2001 SB&D Job 100

A Solid Year

Job 100 Ties Record Threshold

By Lee Burlett

For only the second time in nine years, the 2001 SB&D Job 100 has set a threshold high of 600 jobs. That's the same record setting threshold that was set with the 2000 SB&D Job 100. So this year, like last year, every selected service and manufacturing deal announced in 2000 that created 600 jobs or more made up the 2001 Job 100.

Even though this year's big deal list matched the highest threshold of 600 jobs, the 100 largest job-making announcements could muster a total of only 111,758 jobs. That figure represents the fourth year-in-a-row of diminishing totals. Last year's Job 100 created 113,136 jobs and the 1999 Job 100 created 116,721 jobs. The last time the Job 100 beat out the previous year in total jobs created was in 1998 when 125,226 jobs were created by the South's 100 largest corporate deals.

During the five years prior to last year, the top 500 job-making deals turned by economic developers in the South created an astounding 613,879 jobs. That's an average of 1,227 jobs for every major corporate expansion, startup or relocation that made the SB&D Job 100s from 1995 to 1999. No other region of the U.S. can boast that it's top 100 corporate deals created over 1,000 jobs on average every year for five straight years.

This year's Job 100 didn't quite meet that five year average of 1,227 jobs per deal. In fact, the top 100 job makers for calendar year 2000 only averaged 1,085 jobs per deal. More than anything else, the drop in average jobs per deal can be attributed to a major labor shortage in the nation's most populated region (remember the labor shortage?). There's no question there was a labor shortage in the South for much of 2000. If this four-year downward trend continues next year, however, there's going to be a different excuse for Southern officials to use. Why? Unemployment in the South has risen since the beginning of 2000. Labor is available in the region.

One of the more impressive items associated with this year's crop of big job deals starts at the top. Last year's Job 100 featured only two deals with 3,000 jobs or more (SHPS-3,000 jobs-Louisville, Ky. and SAIC-3,000 jobs-Fairfax County, Va.). Those two big deals were topped this year by five projects with 3,000 or more announced jobs. The 2001 J-100 was led by Sanmina Corp (4,500 jobs-Garland, Tex.), Capital One Financial Corp (4,190 jobs-Goochland County, Va.) and Nissan North America (4,000 jobs-Canton Miss.).

This year's list also consists of 44 deals with 1,000 announced jobs or more compared to 48 last year. Nineteen-ninety-nine's list had 40 deals with 1,000 or more jobs and 1998 featured 49. So this year's number of large labor intensive deals compares favorably with other years in the South.

New vs. Expanded

This year's big job deal list had 62 expansions and 41 new projects, making it the third consecutive year that expansions exceeded new deals. The expansion to new announcement ratio is the second highest ever. The 1999 SB&D Job 100 had 64 expansions and 39 new projects. Last year saw 57 expansions and 51 new announcements. Prior to 1999, new projects surpassed expanded on every SB&D Job 100 except for 1994.

Industry Trends

The industry sector makeup of the Job 100 has evolved dramatically since first published in 1994. Back then, 10 poultry plants, 16 apparel/textile operations and 31 general manufacturers, or 57 percent of the South's 100 largest job makers, made the list. The last few Job 100s have very few similarities to the first one published eight years ago. For example, last year there were only two large agribusiness deals making the list. Four made the Job 100 this year. And large textiles and apparel deals? Gone forever, probably. The last big apparel or textile deal to make the Job 100 was back in 1997. Apparently diminished greatly are the miscellaneous manufacturers. Only three odd-lot manufacturers made this year's list compared to 31 back in 1994.

Consistent with 1994, however, are the automotive and transportation sectors. Collectively, those industries landed 13 big job deals on the '94 list. Coincidently, there were 13 in that sector this year as well as last year. You can't get any more consistent than that. Automotive is here in the American South and here to stay.

Other similarities to 1994 in large employment announcements are found in the electronics sector. In 1994, eight general electronics deals (not including semiconductors) made the Job 100. There were seven this year and 12 last year. Distribution deals have remained stable in the South since 1994 as well. That year saw eight big box deals making the Job 100. This year 11 made the list and 12 showed up on the list last year.

Filling many of the lost apparel and textiles jobs over the last few years has been the customer service industy; more specifically call centers. Call centers have dominated the SB&D Job 100 the last five years, even though this year indicates a slow down in that service sector. In 1994, nine call centers were among the top 100 job makers in the South. That peaked to 34 last year. In fact, of the 113,136 jobs created by the 2000 SB&D Job 100, 41,213 came from call centers.This SB&D Job 100, however, indicates a major slowdown in call center expansions and startups in the South. Only 15 made the list, the lowest total since 1995.

Replacing the traditional low-wage jobs that were so prevalent in the South for decades are plum hires in the financial services, telecommunications and Internet services/information technology sectors. These industries accounted for 35 of the top 100 job making deals in the South during calendar year 2000. With 15 large employment announcements, the South's telecommunications industry tied for the top spot on this year's Job 100. Financial services accounted for 11 deals on this year's list and Internet services posted nine big deals.

Some highly targeted industries simply did not show on the list this year. The aerospace sector didn't land a deal on this year's Job 100. Pharmaceuticals landed but one and semiconductors landed only three. Wood products were a no show on the job side, even though that sector saw a strong investment year (see SB&D Investment 100 page ____). Plastics were void of multiple big announcements as well.

SB&D Job 100: The States

Over the last few years there's been some interesting developments occuring in the South regarding large employment announcements. In the early and mid 1990s, it seemed that Texas turned almost all of the big job deals. The rest of the South was left with a few crumbs coming primarily from the call center, automotive, aerospace, agribusiness, financial services and wood products sectors. For example, in 1996 (the 1997 SB&D 100), 53 of the 100 largest employment announcements in the South came from Texas. And during the four-year period from 1994 to 1997, no less than 33 percent of the largest job making announcements in the South came from a single Southern state: the Lone Star State.

Yet times change and they change for a variety of reasons. The 1999 SB&D Job 100 was the first indication of a shift in the South's big deal map. Florida, which challenged Texas valiantly every year from 1994 to 1998, finally topped the South's only "nation" and every other Southern state when economic developers there turned 22 of the region's 100 largest job deals. Lightning struck. Texas was beaten for the first time in the South's race for state supremacy in big deal announcements. Although Texas did turn more big deals that year when JMDs were counted, it was the first time Texas had been beaten in any category.

But there was another interesting development that occurred with the 1999 SB&D Job 100. In addition to Florida, Virginia leap-frogged Texas that year, too. Virginia? Virginia was a patsy at turning big deals prior to the George Allen administration. But the Commonwealth beat out the big, bad bully from the west for second place in 1999 with 18 large job projects. After wearing the No. 1 crown every year, Texas came in third in 1999 with 17 of the South's largest employment deals.

Last year, Texas again took it customary No. 1 position with 23 of the South's largest job projects. But 23 was 10 less big deals than its lowest number of 33 prior to 1998. In 2000 another state emerged as a challenger to Texas. Tennessee placed third in the quest for big deals. Tennessee, other than a two-year stretch when Gov. Sundquist first took over, had positioned itself nicely for large employment deals throughout the 1990s. The Volunteer State made its mark with the 2000 SB&D Job 100. Like Virginia, Tennessee separated itself from other Southern states in the quest for large, labor intensive deals.

This, the 2001 SB&D Job 100, has a familiar leader. Texas once again led all other Southern states with 26 of the South's 100 largest employment announcements. That's an impressive number. It simply means that one in every four of the South's largest employment deals landed in Texas. It also means that Texas doubled up second place Virginia's totals.

Of the 17 Southern states, only three increased their SB&D Job 100 deals from last year. Those are Virginia (9 deals last year to 13 this year), Mississippi (two to six) and Kansas (two to five). The largest deficits from last year saw North Carolina drop from 10 Job 100 deals to five this year and Florida dropped from 14 to 10 big projects. All other Southern states simply mirrored their big deal numbers from the year before.

What's impressive is the performance Virginia continues to pull off year after year. With 13 of the top 100 job deals, Virginia placed second this year in the SB&D Job 100. Counting up all SB&D Job 100 years, Virginia is distancing itself from Georgia, North Carolina and Tennessee. Virginia now has a firm grip on the No. 3 spot, behind Florida and Texas, after nine years of the SB&D Job 100. Tennessee is also beginning to form a strong reputation as a big deal Southern state.

2001 SB&D Job 100: State Performance

State # of "100" Deals

Texas 26
Virginia 13
Florida 10
Georgia 8
Tennessee 8
Oklahoma 7
Kansas 5
Kentucky 5
Mississippi 5
North Carolina 5
Maryland 3
Alabama 2
Arkansas 2
Louisiana 2
Missouri 2
West Virginia 1
South Carolina 1

Just Missed Deals

Just missed deals, or JMDs, are those projects that are not quite large enough to make the "100," yet are large enough to merit mentioning. This year, all employment announcements between 200 jobs and 599 are considered JMDs (JMD slots change each year based on what the 100th largest employment announcement in the region totals. This year the Job 100 threshold was 600).

Leading the JMD Job category this year is Texas with 54 deals in the 200-599 job announcement slot. Following closely behind Texas is Virginia with 48 JMDs. Tennessee had an excellent JMD year, posting 40 good sized deals. Next came Florida with 35 and Georgia with 32.

States that increased their number of JMDs this year compared to last year include Georgia, Maryland, Oklahoma, Texas, Virginia and West Virginia. Maryland, Oklahoma and West Virginia had the highest increases in JMDs from last year to this year. States that lost a significant number of just missed deals this year are Louisiana, Mississippi and North Carolina. All other states performed about the same as last year in the job JMD category.

2001 SB&D Job JMD: State Performance

State # of JMDs

Texas 54
Virginia 48
Tennessee 40
Florida 35
Georgia 32
Kentucky 20
North Carolina 20
Alabama 17
Oklahoma 16
Maryland 14
South Carolina 14
Mississippi 12
West Virginia 12
Missouri 9
Arkansas 7
Louisiana 4
Kansas 3

SB&D Job 100: Per Capita Performance

To correctly measure a state's performance at garnering large corporate employment deals, you must factor in the state's size and population. Economic development activity is directly related to population. For example, it's impossible to compare Texas' SB&D Job 100 numbers with West Virginia's numbers. Texas' population (20 million) is more than 10 times West Virginia's population (1.8 million). A better comparison on a state's ability to attract large corporate and industrial deals is to measure them on a per capita basis. Each year we factor in the number of SB&D Job 100 deals and Job JMD deals turned by each Southern state per million persons.

Looking at big deals turned on a per capita basis certainly changes the makeup of the two previous rankings in this article. Texas, which has turned more big employment deals every year but one in SB&D Job 100 history, is but a mere blip on the per capita screen. And states like West Virginia, Mississippi and Oklahoma sure look better and more attractive when you look at their per capita performances as opposed to their Job 100 totals.

SB&D Job 100 and JMD: Per Capita Ranking

State # of Deals PMP*

Virginia 8.9
Tennessee 8.8
West Virginia 7.2
Oklahoma 6.8
Mississippi 6.5
Kentucky 6.3
Georgia 5.1
Alabama 4.4
Texas 4.0
South Carolina 3.9
Arkansas 3.5
Maryland 3.3
North Carolina 3.3
Florida 3.0
Kansas 3.0
Misssouri 2.0
Louisiana 1.4

*per million persons

SB&D Job 100: Conclusion

Calendar year 2000 was a pretty solid year in large, labor intensive deals in the South. It certainly wasn't the region's best year in the nine years of tracking big deals in the South. But it may be remembered as the last of the great years that economically transformed the American South forever. Again, the threshold (600 jobs) tied the best year to date (2000 SB&D Job 100). Yet, total jobs created by the Job 100 are down for the fourth year-in-a-row. Automotive, financials services, telecommunications, call centers, distribution and Internet services industries are now dominating the big job deal list in the region.

SB&D Job 100: *Total Deals

Texas 80
Virginia 61
Tennessee 48
Florida 45
Georgia 40
Kentucky 25
North Carolina 25
Oklahoma 23
Alabama 19
Mississippi 18
Maryland 17
South Carolina 15
West Virginia 13
Missouri 11
Arkansas 9
Kansas 8
Louisiana 6

*corporate and industrial announcements 200 jobs or more in 2000