Man with the Plan

By Justin McElroy/The Ironton Tribune
Sunday, March 12, 2006 12:21 AM CST

For some, times may be dark financially in Ironton, but around some corners, there may be hope. Consider the case of one former software mogul who’s teaching his small Ohio town, one very much like Ironton, that it may be OK to hope again.

Man with the plan

Craig Newbold grew up in Columbiana County, but in the 1960s, he began to pursue what turned out a very successful career in computing.

How successful? He took one of his companies, BEST Consulting, an IT services business, from zero to eleven hundred employees and generated more than $100 million in revenue in a few years. BEST was ranked the ninth largest software company in the State of Washington by Washington CEO magazine, Microsoft was ranked number one.

But Newbold wasn’t happy. He packed up his silicon and came home. After he sold his company, he returned to his economically depressed hometown a few years ago, lead by a higher power to bring hope back to East Liverpool.

“As I’ve increasingly developed my own faith, my belief in God, the idea came to me that it would be nice to come back home and try to return some of the blessings that I had received,” Newbold said.

A bright idea

His original idea had been to open a non-profit training center, where young people would be given the skills they need to compete in a high-tech world. But it raised some considerable concerns, namely: Where would these newly trained Appalachian Ohioans go for work?

“The probability of anybody hiring them was very limited, given trainees in general have a difficult time getting hired,” Newbold said. “And of course coming out of an area like this, unfortunately, there’s a stigma attached to them about their ability to work.”

Newbold’s unconventional solution was to hire his own students … all of them. One hundred percent of the graduates of the 5-month New Life Academy program, as it would come to be known, have been hired at Soaring Eagle, Inc., Newbold’s technology company that operates out of the same building.

Students literally graduate on a weekend, and report back to work on the following Monday, where they begin a two-year long apprenticeship period while earning full pay and benefits.

“We put them through a very intense program at New Life to give them rudimentary skills then we put them in an environment with experienced people where they can be mentored but still be productive,” Newbold said. “We started Soaring Eagle to provide that element of it.”

A new generation

Students are drawn from a wide age pool; graduates have ranged from 18 years of age all the way into their early 40s. Not just anyone is accepted into the program, applicants must complete an interview process, much like many higher education programs.

Students are also asked to pay tuition to the training program, $12,900 for the five-month course and $4,500 for a 6-week training period aimed at those who already have some experience in the field.

New Life is a non-profit organization and they are constantly pursuing funding sources to help students with scholarship money. Those that can’t afford to pay almost always have their payments deferred, so they can begin to pay their tuition off as they work at Soaring Eagle.

Students learn skills in data security, e-commerce, Web site development and become fluent in various Microsoft technologies.

Twenty-two students have graduated the program so far; all but one is still working at Soaring Eagle. The remaining grad is now programming in Seattle.

Fierce competition

It’s an unusual business model, one that’s only being applied at a few tech companies throughout the nation.

Although it may seem like the cutting edge, it’s really a return to an old idea. Newbold compares it to how businesses used to work, with young apprentices being trained in a craft at a business as they worked there.

Newbold’s most surprising discovery was what he had on his hands wasn’t just a mission of mercy, but a formidable business model in an industry hemorrhaging jobs overseas.

“I recognized the fact that the cost of doing business was so much lower here, because the cost of living is lower, the wages are lower, that I could pass on those savings to the marketplace and compete with the offshore movement,” Newbold said.

It’s an approach that’s beginning to receive more attention from politicians. For example, Gov. Bob Taft was the keynote speaker at the school’s most recent graduation.

“They’re growing their own talent, they’re growing their own jobs,” Taft said at the event. “It’s really about rebuilding a community and providing opportunities for our kids. You’re taking high school graduates, giving them really good programming skills, and then you’re creating opportunities for them to stay close to home. And that’s what our greatest challenge is here in Ohio.”

East Liverpool and Ironton

Of course, the big question is this: Could a similar business model work here in Ironton? Although it’s impossible to say for sure, Newbold said he’s optimistic that his idea could apply throughout Appalachian Ohio.

“The key is people, just because we’re in distressed area doesn’t mean there aren’t smart, hard-working people,” Newbold said. “We just need to be able to find them and harness them in an organized program.”

Newbold said he has considered expanding the business to other communities as it continues to grow. Although he isn’t familiar with Ironton specifically, when given a general overview, he said that a business like his could probably work in this area.

“Yeah, I mean, I don’t know the specifics there, but in general, yes,” Newbold said. “My vision would be to have three of these sites in the 6th U.S. Congressional District then you could go from there. I think there’s tremendous potential in the rural communities for something like this.”

It’s not a far off-base assumption when one considers some of the similarities between the two cities. In July of 2004, East Liverpool’s population hovered around 12,539, while Ironton’s sat at 11,337.

East Liverpool has 4.3 square miles in its boundaries, Ironton: 4.1. Most strikingly, East Liverpool households earn around $23,138 per year on average, as compared to Ironton at $23,585.

Here at home

Bill Dingus, executive director of the Lawrence Economic Development Corporation, said that the training provided by New Life could bring a lot to this area.

“What I have always told the people in the county is that if they have a good, solid set of skills there would be a job for them,” Dingus said.

Although he may not have been familiar with New Life or Soaring Eagle, he said that the concept was one that would have a good chance in this area.

“Workforce development and training is a major piece of overcoming the economic decline in Lawrence County,” Dingus said. “This is an excellent concept, and in turn we’d be pleased to work with the individual or others.”

Afraid to hope

Surprisingly, Newbold said many in his area have not shared Dingus’ optimism, although that has been changing over the two years Soaring Eagle has been in business.

“Communities like this are afraid to hope,” Newbold said. “Their hopes have been dashed in the past. I think there have been so many things that have been offered in the past that haven’t materialized, they’re afraid to hope. But that’s starting to change.”

No matter what the public reaction, Newbold said he’d continue on, as not even building a $100 million dollar company can compare to helping the area that he loves.

“This is the most fulfilling one I’ve ever done,” Newbold said. “When you see those students, what they are in the first place, and what they are a year later, you can’t help but feel good. Seeing them flower, blossom, these are all clich/s, but they’re so real.”