January 20, 2010
Migration to the South Slows: Texas Big Winner, Florida Big Loser
The last state population figures published by the Census Bureau before the 2010 census count becomes available showed that migration flows to high-growth Southern states such as North Carolina, Florida and Georgia have slowed significantly since the recession began in late 2007. While two of those states continue to see growth in population, Florida, for the first time in decades, saw more people move out than move in over the last year. The Sunshine State joined Nevada and California, formerly three of the largest in-migration states in the U.S., as states that have lost population recently. Texas, on the other hand, saw nearly 500,000 new residents in 2009 alone, by far the largest growth total of any other Southern state. Other figures published recently by the Census Bureau showed that from 2000 to 2009 the South had a population growth rate of 13.1 while the Midwest's and Northeast's was 3.8 percent and 3.2 percent respectively. The West grew by 13.2 percent in the last decade. Finally, according to Atlas Van Lines' 2009 migration trends report, Washington, D.C. (Maryland, W. Va., and Northern Virginia) had the highest percentage of inbound population traffic and Connecticut and New Jersey were the two largest outbound states in 2009.
Southwest Airlines Waves Market Size Rule by Serving New Northwest Florida Airport
One of the South's mid-markets' most sought after economic development coups is to land Southwest Airlines at its various airports. Shreveport and Baton Rouge in Louisiana, Columbia, S.C., Huntsville, Ala., and Knoxville, Tenn. are just a few of the South's mid-markets that do not have the necessary 1,000,000 in metro population that is generally required by Southwest to serve a market. But in the winter quarter, Southwest announced it will operate eight daily flights from the new Northwest Florida Beaches International Airport when it opens in May in Panama City, Fla. Metro Panama City's population is less than 200,000. However, the area is a popular tourist destination and the new airport is expected to draw customers from Pensacola to Tallahassee in Northwest Florida.
Southern Towns Named Finalists for American Main Street Award
Columbus, Miss., Fairmont, W.Va., Fort Pierce, Fla. and Lee's Summit, Mo. are four of only 10 Main Street communities in the nation that have been selected as semifinalists for the 2010 Great American Main Street Award. Columbus is one of the original Main Street programs in Mississippi and leads the state in downtown upper-floor housing. Columbus and the other 10 semifinalist communities have helped create more than 1,100 new businesses and nearly 4,800 new jobs, rehabbed more than 950 buildings and decreased their vacancy rates by an average of 31 percent. A national jury composed of former award winners, community development professionals, representatives from government and others involved in historic preservation will evaluate the semifinalists and select five winners on May 4, 2010 during the National Main Streets Conference in Oklahoma City.
SC Lawmakers Approve $270M in Boeing Bonds
The $270 million in bond money to help build the new Boeing airliner assembly line in North Charleston was approved by South Carolina lawmakers in January. The approval came on the first day of a 2010 legislative session that is dealing with a $563 million budget gap for the Palmetto State. The $270 million represents the most the state has ever borrowed for an industrial project. To view the e-card on SB&D's special aerospace issue in April, go to www.sb-d.com/aerospace.
So, how bad was 2009 in the Southern Automotive Corridor?
Automakers in the U.S. are most assuredly happy that 2009 is done and gone. The year marked the worst year for U.S. sales in nearly 30 years. Depending on the automaker, 2009 saw sales mixed like few times in history. For example, Chrysler sold only 931,000 vehicles in 2009, its worst performance since 1962. GM sales were down 30 percent. Japanese automakers' Nissan, Toyota and Honda were all off about the same in 2009 compared to year-before totals at about 20 percent. Contrastingly, Korean automakers that have plants in Alabama and Georgia saw substantial gains as Hyundai and Kia increased sales by eight and 10 percent respectively for the year. Overall, light vehicle sales in the U.S. totaled 10.5 million in 2009, a far cry from the 17 million just a few years ago. But going into 2010, almost all U.S. automakers were upbeat about potential sales in 2010 and 2011. Many have predicted total sales could top 13 million this year. For more information on the South’s automotive industry, go to www.SouthernAutoCorridor.com.
Akebono on Expansion Jag in the Southern Automotive Corridor
Akebono Corp., which recently acquired Robert Bosch LLC's North American Brake Division, is adding 13,000 square feet of office space at its headquarter operation in Elizabethtown, Ky. The deal will add 70 new jobs. In addition, the company is consolidating former Bosch plants in the U.S. and Mexico to Clarksville, Tenn. and another facility in South Carolina. Akebono plans to invest $13.5 million in new equipment at the Clarksville, Tenn. plant with 300 new hires. Following its Tennessee brake plant expansion, Akebono announced plans to locate a new facility in Lexington County, S.C. The $35.6 million investment is expected to generate 283 new jobs.
Louisiana Experiences Third Consecutive Year of Population In-Migration
The U.S. Census Bureau recently released population figures indicating that Louisiana experienced its third consecutive year of more people moving into the state than moving out. Prior to this three-year run, Louisiana had gone more than two decades without seeing a single year of net population in-migration. From July 2008 to July 2009, 18,100 more people moved into Louisiana than moved out. The Census count showed that the state's population increased by 40,600 from July 2008 to July 2009.
Kansas City Metro Market Hits the Jackpot
In the early winter quarter, J.P. Morgan Retirement Plan Services announced an 800-employee, 175,000-square-foot headquarters location on the Sprint Nextel Corp. world headquarters campus in Overland Park, Kan. the same week that U.S. Bank announced it was bringing a 1,100 job service center to Overland Park. The U.S. Bank project will move into the former Capital One Home Loans headquarters in Overland Park.
Toyota to Ship West Virginia Made Engines to Japan
The Toyota Motor Manufacturing plant in Buffalo, W. Va. will produce four-cylinder engines to ship to Japan. The plant had been shipping four-cylinder engines for Toyota Corollas to plants in California and Ontario. Although production has ceased at the California plant that Toyota shared with GM, the West Virginia engine plant will continue to ship the engines to Ontario and to a factory in Japan. Toyota employs more than a thousand at its plant in West Virginia.
GM Could Reopen Tennessee Assembly Operations
While 1,000 workers continue to build engines at the former Saturn GM facility in Spring Hill, Tenn., locals there are excited by the prospect that assembly operations could resume at the idled plant soon. Mark Reuss, President of GM's North American operations, announced in January that the idled plant could be restarted because the domestic automaker cannot produce popular models fast enough after it restructured and closed several assembly plants last year. GM built Saturn models at the plant for more than 15 years but has not assembled vehicles in Tennessee since the last GM Traverse model rolled off the line in 2009.
Tunica, Miss. Lands $300 Million Pipe Plant
Wilh. Schulz GMBH announced in the winter quarter that it will locate a new $300 million seamless pipe plant in Tunica, Miss. The Krefeld, Germany-based company's Mississippi division will be known as Schulz Xtruded Products (SXP) and will produce stainless steel and alloy steel seamless and welded pipe products and components. The deal is expected to create 500 new jobs. For more information on rural economic development in the South, go to www.SmallTownSouth.com.
TVA Assists in $4.2 Billion in Investment, 26,000 New Jobs in 2009
According to the Tennessee Valley Authority (TVA), the nation's largest public power utility assisted in creating 26,000 jobs and $4.2 billion in capital investments in the Tennessee Valley in 2009. TVA provides power to large industries and 157 power distributors that serve approximately nine million customers in seven Southern states.
MTU Diesel Investing $45 Million in Aiken, S.C.
MTU Detroit Diesel announced in the winter quarter it will establish a new manufacturing facility in Aiken County, S.C. MTU Detroit Diesel, a subsidiary of the Germany-based Tognum Group, anticipates that its project will require a $45 million investment and the creation of 250 new jobs. The company produces propulsion systems and energy systems based on diesel and gas engines, gas turbines and fuel cells for military, marine, rail, agriculture, heavy industrial and power generation applications.
Rural Georgia County Hit Hardest by Recession
Tiny Jenkins County, Ga. (8,500 population) saw its total compensation of wages and benefits drop by 23 percent in the last year, the largest drop of any county in the U.S. according to the U.S. Bureau of Economic Analysis. Jenkins County is located between Augusta and Savannah in southeast Georgia. The unemployment rate in Jenkins is 21.3 percent. The county has lost virtually all of its 1,700 manufacturing jobs, with the big blow coming when a window manufacturer closed recently, eliminating 600 jobs.
Bank of America Backing VW Supplier Park
At the first of the year, Bank of America agreed to lend Volkswagen $21 million to build a parts supplier park next to its $1 billion assembly plant in Chattanooga. VW wanted to finance the supplier park separate from the assembly plant in order to meet European accounting standards for operating the two developments independently. The park is expected to attract seven to nine large suppliers to VW's assembly plant, which will open in 2011. Volkswagen will pay off the Bank of America loan over the next six years with proceeds from lease payments made by parts suppliers who locate within the VW-owned park. The city of Chattanooga will lease the park land to VW, which is what it is doing with the 1,250 acres VW is building the assembly plant on. By leasing the land from the city, VW is exempt from property taxes other than school taxes for the next 30 years.
New Headquarters Set for Little Rock
Allied Wireless Communications, a subsidiary of Massachusetts-based Atlantic TeleNetwork (ATN), announced in the winter quarter it will place its headquarters in Little Rock, Ark. ATN is investing more than $200 million in the project, which will occupy a former Acxiom building in West Little Rock. The new headquarter operation will result in 200 to 250 high-wage jobs.
Lockheed Martin's Georgia Plant Still Humming with Jobs
Despite winding down F-22 production at its Atlanta area plant, Lockheed Martin executives maintain that there might not be any lost jobs at the facility after all. Work on the C-5 and C-130J cargo planes continues at a fast pace at the facility and assembly of the F-35 Joint Strike Fighter could mean 500 new jobs at the sprawling plant located just outside of Atlanta. The facility houses about 7,300 workers.
Kentucky Gov. Beshear Announces Funding for Federal Battery Lab
In the winter quarter, Gov. Steve Beshear and Cabinet for Economic Development Secretary Larry Hayes announced the approval of state funding of up to $3.5 million for the Kentucky-Argonne Battery Manufacturing Research and Development Center in Lexington. The state funds will be matched with up to $3.5 million in federal funds. In April of 2009, the Commonwealth of Kentucky, the University of Kentucky and University of Louisville announced a partnership with the U.S. Department of Energy's Argonne National Laboratory to establish a National Battery Manufacturing R&D Center in Kentucky. The Argonne-managed facility will aid nationwide efforts to develop and deploy a domestic supply of advanced battery technologies for vehicle applications to assist in securing U.S. energy independence and reduce greenhouse gas emissions. The center's major goals are to support the development of advanced lithium-ion batteries; facilitate collaborations between federal labs, universities, manufacturers, suppliers and end-users; develop advanced manufacturing technologies to reduce battery production costs; and accelerate the commercialization of technologies at national labs and universities.
TCIM Services Hiring 250 in Tulsa
TCIM Services is hiring 250 new customer service reps at its call center in Tulsa, Okla. The company operates three call centers in Oklahoma and provides services for banking, insurance and telecommunications companies.
General Atomics Expands in Mississippi
General Atomics' Electromagnetic Systems Division (GA-EMS), a manufacturer of advanced linear motors for Electromagnetic Aircraft Launching Systems, broke ground in the winter quarter on its Phase IV, 50,000-square-foot expansion at its facility in Shannon, Miss. The expansion, a $4.5 million capital investment, will accommodate the plant's role as the logistics supplier and depot-level support partner for the U.S. Navy's Gerald R. Ford aircraft carriers. The project will create at least 20 new jobs.
Hanger Orthopedic Relocating HQ to Austin
Hanger Orthopedic Group is relocating its corporate headquarters to Austin, Tex., investing $4.7 million and creating up to 250 new jobs. The company is a provider of orthotic and prosthetic patient care services with 670 patient care centers in 45 states.
Company Relocates Operations to Baton Rouge
TraceSecurity announced in January it is relocating two of the company's key divisions from Dallas and San Diego to Baton Rouge, La. The company is a provider of security compliance and risk management software and will relocate its software development and national sales departments to Louisiana's capital city. The move will result in 45 new jobs.
Seventy New Aerospace Jobs Created in Huntsville
The Boeing Co. has selected Science Engineering Services to perform disassembly, inspection and repair on AH-64D Apache helicopters in preparation for the upgrade to the AH-64D Apache Block III. The program will create approximately 70 new positions for SES in Huntsville. Southern Business & Development is publishing a special issue on the South’s aerospace industry. Go to www.sb-d.com/aerospace to view the information e-card.
Wild Turkey Investing $2.3 Million in Kentucky
Kentucky-based Rare Breed Distilling is building a new barrel storage warehouse at its Wild Turkey distillery in Lawrenceburg, Ky. The new project will add to the whiskey maker's storage capacity for its maturing whiskey products and will entail a $2.3 million investment.
Wood Pellet Manufacturer Investing $18.7 Million in Rural Virginia
Wood Fuel Developers, a startup company, is investing $18.7 million to begin wood pellet manufacturing operations in Greensville County, Va. The company is a renewable fuels firm that specializes in developing and operating wood fuel and pellet production plants to serve residential, industrial and power generation markets. The deal will create 39 new jobs. For more information on the rural South’s opportunities for your company, go to www.SmallTownSouth.com.
Fifty New Jobs Announced in Beaufort, S.C.
Plumm Design, a manufacturer specializing in customized metal designs such as countertops, facades, range hoods and other products, announced in the winter it will locate its new operations in Beaufort County, S.C. The $3.2 million investment is expected to generate 50 new jobs.
$328 Million Biometrics Center Being Built in Clarksburg, W. Va.
A new $328 million Biometrics Technology Center is scheduled to be built in Clarksburg, W. Va. The project is a joint facility of the FBI and the U.S. Department of Defense. The 360,000-square-foot structure will nearly double the space capacity of the existing 2,500-employee FBI CJIS Division campus. Once completed, the expansion will enable the FBI to consolidate all of its biometrics operations.
Electrolux, Husqvarna Moving N.A. Headquarters to Charlotte
Sweden-based appliance manufacturer Electrolux announced in the winter quarter it is moving its North American headquarters to Charlotte, creating 738 new jobs. The deal, according to Charlotte officials, is the largest headquarter announcement made in the Queen City in 25 years. Electrolux is consolidating operations in several different states to Charlotte, including those in Augusta, Ga., Cleveland, Pittsburgh and Springfield, Tenn. The company is moving its headquarters into the former First Charter Corp. facility in the University area of Charlotte. Electrolux is investing $8.3 million in the deal. In a related move, Husqvarna, the outdoor power equipment manufacturer, is bringing 160 new jobs to Charlotte. The company, which has ties to Electrolux, announced plans to move its headquarters to Charlotte from Augusta, Ga.
New Fiber Network Set for North Georgia
A 260-mile high-speed, $41 million Internet network that is being funded primarily by the federal stimulus program will link Atlanta and North Georgia with North Carolina. The project, announced in December, will reach 42,000 households and almost 10,000 businesses and connect 245 schools, universities, hospitals and government facilities in the region. About 1,000 jobs will be created during the construction of the new network.
GE to Bring Second Production Line to Louisville's Appliance Park
General Electric recently announced the company's plans to establish a high-end, energy-efficient front load washer and dryer manufacturing line at the Louisville Appliance Park. The project represents an investment of $80 million and 430 new jobs. GE's newest deal follows the company's decision in June 2009 to manufacture its new line of energy-efficient, hybrid water heaters in Louisville. That deal created 420 new jobs.
UK-Based Company Picks Rural Georgia
Firth Rixson Limited, a United Kingdom-based provider of forged metal products, announced in the winter it has chosen Midway, Ga. in Liberty County for a 200,000-square-foot, closed die forging operation that will house 200 workers. The facility will provide components for the aerospace industry.
Southeast Oklahoma Region Receives Work Ready Certification
Thirteen Southeast Oklahoma counties added an important tool in their job creation kits in the winter quarter when they received "Work Ready" recognition from the Oklahoma Department of Commerce. Commerce recognized the counties for their achievements in meeting Career Readiness Certification (CRC). One of the aspects of the CRC is that the counties must have at least an 82% high school graduation rate.
New Call Center for Northern Kentucky
DEFENDER Direct, an Indianapolis-based dealer for ADT Security Services and Dish Network, is opening a new call center in Newport, Ky. The center will house 100 workers.
Minnesota-Based Company Opening Military Distribution Center in Georgia
Nash-Finch, based in Minnesota, is opening a distribution center in Columbus, Ga. that will serve military commissaries and exchanges in the Southeast. MDV, the military division of Nash-Finch, will operate the $20 million Columbus facility.
Newell Rubbermaid Opens Plant in Tennessee
Atlanta-based Newell Rubbermaid opened its newest U.S. plant in Coffee County, Tenn. in the winter quarter. The 67,500-square-foot, $12.5 million facility houses 50 workers and produces the ink that's contained inside pens and highlighters of Sharpies and other products.
Composite Resources Announces Expansion in S.C.
Composite Resources, a producer of composite materials such as carbon, Kevlar and fiberglass in combination with traditional materials in their manufacturing processes, has announced it is more than doubling its facility in Rock Hill, S.C. The $3.5 million investment is expected to generate 50 new jobs.
Pennsylvania Pipe Company Setting Up Shop near Birmingham
Morrisville, Pa.-based Liberty Group announced in January it will invest $5 million and create 80 new jobs at a new facility in Bessemer, Ala. The company applies coatings to pipes used by the natural gas, oil, petrochemical and water and wastewater industries. The deal is expected to create 80 new jobs.
P&G Adds 150 Jobs in Augusta, Ga.
The Procter & Gamble manufacturing facility in Augusta added 150 new jobs in December, two new product lines and an investment of more than $1 million. The plant now houses about 600 workers.
"Cash for Job Creation" Program Launched in Washington County, Md.
For companies that are ready to relocate or expand, now could be an opportunity to jumpstart their business growth in Maryland. In the winter quarter, officials in Washington County, Md. (Hagerstown) approved a new incentive program called the Job Attraction and Creation Program (JAC). Incentives through the JAC program include a minimum of $1,500 cash for each job created, a reduction in permitting fees and a three-year payment program for construction excise tax. The incentives are available on a first-come, first-served basis or until the dedicated funding of $500,000 is depleted.
Hitachi Expanding Oklahoma Distribution Center
Hitachi Computer Products America is expanding its Norman, Okla. facility with the construction of a 200,000-square-foot addition. The expansion will create 75 new jobs.
New Company Opens near Richmond
Hanover Foils, a newly formed venture developed by former Reynolds Packaging employees, has located its new production facility in Ashland, Va. The company was conceived and started by former Reynolds employees who will provide the services and products needed by the customers of their former company, which closed last year. The new 80,000-square-foot facility will house 60 workers.
NCR Opens First Georgia Operation
The NCR Corp., which recently relocated its corporate headquarters from Ohio to metro Atlanta, officially opened one of three Georgia operations in December. The 360,000-square-foot "services center of excellence" opened in Peachtree City. The building houses NCR's parts headquarters, training center and customer care services. The Peachtree City facility is expected to also house more than 900 workers. NCR, which manufactures, sells and services ATMs, self-service checkout equipment and scanners, is also settling in to its new corporate headquarters in Gwinnett County, Ga. and is planning a new manufacturing plant in Columbus, Ga. Together, the company expects to employ over 3,000 workers at the three facilities.
World's First Medical Trade Center Proposed for Nashville
In the early winter quarter, Tennessee government officials and Market Center Management Company (MCMC) of Dallas announced plans to locate the world's first medical trade center on the site of the current Nashville Convention Center. Called the Nashville Medical Trade Center, the $250 million development will bring a healthcare marketplace to Nashville so that health care providers from around the world can learn about the latest in medical technology and services. MCMC has begun work on pre-leasing the proposed trade center's permanent exhibition space.
Tennessee Name 2009 State of the Year by Magazine
New Jersey-based Business Facilities magazine recently named Tennessee as its 2009 State of the Year. The ranking was based on job creation and capital invested by corporations in the 2009 calendar year. "Despite the downturn, Tennessee welcomed more than 16,700 new jobs and $3.1 billion in new capital investments in 2009" said Tennessee Department of Economic & Community Development Commissioner Matt Kisber. The magazine also cited Tennessee's commitment to the creation of clean energy jobs.
West Star Aviation Leases Hangar in Columbia, S.C.
In December, West Star Aviation announced it had leased a hangar at the Columbia Metropolitan Airport as a temporary facility until its new hangar is built at the airport in 2011. The Illinois-based company provides airframe, engine and avionics services for general aviation and business aircraft. Once completed, the new facility will house about 100 workers.
Financial Services Company Creating Over 1,000 Jobs in Charlotte
Zenta Mortgage Services is expanding its Charlotte presence significantly, creating 1,002 jobs over the next few years and investing $2.19 million. The New York-based company currently employs 263 workers in Charlotte.
New Headquarters Set for Louisville
RecoverCare, LLC has chosen Louisville, Ky., as the location for the consolidated company's new headquarters. The announcement follows the completion of a merger of Pennsylvania-based RecoverCare and Louisville-based MedaSTAT in August. Fifty-seven new jobs are being created with the deal.
Zagis USA Commissions New Textile Mill in Southwest Louisiana
In the winter quarter, Zagis USA commissioned the company's new 128,000-square-foot cotton spinning mill in Lacassine, La. The ceremony marked the end of a construction project that began with a groundbreaking in July 2008. The new facility will utilize up to 15 to 20 percent of Louisiana's cotton crop to spin yarn. The $37.5 million plant is the first cotton spinning facility built in the U.S. in decades. Forty-nine people are currently employed at the Zagis facility.
Manufacturer Expanding in Rural Mississippi
Abby Manufacturing, a fabricated structural metal manufacturer, announced the expansion of its operations into a county-owned building in Benton County, Miss. The deal will create 35 new jobs. Abby operates two other facilities in Mississippi and is a supplier to freight airline companies including FedEx. For more information on rural development in the South, go to www.SmallTownSouth.com.
TRG Hiring 240 in West Virginia
TRG Customer Solutions is adding 240 new workers at its inbound business service center in Charleston, W.Va. The company announced the expansion in December.
Risk Management Consultant Creating 430 Jobs in RTP
Risk management consultant IEM is moving its headquarters from Baton Rouge, La. to Durham County, N.C., creating 430 jobs over the next few years. IEM is a privately held company that provides risk-based solutions for measuring and managing threats to people, infrastructure and information.
Lockheed Martin Adds 20 Workers in West Virginia
Lockheed Martin Aeronautics announced in December it is adding 20 workers at its facility in Clarksburg, W.Va. The facility in Clarksburg produces subassemblies for C-130 aircraft.
Lockheed Opens Maryland Cyber Center
Defense contractor Lockheed Martin opened its multi-million dollar NexGen Cyber Innovation and Technology Center in Gaithersburg, Md. in December. With 25,000 square feet and space for 400 workers, the center will focus on cyber security and information intelligence. Lockheed is part of a new cyber security technology alliance that includes Cisco, Dell, EMC, Microsoft, McAfee and Symantec. The alliance will collaborate on systems to help provide early detection, protection and multi-layer automatic self-healing capabilities to solve existing and meet future cyber security challenges.
Auto Parts Supplier Expanding in Arkansas, Creating 250 New Jobs
Saint Jean Industries, an auto parts manufacturer and supplier, announced in January that it will expand its manufacturing plant in Heber Springs, Ark. creating about 250 new jobs with an investment of $14 million. The Heber Springs plant makes aluminum parts for the automotive industry. France-based Saint Jean said the expansion is a result of several significant orders placed with the company, specifically from ZF, a German supplier to Ford and GM.
Alabama Plant Building 4-Cylinder Sante Fe Model
In the winter quarter, Hyundai officials introduced the first Sante Fe SUV model featuring a 4-cylinder engine. The new engine is being built at the company's engine plant in Montgomery.
Korean Auto Parts Manufacturer Locating in Alabama
INZI Controls Alabama, a new company formed by Koo-Ryong Jung after acquiring Toledo Molding and Die, is setting up shop in Elba, Ala. The company will continue to provide injection and blow molded automotive parts. More than 200 new jobs are expected to be created.
GE Aviation Expanding Operations in Batesville, Miss.
Batesville, Miss. continued a good run in the winter quarter with GE Aviation announcing it is expanding its operation there. The company's Batesville plant produces composite components for the GEnx jet engine, which will power Boeing's new 787 and 747-8 aircraft. The GEnx engine is the world's only jet engine with composite components. GE Aviation will add 350 new jobs at its facility in Batesville.
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