Roanoke Region: Transportation Equipment Keeps Rolling

While many drivers along the Interstate 81 Corridor focus on the beauty of the surrounding mountains, I-81 is the backbone that connects a thriving manufacturing industry. Unlike many interstate systems, I-81 circumvents major metro areas to connect smaller and mid-size cities. But throughout those cities and scenic stretches of Blue Ridge beauty are manufacturing operations that support one another and buyers around the world. A journey along I-81 reveals just how impressive a package Western Virginia offers manufacturers in almost any industry looking for a supportive region in which to expand.

At the center of the I-81 Corridor, the Roanoke region has become a hub for transportation equipment suppliers. “There’s a long legacy of transportation-related manufacturing in the region [because of I-81’s] access to northern and southern automotive manufacturers and the availability of skilled labor,” explained Beth Doughty, Roanoke Regional Partnership executive director. The success of these companies adds credibility to the region’s reputation as a location for companies looking to invest in new facilities.

Roanoke

With 325,000 residents, the Roanoke region is the largest metropolitan area in Western Virginia. Figures recently released by the Council for Community and Economic Research show the Roanoke region’s cost of living is lower than 75% of participating metros with an index of 88.7, well below the national average of 100. Yet quality of life is high. As a recreation destination, Roanoke’s burgeoning outdoor industry thrives from assets such as the Appalachian Trail, James River, Blue Ridge Parkway (the most visited national park in the U.S.) and Smith Mountain Lake, Virginia’s largest.

The region — which includes Alleghany, Botetourt, Craig, Franklin, and Roanoke counties and the cities of Covington, Roanoke, and Salem — is home to a diverse manufacturing base. But transportation manufacturing has gained a strong toehold, employing more than 5,100 people in 25 firms within the region. “While manufacturing as an overall sector has declined [nationally] in terms of employment, largely due to increased automation, transportation-related manufacturing has actually grown in the Roanoke region,” Doughty said. “The sector has consistently contributed to new investment and new jobs here.”

Carvins Cove Natural Reserve, Roanoke County

There’s certainly reason to encourage this growth. According to the National Association of Manufacturers, for every one worker in manufacturing, another four people are hired elsewhere. It was quite a coup when in 2016 Eldor Group, an Italy-based automotive industry supplier, committed $75 million to building its first U.S. manufacturing facility, 250,000 square feet on 53 acres, in Botetourt County.

Eldor executives spent nine months evaluating more than 160 sites across six states. Stefano Concezzi, president and CEO of Eldor Automotive Powertrain USA LLC, said that I-81 was fundamental in the company’s decision to locate in the Roanoke region, as was access to The Port of Virginia. Eldor’s search for the home of its U.S. production facility was initially centered on finding a prepared site that would speed construction. The site in Botetourt Center at Greenfield was pregraded and could be expanded. Eldor company leadership also appreciated the expansive mountain scenery and were at ease in the community because it reminded them of the beauty of their Italian headquarters in Orsenigo (Como, Italy). Another important component of Eldor’s search was a sustainable talent pool that could supply hundreds of skilled employees. With multiple automotive and manufacturing companies already clustered in the region, Virginia Western Community College had a mechatronics and manufacturing curriculum in place to serve Eldor’s current and future workforce needs.

In September 2018, 120 went to work on the first production lines, with plans already in place to grow to 350 employees within five years.

Eldor USA, Botetourt County

While the Eldor investment brings a new player into the region, the area is also home to several legacy operations that have benefited from the region’s easy accessibility and access to skilled labor. For example, Graham-White Manufacturing, now a subsidiary of Wabtec Corp., was founded in 1914 to produce components for locomotives and rail transit vehicles. Today it has diversified to producing parts for trucks, buses, and military vehicles.

Wabtec, Salem

The Yokohama Tire Corp. manufacturing facility in Salem has undergone a number of changes since it was built by Mohawk Rubber Co. in the 1960s. For starters, the facility has expanded to 1.2 million square feet with over 800 employees producing high-performance car and light truck tires. In 2015, the Salem facility celebrated a few major milestones: its 25th year in operation, the production of its 80 millionth tire, and becoming a zero-landfill operation.

Altec Industries also has been a driving force in the transportation manufacturing industry’s growth. A leading provider of products and services to the electric utility, telecommunications, tree care, lights and signs, and contractor markets, Altec has been in the region since 2011 manufacturing its telescopic boom and truck cranes in Botetourt County. Since then, the company has expanded five times. In 2017, its latest investment of $30.2 million made room for 180 new jobs.

“We’re able to grow in Virginia and in Botetourt County because this is a pro-business environment with the logistics and infrastructure to help Altec succeed,” commented John Herrig, plant manager for Altec Industries, in announcing the expansion.

From suppliers for passenger cars and heavy trucks, to manufacturers of components for rail cars and more, products made in the Roanoke region keep America rolling.