Top Deals & Hot Markets 2011

Outstanding Economic Development Performances in One of the Best Years Ever in the South

By Lee Burlett

Last year we started this column like this: "If someone polled the 3,500-some-odd economic development practitioners in the South about how tough 2009 was for landing significant job generating projects, the vast majority would probably answer that it was the most challenging year of their careers. Few would report that 2009 was "an outstanding year for us."

And now, just a year later, a massive increase in projects propels the 2011 SB&D 100 to its best year since 1998 and the second-best year since the SB&D 100 ranking was first published in 1994.

Big deals were almost everywhere in the South in calendar year 2010 and some states and markets had record years including the D.C. region, Austin, Charlotte, New Orleans, Lake Charles, La., Augusta-Aiken, Ga./S.C., as well as the states of Louisiana and North Carolina, among others. 

In short, 2009 was the worst project total (367) in the 18-year history of the SB&D 100 followed by the second-best year in project totals (594) in SB&D 100 history.

So, who benefitted from this huge surge in projects in 2010? The following "2011 Top Deals & Hot Markets" report reveals the top states and markets that excelled among their peers in what will be remembered as a magical year in economic development in the South for quite some time.

STATE DIVISION

State of the Year: Louisiana, 495 Points
No. 1 in Points per Million Residents

You probably will have to go back to Texas' 1,245 point performance in the 1997 SB&D 100 to find a year where a state simply went off the charts in SB&D 100 points. That is the only state performance we can even compare Louisiana's incredible year of 2010 to. And when we say "only," we mean it.

To give you an idea of how strong Texas' year was in calendar year 1996, well, they posted 665 points this year and that was an excellent score. To post 1,245 points is incredible. That year, interestingly enough, Dallas-Fort Worth -- if it were a state -- would have had the second-best point total of any state in the South.

Louisiana's 495 points in this year's "100" is equally if not more impressive than what Texas did in calendar year 1996. For one, with 115 points per million residents (PPM), Louisiana's per capita score topped Texas' in the '97 "100." In fact, no state has even sniffed the 100-point mark in PPM and Louisiana blew past that this year.

Louisiana turned eight deals of $300 million or more in investment and two of those were $1 billion or more. No state did that this year. It also landed 71 big projects of $30 million or more in investment and/or 200 or more jobs.

The state had some impressive job-generating projects such as Blade Dynamics and Nucor Steel, but it was the sheer number of investment deals that took Louisiana to the top. Oil and gas and the chemical industry just went nutty-nut in 2010 and Louisiana was the beneficiary with 58 huge capital-intensive projects of $30 million or more.

Notable Louisiana Deals in 2010

Nucor Shintech Lake Charles Cogen

Jobs 375 n/a 210

Investment $1.5 Billion $1 Billion $820 Million

Honorable Mention: North Carolina, 460 Points
No. 3 in Points per Million Residents

Any other year and North Carolina would have taken the top spot in this ranking. With 460 points, N.C. rebounded exceptionally well from a disappointing 150 point total last year. We are not even sure the folks in North Carolina realize how well they did in 2010. Maybe they will realize it now. It was just an outstanding year for the Tar Heel State.

Notable North Carolina Deals in 2010

American Express Facebook Siemens Energy

Jobs 100 42 825

Investment $1.3 Billion $450 Million $135 Million

Honorable Mention: Kansas, 165 Points
No. 2 in Points per Million Residents

This is the second consecutive year Kansas has earned an HM in the SB&D 100. That's a first. They are really doing a good job in this Southern border state and the Kansas City, Kan. side is leading the way. With 4,500 jobs, Cerner's Kansas City, Kan. headquarter project was the No. 1 job-generating deal in the South in 2010.

Too bad Southern Business & Development is dropping Kansas, along with Missouri and Maryland next year in our coverage of economic development in the South. We want to match up SB&D with the states that we report on in The Randle Report (www.RandleReport.com). The inclusion of Kansas, Missouri and Maryland was a deal we struck with the Southern Economic Development Council years ago. But they practice economic development differently in those three states than in the states that are typically associated with the South. But apparently Kansas doesn't. They are rocking and this year's No. 2 PPM score proves it.

Notable Kansas Deals in 2010

Cerner Corp. Hawker Beechcraft US Bank

Jobs 4,500 4,000 1,174

Investment $170 Million $232 Million $21 Million

Honorable Mention: Tennessee, 300 Points
No. 4 in Points per Million Residents

Tennessee was on a roll the last two years, sharing "State of the Year" honors with Louisiana in 2009 and 2010. This year they dropped down a little, although with a year that was surprisingly good considering they elected a new governor in November. We haven't gotten to know Gov. Bill Haslam yet or the new chief of economic development in the state, Bill Hagerty. But from what we've heard, they are off to a fast start.

Notable Tennessee Deals in 2010

Amazon.com Electrolux Jackson National Life

Jobs 1,251 1,200 723

Investment n/a $190 Million n/a

Honorable Mention: South Carolina, 205 Points
No. 5 in Points per Million Residents

South Carolina continues to impress us with lots of projects, many of which don't make our SB&D 100 lists because they are lower than our thresholds of $30M and/or 200 jobs. After some tumultuous years under former Gov. Mark Sanford, the South Carolina Department of Commerce is now back in its rightful place as one of the best performing state agencies in the South.

Notable South Carolina Deals in 2010

First Quality  ZF Group  Amazon.com

Jobs 1,000 900 1,249

Investment $1 Billion $350 Million $100 Million

Honorable Mention: Texas, 665 Points
No. 11 in Points per Million Residents

Its "Points per Million" residents score is not in the top 10, but you have to recognize Texas this year for leading the South in points and projects and increasing its point total from 415 last year to 665. By a large margin, Texas is leading all U.S. states in job gains.

Notable Texas Deals in 2010

Samsung JBS Holdings   Facebook

Jobs 500 369 200

Investment $3.6 Billion $210 Million $150 Million

MEGA-MARKET DIVISION

Mega-Market of the Year: Baltimore-D.C.-Northern Virginia-W. Va., 345 Points

This is the second consecutive year that the D.C. region has been named "Mega-Market of the Year" (over 2 million in population). With almost 10 million people, the region that surrounds D.C. is by far the largest in the South. And with 47 big projects and 345 points, the D.C. region posted the second-best point total in this division's history. But instead of Northern Virginia dominating the Washington region's deals like it normally does, this year it was the Baltimore side that dominated the D.C. region. That's a first and may be a sign of things to come.

Notable Baltimore-D.C.-Northern Virginia-W. Va., Deals in 2010

Defense Info Systems Energy Answers   U.S. Cyber Command

Jobs 4,380 180 1,000

Investment $370 Million $1 Billion n/a

Honorable Mention: Dallas-Fort Worth, 155 Points

Nice comeback by D/FW this year from an all-time low of 65 points in calendar year 2009. This Texas market is a perfect example of what occurred in 2010, with markets all over the South almost tripling their point totals from the year before.

Notable Dallas-Fort Worth Deals in 2010

med fusion  Bell Helicopter Caris Life Sciences

Jobs 900 n/a 700

Investment $12 Million $256 Million n/a

Honorable Mention: Houston, 135 Points

Like D/FW, Houston weighed in with 22 big projects and its point total rose from 80 points last year to 135. Houston is consistently in the top 3 in this category and won "Mega-Market of the Year" two years ago.

Notable Houston Deals in 2010

Deer Park Refining Sysco Corp.  NA Industries

Jobs n/a 1,500 60

Investment $753 Million n/a $100 Million

MAJOR MARKET DIVISION

Co-Major Market of the Year: New Orleans, 155 Points

What an outstanding year for the New Orleans region, leading the way for Louisiana to be named "State of the Year." Last year may have been New Orleans' finest in its economic development history with some really huge projects like Nucor. New Orleans is the South's best example of an economic comeback maybe ever, six years removed from the devastation of Hurricane Katrina.

Notable New Orleans Deals in 2010

Nucor  Blade Dynamics  Globalstar

Jobs 375 400 375

Investment $1.5 Billion $13 Million n/a

Co-Major Market of the Year: Charlotte, 155 Points

Here is another Southern market that more than tripled its points from last year. Charlotte was recognized with an "Honorable Mention" last year with 50 points. This year, it garners co-"Major Market of the Year" with 155 points. The slow comeback of the financial services sector has helped The Queen City.

Notable Charlotte Deals in 2010

Siemens Energy  Hewitt Associates   Fifth Third Bancorp

Jobs 825 463 250

Investment $135 Million n/a $2 Million

Honorable Mention: Baton Rouge, 150 Points

This is the first year Louisiana's capital city has competed in the major market division since its population rose above 750,000 in 2010. And with 21 big deals and 150 points, it almost won "Major Market of the Year" in its first try.

Notable Baton Rouge Deals in 2010

Shintech Louisiana  KPAQ    Exxon Mobil

Jobs n/a 200 n/a

Investment $1 Billion n/a $362 Million

Honorable Mention: Austin, 95 Points

Austin had a great year, pulling in some of the sexiest projects in the entire South and the No. 1 investment deal and "Deal of the Year" for 2011 in Samsung. Texas' capital city is a magnet for relocating California companies.

Notable Austin Deals in 2010

Samsung Facebook    SunPower

Jobs 500 200 450

Investment $3.6 Billion $150 Million $10 Million

Honorable Mention: San Antonio, 95 Points

San Antonio was just as hot as Austin in 2010. The variety of industry sectors announcing projects in San Antonio is second-to-none in the major market division with services and manufacturing nicely mixed in.

Notable San Antonio Deals in 2010

Allstate Insurance Kohl's Texas Industries

Jobs 600 1,065 40

Investment $11 Million n/a $350 Million

Honorable Mention: Raleigh-Durham, 85 Points

This market is a regular in this spot. It did add 35 points to its total from last year and as always high technology rules in the Triangle. The one big automotive deal was a nice touch.

Notable Raleigh-Durham Deals in 2010

Cree Merck & Co. AW North Carolina

Jobs 244 310 250

Investment $392 Million $200 Million $70 Million

Honorable Mention: Greenville-Spartanburg, 80 Points

The Upstate had an exceptional year, rivaling some much larger Southern markets. One of the largest projects in the South was announced in the Upstate by First Quality ($1 billion investment, 1,000 jobs), which will produce paper products.

Notable Greenville-Spartanburg Deals in 2010

First Quality Enterprises ZF Group  Proterra

Jobs 1,000 900 1,300

Investment $1 Billion $350 Million $68 Million

MID-MARKET DIVISION

Mid-Market of the Year: Lake Charles, La., 95 Points

When the oil, gas and chemical industries are making money hand-over-fist, places like Lake Charles rock with big investment deals. Securing its first "Mid-Market of the Year," Lake Charles saw about $2 billion invested in its Southwest Louisiana regional economy. Some small Southern states don't see $2 billion in corporate investments in a year.

And with 95 points, Southwest Louisiana would have ranked very high in the major market division. The region is also seeing some activity in the aerospace sector as a result of the Chennault International Airport, which is a major aerospace cluster site.

Notable Lake Charles Deals in 2010

Aeroframe Services Lake Charles Cogen  Conoco Phillips

Jobs 300 210 n/a

Investment n/a $820 Million $187 Million

Honorable Mention: Augusta-Aiken, Ga./S.C., 65 Points

This metro has been on a roll of late, but it is really on one now because both sides of the border are performing at the same time. Usually, either Aiken has a good year -- and it has had many -- or Augusta has a good year. Just not at the same time. This year, though, both contributed.

Notable Augusta-Aiken, Ga./S.C. Deals in 2010

MTU Detroit Diesel Convergent ER   Teleperformance MCA Sign

Jobs 250 400 400 240

Investment $45 Million $6 Million $4 Million $12 Million

Honorable Mention: Huntsville, 60 Points

Will there ever be a SB&D 100 without Huntsville, Ala. being recognized? We can't remember a year when it didn't win either "Mid-Market of the Year" or earn an "Honorable Mention." Even in a down year for the North Alabama dynamo and Alabama in general, Huntsville makes the all star team.

Notable Huntsville Deals in 2010

Dynetics  Northrop Grumman   Raytheon

Jobs 350 300 300

Investment $52 Million n/a $74 Million

Honorable Mention: Little Rock, 50 Points

Little Rock is back after a brief stint off of the mid-market list. Since 2008, the capital city of Arkansas has earned an "Honorable Mention" every year except last year. You can't argue with three out of four.

Notable Little Rock Deals in 2010

Dillard's Southwest Power Tool   Welspun Corp.

Jobs 300 200 230

Investment n/a $62 Million $30 Million

SMALL MARKET DIVISION

Small Market of the Year: Rocky Mount, N.C., 25 Points

The counties of Nash and Edgecombe, which make up the Rocky Mount market, had a great year, earning 25 big points in the small market category. That was five points ahead of a large group of small and rural markets in the South with 20 points, a score good enough to give Rocky Mount the "Small Market of the Year" award for 2011.

Notable Rocky Mount, N.C. Deals in 2010

Cummins Engine Jade Apparel    West Corp.

Jobs 210 250 250

Investment n/a $2 Million n/a

Honorable Mention: Auburn-Opelika, Ala., 20 Points

Auburn-Opelika landed two important projects for their local economies and one of those was a significant deal by GE Aviation.

Notable Auburn-Opelika, Ala. Deals in 2010

GE Aviation   AFNI

Jobs 200 500

Investment $50 Million n/a

Honorable Mention: Bowling Green, Ky., 20 Points

This small market in Kentucky consistently performs well, particularly when the automotive industry is expanding. Last year was no exception. Look for it again on this list next year as GM announced in 2011 that it is expanding its Corvette assembly plant in Bowling Green.

Notable Bowling Green, Ky. Deals in 2010

Fruit of the Loom  SCA Personal Care

Jobs 600 65

Investment $47 Million $44 Million

Honorable Mention: Monroe, La., 20 Points

Monroe is another small Southern market that is performing consistently. Last year Monroe was our "Small Market of the Year," landing a slew of big deals. Just about every Louisiana market has been cited in this "100;" Might as well add one more.

Notable Monroe, La. Deals in 2010

Chase Home Finance  Sawgrass Storage Sawgrass Storage

Jobs 300 n/a n/a

Investment n/a $240 Million $41 Million

Honorable Mention: Columbus, Miss., 20 Points

Columbus has had some monster years with some real big buffalo deals like PACCAR and Severstal. This is not one of those years, but it was good enough to rank near the top of the small market category as a result of KiOR's project. One big deal, 20 big points.

Notable Columbus, Miss. Deals in 2010

KiOR

Jobs 400

Investment $500 Million

Honorable Mention: Tunica, Miss., 20 Points

Ditto for Tunica. Mississippi lured some huge corporate investments and nearly all of them found small markets of the state to their liking. All it takes some years is one giant deal in this category to earn an "Honorable Mention."

Notable Tunica, Miss. Deals in 2010

Schulz

Jobs 500

Investment $300 Million

Honorable Mention: Senatobia, Miss., 20 Points

Outside of Texas no Southern state could match Mississippi's success in new clean tech deals in 2010. Senatobia got one that was led by our good friend Dennis Cuneo, who writes occasionally for The Randle Report (www.RandleReport.com). 

Notable Senatobia, Miss. Deals in 2010

Twin Creeks Tech

Jobs 512

Investment $175 Million

Honorable Mention: Oxford, Miss., 20 Points

Oxford is the last of the four small Mississippi markets that earned an "Honorable Mention" this year. One thousand jobs from one project will be huge for this college town. 

Notable Oxford, Miss. Deals in 2010

Olin Corporation

Jobs 1,000

Investment $100 Million

Honorable Mention: Victoria Tex., 20 Points

Victoria landed a huge deal in Caterpillar. Caterpillar's "Southern strategy" of putting virtually every one of its new North American plants in the right to work South has flown under the labor issue radar when compared to Boeing's new strategy of doing the same with its Charleston, S.C. plant and all of the ruckus that has caused. 

Notable Victoria, Tex. Deals in 2010

Caterpillar

Jobs 513

Investment $150 Million

SPECIAL RECOGNITION: St. James Parish, La.: 6 Deals, 55 Points

Each year we recognize a city, county -- or in this case a parish in Louisiana -- that would go unnoticed because it is located in a metro region. St. James Parish, La. is this year's "Special Recognition" winner. Located west of New Orleans, St. James Parish accounted for 55 of the Crescent City's 155 points. The big deal was Nucor, but there were several more in St. James Parish. It was just a banner year for St. James.  

Notable St. James Parish, La. Deals in 2010

Nucor Steel Plains Marketing Motiva Enterprises NuStar Logistics

Jobs 375 n/a n/a n/a

Investment $1.5 Billion $150 Million $113 Million $100 Million

Top 10 Deals of 2010

Project	Location	Jobs	Investment
1. Samsung	Austin, Tex.	500	$3,600
2. Cerner	Kansas City, Kan.	4,500	$170
3. Defense Info Systems	Fort Meade, Md.	4,380	$370
4. Nucor Steel	St. James, La.	1,500	$1,500
5. Hawker Beechcraft	Wichita, Kan.	4,000	$232
6. Ford Motor Co.	Louisville, Ky.	1,800	$400
7. First Quality	Anderson, S.C.	1,000	$1,000
8. Gulfstream	Savannah, Ga.	1,000	$500
9. Austal USA	Mobile, Ala.	2,000	$160
10. Hyundai Transformers	Montgomery, Ala.	1,000	$125

* Investment in millions

Top Deals by Industry Sector

Deal of the Year: Samsung -- Austin, Tex.
Automotive Deal of the Year: Ford Motor Co. -- Louisville, Ky.
Automotive Supplier Deal of the Year: ZF Group -- Laurens, S.C.
Clean Tech Deal of the Year: Twin Creeks Technologies -- Senatobia, Miss.
Logistics Deal of the Year: Macy's -- Martinsburg, W.Va.
Headquarters Deal of the Year: Jackson National Life -- Franklin, Tenn.
Aerospace Deal of the Year: Hawker Beechcraft -- Wichita, Kan.
Defense Deal of the Year: Defense Information Systems -- Fort Meade, Md.
Food Processing Deal of the Year: JBS USA Holdings -- Cactus, Tex.
Medical Devices Deal of the Year: Becton, Dickinson -- San Antonio, Tex.
Financial Services Deal of the Year: Regent Asset -- Overland Park, Kan.
Customer Service Deal of the Year: Ryla -- Kennesaw, Ga.
Pharmaceuticals Deal of the Year: Caris Life Sciences -- Irving, Tex.
Healthcare Deal of the Year: Cerner -- Kansas City, Kan
Advanced Manufacturing Deal of the Year: Gulfstream Aerospace -- Savannah, Ga.
Renewable Energy Deal of the Year: Confluence Solar -- Clinton, Tenn.
Agribusiness Deal of the Year: Pilgrim's Pride -- Suwanee Co., Fla.
Data Center Deal of the Year: American Express -- Guilford Co., N.C.
Biotech Deal of the Year: Merck -- Durham Co., N.C.
Biofuels Deal of the Year: KiOR -- Columbus, Miss.
IT Deal of the Year: IBM -- Columbia, Mo.
General Manufacturing Deal of the Year: Electrolux -- Memphis, Tenn.
Heavy Manufacturing Deal of the Year: TIE: Nucor Steel -- St. James, La./Austal USA -- Mobile, Ala.
Start-Up Deal of the Year: Soladigm -- Olive Branch, Miss.