Board director says national economy hurting development here

Cherokee County is taking its lumps so far this year in regards to economic development.

Speaking at the annual Cherokee County Chamber of Commerce Retreat Workshop Thursday, Cherokee County Development Board Director Jim Cook pointed the finger at a hobbled national economy as one of the main reasons for the current downturn in local economic development.

"2008 has been challenging," Cook said. "We have several companies looking, but they are holding out until the national economy recovers."

Cook said there are several companies with a strong desire to locate here but they can't secure financing from lending institutions.

The bursting of the housing bubble and accompanying lending crisis, the rising price of fuel and the declining U.S. dollar have convinced companies to hold off on plans to expand, according to Cook.

Only one company, Giagni, has located here this year. That company moved into an existing building on Huntington Drive, Cook said.

This year is in sharp contrast to 2007's economic investment figure of $80.1 million.

To make matters worse, the prevailing theme has been job loss - not creation - this year. Freightliner, itself, has cut its workforce by nearly 400 workers in a series of layoffs this year. According to Development Board figures, there were 350 new jobs created in Cherokee County in 2007.