VVC brings hope to Union Parish
New company to create 1,400 jobs in region
, News Editor
06-24-2009
Last week, Gov. Bobby Jindal announced V Vehicle Company (VVC) would begin assembling cars in Monroe next year.
The $248 million project, backed by such financial heavyweights as billionaire T. Boone Pickens and Louisiana entrepreneur James Davison, is expected to create 1,400 jobs at the facility with an average salary of nearly $40,000 plus benefits.
Farmerville Mayor Stein Baughman, Jr. said he thinks this is a wonderful opportunity for the town as well as the parish.
“This is a great endeavor for the state of Louisiana and especially for residents north of Alexandria who will reap the most benefit,” Baughman said.
Baughman said he is certain Union Parish will feel the financial gains of having the plant in the area.
“Traditionally, Ouachita Parish and Union Parish have always helped one another,” Baughman said. “Several of our residents worked at the Guide plant when it was in Monroe and we know we still are able to provide a skilled set of workers which will benefit this plant.”
Jean Jones, Union Parish Chamber of Commerce president, said this type of opportunity is wonderful not only for Louisiana but for the nation.
“This is monumental for a brand new automotive company to not only come out on the market but to decide to establish a major plant in our area,” Jean said. “This type of venture is rare and historic in our nation, and here we are at ground zero.”
Jones said the opportunity for growth is immense for north Louisiana.
“We are hopeful that once the plant is up and running, other businesses will see the incentives with placing their company in this area,” Jones said. “Once they see what we have to offer, our hope is that satellite businesses will emerge to further stimulate the economy.”
Jones said satellite businesses are where the Chamber of Commerce will focus its economic development team.
“We currently have an economic development team in place to reach out to these businesses and just show them what Union Parish has to offer,” Jones said.
Jones said she hopes the V-Vehicle plant will bring with it business to Union Parish.
“We all had quite a scare a few months ago with the Pilgrim’s Pride plant, and then we were blessed,” Jones said. “We can’t let Union Parish crumble under one business.”
Jones said she had been told a saying which she hopes to remedy.
“I have been told that Union Parish stands on three legs: poultry, timber and tourism,” Jones said. “We can’t let that be it. We want as many legs as we can to make this community as stable and vibrant as possible.”
Ricky Albritton, an Edward Jones financial advisor and former Chamber president, said one of the good things about this plant is the amount of jobs it could potentially make for Union Parish.
“We have a skilled work force available right in Union Parish that will benefit the plant and create a greater economic impact for these residents,’’ Albritton said. “The workers may not have a job or may not be getting paid very much, but this creates a possibility for these workers.”
Robert Eisenstadt, an associate professor of economics at the University of Lousiana at Monroe, said there will be a substantial economic impact on this region.
“This is a pretty big opportunity for our state,” Eisenstadt said. “It’s not often a manufacting facility expected to employ 1,400 gets started. It’s no small feat these days let alone for our state.”
Eisenstadt said household income will reach $110 million for northeast Louisiana.
“It will not only generate that $110 million but also $56 million in payroll,” Eisenstadt said. “Compare that to the economic impact of Pilgrim’s Pride which was $80 million in household income.”
Eisenstadt said current projections put around 1,400 jobs in the plant by the end of 2010 as well as an added number of subsidiary positions.
“We are looking at an added workforce of 1,400 people added as well as the level of impact from that creating between 2,600 and 4,000 jobs in other companies,” Eisenstadt said. “You are looking at 3,200 jobs coming to this area from the launch of one plant.”
Eisenstadt said it is important to note that while the plant may be based in Ouachita Parish, the effect of the plant will branch far past the parish lines.
“It is time we stop thinking in terms of one parish versus another,” Eisenstadt said. “There is no way this number of jobs will be filled merely by the people of Ouachita Parish.
Eisenstadt said VVC will need to enlist all of the workforce resources this area has to offer.
“The company will end up needing the labor of northeast Louisiana parishes as well as south Arkansas,” Eisenstadt said. “Consequentially, results such as employment opportunity and payroll will be dispersed for many miles around.”
Eisenstadt also said this may be just what north Louisiana needs to begin to turn around the slump currently in place in the region.
“Because of the labor needs for this facility, it may possibly be what north Louisiana needs to counteract its decreasing popultation,” Eisenstadt said. “It’s been a small but noticable decrease since 2000, but this may be what turns us around.”
Baughman also said the opportunity for this plant and for the region are unlimited, and this area will have great benefit from the arrival of VVC.
“There is a great possibility that they will employ not only our residents but also that there employees may feel the desire to have a home on the lake and may look to us for a place to call home,” Baughman said. “The number of ways this can effect us are limitless, and we are very fortunate the company has chosen north Louisiana to make their mark.”
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