Roanoke Business- June 2015 by Virginia Business

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JUNE 2015

Quality of life

What does it mean, and can it be measured?

SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION

DRIVING FORWARD AND PRESERVING THE PAST • New Businesses, business expansions, job diversity • Home of Calfee Park – the 9th oldest baseball stadium in the U.S. • Pulaski Yankees - 2015 Season! • Two State Parks: Claytor Lake and New River Trail • Mountain bike trails • Three new recreational fields • Historic Train Depot • The MARKETPLACE – Recognized by the USDA, VA Tourism Corporation and Bon Appetit Appalachia! • Raymond F. Ratcliffe Memorial Transportation Museum (model train exhibits) • Historic theater – Crooked Road venue • Wilderness Road Regional Museum

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CONTENTS SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION

June 2015 F E AT U R E S COVER STORY

Quality of life

It’s a big part of the economic development sell, but what does it mean, and can it be measured?

by Sandra Brown Kelly

COMMERCIAL INSURANCE Workers’ comp

It’s complicated, confusing, ‘very misunderstood and very daunting.’ by Joan Tupponce

EMPLOYMENT LAW The ‘new normal’

Some companies are hiring, but many are using temporary workers. by Jenny Boone

HIGHER EDUCATION A changing environment

Radford University is working to stay competitive and become better known. by Shawna Morrison

D 24

15 A

INTERVIEW: Beth Macy Author of Factory Man

NEWS FROM THE CHAMBER Tulane Patterson named Virginia Small Business Person of the Year

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Chamber Champions

COMMUNITY PROFILE

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Event sponsorships

Floyd County

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New members

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Member news & recognitions

Journalist Beth Macy becomes best-selling author (and inspires a new beer). by Tim Thornton

A community of entrepreneurs that sticks together. by Mason Adams

E •

Factory Girl

JUNE 2015

Congratulations to

Don Petersen for the FIRST PLACE award he earned from the Virginia Press Association ffor or his photograph of Melody Black ccutting hair in her Grandin Road Barber Shop. The photo appeared in Barb B the September 2014 issue of Roanoke th he Se Business in the community profile of B Grandin Village.

Don Petersen

This is what the judges said about Don’s photo:

“This entry was head and shoulders above the rest of the pack. The photographer captured an everyday event in an interesting manner.” ROANOKE BUSINESS

FROM THE EDITOR

The right horse by Tim Thornton

“R

oanoke,” Mayor David Bowers likes to say, “wouldn’t be Roanoke without the Hotel Roanoke.” It never has been. According to the form that got the hotel onto the National Register of Historic Places, Hotel Roanoke opened in October 1882, the year Big Lick became Roanoke, two years before Roanoke became a city. Excuse people for reminiscing, but the venerable hotel recently celebrated the 20th anniversary of its reopening. According to the Roanoke Valley-Alleghany Regional Commission, in the 19 years and eight months between the hotel’s April 1995 reopening and the beginning of 2015, it had a $616 million impact on the regional economy. That includes $108.5 million spent on the renovation that relaunched the hotel and on improvements since then and another $36 million in local taxes. All those numbers are far from the $20,000 the Roanoke Land & Improvement Co. authorized for “building and furnishing a hotel” back in 1881. Roanoke Land & Improvement was a subsidiary of the Norfolk and Western Railway charged with “acquisition of land at Roanoke … to improve the same by laying it out into streets, the erection of houses, and also to build and equip a hotel — capacity about 20.” Roanoke Land & Improvement was created, essentially, to create Roanoke. It bought land at agricultural prices, before most people knew Roanoke was about to become a transportation center, and turned a nice profit. Before construction of the first Hotel Roanoke was complete, the company contracted to add a wing. The hotel opened with 69 rooms and a dining room that could seat 200. That old hotel is gone, the last of it erased by hotel additions in the 1930s, but the modern Hotel Roanoke, according to that National Register form, remains a “visual, cultural, social, and architectural landmark in Roanoke and southwestern Virginia.” That first hotel — and every version of the Hotel Roanoke until 1989, when Norfolk Southern gave the hotel to Virginia Tech — was the product of private enterprise, managed for private profit. The modern version of the Hotel Roanoke and Convention Center exists because of Norfolk Southern’s gift, the Virginia Tech Real Estate Foundation, Doubletree Hotels, Carilion Clinic, the city of Roanoke, federal loans, loans from banks and about $6 million from a public fundraising campaign. “We went out to the public and said, ‘Do you want to save the Hotel Roanoke?’” Bowers said. “It was a resounding ‘Yes.’ ” It was also, according to Bowers and Virginia Tech President Timothy Sands, the beginning of a stronger connection between Roanoke and Virginia Tech, which later played a role in the creation of the Virginia Tech Carilion Medical School and Research Institute. “It was a gamble,” said Debbie Moses, director of the Hotel Roanoke Conference Center Commission. “We picked the right horse; that’s for sure.”

JUNE 2015

SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION Vol. 4

JUNE 2015

President & Publisher Roanoke Business Editor Contributing Editor Contributing Writers

Art Director Contributing Photographers Production Manager Circulation Manager Vice President of Advertising Account Representative

No. 6

Bernard A. Niemeier Tim Thornton Paula C. Squires Mason Adams Jenny Boone Sandra Brown Kelly Shawna Morrison Joan Tupponce Adrienne R. Watson Don Petersen Natalee Waters Kevin L. Dick Karen Chenault Hunter Bendall Lynn Williams

CONTACT: EDITORIAL: (540) 520-2399 ADVERTISING: (540) 597-2499 210 S. Jefferson St., Roanoke, VA 24011-1702 We welcome your feedback. Email Letters to the Editor to Tim Thornton at tthornton@roanoke-business.com

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on the cover Event at Center in the Square Roanoke Photo by Don Petersen

COVER STORY

Quality of life Itâ&#x20AC;&#x2122;s a big part of the economic development sell, but what does it mean, and can it be measured? by Sandra Brown Kelly

JUNE 2015

Photo by Don Petersen

u uality of life” is a buzzword in economic development. The phrase is used on many a website promoting the Roanoke and New River valleys – and every othN er community across the country. “It’s the first thing that comes out of our mouths,” says Melinda Payne, Salem’s director of planP ning and development. But what is “quality of life”? And how does talking about it affect economic development? Quality of life includes “those things that make your community shine,” Payne says. “They are things such as feeling safe to walk the streets after dark and knowing that if you were in need of emergency measures help would come within minutes. It’s knowing that your streets will be cleared expeditiously after a heavy snow; it’s knowing that if you forget to put out your garbage the truck will swing back by on the same day to retrieve it; it’s knowing that if ROANOKE BUSINESS

cover story

Quality of life “is the first thing that comes out of our mouths,” says Melinda Payne, Salem’s director of planning and development.

your power goes out, it will be back on quickly; it’s knowing that there are things to do, like sitting at a baseball game on a Friday evening

amid the beauty of the Blue Ridge Mountains; it’s knowing that your school system ranks among the best in the state and nation.”

While defining the term can be a challenge, officials say talking about it is a requirement. Measuring it? That’s difficult. For example, the outdoors has become a major quality-of-life selling point for the region, seen as most valuable in developing the type of workforce that will attract companies. Even so, says Beth Doughty, executive director of the Roanoke Regional Partnership, “it’s difficult to quantify the impact of the outdoor narrative in terms of its use as a recruiting tool for talent. But anecdotally, companies such as Carilion [Clinic], large law firms and others have all told us they leverage the outdoor narrative in their recruiting.” Doughty further notes that all of the local tech companies that participated in a spring event for college students mentioned the outdoors as a regional “advantage.” The partnership has been successful in attracting companies that enhance the outdoor theme, including Roanoke Mountain Adventures, Underdog Bikes, River Rock Climbing, Rare Earth Adventures and Muddy Squirrel, which offers training and outdoors events.

Bicyclists stop at an overlook on the Blue Ridge Parkway near Roanoke.

JUNE 2015

Top: Photo by Don Petersen Bottom: Photo courtesy Virginia Tourism Corp.

“We also developed the lead for the BackCountry.com East Coast distribution center, which is located in Christiansburg,” says Doughty. “The strength Doughty of the outdoor narrative we created and promote also spurred the creation of a new publication, Life Outside, from Leisure 360 media.” The outdoors emphasis “simply strengthens and distinguishes the narrative for the region’s sales proposition for attraction of business and talent,” she says. “It is not a silver bullet.” The quality of the area’s outdoors is not the only message economic development leaders deliver, Doughty emphasizes. “Workforce, cost structure and connectivity also are important assets. And the narrative alone will not ensure success if we don’t have the real estate product that meets the company’s needs. We have limited large acreage and almost no large, modern industrial buildings.” Over the years, the topics of economic development discussions have changed. A few years ago, the region was discussed in terms of housing, education, crime and other measures. “Now it is much more about lifestyle,” says Doughty, whose partnership markets Alleghany, Botetourt, Franklin, and Roanoke counties, the cities of Covington, Roanoke and Salem and the town of Vinton. “Quality of life is one of the Roanoke region’s strongest assets; so why wouldn’t we want to make that the centerpiece of our pitch?” she says. The partnership sells the region as a unit. “No locality is an independent functional economic unit because no one other than each government respects the locality borders for economic interaction,” says Doughty. This united front does not prevent an individual community from emphasizing its special qualiPhoto courtesy Virginia Tech

ties, like Salem’s Payne does when she points to the city-owned electric company as an asset. Joe Meredith, president of the Virginia Tech Corporate Research Meredith Center in Blacksburg, always pitches the environmental quality of the New River Valley “It’s clean; it’s natural; it’s an area where people engaged in outdoor sports can do just about anything.” The attraction to a quality outdoor environment is most conspicu-

ous at the Corporate Research Center, where bicycle racks are standard and soccer and lacrosse fields and basketball courts are de riguer. The business park also has a fitness center, a Starbucks and a charging station for electric cars. Attachment to an area is “much more than about business; it’s about their lives,” says Meredith, who came to Blacksburg in midcareer because “I like to hike, bike, be outdoors. I’m trying to create a place for people like me who want to come back to Blacksburg and have a high-end job.”

Virginia Tech attracts young people and young companies to the region. Michael Fleming, a Tech alumnus, is CEO of TORC Robotics at the Virginia Tech Corporate Research Center.

ROANOKE BUSINESS

cover story The region’s night life includes formal events such as this one at Center in the Square in Roanoke.

JUNE 2015

Yes, he says, Virginia Tech is a major attraction to retain young adults or to attract midcareer professionals. Yet more than half the people who work at the center hold degrees from other schools and were recruited for their skills. Attracting those people means paying attention to things such as low business costs and cultural facilities. Defining an area’s quality of life may be elusive, but one thing is certain: no community can be what it isn’t. “I don’t think you can build an artificial quality of life,” says Doughty. “In only six years this region’s community narrative has changed from an ‘old railroad town’ to an ‘outdoors town.’ That’s because the story about the outdoors was pieced together and told to the people who live here, first and foremost. Yet, it would not have taken root if it was artificial. You can’t sell a product that doesn’t produce what you say it will.” Yet a community can develop what it already has. For guidance on enhancing their areas, communities turn to documents such as the Soul of the Community study conducted in 26 U.S. cities by the James L. Knight Foundation from 2008 through 2010. It set out to answer these questions: “What makes residents love where they live? What draws people to a place and keeps them there?” The study found that “social offerings” were among the most prominent among reasons a person feels attached to a place. Social offerings include a vibrant night life, gathering places, cultural opportunities and the feeling that people in the community care about each other. Two other prominent attributes were “openness,” defined as a community that welcomes all types of people, and “aesthetics,” physical beauty, parks and open space. Education was important, but respondents throughout the 26 cities had greater praise for higher education than for K-12 public schools. The study concluded commuPhoto by Don Petersen

nities should maintain and promote parks, playgrounds and trails and support higher education. The study also suggested communities should take advantage of opportunities to promote tolerance and diversity, find ways to bring people together to foster more interaction and to improve perceptions of the quality of K-12 education. The desire for connecting with others was reinforced by the findings in a 2012 Roanoke Valley-Alleghany Regional Commission Area Livability Survey. Forty-eight percent of respondents ranked “increasing volunteerism in the community” a priority while 56 percent said “being a community in which people care about each other” was a priority. Sixty-eight percent of those in the survey listed “everyone doing their part to make the community a better place to live” as a main priority. The Roanoke City Market area, Roanoke County’s Green Ridge Recreation Center and civic centers are all examples of amenities that translate to “public interaction and gathering places,” Doughty says. “Community attachment drives prosperity.” RoanokeOutside.com, a website initiated by the regional partnership but now led by a nonprofit agency, promotes high-quality, conservation-conscious outdoor living. The Blue Ridge Marathon in April and the Go Outside Festival along Roanoke River in the fall are examples of ways the area works to attract young people, says Doughty. “Modern economic development follows the protocol that jobs follow people; more so than people follow jobs. By telling the story of the Roanoke region’s fantastic outdoor amenities, we attract people who can work from anywhere, as well as people who select a place to live based on their interests and then look for a job.” Roanoke’s recently announced commitment to establish a business accelerator is another example of community commitment, says Jonathan Whitt, president and CEO of Photo courtesy of Salem Red Sox

According to Melinda Payne, Salem’s director of planning and development, “sitting at a baseball game on a Friday evening amid the beauty of the Blue Ridge Mountains” is part of the quality of life in Salem.

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cover story Jill Loope, Roanoke County’s economic development director, says quality of life is “all part of the community evaluation equation.”

community.” The companies need mentoring, access to capital and other services an accelerator can provide. Whitt prefers talking about “quality of place” more than quality

of life, but finds the term inescapable. The council’s website even proclaims: “Stunning views, low costs, high tech, vibrant cities, scenic outdoors — and a quality of life you’ve been looking for.” Wayne Bowers, Roanoke’s director of economic development, on the market, one of the symbols of the city’s quality of life.

JUNE 2015

Workforce No. 1 There is no getting away from the importance of having a trained workforce, however. Whitt says the first comment he hears from a prospect is “tell me about the talent pool. Where are these engineers, programmers, technicians? Where are these people going to come from?” His answer involves talking about Radford University and Virginia Tech in the New River Valley and Virginia Western and Roanoke College in the Roanoke Valley. The council works to connect workers to companies and companies to colleges. Furthermore, it encourages students to post résumés and companies to post jobs on the council’s website. Other important measures prospects want to know about include nightlife, cost of living index, transportation, schools and broadband, Whitt says. Enhancing the region’s quality of life requires work on several fronts, “sort of like a general going into battle. We are tackling broadband, trying to connect workforce development in a great way and devoting more money to outdoor recreation.” If Whitt had to choose one or two points to build on, he would continue “pushing outdoors” and “push hard on talent development.” Investment indicates progressiveness, notes Jill Loope, Roanoke County’s economic development director. “Investment in quality public facilities is a demonstration of community pride and progressive leadership. This cannot be easily measured, but it’s all part of the community evaluation equation.” She cited the South County Library, a $15 million facility that opened in 2012, as an example of “investments in public facilities that contribute to a company’s favorable impression of our community and region.” Of course, Loope notes, a community has to have other attributes: a clean, safe community with stable government, adequate real estate suitable for their operation and acPhotos by Don Petersen

cess to labor are initial primary considerations. “At the end of the day, companies want a location where they can be profitable. Transportation access for the distribution of product as well as proximity to their customer base are key to the decision making process,” says Loope. Each locality in the region can list major investments that enhance that community. Salem’s Payne points to Salem’s Taliaferro Sports and Entertainment Complex, which includes the Civic Center and Salem Memorial Park, home to the Salem Red Sox, as one of that city’s selling points – “these facilities contribute immensely to the quality of life in Salem.” In economic development, quality of life covers “broad areas such as education, health care, recreation, career choices and the economic well-being of the community,” says Jay Brenchick, Botetourt County’s economic development

Quality of life is important, but employers also want programs such as Virginia Western Community College’s Workforce Solutions.

manager. “While some people may focus on just one of those aspects, such as recreation amenities, economic development must consider multiple facets so that we help meet the needs, both of those in our com-

munity and those considering a move into our community.” A good ranking in community health doesn’t hurt, either, says Brenchick. The National Association of Counties’ 2015 County Health

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cover story Rankings & Roadmaps ranked Botetourt 14th in the state in a study that measured clinical care, health behaviors, social and economic factors, and the Brenchick physical environment. “These high rankings are significant for various reasons,” notes Brenchick. “Visitors and people looking to move to the county are attracted to areas with higher

standards of health and wellness. Moreover, companies considering locations for new or expanded facilities look for healthy citizens who could become happy and productive employees.’’ Wayne Bowers, director of economic development for Roanoke, sees a new mixed-use apartment complex planned on a former cityowned parking lot downtown, as speaking volumes to a company eyeing the area. It shows an in-

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vestment by the city and a private company to continuing to revitalize downtown. “So many prospects want to see downtown.” Getting the message out For Debbie Lovelace, human resources senior director for Carilion Clinic, recruiting doctors often means making them aware of the area and its prox- Lovelace imity to Smith Mountain Lake, its many festivals and the value of its two civic centers. “Roanoke is a place where commute times are short, educational and cultural opportunities are excellent, and there’s a friendly neighborhood feeling where you’re eager to see your neighbor and they’re eager to see you,” says Lovelace. She talks about the fresh food at the farmers markets, golfing, biking on the Blue Ridge Parkway, hiking on the most scenic portions of the Appalachian Trail, greenways and a growing micro-brewery industry. “New and renovated housing is available for downtown, suburban and farm living, and we’re just a short drive from large metropolitan areas.” Lovelace notes that 11 of the 40 graduates of the Virginia Tech Carilion School of Medicine in 2015 will stay in the area to do their residencies. “Many candidates call it a hidden gem that they didn’t know existed,” says Lovelace. “We often use the phrase A ‘ merica’s best kept secret’ in our recruitment materials.” The Bridges, a 22-acre development of housing and restaurants across from the medical school will further enhance the area, along with a kayak launch and greenway access near Carilion’s Riverside Campus and the Carilion Roanoke Memorial hospital, says Lovelace. What about being able to grab a latte at the Starbucks across from the medical school? Does that represent a good “quality of life”? Certainly, if one likes lattes.

COMMERCIAL INSURANCE

Workers’ comp It’s complicated, confusing, ‘very misunderstood and very daunting’ by Joan Tupponce

orkers’ compensation is typically not only one of the most costly insurance premiums for companies but also one of the most complicated and confusing lines of insurance to understand. “It’s very misunderstood and very daunting,” says Nathan Kerr, vice president of Scott Insurance, a division of James A. Scott & Son, Inc. Employers in Virginia who have more than two part-time or full-time employees are required to have workers’ compensation, but the rate can vary from state to state. “A state that has a higher frequency of claims, settlements or judgments may have a higher rate than other states,” says Kerr. “A more business-friendly state is going to have lower workers’ comp state rates.” The commonwealth enacted the Virginia Workers’ Compensation Act in 1918 — it became effective in 1919 — to provide “a no-fault remedy for workers who are injured in their employment,” according to the laws. “It’s the sole and exclusive remedy for on-thejob incidents or accidents in the course of employment,” says Kerr. “It helps people pay for medical bills, and it pays lost wages.” It is critically important for employers to understand that “workers’ compensation is a no-fault system and workers’ compensation statutes were written to provide a quick, fair and more efficient way of paying for workplace injuries,” says Sara Rowe, vice president and manager of claims adjusting for Rutherfoord, a Marsh & McLennan Agency LLC company. States differ in the claims they will accept under workers’ compensation. For example, one state

Photo by Don Petersen

Worker’s comp is complicated. According to Roy Bucher, president of Chas. Lunsford Sons & Associates, if you have employees in more than one state, it’s more complicated.

may accept a carpal-tunnel syndrome claim while another state may reject the claim. Claims and rates get even more convoluted if you have employees who work in different states. If you fall into that category, “you will have different rates for each state,” says Roy Bucher, president of Chas. Lunsford Sons & Associates Inc. in Roanoke. “Some states such as Ohio are monopolistic because they don’t have workers’ comp. The state provides workers’ comp and pays for claims with a state fund.” According to a 2014 study by the Oregon Department of Consumer and Business Services, the national median rate for workers’ compensation dipped from $1.88 per $100 of payroll in 2012 to $1.85

per $100 of payroll last year. According to the study, Virginia has the fourth-lowest rate in the country, tying it with Massachusetts. Premiums in Virginia were $1.17 per $100 of payroll, which is 63 percent of the national median of $1.85. The Virginia Workers’ Compensation Commission saw a decrease in total claims filed from 2011 to 2013, from 58,138 in 2011 to 55,215 in 2012 and 54,519 in 2013. The cost of workers’ compensation is decided by three factors: classification code (the type of work performed), a company’s payroll and a company’s loss history. Companies that have high claims as well as employees with hazardous jobs will have higher premiums. For ROANOKE BUSINESS

commercial insurance example, the base rate for the classification code for roofer is $11.53 per $100 of payroll as opposed to a clerical position, which is 9 cents per $100 of payroll. Because there are more than 775 classification codes, it’s very important that employers choose the right code for workers. “If they are misclassified, it could affect your experience modification rate in the part of the calculation that compares you to your industry,” Kerr says. An experience modification rate is determined by a company’s size, actual losses and expected losses for its type of industry. “If you add up expected and actual losses and they were identical, your experience modification rate should be net neutral or 1.0 percent,” says Stephen Hamilton, president of Commercial Insurance Services Inc. in Roanoke. “If your actual losses are less than expected, you would have a credit modification. If the actual losses exceeded your expected losses, more than likely you will have a debit modification rate.” A bad experience modification rating can also affect a company’s ability to get work. “It depends on the industry type,” Hamilton says. “You see that most of the time with contractors if they are applying for work and bidding on a job with a larger contractor. Their experience modification will be used as a factor to determine eligibility.” One practice that can factor into a company’s losses is the use of uninsured subcontractors. Any independent contractor (subcontractor) with two or more employees will need to have its own workers’ compensation policy. Any uninsured subcontractor “will be picked up on your workers’ compensation and go against your experience modification when your workers’ compensation carrier audits your payroll,” Bucher says. “You will need a certificate of insurance from their carrier or the subcontractor will be picked up on your payroll. You need to make sure that any subPhoto by Don Petersen

Stephen Hamilton, president of Commercial Insurance Services, says too many losses can cost a company work.

contractor that works for you has workers’ compensation and can provide a certificate of insurance.” Some employers who file a workers’ compensation claim may not understand there are two components of workers’ compensation claims: medical only and indemnity (any claim that includes lost wages).

Indemnity claims are factored into the experience modification calculator at 100 percent of the claim’s value up to a cap of $15,000. “Any lost pay affects your experience modification by 70 percent or more. If the claim remains at the medicalonly level, the company gets a 70 percent discount,” Hamilton says.

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commercial insurance “It’s an incentive for employers to try to bring injured workers back to work in some capacity.” Businesses can reduce their workers’ compensation rate in a variety of ways. One of the most important is paying attention to company losses. “At the end of the day it’s the claims that are driving everything,” Kerr says. “You want to prevent a claim before it happens. You want to control your risks.” Preventing losses can be accom-

plished by having good safety processes and techniques in place. “If you keep your workers’ comp losses low, you keep your premiums low,” Bucher says. “Insurance companies have loss-control people that work with a client to help prevent losses. Some insurance agencies will have loss-control specialists as well.” One of the most effective ways to control premiums is to implement a comprehensive, management-driven occupational health

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and safety program, that focuses on “eliminating injuries from occurring in the first place,” says Rowe. “Employers should develop sound hiring practices Rowe and provide thorough job orientation and safety training to all employees. They should also provide continued safety training in an effort to avoid occupational injuries.” Employers can also reduce their rates by having a plan of action for workers who are injured on the job. “From a risk-management standpoint, it’s extremely important to establish a panel of physicians,” says Hamilton. “In Virginia, employers are required to give insured workers a choice of three physicians that can treat their injury. The physicians cannot be in the same practice.” An employee can receive treatment from any of the three physicians recommended. “If an employer doesn’t give the employee names of physicians, the employee can seek treatment from whomever he or she chooses,” Hamilton says, adding that costs for employees to receive medical treatment from an emergency room are up to six times higher than seeking treatment from an established physician network or urgent care facility. He finds that many companies don’t have a strong understanding of how to manage workers’ compensation. “There is a lot of education that needs to be done in the industry to help employers with workers’ compensation,” he says. “Employers have to take ownership of it as well.” Currently there are several industry challenges that present uncertainties for workers’ compensation in the future. They include obesity in the workforce and an aging workforce. “We are dealing with more obesity than in the past,” Hamilton says. “Also, older workers are less likely to have a claim but if they do, they are out longer and costs are higher.”

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EMPLOYMENT LAW

Josh Wilkinson is a sales executive for Manpowerâ&#x20AC;&#x2122;s Roanoke office. The company found that 27 percent of the Virginia companies surveyed expect to increase hiring.

JUNE 2015

The ‘new normal’ Some companies are hiring, but many are using temporary workers by Jenny Boone

he recession forced many companies to cut back and, in some cases, cut jobs. Now, in this postrecession era, jobs are returning — but not all are permanent positions. Some businesses are offering more temporary jobs, or in some cases, replacing a former full-time, permanent job with a short-term position or even outsourcing some of the work. For some companies, this trend began before the recession. As businesses consider hiring people for short-term stints, they are turning to local attorneys who specialize in employment law for advice and hiring guidelines. “Generally, companies are still cautious in terms of ramping back up” with hiring, says Todd Leeson, an attorney with Gentry Locke in Roanoke. Leeson He encourages companies not to shortcut the process when hiring temporary employees. For example, they should do proper due diligence, with background checks and other research. Staffing firms often provide these services for companies. The short-term jobs shift, in fact, has been a boon for staffing firms, which are trying to keep up with demand. At Express Employment Professionals in the Roanoke and New River valleys, the number of companies working with the staffing firm for temporary and other jobrelated assistance has increased by about 33 percent, compared with

Photo by Natalee Waters

the same time last year, says branch manager Tracy Wood. The jobs mostly include customer service, marketing, insurance and accounting-related positions, and some seasonal stints. Wood would not release detailed hiring figures, citing competitive reasons. “Companies are not sure the next time they will be able to bring on someone full time,” Wood says. “Most of them will say, ‘We need to wait and see what’s going to start happening next quarter,’ before a position may turn from part time to full time. “They are kind of treading lightly,” she says. Job placements and related business is up 10 percent this year, compared with last year for Manpower, a national staffing firm with a Roanoke location, says Josh Wilkinson, a sales executive for the company’s Roanoke office. Those industries include manufacturing, office and accounting, “The new normal since the downturn has been it’s tougher to forecast what businesses will forecast,” he says. CareerBuilder, a jobs website and national recruitment firm, predicts the number of temporary jobs offered nationally will grow 3 percent from 2014 to 2015 and 13 percent from 2014 to 2019. The temporary help services industry was one of the first to add jobs when the recession ended, according to CareerBuilder. “Labor markets nationally and in Virginia are a little bit soft,” says Gary Wagner, an economics professor at Old Dominion University, explaining the reason for the inROANOKE BUSINESS

employment law Tracy Wood is branch manager of the Express Employment offices on Electric Road. Garry Norris is the company owner. The number of companies using Express to fill vacancies increased 33 percent in the past year.

crease in temporary job offerings. Generally, companies should keep several points in mind when hiring part-time or temporary employees, says Victor Cardwell, an attorney at Woods Rogers PLC in Roanoke. Businesses should make sure Cardwell they know the work schedule employees will keep and have an established system to track those hours. This may keep unanticipated problems from cropping up, related to the hours that a temporary employee works and how they are compensated, he says. In the past six months, Virginia 22

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gained back most of the jobs it lost during the recession, though some areas of the state haven’t regained all of those jobs, he says. Virginia’s unemployment rate, at 4.7 percent in February, was at its lowest since October 2008, but that rose to 4.8 percent in March, according to the federal Bureau of Labor Statistics, and the unemployment rate isn’t quite as low in the Roanoke and New River valleys. Unemployment peaked at 8.4 percent for the Roanoke metropolitan statistical area in 2010, fell as low as 4.5 percent in December 2014 and sat at 5 percent in March of this year, according to the Bureau of Labor Statistics. Unemployment peaked at 9.5 percent for the

Blacksburg-Christiansburg-Radford MSA in January 2010. It fell as low as 4.5 percent in December and sat at 4.9 percent in March, according to the BLS. “It’ll be at least two to three more years before labor market conditions improve to what we feel like is normal,” Wagner says. “Businesses are being Wagner cautious because they can be.” Daniel Wallace is waiting to find out whether a job that he landed through Express Employment will turn into a permanent position. Wallace moved to Botetourt County last year, and through Express, Photos by Natalee Waters

he was hired as a reporting analyst with Ace Private Risk Services, an insurance company in Salem. Wallace, who has about 10 years of experience in the field, has worked full time for the company since September, but he still doesn’t know whether his job will become permanent. The position has been offered temporarily in the past. He since has relocated to Washington, D.C., and is working for Ace from home. “They said they were hoping to get me in [permanently] by Christmas … Christmas turned to March. Now it’s May. I just don’t know, but I know some of them really want me,” Wallace says. A Manpower Virginia survey for the second quarter of this year reports that 27 percent of companies surveyed expect to increase hiring activity, which is up 17 percent from the same time last year. The job prospects are best in several industry categories, including construction, wholesale and retail, and professional and business services. Leeson counsels businesses to ensure that they classify independent contractors correctly to meet IRS laws. Companies are not required to pay or withhold income taxes, Social Security tax and other related taxes for independent contractors as they do for employees. Several years ago, the IRS began to crack down on misclassifications of independent contractors. An independent contractor, as defined by the IRS, is an employee who is selfemployed and paid by an employer to do a specific job. The employer directs only the result of the work, but not what will be done and how it will be done. Compliance with the Affordable Care Act, which requires companies to offer health insurance to employees who work 30 or more hours a week, also has led many businesses to seek legal counsel while potentially adjusting the hours of their workforce, Leeson says. Overall, as the economy im-

Many companies are reluctant to hire full- time employees, but temporary employment services are hiring.

proves gradually, many businesses want to hire again, Cardwell says. Even so, “the businesses that had to reduce [employees] are op-

erating more efficiently,” he says. “They are looking more closely at the staffing they had before and what they bring back in.”

ROANOKE BUSINESS

JUNE 2015

INTERVIEW with Beth Macy, author of “Factory Man”

Factory Girl

Journalist Beth Macy becomes best-selling author (and inspires a new beer) by Tim Thornton

“I

know I just wrote a business book,” Beth Macy likes to say, “but I’m really not a business writer.” Her business book is called Factory Man. It got great reviews, became a New York Times best-seller and made some best books of the year lists, including, apparently, Tom Hanks’. The star tweeted that Factory Man deserved 142 stars, then bought the rights to turn the book into a miniseries. It’s not clear when Factory Man will make it to the screen, but it’s out in paperback this month. Before Factory Man was published, Salem’s Parkway Brewing Co. produced Factory Girl Session IPA in honor of the book and its author, with a label that puts Macy’s face and hair into a Rosie the Riveter poster. Macy’s working on her second book. It’s about George and Willie Muse, albinos born to a black Franklin County family. They were kidnapped, exhibited in circus sideshows, stolen by another sideshow man and – well, you’ll have to read the book. Macy spent nearly a quarter of a century at The Roanoke Times writing about all kinds of subjects, but always focusing on people – often people who didn’t have a lot of power. “I do have this chip on my shoulder,” she says. “I always want to stand up for the person who doesn’t have a voice and sometimes that means I’ve got to slap around the person who always has the microphone. I’m willing to do that, and I’m willing to hear feedback that I took a cheap shot and maybe even concede it a little bit.” Macy’s first two books have grown from stories she wrote for the newspaper -- work she says prepared her for her new gig. “Oh, it’s exactly the same work,” she says. “It’s just different deadlines, and that’s why I break it up because otherwise it would be too overwhelming. I sit there and I read and talk to people I don’t know. I try to learn about things I don’t know anything about. And I call people back after I learn

Roanoke Business: What have you learned about business in general and the furniture business in particular? Beth Macy: My strength is people, so that’s the way I approached it. Maybe that’s one lesson you could take away from it. If you’re not a business writer or you’re not an expert in such-and-such, what are you good at and how can you dig into something that you feel that you’re in over your head with in a way Photo courtesy David Hungate

better and ask better questions.” It’s the same, only different. “It’s longer, obviously, and it’s more in-depth and I can put myself in the story. [Something newspapers generally don’t allow.] … Some of the best things that would happen in an interview would be the interchange between you and the people you were interviewing, and you were never allowed to put that in the story. But with Factory Man, the way these people interacted with me said a lot about who they were.” Factory Man is about how two furniture companies – one in Bassett, one in Galax – responded very differently to cheap Chinese furniture coming into the U.S. One fought to protect its manufacturing business. The other closed plants and became an importer. The story has international intrigue, family fights, dynasties and lots of people – people who make decisions and people who live with the consequences. “I had an interesting email,” Macy says, “from a worker at Norfolk Southern who said she’d been reading my book and she’d been saying to herself, ‘Why don’t these people just move?’ … And then she got told she has to move to Atlanta because her Roanoke job was going away. She was just devastated. She said, ‘I haven’t been able to finish your book.’ ” The woman told Macy she’d been happy for the first time in her life. She moved to Roanoke after a divorce to be near family. She made lots of friends and “really is totally into the community,” Macy says. “Family and community, that’s why she didn’t want to move.” If a woman with an office job and a decent salary found it so hard, Macy says, imagine what it was like for those furniture factory workers whose jobs disappeared. A few minutes after she’d told a room of journalists at the Virginia Press Association’s annual spring conference about Factory Man and what led her to it, Macy sat down to talk with Roanoke Business.

that makes you understand it? … It was all about being persistent and hearing one thing from one person and then going to another person and then asking them about it – and maybe you’ve already interviewed that second person – and then triangulating. And then reading. I was constantly reading. I was reading The Economist. I was reading Tom Friedman’s books. I read this great book called Factory Girls, which is about life in a changing China … I just wanted to

know the material really well … It was a lot of reading. I basically didn’t read anything but business and furniture, race, labor relations books for a year and a half. RB: In the old days, the company ran the town and the families ran the company. It seems like that hasn’t completely faded away. Is that social structure still there even though the economic structure that upheld it is gone? ROANOKE BUSINESS

interview Macy: I think it is. A lot of the people have moved on. Their children have moved on to other places, but the people that are still there – I mean, Bassett Furniture is still a big company and it’s headquartered in Bassett, Virginia. A lot of people said, well you should move to High Point or Greensboro and [Bassett Furniture Industries CEO Rob Spilman] said no. I’m going to stay here. I’m going to help the community … The company and the family are still pretty powerful there … They still wield a lot of power. They don’t employ that many people … A lot of the initiatives to bring back the community, the people on the boards of those organizations are the very same people who made the decisions to close the factories. RB: You talk about Rob Spilman wanting to stay and help the community, but half of the workers in Henry County lost their jobs.That was a company decision, too. Macy: I think it was really hard for him and complicated. There was a lot of pressure from his shareholders, board members jumping up and down because they’re not getting their dividends. They brought a guy in named Paul Fulton from North Carolina who had been the CEO of Hanes, and I think he’d been the head of the [University of North Carolina’s Kenan-Flagler] Business School. He was Rob’s mentor … He said, “These plants don’t make money. We’re going to close them.” I really am so grateful to him that he shared the situation he was in. I don’t think he’s a bad person. I think he’s a little tone deaf. I don’t think he’s a bad person. I think it was really hard. I don’t know how he drives through that community every day. I guess he has blinders on. It would be really hard for me. It was really hard for him. RB:You said one of the questions you wanted to answer was how does the CEO sleep at night. Did you find that out? Macy: I don’t really know the answer to that. I tried to get at that in a number of 26

JUNE 2015

different ways. I put in that scene where he makes his kids watch the guy on TV really bashing him, and his kids get really upset. That was a great moment for him to share. RB: Did you discover any great truth, any great lesson? Macy: One thing is, if you look at that economy, it was all textiles and furniture.

Macy: Now I have to pay self-employment tax. That’s hard. I have to keep all my expenses, an accountant. Our taxes are complicated now. I work harder than I’ve ever worked, more hours. The speaking has become important to my livelihood. The book checks come three or four times before the advance kicks out, and you start making royalties. The checks are few and far between. They’re big checks, but you have to be really careful with them. So the speaking really helps a lot. I have a speaking agent. I have a literary agent, an entertainment lawyer. I don’t talk to them every day or anything. And then Tom [her husband Tom Landon] has had to pick up a lot. He helps me a lot. He’s done some videos. He’s working right now on some videos for when the paperback comes out June 9. I had three talks this week, and I had to produce about 5,000 words. I can’t do things I used to do. I can’t make dinner. I can’t spend as much time with my kids as I used to, but he’s picked up a lot of that. He also reads my drafts. He listens to me talk about my problems. RB: You or your people have talked to Tom Hanks or his people. Is that going to be a whole other complication? Macy: It’s too soon to tell. I don’t know what that’s going to look like. I don’t know how involved I’ll be.

So that whole idea of having a diversified economy, you see Roanoke experiencing that now. It’s here because the railroad was here. And for so many years it was literally a company town – in the early 1900s, the late 1800s. As that dissipates and you see that now – they just announced 500 and something jobs going away – the need for other kinds of jobs is great. You see Carilion sort of filling that gap, too, but they’re huge, too. RB: Talk about your entrepreneurship.You worked at the paper for 25 years. Now you’re a company.

RB: How does that happen? Tom Hanks gave the book 142 stars, but it seems like a big step from ‘I like the book’ to ‘I’m going to make it into an eight-hour miniseries.’ Macy: My agent handled all of that. It’s like a secondary market for him. He sold my book, now he wants to sell it for film … I think we tend to think our stories here in this community aren’t worthy of some big HBO, but they are. They’re really good stories. They’re human stories. If you tell them the right way, they’re fascinating. Photo courtesy Hachette Book Group

HIGHER EDUCATION: Radford University

A changing environment

Radford University is working to stay competitive and become better known

Nearly a third of Radford University’s freshmen identify themselves as minority, and almost a third are the first in their family to attend college.

by Shawna Morrison

here’s a lot going on at Radford University. There soon will be a change at the top, with the school looking for a new president. Several major construction projects are underway, and RU recently launched a new marketing campaign to familiarize more people with the school. Research found that people in the Roanoke and New River valleys and far Southwest Virginia know about Radford University,

Photo courtesy Radford University

but many people in other areas of the state don’t know anything about the school or have outdated perceptions of it, says Vice President for University Relations Joe Carpenter. Some people, he says, didn’t even know the school is coed – something that has been true since 1972. “Universities today are in a very different environment than they were just a few years ago, and we want to make sure that Radford

remains competitive,” Carpenter says. “We’ve done well in admissions, but looking at the market in the near future, students have a lot of options … and we want to improve our marketplace with students so they realize what options are here at Radford.” The campaign includes ads highlighting the success stories of students, alumni and faculty. As part of the effort to raise its awareness, the school will stop using the ROANOKE BUSINESS

higher education The $52.8 million home of the College of Humanities and Behavioral Sciences will be the largest academic building on campus when it opens next year.

“RU” abbreviation off-campus, instead putting focus on the school’s name. The campaign kicked off in the spring but there are plans for a larger effort in the fall, Carpenter says. President Penelope Kyle, who became the school’s leader in 2005, announced in late March that she plans to retire June 30, 2016, at the end of the next academic year. Kyle is the university’s sixth president and its first female president. With Kyle at the helm, Radford offered its first doctoral programs and has updated many academic facilities on campus through renovations and the addition of new buildings. Among the school’s first doctoral programs: doctor of psychology, doctor of nursing practice and doctor of physical therapy. A doctoral degree in education is awaiting approval by the State Council of Higher Education. In the last decade, the university, which sits on about 204 acres in the city of Radford by the New River, has secured approval for more than $330 million in capital projects. The $32 million Student Recreation and Wellness Center 28

JUNE 2015

that opened in December has seen an average of 2,000 visitors a day, Carpenter says. A $52.8 million building that will house the College of Humanities and Behavioral Sciences – the college with the highest enrollment on campus – is slated to open next year and will be the largest academic building on campus. The $49.5 million Center for the Sciences is expected to be ready this fall and will include a

planetarium. Plans also are in the works to complete new intramural fields within a couple blocks of the new wellness center. “We’ll have arguably some of the most state-of-the-art classrooms and labs, built and designed based on how students learn and professors teach today, not necessarily the way buildings may have been conceived under the teaching model of 50 or 60 years ago,” Carpenter says. Meanwhile, the school has been working steadily to renovate residence halls. Within another year and a half, Carpenter says, all but one of the residence halls will have been renovated. Administrators have not yet figured out how to update Muse Hall, a 13-story building that houses about 950 students. On the enrollment front, Radford is on the cusp of reaching a goal of 10,000 students. It enrolled 9,798 students in the fall of 2014 and hopes to see that number rise this fall. “That seems to be about the right size for the university with the capacity that we have for both housing and capacity in the classrooms and facilities,” Carpenter says. In the fall of 2013, the school enrolled a record-breaking 9,928

students. On average, about 90 percent of students are undergraduates and 10 percent are graduate students, Carpenter says. The student body at Radford has become increasingly diverse. Almost 33 percent of freshmen identify themselves as ethnic minorities, Carpenter says, a substantial increase from 12 percent in 2005. Nearly a third of those in the freshman class are the first in their families to go to college, Carpenter says. “We often will affiliate a college degree with the American dream, and that’s still happening at Radford.” Janie Maitland, a junior from Bluefield, says her dad earned an associate degree when he was serving in the U.S. Air Force, but she is the first in her family to work toward a bachelor’s degree. Maitland, who is majoring in media studies with a concentration in journalism, says her older brother and sister never were interested in college. Neither was she, until her junior year of high school when she was placed in a senior-level class that researched colleges. Radford University was the first school she visited. “I loved the campus, and I was very interested in media studies from the

The $32 million Student Recreation and Wellness Center sees an average of 2,000 visitors per day.

get-go,” Maitland says, “so I met the professors at Highlander Day and they were all amazing. They’re really what make Radford such a great school for kids like me who thought they couldn’t make it in college. They really build you up and point out your strengths while simultaneously helping you with your weaknesses.” Madi Kline, a sophomore from the Mechanicsville area, is also the first in her family to pursue a degree. Kline, a social work major, said she first heard about Radford when she was researching schools with social work programs. “I really didn’t know what to expect when I first came here to visit, other than the fact that I had a feeling it was smaller than most of the other schools I was looking at, but I liked that about Radford,” she says. Teaching and nursing are two of the most popular courses of study at Radford. In 2013, the National Council on Teacher Quality named Radford as one of only 13 U.S. schools with “Multiple Strong Programs” in teacher preparation. The school’s legacy of educating teachers is a long one. It got its start in the spring of 1910 as the State Normal and Industrial School for Women at Radford, founded by the Virginia General Assembly. In 1924, its name was changed to State Teachers College. During World War II, it became the women’s division of Virginia Tech as part of an effort to consolidate higher education across the state. The school became autonomous again in 1964 and became a university in 1979. “I think Radford is, in some respects, an undiscovered gem,” Carpenter says. “It offers a quality education at a good value and our students and our alumni … go on to do good things. “When you look around the state, the state’s changing. America’s changing. And Radford has changed as well. Radford, I think, represents a great opportunity for a lot of people.” Photos courtesy Radford Univeraity

Enrollment 9,798 students in fall 2014

Gender 58% of students are female; 42% are male

Average class size for freshmen 33 students

Number of undergraduate and graduate programs 153

National rankings Named among the Best Colleges and Universities in the Southeast, Best Value Colleges and Best 296 Business Schools by The Princeton Review

History Founded by the Virginia General Assembly in 1910 as the State Normal and Industrial School for Women Tyler Hall was the school’s first official residence hall; sections opened in 1915, 1916 and 1923. Work to construct McConnell Library began during the Depression. In the 1970s, Radford began calling its athletic teams the Highlanders in recognition of the Scottish heritage of Southwest Virginia and changed the school colors from purple and gray to the tartan plaid colors of red, white, blue and green. Source: Radford University, www.radford.edu

ROANOKE BUSINESS

COMMUNITY PROFILE: Floyd County

Floyd County A community of entrepreneurs that sticks together

Cassie (left) and Scott Pierce started their Floyd business, Buffalo Mountain Kombucha, three years ago. They recently raised $16,000 on Kickstarter to purchase kegs, glass fermenters and brew kettles, allowing them to double production.

by Mason Adams

cott Pierce worked for Sherwin-Williams in Greensboro for 15 years before he cashed in his 401(k) and moved in 2011 with his wife, Cassie, and their two children to Floyd County. Eight months later, Scott and Cassie Pierce started a business

JUNE 2015

making kombucha, a fermented tea thatâ&#x20AC;&#x2122;s become popular as a pick-me-up packed with probiotics. They brewed at a kitchen in Willis and distributed their kombucha through regional farmers markets and the Harvest Moon health food store and Good Food Good People,

both independently owned Floyd businesses selling local products. Today, Buffalo Mountain Kombucha sells its products in Roanoke and the New River Valley. Earlier this year, the Pierces raised a little more than $16,000 on Kickstarter, a crowd-funding website. They will Photos by Natalee Waters

use the money to more than double their production from about 130 gallons to about 300 gallons per week, and they’re negotiating with retailers in North Carolina and the Washington, D.C., region. The secret to their success? “Quite honestly, the Floyd community sticks together,” says Cassie Pierce. “We support each other and lift one another up. That made it so easy” when it came to the Kickstarter campaign. Buffalo Mountain Kombucha is one of many small independent businesses based in Floyd. Of the 15,528 people who live in the county, according to the U.S. Census, about 1,200 are self-employed. That’s more than double the state rate, says Lydeana Martin, Floyd County’s community and economic development director. That figure doesn’t include part-time enterprises, whether it’s trading products grown on a homestead, repairing musical instruments or providing child care. Floyd County is chock full of farms, some of which sell commercially and others which operate solely within the region’s burgeoning barter system. Others run multiple businesses. Jack Wall and Kamala Bauers run three businesses employing about 90 people. Their first business is still the biggest. Wall Residences employs 72 people to fill the gap left by the closure of state mental institutions, supporting more than 400 individuals with significant disabilities at sites across the state. Another 12 work at Hotel Floyd, a cornerstone of the county’s tourism economy. Wall and Bauers’ newest venture is the Floyd EcoVillage, which includes a seven-unit, off-the-grid lodge, a conference center and two acres of gardens. Another of the county’s momand-pop businesses, the Floyd Country Store, has become iconic over more than 100 years of operation. It was built in 1909 and opened as a farm supply store. Over the decades it developed a reputation as a community center and became fa-

The Floyd Country Store has been in operation for more than 100 years.

mous for its Friday Night Jamboree, which attracts string musicians and flatfoot dancers. In 2005, Woody and Jackie Crenshaw bought the building, renovated it and expanded its calendar of events. Last fall, the Crenshaws sold

the store to husband-and-wife team Dylan Locke and Heather Krantz, artistic director at Roanoke’s Jefferson Center and former facility administrator at Floyd’s June Bug Center, respectively. Krantz had worked at the store for several years

Hotel Floyd is just one of the three businesses run by Jack Wall and Kamala Bauers. They opened the hotel in 2007. The latest addition to the hotel opened in June of 2014.

ROANOKE BUSINESS

community profile

Jon Beegle is the chairman of the Floyd County Economic Development Authority and also owns Bootleg BBQ with his wife, Dana.

before moving up the road to the June Bug Center, a nonprofit community space that houses a variety of recreational and educational programs. “When I worked with the store, I was amazed at all the different types of people in the community that gathered here at the same time,” Krantz says. “It’s really a magical place, where people come together and disregard their differences and are accepting of each other. People from all over the world are here every week to play music together and get out on the floor to dance.” Krantz says she and Locke intend to add to the store’s events and hope to find a way to honor its history, especially “these dancers and musicians who have made this place what it is.” Don’t expect too many big changes, though: Krantz says she sees their role less as owners than as caretakers for the next 32

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generation. Floyd County’s small-scale entrepreneurship can come off as traditional to the mountains, but its economy plays out through 21stcentury technology, enabled largely by Citizens Telephone Cooperative, a county-based firm that’s become a regional leader in installing broadband technology. Enabled by federal stimulus funding, Citizens laid 186 miles of fiber optic line in the Roanoke and New River valleys. Floyd County remains the biggest source of residential customers, however, and although there’s always room for improvement, county households have better access to broadband service than many other Southwest Virginia counties. For an example of how that translates to county residents, consider the Floyd Group, a closed Facebook group that included more than 2,100 members as of April.

The group functions as a community bulletin board and classified ads section all rolled together and blended with the quirks of modernday social media. “A lot of people are moving to Floyd, trying to create a business or life here,” says Nicole Cooley, the group’s administrator. “There are also a lot of old-timers there. It’s a melting pot and good place to get information.” Actually, the county’s growth rate from 2010 through 2014 was only 1.9 percent — less than half of Virginia’s 4.1 percent. Perhaps new community members are more likely to seek out resources and are therefore overrepresented on the Floyd Group, or perhaps even relatively slow-paced growth stands out compared with the county’s neighbors, which are growing even slower or losing population. Members of the Floyd Group exchange information, recommend local businesses and advertise products and services. Local restaurants post daily specials. More than once a member has taken to the group to complain about a particular business, only to have the owner respond within minutes. In the winter, when firewood is in demand by many residents who use wood stoves, the group functions as a place to find not just wood but also real-time information on pricing and who is selling the best product. The group works in a similar way for real estate. “There’s always bartering and trading, people wanting to support one another, whether they’re neighbors or across the county,” says Jon Beegle, chairman of the Floyd County Economic Development Authority. “People want to buy local; that’s fairly strong here in Floyd. It’s fairly easy to market your wares just by word of mouth.” Beegle serves as an exemplar of the county’s entrepreneurial mindset. He and his family moved to Floyd in 1999 and started a landscaping business, which serves both Roanoke and the New River Valley. Photo by Natalee Waters

He started informally selling barbecue in 2009, then turned that into a full-fledged business, Bootleg BBQ, a year later. More recently, his wife, Dana Beegle, is completing a master’s degree in agriforestry at Virginia Tech, and the family is beginning to sell forest products such as shiitake mushrooms. Floyd County’s unemployment rate sat at 4.9 percent in December 2014, slightly down from 5.0 percent the year before, according to the U.S. Bureau of Labor Statistics. All of Floyd County’s public schools are accredited, with Willis Elementary School accredited with warning. In the late ’60s and ’70s, the county drew a number of homesteaders as part of the back-to-theland movement. That segment of the population has blended with families who have lived there for generations to create a vibrant culture that’s generated a bevy of homegrown businesses despite the fact the county’s located on neither

Floyd County Population (2014) Land Area Growth since 2010 Growth since 2000 Unemployment rate (March) Unemployment rate a year ago (March 2014)

15,578 380 sq. m. 1.9% 11.7% 4.6% 4.9%

Note: Schools meet all federal annual measurable objectives (AMOs). All schools are fully accredited except Willis Elementary School, which is accredited with warning. Sources: U.S. Census Bureau; U.S. Bureau of Labor Statistics; Virginia Department of Education.

an interstate nor a rail line. Nearly 40 years ago, Hollingsworth & Vose Co. chose to build a factory in Floyd after its owner stopped in for a meal at the Blue Ridge Restaurant. In late 2013, the company, which makes materials for filtration, battery and industrial applications, announced a $6.1 million expansion that created 17 new jobs.

What is it about Floyd that’s attracted so many entrepreneurs of various stripes? Says Krantz, the country store’s new owner: “It’s people looking for something more real, more authentic, and probably people more attracted to that way of living are attracted to having a business that helps them make a living or build those values in a community.”

ROANOKE BUSINESS

SPONSORED CONTENT | Roanoke Regional Chamber of Commerce

Tulane Patterson named Virginia Small Business Person of the Year The U.S. Small Business Administration’s Richmond District Office has named P. Tulane Patterson, the CEO and owner of Generation Solutions Inc. located in Roanoke and Lynchburg, as Virginia’s 2015 Small Business Person of the Year. “We are very excited to have Tulane Patterson as Virginia’s Small Business Person of the Year. He is the embodiment of an exceptional small business owner,” said SBA Richmond District Office District Director Carl Knoblock. “His leadership and drive have helped Generation Solutions to grow during some of the most challenging economic times. He has never lost sight of his most important asset – his employees – which in turn, give great care to the customers.” In a press release about Patterson’s company, the SBA noted that, Generations Solutions’ motto, “No place like home … for senior care,” says a great deal about its mission.

“The company understands older adults prefer to spend their retirement years living in the comfort of their own homes. The company provides an integrated program of home-care services intended to enable older adults to live comfortably, securely and independently in their homes as long as possible. Its homehealth aides provide personal care

2015 CHAMBER CHAMPIONS Brown Edwards Cox Business Gentry Locke LifeWorks REHAB (Medical Facilities of America) MB Contractors Pepsi Bottling Group rev.net

such as bathing, feeding, ambulating and caring for bed-bound individuals.” The company was founded in 1998 at its current Lynchburg headquarters. A year later it opened its Roanoke office, enabling services to be provided throughout the Shenandoah and Roanoke valleys. Generation Solutions was chosen through a competitive selection process. Judging criteria included: staying power, growth in the number of employees, increase in sales, financial performance, innovativeness of products and services offered, response to adversity and contributions to the community. The company was nominated for the state award by the Roanoke Regional Small Business Development Center. Generations Solution was honored as the Roanoke Regional Chamber’s 2014 Small Business of the Year – Business-to-Consumer Services Category in October 2014.

EVENT SPONSORSHIP

The Roanoke Times Rockydale Quarries Spilman Thomas & Battle PLLC Trane Valley Bank Woods Rogers Attorneys at Law

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

Thursday Overtime April 2 Soaring Ridge Craft Brewers Spilman Thomas & Battle PLLC

Turning Service into Sales April 16 Roanoke Blacksburg Regional Airport Rutherfoord

NEW MEMBERS The following members joined the Roanoke Regional Chamber between March 10 and April 9, 2015: Apptech Solutions LLC Bank of America Merrill Lynch-Brian Redd Bricks 4 Kidz Brookdale Cave Spring Brookdale Roanoke

JUNE 2015

Cortex Leadership Consulting Domino’s Pizza GoMonti Jennifer Grace Dean, Esq. Liberty Mutual InsuranceRoanoke

Little Caesars Pizza Maridor Micah Fraim, CPA Old Dominion Auto Salvage Physicians To Women Inc.

Staff Management/SMX Transitional Options for Women Wal-Mart #2312

Roanoke Regional Chamber of Commerce | SPONSORED CONTENT

Member news & recognitions Two ADDY awards were presented to B2C Enterprises recently at the Western Virginia Division of the American Advertising Federation ceremony. The judges awarded B2C Enterprises a gold award for its collateral material and poster campaign on behalf of The Star City Roller Girls. B2C also received a silver award for its digital video “Prostate Exam” produced with Delta Dental of Virginia and VPS.

Waters

Berkshire Hathaway HomeServices Smith Mountain Lake Real Estate has announced that Kimberly Willard Waters has joined its sales team. Waters is a native of Roanoke and has worked in new business development with the Willard Companies.

Berkshire Hathaway HomeServices announced its 2014 Sales Professional award winners at its annual convention in held in March. Nine Berkshire Hathaway HomeServices Smith Mountain Lake Real Estate sales associates were recognized. They were: Vicki Millehan and Debbie Shelton, Chairman’s Circle Diamond award; Jane Sullivan Horne, Eric and Tom “Team” Fansler, Chairman’s Circle Gold award; Dana Montgomery, President’s Circle award; Pete Roberts, Leading Edge award; and Amelia Gerner and Genie Rust, Honor Society award. Chateau Morrisette Winery has announced its first ever retail wine distribution to central Kentucky via its newest distributor, Bottles & Barrels, a division of Kentucky Eagle, Inc. Chateau Morrisette wines, many featuring its distinctive black dog label, are available in many Kentucky counties and cities, including Lexington and Louisville. The City of Roanoke Planning, Building, and Development Department and the Roanoke Valley Preservation Foundation have partnered to create a workbook of easily implemented lesson plans related to the teachings of The Little House, written and illustrated by Virginia Lee Burton, for the second-grade classroom. The workbook addresses the need to help today’s students understand how the historical and natural aspects of their community have evolved. The workbook was funded in part by a grant from the Virginia Department of Historic Resources. A copy of the book and associated workbook were donated to each second-grade classroom within the City of Roanoke for the 2014-2015 academic year. The City of Roanoke has been named a 2014 “Pacesetter” for its “Star City Reads” program by the Campaign for Grade-Level Reading, a nationwide organization designed to ensure that many more children from low-income families succeed in school and graduate prepared for college, a career and active citizenship. Roanoke was one of 30 communities across the national recognized for measurable progress on student reading readiness outcomes. In a collaborative effort between the City of Roanoke and Carilion Clinic, Elmwood Park will soon be home to Roanoke’s first themed playground. The Carilion Clinic Children’s Hospital Playground officially opened in May and features a Peter Pan narrative. The playground is a component of the Elmwood Park Master Plan identified for sponsorship by a

corporate partner. The playground will allow Carilion Clinic to engage with children outside of a hospital. Hall Associates in Roanoke has announced the sale of Birchwood Apartments in Cloverdale. The 61 rental units, 13 buildings complex was sold to EF Birchwood. Hospital Corporation of America (HCA), a leading health-care provider with 166 hospitals and 113 ambulatory surgery centers in 20 states and the United Kingdom, has been named a World’s Most Ethical Company by the Ethisphere Institute for the six consecutive year. HCA is the parent company of LewisGale Regional Health System, a leading health-care provider in Southwest Virginia. The World’s Most Ethical Companies designation recognizes those organizations that have had a material impact on the way business is conducted by fostering a culture of ethics and transparency at every level of the company.

Culligan

The Eleanor D. Wilson Museum at Hollins University has named Jenine Culligan, senior curator at the Huntington Museum of Art in West Virginia, as its new director. Culligan has been with the Huntington Museum of Art since 1999.

Jefferson Center has announced its recent addition to the center’s team to meet the needs of its upcoming performance schedule. Matthew Wirt was named marketing manager in March. Wirt will focus on communicating with the public, delivering Jefferson Center’s mission of education and enrichment via outreach and personal engagement. Jefferson College of Health Sciences has been ranked as one of the “30 Great Small Colleges for RN-BSN Degree” by the website Best Master of Science in Nursing Degrees. The Jefferson College was ranked at 26. The designation applies to Jefferson’s Post-Licensure Bachelor of Science in Nursing degree program. The Roanoke County School Board has named Dr. Paul Lineburg as the new director of administration for Roanoke County Public Schools, effective July 1. Lineburg first joined the county school system in 1996 as a teacher at Cave Spring High School. He served in the central office as the coordinator of social studies and was an assistant principal at Cave Spring High and at William Byrd High School.

Ayers

Ries

Eure

Wallace

The law firm Johnson, Ayers & Matthews has announced that four of its attorneys have been named Virginia “Super Lawyers” for 2015. Each year, no more than five percent of the lawyers in the state are selected for this honor. Attorneys named to the 2015 Virginia Super Lawyers list are: Ronald M. Ayers, eminent domain; John D.

Eure, insurance coverage; Kenneth J. Ries, civil litigation defense; and William P. Wallace, civil litigation defense.

Rosen

Johnson

O’Keefee

Attorneys Josh Johnson, Brooke Rosen and Jay O’Keeffe recently formed the law firm of Johnson, Rosen & O’Keefee, LLC in Roanoke. The firm will focus on the litigation and strategic planning needs of businesses and families. Poe & Cronk Real Estate Group recently announced the sale of the longtime Roanoke Auto Springs property on Williamson Road, across from the Berglund Center. Member One Federal Credit Union purchased the property for expansion. Buses in the Roanoke Valley carried more than passengers this spring, thanks to a joint project between RIDE Solutions, Greater Roanoke Transit Company, and the Roanoke Arts Commission. The “Art by Bus” project allowed buses to carry art, literature and music. The Roanoke Arts Commission chose four works of art from its collection to be displayed on Valley Metro buses. Melanie Almeder, a professor at Roanoke College, was selected to ride buses during March and April to produce literary works about her experiences, the people she meets, and the neighborhoods she traveled through. Also RIDE Solutions worked with local musicians to sponsor a series of short concerts on the Star Line Trolley through the “Art by Bus” period.

Green

Hassell

Light

Roanoke County Administrator Thomas Gates has named Anne Marie Green acting director of human resources. Anita Hassell, who has served as acting director of human resources, has returned to her previous position as assistant director of human resources. Rob Light, the former assistant director of general services, serves as the acting director of general services. Gates has also begun the recruitment process to hire a permanent human resources director. A team of Virginia Tech students from the Pamplin College of Business won the Virginia state championship in the annual ACG Cup investment banking case-study competition held in Richmond. The MBA students, who share a $2,500 prize, are Adrian Daku, Cameron Hale, Ziyad Shalaby, and Jeffrey Tolley. The Virginia Tech Corporate Research Center has begun a network infrastructure upgrade that will deliver a 40-gigabit network backbone and 1-gigabit Internet connectivity to the 160 companies and

ROANOKE BUSINESS

SPONSORED CONTENT | Roanoke Regional Chamber of Commerce research centers operating in the park. The corporate research center has always provided its tenants high-speed Internet access. This upgrade delivers connectivity at 10 times faster speeds than most organizations are using today. The Virginia Beginning Farmer and Rancher Coalition received a federal grant to address food security issues, generate economic enterprises and build communities among beginning farmers. The grant is funded by the U.S. Department of Agriculture’s Beginning Farmer and Rancher Development Program and offers place-based and culturally appropriate education, training and networking opportunities for farmers and ranchers with less than 10 years’ experience. Donald G. Baird, professor of chemical engineering in the College of Engineering at Virginia Tech, has been named the Alexander F. Giacco Professor of Chemical Engineering by the Virginia Tech board of visitors. The Baird professorship is funded through the Alexander F. Giacco Endowed Presidential Chair Fund, which was initiated by a donation from Hercules Inc. to honor the many contributions to business and education by Alexander F. Giacco, former president of Hercules and a 1942 alumnus of Virginia Tech.

Cousins

Thomas E. Cousins, a professor of civil and environmental engineering in the College of Engineering at Virginia Tech, has been conferred the title of professor emeritus by the Virginia Tech board of visitors.

Fred D’Aguiar, professor of English in the College of Liberal Arts and Human Sciences at Virginia Tech, has been named the Clifford A. Cutchins III Professor of English by the Virginia Tech board of visitors. The professorD’Aguiar ship in English was established in 1989 through a gift from the Sovran Financial Corporation to recognize excellence in teaching and scholarship. A highly accomplished creative writer, D’Aguiar came to Virginia Tech as a professor in 2003 and held the Gloria D. Smith Professorship in Africana Studies from 2006 to 2012.

French

J. Lawrence French, associate professor of management in the Pamplin College of Business at Virginia Tech, has been conferred the title of “associate professor emeritus” by the Virginia Tech board of visitors. French has been a member of the Virginia Tech community since 1987.

Jarrad Henderson, a video producer and director at Virginia Tech, was recently named the Multimedia Photographer of the Year by the Michigan Press Photographers Association. Henderson was a photographer for Henderson the Detroit Free Press for three years before he came to work at Virginia Tech’s Office of University Relations in July 2014.

JUNE 2015

Kathleen A. Jamison, extension specialist for 4-H Youth Development with Virginia Cooperative Extension at Virginia Tech, has been conferred the title of “professor emeriti, Extension specialist, 4-H youth development” Jamison by the Virginia Tech board of visitors. She has been a member of the Virginia Tech community since 2000.

Kok

Loke T. Kok, professor of entomology in the College of Agriculture and Life Sciences at Virginia Tech, has been conferred the title of professor emeritus by the Virginia Tech board of visitors. He has been a member of the Virginia Tech community since 1972.

Ranga Pitchumani, professor of mechanical engineering in the College of Engineering at Virginia Tech, has been named the George R. Goodson Jr. Professor of Mechanical Engineering by the Virginia Tech board of visiPitchumani tors. The professorship was established in 1988 to recognize teaching and research excellence. Shashank Priya has joined the Institute for Critical Technology and Applied Science at Virginia Tech as its first faculty director for materials and sustainable energy. Priya, the Robert E. Hord Jr. Professor of Mechanical Priya Engineering and a Turner Fellow in the College of Engineering, will retain a partial appointment in the Department of Mechanical Engineering. J. Scot Ransbottom has been named chief of staff and deputy chief information officer for Virginia Tech’s Information Technology division. Ransbottom will serve as a key adviser to Scott Midkiff, vice president of inforRansbottom mation technology and chief information officer, and play an important role in facilitating the evolution of the division’s collaborative culture and service mentality. The Virginia Tech board of visitors recently selected new undergraduate and graduate student representatives who will serve as liaiSykes Seyam sons between the student body and the board starting July 1. The two student representatives are appointed to one-year terms. The undergraduate student representative is Morgan Sykes, a junior majoring in history in the College of Liberal Arts and Human Sciences, with a minor in psychology. The graduate student representative is Mohammed Seyam of Egypt, a doctoral student in computer science in the College of Engineering. The Virginia Western Educational Foundation has recognized Deborah A. Yancey, Class of 1997 and 1998, as its 2015 Distinguished Alumni. Established in 2006 by the Virginia Western Alumni Association,

the Distinguished Alumni Award recognizes Virginia Western Community College alumni and former students who have attained extraordinary distinction in their professional field or life. Yancey became an adjunct faculty instructor in 2003. She continued to teach until 2014 and currently serves the college as dean of Business, Technology and Trades.

Staples

Anne Staples, assistant professor of biomedical engineering and mechanics in the College of Engineering at Virginia Tech, will spend four months in Israel in spring 2016 developing computer models for water flow through coral reefs. The research will be supported by a 2015-16 Fulbright

Scholarship. John E. Taylor, associate professor of civil and environmental engineering at Virginia Tech, has received the American Society of Civil Engineers Construction Institute’s 2015 Daniel W. Halpin Award for Scholarship in Taylor Construction. Taylor’s research focuses on civil engineering network dynamics of industrial and societal importance. Paul Torgersen, Virginia Tech’s president from 1994 to 2000 and a member of its faculty since 1967, died on March 29 at age 83. Torgersen’s tenure as president saw a dramatic increase in the effectiveness of fundTorgersen raising for the university, including $337 million raised in the Campaign for Virginia Tech: Making a World of Difference. In addition, the university’s endowment nearly doubled during his term. Elizabeth Tranter has been appointed associate vice president for research planning in the Office of the Vice President for Research at Virginia Tech. In her new role, she will be responsible for research strategic planTranter ning, analysis, benchmarking and assessment of research initiatives, and leadership of special initiatives of the office in support of the research strategic plan and institutional long-range plans. Virginia Western Community College’s Educational Foundation has presented the 2015 Community College Impact Award to Carolyn Warner Ottaway Warner and Geoffrey M. Ottaway, in recognition of the establishment of the Michael E. Warner Memorial Endowed Scholarship and the Michael E. Warner Memorial Annual Golf Tournament. One of the highest honors the college can bestow, the Community College Impact Award serves to recognize significant philanthropic and community support by individuals, corporations or organizations that will provide perpetuating benefits for Virginia Western, its students and the region at large.

HBG

Why is Harrisonburg the second fastest growing metropolitan area in Virginia?

JMU “One of the Best Small Places for Business and Careers” – FORBES “One of the Smartest Cities in America” – LUMINOSITY

According to the Weldon Cooper Center, Harrisonburg is second only to Northern Virginia in population growth. And Chmura Economics ranks Harrisonburg first for employment growth among all Virginia metropolitan areas. While lots of factors contribute to such success, the partnership between the community and James Madison University helps lead the way.

“5th Best College Town in America” – TRAVEL + LEISURE

Visit www.jmu.edu/economicimpact to learn more. PHOTOGR APHS BY M I KE M I R I ELLO (’09 M)