Top 10 Southern Mid-Markets the Last 10 Years

By Lisa Maseng

Methodology: The top 10 Southern mid-markets over the last 10 years were chosen based on the results of the SB&D 100 between 1993-2002 (1992-2001 calendar years). Under SB&D 100 rules, states, counties and markets receive 10 points for each corporate expansion, relocation or startup that makes the SB&D 100. The SB&D 100 ranks the top 100 job announcements and top 100 investment announcements made in the South each calendar year. In addition, five points are earned for just missed deals. Just missed deals are those that announce 200 jobs and/or $30 million in investment up to the SB&D Job 100 and SB&D Investment 100 thresholds that are created each year. For example, if the 100th-largest job announcement made in the South was 550 jobs, all job announcements from 200 jobs to 549 are worth five points. The following mid-markets are the top 10 earners of points over the last 10 years of the SB&D 100.

#1 McAllen, Texas: 360 Points

The numbers prove that companies competing in a global economy are looking at McAllen, which strategically sits at the border of the U.S. and Mexico. Many European and Pacific Rim companies have located and expanded in this market during the last decade to serve the vast emerging markets in Mexico, Central America, the southern United States, and Canada.

As the top "mid-sized market" in the South of the last 10 years, McAllen offers a Class-A industrial complex that spans the international border, consisting of 6,000 acres in the United States and 16,000 acres in Mexico. It contains the McAllen Foreign-Trade Zone #12, known as the McAllen CrossPort, which offers warehousing, logistic services, and JIT inventory management for global companies.

Other advantages that have spurred this market's growth include the Center for Advanced and Applied Technologies, which assists in product design and development as well as a new state-of-the-art Sustainable Technology Center for high tech, clean room and back office facilities.

One note about McAllen, don't expect to see this market as the "top mid-sized" again. This city is dangerously close population-wise to transitioning from a mid to a major market.

#2 Tri-Cities, Tennessee (Johnson City/Bristol/Kingsport): 335 Points

Ask…and Tri-Cities will make it happen. Each community in this region has worked hard in the past decade to prepare its infrastructure (including highways, water, wastewater-treatment, and industrial acreage) to immediately accommodate new or expand existing businesses. This market's groundwork and can-do attitude have paid off in major industrial growth during the last 10 years.

Tri-Cities has also found success by offering a work force that can be specifically trained for a company's operations. In fact, this market is the only place in America that offers college scholarships to every person graduating from its high school system.

The Tri-Cities has seen more than its share of locations and expansions during the last decade. Expansions such as the $1.5 billion Eastman Chemical Corp or locations such as the $500 million Willamette Industries, the $100 million Sara Lee and the $100 million Bush Brothers projects have occurred because of the high level of service delivered by this northeast Tennessee market.

#3 Biloxi-Gulfport-Pascagoula, Mississippi: 285 Points

The three-county region (Harrison, Hancock and Jackson) has been credited with being the engine that has driven Mississippi to an economic renaissance over the past decade.

Historically led by the seafood, timber and tourism industries, the Gulf Coast economy today includes everything from chemicals to computers, from apparel to aerospace. Since 1992, more than $3.5 billion in new commercial and industrial development has been made in the Mississippi Coast, and nearly 38,500 jobs have been created. The Gulf Coast is home to more than 12,000 businesses, the second-highest concentration of businesses in the state, and is home to three of Mississippi's top five employers.

Driving the success of the Mississippi Gulf Coast has been the area's strategic location between New Orleans and Mobile; its well-developed air, land, sea and rail arteries; low business operations costs; and a resort climate that provides an unbeatable quality of life.

The Gulf Coast's attributes are what led such companies as DuPont, GE Plastics, MGM Grand and Grand Casinos to locate facilities in the region. In April 2001, Cingular also announced the location of a 700-person inbound customer care center for the region.

#4 El Paso, Texas: 265 Points

Call centers and plenty of them have taken advantage of the extensive fiber optic network in El Paso during the last 10 years. Seven out of the top ten biggest projects in El Paso are call centers, which employ over 8,400. El Paso's call centers include: Echostar, MCI, Providian, Brylane, Telerx, Southwestern Bell, and State Farm. Additionally, this West Texas market has attracted attention from the entertainment, aerospace and communications sectors.

Located strategically along the U.S. boarder with Mexico, El Paso boasts a mild climate, reasonable land, and low building costs. Further enhancing El Paso's success in attracting new jobs is its public/private economic development partnership and its available, highly trainable work force.

#5 Tulsa, Oklahoma: 215 Points

It's OK! At least that's what the citizens said to an innovative plan for a one-year, half-cent sales tax to offset relocation costs for Whirlpool in 1995. In return, Whirlpool has created 1,300 new jobs in the last seven years. During the past decade, Tulsans have become known for their eager-to-please attitudes, for getting things done through private-public partnerships, and for a state-of-the-art communications infrastructure.

Today, the city that was once dominated by the oil industry is now home to a diversified base of business. With a central location and well-trained work force, the Tulsa area is now known as a high-tech city, a fact that hasn't gone unnoticed by corporations.

American Airline's long-time presence in this market, in particular, has advanced Tulsa's large aerospace industry. Numerous suppliers have chosen Tulsa in the last decade to meet American's needs. As this industry has been building, many existing companies have also become new suppliers to American Airlines, allowing them to expand and diversify their product mix. In addition, Tulsa's Port of Catoosa, America's largest inland international seaport, has helped make this Oklahoma market a national distribution center.

#6 Columbia, South Carolina: 210 Points

In the last decade, the Columbia region has emerged as a major player in both the economic development and industrial circles. This six-county region is focused on recruiting world-class companies. Since 1993, the region has realized over $4.5 billion in new capital investment from such companies as Siemens, Bose, PBR Automotive, Komatsu, Target Distribution, UPS, Michelin, Pirelli and American Koyo Bearing.

The region is anchored by The City of Columbia, which is the seat of state government and home to the University of South Carolina. In addition, the Columbia region has nine other institutions of higher learning, including three world-renowned technical education campuses.

Columbia also has a new technology and research incubator, a highly skilled work force, three interstate highways (I-20, I-26 and I-77), robust infrastructure, and a newly renovated regional airport with 50 daily flights. This mid-size market has the cultural appeal of a larger metropolitan area coupled with genuine southern hospitality.

#7 Huntsville, Alabama: 185 Points

Over the past decade, Huntsville has led other counties in Alabama's new job announcements 9 of the past 11 years. Existing manufacturers in the electronics, telecommunications, pharmaceutical, and video/CD-ROM industries have led the growth, while new companies in the automotive assembly, retail distribution and customer service sectors have added to the diversification of the local economy.

In addition to industrial growth, the community has drawn new jobs and investment from the U.S. Army, including 2,000 new jobs with the establishment of the U.S. Army Aviation and Missile Command on Redstone Arsenal. Home to the Army as well as NASA, Redstone Arsenal is central to the Huntsville area economy and drives a strong technology environment that attracts educated workers from throughout the United States. Adjacent to Redstone Arsenal is Cummings Research Park, the nation's second largest research and technology park. Over 225 companies involved in high-tech research and development are located in the park, employing more than 22,000 people.

Montgomery Alabama: 185 Points

Between 1990 and 2000, Montgomery climbed its way up to become the second largest city in Alabama. As the population boomed, so did the number of jobs. In the last decade, more than 35,000 net new jobs have been created in this Alabama market-most of these since 1994. Since 1998 alone, new and expanded industries have totaled over $1.6 billion in capital investment and added over 6,000 jobs to the region. Montgomery's thriving economy was most recently given a boost in April 2002, when Hyundai Motor Manufacturing Company chose this location for its first United States automotive manufacturing facility.

A capital city and at the intersection of Interstates 85 and 65, Montgomery's success over the last decade can be attributed to vast economic diversity. This community is home to state government, a major military installation, wholesale/retail trade and agricultural support. The past 10 years have also seen Montgomery become increasingly high tech with five local colleges and universities as well as two Air Force bases to supply a tech-savvy work force.

In addition, Montgomery has emerged as a regional trade center and major distribution gateway for the Southeast. The city's interstate highways, motor freight terminals, rail systems, barge transportation and air service provide an extensive distribution network.

#9 Roanoke, Virginia: 165 Points

In the last 20 years, the Roanoke Valley (including the City of Roanoke) has attracted more than 70 expansions and relocations. They represent 9,700 direct jobs and $772.1 million in investment. Maple Leaf Foods, Precision Technology Group, Koyo Steering Systems, Spectacle Lens Group of Johnson & Johnson Vision Care, First Citizens Bank, Dynax America, York International, R.R. Donnelley & Sons and Fleetwood Homes are just a few of the companies that have selected the Roanoke Valley, many of them after extensive site searches.

Companies have gravitated to and prospered in Roanoke partly because of the community's central location along I-81 and between I-77 and I-64. Businesses have further benefited from low costs and a labor pool of more than 350,000. Also contributing to Roanoke's decade of success is a positive labor climate in a right-to-work state where only 2.5 percent of the local manufacturing work force is unionized.

#10 Shreveport-Bossier, Louisiana: 130 Points

General Motors (GM) has been the main impetus behind the economic boom in Shreveport-Bossier over the last decade. GM is spending nearly $900 million to construct a new stamping plant and an assembly and body shop beside its 2.1 million-square-foot existing facility. The expansion will add 1.8 million square feet. GM builds the Chevrolet S-10 pickup and GMC Sonoma. When retooled, the facility will assemble the new Chevrolet Colorado pickup.

Like many other parts of the South, automotive is the hottest industry in Shreveport. Suppliers are landing in Shreveport/Bossier City to supply the GM facility as well as the Nissan plant in Canton, Miss. Area officials estimate that automotive suppliers in the area have a potential for nearly 8,000 new jobs in coming years.Today, approximately 260 manufacturing facilities in the area employ nearly 20,000 people.

Services also are contributing to the area's economic well-being. Continential Express recently announced it was setting up a maintenance facility for its aircraft at Shreveport Regional Airport, creating up to 400 jobs and officials with Red River Pharma have announced they will be the first tenants for Shreveport's new Wet Lab Science Incubator. The pharmaceutical company is investing $25 million and hiring as many as 200 workers to work in quality control labs set up by the incubator.

Lakeland, Florida: 130 Points

Lakeland has been so appealing for business location and expansion due to its available workforce - seven million people within a 100-mile radius, access to two international airports, and being in the center of Florida's high-tech corridor. Since 1987, Lakeland has absorbed over 16-million square feet of space that has been leased, bought or built. Ideally positioned between Orlando and Tampa, two of the South's most dynamic major metros, this Florida market has become a leader in the distribution sector.

Beaumont, Texas: 130 Points

Since the early 90s, Beaumont has seen significant growth from industrial expansion and new business. This southeast Texas market offers a strong labor force for corporate and back offices, manufacturing, and distribution companies. The community has much to offer growing businesses with its interstate highways, a deep-water port and regional airport.

An interesting fact about Beaumont is that it has been "buried" in our SB&D 100 year after year. It was never the top or even honorable mention of our mid-sized markets. But when we added up the points after 10 years, it becomes clear that Beaumont has been a consistent performer.

Little Rock, Arkansas: 130 Points

Arkansas' capital city has done an excellent job of diversifying its economic base. Major manufacturers, such as those involved in aerospace, food products, printing, wood product and cosmetics call Arkansas' largest market home. The market features a large inland port and is home to major players in telecommunications. The central business district is in the middle of a major transformation, with the Clinton library the centerpiece.