2003 SB&D 100 State Summary

Mike Randle, Editor

With 32 total deals of $30 million in investment and/or 200 announced jobs, Alabama enjoyed a record year in 2002. A third-place finish per capita is the state's best ever and 280 points tops its best SB&D 100 mark of 260 in 1999. Driving Alabama's economy is most certainly the automotive industry with 20 of its 32 deals earning points in that sector. And, for the fourth year in 11 years, Alabama garnered the Deal of the Year in Hyundai. No state has turned more. "Deal of the Year" and "State of the Year" has never been accomplished in the same year by any other Southern state. A magical year for Alabama with its metros and rural areas benefiting equally.

Another disappointing year for the Razorback State. This year marks the third-in-a-row of a sub-100 point total and it makes little sense. Arkansas has great leadership at the top and exemplifies professionalism on the state and local economic development levels. It wasn't always that way. Arkansas also enjoys a current business climate that's one of the best in all the South. But the big deals continue to be few and far between. Arkansas is due for a big year.

With 645 points, Florida won its second "State of the Year" last year. With 360 points this year, it didn't win its third. But with 45 big deals on the board, second only to Texas, the Sunshine State at least showed, unlike some of the South's largest states. Nonetheless, a point total close to one-half of last year's total is nothing to shout about. One bright spot: Tampa Bay held on to the "Mega-Market of the Year" title and Jacksonville and Orlando came in second and third in the major market division. South Florida, on the other hand, did nothing. Rural Florida was non-existent in this year's ranking, too. Considering the economy, Florida's year is best described as holding fort, but barely.

This year, like last year, Georgia saw its big deals fall through the floor. It's the second consecutive year the Peach State has set its lowest mark in "100" history. Last year it was 145 points and this year saw just 135. Typically, Atlanta alone would ring up 145 points easily and the state would generate its typical 380 to 400-point slot. For the first time in 11 years, Alabama and Mississippi both earned more points than Georgia. Regardless, Georgia will be back with the former Bank of America exec Glenn Cornell at the state helm. That was a great hire. And the Daimler/Chrysler deal, which won't count until the 2004 SB&D 100, is a good starting point.

With 80 points, Kansas isn't far off its typical points slot of around 120. With an economy like we have now, especially that found in the aviation sector, it's a wonder Kansas earned 80 points. The state is tied in a big way to aviation. We learned in the five years we've covered Kansas that their state development agency is one of the best in all the South (you will truly enjoy working with them). Like Arkansas, their business climate is superb right now.

Kentucky is one of just five Southern states that increased their point totals this year from last year's SB&D 100. But Kentucky is normally a 250-point-plus state. The Bluegrass State posted 120 points, a meager increase from a dismal 100 points earned in 2002. Yet, something positive must be written about turning more big deals this year than last year in a stick-in-the-mud economy. We just wrote that something.

We are now convinced that Louisiana will reinvent its economic development strategy every time the wind blows. They did it in the late 1990s and saw two or three years of positive results after four or five years of significant struggles. So what do they do? They dump that strategy for another that takes them a few steps back. Why? Only one Job 100 deal from Louisiana made our list this year, with the bulk of points earned coming from the Investment 100. When will Louisiana learn how to turn big job deals? Probably when the Louisiana Dept. of Economic Development realizes you can't put folks in a position to turn deals when they have never turned one before.

We are so out of touch with Maryland that I'm not sure their point total this year is correct. If it is, it sets a new record low for any Southern state in the history of the Southern Business & Development 100. Twenty-five points? Are you kidding? At least Maryland is consistent. They earned 100 points two years ago, 50 last year and 25 this year. Fortunately for Maryland, it's not possible with our points system to earn 12.5 points next year or 6.25 points in 2005.

What can you say about a state that for eight straight years clearly indicated its slot was around 100 points, yet jumped to 180 in 2001, 240 in 2002 and 205 this year? Can you say, "emerging economy?" No. 1 for the second straight year per capita and is really finding its place among New South states. From the glam casinos on the Mississippi Gulf Coast to the growing automotive sector in the central part of the state to the distribution hub that makes up it northern regions, the Magnolia State is generating big deals like never before.

Pretty good year for Missouri considering the economic environment in the state. Missouri was helped out by a few big announcements in St. Louis and Kansas City. Regardless, Missouri has got to find a way to fund its state economic development agency better or the 165 points earned this year will be the high for years to come. The Show Me State must also implement creative programs to create good jobs in its rural regions. But all we see in Missouri are cuts in services.

The grand dame of Southern economic development is still struggling. Hindsight is 20-20, if not 20-08, which is even more accurate. If only North Carolina had fallen head-first into automotive 10 years ago, where would they be now? They'd be near the top. But that's old news. North Carolina could vault itself soon into the automotive arena like no other state in the South. Mark our words in 20-08 ... uh, 2008. There will be at least two massive automotive assembly plants in the state by then and dozens of new suppliers. Then again, only if the fickle people of NC give the go ahead. NC did turn some nice pharma deals. Other Southern states targeting that sector have come up empty handed to date.

Another solid year for the Sooner Nation with eight deals making the Job 100, or fifth-best in the South in that important category. Up 65 points from last year, one of just five states that improved their position. Oklahoma City proved to us two years ago they are a large Southern market that's for real. Oklahoma turned 23 big deals that made our four lists and placed fourth among all states in the South per capita in points earned. Another sign that small states in the South are weathering this economy better than the big ones.

The Palmetto State saw its points drop by 85 from last year, but it still turned 25 big deals. Yet, what we've seen over the last couple of years is a declining South Carolina Department of Commerce. This is the state agency we have crowned time and time again over the years as the most consistent in all of the South. That consistency is quickly waning because of a lack of funding and turnover within the department. Those moves couldn't come at a worse time considering the world's automotive industry has stopped knocking on the South's door and has simply commenced to knocking the door down.

Placed second to Virginia in the Job "just missed deal" category, my favorite of the four categories we publish. Tennessee matched its overall SB&D 100 points it earned last year with 270. But the Volunteer State has seen better years, such as a 420-point year in 2001 and a 395-point year in 2000 when it won SB&D "State of the Year" honors. While it was a solid year for much of Tennessee, it was certainly a great one in parts. Memphis and Knoxville won "Major Market of the Year" and "Mid-Market of the Year" respectively in this SB&D 100.

Over the last 11 SB&D 100 years, no state in the South has seen such incredible highs and lows than the Lone Star State. Isn't it ironic that in 1997, when George W. Bush was governor of Texas, Texas' point total surged over 1,300, a total that doubles the record mark of any other state in the South. Now that Bush is president, Texas' points go to the other extreme. From 1,320 points in the 1997 SB&D 100, to 675 in 2001, 610 in 2002 to this year's paltry total of 355 points, Texas is in a job generation and capital investment freefall that isn't stopping. But with the announcement of Toyota in San Antonio (a 2004 "100" deal), the bottom has now been reached.

The Southern state that holds the most SB&D 100 "State of the Year" crowns is dealing with its own point decline. In 2001, Virginia posted 650 points and earned its third "State of the Year." In the 2002 SB&D 100, the Old Dominion rung up 465 points and received its third honorable mention. No trophy this year, though. Like Florida, Virginia is barely holding its own with 355 points, another sign that new economy Southern states have ridden the crest and are now rubbernecking at the site of the train wreck on the back side of the hill. Yo, Virginia! High-end manufacturing is hip in the South now, haven't you heard?

Jan Dickinson, the delightful spokesperson for the West Virginia Development Office, was extremely reluctant when we asked for the state's annual deal list in February. She said, "Michael, I'm afraid we didn't do too much this year." Well, West Virginia almost doubled its points from last year's SB&D 100 (second this year to Alabama in points gained from the year before), earning the state a honorable mention. For the second straight year, WV placed second to Mississippi in per capita deal points.

* Points per million residents. ** Per capita ranking based on points earned per million residents.