Interview with Charles Doty, CEO

Background

Founded in 1990, Lextron established its operations in Mississippi where the company began to flourish in an environment that encouraged growth and partnerships through research and development.

Within three years Lextron won its first contract with Bell South, and later a second contract with AT&T, to produce multi-station protectors for building entrance applications. This protection equipment is responsible for shielding the phone lines against high voltage surges from lightning, or electrical surges.

Lextron began expanding its business to include automotive applications after a contract was obtained through Delphi Packard and General Motors to produce electrical products – particularly emission products – for Corvettes, Cadillacs and other GM vehicles.

Most recently, the company was awarded a contract with Nissan, and will be partnering with Visteon to produce cockpit assemblies and vehicle front-end modules, to be built near Nissan’s Canton, Mississippi facility.

Prior to being awarded the Nissan deal, Lextron received a contract with Boeing to provide qualification testing to retrofit the AWAC naval fleet with fiber optic cabling. It was this contract that added fiber optic connectivity to Lextron’s service offerings.

Since initial startup with one employee, Lextron has outgrown its original space of 400 square feet to operating a 50,000-square foot automotive facility and a 75,000 square foot telecommunications facility. Plans are in the works to build a 98,000 square-foot facility adjacent to the Nissan facility in Canton. Lextron now employs 180 employees and expects to add more to its workforce with the recent opening of the new Nissan operations facility.

The company has received international recognition, which reinforces the company’s industry position for the next generation of connectivity, especially in light of applications used in defense technology.

Lextron and Mississippi

When it comes to starting and growing a business, Lextron has found that doing business in Mississippi provides them with every opportunity for success. Start up and expansion incentives, a skilled workforce, reliable transportation and quality of life in Mississippi have all contributed to Lextron’s success.

Charles Doty, CEO of Lextron, believes that financing is a critical factor for any company during selection of a new site location. According to Doty, the incentives offered through the Advantage Mississippi Initiative assists companies in defraying some of the initial upfront costs. This financing benefits a company, in that it gives business an opportunity to expand and provide more jobs - earlier rather than later.

Lextron’s business development initiative was rather unique. Lextron chose to develop operations within the inner city neighborhoods. Doty recognized a labor pool that could help the company remain competitive in terms of the total cost structure.

In Mississippi, Empowerment Zones/Enterprise Communities Program (EZ/EC) offers various incentives to companies like Lextron. Through EZ/EC there are various incentives that companies receive, such as federal tax credits for hiring individuals who live in the area. Empowerment communities include areas where employment is declining. Through EZ/EC incentives and through utilizing the workforce and location, Lextron’s overall cost of doing business was lowered, making property and facility acquisitions possible.

EZ/EC initiatives have been designed to aid companies willing to make an investment in terms of facilities and hiring of specified labor pools within a particular empowerment zone. Doty says tax credits offset much of the cost of the investment, which leads to a more competitive total cost of operation. In turn, this savings allows a company to offer greater incentive to their customers. These sorts of incentives provide a foundation for both short- and long-term shareholder value.

"I think Mississippi has a great many incentives that should be very attractive to both large and small companies looking at expanding their operations in the South,” said Doty.

Lextron is just now beginning to experience the benefits of the Advantage Mississippi Initiative, a new vision driving the state’s economic development. The initiative enhances the ability of the Mississippi Development Authority to connect the state’s abundant resources of Mississippi with businesses. The result thus far has been higher quality jobs for Mississippians. Advantage Mississippi focuses on the wealth of educational, technological and community resources available to companies interested in relocating or expanding to Mississippi.

Doty explained that Advantage Mississippi incentives geared toward retention of employees is an enormous benefit to companies. The tax credits are significant, he says, because they can offset the debt that a company acquires when purchasing or building a facility. Advantage Mississippi gives companies the opportunity to provide a better cost structure for customers and additional benefits for employees. This in turn benefits the state and its tax revenue, because a company is able to employ more people.

“ I think Advantage Mississippi and its load of incentives will undoubtedly position Mississippi as a place that attracts higher-paying jobs,” said Doty. Advantage Mississippi is big. It will make the difference in attracting and retaining industry.”

Education and Workforce Training

The Advantage Mississippi Initiative serves as a foundation that encourages partnerships between the public and private sector. Doty believes this cooperation has begun to work in a very cohesive manner to attract industry and enhance higher education in the state. He said organizations such as the Mississippi Technology Alliance, the Institute of Technology Development, Communications Information Technology Mississippi, and the Mississippi Economic Council serve as valuable catalysts in helping to enhance educational offerings in the state.

Doty also sees cooperation between the public and private sectors for providing all necessary resources for K-12. He said such efforts have helped to better prepare them for the job market once they complete even a high school education. He said community colleges are addressing the challenge of ensuring that those who complete a high school education will have viable opportunities at two-year institutions to excel and learn the necessary technical skills for gaining employment at a high-tech company. Doty says the state must remain committed to funding education and job training in order to remain competitive in attracting different industries.

Education is crucial for Lextron, Doty believes, as the company can only operate if its employees have the necessary technical skills to perform. As far as engineering expertise, Lextron employs electrical engineers, processing engineers and computer science engineers that can develop and design the operational systems. Thus, education plays a vital role because Lextron needs to hire and maintain individuals with those necessary skills

Doty said the workforce Mississippi provides is the best thing about having Lextron in Mississippi. He underscored the excellent work ethic instilled here, particularly when companies put forth the effort to engage its workforce in meaningful projects. This helps develop a sense of pride in employees, which only leads to employee satisfaction and personal fulfillment.

“ I think Mississippi’s workforce makes the difference in being competitive in the business world. After providing the appropriate training and resources to perform a particular job, I don’t think you’ll find a more willing and able worker than you will find here in Mississippi,” said Doty. “Lextron cannot be the company that it is without the excellent people it employs. Our employees make it happen by being relied upon to make world-class products for our customers.

Through partnering with Hinds Community College, Lextron has been able to address and obtain specialized training needs. The college develops training for entry-level positions and trains them to meet Lextron’s production requirements. This enables employees to contribute to operations immediately upon entering their job rather than having them spend 90 days or longer reaching a particular performance level.

“ Mississippi’s community colleges do an excellent job in workforce development. With input they receive from companies on specializing skill sets, people leaving the educational environment and entering the work environment will be ready to make early contributions,” said Doty.

Doty says he believes utilizing community colleges in the state is certainly an advantage for any company locating to Mississippi.

Lextron has collaborated with several state institutions of higher learning, including engineering schools at Jackson State University and Mississippi State University. The company offers internship programs that not only provide experience, but entices them to return to Lextron after graduation. Lextron wants to show students that there are excellent career opportunities at the company that would equal or surpass anything they could find in the country. Doty says Lextron offers an environment that facilitates learning. The company considers it more beneficial to keep student workers in Mississippi instead of sending them off to work for competing companies. Doty sees that retaining students and their respective talents not only allows a particular company and state to remain competitive, but it also enhances what a region is able to do.

Transportation and Utilities

When it comes to Mississippi’s transportation system, Lextron has not only benefited from Mississippi highway and railroad improvements but also from the state’s unique geographical location. Doty believes once Mississippi is able to develop a superior transportation system that includes everything from roads to rail and cargo transportation, getting in and out of the state easily will put Mississippi ahead of many other places. Mississippi’s unique geographical location gives companies the ability to make overnight shipments to significant locations throughout North America, using a variety of carriers.

Because freight carriers in the trucking industry are the most important transportation option for Lextron, the I-20 and I-55 corridors have been advantageous. It is Doty’s belief that the state should invest in a high speed rail system, which connects an area encompassing a 50 to 60 mile radius of the metro area. He said the capacity for superior transportation services to the Nissan facility and other businesses would then be advantageous for economic development.

Utility availability and costs are contributing factors in business development for companies looking to expand or relocate. Lextron has found that the availability and costs of utilities in Mississippi help make the state a major competitor in economic development.

Doty believes Entergy does an outstanding job in meeting energy requirements and providing business development opportunities for Mississippi businesses. Entergy committed to establishing substations where needed so that new businesses energy requirements are met. Doty says this is a contributing factor when companies look at relocating or expanding in Mississippi. “Mississippi has the infrastructure and immediate energy resources available that allow companies to come in and build the type of facility they need to build,” he said.

Doty says it is his experience that Mississippi is also well equipped to handle telecommunications needs, even in its rural areas. “Mississippi provides all the necessary utility services that a company needs to compete in any competitive business environment.”

Quality of Life

Although incentives and capital make up the majority of decision-making for economic developers, anyone seeking to employ or recruit a labor pool has to consider quality life aspects of an area. Mississippi businesses like Lextron are finding that Mississippi’s quality of life contributes significantly to their employees’ decisions to call Mississippi home.

Doty said that Mississippi offers an excellent quality of life for people, particularly when it comes to the metropolitan areas. He said that Mississippi offers a genuine experience of Southern hospitality and that during Lextron’s recruitment efforts; people come here and see that Mississippi provides a quality of life that they could easily embrace. He says they see a high quality yet low cost in the family-style living, which has amazed some individuals, due in part to misconceptions about Mississippi.

“The people in Mississippi make a difference. I can’t say enough about them. In my opinion, they’re probably the most genuine folks you’ll find on the planet,” said Doty.

Once a person visits Mississippi, Doty said, they tend to have a different opinion about the state when they leave. He has found that many people are pleasantly surprised to find that Mississippi has some of the more competitive private and public schools in the country. Doty did say that although the state is making strides, the need for continued improvement to Mississippi’s educational system remains, especially when it comes to attracting businesses and families.

The quality of life that Mississippi offers affects Lextron’s commitment to remain in the state, said Doty. Mississippi has numerous places families can go for outings and recreational activities. The cultural exhibits such as the “Majesty of Spain” and “The Splendors of Versailles” have helped gain awareness of Mississippi as offering unique cultural experiences. Doty says these experiences offer an outstanding educational exchange and that all of these things allow Mississippi to be showcased in a very positive light.

Future Opportunities

Although he has explored expansion possibilities in other states, Doty believes Mississippi is the place to be when it comes to workforce and transportation resources, particularly as it pertains to the climate. He says that Mississippi simply needs to place more commitment to letting the world know about all the benefits the state has to offer. Mississippi, in Doty’s opinion, needs to gain more attention as a place to prosper in business.

Lextron welcomes the opportunity to expand in Mississippi. Doty said that it is one of his personal desires to expand into the Delta, particularly Holmes County. He would be very committed to finding opportunities to do business there. He believes there is a need for new business development in the Delta, and sees the people of the Mississippi Delta as a major contributing factor to any company wishing to locate there.

“ When you really get to experience some of the unique places in Mississippi, you will fall in love with the state,” Doty said. “To be honest, I don’t know of any other place I’ve been to that I can say that about.”