Dell to stay local in hiring

After the generous incentives Dell received to build a manufacturing plant in Forsyth County, the company is now prepared to start giving back — in the form of paychecks to about 350 new employees.

The company’s 527,000-square-foot manufacturing facility, located in the Alliance Park complex, will be officially opened in a ceremony for community leaders Oct. 5.

Citizens in the Triad have seen a number of large employers move away in the past few years, making Dell’s commitment to hire mainly from the surrounding area an important bargaining point.

Out of almost 175 employees, Dell brought in only five from its plant in Texas, said Bob Leak Jr., president of Winston-Salem Business Inc. “The majority (of employees) we would consider local hires.”

The first group of new hires is already in the building testing equipment, with the second phase scheduled to begin work by Sept. 6 and a third phase on track by the end of the year.

“We’ve been really pleased with the quality of the work force,” said Michele Blood, Dell spokeswoman.

The state-of-the-art manufacturing plant also has drawn supplier companies to the Triad area, resulting in more jobs.

World Wide Technology Inc. has announced plans to move to High Point. APL Logistics and Austin Foam Plastics Inc. will soon be opening in Winston-Salem.

World Wide Technology,, another logistics company, will initially have 20 full-time workers.

“They are hoping to grow, and perhaps get other business beyond Dell,” said Loren Hill, president of the High Point Economic Development Corporation.

During the next 36 months, APL Logistics plans to hire 50 full-time employees and as many as 100 temporary workers, depending on seasonal fluctuations.

Austin Foam Plastics, a Texas-based packaging business, plans to be up and running by mid-September.

“We’re installing equipment as we speak,” said Van Holley, vice president of marketing and new business development for the company.

The packaging supplier plans to hire 80 to 100 people in the first year, including seasonal employees, he said.

Austin Foam Plastics does not have a formal contract with Dell, but is confident business will be available. Holley said the company also hopes to provide services for other industries.

“We aren’t just completely in the electronics business,” he said, adding that the company will be equipped to do business with the furniture industry as well.

Dell’s arrival follows a multimillion dollar incentive package to lure the company to the Triad.

Winston-Salem’s contribution to the incentive package was a small piece of the puzzle, said Derwick Paige, assistant city manager.

The city considered predictions of more than 5,000 jobs and an economic impact of $1.5 billion and decided to offer $22.4 million in incentives, he said.

The scope of the enticements offered to Dell by state and local governments prompted some controversy during negotiations.

The N.C. General Assembly allocated the largest incentive package in the state’s history at $242 million.

The N.C. Economic Developers Association conducted a poll to gauge public sentiment on the use of incentives to draw business to the state, said association president Scott Millar.

The NCEDA used a professional polling service and found two-thirds of the population favored using incentives to aid economic development in the state.

“People do agree … by a greater margin than I think even I expected,” Millar said.

Triad officials, so far, say they are satisfied with their use of incentives to draw the Dell plant.

“It’s really boosted the overall local economy. I think folks are just feeling a lot better,” Paige said.

“We’ve had several projects that didn’t go our way, and this one just got everyone excited again.”

Contact the State & National Editor at stntdesk@unc.edu.