Ex-Mercedes CEO: Time to diversify

Oct 11, 2009 (The Decatur Daily - McClatchy-Tribune Information Services via COMTEX) -- TVA | Quote | Chart | News | PowerRating -- Leaders should look at industries other than automobile assemblers for the Tennessee Valley Authority mega site in Limestone County, according to Bill Taylor.

Taylor retired as chief executive officer of U.S. Mercedes-Benz operations in June. Now he is president of the non-profit Economic Development Partnership of Alabama.

After giving a speech to the Rotary Club of Decatur last week, Taylor spoke to The Daily.

"I'm not saying no to all auto, but there are gaps that need to be filled."

He said Volkswagen's location in Chattanooga opens up opportunities for North Alabama.

"We need Tier 2 and Tier 3 suppliers." Taylor said. "The decline right now in auto, it's going to be around for several years in my estimation."

While suppliers pay far less than auto assemblers, they provide important training. Even lower paying jobs, Taylor said, are important with unemployment rates above 9 percent in both Limestone and Morgan counties.

"In most cases they are lower technology, and maybe those are good entry-level jobs."

Much to offer

The Decatur area has much to offer for advanced manufacturing facilities, Taylor said. The robotics training center stands out, but United Launch Alliance and recent success in a local high school robotics team also will interest employers seeking a capable work force.

"A company like Mercedes, or any OEM, when we hire people they are already working," Taylor said. "When we made our expansion, and I was out in these communities, I knew I wasn't filling my jobs. I was filling the jobs that I would pull from. You know there is going to be a gap, and that's good for people that may have been making $2 or $3 less per hour."

A high-paying employer, he explained, does not struggle obtaining employees. The problem is that it sucks employees from other employers needing skilled workers. Work-force development efforts are less important for the high-paying employer than they are for employers from whom the high-paying employer draws.

"Training people how to learn, how to problem solve, has to be part of the solution. It is so, so important that we combine the technology with the ability to communicate. It goes back to high school," Taylor said.

"That (Decatur-Austin Robotics Coalition) is extremely important. When you can take a company and show them what you can do, what you're doing, it speaks much louder than the words of the sales pitch. They see commitment and an understanding of what business needs. Take the company in and show what these students can do."

Taylor said collaboration gives Morgan County a major advantage over other communities. Mallard-Fox Creek Industrial Park and the planned Interstate 65 business park near Hartselle provide a competitive advantage that few communities can manage, he said.

He also stressed the importance of aiding existing industry, already a major focus of the Morgan County Economic Development Association.

"No matter what you're doing for existing industry, you need to do more," he said.

Like most of Alabama, Taylor said, Decatur is in desperate need of business diversification. Heavy industry has its place, but the community needs light industry, advanced technology and service industries to weather economic cycles.

"Believe me, I love auto, but you need to look at other businesses," he explained. "It's a different world we're living in after the recession, and I don't think that will change for a number of years. We need to adapt."

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