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Kernersville Business and Industry

Progress & Prosperity

Kernersville is right in the middle of two of the largest economic developments in the U.S. — the region has become a HOT (Heart of the Triad) spot.

In October 2005, Dell opened its largest computer manufacturing facility on the western corner of Kernersville. That plant currently employs 1,100 with increased employment over the next five years.

In June 2009, the new FedEx air cargo hub is slated to open just 12 minutes east of Kernersville. The headline story in the November 24-30, 2006 issue of The Business Journal stated, “Jo Ferreira, managing director of the hub-area business development for FedEx said . . . the areas of the Triad most likely to feel the brunt of the FedEx-related development will be within 20 to 30 minutes of the air-cargo hub itself.”

What makes the Piedmont Triad — of which Kernersville is the heart — so attractive to companies such as Dell and FedEx? According to The Piedmont Triad Partnership:
- North Carolina has been ranked #1 for business climate by Site Selection magazine for six consecutive years.
- More than 190 international firms, representing 29 countries have operations in the region.
- State tax credits include a 25% credit for research and development.
- Lowest cost of living among major cities in the U.S.
- Construction costs are 30% less than the national average.

Kernersville is a model business community as evidenced by the visit of President George W. Bush on December 5, 2005. In his remarks, he said that “North Carolina is the best place to do business in the United States.” Later he specifically addressed Kernersville.

“You’ve got an advantage right here in Kernersville. You’ve got an interesting joint venture with Hitachi (John Deere-Hitachi Construction Machinery Corporation). This plant is actually “in-sourcing”. Over the past four years, this factory has taken on production that used to be done in Japan and Mexico. You’ve tripled your workforce. That’s what opening markets means. It means good, steady work. It means good opportunity,” said President Bush.

Kernersville is at the center of the desirable Triad region that includes the Greensboro, Winston-Salem, and High Point business markets. It is not only at the center, it is extraordinarily well connected.

Kernersville has four interchanges on I-40/B-40 and Norfolk Southern rail access. It is less than 15 minutes from the Piedmont Triad International Airport, and is about four hours from the two North Carolina global ports. Kernersville can take your business where you want it to go.

Kernersville Chamber of Commerce surveyed major employers about their decision to locate in Kernersville. Dell (1100 employees), Deere-Hitachi Construction Machinery Corp. (832 employees), Roadway (750 employees), Wal-Mart (520 employees), and V.P Building (300 employees) and all depend on national and/or international distribution. The dominant response by corporate officials to the Chamber’s question was location, easy accessibility to several transportation options, and the large reservoir of skilled workers. Other companies cited the high caliber of people in the community.

New Opportunities
Kernersville has enjoyed steady economic growth due to its diversity in manufacturing (23%), retail trade (11%), and educational, health, and social services (11%). With the advent of the Federal Express airport hub opening in 2009, Kernersville is in a particularly prime location to further diversify.

Bob Leak, president of Winston-Salem Business Inc. told The Business Journal, “If you look at Indianapolis and Fort Worth (where FedEx has hubs) its within 15 or 20 minutes that you see the larger ‘big-box’ distribution centers. Outside of 30 minutes is where you see the manufacturing component, which is often smaller, around 50,000 to 100,000 square feet.”

Current surveys have indicated that there is a need for business and office parks to support businesses that will be generated by the hub. These business parks generally include logistic companies that produce/distribute goods and services which are time sensitive, biotech, computer hardware, light metal fabricators, plastic molding and shipping container companies.

The Town has eight business parks, with additional sites under consideration. These business parks include a variety of new buildings, flex space, and a group of developers eager to work with new companies and accommodate their needs.

Some advantages of a business park setting are: a stronger address, reduced start up time by utilizing existing infrastructure and buildings, investment protection, and corporate campus options.

The business parks supplement a vast amount of prime real estate that is yet to be developed. A large amount of land that has been designated as industrial and office between I-40 and B-40 is undeveloped. Also, according to Jeff Hatling, community development director, “Within the Triad, the two I-40 interchanges that are least developed and have the greatest potential for office, industrial, and commercial diversity are the interchanges at Union Cross and NC 66. Both of these are in Kernersville.”

One additional interchange on Business I-40 is slated for construction in Kernersville by the NC Department of Transportation (DOT). Upon completion, it will offer additional opportunities for economic development.

Workforce Reservoir
Kernersville is conveniently located in the middle of the 12-county area of the Piedmont Triad, with direct accessibility by I-40/B-40. This contributes to a copious commuting spirit, which results in an equal number of people commuting into Kernersville as those going out. The primary counties that contribute to the employee base in Kernersville are Forsyth, Guilford, Davie, and Surry.

There is a nationwide increase in the Hispanic population. Forsyth County is a leader in Hispanic growth, and likewise, Kernersville has a healthy and growing Hispanic population (7 percent). These newcomers add significantly to the available workforce as they are eager to learn a trade and to establish themselves in the community.

Forsyth Technical Community College (FTCC) offers general and customized workforce training in Kernersville. Training can either be onsite, at the Grady P. Swisher Center campus located in Kernersville, or at other FTCC locations. Training ranges from industrial and manufacturing applications, to information processing, to English as a Second Language (ESL).

When President George W. Bush visited Kernersville in December 2005, he said, “I’ve been to Forsyth Technical Community College. I’ve seen workers who were in the textile industry receiving the help they needed to go back to school to become healthcare workers. And with a little bit of government help, they are able to gain new skills and find permanent work at better pay. And that’s really the challenge ahead of us, isn’t it — to make sure that we match our workers desire to work with the skills necessary to fill the jobs of the 21st Century.”

Forsyth Tech provided ample evidence of its ability to partner with employers to meet the needs of the community. When Deere-Hitachi Construction Machinery Corp. explored the option of locating in Kernersville, workforce training was one of the deciding factors. At that time, in 1988, there was a shortage of skilled welders. To solve the problem, a workforce training partnership was established with FTCC. This resulted in a high quality workforce that was trained and ready to work the day the facility opened. Deere-Hitachi continued to partner with FTCC for the next 13 years, until the corporation instituted an in-house training program.

More recently, FTCC
partnered with Corilam Fabricating Company. This manufacturer of high-pressure laminate tops has a diversified workforce. While many employees spoke English as their primary language, some spoke English as a second language.

“Now,” said Brad Robins, vice-president of operations, “we can work together as a team. Everyone performs well. The ESL classes from FTCC helped to make that happen.”

In 2002, Dudley Products, Inc., a manufacturer of cosmetic and hair products with a worldwide market partnered with FTCC for computer training for employees.

Most recently, Forsyth Tech worked with Dell in accessing and training new employees. In May of 2005 it was reported that 1,800 perspective employees for Dell took a 3-hour assessment test at Forsyth Tech.

In an interview with the Winston-Salem Journal, Richard Hunter, vice president for Dell’s Americas manufacturing and distributions operations said, “We expect to build one of our OptiPlex or Dimension desktop computers every two to three seconds or around 15,000 units a day. That kind of production volume just doesn’t happen without a quality workforce.”

Forsyth Tech is also looking ahead to future needs of the Triad. A five-story, 85,000 square foot technology building recently opened and the Kernersville campus is currently being expanded by 11,000 square feet.

The Kernersville campus is home to the new Global Commerce Training Center. This program has grown 10-fold in its three years of operation. The curriculum offers five separate degreed programs that will prepare the workforce for second and third tier companies that traditionally locate near a Federal Express hub.

Kernersville 2020 Strategic Plan
The community of Kernersville is mindful of the factors contributing to its long-term success — location, transportation, and a united community vision. These enduring traditions are the backbone of the Kernersville 2020 Strategic Plan. Created as a community collaboration of individuals and town officials — the plan is a written representation of the voice of the people.

Free for the asking, a copy of the 2020 Plan demonstrates the forward-thinking nature of the community of Kernersville. Land use has been planned so that industrial, commercial, and residential areas complement rather than compete with each other. Infrastructure improvements are outlined and itemized. Recreation, education, and quality of life opportunities have all been addressed.

“Every family, every business, and every community needs a plan,” said Arnold King, chairman of the 2020 Strategic Planning Committee, “and this is our tool for measuring incoming opportunities to see if they are helping us to meet our goals as a community.”

The Kernersville 2020 Strategic Plan was readopted in 2004. This is an assurance to all residential and commercial citizens that Kernersville will prepare, promote, and protect its interests and stay on target. The Kernersville Chamber of Commerce invites you to come to the center — experience life in heartland of the Triad — and be a part of our future.

Kernersville is built on a remarkably strong manufacturing base. With 23% of the workforce being manufacturing, Kernersville leads the national average of 14%, the state of North Carolina average of 18% (U.S. Bureau at Census).

Manufactured products include; hydraulic cylinders, paper tubes, cosmetics, air bags, electrical panels, plastic injection molds, prefabricated metal buildings, printed circuit boards, hinges, furniture, industrial piping, machined goods, treated lumber, fishing accessories, lab cleaning products, printing, and hydraulic excavating equipment.

This highly diversified base contributes to a recession-resistant and resilient economy in Kernersville. The manufacturing businesses or “primary industries” bring money into the economy, which is then spent numerous times in our community.

Other businesses important to the local economy are the 28 trucking companies, including Roadway Express, Inc.’s fourth largest distribution center, banking, textile, hotels, restaurants, and retailers.

In 1998, Kernersville had 455,863-sq. ft. of new industrial space compared with only 30,320-sq. ft. new commercial. In the next three years, that trend reversed, with 2001 having 333,065-sq. ft. new commercial to 30,004 new industrial. That trend will be reversing again as the Town of Kernersville’s Planning Department’s Land Use Plan has designated 18% industrial, and 5% commercial.

About 9,000 people are employed in Kernersville. Population growth tends to mirror job growth. The population in the town of Kernersville has increased by an average of 53% per decade since 1970. In 2004, the town population was 20,491, while the service area of Kernersville was just over 65,000.

The Kernersville Chamber of Commerce assists businesses in promoting the civic and commercial progress of Kernersville by staying abreast of changes and opportunities in the community. This voluntary membership organization of professional men and women offers referrals, SCORE business counseling services, timely business seminars, networking, Leadership Kernersville training, and promotional programs.

Economic development support also comes from the NC Department of Commerce local affiliate, Winston-Salem Business Incorporated and the Piedmont Triad Partnership. It provides a wealth of information on Kernersville and Forsyth County, including information on the economic profile, labor force, transportation, taxes, utilities, and even offers site visits.