Commissioner Speaks Language of Business
Published Apr 07, 2004
State ECD Commissioner Matt Kisber
When Matt Kisber talks to existing or prospective Tennessee businesses about the challenges of making a profit, the commissioner of Tennessee’s Department of Economic and Community Development speaks from experience. That experience began at age 12, when the Jackson native started pitching in at Kisber’s Department Stores Inc., the family business founded by his great-grandfather in 1905. The two department stores closed in 1991, but not before engendering in Kisber a deep respect for free enterprise. When Tennessee business executives sit down with Kisber, they’re at the table with a kindred spirit.
Kisber’s professional experience includes a stint as vice president of business development at First Tennessee Bank in Jackson, where he recruited new business and expanded existing relationships. Appointed ECD commissioner by Gov. Phil Bredesen in January 2003, Kisber also brings a wealth of political savvy to the job. With a degree from Vanderbilt University in political science, Kisber was just 22 years old when elected to the state House of Representatives in 1982. He served for 20 years, eventually chairing the powerful Finance, Ways and Means Committee. He chose not to run for re-election in 2002.
Q: Commissioner Kisber, while you and the governor acknowledge that it’s rewarding to attend the ground-breaking of a new industry locating in Tennessee, your department appears to have zeroed in on the importance of nurturing existing business.
A: You’re absolutely right. The growth of our existing industries is critical to the overall success of the state’s economy. We recognize that more than 80 percent of all new jobs are created by companies that are already here.
In many instances, if you’re not paying attention to the companies that are here, they can feel ignored at the expense of recruiting efforts to bring in new companies. A healthy economy must be anchored by a strong, existing industry effort supplemented by an aggressive recruiting campaign.
In the time that I have been in office, I have reallocated resources within the department to support existing industry. We’ve created new initiatives to support existing industry, and these efforts are bearing fruit. We’re seeing a large number of expansions and, just as importantly, there’s a sense that existing industry feels valued by state government. Where that exists, the relationship is always strengthened.
Q: Despite a decline in manufacturing jobs nationwide, doesn’t Tennessee still enjoy a rather healthy manufacturing base?
A: We do. We’re fortunate in Tennessee to have a very diversified economic base with a very strong manufacturing component. The growth of the automotive industry in the South has made Tennessee a leader in automotive manufacturing. Because of the strong work ethic that Tennesseans possess, it makes Tennessee a great place for other industries – Dell Computer, FedEx and Eastman Chemical, for example.
Across the state, there are illustrations large and small of productive and efficient manufacturing operations that are at the top of their company’s productivity. That’s a testament to Tennesseans.
One example I like to point to is the Nissan North America plant in Smyrna. For eight years in a row, The Harbour Report has rated that Nissan operation the most productive automobile assembly plant in North America. That’s a result of a strong work ethic with good engineering and design. Nissan has said, and other companies have told us, that their best workforces are here in Tennessee.
Q: When Gov. Bredesen took office, he recognized that different regions of Tennessee have different economies, and your department proceeded to conduct its business accordingly. Is this regional approach paying off?
A: Yes. In this 21st-century economy, the arbitrary boundaries that were created some 150 to 200 years ago to create counties really are meaningless in today’s world of business. We believe, to be successful, regions must come together to take advantage of the opportunities and to exploit their assets. A University of Tennessee study identified economic regions based on commuting, job, education, retail and health-care patterns rather than artificial regions that might or might not have the synergy that we hope exists. We’re letting the marketplace define those regions for us.
We work our strategies to support those regional strengths and will continue to do so. I’m a strong believer that we recruit to our strengths, and there’s no question that the automotive industry is a very strong part of our manufacturing base. But we also have other areas – chemicals, pharmaceuticals, medical device manufacturers, office equipment. You name almost any product used today, and some part of it probably had its origin in Tennessee.
Q: Experience tells us that economic development is more of a challenge in rural areas. How is ECD working particularly to create jobs outside Tennessee’s urban areas?
A: In our efforts to support a growing statewide economy, we must be assured that we’re supporting the rural as well as the suburban and the urban. The challenges facing rural communities have increased in the last few years, and where there are challenges, there are opportunities.
Our redesign of the Three-Star Program puts much greater emphasis on strategic planning. ... If there is anything that has struck me in my time here, it’s that we have a number of good communities that haven’t thought about where they want to go or how they want to get there. I remember from my experience growing up in Jackson that one of the most important parts of moving Jackson forward was an activity called Goals for Jackson, a yearly process to identify goals and how we were going to achieve those goals. You don’t build a house without having the blueprints, so you can’t achieve the success you want without having a plan for getting there.
Q: Is Tennessee making sufficient strides to improve educational opportunities?
A: Education and economic development are synonymous. You cannot have successful, sustainable economic development without an emphasis on a strong educational system.
The governor understands that. We respect that. We’re working closely with the other departments in the Governor’s Jobs Cabinet and with local communities, trying to help them see the need to focus on their education system as the No. 1 component of their economic development program.
Q: And you’re saying that education should be the No. 1 component?
A: Absolutely. No community can compete for jobs, no matter what else is on the table, if it lacks the skilled labor to support those jobs.
Q: How is ECD helping ensure that quality workforce?
A: Through the Jobs Cabinet, we’re working closely with the higher education community and the Department of Education in communicating the challenges that businesses are facing in finding appropriate skill sets.
We work through the Three-Star Program, helping communities focus on that very important component as part of their strategic plan. And through our educational efforts like the annual Governor’s Conference and various seminars, we’re putting a great deal of the spotlight onto the educational component of economic development. If we turn our back on it, which some have done in the past, we will never be in a position to take advantage of the knowledge-based jobs of tomorrow that we want Tennesseans to benefit from in the years ahead.
Q: Sounds like partnerships with other entities at many levels are crucial.
A: We believe in the power of partnership. When we’re able to bring to the table like-minded organizations that have resources to support our common goals, we’re all better off for it. When we all join hands and work collaboratively toward the common goal, it impresses prospects. In fact, I have had a number of prospects say that they have not seen the kind of cooperation in other states that exists in Tennessee. And I doubt they will.
Story by Sharon H. Fitzgerald
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