kohls

[sregorat3]

Originally Posted by Diamond Dave

And yet, you seem determined to prove that Lynchburg is not only larger than Roanoke, and more affluent, based on--get this--the fact that you drive around Virginia a lot, and even though I have presented data that defeat your argument.

(I drive around Virginia a lot, too. It's hilly in the west, flat in the middle, and wet in the extreme east.)

So, either you have a crush on me (I'm spoken for), or you have Roanoke envy, or both, because you won't drop it.

Are you sure you're not from Salem?

I'm guessing Don Quixote was a hero of yours- although I'm not impressed with your reading comprehension!
I have never suggested that Lynchburg is bigger or more affluent than Roanoke. I only suggested that your "data" is dated and is not exact. The difference in the levels of affluence between Roanoke, Lynchburg, Harrisonburg, Christiansburg, etc. is not enough to sway most national retailers for or against one of those same localities. Suggesting that the level of affluence in Roanoke is such that a Saks might locate in Roanoke is about as unrealistic as thinking an IKEA or a Cheesecake Factory might land in Roanoke. There is more "affluence" in the West End of Richmond than in the entire Roanoke MSA; that is the type of affluence that draws large retailers. Now I don't doubt that Roanoke will land some small retailers that target the more affluent among us, as Sean was pointing out, but the cities are more similar than they are different.I would liken the comparison to that of a Gala apple and a Braeburn apple as opposed to an apple and an orange.

[sregorat3]

Originally Posted by Diamond Dave

So, either you have a crush on me...

Are you sure you're not from Salem?

Man crush?? No. Salem?? No.

But I have checked out your website and I am a big fan of the AT, as well. I enjoy the wilderness (and have hiked or ran just about every wooded trail in the Roanoke-Lynchburg area), and am a past member of the NBATC. I have a wife and 2 kids. Maybe I'm your doppleganger!

[Mr_Jonas]

Originally Posted by sregorat3

The GE facility on Candler's Mtn. Rd. opened in the 50's. Spinoffs from GE and E-GE have resulted in over 1000 current jobs in Lynchburg, so although Ericsson's Swedish management ran the company into the ground, the Lynchburg area continues to benefit from the investments that were made in the community over the 40+ years that the facility was in operation. Currently, Sony is involved with Ericsson in the cell phone arena and the US side of the business is languishing in Raleigh- seemingly dying a slow death.

I know this is taking this thread in a very different direction, but I find this interesting.

In your regards was Ericsson's pull out of Lynchburg due to the local management?

I thought it was due to Ericsson overall horrible financial and investment disasters that were made apparent when the internet bubble busted and the telecommunications crash in the early 2000s, and had to fire tens of thousands of staff worldwide as well as selling off and closing down many facilities and ventures. I do not think they have many assembly lines in western countries and a return to their core business of infrastructure such as telephone exchanges, networks etc, etc.

[sregorat3]

Originally Posted by Mr_Jonas

I know this is taking this thread in a very different direction, but I find this interesting.

In your regards was Ericsson's pull out of Lynchburg due to the local management?

Actually, the local management was very competent; production and quality control were on the up-tick as opposed to being in decline. About the time Ericsson was expanding their development plans in Raleigh, the market was still developing. Ericsson added production in Lynchburg (the expansion helped along by tax incentives) and also built up a very large R&D operation in Raleigh. As the cell industry grew, Ericsson quickly fell behind the curve in manufacturing costs, resulting in entire production lines being moved to Brazil and Indonesia. Some cost saving was realized by outsourcing to Samnina SCI, but that quickly faded. The biggest issue that I've heard is that the style of management brought in by Ericsson was not nearly nimble enough to compete in an Asian dominated market awash with cheap labor. Lean manufacturing is something that was unheard of in the Swedish model, and by the time Sony got involved, the damage was such that the company hasn't and most likely won't recover from. Two weeks ago, my brother in law was offered an advancement on his engineering management job, but he threw in the towel and resigned after 14 years at Ericsson. He said that it was pretty easy to see the writing on the wall.

[Mr_Jonas]

Originally Posted by sregorat3

Actually, the local management was very competent; production and quality control were on the up-tick as opposed to being in decline. About the time Ericsson was expanding their development plans in Raleigh, the market was still developing. Ericsson added production in Lynchburg (the expansion helped along by tax incentives) and also built up a very large R&D operation in Raleigh. As the cell industry grew, Ericsson quickly fell behind the curve in manufacturing costs, resulting in entire production lines being moved to Brazil and Indonesia. Some cost saving was realized by outsourcing to Samnina SCI, but that quickly faded. The biggest issue that I've heard is that the style of management brought in by Ericsson was not nearly nimble enough to compete in an Asian dominated market awash with cheap labor. Lean manufacturing is something that was unheard of in the Swedish model, and by the time Sony got involved, the damage was such that the company hasn't and most likely won't recover from. Two weeks ago, my brother in law was offered an advancement on his engineering management job, but he threw in the towel and resigned after 14 years at Ericsson. He said that it was pretty easy to see the writing on the wall.

Very Interesting, thanks.
Swedish business papers always claims Ericsson has too many engineers and not enough business management and design people. If this is true or not I can not say. I do know that Nokia has done much, much better in using consumer friendly phones working with designers and setting upp easy to use interfaces.

(I used to work for a very small tech company right behind their HQ in Kista outside Stockholm)

I have never had an Ericsson phone and usually sticks to Nokia or Motorola.

[Diamond Dave]

Originally Posted by sregorat3

I'm guessing Don Quixote was a hero of yours- although I'm not impressed with your reading comprehension!
I have never suggested that Lynchburg is bigger or more affluent than Roanoke. I only suggested that your "data" is dated and is not exact. The difference in the levels of affluence between Roanoke, Lynchburg, Harrisonburg, Christiansburg, etc. is not enough to sway most national retailers for or against one of those same localities. Suggesting that the level of affluence in Roanoke is such that a Saks might locate in Roanoke is about as unrealistic as thinking an IKEA or a Cheesecake Factory might land in Roanoke. There is more "affluence" in the West End of Richmond than in the entire Roanoke MSA; that is the type of affluence that draws large retailers. Now I don't doubt that Roanoke will land some small retailers that target the more affluent among us, as Sean was pointing out, but the cities are more similar than they are different.I would liken the comparison to that of a Gala apple and a Braeburn apple as opposed to an apple and an orange.

Wait--are you talking THE West End, or Short Pump?

Hell, this is the best discussion this forum has seen in months.

[badger74]

Ericcson's failure has turned into a boon for Liberty U and other smaller firms in town who have been able to get the old facilities for pennies on the dollar and either expend faster than otherwise (LU) or start and expand small companies. LU has been able to start a high demand engineering program using some of the old Ericcson facilities as well as buld the new Law School, Student Center, church, and now a theater in the huge old plant. Politics aside, LU has been a great economic engine for Lynchburg. It alone is probably responsible for a significant portion of the population and job growth in the L area since 1990. Now if they would pay the faculty a little better, L might be able to support more high-end stores.

[seanpecor]

Lynchburg unemployment hit 7% in January 2009

Roanoke is not faring much better at 6.5%. We're still tracking the statewide unemployment average almost exactly.

It could be worse. The Blacksburg/Christiansburg/Radford metro's unemployment jumped from 4.2% to 7.7% in 12 months!

Sean

[sregorat3]

Originally Posted by seanpecor

Lynchburg unemployment hit 7% in January 2009

Roanoke is not faring much better at 6.5%. We're still tracking the statewide unemployment average almost exactly.

It could be worse. The Blacksburg/Christiansburg/Radford metro's unemployment jumped from 4.2% to 7.7% in 12 months!

Sean

Just looked at VEC's press release. Danville MSA @ 14% and Williamsburg City took the cake for cities at 19.5%. Judging by VEC's estimates of those not working, Lynchburg's rate should drop somewhat in Feb. due to college/university's start of Spring semester. Apparently cities with large numbers employed in higher ed. see some rise in unemployment during Winter break. It'll be interesting to see if there is a change next month.

[badger74]

I'd guess many adjunct faculty are on semester long contracts so they will be back working by now.