Dalton at a glance
October jobless rate, metro Dalton: 10 percent
October jobless rate, statewide: 8.1 percent
Median household income, city of Dalton: $38,231
Median household income, statewide: $49,736
Population, city of Dalton: About 33,400
Sources: U.S. Census Bureau, Georgia Department of Labor
A rebound in construction and housing is giving a much-needed jobs jolt to northwest Georgia, where the flooring industry was leveled by the bust.
Mohawk Industries on Wednesday said it plans to expand two plants, creating 420 new jobs, as demand for carpet picks up steam.
It’s the latest in a string of such hiring announcements. Since May 2012, Mohawk, Shaw Industries and Engineered Floors have announced plans to hire about 4,000 in several plants in the region over the next few years.
They represent a bet on renewed building, a key part of the economy in metro Atlanta as well.
“There’s expansion in construction and the (flooring) industry sees it,” Mercer University economist Roger Tutterow said.
The jobless rate in metro Dalton, in the heart of the so-called “carpet corridor,” remains high compared to the rest of the state. In fact it rose to 10 percent in October, from 9.6 percent the previous month. That compares with 8.1 percent in metro Atlanta.
But the hiring plans suggest better days ahead for the northwest Georgia region, which includes Dalton, Rome and Calhoun.
“There’s a little more optimism these days,” Mark Buckner, chief business development officer for municipal power company Dalton Utilities. Though there hasn’t been much in the way of commercial or residential power growth in Dalton in recent years, he said the surge in manufacturing projects has been “somewhat unprecedented.”
State and company officials said Mohawk, headquartered in Calhoun, will invest about $85 million to convert manufacturing sites in Dalton and Rome to a different form of yarn-making known as bulk continuous filament. A state official said the move will create 420 jobs at the Dalton plant, while sustaining 230 existing jobs in the region.
Mohawk will receive a cash grant of $700,000 from the state as well as jobs training through Georgia’s Quick Start program. The company also could earn $6.3 million in tax credits over five years if it creates the full amount of jobs, according to an analysis by The Atlanta Journal-Constitution.
Though new home building and sales remain well below pre-recession levels, signs of life are appearing. New home sales rose 25.4 percent in October compared to September, according to the U.S. Census Bureau. Rising mortgage interest rates this summer slowed buying, and supply of new homes remains low.
Apartment construction and conversions of single-family residences into rental housing have been on a tear as many would-be buyers remain financially challenged or hesitant to buy since the recession.
Georgia was one of the hardest hit states during the recession because of the fallout of housing. The state rode a building binge before the recession, and suffered heavy losses in real estate-related jobs like construction.
Dalton, 90 miles northwest of downtown Atlanta, was known as the Carpet Capital of the World. Mills in the area once had trouble filling jobs.
Nonfarm employment in metro Dalton tumbled from 79,000 in May 2007 to 62,200 in July 2013, a drop of nearly 21 percent, according to data from the state Department of Labor. Despite the uptick in the jobless rate in October, the total number of jobs increased in the month by 300, with most in textile manufacturing.
Mohawk officials did not immediately return messages seeking comment. In a state news release, a Mohawk executive said that, through the Rome and Dalton plant expansions and a previously announced project in northwest Georgia, the company “will create or retain more than 1,000 jobs” in the region.
“As the U.S. economic recovery gains traction, Mohawk is increasing manufacturing capacity to meet rising demand for the company’s premium soft carpets,” Joe Yarbrough, Mohawk Senior vice president of advanced manufacturing engineering, said in the release.
Tutterow, the Mercer economist, said carpeting materials are often sourced locally, meaning suppliers also will benefit.
The newly announced carpet jobs add to manufacturing gains Georgia has seen this year, from auto parts suppliers to food processors.
“Part of what we’re seeing is the general opportunities to re-shore production from abroad,” Tutterow said.
Mohawk reported sales of $5.42 billion for the first nine months of 2013, up nearly 25 percent from a year earlier. Mohawk brands include Mohawk, Aladdin, Pergo, Karastan and Marazzi tile.
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