Micron's Multiplying Effect in Manassas

When Boise-based Micron Technology Inc. picked its Manassas plant to produce a new generation of memory chips, the decision was based on factors as distant as global technology prices and predictions about the market for iPods and cellphones.

What it meant for the local Toyota dealer, however, was a bulk order for 100 leased Corollas for Micron's fleet. Keller Williams Realty in Manassas devoted several agents to finding the new employees homes, while multinational caterer Eurest expanded at Micron's cafeteria. For Raj and Sangita Narasimhan, late of the company's headquarters in Idaho but now transplanted to a six-bedroom home in Haymarket, it touched off a family spending spree that sent its own small ripples into the local economy.

They've spent more than $5,000 on private preschool for their two sons, $10,000 on new furniture from the Fair Oaks Mall and the Leesburg Outlets and $400 on a new stereo at Best Buy in Manassas.

"There are a lot more opportunities here, like going to Indian restaurants, shopping at international groceries and signing up for activities for the boys," said Sangita, 33, who quickly found a job at AOL after her husband's transfer at Micron. "We're definitely spending more money than we did in Boise and we're taking full advantage of the region."

An examination of Micron's $3.5 billion plant expansion in Manassas shows how the decisions of one company have helped fuel Washington's economic boom and drive the creation of 242,000 new jobs in the past five years. While not always visible, the collective impact is far-reaching, having buoyed the housing market and reshaped the economy as it stretches further into the suburbs. Collectively, they have changed the area's sense of place: Commutes are getting longer, for example, and the jobs and opportunity flowing down from companies like Micron have helped attract the new immigrants that have made Washington one of the most ethnically diverse metropolitan areas in the country.

Micron's race to hire and relocate 800 workers to Manassas over the past year has created more real estate and business taxes for the town, Prince William County, and other jurisdictions, and more sales tax for the Washington region.

But that's just the start. Micron's new workers are paid an average of $70,900 a year, and that translates into enough spending in local restaurants and retail stores to help support perhaps 1,500 other jobs, according to one recent study.

When Micron took over Dominion Semiconductor's Manassas plant in 2003, the company laid off nearly half the workforce there, illustrating how easily corporate decisions can also hurt the fortunes of the local economy. Since then, however, Micron has rebuilt its business in Manassas, with a total staff of about 1,700 today and plans to continue growing.

"This is a mega-important project and there is a lot of belief in what we're doing. About three-fourths of Micron's budget has been spent in Manassas over the last couple years," said Pat Otte, site manager at the Manassas facility.

The arrival of the new workers -- most came from outside the Washington area -- has fueled residential growth in the hinterlands of Fauquier and Stafford counties, broadening the boundaries of Washington's regional economy.

Micron's corporate spending, meanwhile, has meant a surge in business for Dulles-based electrical contractor MC Dean Inc., which in turn has hired several local subcontractors to help run its business.

"Micron is a foundation industry that has a multiplying effect on the economy," said Martin J. Briley, executive director of Prince William County's Department of Economic Development. "It's been a magnet," he explained, for people, other businesses and development.