THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, March 17, 1996 TAG: 9603160106
SECTION: CHESAPEAKE CLIPPER PAGE: 19 EDITION: FINAL
SERIES: Chesapeake Business Review
SOURCE: BY JENNIFER C. O'DONNELL, STAFF WRITER
LENGTH: Long : 106 lines
Chesapeake's industrial growth in 1995 surprised even Donald Z. Goldberg, the city's director of economic development.
``We knew we had a good year, but we weren't exactly expecting the numbers to be as good as they were,'' said Goldberg.
The numbers Goldberg referred to are recent figures on business growth in Chesapeake.
Last year, 30 firms either announced new operations in the city or expanded their current business facilities. Business growth during 1995 was up 69 percent over 1994, which also was considered a prosperous year for the city.
The new businesses invested nearly $90 million in land, real estate and equipment and added 1,155 jobs to the city's job market. By comparison, in 1994 new industrial companies brought 455 jobs to the city and contributed about $17 million in capital investments.
The 16 firms that located to Chesapeake last year consisted of a mix of distribution, office, service and manufacturing businesses. Among them are big name companies like Canon Computer Systems, a technical support center for Canon products; Cummings Atlantic, a manufacturer of diesel engines; and retail firms such as Lowe's and Regal Cinemas. Most of the new firms set up shop in the Cavalier Business Park in Western Branch or one of the Greenbrier industrial parks.
Richard Wetherill, senior manager of Canon Computer Systems' Customer Care Division, said his organization chose Chesapeake for their site for four main reasons: its high quality employee pool, the city's high quality of life, reasonable office space prices and space in which the company can grow.
``We know Chesapeake will be able to handle our future growth,'' said Wetherill.
Canon Computer Systems provides technical support for the use, set-up and troubleshooting of their products, which include computers, laser printers, bubble-jet printers and scanners.
The organization has a permanent work force of 180 employees, but its overall work force, which includes temporary employees, exceeds 340.
Regal Cinemas, a movie and entertainment center, also opened their doors in 1995. The company occupies about 90,000 square feet at the Crossways at Greenbrier. It is estimated that Regal Cinemas contributed about $10,000 in capital investments and created approximately 100 jobs.
Fourteen companies expanded their Chesapeake operations last year. Among them are Edcor, a defense contractor located in Cavalier Industrial Park; Varga Brakes, an automotive brakes distributor; and Plasser American, a South Norfolk manufacturer of railroad truck machinery.
In addition to attracting new and growing businesses, Chesapeake has managed to maintain small and family-owned businesses, said Goldberg.
``The economy has been stimulated by the number of people moving here and that's helping small businesses succeed,'' he said.
Examples of small business success include Management Systems Applications and NKL Industries. Both businesses were included on a new list compiled by Virginia Business magazine of the fastest-growing small companies in Virginia.
Management Systems Applications had a revenue growth rate of 110 percent between 1992 and 1994, which ranked the Chesapeake business as the 13th fastest-growing small company in the state. The company's 1994 revenues were $34,347. MSA is a computer service company.
NKL Industries placed nineteenth on the list with a growth rate of 83 percent during the two year period. The business makes safes and security doors.
Chesapeake will likely see another boom in business growth this year, Goldberg said.
Some retailers are currently looking into the area. This spring, Greenbrier will become home to Barnes & Noble Bookstore and Harris Teeter, an upscale grocery store.
Last month, Circuit City Stores Inc., the Richmond-based consumer electronics and appliance retailer, opened its largest Virginia Store in the Greenbrier community.
``We're becoming a retail hub in the region and the tax revenue from retail growth is a significant part of the city's tax base,'' said Goldberg. ``I remember years ago we had to run all over the place to find the things you need. Now you get them from the store down the street.''
But Goldberg believes the coming year will bring much more than retail businesses to the area.
``We've already started off with a bang when Yupo Corp. announced they would move their operation here,'' said Goldberg. ``It's not often that you see a $100 million investment move into your community.''
Yupo Corp., a subsidiary to the world's largest maker of synthetic paper, announced last January that they will build a manufacturing plant in Chesapeake.
The 160,000-square-foot plant, will be located in the Greenbrier Commerce Park. The company has already called for as many as four expansions, for an investment of up to $400 million over several years and the creation of 300 to 400 more jobs, company and city officials said.
Goldberg hopes to see more companies like Yupo move to the city.
``We're constantly looking for manufacturing jobs,'' said Goldberg. ``We want to continue to diverse the economy in Chesapeake so that we're not held hostage by any one sector.''
Goldberg added that good schools, a safe community and decent roads are some of the attractions businesses look for when eyeing a community. Businesses are also attracted by Chesapeake's high median household income, which is estimated to be about $43,500 per year, said Goldberg.
``We have what they're looking for,'' said Goldberg. ``1996 will be a bull year.'' ILLUSTRATION: Staff photo by MORT FRYMAN
The Fun Scape children's amusement business and Regal theaters are
new additions to Crossways shopping center in Greenbriar.
by CNB