A Coincidence or Not?

Florida added 138,000 net new jobs to its economy in 2001. Texas added 92,000. The two states led all other Southern states by a large margin in net new jobs last year. In fact, Florida and Texas were two of only seven Southern states (out of 17) that showed a net gain in jobs created in 2001. However, the next highest Southern state adding jobs was Virginia with 11,000, certainly nothing close to the totals seen in Florida and Texas. Of the Southern states that lost jobs, Georgia, with a net loss of almost 90,000 jobs, was the big loser in 2001. Obviously, the two states in the South that have direct relationships with President Bush are ... you guessed it, Florida and Texas. We all know that the services sector is currently the largest generator of new jobs in the South. But which sector was second for the most jobs created in Florida and Texas in 2001? Interestingly enough, it was the government sector, where 23,000 net new jobs were created in Florida and 29,000 generated in Texas. In comparison, South Carolina lost 12,000 government jobs and Georgia lost 1,000. A coincidence? Maybe.

2001: Great Year for South's Automotive Industry

Last year will not be remembered as a banner year in the South. Like all other regions, the South's economy took a beating, especially in its rural regions. Yet, 2001 will be remembered as a banner year for the automotive industry in the South as three massive automakers -- Nissan's plants in Smyrna, Tenn., and Canton, Miss., Mercedes in Vance, Ala., and Honda in Lincoln, Ala. -- either built or expanded plants. Total employment at the four plants will reach 16,000 jobs sometime next year. Spin off employment figures from suppliers during calendar year 2001 are not available as of yet, but you can bet that figure will be close to 11,000 new jobs region-wide. While Nissan, Mercedes and Honda were gearing up in 2001, another foreign automaker was preparing its entry into the South as well. Korean media reported last quarter that Alabama was the leading candidate for a proposed $1 billion Hyundai Motor Company automobile plant that is expected to employ 2,000 initially. Other Southern states reportedly in the hunt for Hyundai are Kentucky, Virginia, Tennessee, Mississippi and Georgia. Look for an announcement from Hyundai in March or April. It's our opinion a site located just south of Montgomery, Ala., on I-65, is where the plant will be built. Of course, we've been wrong before -- once. In 1993 we correctly projected that Mercedes would build in Vance, Ala. In 2000 we reported accurately that Nissan would choose a site north of Jackson, Miss. However, in 1999, we reported that Honda would choose Opelika, Ala., for its new plant. Honda chose Lincoln, Ala.

Nissan Official Warns Mississippi About Another Auto Plant

On December 13, 2001, Jim Morton, Nissan North America's senior vice president for finance and administration, sent a letter to Mississippi Gov. Ronnie Musgrove expressing "great concern" if another auto manufacturer located in the central Mississippi area. In the letter, Morton wrote that another automotive plant locating within 80 miles of Nissan's plant, which is under construction in Canton, Miss., could endanger any future expansions of the yet-to-be-completed facility. Morton did not mention a competing automaker, but the letter was received by Musgrove's office mere days before he left on a recruiting mission to South Korea to speak to officials with Hyundai. Hyundai, it has been widely reported, is expected to choose from among a handful of Southern states for a $1 billion plant that would employ 2,000 workers. Musgrove has said publicly that he would not limit sites in any part of the state to any company looking to land in Mississippi.

More Nissan Suppliers Landing in Mississippi

A second wave of first-tier suppliers has found their way to Mississippi. The $950 million Nissan plant, located just north of Jackson in Canton, Miss., has recently drawn M-Tek, a supplier of interior trim components; TKA Fabco, a body stamping company; Unipres USA, another body stamping supplier; and Yorozu America, a suspensions component manufacturer. To date, suppliers to the Nissan plant represent $200 million in investment and more than 2,000 new jobs. The $950 million Nissan plant itself will house 3,500 employees.

Tampa Bay No. 1 in Job Growth

The U.S. Department of Labor's December Jobs Report ranked Tampa Bay as the No. 1 market in the U.S. in job growth this past quarter. Following the Tampa-St. Pete-Clearwater MSA are six other Southern markets including three other Florida markets placing in the top 10. West Palm Beach-Boca Raton ranked third, followed by Orlando at No. 4 and Jacksonville at No. 10. Tampa Bay's unemployment rate stood at 3.7 percent in October compared to 5.4 percent nationally. Tampa Bay was named the South's No. 1 major market in 1998 and 1999 by Southern Business & Development.

Fastest Growing Job Markets

1. Tampa-St. Pete-Clearwater, Fla
2. Fayetteville-Springdale-Rogers, Ark.
3. West Palm Beach-Boca Raton, Fla.
4. Orlando, Fla.
5. Rochester, Minn.
6. Laredo, Tex.
7. Northern Virginia
8. Sheboygan, Wis.
9. Madison, Wis.
10. Jacksonville, Fla.

Source: U.S. Department of Labor's December report

Georgia has Best Roads, Followed by Alabama

The Road Information Program (TRIP), put out a report in December that ranked states' road systems from best to worst. TRIP's road condition evaluations are based on data from 2000 released by the Federal Highway Administration. According to the report, Georgia has the best roads in the country, followed by Alabama, Wyoming, Florida and Kansas, meaning four of the top five states cited for great roads are states in the American South. The state with the worst roads to drive? According to TRIP's report, that would be California, followed by Massachusetts, Missouri, Connecticut and Louisiana, meaning two of the five worst road systems are in the South.

Whoa, Good Buddy. Truckers Say Tennessee has the Best Roads

In its annual survey of truck drivers, Overdrive magazine reports that Tennessee's highway system is the best in the nation. The survey places Tennessee ahead of Florida, Ohio, Texas and Indiana. According to truck drivers who responded to the survey, the nation's worst roads are in Pennsylvania, New York, Illinois, Arkansas and Louisiana. NOTE: Former Tennessee Gov. Ned Ray McWherter, one of the South's most respected economic development governors over the last 15 years, made improving the state's road system a major priority. You can read more information about transportation issues in the South by turning to the "Transportation" section in this edition.

Incentives Being Reviewed in Louisiana

The Louisiana Department of Economic Development will recommend changes to its incentive packages to prospective industry when lawmakers return to Baton Rouge for the spring legislative session. The changes are being sought so that Louisiana can compete more favorably with other Southern states. In addition, other economic development issues such as work force training, tax cuts for business, and infrastructure improvements, are expected to be delivered to the legislative table by LDED. Economic development officials in Louisiana are retooling their state department altogether. In the summer of 2001, the idea of "business cluster" arrangements within LDED took shape. These clusters, numbering more than a dozen and including biotech, oil and gas, high-tech, plastics, etc., each have a primary contact at LDED. The reworking of Louisiana's economic development efforts have come after Mike Foster's Louisiana Inc. program was voted down by state voters. The cluster initiative may indeed be the most unique and controversial state economic development program launched since officials in North Carolina implemented official regional economic development departments in the mid 1990s.

Tax Credits Reduced in Missouri

In an attempt to save state money, Gov. Bob Holden has cut $7.5 million from the cost of tax credit programs administered by the Missouri Department of Economic Development. Tax credits were reduced in several brownfield programs, the film industry, certain infrastructure programs, job training, neighborhood preservation, R&D among others.

Editorial

Like the Flu, it Passes from State to State

by Mike Randle

It bred and festered many years ago, yet the deadly-to-new-deals strain came back to life in Georgia in the fall of 2000, when lawmakers and of course the media, questioned why the total value of certain state incentives to locating companies weren't public knowledge (media outlets have been known to file lawsuits to expose the value of incentives given to industry, especially to companies making large job and investment announcements). Furthermore, Georgia Senate Minority Leader Eric Johnson asked state officials in December to not only disclose the incentive values, but also the names of the companies receiving the benefits. Now the disclosure malady has moved from Georgia to Kentucky and on to South Carolina.

In Kentucky, keeping tax incentives a secret has been condemned by Attorney General Ben Chandler. Kentucky officials have given out over $3 billion in tax breaks to locating industry since 1992. Chandler wants the incentive values open to the public as does Jim Wayne, a Democrat from Louisville. So far, Kentucky's Cabinet for Economic Development has successfully defended its right to protect job and investment making companies from the incentive "media guantlet." In fact, the Cabinet has spent tens of thousands of dollars defending that right in a lawsuit against Chandler, who wants the right to read all incentive files.

As of this writing, no such lawsuit has festered in South Carolina. However, newly appointed Department of Commerce head buffalo hunter Jim Morris, has been proactive enough to realize this particular strain could be a serious one for dealmaking in his state. One of the first items on his agenda was to give his opinion on the matter. Morris maintains that his department's finances should be made public (this, after the Department under Wayne Sterling's direction was scrutinized to the last penny), however incentive secrecy must remain, both during and after a company has located in the Palmetto State.

Only two states, Minnesota and Maine, make all incentives to locating companies public. Last time I checked my deal radar -- the most powerful and accurate radar of its kind on Earth -- Minnesota and Maine were the only two states that didn't register a blip. Here's my take: It's time to finally cure this malady, primarily brought about by those who feel a need for this information to gain readers, therefore advertisers and those who have no clue about economic development and corporate security.

Since these folks have no clue, I'd like to clue them in. No large investments, many of which exceed a billion dollars -- meaning millions to a state in tax revenue for decades -- will be made if there is even a hint that the state's media can have total access to what was agreed upon during the making of the deal. If that was the case, the media could easily take their own spin, therefore potentially carving up the deal and the company making it. Officials of large corporate concerns are not stupid. Stupid people don't build and run the largest corporations in the world (sans Enron). These people believe very strongly that the media does not understand the value of their multi-million dollar investments in the short term nor in the long term (is there a single business writer, editor or publisher who holds a Certified Economic Degree in this country?). And from my experience of being interviewed by hundreds of local business writers over the last 10 years, they're right!

Sure, fiscal accountability must be in place. All of these incentive decisions are being made with the approval of Governors, Lieutenant Governors and other highly ranked elected officials. A small group, yet the highest ranking group a state has to offer nonetheless. Isn't that why you elected them: That they can be trusted; they are rational men and women; they know what's best and what's not for their state.

There is an alternative and we've discussed this over the years about incentives in general. Go ahead and open all negotiations to the public and to the media. Go ahead and make incentives to large companies -- that's all incentives -- completely public, so that the media has full access to them. Do all of that and watch your large corporate job and investment deals, the type of deals that can put a state on the international economic map for decades, disappear altogether. It's that plain. It's that simple.

You can e-mail Mike concerning this editorial at mike@sb-d.com

Kentucky Wants to Base Incentives on Better Wages

Companies that gain incentives from the Kentucky Cabinet for Economic Development better be ready to prove they are paying the wages they agreed to pay under incentive conditions in the near future. Gene Strong, who heads Kentucky's economic development department, admits the state needs to set incentives based on wages. Currently, Kentucky laws do not pair incentives with a particular wage level. Like many states in the South, Kentucky's annual pay remains lower than the nation's average.

South Carolina Governor Awards Tobacco Settlement
South Carolina Governor Jim Hodges recently announced 65 recipients for the state's $80 million Water and Wastewater Infrastructure Fund. The fund was created from the state's tax-exempt tobacco settlement bonds and is earmarked for the creation of infrastructure in areas deemed underdeveloped by the Department of Commerce. The criteria for project eligibility were mandated by the state's legislature. It required projects to be capital projects designed to improve water and wastewater infrastructure or technology-related infrastructure, and located in an underdeveloped area. Nearly all the counties in state will benefit from the award of $80 million from the Water and Wastewater Infrastructure Fund that was created last year as a result of the $934 million tobacco settlement asset-backed bonds. Local communities, towns and other governmental entities applied through the state's ten regional Council of Governments.

Bucking Trend, Arkansas General Revenue Up

While virtually every Southern state is experiencing losses in revenue, Arkansas stood out last quarter when December gross revenues were up nearly 7 percent. The Arkansas Department of Finance and Administration reported in January that the state collected $308.1 million in revenue in December, which was $19.3 million more than in December 2000. The DFA said Christmas sales and vehicle purchases accounted in large part for the increase.

West Virginia Revenues Up as Well

Benefitting from higher energy prices for coal and natural gas, West Virginia has fared much better than other Southern states in tax collections this year. In fact, the state is showing a surplus of $43 million at the midway point of the fiscal year. Furthermore, income tax collections from corporations in West Virginia are up by nearly $5 million from last year. West Virginia also saw its unemployment rate drop from 5.3 percent in November 2000 to 4.3 percent in November of 2001.

Corporate Tax Revenue Down Significantly in Georgia

Unlike West Virginia, Georgia's corporate income tax revenue was down by 43 percent at the midway point of fiscal year 2001. That figures to be nearly $200 million in tax losses for the state compared to the previous year. Job losses in Georgia since November 2000 support the losses in corporate tax revenue in the Peach State. Georgia leads all Southern states in net job losses over the last year, with more than 80,000 jobs lost since November 2000. Georgia saw its unemployment rate rise from 3.2 percent a year ago to 4.2 percent currently.

Kansas Ties Illinois in Digital Survey

Kansas and Illinois tied for first place in the fourth annual Digital State Survey, conducted by the Progress & Freedom Foundation and the Center for Digital Government. Results of the 2001 survey are published in a new report titled, The Digital State 2001. The survey is based on a poll of chief information officers in all 50 states.

Maryland Gets Good Marks in New Economy Study

A recent study conducted by the Milken Institute suggests that Maryland is very prepared to take advantage of the so-called new economy. The well-known think tank ranked Maryland No. 5 in annual New Economy Index, up from No. 6 last year.

One Georgia to Get Tobacco Money

Up to $1.6 billion of Georgia's $4.8 billion tobacco settlement can be used by Georgia's rural economic development initiative called OneGeorgia. The first part of the money earmarked for the Peach State's rural regions has been given out in the form of $8 million in grants. The grants will be used by 20 designated rural communities to improve and complete interstate accesses and other road projects. The OneGeorgia Authority, based in Dublin, is designed to encourage regionalism among rural counties in the Peach State.

Chips in for Recovery

A San Jose-based market research firm has predicted that the worldwide semiconductor industry will begin its recovery by the end of this year and grow into a full-blown growth cycle sometime in 2003. Analysts for Gartner Dataquest maintain that the current downturn may be the worst in the history of the semiconductor industry. Gartner Dataquest expects a three percent growth rate in the world's semiconductor industry this year and as much as a 30 percent growth rate next year.

Tennessee Launches Tech Campaign

In November, the Tennessee Department of Economic & Community Development unveiled its "Tennessee Means Technology" campaign. Seeking to attract more high tech industry as well as venture capital to the state, the campaign will include advertisements in Fortune, Business 2.0 and Southern Business & Development magazines.

Two Giant Manufacturers Up and Running in Alabama

American Honda Motor Co. began mass-production of its Honda Odyssey minivan and its V6 engine at a new plant in Lincoln, Ala., in November. The original date of startup for the plant was April 2002. Honda Manufacturing of Alabama president Mikio Yoshimi said "this is the quickest ever construction of a new Honda plant in North America." The facility is Honda's 11th major manufacturing plant in North America.

Meanwhile, in the southern part of the state, Canadian steel maker IPSCO Inc., officially opened its $425 million mini-mill in Axis, Ala., near Mobile. The in-line plate mill is expected to be at full production capacity of 1.25 millon tons by April of this year. The Mobile plant is Regina, Saskatchewan-based IPSCO's third steel production facility in the U.S.

NC's Lee Act Expanded

The William S. Lee Act, legislation approved several years ago to make North Carolina more competitive in the incentive arena, has expanded to include large distribution deals. Provisions to allow large distributors access to the incentive funds were made when Lowe's expressed interest to build a $66 million warehouse in Northampton County, creating 300 jobs. This is the third expansion of the Lee Act. An overhaul of the state's incentive programs is expected this year.

Duke Named Energy Company of the Year

Duke Energy has been named the energy company of the year by the Financial Times. The award was given to Duke at the newspaper's 2001 Global Energy Awards ceremonies held in November. The award reflects the company's diversified operations and overall growth in the last year. You can learn more about Southern utility news by turning to the "Utilities" section in this edition.

"Bucks for Brains" Paying Off in Kentucky

"Bucks for Brains," the program that matches state funds with private donations to pay for endowed professorships and to support research efforts at Kentucky state universities, is an initiative that's working and deserves continued funding, says University of Louisville president John Shumaker. To convey that message to state lawmakers, U of L has issued a status report on its Challenge for Excellence initiative, a 10-year plan introduced in 1998 to answer the Kentucky Legislature's call for U of L to become a nationally recognized research university. The report shows that U of L already has exceeded its 2008 Challenge for Excellence goals and established new benchmarks in two key areas: total endowment and number of chairs endowed for more than $1 million.

The South's 10 Richest and Poorest Counties

Poorest Counties

1. Zavala County TX - $16,363
2. Starr County TX - $16,363
3. East Carroll Parish LA - $16,464
4. Owsley County KY - $17,015
5. Holmes County MS - $17,031
6. Sharkey County MS - $17,380
7. Wolfe County KY - $17,647
8. Jefferson County MS - $17,786
9. Maverick County TX - $17,857
10. Dimmit County TX - $18,213

Richest Counties

1. Loudoun County VA - $75,886
2. Fairfax County VA - $73,337
3. Howard County MD - $72,187
4. Collin County TX - $71,423
5. Fayette County GA - $70,352
6. Forsyth County GA - $67,385
7. Williamson County TN - $66,335
8. Montgomery County MD - $65,691
9. Stafford County VA - $62,837
10. Johnson County KS - $62,821

Source: Bureau of the Census, Median Household Income, 1998

Controversial Miami-Dade Development Gets Approval

It's getting to be more and more familiar in the South: balancing the environment and real estate development. In environmentally sensitive Miami-Dade, county commissioners approved in December the building of Codina Group's 436-acre Beacon Lakes business park. The park is sited about four miles from the Everglades on what are now wetlands. The county's approval to build the park essentially repealed a long-standing policy prohibiting industrial uses in the environmentally sensitive Northwest Well field protection area, home to 15 water wells. Codina's attorney, Joseph Goldstein claimed that if approval to build the park was not granted, Fortune 500 companies would flee Miami-Dade for Orlando, Tampa Bay and Atlanta. Those against the development, including Sierra Club lawyer Richard Grosso of Davie, Fla., told county commissioners that Beacon Lakes endangers the future water supply for the county and jeopardizes wetlands that are vital to the Everglades restoration. Dade County Commissioner Katy Sorenson echoed Grosso's point, by saying "water supply is a big issue for the county and I'm concerned of possible interference with the Comprehensive Everglades Restoration Program." You can read more about the South's growth management and environmental issues in that section located in this edition.

Halliburton Puts New Houston Campus on Hold

In August, officials with Halliburton announced it would centralize its energy services, engineering and construction groups by building a new 67-acre campus in Houston's Oak Park at Westchase. The plans included the construction of three new high-rise office buildings totaling 2 million square feet. In December, the massive Dallas-based energy services company put the campus on the back burner. Company officials maintain the proposed campus would continue to be a priority, however, due to the downturn in Houston's real estate market, moving into existing space might prove more economical.

Editorial

Enron's Demise Serious Blow to Deregulation

by Lee Burlett

We've heard, seen and read plenty about Enron's rapid crash and -- almost, but not yet -- burn. Most of it has been centered on upper management and their soft and profitable landings, while regular employees were left holding the bag. Some of what we've heard, seen and read suggested the Bush administration may have been involved in some sordid way. My favorite cartoon on that subject had President Bush at a podium tersely claiming, "I did not, I repeat, did not have a relationship with that company!"

But what we haven't heard, seen or read much of is how the nation's largest energy marketer's demise will affect the future of deregulation in this country and specifically the American South. If there ever was a company that would benefit from deregulation, Enron was it. While the company wasn't founded on the prospects of deregulation, it was the prospects of deregulation that propelled it to being named one of the world's largest corporations by several respected business publications. In fact, Enron and its leader, Ken Lay, are widely credited with leading the way into energy deregulation and marketing with natural gas in the 1980s.

So what went wrong? Who knows? But in the first inning of the deregulation game, everything has gone wrong. First, Georgia's deregulation of its natural gas industry became a circus before it ultimately became a joke. Gas marketers, who convinced Peach State customers to sign the line, left the state faster than a tick jumping on a hunting dog. Residential customers discovered their gas was turned off because the company selling them the product went belly-up.

Then you had the California energy crisis. One of the first states to deregulate, California experienced repeated blackouts in 2001. PG&E, a large California utility, filed for bankruptcy last year. Lawsuits are still flying all over the place as a result of California's energy crisis, which, I might remind you, came about because of deregulation.

Of course the same is occurring with the unfortunate Enron situation. But it could have been much worse. The financial fallout to energy markets would have been much worse had not Dynegy tried to acquire Enron. The 10-day period from when the merger agreement was announced until it was terminated bought valuable time for Enron's trading partners to end their relationships and hedge their trading positions. Had not Dynegy emerged as a potential suitor, Enron would have filed for Chapter 11 with no warning, leaving more than the company's employees holding the bag.

It's ironic that Enron is based in Texas. Texas made itself a competitive electricity market on January 1, 2002. Other states in the South, such as Arkansas, have delayed deregulation until more can be learned about this, to date, failed enterprise. Hearings going on as of this writing in Washington, D.C., as a result of the Enron debacle, should take a close look at deregulation of electricity and natural gas. If anything, these hearings should discover that Enron's strong lobbying, accounting and legal departments were the smoke and mirrors of the company itself. Is that what we want from deregulation? I think not.

You can e-mail Lee about this article at lee@sb-d.com

Higher Education Push in Mississippi

On January 7, Gov. Ronnie Musgrove and the steering committee for the Mississippi Leadership on Higher Education unveiled a new initiative titled "Building Opportunity in Mississippi Through Higher Education." The initiative is designed to the advancement of the Magnolia State's economy through its colleges and universities. Six priorities have been set including building public awareness, expanding and improving pre-kindergarten programs, enhancing college and university partnerships, raising the number of college grads in critical career fields, increasing part-time enrollment/adult education and increasing the state's scientific, technical and research capacity.

Florida to Reorganize Education

Higher student achievement is what Florida Education Secretary Jim Horne wants. Horne outlined a total reorganization of the state's education system in December. Horne maintains the current system has its "roots in the past." During the 2001 legislative session, Gov. Jeb Bush signed into law a sweeping education reorganization plan.

Here are Four Winners for 2001

Unemployment rates have been rising steadily the past year in the South. For example, Danville, Va., saw its unemployment rate rise from 3.2 percent to 9 percent in just the last year. Rocky Mount, N.C. saw its rise from 6.6 percent to 9.4 percent. Yet, we found four winners for 2001. Gadsden, Ala., showed nearly a four-point decrease in unemployment in 2001, from 9.5 percent to 5.8 percent. Cumberland, Md.'s unemployment rate dropped to 5.9 percent from 8.1 percent at the end of 2001 and Wheeling, W.V. saw similar results going from 4.5 percent unemployment at the beginning of 2001 to 3.5 percent at the end. Lastly, McAllen, Tex. saw its unemployment rate, while still high, drop from 13.4 percent to 12 percent from November 2000 to November 2001.

WorldCom Announces $180 Million Northern Virginia Expansion

Officials in Virginia approached WorldCom officials with an $11 million performanced-based grant and the communications giant agreed to take it. The result: A $180 million expansion of its Loudoun County operations. With the expansion, WorldCom will be able to house 8,000 employees. You can read more about the South's new and expanded corporate and industrial announcements made in the final quarter of 2001 in the "Relocations & Expansions" section found in this edition.

Regional Transportation Authority in D.C. Area Gains Momentum Since 9/11

The change in attitude among residents in Northern Virginia, D.C. and parts of Maryland since the terrorist attacks on that region, suggest that funding for a regional transportation authority may be needed. In a survey released November 29 by the Greater Washington Board of Trade, citizens showed greater support for a multistate transporation authority. In fact, support for a regional transportation authority increased from 49 percent prior to 9/11 to 57 percent with this new survey. Other changes found in the survey since 9/11 include these for Washington D.C. area residents:

* 15 percent said they are going downtown less often
* 24 percent said they are spending less money
* 17 percent have cancelled travel plans
* 8 percent said they are considering moving out of the region as a result of the attack on the Pentagon

Texas City Awards Tax Abatement to Genuity

The city of Lewisville, located in the Dallas/Fort Worth Metroplex, has awarded a multiyear tax abatement to Genuity, Inc., the Massachusetts-based Internet infrastructure provider. The tax abatement has been awarded to Genuity in hopes the company will go ahead with a planned $191 million expansion in Lewisville that will create about 3,000 new jobs. Officials with Genuity, however, have said no time table has been set for an expansion of its Texas operations in Lewisville. The company laid off 990 U.S. workers during the last quarter of 2001. The company is in the process of moving about 700 workers from Las Colinas to Lewisville. Genuity's investors include Verizon and Citigroup and its clients include AOL, which accounts for about 40 percent of its business.

FAA Issues Record of Decision Paving Way for FedEx in Triad

Since 1998, when FedEx officials announced a $300 million, 750-employee air freight hub at the Piedmont Triad International Airport, economic development officials in the Triad region have waited patiently to tout their market as the South's newest distribution center. On December 31, 2001, officials in the Greensboro and Winston-Salem region got word from the FAA that a third runway at the Piedmont Triad International Airport has been approved, paving the way for the FedEx hub. The Record of Decision by the FAA makes the airport improvements eligible for federal financial assistance and commits the airport to specific conditions, including strict environmental regulations. Officials with Forward Greensboro have come up with a marketing plan to tout the area's potential as a transportation hub. Marketing packages are being sent to site consultants that include a copy of the movie "Planes, Trains and Automobiles" under a jacket that reads "The Challenge of Getting from Point A to Point B is only funny in the movies."

Former Virginia Gov. Gilmore Spread Economic Gospel Before Leaving Office

Democrat Mark Warner took over the Virginia governorship from Jim Gilmore on January 12. But before Gilmore's term ended, he budgeted nearly $1 million to promote economic education in the state. In a prepared statement, the former governor said, "While we are working to revitalize our manufacturing and agriculture based industries, we must also help our children to be prepared to be the next generation of entrepreneurs, ready and eager to engage the free market and grasp future economic development opportunities." During his term, Gilmore supported curriculum changes to emphasize more economic instruction in public schools.

Look for Maryland and Virginia to Benefit from R&D Post 9/11

The federal government is spending more on bioterrorism and intelligence and that's going to be a good thing for Mid-Atlantic states in the South such as Maryland and Virginia. Companies like Lockheed Martin and Northrup Grumman in the D.C. region will get their share of government work this year. The region is also one of the South's largest biotech clusters, where vaccines against bioterrorism are being developed and manufactured. Maryland historically has been among the nation's leaders in R&D funding and spending. In 1998, the state received about $8 billion in R&D spending, second only to California.