Pillowtex -- A Regional Wake-Up Call

Charlotte (N.C.) Observer
August 10, 2003
Ruth G. Shaw
President
Duke Power

The closing of Pillowtex grabbed headlines across the nation and seemed to strike a raw nerve among Americans reeling from unrelenting news of manufacturing losses and the export of more and more jobs overseas. As government agencies, nonprofit charities and businesses step in to help address the immediate crisis for the thousands of North Carolinians who lost jobs in this closing, we also need to be taking steps to strengthen our economic underpinnings in a state wracked by manufacturing losses in textiles, tobacco, furniture and more.

Can we have a vibrant economy built solely on growth in the service sector without new manufacturing? Where will we find new manufacturing jobs in industry segments where we offer competitive advantages? In a global economy where capital moves freely and low-cost, highly skilled labor attracts capital; how can we compete?

There are no quick fixes, and many groups have been working to address these questions. But clearly, more needs to be done. Where should we start?

First, let’s capitalize on the private/public momentum.

From Washington to Raleigh, and from Charlotte to Greensboro, people have come together to help the laid-off Pillowtex workers. We must build on that momentum to put muscle behind an economic development strategy for our region and our state, building on the array of efforts already underway. We are standing on a burning platform. We have a problem that will not solve itself. What jobs will we retrain our former textile workers for, unless we identify and attract new manufacturing? This issue knows no political or jurisdictional boundaries. It affects us all.

Second, let’s build sustainable competitive advantage.

Textile manufacturing thrived in the piedmont Carolinas for a century because of the significant competitive advantages this region offered: access to raw materials, low-priced electric power, affordable skilled labor. What capabilities and resources do we offer to the manufacturers of today—and tomorrow? How do we capitalize on our strengths, and address weaknesses? How can we do this in a strategic way that will build the infrastructure and capacity for a cluster of related manufacturers? How will our approach benefit urban, suburban and rural areas?

Third, let’s look to the industries of the future.

We can’t turn back the page on the manufacturing we have lost. We can look forward to emerging requirements for manufacturing, and find the match between these needs and the capabilities and infrastructure of our region. Our institutions of higher education have developed formidable capabilities. How can we build upon them to attract potent industry clusters with manufacturing, packaging, distribution and related service businesses?

Duke Power has a long history in this region. We were part of the emergence of the textile industry, and we will be a leader in developing the next phase of our economic growth. The solutions will not be simple or short-term. We are committed to working with others in the public and private sectors to push the process.

The Pillowtex closing is a personal calamity for the individuals and families affected. We must do more than respond to the immediate needs of these workers; we must heed this alarming wake-up call about the changing dynamics of our manufacturing economy, and get to work to make a difference.

— Originally appeared in the Charlotte Observer Aug. 10, 2003