WS Chronicle

By Algenon Cash

Over the past two decades, Winston-Salem has experienced a significant exodus of publicly traded corporate headquarters. Prominent companies such as RJ Reynolds, Krispy Kreme, Wachovia, BB&T, and Primo Water, have all relocated, leaving a void in the city’s economic and social fabric. This trend not only equates to job losses, but also signifies a broader deterioration in the community’s vibrancy and growth potential.

The departure of these corporate giants has a cascading effect. Large companies bring with them not only jobs, but also the capacity to make strategic investments that fuel city growth. They contribute significantly to the local tax base and support numerous nonprofits through donations and board involvement. Their absence is felt across various sectors, leading to diminished economic dynamism and a weakening of social capital.

HanesBrands, once a dominant figure in Winston-Salem’s economy, remains the last major publicly traded company headquartered in the city. However, after selling its flagship brand, Champion, HanesBrands has become a fraction of its former self. The recent announcement that HanesBrands will vacate its 500,000 square foot corporate campus to relocate to a smaller downtown footprint marks another blow to the local economy. 

While Carolina University’s acquisition of the vacated campus might appear beneficial, it brings limited economic advantage. As a nonprofit, the university will not contribute significantly to the tax base, echoing the situation with Atrium Health Wake Forest Baptist Hospital, the largest employer in Forsyth County, which also does not pay property taxes. The absence of property tax contributions from these large institutions means less revenue for local governments, which can impact funding for public services and infrastructure.

Economic development efforts by organizations like Greater Winston-Salem, Inc. seem inadequate in addressing this decline. Although they boast job creation and present glossy promotional materials, the focus on small and middle-market companies falls short compared to regional competitors. Neighboring communities like Greensboro/Guilford County are witnessing rapid growth, with thousands of private sector jobs announced in recent years. Even smaller communities like Davidson and Davie County outpace Winston-Salem with proactive corporate recruitment strategies.

Winston-Salem’s historical significance as a corporate hub is fading. Once the largest city in North Carolina, home to mega-companies like Piedmont Airlines, it now struggles with a lack of vision and leadership. The city’s social capital is at its weakest, with ordinary residents and small business owners losing trust in community leaders. Progress, after all, moves at the speed of trust.

During Mayor Allen Joines’ tenure, which began in 2001, Winston-Salem has faced these challenges. While Mayor Joines has made efforts to revitalize the city, the departure of significant corporations and the resulting economic impact have overshadowed these initiatives. His leadership, though proactive in certain aspects, has struggled to counterbalance the loss of major corporate headquarters, highlighting a need for renewed strategies and innovative solutions to restore the city’s economic strength.

The departure of major corporations has led to significant job losses. For example, the relocation of BB&T to Charlotte resulted in the loss of hundreds of high-paying jobs in Winston-Salem.

The exodus of these companies has reduced the local tax base, with an estimated loss of millions of dollars in annual tax revenue. Nonprofits in the area have reported decreased donations and volunteer participation from corporate employees, impacting their ability to serve the community.

Winston-Salem needs a focused strategy to attract large corporate headquarters. This involves offering competitive incentives, improving infrastructure, and showcasing the city’s unique advantages. Community leaders need to establish a single dedicated organization to spearhead corporate recruitment. Entrusting the role to a sprawling organization such as Greater Winston-Salem, Inc is misguided. 

Strengthen collaborations between the city, small businesses, and educational institutions to create an attractive environment for corporate investments.

Reestablish effective leadership in the downtown area to make it more appealing to businesses and residents alike. This includes improving public transportation, creating green spaces, fostering a retail environment to boost walking traffic, supporting local startup restaurants, and restructuring the Downtown Winston-Salem Partnership.

Rebuild trust with the community by involving residents and small business owners in decision-making processes. Ensure transparency and accountability in economic development initiatives.

Winston-Salem’s potential for a comeback is immense, but it requires bold leadership, a clear vision, and a commitment to proactive economic development. By implementing these strategies, the city can reverse its decline, attract new corporate headquarters, and once again become a thriving economic powerhouse in North Carolina. 

The time to act is now, before Winston-Salem’s once vibrant legacy fades into a mere historical footnote.

Algenon Cash is a nationally recognized speaker and the managing director of Wharton Gladden & Company, an investment banking firm. Reach him at alc@whartongladden.com.