QUIZ

According to the 2000 Census, there are seven markets in the South with two-million or more in population. Name them. If you want to make the question more difficult, name them in order from largest to smallest. (Answer at bottom of section)

Is Toyota Looking?

The Mexican financial daily El Economista claims that officials with Toyota are searching sites in Mexico and the American South to build a large assembly plant . El Economista said officials from the Mexican state of Sonora got the news from Toyota executives during a recent visit to Japan. The publication did not indicate where in Mexico or the South Toyota was looking. Currently, Toyota is building an engine plant in Huntsville, Ala. Rumors are swirling that Toyota is not the only automaker looking at the South for a new facility. Reportedly, Volvo and Hyundai are on the prowl as well.

Ford Mum on Plant Expansions in the South

Talk of a $500 million expansion of Ford's Hapeville, Ga., plant was hushed last fall when the automaker announced it would build a supplier campus in Chicago. But rumors of changes at the 2,400-employee facility continue to swirl. Georgia economic development officials maintain the plant will expand, but no time table has been set. However, efforts to find land for an expansion of the plant seem dead.

The Hapeville plant, which was opened in 1947, stands out among Ford's other assembly operations being named the most efficient car assembly facility in North America in the 2000 Harbour Report. The Harbour Report, which reports on the automotive industry, stated it was the first time in the report's history that a U.S.-owned plant led their rankings. Regardless, Blueovalnews.com, a Michigan-based Web site that claims it is the "independent voice of the Ford community," says the company will consolidate Taurus production to Chicago and close the Hapeville plant by 2004. Ford officials, however, strongly maintain that no closures of any of its plants are planned.

In a related story, rumors surrounding an imminent expansion of Ford's plant in Norfolk, Va., continue to be strong. Ford officials continue to say nothing regarding an expansion of the Norfolk facility.

Florida Accounted for One in 10 Jobs Created in 2000

Overall, 2000 was a great year for Florida's economy. Florida's strong job growth continued even in the face of a decelerating U.S. economy. Florida accounted for more than one in ten new jobs created in the U.S. in 2000, officials with the State of Florida claim. An especially bring spot for Florida's economy has been the rebound in international trade with Latin America.

Educational Attainment in the South

Which state leads all other Southern states in educational attainment? Got to be Maryland or Virginia, right? How about Georgia or North Carolina? Try Kansas. The state of Kansas sports an 89.3 percent high school graduate or more rate, which leads all other Southern states. In second place in educational attainment is Oklahoma (86.2%), followed by Maryland with 85.2%. Kansas' educational attainment leads all other states in the U.S. except for Alaska, Utah, Washington and Wyoming.

Magazine Honors Virginia's ED Efforts

Site Selection ranked one of Virginia's economic development projects among the publication's highly acclaimed "Top 10 Deals of 2000." Capital One's $700 million expansion and creation of 8,000 new jobs made the top 10 list. In addition to capturing more deals in the magazine's top 30 ranking than any other state, Virginia's state level ED arm, the Virginia Economic Development Partnership, was named the Top Development Group in the same issue. In 2000, Virginia broke all time records for announced employment and investment with $6.5 billion and 48,771 new jobs. Site Selection reported that Virginia ranked No. 1 for the highest per capita job creation in the U.S.

Atlanta, Dallas and Austin Rank High in Most Popular Destinations

Austin ranks 11th on a list of most popular U.S. destinations for people to move to last year and Dallas moved up to second. U-Haul International Inc.'s national migration trend report shows Atlanta was the most frequent destination for rented moving vehicles and trailers last year. Atlanta rose from ninth place last year to take the top spot. Dallas, previously fourth place, moved to second. New York had topped the list for the past two years but dropped to third in 2000.

Orlando Ranked No. 1 in "Gazelle Jobs"

The Progressive Policy Institute has released the Metropolitan New Economy Index, which covers the 50-largest metro areas in the country. The study ranked Orlando as the No. 1 market in the U.S. in the creation of "gazelle jobs," or companies with annual sales revenue growth of 20 percent or more for four straight years as a share of total employment.

Greenville, Ala. No. 1 in "Home Towns" Ranking

An internet startup company based in Ithaca, N.Y., has compiled its first ever "Home Towns Index" to determine which of the country's 28,000 cities are the best hometowns. The index found that Greenville, Ala., with a perfect score of 100, is the top-rated town of 28,000 surveyed in the U.S. What made Greenville "perfect?" The index uses a system that includes how long people have lived in the town, how active they are in community programs, church membership, civic organizations and the number of meeting places, such as restaurants, bars, cafes and community halls in proportion to population.

Citibank Breaks Ground on Expansion of Northern Kentucky Operations

Citibank broke ground on June 27th on an expansion of its Citicporp Credit Services cards operation in Northern Kentucky that could create up to 2,000 new jobs. Citibank is building a new 180,000-square-foot facility on its 81-acre campus in Boone County. The new facility is scheduled to open in mid-2002.

The existing Citicorp Credit Services operation in Northern Kentucky, a 145,000-square-foot facility, opened in 1996 and employing 940, provides collections, credit risk detection and customer service for Citibank card members nationwide. The new building will support the expansion of these services and enhance Citibank's capacity for serving customers.

"Citibank's ongoing success and subsequent expansion is powerful testimony to the advantages of doing business in Northern Kentucky," said Danny Fore, President of Northern Kentucky Tri-ED. "The 2,000 jobs represented by Citibank's expansion rank it among the largest new jobs projects to be announced in the U.S. this year and the second-largest in Northern Kentucky Tri-ED's history, said Fore.

Top Three Make Top Automotive, Too

Statesville, N.C., Bowling Green, Ky., and Mooresville, N.C. are all included in this edition's profile of the Top Automotive Supplier Locations in the South. They also made up Nos. 1 through 3 respectively in Site Selection's Top 100 U.S. Small Towns for Corporate Facilities over the last 10 years. In fact, of the top 15 small towns in the U.S. cited by the magazine, 10 are in the South, including Sanford, N.C. (6th), Tupelo, Miss. (8th), Plaquemine, La. (9th) and Greenville, Tenn. (12th).

Tennessee Renews Commitment to Rural Success

Gov. Don Sundquist, Rep. Les Winningham and EDC Commissioner Alex Fischer have announced a redesign of a state program to renew the state's commitment to rural economic development in Tennessee. The Special Enhancement County Program replaces the state's 14 year-old Distressed Counties Program with a renewed effort for special assistance to the state's rural areas with high unemployment and low income. The criteria for a Special Enhancement County are based on unemployment rates, per capita income and poverty rates. Any Tennessee county that ranks in the 10 most depressed in any one of these categories will be designated. Under the old Distressed Counties Program, the number of counties in Tennessee that were designated as economically distressed fell from 40 in 1987 to just two in 2000. Under the rules of the new program, 22 rural Tennessee counties would be eligible for special assistance.

New Florida Law Helps Rural Communities

Florida's rural and statewide job creation efforts got a boost on July 1 when a new law aimed at increasing the overall economic development to the state took effect. The new legislation (HB1225), authorizes an increase in the Qualified Target Industry (QTI) Tax Refund Program commitment cap from $30 million to $35 million. The incentive program is used to encourage businesses to expand to rural areas of the state. The new bill also expanded the list of businesses eligible for the Rural Job Tax Credit and creates Rural Enterprize Zones. Prior to July 1, Zones in rural areas were limited to five square miles. The new law increases the size to 20 square miles.

Industry Week Cites Houston

Industry Week magazine has ranked Houston as one of 12 gold medal World-Class communities for manufacturing for the second consecutive year. Portland and San Jose were the only other U.S. cities on the list. Bucking a trend, manufacturing jobs in Houston have been growing five times faster than the national average

Commerce Chief Takes Office in North Carolina

Jim Fain has been sworn in as North Carolina Secretary of Commerce. Fain, a native of Hendersonville, was serving as acting secretary when Governor Mike Easley chose him this month to fill the position full time. Fain had been the department's assistant secretary for economic development since July 1999.

Letters

May 21, 2001

Michael C. Randle
Southern Business & Development
2100 Riverchase Center Ste 110
Birmingham, AL 35244

Dear Michael:

The California energy crisis will occur twice: Once as tragedy, one as comedy. The tragic part is happening now. The comedy will soon follow, when we look back and realize how the people who created the crisis are the same ones to whom we are turning to help solve it. We are, of course, referring to environmentalists. Not big bad energy companies.

By then, we will see that the energy crisis is not an isolated problem, but the latest in a series of shortages that regulators and environmentalists have inflicted on housing, water, roads, gasoline, airports, and infrastructure in California.

These are the same people who shut down the production of housing in California, then wonder why young people cannot buy new homes. These are the same people who closed gas stations by the hundreds and stopped new refineries, then wonder why gas is more expensive here than any other place in the country. These same people opposed new airport construction, then they gripe when their flights are delayed.

Like an infant who wants everything all the time all at once, they refuse to make choices. And now we are paying the price while they play the blame game.

For people in and out of California, the energy crisis is a cautionary tale of environmental extremism. And that is why I wrote this commentary. Hope you find this interesting enough for your magazine. I am a San Diego business owner.

Sincerely,

Brad Boswell
4865 Campanile Drive
San Diego CA 92155
619-977-0285
dupont309@aol.com

Editor's Take on Boswell's Letter

June 4, 2001

Brad Boswell
4865 Campanile Drive
San Diego CA 92155

Dear Brad:

There's no question California's environmentalists sport the largest teeth of any state in the U.S. Here in the South, some of our markets are growing some major enviro-teeth, too. Those teeth are largest in Atlanta, Northern Virginia, Houston and Dallas/Fort Worth. Like where you live, anywhere where there is gridlock, bad air and too many people creates a ripe situation for environmentalists.

To us in the South, gridlock, bad air and too many people are how we have viewed California for decades. We have recruited your businesses based on those factors, in part. There over 33 million people living in too small of a space in California. Sure, your state is large, but much of it is undevelopable, set aside for agribusiness or protected. That was the same problem the Northeast and parts of the Midwest faced when those regions lossed thousands of businesses and millions of people to the South in the 1970s, '80s, '90s. They had too many people living in too small of a space.

Brad, California's environmentalists' voices are strong and they are not all wrong, especially when they target California's major markets. If there ever was a state that needed to be watched carefully by environmentalists, it's California. Like Florida in our region, California is a one-of-a-kind state; a fragile environment.

But we do agree with you that they have gone too far. Electric power is as basic of a service as there is. To interfere with the capacity of such a basic commodity is ludicrous.

Sincerely,

Michael C. Randle
Publisher
Southern Business & Development
mike@sb-d.com

Downtown Dallas Suffering From "Empty Space" Syndrome

Even though North Texas has had a real estate boom in recent years, downtown Dallas has not benefited. In 2000, Dallas has a downtown vacancy rate of 22.7%. The figure came from a new national study from Integra Realty Sources. The report indicates that Dallas' CBD has more than 6.8 million square feet of empty office space.

Nashville Company Gets Creative to Get and Keep IT Workers

The labor pool and the technology industry in particular is being affected by the young, transitory nature of the information technology (IT) worker. One in 10 IT job openings will be filled nationally, and in Nashville, two out of every six will be filled. The turnover rate in the IT work force ran about 25 percent in 1999. But filling the jobs is only part of the picture for the IT professional. Once they are hired, there are no promises made that they will stay, and the cost of replacement is high. The IT worker is typically young and is not interested in a retirement plan, but whether or not they enjoy their job. Some Nashville IT companys are looking for ways to keep their existing workers. New Century Technology started a program aimed at keeping its IT employees happy with offerings of free breakfast, free snacks and a variety of other perks that have included free car washes. Brentwood-based Oasis Software offers its employees a yearly "technology allowance" of $500 to buy whatever computer gear they want for their personal use.

African-Americans Reverse Migration

For much of the 20th Century, Southern blacks migrated to major markets like Chicago, Detroit and New York in an effort to find a better life. In the 1950s and 1960s especially, hundreds of thousands of Southern blacks left the South looking for better jobs, educational opportunities and quality of life.

The recently released 2000 Census shows that trend has changed in a big way. From 1990 to 2000, over 3.6 million African-Americans migrated to the South. Over 460,000 migrated to Atlanta during those 10 years. Atlanta led all U.S. markets in black population gains from 1990 to 2000.

To give you and idea of how large a migration that is, you only have to look at how many people, regardless of race, and regardless of whether they migrated or not, were added to the Northeast and Midwest's population bases from 1990 to 2000. The Northeast increased its population as a whole by just one million persons from 1990 to 2000. The Midwest added 3.6 million during that period. In comparison, the American South added 11 million people from 1990 to 2000 and the West added just over eight million.

QUIZ

Five markets in the U.S. grew by more than 1,000,000 persons between April 1, 1990 and April 1, 2000. Two are in the South. Name them. (Answer at bottom of section)

Triangle Ranks Eighth in National Rankings

The Raleigh-Durham-Chapel Hill region is ranked 8th among the nation's most-wired cities, according to an annual study by Yahoo! Internet Life magazine. The Triangle region was the only North Carolina location among the top 20 in the survey. California dominated, with three of the top five cities, including San Jose, San Francisco, and Orange County. Austin-San Marcos, Texas ranked 3rd. The rankings, published in the April issue of the magazine, are based on a variety of data, including percentage of households online, proportion having high-speed connections, amount of online spending, local business presence on the Web and sites for local government services.

North Carolina May See More Economic Development Incentives to Recruit Industry

An effort has begun in North Carolina to expand the William S. Lee Act, which provides tax credits to companies who bring jobs and investment to the state. A bill has been filed by Senator Charlie Albertson, a Democrat from Duplin County, that would lower the population threshold that towns previously had to meet to take advantage of the most favorable incentives. Wealthy urban towns such as Mecklenburg and Wake that can't qualify for these incentives have towns that would qualify because they have blighted areas. The bill would allow those municipalities to take advantage of the credits. Another change Albertson proposes is that towns whose population currently exceeds 5,000 can access development zone incentives, which are equal to those for the poorest, most rural counties. Under the bill, about 100 N.C. towns would qualify.

N.C. Ranks Third in Film Revenue

A N.C. Department of Commerce report says movie and TV producers spent $250 million there last year, ranking the state third in the country in film-production revenue. North Carolina hosted 81 major productions, including 19 feature films, 56 television-series episodes and six made-for-TV movies, compared with 65 productions in 1999. Production-related jobs for North Carolinians rose to 31,000 last year, up from 26,000 in 1999. Among the productions in 2000 were "Hannibal" with Sir Anthony Hopkins in Asheville; "The Black Knight" with Martin Lawrence; "Domestic Disturbance" with John Travolta; and the TV series "Dawson's Creek" in Wilmington; and Spike Lee's "The Original Kings of Comedy" in Charlotte.

RF Micro Devices Locates in Orlando

In June, Florida officials finally got what they have been targeting for years; another semiconductor manufacturing operation. North Carolina-based RF Micro will co-locate at the Cirent Semiconductor facility located in Orlando. The deal is small for semiconductor standards ($58 million, 20 new jobs), but it is a new semiconductor deal. The semiconductor industry is a sector Enterprise Florida, the state's primary economic development arm, has been recruiting hard for more than five years now.

San Antonio and Austin Join Forces for Biotech

San Antonio and Austin have joined forces to develop the next big biotech region in the South. The San Antonio Life Sciences Association (SALSA), recently became the San Antonio Austin Life Sciences Association when the Austin Chamber asked to join the organization that started in San Antonio to build on the area's biotech foundation. That helps Austin by linking it to San Antonio's biotech infrastructure, including a medical school and the Texas Research Park. San Antonio benefits from Austin's engineering and entrepreneurial depth.

QUIZ ANSWER No. 1

There are seven markets in the South with two-million in population or more. They are: Washington/Baltimore/Northern Va.: 7.6 million; Dallas/Fort Worth: 5.2 million; Houston/Galveston/Brazoria: 4.7 million; Atlanta: 4.1 million; Miami/Fort Lauderdale: 3.9 million; St. Louis: 2.6 million; and Tampa/St. Pete/Clearwater: 2.4 million.

QUIZ ANSWER No. 2

Between 1990 and 2000, five large U.S. markets grew by an astounding 1,000,000 persons or more. The two that added one million in population or more in the South were Dallas/Fort Worth (1.18 million) and Atlanta (1.15 million). The other three U.S. markets to add one million or more the last decade were New York (1.65 million), Los Angeles (1.84 million) and Phoenix (1.01 million). Of all U.S. markets that were close to adding 1,000,000 people, Houston was the closest with 938,000. Of the nation's 50-largest markets, among the slowest growing were Pittsburgh, Buffalo, Rochester, Milwaukee, Cleveland and New Orleans. Some of those growing like mad between 1990 and 2000 were Orlando, Denver, Portland, Las Vegas and Austin.