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Driving the Next 20 Years:
Creating the
New Automotive Industry in the South

June 7-8, 2010
Lexington, KY

Hosted by Kentucky Governor Steve Beshear

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Road 2 Recovery Survey

Take the SGPB survey on economic recovery in the South!


Host a Community Forum

This year, Southern Growth would like your help in discussing how communities can respond to current economic challenges — ranging from job losses to home foreclosures to government cutbacks — while at the same time positioning themselves for success in the future. Host a forum now to help your community towards recovery!


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Ask the Experts

“Ask the Experts,” features a rotating panel of experts from around the region offering their views on important economic development questions.

Building the Automotive Industry

The South continues to attract investment from the automotive industry. How can the South leverage these investments to continue to create good jobs for the region?


Mac HolladayLarry Hayes
Secretary, Kentucky Cabinet for Economic Development
Frankfort, Kentucky

There is a definite shift in the automotive industry from the North to the South. As a result, a manufacturing “know-how” culture is being created. An example of this is the emergence of the new Kentucky Argonne Battery Manufacturing Research and Development Center, where researchers will work to improve the manufacturing process of plug-in and hybrid automotive batteries. The work of the Argonne Center will help to attract other technical “know-how’s” of design, R&D, and more. The entire automotive industry in the South will benefit and continue to prosper because not only will the automobiles of the future be manufactured here, they will be designed here as well.

Matt KisberMatt Kisber
Commissioner, Tennessee Department of Economic and Community Development
Nashville, Tennessee

As automakers have invested in the South, it’s vitally important we create strong partnerships between automotive manufacturers and the region’s centers of innovation, like colleges, universities and research centers. Companies like Volkswagen and Nissan are highly committed to more sustainable forms of transportation and higher education can play an important role in developing technologies that allow for the construction of a new generation of higher quality, lower cost, environmentally friendly vehicles. We’ve also got to focus on worker training. Globally competitive forms of manufacturing require workers who are problem solvers, which is especially true in the auto industry.

Bob GeolasBob Geolas
Executive Director, Clemson University International Center for Automotive Research
Clemson, South Carolina

The automotive investments in the South have largely been in manufacturing. The industry still looks to Detroit and the Northeast for market innovations, research and development. To truly leverage the larger economic growth opportunities for the South, we need to begin attracting significant research and development centers for the industry. We need to invest in a collaborative culture between Southern states and seek ways to make the South the new center of innovation in the new automotive industry.

Communities and the Economic Recovery

Many smaller communities feel that there is little that they themselves can do to respond to current economic challenges. What is one thing that you think communities can do to improve their chances for economic success now and in the future?


Mac HolladayMac Holladay
CEO, Market Street Services
Atlanta, Georgia

There can be no doubt that the “Great Recession” has affected most Southern cities large and small in a very negative way. In many locations our unemployment rates are at all time highs. There are three key components that we use in evaluating a community’s competitive position – people, prosperity, and place. While many traditional economic development activities have little effect in this downturn, this is a great time to improve your “place.” Concentration on entry ways, parks, downtowns, sidewalks, and all the things that newcomers see can have a positive effect on what people think about our communities. It can also improve our local attitude and be evidence that work is underway. Many small communities are using volunteers and young people to create a better place. Remember, you only have one chance to make a first impression.

Will LambeWill Lambe
Director, Community & Economic Development Program
School of Government, University of North Carolina at Chapel Hill
Author of  Small Towns, Big Ideas: Case Studies in Small Town Economic Development

Given the economic and political circumstances at the national level, I can’t help but believe that now is the time for community leaders in small towns to take matters into their own hands and just get something—anything—done. Come together with partners, new and old, and demonstrate to yourselves and others that positive change is possible. Pick an empty storefront on Main Street and work together to clean up the property and attract a tenant. Pool resources to offer a free leadership seminar for laid-off workers in town. Feed them lunch. When times are tough, it’s all about building forward momentum and laying the foundation for future success. Make a shared commitment, as well as shared sacrifice-across organizations-to get something done together.

Phil ScharrePhil Scharre
Manager, Community Development
Tennessee Valley Authority

During this period of economic uncertainty, be sure to “stay in the game” by re-visiting your playbook and strengthening your assets and tools. Communities should prepare to be fully competitive when the economy rebounds, whether the focus is on recruitment, retention, expansion, retail, tourism, or entrepreneurship. Are all the tools (data, maps, photos, profiles, fact sheets, presentations, website, equipment, facilities, etc) up to date? Are all the players (elected officials, business leaders, professional staff) trained and capable? Are all the partners (state, regional, federal) engaged?  Are the goals, targets, and plans up to date? Communities that have improved their competitiveness in all aspects will be better positioned for success when the economy improves and opportunities emerge.

Don-Terry VealDon-Terry Veal
Director, Center for Governmental Services, Auburn University
President, Southern Consortium of University Public Service Organizations

For optimum positive impact, small cities and communities should focus first on developing diverse economies that can help them better withstand negative economic impacts during challenging times. Attention should also be given to:  attracting quality people with skills and resources through having quality education; increasing the tax base and improving the income levels and jobs for citizens; improving infrastructure; developing community assets that have historical significance; remaining open to outside business opportunities; and staying away from the “quick fixes.” Following state and national market trends can help small communities identify and then take strategic advantage of new opportunities for improving their economies.