2001 SB&D 100

The American South's Top 15 Economic Development Groups for 2001

By Mike Randle

With each SB&D 100 comes some outstanding performances by states and markets of all sizes in the South. The economic development teams representing these states and markets are being cited here for their achievements during calendar year 2000. These groups are not being recognized arbitrarily. As written in the introduction to the SB&D 100, we rank states and markets based on how many large corporate deals they turned the previous calendar year. A points system is used and that's how we choose our Top 15 economic development groups each year. In other words, the states and markets recognized here topped their peers in 2000 where the rubber meets the road -- in turning large, highly visible corporate deals. NOTE: Economic development agencies representing Baltimore/D.C./Northern Virginia and Dallas/Fort Worth in the mega-market category are not listed simply because there are too many to cite.

State Category

VIRGINIA: 2001 State of the Year (650 Points)

Virginia Economic Development Partnership
Richmond, Virginia

After nine years of tracking the South's largest corporate expansions, relocations and startups, I'm convinced there are states and markets that perform consistently year after year as a result of their well planned, cookie-cutter corporate recruiting programs. In addition to an effective recruiting package, those successful states and markets have found a way to raise sufficient revenue to make their well thought out plans work. Their marketing and public relations departments are top-notch and they know full-well what industries are best suited for the product they offer to prospective industry.

Officials with the State of Virginia implemented a program in 1994, shortly after George Allen was elected governor that is still working today. That program is one that other states in the South should consider looking into. Why? Virginia has consistently hovered at the top of the SB&D 100 since the ranking was first published in 1994. In fact, this year Virginia is the South's "State of the Year." It's the third time we have named Virginia State of the Year. The first was in 1996 and the second in 1999. Virginia now tops Texas' two State of the Year awards, and Tennessee, Florida, North Carolina and Alabama, which have each earned the designation a single time.

Virginia's numbers for 2000 were outstanding. Economic development officials in the state closed 102 corporate deals with 200 jobs or more and/or $30 million in investment. The 650 points Virginia got from those deals (10 points are given for each "100" deal and five points for each JMD) is the highest point total -- by 185 points -- of any state other than Texas or Florida in the history of the "100." In fact, Texas has beaten all Southern states each year by at least 300 points. Most years (like in 1996, 1997 and 1999), Texas beats all Southern states other than Florida by more than 500 points. For example, in 1996 Texas put up 1,235 points. It put up 1,110 in 1999. Not this year. Virginia's 650 points is only 25 shy of Texas' No. 1 total.

Let's put Texas' 675 points and Virginia's 650 points posted this year in perspective. Texas' population is about three times Virginia's population. Therefore, based on the basic theory that the number of corporate deals is directly affected by population base, Virginia would produce (theoretically this year) 1,800 points if it were the size of Texas. While Texas is the only state that has turned more than 1,000 points, that's a far cry from 1,800. Virginia dominated not only Texas but every other Southern state in the South, outside of neighboring West Virginia, on a per capita basis this year.

To give you an idea of how strong of a year 2000 was for Virginia consider this: Virginia was second to Texas in the SB&D Job 100 and Job JMD categories but No. 1 in big job deals per capita. Virginia led all Southern states in Investment 100 deals and in Investment JMDs. It placed second to West Virginia in big investment deals per capita and second overall per capita in big deals (both investment and jobs) to West Virginia.

Driving Virginia's amazing economy in 2000 were its major markets. Northern Virginia, Richmond and Hampton Roads are all being cited in this article profiling the South's top 15 economic development groups. Led by high-tech deals, Virginia's major markets, especially Northern Virginia, are becoming major centers for information technology. In fact, Northern Virginia may have toppled Austin, Tex., in the minds of many as the South's new center for high tech industries.

But it's not just major markets that are turning deals in the Commonwealth. Martinsville/Henry County, is being recognized as the South's top small market for the second consecutive year. That distinction may be more impressive than State of the Year. There are only 17 states to compete with in the South. There are over 5,000 small markets in the South competing for "Small Market of the Year."

At the top of Virginia's big deal list you'll find Infineon Technologies and Capital One in Richmond and Dominion Semiconductor, Broadband Technologies and Capital One in Northern Virginia. Let me tell you folks, those are some premium corporate deals. They are huge plums and they all were announced in Virginia in the same year. It's this writer's opinion that Virginia is indeed the hottest state in the South right now.

WEST VIRGINIA (170 Points)

West Virginia Development Office
Charleston, West Virginia

West Virginia is the South's smallest state. Only 1.8 million people live there. If you've ever been to Atlanta Hartsfield Airport on a Friday at 5:00 P.M., you'd swear 1.8 million people are there with you in the terminal. Albiet small, West Virginia came up big in the 2001 SB&D 100. With 170 points, West Virginia's performance at turning deals in 2000 was superb. The 170 points is a monster year, completely out of their typical slot of 60 or so points.

As written throughout the SB&D Investment and Job 100 sections in this issue, to compare West Virginia, Kansas or Arkansas with Florida, Virginia or Texas in the total number of deals turned is ludicrous for a site searcher. The number of big corporate deals turned in the South and published in the SB&D 100 each year is in direct correlation with the number of people that state has as a population base. That's why we publish a per capita ranking. And West Virginia was at the top of that ranking in the SB&D Investment 100 category and placed third per capita on the Job 100 side. But when you add up all of the big deals, West Virginia's per capita ranking (combining SB&D Job 100, Job JMDs, SB&D Investment 100 and Investment JMDs) is No. 1 in the South for 2001 with an impressive 15 big deals turned per million persons (Virginia had a per capita ranking of 14.8).

In 2000, West Virginia officials turned some high-profile deals. Although only one of those deals made the Job 100 (Quad Graphics, $70 million, 700 jobs), six big investment deals made the SB&D I-100. Those seven deals alone make up the upper end of West Virginia's typical points slot each year. But there's more. West Virginia turned 11 more JMDs than it did last year. It had 12 deals between 200 and 599 jobs, headed up by call center and distribution announcements made by TeleTech, Applied Card Systems, Clientlogic and Amazon.com.

My experience with West Virginia officials has been a pleasant one. I believe you will find the same in your site search. Employees of the West Virginia Development Office communicate extremely well, are highly efficient and motivated, and want so badly to show their beautiful state to prospects. Ever thought of West Virginia as a location? You should. They will do all they can do to accommodate you. And as one self-made billionaire said, "All you can do is all you can do. And all you can do is enough!"

TENNESSEE (420 Points)

Tennessee Department of Economic & Community Development
Nashville, Tennessee

I wrote in 1993 that Tennessee would be the next great destination state in the South. Why? Gov. Ned Ray McWherter told me so. He said folks would migrate there in droves by the end of the decade. I wrote what he said because he was a governor whom I believed in.

At the time I had not factored Virginia getting its economic development act together (in 1993, Virginia's economic development department was a joke). After all, Georgia, Texas, Florida and North Carolina had already achieved destination state status. Tennessee, with Memphis and Nashville quickly becoming world-class cities, seemed to be the logical choice. In the South, it's only a matter of time before every Southern state achieves destination status. That's how attractive this region is to industry leaders and labor.

Well, with Tennessee, I was pretty much right on target. Sure, Virginia and Tennessee have both emerged as the new destination states in the South. But Tennessee achieved destination status just a couple of years after Virginia. Tennessee has been a fixture in the SB&D 100 for four years now. Earning State of the Year honors last year, the Volunteer State is unquestionably the next great Southern state. In fact, after this year, let's not call it the next great destination state. Let's just give it to 'em and look for the next destination state to emerge in the American South.

SB&D 100: Total Deals

State # of Deals Per Cap Ranking Total Points

Virginia 102 2nd 650
Texas 98 13th 675
Florida 67 15th 425
Tennessee 61 3rd 420
Georgia 59 9th 365
North Carolina 47 11th 310
Kentucky 43 4th 280
Oklahoma 37 4th 270
Alabama 36 7th 215
South Carolina 31 8th 225
Mississippi 28 6th 180
West Virginia 27 1st 170
Louisiana 22 12th 185
*Maryland 17 16th 100
Missouri 17 17th 100
Arkansas 15 10th 85
Kansas 12 14th 75

*Did not report investment figures

Mega-Market Category

BALTIMORE/WASHINGTON D.C./NORTHERN VIRGINIA: 2001 Mega-Market of the Year (390 Points)

Baltimore/Washington D.C./Northern Virginia

This is the South's largest market. It's acting like it. Earning 390 points, Baltimore/Washington D.C./Northern Virginia topped all states in the South in big deals except for Tennessee, Texas and Virginia. One market besting all of Florida? You betcha! This massive quasi-metro is the South's Mega-Market of the year.

Northern Virginia is by far the South's hottest market right now. The areas of Maryland in this dynamic region are very active as well. However, it is Northern Virginia's Fairfax and Loudoun counties which are driving this place that has over seven million people.

Internet services and other high tech industries are key here. Huge financial services deals also were present in this gigantic metro. However, the immediate future for big deals in B/DC/NV is cloudy at best. For one, you must look at the Internet crash. What we will find in next year's SB&D 100 regarding Internet-based deals is a mystery. But it is a given that it won't be anything like 2000. Furthermore, officials in Northern Virginia as well as parts of Maryland have come under great pressure to simply slow the growth. This region, according to many residents and local media, has grown too fast. Well, if this year's SB&D 100 is any indication, they are growing fast. Too fast? That's up to local officials.

ATLANTA (225 Points)

Atlanta Chamber of Commerce
Atlanta, Georgia

Atlanta posted 225 points, good enough for second place in the mega category. But we're not sure that is an accurate figure. The Atlanta Chamber never returned our phone calls. And with a market the size of Atlanta, it's tough for the state group, the Georgia Department of Industry & Trade, to provide complete numbers simply because they are not involved in every Atlanta deal. It would be nice to give out one of the Top 15 Economic Development Group's awards to someone at the Atlanta Chamber if only someone there would call us back. Regardless, it was a good year.

DALLAS/FORT WORTH (190 Points)

Dallas/Fort Worth, Texas

D/FW's dominance in the major market category may have gone by the wayside. Besides, why win it every year? Why not give the annual mega-market trophy to another of the South's seven megas? D/FW has done just that for the second year-in-a-row. Only Tampa Bay bested this Texas market and they did it twice between 1993 and 1999. That means the Metroplex was the South's top mega-market five out of seven years. Yet, Baltimore/D.C./Northern Virginia is eating D/FW's lunch in big deals, more than doubling the 190 points posted by the Metroplex. D/FW officials aren't upset, though. They had a great run and they are still enjoying it. It's best for the other mega-markets in the South to let this sleeping giant sleep for a while.

Mega-Market Category

Market Points

B/DC/NV 390
Atlanta 225
D/FW 190
So Fla 90
Tampa Bay 70
Houston 40
St Louis 15

Major Market Category

RICHMOND: 2001 Major Market of the Year (120 Points)

Greater Richmond Partnership
Richmond, Virginia

The Greater Richmond Partnership may indeed be the best run local economic development group in the South. Their marketing and public relations are first-rate. Richmond's numbers reflect their professionalism. The Richmond MSA posted 120 points this year and placed two deals on the Top 10 list. This is the second time Richmond has won Major Market of the Year honors.

The Capital One deal (No. 2 on the Job 100) was an amazing coup for a market the size of Richmond. Infineon expanded its chip plant, one of only three major semiconductor deals we could find this year. Richmond is turning deals like a mega-market, yet is only the nation's 51st-largest market and the 23rd-largest in the American South. Here, you get the prosperity without the congestion. Not a bad combination.

OKLAHOMA CITY (95 Points)

Oklahoma City Chamber of Commerce
Oklahoma City, Oklahoma

What a year for the South's 21st-largest market. OKC turned some eye-popping deals, both on the investment and job sides totaling 95 points. This central U.S. and western South market has been gaining momentum for three years now. The Oklahoma City Chamber of Commerce is a very talented group. They are confident and they can make it as easy as possible for your deal to become a reality. Their marketing prowess is something that other Southern markets should take note of. These folks turn deals because they are smart and city and county officials as well as local residents have invested in their home like few markets have ever done in the South. If you are interested in Oklahoma City, ask economic officials there just how much this city has invested in itself. It's an amazing story and a great tribute to the people and elected officials of Oklahoma City.

HAMPTON ROADS VIRGINIA (80 Points)

Hampton Roads Economic Development Allaince
Hampton Roads, Virginia

A semi-regular in this ranking, Hampton Roads, which includes Norfolk, Virginia Beach and Newport News, among other markets, turned a very respectible 80 points in the 2001 SB&D 100. The Hampton Roads EDA, the umbrella group for this large MSA, the 11th-largest in the South, has a tough job making several counties and cities equally happy. For the most part, they are doing it. This is the third time in nine years we have recognized Hampton Roads as one of the top major markets in the South. Many of the South's major markets have never been recognized in this category. Keep it up Tidewater!

Major Market Category - Top 10

Market Points

Richmond 120
Oklahoma City 95
Hampton Roads 80
Austin 80
Memphis 75
Charlotte 75
Raleigh-Durham 65
Nashville 65
Louisville 60
Jacksonville 50

Middle Market Category

MCALLEN: 2001 Mid-Market of the Year (70 Points)

McAllen Economic Development Corporation
McAllen, Texas

The third time to be recognized and second time to win Mid-Market of the Year is McAllen, Texas. If there ever was a prime example that manufacturing is not leaving the American South, it's McAllen. Why? McAllen is located on the Texas/Mexico border. Manufacturers still land in McAllen with regularity even though Mexico and its ridiculously low cost labor (McAllen's labor is some of the best and lowest in the South) is but a few miles away. It's a complicated situation for those that don't fully understand NAFTA, but McAllen proves that manufacturers prefer the American South for their primary operations.

McAllen is another market with an outstanding economic development group at the helm. The McAllen EDA knows how to accommodate your Texas and Mexico deal. It represents one of the fastest growing markets in the U.S. (fourth-fastest last year and in the top five for the last 10 years) and has product available to industry that is remarkable. The Hunt brothers have invested in this market, as well as an adjoining market across the border. They're building Sharyland, a 22,000-thousand-acre, mixed-use development. Six thousand acres are set for development on the McAllen side of the border and 16,000 are available on the Mexico side of the border. Have you ever heard of a 22,000-acre development? In 10 years of doing this, I haven't.

JOHNSON CITY/KINGSPORT/BRISTOL (65 Points)

Northeast Tennessee Valley Regional Industrial Development Association
Blountville, Tennessee

You probably don't know it, but the Johnson City/Kingsport/Bristol MSA is the South's 39th-largest market with about 500,000 residents. This three-headed MSA really turned the deals in the mid-1990s. For example, it won this category once before and has been recognized one other time. Its location to East Coast markets is superb. A variety of deals occur here from major call center and distribution deals to massive manufacturing announcements. One of the South's largest manufacturing plants -- Eastman Chemical -- has been operating profitably in Kingsport for decades. The market is being recognized this year for turning deals that totaled 65 points. That's an excellent year for a Southern mid-market.

KNOXVILLE (45 Points)

East Tennessee Economic Development Agency
Knoxville, Tennessee

Wow, Knoxville makes the big deal map? Beset with a fragmented recruiting package, Knoxville was an underachiever for years. No longer. This big-time college city is on a roll, showing major signs of life last year in the 2000 SB&D 100. For eight years, Knoxville wasn't a blip on the big Southern deal screen. Then it showed a few deals. Then last year, it showed a few more. In 2001, Knoxville topped all other mid-markets other than Northeast Tennessee and McAllen, Texas with 45 points.

Middle Market Category - Top 10

Market Points

McAllen 80
NE Tenn 65
Knoxville 45
Little Rock 30
Columbia, SC 30
Pensacola 25
El Paso 20
Lubbock 20
Huntsville 20
Gulfport/Biloxi 15

Small Market Category

MARTINSVILLE/HENRY COUNTY: 2001 Small Market of the Year (40 Points)

Patrick Henry Development Council
Martinsville, Virginia

Now here's some serious irony for you. This is Martinsville/Henry County's second consecutive Small Market of the Year award. That's pretty amazing considering there are over 1,500 counties in the South and over 4,000 small towns. To win it twice back to back is an incredible achievement. So what does the local government do in Henry County? It stops funding the Patrick Henry Development Council. In just a couple of months, the Patrick Henry Development Council will be no more. Apparently a riff occurred between the city and county, so both entities will form their own economic development bodies.

This market has been hit hard by apparel and textile closings in recent years. Officials with PHDC were replacing those lost jobs at a faster clip than any other small market in the South the last two years. This year, the market turned seven big deals. Seven big deals in a rural setting in one year? Most Southern markets this size don't turn one big deal in a year. Apparently being No. 1 (twice) is just not good enough for some people.

AIKEN/EDGEFIELD (35 Points)

Economic Development Partnership
Aiken, South Carolina

Here's another familiar face in the small market category. Aiken, S.C. is being recognized for a record fourth time. That may be more of an achievement than what Martinsville has done the last two years. Earning a spot at or near the top in the small market category is very difficult to say the least. To do it four times in nine years is remarkable.

This small market is preparing for the future as well. Initiatives at the nearby Savannah River Site centering on medical isotopes will eventually bring deals in the nuclear medicine field to Aiken/Edgefield. This will open up opportunities for pharmaceutical companies and those involved in cryogenics as well as others in that sector. And a biotech lab is on the drawing board. Already Aiken/Edgefield features a nice industry mix from automotive suppliers to defense industries.

ELIZABETHTOWN/HARDIN COUNTY (20 Points)

Elizabethtown/Hardin County Industrial Foundation
Elizabethtown, Kentucky

This small market located south of Louisville had a pretty good year. Officials there turned a very large distribution deal with UPS e-Logistics and there were some nice automotive supplier deals turned in Hardin County during calendar year 2000.

Small Market Category - 15 Points or More

Market Points

Martinsville/
Henry Co., Va. 40
Aiken/Edgefield, S.C. 35
Hardin Co., Ky. 20
Sherman, Tex. 20
Robinsonville Miss. 20
Vance, Ala. 20
Decherd, Tenn. 20
Arkansas City, Kan. 20
Boone Co., Ky. 20
Greeneup Co., Ky. 20
Martinsburg, W.V. 15
Lasara, Tex. 15
Morgantown, W.V. 15
Jackson, Tenn. 15
Okaloosa Co., Fla. 15
Baker Co., Fla. 15
Harrisonville, Mo. 15
Montgomery Co., Va. 15
Stillwater, Ok. 15
Ponco City, Ok. 15
New Bern, N.C. 15