BAY MINETTE — Bill Taylor, past CEO of Mercedes-Benz USA in Vance, Ala., and current president of the Economic Development Partnership of Alabama presented a roadmap of sorts to local business leaders, elected officials and others during the …
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BAY MINETTE — Bill Taylor, past CEO of Mercedes-Benz USA in Vance, Ala., and current president of the Economic Development Partnership of Alabama presented a roadmap of sorts to local business leaders, elected officials and others during the North Baldwin Chamber of Commerce's quarterly breakfast Tuesday morning at the John F. Rhodes Civic Center.
Taylor, who spent nearly 40 years in the automotive industry, told those gathered what they could expect when Hybrid Kinetic Motors builds its plant in Bay Minette.
HK Motors is a developer of "green" hybrid cars powered by a new technology that uses natural gas in place of the typical petroleum gas. The $1.25 billion hybrid car plant is expected to employ nearly 6,000 people and produce 300,000 cars in its first year of production.
"Maybe I can help paint a picture for what may be in store for you," Taylor said. "I would like to say will be in store, but I can't predict the future. What I can do is tell you what things may be in store for you from my experience running a plant."
Taylor said the most noticeable impact will be that of culture.
"You're going to meet people who don't like to do things the way you like to do them and you're not going to like doing things the way they like doing them. But this is a wonderful opportunity to learn about a different part of the world," he said.
"You need to understand it, accept it and embrace it," he said. He welcoming families and business people from another culture is also a way for American, and Bay Minette in particular, families to show off their culture as well.
"(Foreign business culture) is a unique business culture in itself. You will have a tremendous growth in infrastructure, housing and education," he said.
When Mercedes built it's plant in Vance, subtle yet important cultural differences were realized very quickly. Taylor said German homes are intended to be handed down from generation to generation, so they are built to last.
"That's not to say American homes aren't built good, but German homes are built to last 100 years or more. It's just not done that way here," he said.
He said retail business will also change.
"They will have their own food, particularly in an Asian culture," he said, noting that ethnic grocery stores and other services may open.
Taylor said the best way to be prepared is to visit other sites in the southeast such as KIA and Mercedes and find out how the towns they are located in changed.
"Ask what it looked like 10 years ago, in the case of Mercedes going on 18 years ago. What did it look like then and how has it changed," he said.
Employment will be a big issue, he said, as existing businesses and industries will lose employees to the new car plant and its suppliers.
"People who are currently working for you are going to leave," he said, noting that length of service or placement within a business hierarchy will no longer be a staying factor.
"I have seen people give up a seniority position to get in on the ground floor. I have seen people drive 75 miles one way to get to work. You need to have a plan to replace that workforce," he said.
"It's not just the new plant either, it's the suppliers as well. For every employee at an auto plant, there are four or five working at its suppliers," Taylor said.
He said the replacement plan is not only for the businesses in danger of losing employees, but must be a collaborative effort of the entire community, making sure the area workforce is trained and ready to take positions at the new plant, its suppliers, other area industries and businesses and to fill those positions left vacant by individuals taking jobs at the new places.
He said training will be a challenge because the HK plant will be the first of its kind, anywhere.
"When I was at Mercedes, we sent a team to Germany to be trained. When they returned the 70 or so trainers who trained them and their families came back with them," he said. He said the trip to Germany for training was necessary then because there was not a plant here where their hires could train.
"Training is very important," he said.
Skepticism has been an issue surrounding the HK Motors plant, with some residents believing it will never be built.
Taylor said the Alabama Mercedes plant was met with the same skepticism.
"They said 'a Mercedes plant in Alabama, right,'" he said. "What if, what if, what if - I'm telling you don't wait.
"What have you got to lose by making an investment in training," he asked. "By investing in training, you're making an investment in the people of this community."
Though the economic impact from an auto plant and its suppliers is rather obvious, Taylor said the economic outlook is already beginning to look better, and will continue to whether or not HK opens it doors.
"We are already seeing some growth. It's not by quantum leaps, but it's active. Next year we will see a little more, but nothing extraordinary. The real growth, exponential growth, will be in (20)12," he said.
He said it will still be a time before residents see a noticeable change in unemployment.
"Businesses are starting to make a profit again, but they are trying to build back up their bank accounts before making any hires," he said. "Businesses are timid about investing."
Still looking to the future, Taylor said he would continue to work with Bay Minette Mayor Jamie Tillery and others to prepare for a major industry such as HK Motors.
Tillery remains steady in her belief that HK Motors will come to Bay Minette and will fulfill its promises of employment and sales.
"Yes this is what if, but that if will turn into real one day and we can't be idle," she said. "Are you ready? Are you willing to make this commitment to our future."