We hear a lot about manufacturing closing in the US and moving elsewhere. But there are stories about manufacturing facilities opening in America. Case in point is the opening last month in Danville, Virginia of a furniture plant.
Furniture, you say? Isn’t that an industry we lost a long time ago? Yes, but. IKEA's manufacturing arm, Swedwood decided to build a new manufacturing facility in Danville.
The reasons for Danville were many, but the intangible asset of a skilled workforce was key. As Virginia Business Magazine explains:
Manufacturing in Danville will significantly cut down on transportation costs, which, with diesel prices high and the value of the dollar low, are "the most expensive part of home furnishings," said Joseph Roth, Swedwood's director of public affairs.
. . .
"The available work force here (that is) knowledgeable about manufacturing" is part of the reason the company was interested in the region, Roth said. Swedwood offers "highly skilled manufacturing jobs. We're very thrilled to be bringing them to Danville and Pittsylvania residents."
From a loss of manufacturing jobs, Danville is managing to build upon its intangible asset of history of manufacturing knowledge. And the Swedwood plant isn't the only new development in Danville. Another IKEA supplier, Com.40, is planning a plant in Danville. The Danville Community College offers manufacturing technician certifications and associate degrees.
Advanced technology companies are also locating in Danville. Luna nanoWorks, a division of Luna Innovations, has a nanotechnology facility in Danville.
While Danville does not seem to be completely back to the scale of economic activity when textiles and tobacco where king, it has staged a remarkable come back by leveraging its tangible and intangible assets.
(For more on Danville's economic turn around the Virginia Business Magazine story -- Diversified economy brings jobs, and the Washington Post story -- Ikea Helps a Town Put It Together).
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