Small Town Tennessee

Consolidating to a Rural Tennessee Location in Order to Save Money and Grow

By Lee Burlett

Editor's note: For 15 years now Southern Business & Development has dedicated this edition, the Small Town South issue (formerly the Rural American South issue), to promoting rural development in the region. In each of those 15 editions, there have been two constants that we always refer to regarding companies that investigate expanding, relocating or consolidating to the rural South.

No. 1, there is no place in the United States where operational costs are lower than in the rural South. And No. 2 you won't find a harder working work force (one that understands that to be paid, you have to put in a complete week of work), than what you will find in the Small Town South.

One company discovered those two constants recently in rural Northeast Tennessee. In the fall 2010 quarter, the Knoxville-based firm, American Book Company, (ABC) recently purchased the former Magnavox facility in Jefferson City. The company purchased the building in order to consolidate its operations into one facility. Projections are, the current workforce of 291 will grow to 555 or more by 2014.

Chief Executive Officer Dean Winegardner said, bringing the company's operations to Jefferson City, under one roof, will save money and also provide the opportunity for "almost unlimited growth without the need to relocate in the future."

"We're very excited about this location. The warehouse is truly the heart of the business," Winegardner said. While management might be the "brain", and sales the "arms and legs" of the company, he said the warehouse is the "heart" that keeps it all going. "It's good to have the heart of our company in this community. With the additional space in Jefferson City, we feel we will be able to take advantage of several opportunities that will include the acquisition of similar companies, as well as an expansion into non-book markets," Winegardner said.

Local officials are thrilled with the company's decision to expand in Jefferson County. County Mayor Alan Palmieri said the fact that American Book, a well-established company, chose Jefferson County speaks volumes. "It means so much that American Book selected our community to be its home," he said. "American Book will be one of those great community partners."

This article is sponsored by the Tennessee Department of Economic & Community Development and TVA.