BY NANCY cotten HIRST
Contributing Editor, Delta Business Journal
Everyone in the Delta now knows that a fine, strong company will bring a number of new jobs to Cleveland and nearby counties, with hiring and training to begin in the third quarter of 1999 and production scheduled for the fourth quarter.
What a lot of people may not know is that the location of Royal Vendors, Inc. is the type of success story that economic development professionals cite as case studies for the right way to attract new business. The teamwork between the community and the various professionals involved, coupled with the diplomatic attention accorded this company, were remarkable.
The story began three and a half years ago, when Coin Acceptors, parent company of Royal Vendors, contacted developers about a possible plant site. As is customary, the Department of Economic Development and the Delta Council worked together to find sites that fit the parameters set forth to them by the company.
"We sent them information on every community and every building that fit their parameters," says Mark Manning, Industrial Development Director for the Delta Council. Company officials looked at only a couple from the list, but were particularly impressed with Cleveland. The project, however, fell through when a series of events saw the company expand in West Virginia instead of building a new facility.
Manning, disappointed but not discouraged, stayed in touch with the company. Every few months he would give them a call, and he sent pertinent information about the Delta business environment when something of interest occurred. He says there is a fine line to be drawn between staying in touch and becoming a nuisance, but the line was obviously walked carefully.
As it developed, Royal Vendors experienced phenomenal growth in the intervening three years, outgrowing not only the expanded West Virginia plant but the local labor pool as well. When it became apparent that they were going to have to establish a second location, the original impressions made by Mississippi and the continuing hand-holding paid off. They had originally looked at other states in addition to Mississippi, but when it came time for action, they came straight to the Delta.
Cleveland, in the meantime, had not been idle. They had researched the company to make sure it was what they wanted. "Cleveland's strength has always been being careful about the kind of business we attract," says Kevin Cox, Chairman of the Industrial Development Foundation. "Royal Vendors is the kind of company we like. They are stable. They are planning to stay in the community, and they are interested in being good corporate citizens. We are interested in long-term relationships and so are they."
So when Royal Vendors returned, the professional developers, the city fathers, the county officials and the volunteers were ready to pull out all the stops. Fortunately, the city had built a speculative building in the Cleveland Industrial Park. "The spec building didnŐt turn as quickly as everyone would have liked," Cox comments, "but it was definitely an asset. We're reaping the rewards because other folks took action ten years ago. The gamble paid off."
The developers and the community then assembled all the other resources and information necessary and worked as a team to fulfill the expressed need of the company. "The quality of the people in the community was a big factor in our decision," says Larry LaBrier, President of Royal Vendors. "The leaders showed great willingness to work with us on incentives, and the quality of the available workforce was appealing as well.
"Part of the package depended on the colleges, universities and technical schools helping with our training needs - actual training in specifics in select areas and skills assessment in others - and that was accomplished without any trouble," LaBrier explains.
"The Delta Council, everyone in Cleveland, and the Department of Economic and Community Development were all very helpful. They even put together a team and came up to our facility in West Virginia. They wanted to spend time and effort to get to know our business - and therefore our needs. We've never had that happen before."
In addition to Mark Manning and Kevin Cox, people on the team included Jim Catt of DECD; Rick Byars of Entergy; Gilbert Woods of the Chamber of Commerce; Wayne Cole, City Administrator; and Gary Gainspoletti, City Auditor. Most of them took the trip to West Virginia and they were reinforced in their desire to locate Royal Vendors in Mississippi.
"The relationship of the management to the workforce is remarkable," says Cox. "We went out on the factory floor, and everyone knew Larry. He knew them and frequently stopped to talk with them. They're like a family, and that makes for really happy employees. That's definitely what we want for our people in Cleveland."
Cox is anxious that people understand that the Industrial Development Foundation is not just about attracting new industry. "The IDF in the community's eyes is judged by new recruitment," he says. "That's because new is sexier. But our biggest job is to make sure that the environment is right and that we can help existing industry grow and expand. We don't always get much credit for that, but we have the same level of commitment to existing business that we do to recruitment. That will be the case when it is time for Royal Vendors to expand. It is all about the betterment of Cleveland, and we have a lot of companies that have been helping in that regard for a long time."
The level of commitment from all the participants has smoothed the way for an outstanding company to add between 140 to 170 new jobs in the next two years, with a total of 400 possible in five years. For a company that is only eleven years old, Royal Vendors is exemplary. The leading manufacturer of cold beverage vending equipment, they grew so quickly in West Virginia that they were responsible for 10% of job growth for the entire state. They are truly international, with a presence in over 30 countries - anywhere that Coca Cola has a presence. The company itself and everyone who worked on the location credit the extraordinary teamwork of local, state and regional entities in creating a successful development effort. The royal treatment paid off.
"Teamwork made this project a reality," says Richard Coleman, Bolivar County Supervisor. "We are very optimistic about Royal Vendors coming to Bolivar County and we hope that they will be expanding in the near future." DBJ
CUTLINE FOR PHOTO:
team spirit: Mark Manning, Delta Council Economic Development Director; Representative Charlie Capps; Chip Reynolds, staff member of Senator Trent Lott; Larry LaBrier, president of Royal Vendors; and Tom Robinson, Delta Council president.