January 23, 2012
For complete coverage of economic development in the South, go to www.RandleReport.com or www.SB-D.com. For full coverage of the South's automotive industry, go to www.SouthernAutoCorridor.com. For complete coverage of economic development in the rural South, go to www.SmallTownSouth.com.
Texas, Louisiana add most jobs in the last five years
Only nine U.S. states added jobs in the last five years. At the top of the list is Texas, with 451,100 jobs added in the last five years. Louisiana placed second with 57,000 jobs added. Oklahoma is the fifth-leading job generating state in the last five years with 23,000 additional jobs. No other Southern state added jobs over the last five years.
Nucor's DiMicco says skills gap excuse "hogwash"
In the winter quarter, Nucor CEO Dan DiMicco addressed the audience of the annual meeting of the Charlotte Chamber of Commerce. In his presentation he called the idea of a skills gap between workers' training and available jobs "complete hogwash." DiMicco said that companies need to create jobs for the skills that workers already have. He said that manufacturing is the top priority now as the nation recovers from the 2007-2009 recession.
Mercedes to build new North American assembly plant
In mid-January Germany-based Manager Magazin reported that Daimler will build a new Mercedes-Benz assembly plant in the U.S. or Mexico that will be operational by 2017 or 2018. The plant will help Mercedes meet its global sales target of 2.7 million units by 2020. Part of Daimler's goal is to beat sales of rivals BMW and Audi to become the No. 1 manufacturer of luxury automobiles by 2020. According to the publication, the new Mercedes plant will build the next generation A-class model with partner Nissan. In January, Mercedes and Nissan entered into a partnership to build engines at Nissan's plant in Decherd, Tenn. Those engines will be put into Infiniti models and the Mercedes C-class. The C-class is scheduled to be built at the Mercedes plant in Alabama in 2014. In 2011 Mercedes sold 1.26 million cars, a figure that was 120,000 less than Germany's BMW brand. BMW operates its only North American plant in Greer, S.C. and Mercedes operates its only North American plant in Vance, Ala.
Houston is on a big-time roll
Barton Smith, a professor emeritus of economics at the University of Houston, told an audience at a luncheon sponsored by the Greater Heights Area Chamber of Commerce in January that Houston is driving Texas' surging economy. Smith cited Houston's strong growth in manufacturing and oil and gas production and exploration. He said that two-thirds of Houston's growth is sourced from oil and gas and that 100,000 jobs -- a growth rate of 11 percent -- were created in the Houston area in 2011. There were 204,500 new jobs created in all of Texas in calendar year 2011. Houston is currently the fastest-growing metropolitan area in the country and San Jose, Calif. is the second-fastest growing.
Venture capital in Austin surged in fourth quarter 2011
Venture capital invested into Austin-based companies grew to $219 million in the fourth quarter of 2011, according to a survey by PricewaterhouseCoopers and the National Venture Capital Association. The total was a 508 percent increase over fourth-quarter 2010.
Texas job totals exceed pre-recession peak
In December, jobs in Texas increased by 20,200, pushing payrolls to a total of 10.65 million. That figure is slightly higher than the all-time record of 10.64 million that was reached in August 2008. Nationally, payrolls remain more than 6 million jobs below their January 2008 peak of 138 million. Texas added about 205,000 jobs in calendar year 2011 to reach the all-time high of employment in the state. Yet, its unemployment rate was at 7.8 percent in December, meaning the state's population has grown significantly since 2008.
How bad was it?
Here are just a couple of facts about The Great Recession that we have found. This latest recession saw a job loss total of six percent. In the previous recession of 2001, the figure was two percent. In November, 43 percent of the unemployed in the U.S. had been looking for work more than six months. In the oil bust of 1983, the percentage of people looking for work for six months or more was just 23 percent.
Whole Foods expanding Austin headquarters
Whole Foods is adding on to its crowded headquarters in downtown Austin. The retail chain is building a new 20-story office building next to its current headquarters. The new 325,000-square-foot building will house hundreds of new Whole Foods corporate employees in the coming years. The company expects to more than double its headquarters staff to about 1,300 once the project is completed. Currently, about 650 employees work at the grocer's 200,000-square-foot headquarters building in Austin.
Tennessee unemployment hits 3-year low
Manufacturing and construction are leading the job generation charge in Tennessee as the state hit a 3-year unemployment rate low of 8.7 percent in December. Tennessee added 63,500 jobs in December with strong growth coming from the automotive manufacturing sector. The state has seen its unemployment rate drop by more than a point since September 2011.
Kentucky's unemployment rate drops to 9.1 percent; lowest in three years
Kentucky also earned its lowest unemployment rate in December when it dropped to 9.1 percent. That rate is the lowest since it was 8.5 percent in December 2008 and more than a percentage point lower than the rate a year ago, which was 10.3 percent. Kentucky added 31,000 jobs in 2011 and has gained about half of the 120,800 jobs lost in the recession. Like Tennessee, the automotive industry is leading job generation in Kentucky.
Alabama's unemployment rate drops to 8.1 percent
Alabama joined in the fray of falling state unemployment in the South. Alabama's rate fell to 8.1 percent in December from 8.7 percent in November.
Florida's unemployment rate falls below 10 percent for first time in almost three years
Florida's unemployment rate fell below 10 percent for first time in almost three years in December. Florida's rate hit 9.9 percent in December, the lowest since April 2009 when it was 9.7 percent. Over 140,000 new jobs were created in Florida in calendar year 2011.
Jobless rate falls for third consecutive month in Texas
Texas added 20,200 jobs in December dropping the state's unemployment rate to 7.8 percent. Manufacturing added 25,200 jobs in Texas in 2011 and 204,500 jobs were created in the 2011 calendar year.
Italian company to open plant in rural N.C.
Lubrimetal, an Italian-owned company that produces lubricants, announced it will build a new plant in Caldwell County, N.C. The facility will house 19 workers.
Health shake maker to hire 50 in N.C.
Origin Food Group, a maker of yogurt-and-fruit shakes, is opening a facility in Statesville, N.C. The $7 million project will create 50 jobs.
Caiman Energy expanding West Virginia operations
Caiman Energy announced in the winter quarter it is expanding its operations in West Virginia's Northern Panhandle. The company is building a second cryogenic natural gas processing plant in Marshall County. By 2014, Caiman will have invested $1.3 billion in West Virginia.
AW North Carolina passed on the incentives
AW North Carolina announced it would invest $100 million at its automotive transmission plant in Durham, N.C. in 2010. The deal created 360 new jobs. What was missing from the deal was there were no incentives that went to AW to expand its plant. That's because management didn't ask for any incentives. Officials with the company said they never requested incentives because the decision to expand had already been made by its parent company in Japan, therefore no other sites were in competition for the project. AW is expanding as it starts up production of its first six-speed automatic transmissions for the Toyota Camry that is made in Georgetown, Ky.
Is Texas stealing jobs from California?
In a report on Austin's Fox7 Web site, Dave Porter of the Greater Austin Chamber of Commerce defending the notion that Austin is stealing jobs from Texas. Since 2004 Austin has seen 61 companies relocate from California to the Texas capital city. "We aren't stealing jobs from California. California is driving business out of its state with high cost of doing business and anti-business attitude from leadership. What happens is companies reach a certain size in California, where they realize it's too expensive to expand, so they look at other places and Austin is usually one of those places," Porter said.
Nashville-based Asurion to create jobs in Atlanta
Nashville-based technology company Asurion announced in January it will open a software development center in Atlanta's Buckhead. The project will create 100 new jobs initially with a chance to grow to 250 over the next few years.
Aviation company adding 25 jobs in Winston-Salem
Piedmont Propulsion Systems is expanding its operations at the Smith Reynolds Airport in Winston-Salem. The company is adding 25 jobs to its payroll.
PowerSecure adding 100 to N.C. workforce
PowerSecure International, an energy services company in Wake Forest, N.C., is adding 100 employees in the Triangle. The company, which currently employs 536, makes heavy equipment and energy-saving technologies.
Chattanooga paying to attract talent to downtown
The Lyndhurst Foundation has started a program to pay up to $11,250 to qualified "geeks" for moving to one of Chattanooga's historic downtown neighborhoods. The program is designed to attract programmers and network specialists and other technically-talented workers to downtown Chattanooga. Recently Chattanooga launched a similar program called ArtsMove that drew two dozen artists to the Southside part of the city.
Georgia solar farm project gets go-ahead
A $90 million solar farm being developed in rural Georgia by former Tennessee Gov. Phil Bredesen and Nashville music executive Steve Ivey, among others, received approval in the winter from the Georgia Public Service Commission. The Simon Solar Farm will produce 30 megawatts of power that will be sold to Georgia Power. The project is being built in Social Circle, Ga.
Anadarko to build second tower near Houston
Anadarko Petroleum is breaking ground on a second office tower at its headquarters in The Woodlands, Tex. The 31-story building will be ready in 2014 and can accommodate about 1,700 workers. Anadarko employs over 2,300 workers at its 1 million-square-foot headquarters in The Woodlands.
Xiolink hiring 15 at St. Louis data center
Xiolink has completed phase two of its data center in downtown St. Louis. The project will lead to 15 more workers at the facility.
Kimberly-Clark to locate distribution center in Mississippi
Kimberly-Clark announced it will locate a new distribution center in Southaven, Miss., south of Memphis. The center will distribute medical devices and products. The project will create 100 new jobs.
Software maker adding 30-40 jobs in Durham, N.C.
Bronto Software is adding between 30 and 40 jobs at its headquarters in Durham, N.C. Bronto serves retailers and other companies in e-commerce.
Yarn manufacturer to locate facility in rural Eastern N.C.
Spinrite Services, a manufacturer of craft yarns, is locating a plant in Beaufort County, N.C. The Canadian-based company will invest $9.1 million in the project that will create 90 jobs.
Oil recycling facility going to Port of Tampa
NexLube, a Florida-based company, will build an $80 million oil recycling facility at the Port of Tampa. The project will create 100 new jobs.
Call center in Birmingham will bring 250 jobs
Chicago-based Acretive Health is locating a call center in downtown Birmingham. Birmingham successfully competed with Nashville and Pensacola for the project, which will create a minimum of 250 jobs.
BASF moving plant science division headquarters to Research Triangle Park
Germany-based BASF is moving its plant science division headquarters from Germany to North Carolina's Research Triangle Park. The deal was struck because most of Europe is hostile to the use of genetically modified crops. The relocation will move 123 workers from Germany to North Carolina, where BASF currently employs about 200 people.
Direct Energy relocating HQ from Toronto to Houston
Direct Energy, an electricity and natural gas retailer, announced in the winter it will relocate its headquarters to Houston from Toronto. The company has more than 500 employees in Houston and 6,000 in North America.
TRG to create up to 300 new jobs in West Virginia
TRG, a business process outsourcer of customer management solutions and technologies, announced in the winter it will create 300 jobs at three different locations in West Virginia. TRG already employs about 1,000 workers at three centers in Charleston, Beckley and Elkins.
Window and door maker to open $120m Louisiana facility
JELD-WEN, a maker of windows and doors, announced it will open a $120 million plant in Winn Parish, La. The rural Louisiana plant will house 75 workers.
Two auto parts companies expanding in Tennessee
Two announcements from parts suppliers are adding jobs in Tennessee. Century Mold is expanding its Shelbyville facility. The $4.2 million project will add 58 jobs. Topre America also announced it is opening a manufacturing operation in Nissan's massive Smyrna, Tenn. assembly plant. That deal will generate 25 jobs. Topre also operates a facility in Cullman, Ala.
Report: Florida Gov. Rick Scott wanted port deal with Obama for Tampa-to-Orlando high-speed rail project
Fortune Magazine, in a story titled "The Education of Florida governor Rick Scott," reported that Scott would have accepted the Tampa-to-Orlando high-speed rail project if President Obama would have cut a deal to dredge the Jacksonville and Miami ports for post Panamax ships. Obama and Transportation Secretary Ray LaHood wouldn't bite so Scott snuffed out the high-speed rail project. From the Fortune story: "He (Scott) believed the White House badly wanted him to accept the funding to build what they hoped would become a model for a nation-spanning system of high-speed rail. Scott, however, was keener to secure federal help dredging the Jacksonville and Miami ports, to make them accessible to the supertankers that will be ferrying cargo through an enlarged Panama Canal as soon as 2014." LaHood wouldn't negotiate and the rail project died because Scott killed it.
HBO Latin America hiring 100 in Miami
HBO Latin America is moving to a new office in Coral Gables and adding 101 jobs to its workforce of 266. The media company is investing $6.2 million in the deal.
NCO Group adding jobs in Charleston, W. Va.
NCO Group announced in the winter it is adding 90 jobs at its facility in Charleston, W. Va. The company is a business processing services provider.
Huge deal: BMW to invest $900 million in S.C. plant
German automaker BMW announced in January 2012 it is investing $900 million in its Greer, S.C. assembly plant over the next three years. The expansion will enable BMW to boost production to at least 300,000 cars in 2012 from 276,065 in 2011. It will also enable the automaker to build its new X4 crossover model. "This site is an essential pillar of our international production," Frank-Peter Arndt said in a Webcast of the expansion announcement. Arndt said the S.C. plant produced 73 percent more units in 2011 than what was produced in 2010. BMW has invested $6 billion in the plant since it opened in 1994 and the $900 million expansion will add 300 new workers to the 7,500 employees currently housed at the facility.
Huge deal: Boeing moving 1,000 jobs to Oklahoma City
Boeing made a major announcement in the winter quarter when it unveiled plans it will move 800 to 900 jobs from Wichita, Kan. and about 100 from Puget Sound, Wash. to Oklahoma City. Most of the positions will be engineering and management jobs. The relocation essentially closes the decades-old Boeing era in Wichita. Boeing said that facility, which employs 2,160, will close by late 2013. Remaining aircraft maintenance and support work in Wichita will be moved to Boeing's San Antonio facility.
Huge deal: Freightliner calls 1,100 workers back to N.C. truck plant
Over 1,000 workers laid off from Freightliner's big truck assembly plant in Cleveland, N.C. are being recalled to meet demand for the vehicles, parent company Daimler reported in January. At the announcement, Daimler Trucks COO Roger Nielsen said, "America moves on trucks. When the demand for trucks is increasing, it means that America is buying more products. It means that America is building more homes. It means that America is constructing more roads." The recalled workers will create a second shift at the truck works in North Carolina. Freightliner is a division of Germany's Daimler AG, which also owns Mercedes-Benz.
Huge deal: Solar company to bring at least 800 jobs to San Antonio
City of San Antonio-owned CPG Energy has selected OCI Power to bring more than 800 jobs to the city to increase solar-generated power of at least 400 megawatts each year. OCI, a subsidiary of Seoul, Korea-based OCI Co. Ltd., has agreed to bring its worldwide headquarters to San Antonio. The projects are expected to create 800 jobs in The Alamo City. San Antonio made headlines last year when it planned to increase solar energy output to 400 megawatts annually. That load would put the city in the top tier of solar generated power among all cities globally.
Furniture manufacturing coming back to the South
The South has lost tens of thousands of jobs in the last 20 years in the furniture manufacturing sector. If you read SB&D's latest cover story, the future looks bright for the furniture industry in the region as manufacturers return from China and elsewhere to the U.S. Bruce Cochrane knows. Cochrane is the owner of Lincolnton Furniture and has been involved in all three parts of the saga with the furniture industry in the South. He has seen it when it flourished in the region 20 to 30 years ago, witnessed it leave in mass to China and is now betting on its return. After his family sold their furniture business in 1996, Cochrane has been a consultant in China and Vietnam as the industry grew, mostly from relocating capacity from the U.S. In January, Cochrane invested $5 million and is hiring 130 employees to make mid-to-high-priced furniture in the same building his family once ran in Lincolnton. President Obama invited Cochrane to the White House as a result of his decision to invest in his business in N.C.
San Antonio No. 1 in small business hiring
SurePayroll's Small Business Scorecard that came out in the winter quarter showed that small businesses in San Antonio hired 8.3 percent more people in 2011. That was the top rate out of 35 metropolitan areas studied. The average rate was 3.2 percent. Orlando and Las Vegas came in second and third with 7.1 percent and 5.3 percent respectively.
High-rise condo developers building once again in Miami
Just two years ago there were more than 20,000 unsold high-rise condo units in downtown Miami. Today that figure is 2,500 units. As a result, Miami has become one of the worst real estate markets at the height of the recession to one of the best in the country. Foreign cash buyers have accounted for much of the rebound and that has developers building again in South Florida. New projects such as Newgard Development Group's $170 million, 374-unit BrickellHouse and the Related Group's MyBrickell project are now in the works to meet demand for high-rise condos in Miami. Prior to the recession, more than 80 major condo projects and 23,000 units were built in downtown Miami.
Aichi Forge expands in Kentucky
Aichi Forge, a large steel forging manufacturer servicing the automotive and truck market, is investing $5.5 million to expand its Georgetown, Ky. plant. The expansion will allow Aichi to enter the heavy truck and transmission markets. The project will add 26 new jobs.
Launch Medical expanding in Memphis
Launch Medical, a medical device firm, is expanding its operations in Bartlett, Tenn. Launch helps surgeons develop their ideas into commercial medical devices. The $4.8 million expansion will create 40 jobs.
Company expanding in Alabama
Micor Industries, a contract manufacturer and machining company, is adding 40 workers in Decatur, Ala. The company is investing $3.1 million in the project.
Parts supplier hiring 200 in Tennessee
Eagle Bend Manufacturing is expanding its Clinton, Tenn. facility. The $64 million investment will add 100,000 square feet to its existing 334,000-square-foot facility and the deal will create 200 new jobs.
EA grows to 600 workers in Austin
Video game publisher Electronic Arts unveiled its newest expansion in Austin in the winter quarter. The California-based company has grown to 600 workers at its facility in North Austin. EA is the developer of "Madden NFL," "NCAA Football" and "FIFA Soccer" among other video games.
Virginia-based Norfolk Southern reports it assisted in $9.5 billion in industrial development
Norfolk, Va.-based Norfolk Southern reported in the winter quarter it assisted in the location of 73 new industries and the expansion of 27 existing companies on its rail lines in 2011. The activity resulted in $9.5 billion in investments and represents about 6,800 new jobs and up to 152,000 new railcar loads annually.
Call center hiring over 400 in Orlando area
Convergys, one of the most active call center operations in the South, is hiring 414 at its customer service and technical support center in Lake Mary, Fla. Many of the new hires require candidates that are bilingual in both English and Spanish.
Foundry adding capacity in Greenwood, S.C.
Crown Casting Industries, an iron and bronze foundry, is investing $16 million in a new plant in Greenwood, S.C. The company will begin operations in the summer of this year and will hire 50 workers initially.
Amazon expanding Chattanooga distribution center
It is the size of 17 football fields and it is about to grow to 28 football fields. In January, Amazon.com announced it is expanding its Chattanooga, Tenn. distribution center. The center houses about 2,000 workers but this latest expansion will add hundreds more. The Chattanooga facility and another Amazon center in neighboring Cleveland, Tenn. should house 5,000 workers at some point this year.
Mercedes-Benz and Nissan team up to expand Tennessee engine plant
Nissan announced in the winter that it will expand its rural Tennessee engine plant in Decherd to enable Mercedes to build four-cylinder engines there to be used in the next generation C-class sedan model. That model will be built at the German automaker's Tuscaloosa, Ala. assembly plant beginning in 2014. The same engines will be used in an unnamed Infinity model that will be built at Nissan's plant in Smyrna, Tenn.
Acentia placing HQ in Fairfax Co., Va.
Acentia, a provider of technology and management solutions to the Federal Government is investing $3.1 million to move its headquarters to Fairfax County, Va. The project will create 60 new jobs in Northern Virginia.
Precision Coils opening plant in West Tennessee
Precision Coils is relocating in the summer from Somerville to Brownsville, Tenn. The company manufactures heating and cooling coils. The $3.7 million project will create 26 jobs.
Tyson Foods to hire 60 at Arkansas torfilla plant
Arkansas-based Tyson Foods is adding 60 workers to its plant in Fayetteville, Ark. The $7 million expansion of its tortilla plant will add 120,000 square feet of space.
Red Hat payroll swells in Raleigh
Software company Red Hat expects to expand by 250 workers in the next few years as it relocates its operations from N.C. State University's Centennial Campus to downtown Raleigh. Red Hat is moving into a 19-story office tower in Raleigh that is being vacated by Progress Energy as it merges with Charlotte-based Duke Energy.
Kia completes Georgia expansion
In the winter quarter Kia Motors completed its $100 million expansion of its plant in West Point, Ga. The Korean automaker can now assemble 360,000 vehicles each year. Kia added 1,000 jobs at the plant in 2011.
Call center adding 250 jobs in Mobile, Ala.
Alorica is adding 250 jobs at its call center in Mobile, Ala. The company was formerly known as Ryla.
Air Force One’s maintenance moving to San Antonio
Boeing is moving aircraft workers and maintenance of Air Force One to its facilities in San Antonio. The realignment will mean 300 to 400 jobs for The Alamo City.
ServiceSource creating 300 or more jobs in Nashville
ServiceSource, which helps companies maximize "service revenue," announced in the winter its intentions to create 300 jobs or more in downtown Nashville. ServiceSource is based in San Francisco and operates its regional headquarters in Nashville.
Baldor Electric bringing 166 jobs to N.C.
Baldor Electric, a subsidiary of Switzerland-based ABB Group, is buying a 270,000-square-foot building in Cleveland County, N.C. to boost existing operations there. The company, which makes electric motors, is investing $17 million in the project that will create 166 jobs.
AvCraft expanding in Myrtle Beach
AvCraft Technical Services, an aviation maintenance company located on the former Myrtle Beach Air Force Base, is adding 150 new jobs. The company is investing $1 million in the deal.
Employee benefits firm moving headquarters to Charlotte
Infinisource Holdings, which is owned by Kohlberg Kravis Roberts & Co., is relocating its headquarters from Michigan to Charlotte. The employee benefits management firm will hire 162 in the deal.
Florida looks to turn the corner in 2012
Florida got hammered in the recession, probably more than any other Southern state. But things are getting better in The Sunshine State. Tampa Bay, Lakeland-Winter Haven and Cape Coral-Fort Myers are three of the top four markets in the U.S. that are expected to have the highest percentage of job gains in the country this year. Houston is the other. Florida's unemployment rate in December finally got below double-digits and those 22,000 condo units in Miami that were vacant just two years ago, well, there are only 2,500 left.
Amazon to build two distribution centers in Virginia
Online retailer Amazon.com announced in the winter it will build two distribution centers and create 1,350 jobs in Virginia. One $85 million center is being built in Chesterfield County that will house 1,000 workers and a $50 million fulfillment center that will house 350 workers will be built in Dinwiddie County.
Amazon building two other centers in Tennessee
Amazon.com announced in the winter it will build two new fulfillment centers in Tennessee. The new centers will be located in Wilson and Rutherford counties. Together, the projects represent a $135 million investment and over 1,300 new jobs. Amazon currently operates three other facilities in Tennessee.
Sara Lee expands in Missouri
Sara Lee recently announced plans to add space at its meat processing plant in St. Joseph, Mo. The $3 million project will create 55 jobs.
EverBank moving 1,500 workers to downtown Jacksonville
Jacksonville-based EverBank Financial announced in the winter it will move 1,500 employees from Southside Jacksonville to downtown. The $10 million project is expected to be done in the middle part of the year.
Auto supplier expands in S.C.
TWL Precision, a supplier of automotive components, announced plans in the winter to expand its operations in Charleston County, S.C. The $5 million deal will create 35 new jobs.
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