Surry Business

Surry County’s unemployment rate rose 0.2 percent in August, the North Carolina Employment Security Commission reported today, and the number of unemployed people increased by 52 from July to 1,956, the highest number since January.

The size of Surry County’s resident labor force dropped slightly, by 50 people, to 34,920. That total is down 0.5 percent from August 2006.

The number of people employed in Surry County in August was about 100 fewer than in July. At 32,964, the total was down a little less than 1 percent from the year prior.

The reports of higher unemployment and fewer jobs was expected. Four textile or apparel manufacturers announced earlier this year that they would discontinue part or all of their operations in Mount Airy, Surry County’s largest city. At the same time, however, employment has grown in services, construction and retail sales.

Statewide unemployment in North Carolina decreased 0.2 percent from July to August and, in the Employment Security Commission’s seasonally adjusted estimate, there were 215,700 people out of work compared to 220,000 in August 2006. Over the same 12-month period, North Carolina’s labor force grew to more than 4.5 million and employment increased by nearly 33,000 jobs, a 0.7 percent improvement. Ninety-eight counties reported lower unemployment rates in August than in July, one (Surry) had greater unemployment and one county’s jobless rate stayed the same.

The acquisition of a 340,000-square-foot warehouse in Pilot Mountain helped vault Salem Logistics Inc. onto an annual list of the “Fast 50” — the fastest-growing privately held businesses in northwest North Carolina’s 12-county Triad Region.

The former trucking company, now transformed into a full-service transportation company with an emphasis on distribution management, bought the warehouse in May after leasing it for a year.

“The investment is apparently paying off, with the company debuting at No. 37 in this year’s Fast 50,” writes The Business Journal of the Greater Triad in a special 36-page supplement published Sept. 28. “Revenues grew by more than 55 percent versus 2005.”

Company President and CEO David Eshelman said Salem Logistics more than doubled its trucking fleet, from 12 to 25 vehicles, to help handle the business created by its distribution center, which is used primarily for retail and Internet fulfillment.

“It was kind of a synergistic situation in that … the growth in our warehousing led to the growth in our trucking,” Eshelman told The Business Journal.

Salem Logistics also added 40 employees, bringing its workforce to more than 120.

The company’s outlook for 2007 is very good, Eshelman said. In May it signed a contract to provide shipping services to Nationwide Marketing Group, a purchasing and marketing group for independent appliance and electronics stores. Also, as SurryBusiness.com previously reported, Salem Logistics won a contract this month to manage transportation and logistics for furniture manufacturer Klaussner Home Furnishings.

SouthData Inc. in Mount Airy moved up to No. 31 from No. 45 among the “Fast 50,” an annual list of the fastest-growing, privately held companies in northwest North Carolina’s 12-county Triad region.

The Business Journal of the Greater Triad published the list Friday, Sept. 28, in a special 36-page section. The list also ranks Winston-Salem-based Salem Logistics Inc. as No. 37 among the fastest-growing companies. Its Salem Logistics Distribution division operates out of Pilot Mountain in Surry County (see story above).

SouthData’s revenue grew more than 33 percent from 2005 to 2006, according to The Business Journal, and the company expects to grow by at least 20 percent in 2007.

SouthData Inc.’s primary business is document processing, creation and fulfillment. It employs about 72 people in a high-tech facility at 201 Technology Lane. President John Springthorpe III told The Business Journal that most of SouthData’s recent growth has been in document services such as billing and specialized printing for counties and health-care organizations.

SouthData is well-established as the nation’s largest provider of billing products for condominium and home owners’ associations. In the past year it entered a new market: printing auction bills and other materials for auctioneers. Springthorpe said SouthData continues to refine its digital services, such as e-mailing bills to its clients’ customers, but paper-intensive services remain a mainstay. For example, a Medicare Part D notification required mailed communications, printed identification cards and booklets that described the health-care plan’s provisions and billing procedures.

SouthData was founded in Mount Airy in 1985.

Mount Airy-based John S. Clark Company is the general contractor for two of the 25 largest construction projects under way or completed during the past year in the 12-county Triad region, according to The Business Journal of the Greater Triad.

The projects are the $15.51-million Wal-Mart store at 3420 Peters Creek Parkway in Winston-Salem (No. 4 on the list published Sept. 28) and the $3.59-million Harris-Teeter at The Shoppes at Battleground in Guilford County (No. 23). The latter is being developed by Granite Development Co., John S. Clark Company’s associated development company.

Craig Hunter of Mount Airy, a principal in Granite Development, told the Business Journal that one of the biggest misconceptions about developers is “that (they) do not care about the communities they build in and are just out to destroy natural resources and make money.

“I know of several developers, especially here in the Triad, that love the communities they build in and constantly work to contribute and be positive influences in those communities with allocation of time, money and other resources.”

The Charlotte Business Journal this year ranked John S. Clark Company among the top five general contractors in the North Carolina Metro Area. The Charlotte Business Journal judges each firm based on contracting revenue earned in 2006. It reported John S. Clark Company’s contracting revenue in 2006 as $251,154,328.

John S. Clark Company LLC has core competencies in industrial, retail, health sciences, office and commercial construction. The company has four full-service offices in North Carolina and performs work in 24 states and Canada.

“Grape growers and winemakers in the Yadkin Valley are cutting losses and counting blessings after a season of extreme weather produced smaller crops, but flavorful grapes,” reports Lisa Boone-Wood in the Sept. 26 edition of the Winston-Salem Journal.

“Warm weather in March followed by a freeze on Easter weekend had many growers wondering whether the grape crop would be successful, said Terry Garwood, an agricultural extension agent for the N.C. Cooperative Extension Service in Surry County,” Boone-Wood writes, “but the drought brought hot, dry weather that concentrated sugars in the grapes.”

Harvesting began earlier than originally expected because heat and drought made grapes ripen sooner.

At Shelton Vineyards in Dobson, harvest is about three weeks ahead of schedule, said George Denka, the company’s president.

Ben Webb, the general manager and winemaker at Old North State Winery in Mount Airy, said that the season has been good, although some of the white grapes, such as chardonnay, were lost early on, “but we have plenty of whites that came in wonderful.”

“The consumer needs to remember 2007 as a great year in the vineyard because they will be able to get some really good values on wines,” Kim Myers, the president of the N.C. Winegrowers Association, told Boone-Wood.

Yadkin Valley Financial Corp. of Elkin (Nasdaq: YAVY), owner of Yadkin Valley Bank and Trust Co., and Cardinal State Bank (Nasdaq: CSNC) of Durham are one step closer to completing their proposed merger. On Sept. 19, the North Carolina Commissioner of Banks approved their application for merger. The Federal Deposit Insurance Corp.’s approval for the merger is later this month or in early October.

“These approvals clear the way for final preparations for our merger,” said John W. Mallard, Jr., president and chief executive officer of Cardinal State Bank. “The combined staff of the two banks is an exceptional team. We are working together to integrate the policies and systems of both banks to provide our communities with an exceptional local community bank.”

Plans call for completing the merger in December.

On June 14, the two companies announced the agreement whereby Yadkin Valley Financial Corp. and its wholly owned subsidiary, Yadkin Valley Bank and Trust Co., will acquire Cardinal State Bank. Cardinal shareholders will receive $17.62 per Cardinal share (a transaction with a total value of approximately $41.8 million based on stock prices at the time) or the equivalent value in shares of Yadkin Valley Financial Corp. stock.

Bill Long, president and chief executive officer of Yadkin Valley Financial, said, “Our merger with Cardinal State Bank brings a number of advantages to Yadkin Valley Financial. First, Cardinal has reached a point of critical mass where the momentum for quality asset growth and profitability are present. Second, (CEO and President) John Mallard has built a solid banking team at Cardinal that aligns culturally with our organization. Third, although we believe Yadkin’s existing markets are excellent, the demographics of Durham and Orange counties are even better, in terms of income, home values, education and employment. Cardinal also has secured a site for a future office in western Wake County, an affluent, high-growth area with some of the nation’s best demographic characteristics. Fourth, Cardinal’s operations complement Yadkin’s broader North Carolina franchise, roughly bounded by Interstates 77 and 40.

“When the merger is completed, Yadkin Valley Financial will be a $1.4 billion institution with 28 branches covering almost 200 miles of central North Carolina and a dozen of the state’s best counties.”

Lowe’s Companies Inc. says lower-than-expected sales could cause its fiscal 2007 profit to be at the low end or below its August estimate of $1.97 to $2.01 per share. The company’s fiscal year ends in February.

The home-improvement company (NYSE:LOW) says drought conditions in the mid-Atlantic, southeastern and western regions of the country have adversely affected sales of outdoor products.

Lowe’s, founded in 1946 in North Carolina, has more than 1,425 home-improvement stores including two in Surry County: Lowe’s of Mount Airy on the Andy Griffith Parkway (U.S. 52 at U.S. 601) and Lowe’s of Elkin, 492 CC Camp Road.

“Mayberry Days,” the Surry Arts Council-sponsored celebration of “The Andy Griffith Show” and all things Mayberry, returns this week for its 18th year in Mount Airy, actor Andy Griffith’s boyhood home.

Although “Mayberry Days” officially begins with Thursday’s annual golf tournament, dinner and entertainment at Cross Creek Country Club, the festival really gets under way on Friday, Sept. 28.

Upwards of 10,000 visitors are expected for the weekend’s activities, many of them free for all.

Friday’s main events (not free, and in some cases already sold out) include “A Tribute to Patsy Cline with Erica McGee” at 2 and 7 p.m. in Cross Creek Country Club, The Dillards in concert at 3 and 7:30 p.m. in the Andy Griffith Playhouse (the evening show is sold out), The VW Boys’ “Tribute to Mayberry” concert at 7:30 p.m. and Michael Hoover’s “Tribute to Elvis” at 9 p.m. in the Downtown Cinema Theatre on Main Street and Jeff & Sheri Easter in concert at 7:30 p.m. in the Blackmon Amphitheatre on Rockford Street.

On Saturday, Professor Brower’s Lecture and the TAGSRWC (“The Andy Griffith Show” Rerun Watchers Club) annual meeting will begin at 2 p.m. in the Downtown Cinema Theatre. Colonel Tim’s Talent Time shows will be at 2:30 and 7:30 p.m. in the Andy Griffith Playhouse. “The Voice of the Blue Ridge” concert featuring Rodney and Beverly Dillard and The Carolina Travelers begins at 7 p.m. in the Downtown Cinema Theatre. Jeff & Sheri Easter, The Lewis Family and The Easter Brothers will perform at 7:30 p.m. in the Blackmon Amphitheatre.

Mayberry Days is a festival for the whole family with activities and events for the fans to those who long for the days when life was simple and the sheriff didn’t carry a gun. You can enjoy a bottle of pop while playing checkers, relax to music from many local bands playing the same songs that Andy Griffith grew up with in Mount Airy. There is much to do during the festival, but there is always time to slow down and enjoy what Mayberry means to you.

The Mayberry Days Information Station will be set up on the grounds of the Andy Griffith Playhouse all day Friday and Saturday. The festival program is included in “Mayberry Confidential,” a tabloid “newspaper” widely available around town. You can buy special-events and concert tickets online. For hotel and motel information and a guide to other area events and sights worth seeing, go to www.VisitMayberry.com. News stories, photos and features will be presented in print and online by The Mount Airy News and the Surry Messenger.

This year’s special “Mayberry Days” guests will be Betty Lynn, who played Thelma Lou; Doug and Rodney Dillard, The Darling Boys; Elizabeth MacRae, who played LouAnn Poovie; James Best, who was Jim Lindsey; Jackie Joseph, “Sweet Romena;” George Spence, Frank the Fiance; Maggie Peterson, Charlene Darling; LeRoy McNees of Mayberry on Record; and David Morris, son of Howard “Ernest T” Morris.

Two Mount Airy-based companies, Renfro Corp. and Perry Manufacturing Co., rank 28th and 75th, respectively, on this year’s North Carolina 100, Business North Carolina magazine’s annual list of the state’s largest private companies.

Compiled by the Grant Thornton accounting firm, the list ranks companies according to their 2006 revenue. Actual revenue is not disclosed, but companies are grouped by ranges. Participation is voluntary.

Renfro Hosiery Mills Co. was founded in 1921 with 25 employees. Today, Renfro employs more than 4,000 people worldwide. The company operates manufacturing facilities in the Carolinas, Alabama, India, Turkey, Pakistan and Mexico. It also operates sales and distribution centers in the Carolinas, Europe, Canada and Mexico.

In 1990, Renfro earned the prestigious Class A MRP II manufacturing designation. MRP II is a sophisticated manufacturing planning system and Renfro is the only hosiery manufacturer that has achieved this distinction. The 1996 acquisition of Fruit of the Loom Hosiery Division positioned Renfro to extend its domestic leadership to the rest of the world.

“Renfro is leading the development of consumer-based marketing across all retail channels for analysis with consumer-based category management systems,” the company states. “This enhances the company’s ability to identify, market, and manufacture products dedicated to the latest in emerging trends, fashions, and characteristics wanted by consumers.”

Perry Manufacturing Co. was founded by William K. Woltz Sr. in 1950 in Mount Airy, N.C. The company, with operations in three states and three foreign countries, is a major private-label resource in the apparel market. Perry Manufacturing products result from a combined network of company production facilities and quality contractors throughout Central America, the Caribbean, Asia, Africa and the Middle East.

What makes Perry stand out among private-label manufacturers is its product design expertise. Perry designers shop the world and then translate new ideas into value merchandise statements.

“We continually have many of the top-selling items and groups at the retailers we sell,” the company states. “Our highly qualified team of product-development experts engineers a garment from start to finish. Perry is very adept at meeting the most demanding criteria in both specifications and construction. Perry continues to meet and exceed our customers’ requirements for timely delivery of quality products.”

No. 1 on the 2007 North Carolina 100 list, as it has been for 11 years in a row, is Raleigh-based General Parts International Inc., a distributor of auto parts. Thirty-two other wholesale distributors also appear on the list. Altogether, wholesale distributors account for more of the cumulative revenue than any other sector and rank second in employment.

Five years ago, manufacturing was tops on the list, with 27 percent of the companies, 32 percent of the revenue and 37 percent of employment. The change reflects the transformation of the state’s economy away from traditional manufacturing. “My guess is that we’re going to see the trend toward wholesale distribution and service,” says Alan Day, the Grant Thornton partner in charge of the ranking.

Up to 1,200 bicyclists and hundreds of their supporters will arrive in Elkin on Sunday, Sept. 30, after completing the first leg of the annual Cycle North Carolina ride from the mountains to the coast.

The riders and support teams will assemble Saturday night and Sunday morning in West Jefferson and then ride a little more than 55 miles to Elkin while dropping nearly a half-mile in elevation.

They’ll camp Sunday at the Elkin Municipal Park and Recreation Center or stay in local motels and B&B’s. There will be live entertainment in the park. Elkin is the home of the Yadkin Valley Wine Festival, now entering its seventh year, and the town will host a mini wine festival just for Cycle North Carolina participants.

On Monday, the riders will push on to Greensboro for an overnight stop at Bur-Mil Park. The week-long CNC ride will end Oct. 6 at Currituck/Knotts Island.

Now in its ninth year, CNC is a tour of North Carolina on two wheels. It is fully supported with trucks to haul riders’ gear and rest stops every 15 to 18 miles. Basic registration costs $195. Transportation to the start and from the finish and meals are optional.

Cyclists also may sign up to ride for one day ($45) or three days ($115). Visit the web site for registration forms and more information or go here to register online.