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Demolition a sign of decline of America's textile industry
April 26, 2007
8:05 AM
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A vacant Russell Corp. distribution center is being dismantled piece by piece -- a painful reminder of what has been happening to a once-glittering symbol of America's textile industry.

Offshore relocation to obtain cheap labor has cost an estimated 5,000 jobs in the past few years and local leaders are trying to find replacements for lost jobs as well as a way to lift public morale.

"It is depressing to see that building coming down as well as other things that are happening at Russell," said local lawyer Tom Radney, who once represented the company. "I'm not the only one who feels that way."

Mayor Barbara Young, who shares Radney's pain, has something he doesn't -- the political clout to try and do something about it.

In mid-March, Young, Alexander City, AL Community Development Director Randy Thomas and former Mayor Don McClellan spent several days in Korea where they outlined advantages that Korean businesses might receive from locating somewhere in or near Tallapoosa County.

For McClellan, director of the Lake Martin Area Economic Development Alliance, it was his second trip to Korea in a six-month period.

Tallapoosa County already has some automotive-related industries, but those businesses can hardly fill the void left by the loss of thousands of sports apparel jobs in the past decade.

Russell still has about 2,000 employees locally, but empty buildings and former workers looking for jobs don't add up to an optimistic outlook for many in the area.

Dismantling of the huge distribution center is a depressing example of how far Russell has declined during the past decade.

It once was a state-of-the-art facility that stored garments for shipment to happy customers across the country.

Vacant for the past six years, it now looks -- as one local resident put it this week -- "like a tornado hit it."

Russell's future at the moment is in the hands of Berkshire Hathaway Co., which is owned by billionaire Warren Buffett.

Buffett's ability to acquire fiscally ailing companies and make them profitable is legendary, but no details have been made public about what might or might not happen to Russell.

John Shivel, vice president of marketing and public relations for Fruit of the Loom, one of several Berkshire Hathaway subsidiaries, said no decision has been made on what to do with the site where the vacant building is being torn down.

"The storage building in question is being razed due to the fact that the facility had become outdated and obsolete," Shivel said this week. "The site needed to be cleared out and cleaned up to improve the overall appearance and provide the opportunity for better utilization of the site."

Shivel did not elaborate on what the future might hold for a company that once was a dominating force in the sports apparel industry, but he did say his company will continue "to evaluate future operations to grow the Russell business."

"Specific plans regarding the future of this site are still under evaluation," Shivel said.

What Young, McClellan and Thomas tried to get across to their Korean hosts is the availability of a skilled work force, one that includes several generations of textile workers who have been here since Russell opened for business in the early years of the 20th century.

"We have people who have and can continue to do a good job if given the opportunity," said McClellan. "We've also got a two-year college and a technical center to train them."

Young said she is hopeful that a decision may soon be announced from Korea on possibly locating in local communities that once relied on Russell for jobs.

"Two or three industries are definitely interested," said Young, who added she had no problem adjusting to the 15-hour flight each way to-and-from Korea. "They are tier one and two auto industries."

Young and Thomas said confidentiality agreements signed during the trip prohibit the local delegation from disclosing what incentives might have been offered to Korean auto executives.

Tax abatements, available sites and other considerations are usually key issues in attracting industries.

"We hope to know something in four-to-six weeks, but we'll take it whenever it comes," said Young.

Susan Foy, who directs the local chamber of commerce, said despite the Russell cuts in jobs and facilities, it's far from a desperate situation for the area.

"Our unemployment rate is still relatively low at about 4 percent," she said. "Some of our people have had to commute to jobs more distant than what they had at Russell, but they are still raising their families here."

Foy also said Russell continues to have a strong presence in Alexander City and surrounding areas because it remains the area's largest employer -- just not as big as it used to be.

As the distribution center continues to slowly come down, Radney and other Alex City professional and business leaders consider comeback possibilities.

"Don't forget Lake Martin," Radney said. "Those lots are going for a lot of money and $1 million homes are being built on them right now."

What income, if any, can be derived for Alex City from the housing boom in communities bordering Lake Martin remains to be seen, but Radney prefers to look on the positive side of things.

"We've been through some tough times in the past and have come through them just fine," he said. "I'm confident we'll weather this storm, too."

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