QUIZ

True of False: In 2001, more net new jobs were created in the South than in the Midwest, Northeast and West combined. (scroll down for answer)

Reports Indicate Three Markets Make Short List for DaimlerChrysler Plant

DaimlerChrysler is site searching the south central East Coast for a large plant that would manufacture cargo vans, according to various reports. The site search, named Project Blue Bell, has apparently centered on sites in Jacksonville, Savannah and Charleston, S.C. If built, as many as 3,000 jobs could be generated initially at the new facility. All of the aforementioned markets have large ports. The port at Jacksonville is allied with Cecil Field, a 27-square-mile former Navy base that has its own general aviation airport and plenty of available land. Savannah's port activity is growing and is the headquarters for Georgia's port authority. Georgia features another port near Savannah at Brunswick, Ga. That port recently picked up Volvo shipments that Jacksonville used to handle. Charleston, the third prospective site, is home to the nation's fourth-largest port, but is struggling right now with its own expansion. DaimlerChrysler is expected to invest $750 million in the facility, which reports say will total 2 million square feet.

New Incentive Package for South Carolina

Legislators in South Carolina have passed a new incentive package that would be used for companies investment $400 million or more and creating at least 400 new jobs. The legislation paves the way for another large expansion of BMW's plant in Greer, S.C. The new incentives would also help the state pursue major industrial projects such as the DaimlerChrysler truck plant that is setting its sights on sites in Savannah, Jacksonville or Charleston. The bill would increase the state's debt limit and sell tax-exempt bonds worth as much as $500 million to pay for infrastructure needed to recruit large projects.

Tough Times for Port of Charleston, or Not

Business is down at the Port of Charleston, one of South Carolina's most dominating forces behind economic development in the state and one of the nation's largest container ports, while business is up at neighboring ports in Brunswick (GA) and Savannah. In the last couple of years, a battle has emerged among homeowners, environmentalists and port officials over the expansion of the Charleston port at Daniel Island. That battle ended in late April when the South Carolina Legislature decided to abandon the Daniel Island expansion and look to the closed Navy base located up the Cooper River in North Charleston. South Carolina Port Authority officials have maintained that an expansion at the old Navy base would cost much more than expanding existing facilities on Daniel Island. But the prospects of a large user, in this case DaimlerChrysler, makes the timing of the legislative decision interesting. Could it be that DaimlerChrysler prefers the old Navy base as a site for its proposed $750 million cargo truck plant? Let's not forget that Mercedes officials toured the old Navy base when they were searching for a site in the early 1990s. Furthermore, DaimlerChrysler announced in May that is is reopening a plant in North Charleston to make fire trucks and ambulances. That plant will create 760 jobs. While DaimlerChrysler officials say that facility is totally unrelated to the larger one, the moves by the company and the South Carolina legislature are curious.

Georgia Bows Up for Daimler Chrysler Project

More than one person has reported to SB&D that Georgia Gov. Roy Barnes was on a plane when he heard that Nissan chose Mississippi for its huge assembly plant in Canton. We heard Barnes was not pleased with Nissan's decision. Apparently, Barnes is dead-set on winning the DaimlerChrysler deal that seems to be centered on port facilities located in the Atlantic Deep South. The governor has pointed out that Savannah's port is the fastest growing in the nation and that Brunswick's port is one of the fastest growing automotive import/export ports. The advantages Georgia has for the project center on Savannah having plenty of available sites that are not affected by historic sites, therefore environmentally friendly. We also understand that Barnes' checkbook is open for Blue Bell.

Florida Moves Quickly to Pass "DaimlerChrysler Bill"

The Florida Senate passed a bill that will give DaimlerChrysler $65 million in incentives if it locates in the state. The incentives include the building of a worker training facility and seven years of operating it. The city of Jacksonville is also willing to open its checkbook for the massive automaker. Up to $40 million in infrastructure improvements at Cecil Field will be completed if DaimlerChrysler locates there. Much of the improvements will be completed even if the company locates elsewhere. The Florida Senate also approved a $250 million corporate income tax cut in hopes of landing the cargo truck facility. Expect neighboring counties to pony up as well if DaimlerChrysler chooses Jacksonville.

Georgia Officials Visit Korea/Hyundai

With the Hyundai site search now officially over, Southern states are positioning themselves now for the suppliers. In May, Georgia officials took a four-day trade mission to Korea to meet with automakers' Hyundai, Kia and Daewoo. They especially want to discuss with Hyundai officials the possibility of landing several large suppliers to the automaker's yet-to-be-built plant in Montgomery, Ala. Georgia took a similar approach when Honda announced it would build in Lincoln, Ala. and it worked. Several suppliers to the Alabama-based Honda plant located across the line in Georgia. In fact, other than Alabama, more Honda suppliers to the Lincoln plant have landed in Georgia than any other Southern state.

Group Says Louisiana's Tax Structure a Damper on Economic Development

Louisiana's corporate tax burdens on manufacturing firms remain relatively high among Southern states, the Public Affairs Research Council of Louisiana (PAR) reported in April. Jim Brandt, president of PAR, said the report "underscores the need for serious tax reform in Louisiana." The report demonstrates that Louisiana's current arsenal of tax incentives can be quite competitive with other Southern states, but once a manufacturer has used up its temporary incentives, its tax burden is higher than neighboring states. Louisiana has been ranked among the five to 10 lowest states in total taxes per capita for many years, due primarily to low collections from individuals. At the same time, the report notes, the state has ranked among the top 10 in the U.S. in the share of taxes borne by business. Louisiana's high sales taxes on manufacturing machinery and equipment (MM&E) are primarily responsible for the state's high, overall tax burdens on manufacturers. Louisiana is one of only two Southern states that do not exempt or greatly reduce replacement purchases of MM&E. As a result, according to the report, manufacturers' sales taxes run three times higher than the Southern average and Louisiana's tax burden on the "average" manufacturer ranks second highest in the South behind Texas. What's interesting about the report is that few states in the South each year report larger manufacturing investments than Louisiana and Texas. Because of the states' large concentration of oil, gas and chemicals industries, many of the largest investment announcements occur in Louisiana and Texas each and every year in the South.

QUIZ ANSWER

False. In 2001, net new jobs created in the Midwest, Northeast and West totaled 1,393,000. The South created 1,045,000 net new jobs. Source: Bureau of Labor Statistics

Quality Jobs Bill Passes in Louisiana

If you've got your hand out for tax rebates to go along with that expansion or new location in Louisiana, be prepared to pay a minimum of $9 an hour to employees and at least 85 percent of their health insurance premiums. Gov. Mike Foster's new economic development program included a quality jobs bill that was passed by the legislature. The state will rebate taxes up to five percent of payroll if companies pay the minimums outlined in the program and six percent for companies paying $11.50 an hour.

Goodrich Changes Mind in Arkansas

Officials in Arkansas reported in April that Goodrich Aerostructures and Aviation Services will not only keep its facility near Arkadelphia open, but it will also expand that plant. Goodrich officials announced in December they would close the facility, costing the area almost 175 jobs. After the plant closure announcement, Gov. Mike Huckabee, representatives from the Arkansas Department of Economic Development and community leaders in Clark County began working with the company in an attempt to save the jobs and the plant. Their efforts prevailed because not only is the plant remaining open, Goodrich plans to employ 75 more workers.

Hapeville, Ga. Ford Plant Hanging On

It was widely rumored last year that the Atlanta area Ford plant, which produces the Ford Taurus and Mercury Sable, was headed for closure. In March, Ford officials announced they are debuting a new sedan called the Ford 500, which further clouded the future of the Hapeville Taurus plant. Could the new sedan be the final straw for the Hapeville plant? It doesn't look like it. Ford is expected to keep producing the Taurus in Georgia. Apparently company officials believe there's a strong market for the Taurus in the rental and fleet industry. So, for now, the Hapeville plant's doors remain open.

Missouri Governor Plans to Save Explorer Plant

Missouri Gov. Bob Holden has created a 22-member task force to find ways to keep Ford's assembly plant in Hazelwood, Mo. from closing. Officials with Ford announced in December the plant, located near St. Louis, would close. The task force will attempt to convince Ford officials not to close the plant. However, if the plant is closed, the task force will change its mission and find a new user for the facility. The Ford plant is one of two that manufactures Ford Explorers. The other is located in Louisville. Over 2,500 are employed at the plant and over $150 million in annual salaries are paid by the Michigan-based automaker.

A Letter to President Bush

May 1, 2002

The Honorable George W. Bush
The White House
1600 Pennsylvania Ave NW
Washington DC 20500

Dear President Bush:

It's an honor to write my first letter to a President. It's very exciting. I wonder, considering my job, why I haven't written one or more of our Presidents before. I've written dozens of letters to governors in the South, and counsel with a few of them every year.

You were recently quoted as saying, "The role of government is to create conditions in which jobs are created, in which people can find work." I agree with that statement. Furthermore, it's my opinion that only financially strong governments can take the role of creating conditions in which jobs are created. That's how economic development works. Both palms -- the government and the investor -- are greased and it has worked in the South like no other place in the entire world. You remember how Texas fared in the mid-1990s during your term as governor. In 1996, Texas put up job and investment numbers that may not ever be duplicated by any state. That year 55 of the top 100 job announcements made in the South came from Texas.

There are three things governments, regardless of size, need to entice industry and create jobs. Those are: (1) capable people; (2) product, such as available buildings, labor and affordable land; and (3) the most important thing: money!

Governments, whether they be municipal, county, state or national, cannot create ripe conditions for job growth unless they have the money to do so. To date, your economic development policies have hindered governments who wish to remain fiscally sound. Example No. 1 centers on the government in which you oversee. When you entered office, the federal government enjoyed the largest financial surplus in its history. In less than a year, that surplus is gone. Granted, reactions from 9/11 have had an effect on the surplus. But your $1.3 trillion tax cut, if completed, cannot be paid for by the federal government if indeed it plans to create conditions in which jobs are created.

In March or April of 1995, Jack Campbell and Brian Montgomery, two members of your economic development team in Texas, requested that I fly out to Austin and talk to them about economic development in the South. This was shortly after you became governor of Texas. We talked shop and discussed some programs that were working in other Southern states. Before the meeting ended, Brian asked me what's the one thing Texas must do to create jobs. I told Brian that he and Jack must convince you to fund the Texas Department of Commerce properly. As you know, many cities and counties in Texas have a 1/2-cent sales tax to help fund econoomic development initiatives.

Example No. 2 centers around your economic stimulus package. Sure, it will undoubtedly help businesses get through some tough times, yet, it punishes state and local governments. In fact, because of the way the bill is written, 23 states, most of them in the South, will be affected by the law because its corporate tax code automatically conforms with the federal code. Tennessee, for example, could lose up to $250 million in tax revenue over the next three years as a result of the stimulus package. Officials in Virginia recognized the problem right away. They recently passed a bill that blocks any federal tax code changes from affecting state revenue.

In 2001, the American South lost over 300,000 manufacturing jobs, many of which were lost to locations outside the country. Many of those jobs were of the low wage variety and are being replaced quickly by the service sector. However, some of the better jobs lost could have been saved by retention incentives (an incentive totally foreign to Southern officials, but well known in the Midwest and Northeast), if only our states were better off financially at the present time. President Bush, you're right. The role of government is to create conditions in which jobs are created, in which people can find work. But government cannot do that if it is broke. And right now, many of our governments at every level in the South, are struggling financially.

Sincerely,

Michael C. Randle
Owner, editor and publisher
Southern Business & Development

Confidentiality of Incentives in Kentucky Ends

In April, the Kentucky Supreme Court ruled that the Kentucky Cabinet for Economic Development must make public incentive deals, not only from here on out, but from 1992 as well. Officials with Kentucky's state economic development group maintain that its credit and incentive files hold confidential information about companies that must not be made public. Regardless, a unanimous Supreme Court ruled the attorney general is entitled to view the records in order to protect state funds and taxpayer dollars. However, the Court ruled that information the Cabinet promised to keep private, would remain private and should not be disclosed to the public.

Two Steel Companies Seek Kentucky Tax Credits

Dearborn, Mich.-based Kasle Blanking and Pittsburgh-based LEO have filed with the Kentucky Finance Authority for tax credits for the building of two steel production facilities in the state. LEO has received approval for $17 million in tax credits over the course of 10 years and Blanking has received approval for $1 million over 10 years. Kasle Blanking is expected to build a $20 million steel processing facility that would employ 78. LEO is expected to build a $176 million plant at the Jefferson Riverport.

Trust Fund Falls Below $800 Million

North Carolina's Unemployment Insurance Trust Fund has fallen below the $800 million needed to avoid an unemployment insurance rate hike. The state's unemployment insurance trust fund currently stands at $609 million, thanks in part to a $237 million boost by the federal government in April. While a rate increase is not expected this year, North Carolina law states that if the fund falls below $800 million, unemployment insurance taxes must double. Unless there's a strong rebound in the Tar Heel State's economy this year, expect unemployment insurance rates in that state to double in 2003.

Editorial

Hyundai and Alabama: The South's Worst Kept Site Search Secret

By Mike Randle

As far back as late 2000 the word on the street was that Hyundai, not Toyota or Volvo, was on the hunt for a large U.S. manufacturing facility. Then late last summer, the rumor was confirmed by the company itself. As the fall of 2001 wore on, a short list of sites emerged. Georgia and Tennessee were in the running initially but were left behind early. That left Ohio, Mississippi, Alabama and Kentucky as potential states targeted by Hyundai officials, reports indicated.

Of the four states left on that small list for the once prospective massive project, Alabama stood out. In fact we reported a good five months before Hyundai made its announcement on April 1 that Montgomery, Ala. would indeed be the site for the plant. On April 1, 2002, Hyundai made our projection look pretty good.

Why were we so sure Montgomery, Ala. would be the site for Hyundai's new $1 billion, 2000-employee plant? Of the four states left on the list, three had sure-fire problems that would inhibit the automaker in one way or another. In Mississippi's case, Nissan was the problem. Nissan's $1 billion facility, located just north of Jackson, isn't completed as of yet. So, the Japanese automaker hasn't yet secured its pick-of-the-litter labor in the Magnolia State. Nissan officials stated publicly that another large automotive facility landing in Mississippi prior to its startup would threaten the expansion of its factory. Ohio's problems facing Hyundai can be summed up in two words: strong unions. And Kentucky? Its problem with landing Hyundai was the site it presented to the company. Unfortunately for Kentucky, it never secured the site. It was being held for ransom by the family who owned part of the land making up the site. Also, there was no way Kentucky could match Alabama's incentives. It has been reported that Kentucky offered Hyundai $123 million in incentives to choose a site that wasn't available in the first place.

That left one state in the running in our opinion.: Alabama. And that was clear to us in November of 2001. Hyundai officials maintained Alabama was chosen because of a high-quality work force, its location near U.S. population centers, a superb parts supply chain and the commitment of leaders in the state. All of that is true, but it's also true in Mississippi and Kentucky. We say Hyundai ran out of options in Kentucky and Mississippi.

Alabama has gained tremendous experience over the last 10 years at turning large automotive projects. It also offered a $252 million incentives package to Hyundai, which included costs for training 2,000 workers and for getting the 1,600-acre site, located just south of Montgomery, ready. The Hyundai announcement may have been the worst kept secret of any large project in the history of economic development in the South.

Some Want to Change Alabama's Incentives

The incentive package that has helped lure Hyundai, Mercedes and Honda to Alabama needs an overhaul says officials in Birmingham. Leaders in Birmingham maintain the state's incentive package favors manufacturers exclusively and does little to attract high technology, biotechnology, electronics and service sector industries. "Alabama's current tax system does not provide adequate tax incentives to support technology businesses currently located in the state or attract technology business to the state," said Jim Rotch, chairman of the Birmingham Area Technology Task Force. "Most of the tax incentives available in Alabama today are geared toward manufacturing and are generally not helpful to technology companies," he said. Rotch's group is pushing the passage of very specific incentives that the state can offer high tech industries, including a transferable research and development tax credit.

Kentucky Governor Sponsors New Legislation

Kentucky Gov. Paul Patton's New Economy Legislative Package was unveiled last quarter. The package is designed to modernize Kentucky's current economic development packages and on providing access to capital and tax credits for research and development for startup and growing tech companies. The governor's proposal includes making changes to the Kentucky Investment Fund Act (KIFA), which provides tax credits to companies and individuals who invest in state-approved venture capital funds. Some of the changes include:

· Permit KIFA investors and fund managers to participate in the management of a portfolio comany
· Change the definition of a "small business" as it applies to knowledge-intensive firms from a value of less than $3 million to a company with a value of less than $10 million
· Permit the transfer of tax credits granted under KIFA to tax-exempt entities
· Permit banks and insurance companies to participate in KIFA and permit the tax credit to be applied against the insurance premiums tax and the financial institutions deposits tax and bank franchise tax
· Modify KIFA to permit fund investments outside of Kentucky

Governors Look for Textile Industry Answers

Three Southern state governors got together for a meeting in Gastonia, N.C. to discuss solutions for the textile industry job meltdown. N.C. Gov. Mike Easley, Ga. Gov. Roy Barnes and S.C. Gov. Jim Hodges met in an effort to slow textile industry closures and layoffs that have resulted in the loss of more than 70,000 jobs in their states over the last three years. The meeting dealt with problems facing the industry in the U.S., such as relaxed import quotas and the dumping of cheap foreign cloth and apparel and price fixing by Asian producers. Asian devaluations during the past few years have led to a flooding of U.S. textile markets by Asian-made apparel. The three governors want the U.S. to enforce import quotas and put pressure on countries that refuse to honor agreements to open their markets to American-made products.

Corning Gets Tax Break in Oklahoma. But is it Enough to Build?

They began grading the land in 2001 at the site for Corning's new fiber optics plant in Oklahoma City. Regardless, the site remained void of any facilities. Corning put off plans to build the plant in OKC. The proposed $400 million plant, though, just received a startup incentive. The Oklahoma City Council approved a $22 million economic incentives package in March. As of this writing, it's unknown whether Corning will accept the incentives plan.

St. Augustine Voted "Best Tourist Town in the South"

Family Fun magazine has named St. Augustine the South's best tourist town for the fourth consecutive year. The magazine polled readers in five regions about how friendly and accessible tourist destinations were for families. Family Fun identified its Southern region from Louisiana to Maryland. St. Augustine received a rating of 81 out of 100, while Annapolis, Md., scored 76. Following those two tourist destinations in the South were Gatlinburg/Pigeon Forge, Tenn., and Wilmington, N.C.

Southern States Rank Low in Litigation Environments

If overall job creation and corporate investment is used as criteria, the South is indeed the most attractive place to operate a business in the U.S. But the South is not a perfect place to conduct business according to a recent U.S. Chamber of Commerce report titled, "States Liability Systems Ranking Study." The report was based on a survey of 824 senior attorneys and general counsel at insurance companies and public corporations with annual revenue of at least $100 million. The survey asked the participants to give each state a letter grade in categories such as judge competency, jury fairness, overall treatment of tort and contract litigation, punitive damages and treatment of class action lawsuits, among other items associated with litigation. The results showed the South is the least attractive region for litigation environments. Only Virginia, Kansas, North Carolina, Georgia and Tennessee had better than average scores. All other Southern states scored below average for litigation environments, with Texas, Louisiana, Alabama, West Virginia and Mississippi ranked 46th through 50th respectively in the report.

Virginia Senator Wants Changes to Incentive Program

Virginia Sen. Roscoe Reynolds, D-Henry County, wants the Virginia Department of Transportation (VDOT) to refund about $2 million to some local Virginia governments that were penalized for failing to secure tenants in state subsidized industrial parks. Through the Commonwealth Transportation Board, counties in Virginia can receive state funds to construct access roads and other infrastructure to new industrial parks. But if tenants are not secured at the parks in a given period of time, the money must be paid back to the state. Several counties and cities in Virginia, mostly in rural areas, have had to pay back almost $1 million recently because they could not attract users to their state improved industrial parks. Reynolds' bill would refund that money paid by local governments since 1994.

Virginia Incentive Payments Increase

New Virginia Gov. Mark Warner is serious about creating jobs in the Old Dominion State. And it's not just the Washington suburbs that Warner is targeting. Since January, Warner has given out about $7 million is incentives to attract 15 companies ranging from pharmaceuticals to textiles. Several of the companies receiving the incentives are locating in rural parts of the state. In comparison, former Gov. Jim Gilmore had doled out about $2 million in incentives to companies looking to site or expand in Virginia during the first six months of his term. Most of the incentives given out have come from the Governor's Opportunity Fund and from tobacco settlement money. Warner has said that the incentives are necessary to create investment and jobs in slow economic times.

State of Virginia Wants Refund From Evercel

Danbury, Conn.-based Evercel Inc., announced in 2000 that it was locating a 97,000-square-foot plant in Newport News. Officials with the City of Newport News, the State of Virginia and Evercel, agreed on an incentive package that included $1.25 million in city and state loans and over $600,000 in city and state grants. Evercel closed the plant in September of 2001, saying it was moving the operation to China. The company agreed to pay back the $1.25 million loan, but has yet to pay back the grant money. Now Newport News and Virginia officials are asking the company to repay the grants, citing the failure of Evercel to employ and invest what it agreed to during negotiations.

More Controls on S.C. Marketing Fund

A gubernatorial committee has concluded that South Carolina's Special Marketing Events fund, an entertainment and marketing account used by the Department of Commerce, should be used for economic development efforts exclusively. The Department of Commerce has come under great scrutiny by lawmakers over the last year over accusations that money has been mishandled. Sen. John Hawkins, R-Spartanburg, wants Commerce to deliver an annual report to the General Assembly, including a detailed account of who contributes to the fund and where money is spent. The Special Marketing Events Fund was created in 1991 and raises about $400,000 in corporate donations. Until now, the fund had no accountability and Commerce could spend the money any way it saw fit.

North Carolina's Eastern Region Ranks No. 1 in State

Last year was not one of the best years for the Tar Heel State. In fact, North Carolina lost over 60,000 manufacturing jobs in 2001. But it did have a positive net job gain of over 35,000 jobs last year. Regardless, it was the best year ever for the state's mostly rural eastern region, which is located east of Interstate 95. This is a true success story for a region that has been hit hard over the years by both hurricanes and low-wage business closures. Just five short years ago, the North Carolina's eastern region was one of the most impoverished in North Carolina, with very little happening in terms of economic development. Yet, 2001 saw 3,840 new jobs created in the area and the landing of two of the South's biggest deals for 2001 in Universal Leaf NA (1,100 jobs) and BSH Home Appliance (1,400 jobs).

West Virginia Governor Signs Tax Increment Financing Bill

Gov. Bob Wise signed a new economic development bill that would permit tax increment financing in West Virginia communities, thereby positioning the state on a more competitive level with other states. The legislation creates a system through which tax increment financing can be used to create development or redevelopment areas. It specifies procedures to be followed by government, the holding of public hearings and authorizes methods for amortizing debt to pay off bonds, after which revenues flow to an entity's property tax revenue system.

Birmingham Biomedical Center Breaks Ground

One of Birmingham's most important economic development projects in history broke ground in April. The 340,000-square-foot, $90 million Interdisciplinary Biomedical Research Center, part of the University of Alabama at Birmingham, should create as many as 1,500 jobs and attract $100 million annually in research funding when it opens in 2004.

North Carolina Film Industry Revenues Top $250 Million

The North Carolina Department of Commerce released statistics in May showing film, television and commercial production brought an estimated $250 million in revenues to North Carolina in 2001. Commerce Secretary Jim Fain said the 2001 revenues pumped into the state's economy by the film industry represent more than a 500-to-one return on investment on the Commerce Film Office's budget of less than $500,000. Movies filmed in North Carolina in 2001 included "Shallow Hal, AWalk to Remember, The Black Knight," and "Domestic Disturbance." Television shooting included "Dawson's Creek" and "Going to California."

First Study of Alabama's Automotive Industry Unveiled

Alabama's rapidly growing automotive industry, with thousands of jobs to come, already accounts for more than 26,000 jobs and a $1.3 billion annual payroll, according to a study released in May by the Alabama Automotive Manufacturers Association. In addition to the direct effect, the survey estimates that automotive manufacturing creates nearly 50,000 jobs at non-automotive companies in the state, generating another $1.5 billion in wages.

Environmental Cleanup at Oak Ridge Halfway Done

BNFL Inc., is well on its way toward completing one of the world's largest environmental cleanup projects -- the decontamination of three former Department of Energy uranium enrichment facilities in Oak Ridge, Tenn. BNFL was contracted by the U.S. Department of Energy in 1997 to decontaminate and decommission three large processing buildings at the former Oak Ridge Gaseous Diffusion Plant. Cleanup and removal of process equipment and millions of pounds of metals have been completed in the K-33 building. At the peak of its material removal work in K-33, BNFL and its 900 workers were clearing out 6,000 square feet of space a day and 2 million pounds of material a week. The cleanup project is largest radioactive decontamination job in history.

Texas Leads Southern States in Job Growth

Net new jobs created in the South in 2001 totaled 1,045,000 with Texas leading all states with 287,000 net new jobs created. In comparison, the West created 659,000 net new jobs, the Midwest 396,000 and the Northeast 338,000 jobs. Only three states in the South saw a loss of jobs in 2001.

The Southern States

Net Gain or Loss in Jobs 2001

Alabama 11,000
Arkansas 39,000
Florida 228,000
Georgia 37,000
Kansas 53,000
Kentucky 21,000
Louisiana --12,000
Maryland 79,000
Mississippi 15,000
Missouri --20,000
North Carolina 26,000
Oklahoma 45,000
South Carolina 36,000
Tennessee 90,000
Texas 287,000
Virginia 126,000
West Virginia --16,000

Source: Bureau of Labor Statistics

Virginia First State Since 9/11 to Call on Saudi Arabia for Trade Relations

The Virginia Economic Development Partnership's (VEDP) Division of International Trade recently brought home praise and successful results from its recent visit to Saudi Arabia. Receiving the Virginia delegation, U.S. Ambassador to Saudi Arabia Robert W. Jordan praised the Commonwealth as the first U.S. delegation to call on Saudi Arabian companies for international trade since September's terrorist attacks. VEDP's Division of International Trade has visited the Kingdom of Saudi Arabia annually for the past four years. Cumulatively, 24 Virginia companies have participated in these trade missions to obtain sales and commercial representation in Saudi Arabia. The Virginia Economic Development Partnership's Division of International Trade plans more than 20 international trade missions annually to promote Virginia products and services in foreign markets. VEDP also hosts groups of foreign companies seeking to buy Virginia products. In 2001, Virginia's international exports totaled $16.4 billion. One of the Virginia companies that accompanied VEDP during the 2001 trade mission to Saudi Arabia, Virginia Transformer Corp. of Roanoke, has reached over $500,000 in sales since the visit. It has also signed agent agreements with two Saudi companies for the continued sale of their transformers into Saudi Arabia. "Our company has benefited measurably as a result of my trip to Saudi Arabia along with VEDP, and I personally look forward to joining VEDP again in their next trip to Saudi Arabia," said Mr. Alok Mandal of Virginia Transformer Corp.

Bloomberg Cites Tennessee and Mississippi

Southern states' Tennessee and Mississippi were named No. 2 and No. 3 by Bloomberg Personal Finance as states in the U.S. that are "wealth friendly" for families and retirees. The magazine used state tax burdens as its primary criteria to rank U.S. states for its "wealth friendly" list. Wyoming ranked first and New York last.

Equipment for Nissan Plant Arrives at Mississippi State Port

Three-thousand-five-hundred tons of equipment bound for Nissan's plant in Canton has arrived at the Mississippi State Port in Gulfport. The equipment, the first to arrive from Yokohama, Japan, will be used by the Japanese automaker to build 250,000 Nissan SUVs and trucks each year. Nissan is expected to hire up to 3,500 workers when the $930 billion plant is fully operational next year.

Virginia, Maryland Argue Potomac Water Rights

Gov. Parris Glendening's smart growth Maryland government wants to require Virginia and its cities to obtain water permits to draw more water from the Potomac River. Maryland officials cite Virginia's pro-growth stance and resulting sprawl, saying its neighbor is threatening the future of the waterway. Virginia officials disagree, not only with the Potomac River issue but in Maryland's smart growth policies in general. A Supreme Court arbitrator heard testimony from officials from both states on the issue on April 24.

Five Hundred New Jobs Created in Tampa

Household International, Inc., the parent company of lender Beneficial, is opening a collections center in Tampa that will house 500 workers. The company is expanding existing facilities in Tampa Bay. Officials with the company cited an attractive incentive package as the reason for expanding in Tampa.

Second Major Supplier to Nissan Starts Construction

M-TEK, a maker of plastic molding components for the automotive industry, is the second major supplier to Nissan's plant in Canton to break ground. The company's 220,000-square-foot facility will house 150 workers.

Japanese Company Picks South Carolina

A Japanese manufacturer of textiles for the automotive industry has chosen Wateree, S.C. for its first U.S. plant. Kawashima is expected to employ 100 at the plant.

Sara Lee Begins Campus in Winston-Salem

Sara Lee is expanding its operations in Winston-Salem. The apparel division of Sara Lee is building a campus in the city to consolidate some 6,000 employees that are located in the area. The company is adding nearly 400,000 square feet to its existing 255,000-square-foot facility.

Honda Considering Another U.S. Plant

Strong demand for its cars and trucks has Honda officials considering building another U.S. plant. Honda has plants in the Midwest and Canada and built its latest facility in Lincoln, Ala., which opened last year.