Sunday, January 27, 2008
Editorial: Holding on to Advance Auto Parts
Roanoke economic development officials need to actively sell the region to the new CEO.
From the RoundTable blog
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The decision by new Advance Auto Parts CEO Darren Jackson to hire three former Best Buy executives may give some hint of the business approach he'll bring to the auto parts and accessories retailer.
But the fact that all three, in addition to coming from Best Buy like Jackson, also live in the Minneapolis-St. Paul area should give Roanoke area economic development officials even more cause for concern that Advance, the only Fortune 500 company based here, might eventually defect from the region.
Jackson already announced that he would soon start working from a new regional office the company plans to open in Minneapolis.
With Advance's new chief financial officer, vice president of finance and investor relations, and executive vice president of supply chain and IT all joining Jackson in that office, there is reason to suspect that the corporate headquarters might leave Roanoke for Minneapolis.
Advance was founded in Roanoke, and the ties are deep. But when a good portion of the senior management team has ties elsewhere, the company's history with Roanoke won't count for much.
When Jackson first announced the regional office in Minneapolis, Roanoke officials expressed concern.
"I hope as he learns more about the quality of Roanoke's work force he'll realize there's a lot of talent here, too," said Beth Doughty, president of the Roanoke Regional Chamber of Commerce.
Economic development officials better be doing more than hoping that Jackson soaks up an appreciation for Roanoke when he visits here.
Minneapolis has some undeniable advantages over Roanoke as a location for a corporate headquarters, and there is no doubt that Jackson knows it.
It's a larger city with better flight connections. The region is home to several other corporate headquarters, including big retailers like Target and Best Buy.
Jackson obviously respects the labor pool there.
Roanoke officials need to do some serious courting of Jackson and his leadership team. They need to actively sell the region and its work force.
Advance officials have said the corporate headquarters will remain in Roanoke, but that assurance should not lead to complacency, especially when so many signs point to a different outcome.
