May 21, 2021
Nestled in the foothills of rural northern Georgia, you’ll find Dahlonega—a small town of about 7,000 people. While the town may be known for its picturesque vineyards and as the site of the country’s first gold rush, the reality for many rural communities across Georgia just like it is stark.
Rural Georgia is losing its workforce and population to the more populous areas of the state which is pushing the rural parts of the state into crisis. The Georgia Chamber of Commerce estimates that 7 in 10 rural counties across the state will lose population in the next 10 years or remain at a zero-growth rate with 84 counties losing jobs unless major changes occur. For towns like Dahlonega where nearly a third of residents live below the poverty line, ensuring good, quality jobs remain accessible for local residents is critical in curbing these realities. And that’s just what local pergola manufacturer, StruXure Outdoor is accomplishing.
StruXure is a leading manufacturer of high-quality adjustable, aluminum pergolas and related products. The company was started in 2008 by former middle school teacher, Scott Selzer, who operated a remodeling company during the summer months while teaching. In 2011, Selzer set out to design and manufacture a better pergola to improve outdoor spaces when he couldn’t find one on the market. Fast forward to 2021, the company is now one of the fastest growing privately held companies in the United States. But to achieve that growth, it needed the right kind of capital to support it.
A Growth Story Supported by Rural Investment
In 2019, Advantage Capital made an investment in StruXure in connection with the Georgia Agribusiness and Rural Jobs Act—a rural economic development tool which is intended to improve access to capital for small businesses and stimulate economic expansion in rural parts of the state that have not seen the same kind of economic prosperity urban areas have in recent years. For companies like StruXure, the program offered a lifeline of capital during early growth stages when it was unable to access financing through a traditional banking partner, allowing it to keep up with momentum and demand for its products.
As StruXure’s growth accelerated, it needed new equipment to bring its powder coating operations (a metal finishing process used to color and strengthen metal) in house, instead of outsourcing the process. Advantage Capital’s investment provided the financing StruXure needed to make the purchase and rev up operations. The move enabled StruXure to add jobs, save on production costs and enter into new markets.
Bringing the powder coating in house further proved beneficial as the company experienced record sales in 2020. Over the past year, demand for its products has skyrocketed as consumer spending on home improvement projects has increased. As a result, the company has nearly doubled its workforce, and it anticipates continued hiring in the near term. Additionally, to keep up with heightened demand, the company has reentered into its relationship with its previous powder coating partner, helping to spur further local economic activity.
Strong Business Growth Comes with Strong Impact
With 2020 being a high growth year for StruXure, the company is doing its part to ensure good jobs for local residents remain in Dahlonega. From significant holiday bonuses to a 401(k) plan with a 6 percent match, the company offers its employees the opportunity for greater financial autonomy through wealth accumulation opportunities.
Not only are these jobs good, but they are accessible. Many entry- level and full-time jobs are available to those with a high school diploma or equivalent, helping to expand opportunities for the local workforce. StruXure also works with the local high school, providing young people with their first jobs – the kind of good quality jobs that encourage young people to stay in the area. These kind of hiring programs set people up for career growth early on, providing them with skills necessary to grow and achieve greater mobility.
While StruXure’s overall success has led to its exit as an Advantage Capital portfolio company, we are thrilled to be able to share this fantastic story of how targeted, intentional investments in traditionally overlooked geographies can not only grow a strong business but have a major impact on the surrounding community and local workforce.
The investments, portfolio companies and recommendations listed on this website represent only a sample of companies that have received investment capital from Advantage Capital-related entities. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities highlighted herein or contained in any other information provided by Advantage Capital. Past performance is no guarantee of future results. For a full list of companies, please click here.
