Washington County Economic report

Vermont Business Magazine, Nov 01, 1997 by Roberts, Eloise

With its scenic mountains, lush valleys and wooded hillsides, Washington County wears many different faces. It is home to the state capital and state offices. The granite, insurance and dairy industries with roots in the 19th century are still a vibrant part of its economy.

Newer industries include a number of specialty food companies. The ski industry dominates the Mad River Valley.

Today in a quiet, understated way that seems typical of Central Vermont, many of those faces seem to be smiling. In the northeast corner of the county, there are smiles at the Cabot Creamery Cooperative. "It's all good news," said spokeswoman Roberta MacDonald. "There are more jobs and a significant increase in distribution." The cooperative has added 45 new jobs this year, an increase of more than 15 percent.

In Waterbury, Green Mountain Coffee Roasters has just announced a new partnership with Poland Spring, a subsidiary of Perrier. The switch is expected to reap additional sales of more than a million pounds of coffee.

In Graniteville, Rock of Ages has added a 17,000-square-foot processing facility, and expects to add 12 to 15 new positions to staff it. The company has also just gone public, with an initial public stock offering in mid-October. The company is also in the process of negotiating a contract that, if successful, could mean another 30 to 40 new jobs.

"Things are coming along," said Richard Angney, executive vice president of the Central Vermont Economic Development Corporation. "Maybe it's a boom in Chittenden County, but the rest of the state is just chugging along." Ideally the Central Vermont region would add 600 new jobs a year, "to meet the job requirements of this area," he said. "It's a challenge to obtain that much growth. It's happening primarily through existing businesses."

Washington County's economy is multifaceted. According to the Department of Employment and Training, there are more than 2,300 employers in the Central Vermont region, plus an additional 2,500 self employed individuals. It is this mix of a large number of employers and the strong cohort of the self-employed that helps insulate the region from dramatic economic shifts. The diversity of those businesses is also a buffer against a downturn in any one industry. State statistics reveal the average Central Vermont employers have on average fewer than a dozen employees.

Still there are some fairly large employers in Washington County.

The 25 largest employers in the area provide a quarter of the region's total employment. Only the state of the Vermont has more than 1,000 employees and some of the larger employers are also the least volatile.

There is relatively steady employment not just in state government, but also in municipal government and education, and in the health care field, including Central Vermont Hospital, Washington County Mental Health, and the Berlin Convalescent Center.

Only four employers--Central Vermont Hospital, National Life Insurance, Rock of Ages and Norwich University--have between 500 and 1,000 employers. Another handful--Ben & Jerry's Homemade, Blue Cross/Blue Shield, Bombardier Corp, Grand Union Stores, Montpelier Public Schools, Price Chopper stores, Cabot Creamery and Washington County Mental Health--employ between 250 and 500.

Another 15--including Green Mountain Coffee Roasters, Interstate Maintenance Cleaning, Sugarbush Ski Resort, and Vermont Mutual Insurance Co--have between 100 and 250 employees.

There is also a diversity of markets for the county's businesses.

The major markets for the products of 11 of Washington County's largest employers are outside the state: Vermont Rock of Ages, Bombardier, Ben & Jerry's, and of course the ski areas enjoy international markets.

Others, including Cabot Hosiery of Northfield, Capital City Press, National Life of Vermont, Cabot Creamery Cooperative and Vermont Mutual Insurance, market their products around the nation.

Most of the companies located in Washington County are home-grown, said Angney. He receives inquires from outside the region, "but we haven't had anything come in from outside in a while and no hot prospects right now."

Perhaps one reason for its difficulty in attracting businesses may be the perception of isolation. Nestled in the midst of the Green Mountains, the Edward F Knapp Airport between Montpelier and Barre does not offer regularly scheduled commercial passenger service. But with its mile-long runway, it can accommodate virtually any corporate aircraft, and this year it added jet refueling capacity. And, Angney pointed out, it is just a 45-minute drive to Burlington International Airport. "It would take longer than that from downtown Manhattan to the airport," he said.

Whatever outside companies may think about setting up shop in Central Vermont, the companies that are already here seem happy to commit resources to expansion in Washington County.

Cabot Hosiery, in Northfield, this year invested $1 million in new equipment. This company began operation here in 1978 and is now producing five million pairs of socks a year. Marc Cabot decided to locate here after working with a Vermont-based contract knitter in the 1960s. He recently re-located to a new 60,000-square-foot, state-of-the-art manufacturing plant in the new Bean Industrial Park on Dion Road. This year he replaced his aging knitting equipment with "totally computerized" knitting that doubles his production capacity.