u

that means either absorb the costs or risk losing

are overwhetrre:l by

~ rising

costs oft- ea lt h care

ctwerage, take h::!att Ji :'!re

valuable employees. "Balancing the fact that cost

a r? a few ideas t:l at l: a st

is a high priority with the fact that employees require good access

l essen the impact.

to health care is presenting some real challenges," notes Brian

• J:. your homewo -k. Cal h ~ a lth ca-e provide-rs and te-ll th .: ll" ~ou

Lemoine, who leads the Integrated Health Group's consulting and

~ant

business activities of Deloitte & Touche <www.dttus.com> in the

information abcut

poi -ts, physician an·: spEd 31ists' que.j fications and : t-arge3 ucture.

Carolinas. "Those are the two things employers need to assess in

•

choosing a health care plan ." Making the job more difficult is the

; rployee~·

utilizati : n i.; th ~ key to

m~ i -.taining costs.

fact that options for health care plans in the Charlotte region continue

e5~i1 ated b~

greater charlotte biz

Th'"t's r "J.J it is

the ins~a 1 c~ o mpanies.

Ea- .; screen ng and i 11pr()l(~ lifestyle

to diminish as companies merge or leave the market altogether. The year 2000 is shaping up to be a difficult one for area businesses shopping for health care coverage, as well as for the health care industry itself Business owners throughout the greater Charlotte region can look fmward to fewe: health care plan options and double-digit premium increases. The issues that set the sta5e for this crisis haven't been resolved and will continue to drive changes in the marketplace. Looming on the horizon is the spectre of federal Patients' Bill of Rights legislation that could push prices e~n higher. Each sector of the health care industry is facing its own challenges, and the situation is likely to worsen before it improves. The insurance industry continues to modify its health care coverage models, even as local managed care companies struggle for market share. Meanwhile, most carriers are raising premiums significantly to offset increasing costs. Health care providers, on the other hand, are being squeezed by a reduction in Medicare payments, increasing price pressures from managed care providers and escalating drug costs. They will have to continue to look for ways to cut costs and improve efficiencies. The end result is that local businesses and their employees will be facing higher costs and fewer options.

a.:c~ ss

'lab ts should be re~L i re d 3..> j:art of the -t£j onship with the

Insurance Changes Tack Kaiser Foundation Health Plan Inc.

J rovij ~.

• (:.nskler increas n5 ~our Jlan

exited the Charlotte marketplace last

j sluct ble or increasing-

year and they aren't likely to be the last

:! ..

r loyee

managed care group to go. "One of the

::or : ributions. lnst.rLnce : •Tpanies

things we have seen is that the health care

:f£ -ge more for plar s wi-

options in the Carolinas have decreased,"

::Ed.lctibles to

says Lemoine of Deloitte and Touche.

Lt lzat ion.

c wer

cov~rincr ~c.:.; ed

"And they are going to continue to decrease. The major players - United

• If : our plan does not req_ ire

HealthCare, Cigna and Blue Cross - are

p: certification for 1pat ~ 1t

going to stay around, although Aetna

p -.: :edures . add it n is u;g lj not

right now is in a state of flux. "But I'm not sure that within the

(I"

d ;cou•age long

next five years companies like the

u-recessary

Partners, WellPaths and Qualchoices of the world are still going to be in the

ho~i t alstDts

and

proced .n~ s -

• \"akE pre·1entior prt c' ~ our •:ct Jorate culture. C-eate en ~nviron

managed care business. " That would mean fewer companies from which

, : ,t that fosters a proalt ve view of

businesses might choose an appropriate

I'IEclth. Also, asses.; !QUI ~ h·t sical plant

plan. Managed care companies will

a~ c

also continue to move away from the gatekeeper model in favor of point of service and preferred provider models. Changes in coverage models are coming, says Bob Greczyn, president and ceo of Blue Cross Blue Shield of

employee worl: ~ 3bits kJ 11ake

s_ P- ycu are doing as mue1 3Syou can to :duce if1uries an c. i

ln !!~E.s.

• R?gardless of the si.:E J l your basi ness, you may be at: et o

North Carolina. "There's a movement towards more choice because people

ne£<)ti 3te direct disco Jn-:s. =rnm

a 'Tiers as well as a.re3

are demanding it, " he explains. "And as that happens, medical costs go back up."

to, lower your prer ium. =ut also

t-~ lt h

<t.'= providers. c:pri

2000

Robert J, -:irec.z·tn . Jr. President, 3 .. e Cross BlueShie j oll\orth Carolina Blu ~ Cr:m Blue Shield oft- orth Carc·lina <'N'..,.,.bcbsnc.com>, tht: state's largE:st !Ea_th imurer, enjoyec a financial turmroliJC. it 1999. Excudill5 te::hnology and Y2K .rv:strnents, the conpany repcated ·:O pEati:Jg income of $2:>.8 milL on, c_ S:C3 milli n impro ;ement over the previous -it: a . "Last year v•as 3. turning poir:t for 3aL~ ::::oss Blue Shield ::Jf North Carel ina. ·. 3C::: d Greczyn. He :u:l:l~ 'I don' t think choices have reall,r de:::rc<Ee:l much this year, so much

a pri l 20 0 0

as the fact that they are beginning to change." Preferred provider and point of service products are replacing traditional comprehensive and HMO models. Cross is re-designing its products to allow freer access to health care providers. For example, its new Blue Care, Blue Choice, Blue Options and Classic Blue programs don't require referrals to see a specialist. United Healthcare of North Carolina and Principal Health Care of the Carolinas already have "open access" programs, and other carriers are expected to join this growing trend. These new hybrid programs reward patients with higher coverage for choosing physicians within an approved network, but don't require a primary care physician, or "gatekeeper" to authorize visits to specialists, for example. The trade-off for more choice is higher cost. Each visit to the doctor also often requires a co-pay from the patient. Still, these open access programs have been met with a much more positive response from both physicians and

Harry A . Nurkin, Ph.D., President and CEO Carolinas HealthCare System

patients than the HMO model. "Part of it is a generational shift," says Robert Seehausen, senior vice president for managed care and business develop· ment for Winston-Salem based Novant Health, <www.novanthealth.org>, which operates Presbyterian Healthcare <www.presbyterian.org> in Charlotte. "The boomers like myself and others are more information conscious and more interested in being involved in their decisions. What the physicians are telling me is that patients have become savvier and more demanding in terms of the referrals that they want. That's why we're seeing a movement into more opened ended products." While access may be improving, premium costs are skyrocketing this year, and just about everyone agrees on the primary culprit. "You can't turn a page in the newspaper or watch a couple of ads on 1V without seeing a pharmaceutical ad," says Greczyn, "All of these drugs are being advertised directly to consumer, and people are going to their doctor's office, saying, 'I want this medicine: And it makes costs spiral." Among the HMOs that have filed for increases so far with the North Carolina Department of Insurance, base medical coverage hikes range from six to 15 percent. Costs of prescription coverage are averaging an increase of well over 20 percent. Dr. Harry Nurkin, president and ceo of Char2ottebased Carolinas HealthCare System <www.carolinas.org> has another theory.

greater charlotte biz

t\.:1d they are contin.ui~ to examine their b.sic l::usine~ ·:>peratiom. But, as Nurkin S::!JS, '"='h ere is a finite r_um.:>er of cuts you <31 mal:.e with :mt i:np=.;:ting the quality c::: care" Hospitals are fin ct g themselves s:;uee:<ed by two powerful forces over ~ich L1ey h:r;:e no cc ntrol. Th Balar.ced 3 u~el Act (BBA) of l.J97 mandatEd a red11ctin n in payments f::>m r..tedicare. "The E.BA hit the !="Ovider side of health ca re for about HOS b.!ion na:ionally over five years," Robert H. Seehausen Senior Vice President- Managed Care & Business Developmen , Novant Health

s:zys Laurence (Larry)

laurence C. Hl- sd aie , Pr~ i*n t and CEO l'! orthEa~ t lWiec cMI ~ ,IB"

=·· Einsdale, >

"Those [pharmaceutical[ companies are making 20 to 30 percent profit margin, and ours are sinking like the Titanic." Managed care providers are not likely to absorb much, if any, of the increases. That means employers are faced with the a diffi.cul: choice: raise employee contributions and risk losing key employees in this tight labor market, or absorb the costs themselves.

Providers Caught Between a Rock and a Hard Place Actually, Caro linas HealthCare System's 1999 operating income of $43 million is a three percent increase over its 1998 results. Net operating revenue for the year totaled $1 billion, topping the 1998 total by nine percent. The results exclude a o ne-time charge of $57.8 million for the system's computer conversions and other Y2K-related expenses. But healthcare providers are finding themselves in an environment where they are not on ly being asked to do more for patients in a shorter period of time, "we are also paying more for our employees, more for our electricity, more for our water, and decidedly more for our drugs," sc.ys Nurkin . "Unfortunately, we codd raise our rates 200 percent and it really wou ldn't matter because the majority of what gets paid is already fixed. " Hospitals have been intensively squeezing inefficiencies from their systems for the past few years. Carolinas HealthCare saved some $40 million from the suggestions of an employee task force.

greater

charlott~

biz

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hi10 East Morehead ~t. Chai(lttE _"C phone: 704.375.8000 fax: 70" .375.453:: april 20CO

in Concord for two years now," says Hinsdale, "and my expectation when I got here was that we had somewhere around over 20 payers in the system. M3nagement

Corp~ r at i on

wldin,q Wealth Cu:5_torr.iz:ed'Portjolio

l.~ro:Igh

Uunk!}ement

'"ee-3ased /n vest'r!ent Cif-«rS~ lo ~~

james L .J!Mt:-g

}e.fjey G. Vaughan

2915 P""cvide1ce Road, Suite 250 :: harlcne, NC 28211 Telep-r::ne: -o,. 362. 1886 Facsimi e 704 .366.5269 """''\.o..montagmanagerr.en t.ccm

president and ceo of NorthEast ~di ca l Center <www.northeastmedical.• :£> i r:. Concord. "We are still a long way f rom where we were just a few years aEo. Every hospital in the country usee to operate with a margin of between :l ve and six percent. The average is no.., two percent, so it has taken about two--:hirds of the operating margins away fro.~ hospitals. " He adds that the federal go.rernment carries a tremendous amouflt of fixed costs for hospitals, which are spli t over many payers. "When a payer :JS largo:

as the federal g::Yernment decides to actually deaea~ e its compensation in real dollars, at;~. time: when everything else is h ~aded -ama::ically northsalaries, drug co:>ts. p:ice costs - to have your bigge=t pla,.-er decide to cut reimbur5ement •as a tremendous impact. What else is lef:: on the table?'' What's left s ;:Jri-r.He payers. Unfortunately lor :to~itals, consolidation in the mauged ::are industry has given

th ~

remainicg carriers more clout

in negotiating con:ra•::ts. "I have been

I expect it to be well short of 15 within the next year. With managed care fishing on this side and the federal government fishing on that side, you are going to see a lot of hospitals go belly up," Nurkin agrees. "Unless there are alterations to the BBA that put some of the money back, and unless we have some stabilization in managed care, it is going to be tough to make a buck. Without any remedies, over the next two to three years all healthcare institutions will have difficulty breaking even. He adds, "The key for us will be whether we can maintain the appropriate access and warm kind of environment that we have had in the past and the same quality of care. Or will the patients and the famil ies and the businesses that pay for the employees begin to see and hear, 'Well, they didn't get to me quite as fast: Or, They were rude. They didn't have enough people: That's where I think we are going to have a real difficult time 18 or 24 months out in all adult care." Both insurers and providers have either launched or are planning to launch Web sites that will provide patients with basic health-related information . "Healthcare is one of the most visited categories on the Internet, with people searching for information all over the place, " points out Novant's Seehausen. "Folks are living longer, so they are faced with more chronic conditions, and if not for themselves, people are searching for information for their parents. " Nurkin says Carolinas HealthCare is readying a Web site to do just that. "There is just a lot of basi ~ information, such as what happens when a kid wakes up with croup in the night, what is chest pain and when is it time to go to the hospital. Those are the kinds o: things we can provide and are in the process of building a Web site to accomplish just that. " As in other industries concerned with Y2K computer problems, hospitals

april 2000

greater charlotte biz

have invested heavily in new, advanced co mputer systems. In th e long run, they should help lower administrative costs and improve patient care. For exa mpl e, health care providers with multipl e locations will link them electronica lly, so patients can go anywhere within the system without filli ns out new paperwork at each office:

Charting a Course With rising prices, f~wer insurers - but potentially more , ealth plan options - what should :msiness owner, do to get the most from :..1 eir health care packages? "I would probc.b ly play it up the middle with something that keeps me in a flexible point of service type product, where you are going to have some of the cost controls of an HMO, but the flexibility of a PPO, " recommends Seehausen. "Also, deterrr__ne how much money you want to spend per employee, whether it is on an indi :lual or a family basis and give them seveGI options from which to choose if you a..~ able." Hinsdal e adds that employers may have to compromise to ยง:et the features

they want. "You can look at plans that have great discounts o r plans that have low administrative fees. You have plans that have larger or small er networks," he says. "And I think each co mpany will size up somewhat differently depending on the network and their population and their risk that they are willing to take. Do you need a broader network or bigger discounts? Or ca n yo u go for a small customized netwo rk plan and lower administrative fees? It's a matter of balancing those three or four things."

"It's really a buyers market, " says Nurkin. "Insurers are looki ng to maintain business and to get new business. Emp loyees' utilizatio n is the key. Early screeni ng and improved lifestyle habits shou ld be required as part of the relationship with the provider, and you can negotiate those kinds of things. " Whatever approach businesses take, so long as the managed care industry continues to co nsolidate and drug prices rise, it's go ing to cost a lot more money to provide coverage for thei r employees.

Does Your Coverage Match Your Needs? Are yo u pay in g for more coverage than you rea ll y need? Hood Hargett makes sure your insurance coverage fits perfectly. We get to know you . And your business . Then . based on our evaluation. we offer informed recommendations . By clearly explaining options and offering advice, we help you make the right decisions. And that means yo u get precisely the insurance you need today -in stead o f coverage you have to grow into. So why sett le for off-the-rack insurance when yours should be tailor made?

HCIDD

HARGETf Property A.nd Liability Insurance Commercia.' And Personc. /374-1863 greater charlotte biz

Coverage Tailored To Suit Your Needs april 2000

[biz

profile]

by dale nixon

.......................................

a pattern of success In the male-dominated textile industry, the women of Willis Hosiery Mills definitely stand out. They go together like hand and glove; or perhaps in this instance, like leg and stocki ng. Siste rs Clare Cook Faggart, president of Concord-based Willis Hosiery Mills, Inc. , and Suzanne Howard , vice presiden t of manufacturing, always find a way to support each other. "We're a team . If I'm having a bad day, Suzanne lifts my spi rits," says Faggart. "If she's having a bad day, I lift hers. We won't allow each other to have the same bad day."

he support the two sisters give each other is an essential ingredient in this third generation company's success. Like other mills, Willis Hosiery has had to continuously adapt to the fickle nature of the textile business to survive. The company makes fashionable high-end custom hosiery products for such brands as Liz Claiborne, Jones of New York, lzod and The Gap and a private label for Marie Gray's exclusive St. John Knits. They also produce socks for the parochial school market and a variety of other hosiery products. Fabrics, olors and patterns may change from season to season, but in this male-dominated business, Faggart thinks Willis Hosiery has a distinctive advantage. "Who better to make it than she who wears it,"she reveals. And while it may seem a bit ironic that a female-owned hosiery business should stand out, Faggart is matter-of-fact. "We're accepted and respected as business people. No one looks at us as women : they look at us as professiona ls." Apparently the industry looks at them as very smart professionals. In December, Clare Cook Faggart became

april 2000

the first fema le chairperson of The Hosiery Association <www.hosieryassociation.com> . This group, formed in 1905 as the National Association of Hosiery Manufacturers, now serves the international hosiery and related industries. The Hosiery Association may have been behind the times in taking so long to have a woman as its chair, but Faggart's vision for the association is very much for its future. She hopes to use it as a catalyst to wo rk more closely with consumers and supp li ers and to share knowledg and technology. Her ability to look ahead has helped Wi ll is Hos iery survive the "feast or famine" cycles of the textile industry. For example, Faggart made the decision to move away from contract work for other hosiery mills and focus on making, marketing and distributing proprietary products. She has also utilized sophisticated technology to diversify the mill's product line, thus softening the blow of adverse economic conditions. With a constantly changing marketplace, Willis Hosiery has also had to be receptive to new products and innovations. Cabinets running the length of the conference room are stacked

greater charlotte biz

The

aJ1t!'Tag~

Amerium cams:.;:n!:'d 17.6 pairs of hosiery products in 1998. source: The Hosiery Association

with hosiery boxes full of developme~ tal ideas. Fashion magazin es are decl · ring this the year of the bare leg, s:> W .: is

ad to the future =ansidenng 1-. ow cl ·:>se Clue and 3uza.nE' c..re,

's s-_q:-ris hg th at n ::ithei

Coc•~'s

prescient vision of private

label ing la::1ded him the Saks Fifth Aven ue a::count. He diversified, putting

in p.ace a cut and sew operation and a dye:i ya rns operation. He also began ::he fr- i: busin ::ss rna. ·ng maternity hosiery and socks for Tights In A Can is another new Tie nill, pLr....has.::d in 1927 by J ~od. Ccok included his three children, concept containing three pairs of chil5fear .~:xlfather, 3d-ward King\-. ill is, Clarlc. Sozanne and Clare in the busidrens' white tights and a set of cc·lored : :> rigilk l·Tmade :u.ff SJC:<s for bids an c nes>. wm!Gng them part-time or having permanent marking pens. The c]-_il:l Dll? : ottcn. ;tx:ckin&s br l z.d i ~s. the:-:1 tag along with him as he checked draw on the tights or have friends :!raw ''Mr. C :<'- as he ·Aas kncwn in t.h _ on matters at the mill. on or autograph them. Oldest daughter, Suzanne, Faggart's aim is to find attended Peace College in out what the customer wants Ral eigh, then went into and to provide it for her, banking in the regional constantly looking to make operations sector. the customer happy with Youngest daughter, Clare, different patterns, colors . attended Salem College in textures, and creative ideas. Winston-Salem, for two yea rs Still, surviving in today's studying voice performance. textile business is no easy On the completion of her task. The industry is highly sophomore year, her father cyclical; Willis Hosiery's 144 had a talk with her. "He told knitting machines and three m e 'Clare you have a beautishifts do not always run on ful voice, but you are going a full schedule. Moreover, for a d egree in voice performeach type of machine requires ance,' " relates Faggart. " 'You specific training. With the can't teach with that degree unemployment rate at less and if you don't make it in than one percent in Cabarrus the performing arts, you'll County, finding and keeping have nothing to fall back on quality employees has been a to support yourself " struggle. Faggart and her The next year Faggart mother, Sue Cook, ceo, as enrolled at the University of well as other members of North Carolina at Charlotte, their staff, have even taken finish ed h er degree (in busiSpanish classes in hopes of ness) and took graduate co mmunicating with and courses in accounting. securing Hispanic workers. She went to work in th e Ninety percent of the business full time in 1976, company's 120 employees trading the spot lights of are female. The two sisters the stage for the fluorescent feel they do have a different Suzar?e f-.o~rd, ~-i::= j:resider.t o.r rrarufactu ·i.y. Clcre :=-c>o~ Faggarc, lights at Willis Hosiery. perspective on the female pres1dtnt; 5L! Cook, :e~J; '.1 7/.'is '-(osil:!ry Mills, In-:. Ge ne Cook passed away at employees beyond benefits th t: yu u:-.g age of 58 and Clark assumed and competitive wages. They can ty, i.lac i:\'>'o dcrughter:. ":'heir COI"TU"""" bis fathds duti es. Faggart persuaded empathize with their employees· pro:husb:L- cE.. Eu:sere "Gem" Clark Cook ber s ster t leave ban!Gng and join the and Jw:L Laffe~ took over the mi l in lems b ecause they have the sam.: prOO[amity business in 1988. theca- : ; ixti ~~ - :n adc ito n to th.:: mak.r,g Iems too . "The employees know that we In 1990, Clark stepped down as of co-Joe stoc:kir g:s, the two bouekt a will do anything we ask th em president of Willis Hosiery and Faggart maarilE :o n:.a~ pD-:yhose. to do," says Faggart."We have dLmped took over. Suzanne Howard became vice "'-'hen "t-1r. E K." passed a.~ trash and unloaded trucks." presiden t a nd along with their mother, in 1-T. . , ·.he :::::>o-<s bou5ht o u: Lhe: They have also rna e a concerted Sue. as .::hairman of the board, the two Laft~~ maki g Gene, 1is soc-ill-law, effort to operate the business as lean vrere running the show. > sis:ers and cl:ll§h.te::. Su;:, the sole 0\<1.--:l.ffS. and efficiently as possible. is busy working with a n ew spandex

•ister :: -i~ na[y intt:ndec on wcd.i::1g f::J :

product to wear with open-toe shoes.

greater charlotte biz

april 2000

your weight. If it's a dose call, go up to the next size. " Faggart would like to see consumers buy the right product for the right event- sheer or ultra sheer for evening, trouser socks for slacks, tights for daytime, and suppc•rt hose for comfort. As the chairperson for The Hosiery Association, Faggart will give her welcome and opening remarks at the Intematio:1al Hosiery Exposition on April 8, 2000 at the Charlotte Convention Center. She will be back onstage and up front. Her mother says that's where Faggart is most comfortable. "Her They have help from the usual background in the performing arts cadre of advisors: a banker, lawyer, has served the company well. She and accountant offer sound business has the knack of presenting herself advice and idance. This group is and our product to other people second only in importance to husbands, to a great advantage." Jeffrey Faggart and John Howard, who "On the other hand," Faggart lend their constant support. counters, "Suzanne can fix any mach ~ ne Faggart is a big proponent of in the miJ, Fift y-three percent of all U. S. hosiery is produced in North Carolina. rewire a lamp source: The Hosiery Association or start up teaching the consumer how to buy the the boiler. If the copy machine breaks, product and what to be aware of with we call Suzanne." As they head out the door at the the labeling on the package. "Sizing is end of the day, the two sisters give

ea::h o-_,er a 'high f.•1e " Tl:ey are a tearL I"Jld, tcdcy ey ctl:. had the a-ne good day. Dd e f/v.on is 1 Cofl cord-b ~ sec freelance writer. :he is ~he a ~ foor o.Ft.1e book H i·: i ng Home, and a wlu.TII"'isr for The (l>arlo e Observer.

' ' As a li beral arts majo r, I was inte res ted in enhanc ing my quantitative skills. But the cu rriculum 's focus o n techn ology and the global eco nomy has already increased my und erstandin g of the issues fac ing our industry. The Ke nan-Flagler fac ul ty has challenged me to loo k at our business through a di ffere nt prism. O nly partway through the EMBA Weekend Program , I'm lea rn ing to th ink mo re strategicall y, and I'm already contributi ng at a h igher level. ' '

Beth Branch I EMBA Weekend Class of 2000 General Manager, Revenue Management Maersk Inc. I Charlotte

~KENAN-FLAGLER V

BU S INE SS

S C HOOL

UNC - CHAPEL HILL

april 2000

THE UNIVERSITY OF NO R TH CAROLINA AT CHAPEL HJ U

1-80 0-4 5 3 -9 5 1 5 I CONTACT KENA

EM BA@UNC. E DU .' "W""''W. - El'.-AN-F LAG LElL Ul'iC.EDU

- F LAGLE R FOR MORE Jl'U

ATION.

grea-: E' ch c: r .otte biz

[guest

column]

by william a. coley, president, duke power

............................

sharing the power is electric deregulation good for the carolinas? o the casual observer in the Carolinas, electric deregulation over the past few years has resembled a well-watched geyser. The subject has heated up from time-to-time, caused some noise- and then appeared to cool back down again. But despite the on-and-off nature of the issue, electric restructuring is gaining ground across the U.S. and is becoming a "front-burner" issue here in the Carolinas. At the end of 1999, 23 states had decided to introduce competition to the electric industry in their respective areas. Competition has already begun in 12 of those states, with the other 11 expected to begin in the next few years. With that background, it stands to reason that competition in some forrn will also come to the Carolinas. Done correctly, electric restructuring should be beneficial for both customers and utilities. As we've seen in other industries, competition can spur innovation, give customers more options and speed new products to market- all of which should be welcome in the electric industry. On the surface, electric restructuring looks pretty simple: "Give customers a choice of electrical suppliers." But the task isn't as simple as flipping on a light switch. Regulators and legislators in both states are weaving through the complexities of the issue -trying to craft a framework that treats customers, companies and investors fairly. Also, the issue is packed with stakeholders. In North Carolina alone, there are about 100 different utilities when you combine the investor-owned, state, municipal and cooperative utilities. But in fairness, regulation and the crowded field of participants haven't done too badly. For example, Duke Power's <www.dukepower.com> electric rates are 15 percent below the national average and are lower today than they were in 1987. In today's regulated environment, electric utilities have a public-service obligation that comes with the right to serve customers in areas assigned by state regulators. Utilities build, operate, maintain and repair facilities to provide electricity to customers. In the Carolinas, they set rates in various ways. Duke Power's rates are set by the North Carolina Utilities Commission and the Sou h Carolina Public Service Commission. The key task before the two states is how to unwind the highly regulc.ted order of the present system in a way that delivers benefits to customers without causing future chaos. What should you be on the lookout for? Here are a few items:

New Players in the Mix Anytime a new market opens up, new entrants jump in. The power plant business is one area worth following. In the traditional sense, power companies generate power and then sell it to

april 2000

their customers in their assigned service areas. But why can't other companies focus solely on the wholesale generation of electricity, without having retail customers? Duke Energy is already doing that in other states such as California and Connecticut. The company is operating efficient power plants that generate power at lower prices than many local companies can produce it themselves. These "merchant plants" don't have guaranteed set rates; they don't make money unless they can produce electricity at a competitive rate. Customers benefit since their local electric company can shop around for the best pricelowering costs for everyone. This movement is also taking hold in North Carolina. The Texas-based firm Dynegy is building a power plant in Rockingham County, N.C. It will sell power to Duke Power, and also to other electric utilities in the region.

New Options and Services Buying electricity today is a "nofrills" task. Sign up. get power, pay the bill. But in an era where other companies are trying to persuade you to switch suppliers, who knows what will happen? Companies could bundle extra services together to offer customers home security, Internet service and even frequent-flier miles for every dollar spent on energy. Around the country, some companies offer "green" power- customers pay more for energy that is generated using renewables, such as hydroelectric generation. Customers will need to become more savvy to sort the good deals from the ones that just "sound" good. It will be comparable to what consumers face today in buying long-distance telephone service.

Rates: Up or Down? I wish I could give you a definitive answer to that question. The cost of generating electricity is still dependent on the cost of fuel (like gas and coal). But in practically all industries, more competition is good for customers. Competition in the electric industry opens up choices for customers. It allows efficient companies to grow and expand. As in all competitive markets, there will likely be winners and losers. Duke Power is positioning itself to thrive in this new environment. I am confident that customers will have the opportunity to be winners as we in the Carolinas sort through the variety of issues surrounding electric restructuring. The current regulatory structure of the electric industry has built an efficient, reliable and affordable infrastructure- the envy of the world. Our job is to take it to the next level- to continue to deliver the power that drives the economic engine of the Carolinas. greater charlotte biz

[biz

profile] • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

re ducing down time Seizing an opportunity in the marketplace, OccMed@COS targets the reduction of workplace injuries. Whe n another local health care provider discontinued its business health center last year, Charlotte Orthopedic Specialists (COS) and Peter Templeton, its executive director, saw an opportunity to establish their own targeted program for occupational medicine.

chall nge. empleton then met with Drs. Al len R. Edwards, d David M. Peterson, who had been with the Center for Business Health, to discuss the establishment of an affiliate program for occupational medicine at COS. Together they agreed that their combined expertise and facilities would create new opportunities within COS. The Executive Committee of COS quickly formed an advisory panel to examine the opportunity for developing this program. As a result of focus groups held with local employers, they concluded that there was no apparent industry leader with a comprehensive program for employers seeking assistance with workers' compensation and work-related injuries. They also learned that employers wanted greater communication with providers of care to employees with on-the-job injuries. With these objectives in mind COS established OccMed@COS in July 1999, as an affiliate program, to serve the regional workplaces' health care needs and to address the reduction of workplace injuries. 1

april 2000

Work-related injuries presently account for about 30 percent of OccMed@COS's occupational medicine workload. Nearly 70 percent of its activity consists of preventive medicine an consultation regarding workplace environment and job design. Currently, OccMed@COS provides employee care for between 300 and 400 employers. The group not only services work-related injuries and diseases, but also provides injury prevention training, on-site safety and health assessments, drug and breath alcohol screening and case management. Prompt service, timely referrals, and comprehensive assistance reduce employer costs. In addition, OccMed@COS offers: • pre-placement physical examinations, • vision, hearing and respiratory testing, • immunizations, • blood testing, • job design analysis and counseling, • expertise on state and federal regu lation requirements in the F workplace. Combining traditional occupational medicine with the services already offered by COS, OccMed@COS offers a "seamless program" incorporating the benefits of conservative medical management with the availability of high-quality surgical care. )o-

g reate r ch a rlot t e biz

Dr. AlleiJ Ed1.1ard:; c r.cl6icts OccM:?c's nea rmg exam ~-tiilh a pati~t-

the hrgh cnst of wo

~·place

injuries

rne costso~ .\(npl.ace injur ~to e11plo)'ers ard11eir emp'cyees arE sl3&~rilg. The 'Jati:Jr al5afety CourcL t:alculated the b :al c.osteth•arL- ektej deaths c:n·: nju·ies to :JE ovzr $1~5 billicr in l99f. -,c.tincluded $6~.9 billion in wage rc productivity losses, redeal co~ts cf $19-Q bil.ion and ad11 ri~rativ~ experse~ of$25-.E b:ill'on. Emplo,.ers 3lso sufferej 011 additio~r al $: :.! bi lion n as· time b1· workers o ~her han ttc.;e with disablin!:' in urie: , t1o~= who were cirectlv or indirec ~ i'lvolvec i· inju ·~s. mel · h·.lSe wh J were req ired tJ write up i j ur-1 repcrts and 1 or irve~tig3le; inju e5 . In o rd ~r to offset the c.c:;t af work injuries, ea•:h w::d.a rr ust produce 3n additional $;kO of goods or sErvices. D ;abl ~injuries ave ·age ~:!8,000 pe r irljury, wh ctinclLdese5fnc:1les :•~wage los5~ . me<licalexper5'e~. 3.dmiristratir:! e>pen:;es, :!•pi oyer costs. g reatE r : h ar lo: t e b i;::

Ac cs; tre cot..mt r~ nea 1y 3.! mi.! ion W•)rkers ~ uie·e:-d :lisablin& i1j~.r es in 1998 ar d 5, 1()0 died frorr u 1intentional i niu·ies ir thE "VOrkpla:::e. The co::· ofworl<-rElated hjurie~ is equ valE 't: to 45 ceflts o' every d ar Jf 199-3 ccrpeorate dividen~ to stnck~ ol:Je· s Jr 17 :erts a~ =ve ·y dc·lkcr of :.998 J)fe-tax a:::rpo·c.te profits or nearl~ t-i:M.e the co11bhec ~rcfit5 reported ::yt.. e tot: fi·r= Fc ·Ln= 5JO ccmparies in 1998 . In t«: ·th Cil rolina, annu3l :c•.::ts ~or l'lor<-relned inju~ and disease :!!>"ceed $918 IT illion, no1 inclJchg the fuL costs of lost indJst· ial produ•: tillit1• Cl3 m~ ~il=d for \'/orker5' o-np~n satiJn in :lis ~ate aw,rage ap'Jra>:fmatEty 150,0JO eac· !'Ea r. Vlorker5 :::orrrt=ensiltior ay1en~ cc~t 'lorth Caro.ina bus· nes5es c:b:>utS54~ rri tor forth :: 60 ~~rce-t ofwJ · k=~ 1\'ho r~ceive wo::rkers' campEnsat Jr.

ap i. 2000

Dr. Edwards identifies the other common injuries affecting workers in the Charlotte region as lacerations, eye injuries, hearing loss, burns, heat exhaustion, strains and sprains. Dr. Edwards also has some advice on the current epidemic of worker compensation claims relating to "Cumulative Trauma Disorders" (or CTDs) such as lower back strain, carpal tunnel syndrome and tendonitis. "CTDs, also known as ergonomic injuries, are caused by poor job design and/ or poor worker habits or fitness," he remarks. "Working with computers, extended hours before a computer screen and Peter

Temp!:o~n,

e)lecutive director

With n ear~:~ -; 5 percen1 of all on-the-job injuries im·olvic§; musculoskelet:!l poblems, this n.ew afrl]jat£ program ::>ffer, an aver..ue b r w:x~jng more closely \-\i th area empl~s t·:· trea: work- related injuries and c ise;;.ses and to speed the recover:: o: -..,-:>rk:o r~ ' return to health a:-t.d work in a L:nely. cost- ~ffective way. AlthougJ- back pain is the :r.ost common ioju:ytreated oy Occ:Med@COS,

a p r i _ 2 C•0 •)

operating a computer mouse and keyboard that are not properly placed for employee utilization cause many workplace injuries or claims. However, correct posture and exercise can eliminate any problems when the job and work environment are properly designed and organized." Ms. Pat Clark, an R.N. with Med Connect, an affiliate program of the Nalle Clinic, provides case management

reducing workers' conpensa•ion costs: 1. Cr=ate a safe workpla ce. 2. Issue a pJlicy ::tatemert re~.=.rdin& wor~-relate d

claims

arc injures. 3. Ccmmunicate '.'lith the err ployee. 4. Monitor t reatrr =nt with enployee and caregiver. 5. Crcose a cooperative 11e:lical pn•fider. 6. Select the insurance ca· rier who wi l be respons ve and be involved wi : h emp .oyee and caregi-;er.

7. 111"-.x>Se advanced medjca I sct:ening of aU emplo_1ees.

for w.Jrf:ers' compensation cla:mants. ShE manages nses for FreigJ-.tliner, Inc. am::>r.g •Y.hers with :;upport and assistan::e from Dr. Edwards. "We are wellpleased vitb the work Dr. Ed\'.: uds provide~, ., s~1e notes. "It is good to wo:k with sJmeone who knows the i:ssues o = ::>ccup.atior"al injuries and

greater charlotte biz

workers' compensation and one who is particularly knowledgeable about manufacturing organizations. " Workplace injuries seem to have certain seasonal fluctuations, with the highest incidence of claims and concerns from May to September when construction is in full swing in this area and when temperatures are at their highest. With five locations, OccMed@COS services an average of around 100 patients per day. Its staff visits businesses to examine the work enviro nments and job requirements to help identify changes that will improve employee health, reduce workers' compensation claims and accommodate worker disabilities. Ms. Jan Comer, human resource manager at Matsushita Compressor in Mooresville, says, "Dr. Edwards has come out to tour our facil ity and looked at our job sites and made several very helpful recommendations to improve the environment for our employees. He is our first line to understand how jobs can affect employee health ."

facts about on the job injuries:

''I've Got The Power!'' With Tegra, I 'm lttore Efficient. "As a company that helps Human Resource departments manage wages and )8neflts, ~. ettle clairrs and offer employee training , we're a busi es3 thc.t relies on conmunication. We needed a system that wor~s. Tegra installed a ~hone system with fully integrated voice m:1iL It's ~l exible, easy to c.dd new extensions, offers us the ability t::J monitor voice mes~ages or record our conversations. We uve no cut : ffs and nc complaints. Tegra is a rare breed. They sa~oed u~ mcney on oLr carrier, installed our system overnight, a11d had us running the next morning with absolutely no dowrt me " Dick Daniel President The Employers Association

1. Back injuries represent the

largest single contributor in injury cases and insurance claims in the manufacturing environment. 2. More than one out of five work路 related injuries is a back injury.

www.tegra .com

3. Work injuries to the back occur nearly twice as often as any other injury.

4. Back injuries cause more than

100 million lost workdays annually. While OccMed@COS is a regional concern, the group finds that larger businesses tend to have developed safety programs and often provide their own medical services. Medium-sized firms, 50 to 250 employee, tend to use OccMed@COS more consistently. Smaller firms take advantage of their service less frequently, but OccMed@COS sees this as a yet untapped market and is attempting to to in form sma ll er employers of the affordability, reli abi lity and flexibility of its services. OccMed@COS is on its way to becoming the recognized, industry leader for occupational medicine in the greater Charlotte region.

greater charlotte

biz

april 2000

[community

biz]

local orga nizations a nd eve nts

.......................................

the queen's cup: charlotte's steeplechase one ocal businessman's field of dreams is becoming a reality a 'build it and they will come' bravado, B U Price, president and CEO of Sonitrol s~curity Services, Inc. <www.sonitrol.corn> h _re in Charlotte, is literally making hif. fielc o= dreams into a reality as the Fifth AnrtUal Queen's Cut :J~ef!zc~ase (formerly the Charlotte Steeplecha!.e) <wwv..queen3cup.org> makes its inaugural debet at its ne·.., site atBrccJ.:l;~rd •..ood in Mineral Spring. Cn ~aJ.UJci.3y April 29, 2000, between 17,000 and 20,(00 spectators EE ~ected to see some of the most athletic thoro ghtrd~ ocrr:pete at speeds of 35 to 40 miles an hour as thEi: ockys push them to dear four foot challenging 'M>Od and b_ s!J hurdles over three and a half miles :lf rolling tu= .:ours ~ in an effort to partake of $80,000 _n pur~e ootE;. For Bill r f:<:E., tcrning his childhood passion for steepla:hc:se r..1d~ icto a respected and philanthropic comiTIJnity e·Jer has had its hurdles as well. ttl

The Breeding of a Champion

c:prL 20JO

Out of the Gate

When he wasn't being bitten by his horse (who had a nasty disposition and liked to bi(e people), Price was certainly bitten by the racing bug. So when his trainer and a board member of the National @ha}-loP-e. •:?)le~plechase Steeplechase Association suggested to Price that

Born Willi 1m J. Price, V in Baltimore, he bought his fir& ttoroushl•n:d gelding at age focrteen. "I grew up in <. fa :nily tlut r.ated horses," says Price, not a little ironically. "My 5- n _ercction with horses came from a neighbor's hired han.:! . '"ho woJld come by to take me trail riding when J was bur." _.;_=t~ r :get:ing his first horse, Price tried to turn -l im into a -ac(hotsc:: 'He was not a racehorse. I was sixteen an.:! an amateur jode-1. The first race he literally walked out of the gate. 1-Cs best rc_ce hE ran third." His father did his best to talk Price cut of 'i d~s re :o become a professional racing jocke!-, <.dvisirg l:im :c b_ild upon a solid education in a more traditional im: or N:>rk iiJ.stead. Pr ce listEIU'c. Shonly after graduating from a Baltimore prep scho•)l. te smtc:d a burglar alarm business in Baltim{lre c.t ag~ ::!0 with a $:1.000 loan from his father (his father claims he's ye· to pay tin oock and Bill thinks he has). F1ve years hter he sold nc b.1siness to Sonitrol's Baltimore franchise for ~ 135,0JO ;n.d v-e:-11 b work with the company. He marriec Carrin~on, his ~-arrr in life and his steeplechase endeavors, h 198~, an:l1fe two of them frequently attended horse ra•:es i:1 Ma~land v.llere they lived. Price •:amescutl- jn 1984 when a group led by his father acquira:l the S.:ni rol franchise for Charlotte and Gastonia. .A.iter a rocJ..-y ;;t1r:. S::mitrol's Charlotte busine5>s became

profitable. Revenues have quintupled over the past decade to over $5.5 million annually, Price says. A few years ago, the company, which also has the Sonitrol franchises for the Tria and GreenYillefSpartanburg regions, built its own $1.2 million headquarters off the Billy Graham Parkway. It was :luring this time that Carrington jokes, "Bill went through an early midlife crisis, one of several. He decided he wanted to become a trainer." Once again, Price was talked out of giving up his business, and bought a couple of ho-:-ses instead. One of them, Break Clean, bought for $15,000 in 1992, won six times, inducting races at !.tlanta, Tryon and the prestigious Saratoga Springs, ard garnered $90,000, before be was retired in 1993.

Charlotte consider starting a race, the suggestion took root. A."'t:er all, 12 000 people from Charlotte were going to the Carolina CLp (a steeplechase event) in Camden, South Carolina, eV€ry spring. By his own admission, Price didn't know anything about starting a ra :e and didn't have the time for it. But, by the force of his will a:1d personality and with the support of his wife and panner- along with $112,000 from his personal and corporate d eckbook- he started the non-profit Charlotte Steeplechase Association in 1992. Price became and still is the chair of the organization; wife Carrington is president.

The First Hurdle The firs : order of business was to find a suitable site for the race event in the Charlotte area. This proved to be a task of substantial proportion. After considering two proposals for developnent in Mecklenburg County, Price, who lives in Waxhaw, focused his search on Union and Cabarrus counties, where fields large enough to hold a steeplechase event were easier to come by. After two and a half years of searching and no less than 32 sites investigated, he decided upon a 285-acre parcel of land located off Gus Eubanks Road in the Sandy Ridge community of southern Union County. The association Leased the land for a ten-year term.

greater charlotte biz

In the :a11 o::f 1:094, 1.1-e a;3ociation b rcke s::ound e n a

l.~S- II i l e

grassy

·:JJP that had

b ~en

in stor()fe since the

.:iscont.nuancE of th.e Har::or Eil races

O\'al : rack vvi th 5coeVe:J fo.r-::oc·:-high

n 1967, to seue as the race's c·ff. : ial tr::>-

bru&l iumps. P::- ce m ie:d h i111Selfwith

eYe:r t and raise cas.:- forp..rrsES. The

i= hy. Thz race attracted ovEr 7 ,S 00 spect ;~ tors and was a real success. tioug!-. t:1e $15, 000 in net pmcee·~- of :he racE vJere no t e nough to cover Lle <.Esociaon's costs for th e year (ann ual e<penses aceedc:d reveru es b? $20•).000) , it

snrt-up budget ·..va3 $4(0,(10(• but the

cemomtrated s..tffioent ecc:n.omic ·easibil-

key ingredient '""as J ri ce's coomitment,

i:y and :Uture

d isplayed in wo:k : ngine frcm hu tling

start thinking aJout l:uying j: ropery for

up sponsors to cu::. ng ttc course's grass.

permanent hone for th e ste-=ph:hase.

seHi::.g private c.n d corpxl.l:e sl:i~

~onsor

ranging fro m $2,5JO to $50,000 to

hel p build the traC:.< and J=urcbase farm and irrigation equif:·me:.t, ad·;enise th e

(Xltenti;~l

for ::rganizers to

tr3:n.ers of tl:e

c.ppro~d

:y top

r- ational 5 · eeJ=IEchase

Aow:ia: ion . The grc.nd oJ=eniDg ta c k p lace at a

"Tast~

of ::he ::::1-.ast( evem

Down the Stretch With only two races

the Charlotte

Lr.d ~:

~teeplechaSE

it3 belt.

Associatior.

decided to in.,est in a p6Inaneot site ~ pring

helc in the f. II of E>95. I: wcs a beautift.l crisp day in _'-IQ<,eml::e- with sixty

for its c.nnual

h ·J :~es compe~ing

ing was rejecte::l . 0V'."lling :t si:e v.uuld

pTJ :~e

in five

:-ac~

for a

: otaling S-15,000 klan. 3,500

spectators atter:ded the ~" nt Price remembers, ''That rig:t V"e ·.-\·ere exhamted but high as a late_. feeling Ke'd

re;~lly

accornp ishe::Lsor:Ething."

Mer three-yea-s' hoid W::•Lk, Price haj finally broughr theseep:~chase to

Charlot:e - b u: h wasn't :Jnished yet. The first a. nuc.l Cl:a-lot:e

nent flllures- like

Association

p re~e~d

mE Ctarlotte

S:eEple: hase A33ociatim v1ith : he furmer b:rbor Hi'll

S:~epl<::C1asr.-:

trophy, a

cro:o5_ngs

from in leasec site. Price calcnlates that I-.e had S340,0JO him3elf at that JOin:

~ent

e~tabli~h

ing the steeple::hase in CJ- arlo:·e. And, ~-ince

·'~ p ~·:hase

SJrir i S. 0 1 ~ilurc c.~ . .Apr I :!S , 200. F10n - L8:' , t=. l:E ProYider c~ Rd. [ti .C. : s; Slllt'1 nt :t Waxhro. TJn le-'t en tJ.C. ' 3 arw:l fo llovr the sig~ G1~:: s oJen at 1C :0 ] am , open in= ce ' :!'IOf" es a ·eat 12 :l0 p.ll .. c:rd th= f ·s t rc.c e is a: l:D p. 11.

e_.

T1e fis :ur= race is sj,e.: J c 3:L5 : .11., fotl •J¥WE<f t y r ~ e 1-o: al : After~ t:ac : Par ty ent-=rt3 lnfnt u1 til · :JOp.m Grea~rChcr.o ~ Bi:;: i!: a ~ : c n s:>r of th ~ - at Corr:es t. Generc.l Park rg Pc: s~s =- re a·tai.;; tle f·o .'J.LEi. '1\d:Jile and ear 6. ~lu<a s:crES Re~ el't : d <=·c.s5es a·c: a ·r;j lat le thro ~ h t~ e ~teer:~ej,a.= e o:Hice JY C3ll ll ~ 704.4Z33~:o . IAJ r;? in-'o · m · tior .= avai lable a . the v.>eb sitE Jf tile Olar:.:~tt e 3te e p . ~ c ~ ase Ass-:ciatior <W'!'N'. ]ueellSl:np .org >

s 170,0•)0 on g£ading and ~ther: p-opert?

~ears

$75,000. The N.at.-=:nc.l

f~ncing

in perma-

maintenance bat could rc: be rroved

S:eE ple:hase tco k j:la:e-the f:.Uowing

or a ~·..use of

ir.~st

end roads. It bad already qEnt zbout

spring in April of . 396 wi:h furty 1-.orses competing i:1 siJC ra::es

race. An eoffer to

buy thE. 285 acres it was C JITErtrl} leasc.llow the asso•iation to

Queen's Cuo S : ee~ase ...,m b;? rur . ra 1 : r :;;hi ~ e, c.· BcJ dald"II)Cd ir his: J · c M 1era The~, 141nu ~ l

It t::>ok a yesr : •J de""ebp :he si:e and get th e course

if you wan t t o go

it had ta-<en hiln tw·:> and a half to find the leased si~. J-e p-epancd

bimsel:: for an:>ther three t:• fi:ld .a sati3iactory site, ore that was :non: t!-an 200 acres. It rr ight Even tEe ]anger to

develop

~:£. dzr:i:;

(. he c:aoo1 site h;Jd :;::te\itt sly

i::elOn h a f<:den l mn>e£V31 o n p r-og-a-u lo:• grov:

;;TIEs, ar:d reed 2d m i::-.imc.l

work) "\J::-e3dy h e w;;.s i:1 :!:xJl! Dl. ng these in:e rvemrg ·,?ars, th~ ;Jttcn::ilnc.e at ~·:h teepl cla3>.: c.s ...,,cll as : he -·w~edE gi•:m tc o:harit:, ccn:i::lL:d ncP-as~ :-J:e 3eC)fli ar.nud •:bar CT~ ~ teq::l ,;: -~e i::- ; .priJ of : 9<:7 ·~a3 n •: ~~a sun:lo:~s th ~ "l :hE 6f3t .,.,, th ~-=- au~da:Jce o:: 10,000 ;r;::::cr;- •::r- and .,._

steepLechase events in the carolinas Aikea Steeplec, as-e

March !5

Aike1 , S.C.

Caro ina Cup Race3

Aprill

Camden, S.C.

April2::

BloclHouse Rc_ces Tryor N.C.

t....

April2!1

~een's Cup

.!2_

StEeplechase

(fo rrr~rly

Chari ttr, Stee:iechase) C1ar otte, N.C.

""....

.a Qj "' .!!:

MayS

Broo

"tl

ill Steej:lec:hase

P.ale~h, N.C.

t::

"'0

Novemlter :l 2

6 .... ....

Char eston Cup C ar eston, S.C

~ .<::

Nove miller _3

Aikn Fall Race; Ailee

<II

-s

Novemlter :

S.C.

Colo• ·at Cup Rues Camd=n, S.C.

"tl ~ 0

Cl.

a net ret·1rnpe:rr.itti.g an $1&5CO donation to cbacties And the lhi"d and fourth aanu oil Charl ctte Steepfechases in 1998 and 199:::: were each attendt.d by approxina·EI} 15,00 t~ spectatcrs, resu lting in $:;:5,0[ 0 and $.3 5,000 do) nc.tions to charit.es rE:~ectivEly. RacE orgr izzrs c-Jntinued to ~out for a per11an :>.- t site _-;Jr the stEep chase that would be dcser : J Charloite. J,s Price descril:e. jt nov-~ "The old siE was inches away fr:: m So .til Carolina h: was

8 V)

0 <II

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1: "tl t::

"''?0

"'...." s <II

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.§

.!!)

d ose :o no-nr.E·e. r It V"'IS prior to the fourtl-_:mr:ual =ha· ot:e St:eepled-ase, someti11e in 1.:. 97 :hc.t dE PricEE fou nd a prime 26•) -ace p<Ir::el oflar.d o'f N.::::. 75 in v-est::rn CniJn Cou r.ty for the event'3 pennar:~nt ror::e. "The IEW site is inoedibly gc geo..JS, .vin rolli:~g hills, pondt :tnd tree. ir. d-.e n.f~e: d ." r rice says. !~is .s ck:Jset" : o =ur major markEt CI-:arlo.:te. • "::'he ass.Jciaticu bougr t ou: its exisin.sl ~ as_. /I.J.:dgE anc )in :f'r:ce, 3ill Prce's paren:E, boJg!-a: the ;acea~ for fE ne·,v site ate. cos ofap::>BC•JO'lla.:ely $': 50,000 and rE l ec.si n ~jt K> thE as.oociati=n . It is si tta:.ed .abo _ 18 mhutes fro a: the Charlo:te outeo eltway and a boLt 40 minules f:-.::m ilow~o'l\.11 Charlo:te, makir§' the evot m:::re accessibl ~ to Charlo:te-area resirle ts ·'r never :mag-ined we would ~ nd ...1p doi..,g so ""ell," Price tZ)'S. '·r th<)ugl:t v P- w<:mld b~ leas ins -:he oth3' site fo : yEars." V"o;k begc:J. jllli"'ledic. ~-e ly or: 3 fencec :mE-anc - or:.e- ~.i=:eenth-m : ~ coursE. wit-: a r::ce-co·Jne-s::yle hLb rail steepe:::I ter::JceE for l3.·,vr C•xes, an:! the requi~_te bmsh~ ju~s flat di stiJ¥lish steeplechase rae. ng. ·'""'''e us ~d per11.anent fenci~ :md strocturEE tl-_rcaghou· . It has a sens~ -ofpurp : se a..·-d ~n is> ion. " Frice projeced a mo~ in :iarc of 2000, .n time for thE -un:-.ing:Jf ±le fi'th 3nnu steeplech2SG T:-:e p m~. inC:nde::l a pe:-ma1

<.>

-~ <II V)

.<:: <.>

.!!: ~ 2l V) 0

.!::;

:<:

c ~

Vl Vl

~ <! w E Vl .§ <!

.!::;

E <II

!!:

...J

0..

w w

1Vl

...J

Cl::

::J

u The officiJ/ p::.rfr'att of!'le new r~ce ourse

a r· ri I ;

ooo

~artist Pe~er ~liiWGifiS.

nent stewards' tower and about 140 acres of parking for an estimated $2.3 million. Price says, "There's never been a race course built to the standard we're building this one. It's truly the Ericsson Stadium of steeplechase racing. " And Charlie Colgan, the association vice president observes, "No expense has been spared in preparing the place ... It's going to take him [Price] a long time to get a return on his investment." Price is involved in every aspect of the design of the new land from the layout of the course and fences to the landscaping and selection of grass. The Price family and the Charlotte Steeplechase Association have been building the course on approximately 150 acres of the 260-acre tract. In addition to leasing the acreage to the association, the Price family is picking up $650,000 of the costs of the new course and has loaned an additional $1.5 million to the association to pay for construction and other expenses. The association's annual budget continues to be approximately $400,000, with includes c.n $80,000 purse and budget of $45,000 to be given to charities. Corporate sponsors provide about $220,000 of that amount, ticket sales raise another $130,000, and another $90,000 comes from race program sponsors and tent sales. The Price family continues to make up the difference. While a fund-raiser in 1997 had helped the association reduce its debt from about $380,000 to $190,000, the development of the new course has pushed the debt back up to around $1.5 million. Price says he eventually wants to see the event stand on its own financially. To recoup some of the cost, the race has become the first National Steeplechase Association event to collect Personal Space Lease (PSL}type fees. For $800 to $5,000, you can reserve yearly rights to a space to watch the spring race. The most expensive PSL, a $5,000 lawn box, includes the best view, a table and linens for eight and access to the clubhouse, where food and beverages are provided. One-time goers can still buy a pass on the day of the race; passes range in cost from .li40 to $595

greater charlotte biz

per carload. "To date, over $250,000

UJ (.!)

in PSLs have been sold, exceeding th e

association's expectations," Price says.

"For every two sales made for this

0::

spring's race, one is for a PSL. "

ell

0::

Into the Final Stretch With the new site, Price thinks the

0f-

attendance will top o ut at about 30,000 to

11.

35,000 spectators. "Our long-term vision,

0 0

"'.....

0 .....

in 15 years or more, is that this will be an

international race that will attract entries

from England and Ireland, and that it will

:;,

.!1:!

eventually be a live televised event."

just this past fall the race

"'E

officials a nno unced that the Charlotte Steeplechase will have a new name -

the Queen's Cup Steeplechase -

after

Queen Charlotte, the city's namesake.

& G..v_C

Dea : er~

of : he C- ro linas, WFAE

official portrait of th e new race course

fm c.rd W31Y. C.uner:t :ponsors include Scnit:o _ 3ecu:ity Ser.: cEs ALLTEL Comm•nicat' o:Js, ::-t er.crid: E.MW, Lar:.d RcvEI"Cnar:one,. 'A'BT :urflin, onald Haack Diao::n:ls, Tn:Greer_l~:cula·ND, 107.9 The

commissioned from artist Peter

Li::1k, Tifa:1y

Williams, a New Zealand native who made the official portrait for the 125th

E-eneficiaries o: t:le steep lechases ov;er lt!e -years , ave ll-..::Jcded Hospice of

Kentucky Derby. Williams rem a rked,

Unio::1 C:>un-q> :ho •piO": for care of the

"Whil e most of the ingredients of a stee-

terrr:i -: ilty i[: , :he

"We felt like it needed a name that had a more global feel," Price says. The association also unveiled the

plechase are the sam e, this course is truly unique." Reproductions of the artwork are available as a wall poster, on coasters

<::

Bi'l a~1 Camrg ~on ?rice at their field of dream -:; i.1 e.Jrly ~brJary.

Eut _;Je:rh3ps w1B1 i ~ rc:> s~ 'DJ· r~ssi ·;e ;3 tt_c: Prc d cc mmitmenl :he} :I•J :'Jot

benefit fnanci <L_y fr:l- the:ra : e

Cha? :er •Jf th=:- -~atio :- ai MLitiple Sderc.sis S:)(:ie::r, tr.i' ~umps•Jn

a nd :uvEa business IDC. 1- ·:: me :c li1 a_ well. Carrington is pP-s.. :.ITtt:xf :.1-.e C UJ.dotte ~·ecplecha3e As:::::·:.iatic• r, 3 suy-:a:-ho n:e mother o f :-..n chilC.~n age; 12 - n:J 1J a ['d a ccm :nnllXy V:·ll.n ee r. Acco -dif15 to 1ll , "t: t a ke;o ::ve-~ ::oil ~f f.::ut m nth c prepue fa a race. .The re: a:re 3 thO.JHo::l tJ-jngs lf 3 l avE: ID be r3Tl3llbcred. It's likE as:.i:J! l&:•Xl or rxor~ peop_e :o co m _ lc y:::....rr VJ'ZrlJing-

Chi ~c:k'e::l's

f'\.el} ye<W"." C3rri:-tgba ~- "E- ai we

.s Co ~ DC '/is.a, USA.

•::; r ~er

Carol inas

Home (ill:i _r

and on note cards and can be obtained

fo~

from the association 's Web site.

Cha: btte) . ar.d the Ca: olims ALS

b een instrumental to the success of the

Hos? _Ce :J ~ Uni:Jn Cc..rrt{, Catawba

Charlotte Steeplechase, it would not

Landt

have been possible without the help of

afte[ iliis yean nee.

In the Winner's Circle While the Prices have certainly

Fcun•la.:.ion. P-ice

~:es

that the

as3ocation will be :1.ble to contribute in

ex::est cf $45,C•OD GitfJ o _penses to th e

its many corporate sponsors. Each year's

or:servar.cy aJ.d other charities

0( .courR, the

I ..em

•::1' i<:rtte community

purse money to attract entrants for the

as a \o\.h•Jle is c.ro a

race is derived directly from race spon-

e!Ie:13i:uner:.t md eo·:od··vlll engenderec

"'lffi:iary of the

sors. "Thankfully, our sponsors are terrific

by theamuaJ Eteep.l"Cl<Se e-,rent. Price

contributors to our venue and are able

pcint~

to support our race in a significant financial manner," says Price.

th~ ~o~ and h;;ve: fur :1.nd fellowship wih m ends ....hJe om.lrbJting to the

Initial sponsors of the steeplechase included SouthTrust Bank, Royal

wE:!faJe J f the o::omrr"o..1n ty."

cctm... 'it's

3. ~t

d1yto watch

'Tte '::::ha~e soi±fi~s bus.ness c.s pers::::nal d ~ lionships; and

v.-u

Insurance, Bell Atlantic Mobile, Belk

Brothers, Cameron Harris Co. and The

k~ps

Park Hotel. Subsequent sponsors have included Bank of America (formerly

togt:.J- ~r year ilir y:::a:.' The ~\·en l _tselfis. roiectd to contri:•t.t? over ~2 mUicr_ to the regional ec•Jncnries of U:1ior, .cEc.kknburg and SU:fOIJ:J.:lir:.g : ::aln tit.S.

NationsBank), GMC Truck, Ralph Lauren, Odell Associates, The Business Journal, Royal & SunAlliance, the Buick

greater charlotte biz

bo th str:mg

k llO;.<r:J .

re is r.o

l:ri1ging people

W1)'

t J : i~

iJ~ ~g

s: ~

·;;: '-'

.s"' "0 <:: 0

.r:· .~

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Price..

~ ·;:;;

0.:

pe8.::len :.f ~on i tro _. _A,s ::!.. J Pri : E of tb (!.1ezr. 's CY.' Steeplec..Y r. a.:•k to P-3d:. an e:nti-ely dfl:e:-Er o.u :li?t:G ." : >ne recclls P:k."'E"s :::c:::-.m e:n - bortly tdo ~e ti-e in:augural >:e~6 ::: se 'I con': have the busi:r:e3S C•=-tta S Ctf o[J C l.ad ·Jtt~. anj I doo ·L h:r-= th e: c.b ty : c arm ~is: . _ o n't ju~ ::c:!l · :J 2: ople an d llake this happm. -v·~ -..3t I c :; have is c cream , and a r:Hnisf": lha1 it Ni II

t-«: fi -&t c ('f

·~

J:le

I CC•u _j rnc:;:L the p

this

-:S

\o'e may not .tave ·= :<en c·n thi~ p)()jKt L: w e s its till (l::1 e f:rtily." ''Pec•p_e :1.re flatbef¥=-::ed :bet I'm c.oiD.5 th s fo- no thing, · I' :ice ::c rrtinues 'l JJ i mayte .here are s:n:-.z bll5iressJ:..... o:::l e ~t. o would ~all =:.-s~ i. .. but

b c.terd and alu s.d children in

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vv'hi1 e it may i ::li.tiaf l~ J.av= :Jren :;-, - eld of d:eams, 3i II .P'I.ie h£ n .ace a re ll _ty :Jf C 1.arlotte'~ Q i:..<'!rll 's ="f.J 5t2<!,'iech•"c a 1.d h e h as CErihly-ccne it i:r a ::1.rscdas:. fashi :x:t. Hf -~ a ; luilt it. . . and ~l.e hope: you \\i.ll m :-.J£.

ap ·=_ 2 CC•J

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Greater Charlotte Biz thanks its advertisers. To join these forward thinking organizatio ns, please contact us at 704.676.5850. Advertiser

Page

Allen Tate Realtors 704.365.6900 www.allentate.com

BTl 1.800.205.7388 www.btitele.com

Business Control Systems 70 4.333.7794 www.bcsmis.com

Charlotte USA www.charlotteusa.org

Craftsman Printing 704.588.212 0 www.wallace.com

Page

Gaston College 704.922.6200 www.gaston.cc. nc. us

Ballantyne Resort 704.341.4653 www.ballantyneresort.com

Inside Front Cover

DP People 704.588.7500 www.dppeople.com

Advertiser

Page

Hood Hargett & Associates, Inc. 704.374.1863 www.hoodhargett.com

Kenan-Fiagler Business School 1.800.4 53.9515 www.kenan-flagle r.unc.edu

Knauff Insurance 704.375.8000

MacThrift Office Furniture 704.523.6220

Crescent Resources, Inc 704.382.8009 www.crescent-resources.com First Citizens Bank 888.323.4 732 www.firstcitizens.com

Advertiser

Prudential Carolinas Realty 704.366.5545 www.prudential-carolinas.com

Robinson Bradshaw & Hinson 704.377.2536 www.rbh.com

Back Cover

Smoky's Grill 704.364.1346

System 5/0racle 800.633.0752 www.oracle.com

Inside Back Cover

McColl School of Business at Queens 704.337.2224 www.mccollschool.edu

TechnoCom 704.847.5200 www.technocomnc.com

Montag Management Corporation 704.362.1886 www.montagmanagement.com

Tech line 704.334.6823 www.techlineusa.com

OccMed@COS 704.5 88.1265 www.cosortho.com

Tegra 704.945.7000 www.tegra.com

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rural prosperity, continued from page 20. 4. Take affirmative steps to boost ou r state's agricultural communities with collaborative plann ing. We need to proactively chart our future, boost marketing, increase value-added production capacity and research and plant promising new alternative crops. A strong agricultural eco nomy means a strong No rth Carolina . Take it away and you have a $4 5 bi llio n hole in our economy.

5. Find ways to boost rural leadership and give our communities greater civic capital to work on the difficult challenges they face. I've seen thi s co ncept work on a federal level through our empowerment zone project. We think we can convince private philanthropy to make it work in North Carolina's rural communities.

6. Make sure our rural communities have the hard infrastructure - water and sewer, highways and housing - they need to effectively serve existing businesses, grow new ones from within or bring them in from outside. If you build these things, more new businesses, teachers and citizens and young families will come. More businesses, teachers and young families will stay. For each of these ideas, we have answered key questions: Who will benefit? How much will it cost? Who would be responsible for carrying it out? How long would it take? And how would we pay for it? We've had a good response to the report. But the good ideas don't go anywhere unless people hear them, take them up and push them. Which bring us back to the question Parks raised.

Why should we care? It was a good question, and I thi nk there are a few answers: 1. The Charlotte region is both urban and rural. The greater Charlotte economic region is made up of 15 counties -13 in North Carolina; two in South Carolina. It is the most urban region in the Carolinas; but according to a recent study by the Carolinas Partnership, 42 percent of its people live in rural areas. Twenty-nine percent of the region's land area is used for farming. Manufacturing is the largest industry sector everywhere in the region except Mecklenburg, and much of the manufacturing sector is still populated with a low-skill workforce. Many of the recommendations will make an immediate difference to the peo ple of our region. Mike Almond, CEO of the Carolinas Partnership, Ch arlotte Region, wrote in the Charlotte Observer last year: " A truly regional approach is needed in our economic development efforts and programs to ensure that the rising tide of wealth and prosperity in the Charlotte region will indeed lift all boats." 2. A healthy rural North Carolina is a big potential asset. There are 3.9 million people in rural North Carolina - if it were a state by itself it wou ld be our 27th largest. The people there on average make less than 75 percent of what urban folks make. Boost productivity by even 5 percent, just back to where it was 25 years ago, and you have millions of dollars more flowing in to the state's treasury- and potentially available for urban projects. 3. An unhealthy rural North Carolina is a big drain on our state's economy. As Hugh McColl says, when children grow up in poverty, they are less equipped to contribute to the economy. Twenty-six of our rural counties have had poverty rates over 18 percent for the past 20 years- in Anson County more than 20 percent of people live below the poverty line. If people in rural North Carolina grow up with no skills and no job prospects, or if their plant closes down, they will come to the cities looking for jobs- putting more pressure on our already strained infrastructure. greater charlotte biz

4. This is an important investment. Our proposals are modest, but they all build the capacity of rural communities to become more self-sustaining. The stronger a community is, the less likely it is that they will need huge investments later. That means there will be more available for major urban infrastructure investments. 5. We grow leaders there. Rural North Carolina has always been a training ground for our best urban citizens. Look at just our last four governors: Bob Scott, Jim Holshouser, Jim Hunt (we let rural South Carolina train Jim Martin). A recent survey of 324 North Carolina leaders by N.C. State University found that two thirds of them came from farm families. I don't want our future leaders to have a second class education. 6. Rural North Carolina is where our "stuff" comes from. Most of the basic resources of urban life come from our rural areas. Our food, fiber, fuel, timber and water starts there. Healthy communities upstream mean cleaner water downstream. 7. Rural economic development can be a "smart growth" strategy. More than 1 million people have moved into North Carolina since 1990, most of them to North Carolina's urban counties. Smart growth is one of the biggest topics of discussion around Charlotte these days- right now in 13 of the Charlotte region's 15 counties more people are commuting out than are commuting in . Jo b creation in rural areas can help relieve some of the pressures of sprawl. In many ways, the best way to do smart growth in Charlotte and Raleigh is to start growth in Sha llotte and Mt. Holly. B. Most importantly, investing in rural North Carolina is the right thing to do. Tom Lambeth , one of our Task Force members, answered Parks' question this way: "When you have a hole in one end of your boat, you can't sit at the other end and think it won't affect you." Jim Black put it another way: "In North Carolina we rise and fall- not as rural or urban - but as one state, one North Carolina." I strongly feel that investing in rural North Carolina is simply the right thing to do. In North Carolina we care about one another- we always have. We are the state whose motto is "where the weak grow strong, and the strong grow great." We are one state- one North Carolina - and we believe in equal opportunity for all. I think it is obvious we would all benefit from this initiative - businesses and individuals alike. So how much would it cost? If the General Assembly were to enact all of our recommendations, they would cost about $677 million in new appropriations from the state's General Fund over the next five years- less than one percent of the fund. Those investments could leverage a tremendous amount of investments from other sources, such as we are suggesting with the SBIC. It is important that we act now. The sooner we tackle these core challenges to our future productivity and standard of living, the less expensive it will be, and the more competitive and prosperous our futures will be. If we don't invest now, rural North Carolina will continue its downward spiral, and we will face a much bigger investment later. I hope over the next few months we can figure out how we as a state can work together to keep our economy on the riseboth rural and urban. Erskine Bowles is managing director of Carousel Capital in Charlotte and a general partner in New York路 based Forstmann Little & Co. The Rural Prosperity Task Force report is available at http:/fruraltaskforce.state.nc.us or by calling 919.133.5082.

april 2000

[executive

perl<s]

diversion s a n d excurs ions fo r the busy executive

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

fly fishing in the high country foscoe fishing company and outfitters wants to show you a good time Charlotte native Oliver "Ollie" Smith is a self·described fishing junkie. He started fishing at age four and by age 12 he was fly fishing for bass on Lake Norman. When it came time for college, Smith chose Appalachian State "for the fishing and the skiing." When he goes on vacation, he goes fishing. Today, he's a partner in Foscoe Fishing Company and Outfitters, <foscoefishing.com> a retail fly fishing shop and guide operation located between Banner Elk and Boone in the shadow of Grandfather Mountain . And he couldn 't be happier. "The river out there is our office," exclaims Smith. "My tackle bag is my briefcase. That's what I go to work with every day. I've got a suit, but I'm not sure where it is." Foscoe Fishing offers a complete selection of fly fishing gear and accessories from well known brands,

had between 600 and 700 clients, mostly beginners," says Smith. "I've been fortu ·

number of fishing boats. I went to Alaska

who has never caught a fis n before in their

and netted salmon , and went to South

life gets their first, that's just priceless."

have never had the experience of fly fishing

Fussell and Smith are also always on the lookout to expand their offerings for

Smith . "It was a little dangerous, but

repeat clients. In addition to the new

I made enough money to pay off my

European-style game hunts, they are close

student loans. I came back to Charlotte

to a deal that will provide four·star accom·

and delivered seafood for Poseidon

modations for weekend trips in addition to

in that day and moved up here to the mountains. I haven't looked back since."

"By the end of this season, I'll have

and teaching them how. Wnen someone

is for sale', I put my two weeks notice

That's a good thing, because he loves his job.

purchase Foscoe Fishing five and a half

friends called and said, 'the Orvis store

keep us happy and to keep us fishing."

years ago, they jumped at the chance. "After college, I had worked on a

Seafood for a year. But when one of my

Competition from other guide outfits

nate enough to take a lot of people who

on the east coast for shark," relates

spring and fall the optimum time to go.

500 company," jokes Smith, "but we do

America and hooked swordfish. I worked

round. If you want to enjoy the best trout fishing- at least in the local area's small streams- Smith says the cooler waters make

enough guide business an d retail to

State, and when the opportunity arose to

busiest season is during the summer, though they operate year

operation is certified by Orvis. It's a distinct

They met together at Appalachian

<:>::

back on a bicycle." - Oliver Smith

pretty steady. " We won't ever be a Fortune

end , while Smith is responsible for the

if you gave me a regular rod and reel, I wouldn't use it. It would be like putting training wheels

fitter in the area, which means its guide

fishing guide operation.

Cll

and Georgia. Foscoe Fishing's

"Fly fishing is the hard way catch a fish. but

shop is also the only Orvis authorized out·

Smith's partner and heads up the retail

<( UJ

world, but most live in the carolinas

comes and goes, but business remains

Matt Fussell, a Georgia native, is

0 0

a float or walk trip in Tennessee . Clients come from around the

including Orvis, the recognized leader. The

marketing advantage over other outfits.

<:>:: UJ

You can fish on the local public and private waters of the Watauga River, Boone's Fork, and Wilson Creek. Or you can take

Foscoe Fishing offers a variety of guided fishing experiences and has recently branched out into quail and pheasant hunts as well. "Our main business is catch·and·release fly fishing for trout,

the rustic rooms currently available. A lot of Foscoe Fishing' s clients come to fish for a day, and weekend slots fill up fast. Fussell and Smith recommend calling ahead a few weeks to check availability, but if you're a spur of the moment kind of person, give them a try. They'll be happy to let you know if they can fit you in. If yoL have never been fly fishing befo re, Smith wants to show you the subtle beauty

but we also fish for smallmouth bass and others." says Smith .

and art of fly fishing. "We make it fun and easy to fly fish," he says.

He and his staff of guides can work with individuals or groups

" If you come out for a full day, I'm going to put you on a fish."

of up to ten -from beginners to experts- with at least one

For more information about Foscoe Fishing Company and Outfitters, ca/1828.963.7431

guide for every two people . 44

april 2 0 0 0

greater charlo t te biz

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