The Waynesville-based organization operates as a social enterprise, using revenue from its medical device manufacturing and other business services to support vocational training, employment and community programs for people with disabilities and other barriers to employment. HVO’s business operations include medical device contract manufacturing, cutting, packaging and kitting, design and development, and third-party logistics and warehousing.

“All of our profits from the manufacturing currently go towards the nonprofit side,” HVO President Jay Palin said. “Our goal is to be able to support the nonprofit side without any support from the community and the support that we do get from the community is then going to be used to do the fun things. The other things, whether it's a Christmas play or field trip or whatever.”

That model has developed over more than five decades. HVO traces its roots to 1972, when the Haywood County “Sheltered Workshop” opened at the former Patton Elementary School in Canton. The effort grew out of an advisory committee that had been working since 1966 to create vocational opportunities for Haywood County residents with disabilities. Beginning with six clients, the organization eventually expanded its mission, facilities and manufacturing capabilities, changing its name to Haywood Vocational Opportunities in 1985.

“It always makes me cringe whenever people refer to us as a sheltered workshop,” said Laura William, director of employment & training at HVO. “That is what we started out as…but over the years, we've evolved into a major medical manufacturer, and we have an integrated workforce where we are able to integrate clients into the mainstream, where they are learning real work skills. They're learning interpersonal skills. They're learning life skills that are going to help them be successful in the long run.”

Williams credits HVO’s longevity to a combination of community support, leadership and relationships with business partners.

“Our community supports us,” Williams said. “We've had good leadership over the years. And I think that strong partnerships, obviously, all of that in combination, is the reason for our longevity. We kind of have a niche in what we do, with manufacturing and mission combined.”

Today, that combination makes HVO both a nonprofit service provider and a significant business operation. The organization has more than 260,000 square feet of manufacturing and warehouse space, including controlled environments used for medical manufacturing.

“We're not just a nonprofit,” Williams said. “We're also an economic engine for Haywood County and the surrounding areas. And the reason that we are able to function with limited support is because of the manufacturing. Without it, the nonprofit side couldn't exist.”

Williams said an economic impact study conducted around 2018 found HVO was contributing more than $20 million to the local economy at the time, when the organization employed roughly 350 people. HVO has since downsized, but Williams said it remains an important contributor to the regional economy.

HVO describes its workforce as fully integrated, with training individualized according to each participant’s abilities and goals. Its employment programs include vocational rehabilitation, pre-employment training, supported employment and ongoing employment support.

HVO serves as a traditional employer as well as an employer for individuals with intellectual and developmental disabilities, substance use disorders, mental illness, and people experiencing chronic unemployment. The organization also serves as a second-chance employer for people returning to the workforce after incarceration or substance use treatment.

HVO receives referrals through organizations including the N.C. Department of Health and Human Services’ Employment and Independence for People with Disabilities division, the N.C. Division of Services for the Blind, Haywood County Department of Social Services and Vaya Health. It also works with Haywood Pathways Center to connect people with employment opportunities.

 “We place people not only in the facility, but also in the community, so it really just depends on what their needs are,” said Williams. “Sometimes it might be somebody that's come to us, and maybe they learn how to tie their shoes. Or maybe they wanted to pursue a specific interest in the community in terms of work…It's really just individualized.”

Some relationships with participants extend for decades. Williams recalled one individual who worked in sanitation at a hospital for 15 years before developing dementia and returning to HVO’s day program.

“We really serve the whole person for the lifespan of the person or as long as they want our services,” Williams said.

The manufacturing side, meanwhile, has to compete on the same terms as any other supplier. About 80 percent of HVO’s business currently comes from producing drapes used in operating rooms, particularly for eye surgeries, Palin said. The organization also sees growth potential in third-party logistics, using its warehouse capacity to store products, fulfill customer orders and ship them directly. Quality requirements are especially stringent in medical manufacturing.

Palin said the integrated workforce can be an asset to those quality standards.

“The clients, most of them, even though they have some other disabilities, they're really attentive to detail in those cases,” Palin said. “Some of them are on our safety team. Some of them are on our quality team.”

As HVO looks toward its next chapter, leaders see opportunities for growth on both sides of the organization. Williams wants to expand Pre-Employment Transition Services, which works with students with disabilities in local high schools to build job readiness and prepare for life after graduation. 

“We go into five different high schools within the community and serve classrooms, providing pre-vocational skills, so that's an area of growth I would like to see us expand on,” Williams said. 

Palin sees similar growth potential on the business side. HVO currently generates about $18 million in revenue, he said, with leadership forecasting annual revenue of roughly $24 million to $25 million within five years, fueled by existing customers and expansion of third-party logistics.

That growth matters because manufacturing revenue helps fill gaps left by nonprofit program reimbursement. Williams said reimbursement rates for some services do not cover HVO’s actual costs.

“Manufacturing has to supplement that,” Williams said.

Last year, HVO served about 180 people, compared with an average of roughly 150 annually over the previous five years. Of those served last year, 109 were students in Haywood County Schools, and HVO placed about 12 people in community employment.

For Williams, those numbers illustrate why HVO’s nonprofit mission and its role as an employer and manufacturer cannot easily be separated.

“The people we serve are an important part of the workforce and the economic fabric of our community,” Williams said.