There was an air of excitement Monday afternoon as Governor Bob McDonnell (R-VA) appeared in Staunton to announce that a local company, Cadence, Inc., would be investing $15.9 million to expand its manufacturing facility and create 65 new jobs for the area. Employees of the company, as well as Staunton City Council members, state elected officials, and local businessmen, were among the guests in the crowd.
The Governor’s news was accompanied with a check for $150,000, a grant from the Governor’s Opportunity Fund, that was secured by the city of Staunton and the Virginia Economic Development Partnership. Presenting an oversized facsimile of the check to the company’s CEO Peter Harris, the Governor joked, “The check’s in the mail,” to laughter from the crowd.
Harris responded by presenting McDonnell with a specially crafted knife containing the Cadence logo and engraved with the inscription, “Investing in the growth of industry in Virginia.” The case included a detailed description of the materials and processes used to craft the knife, and was signed by the ten employees who made it. Noting that he had received permission to offer such a sharp object to the Governor and, recognizing its precise sharp edges that the company is famous for, Harris deadpanned as guests laughed, “Don’t open your mail with it or it may get shredded.”
In a released statement, the Governor noted, “Cadence, formerly known as Specialty Blades, has thrived in Staunton for 25 years. We are pleased that Cadence decided to continue their long relationship with Virginia and the City of Staunton in choosing to expand their facility, rather than move to a new location. The path of success continues with this significant investment, which will allow for a larger facility and increased manufacturing production to accommodate the company’s rapid growth. The addition of 65 new jobs is also tremendous news for the region.”
Headquartered in Staunton’s Green Hills Technolgoy Park, Cadence, in business since 1985, currently has 145 employees and manufactures specialty blades for industry and medical/surgical purposes. Costa Rica had been in competition with Virginia for the project.
A platform of McDonnell’s 2009 gubernatorial campaign was bringing private sector jobs to Virginia, something he has successfully achieved since taking office. Working with chief jobs officer Lt. Gov. Bill Bolling, the focus has been to help existing businesses grow and expand while recruiting new business and industry to the Commonwealth.
In the past 16 months more than 15,400 jobs have been added to Virginia, the eighth highest number of net new jobs created in the nation. At a time when California and other states are hemorrhaging jobs, the McDonnell administration continues to encourage economic development, sometimes with business incentives that encourage a company to choose Virginia over, in the case of Cadence, Costa Rica. That results in jobs for Virginians and revenue for localities as well as the state.
In response to criticism of incentives, or what some call “corporate welfare,” Bolling wrote an op-ed in Sunday’s Richmond Times-Dispatch explaining that incentives have helped Virginia become more competitive in the jobs market:
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For every $1 in incentives we have awarded to companies, the return on investment is $7 in direct state and local tax revenue. To date, the employment and capital investment from incentive-driven projects has generated $1.6 billion in tax revenues, money that is used to fund other important priorities like education, transportation and public safety.
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All of our incentive programs are tied to clear job creation and capital investment agreements. If a business fulfills its commitment, it receives the agreed-upon incentive, but if it fails to meet its commitment the money is returned to the state.
Bringing 65 new jobs to the central Shenandoah Valley is encouraging at a time when many companies have faced financially difficult times resulting in layoffs and closings. The expansion of Cadence is good news for Green Hills Technology Park, the areas of Staunton and Augusta County, and for the Commonwealth of Virginia.
Photo by Lynn Mitchell
