December 12, 2011

For real-time news on business, politics and economic development in the South, go to www.RandleReport.com. For more information on economic development in the South, go to www.SB-D.com. For more information on the automotive industry in the South, go to www.SouthernAutoCorridor.com.

Southern-built, foreign-owned and exported worldwide

The U.S. has lost 2.8 million jobs to China alone over the last 10 years. The vast majority of those jobs are in the manufacturing sector and SB&D estimates that over 1 million manufacturing jobs have been lost in the South to China in those 10 years. But the tide is turning and it is doing so fast. No where else is the return of manufacturing jobs to the South more visible than in the automotive industry, where vehicles built in the Southern Automotive Corridor are now being delivered all over the world at a pace never before seen. Toyota is now exporting San Antonio-built Tundra and Tacoma pickup trucks and exports 100,000 vehicles from its four U.S. plants in Blue Springs, Miss., Georgetown, Ky., San Antonio and Princeton, Ind. to 19 foreign countries. Nissan, which operates plants in Canton, Miss. and Smyrna, Tenn., is preparing to begin exporting its vehicles and may even build some models -- some that are not even sold in North America -- in the Southern Auto Corridor strictly for export. Currently, more than half of the models assembled at the Mercedes-Benz Vance, Ala. plant are exported overseas and BMW is expected to export about 70 percent of the X3, X5 and X6 models made at its Greer, S.C. plant to more than 130 global markets. BMW was recently named "Exporter of the Year" by the National Association of Foreign Trade Zones. For more information on the South's automotive industry, go to www.SouthernAutoCorridor.com.

La.-based Entergy CEO wants to deal with global warming now

J. Wayne Leonard, CEO of News Orleans-based Entergy Corp., said in a speech to executives of the National Wildlife Federation in November that he supports a per-ton fee on carbon emissions. Leonard has been controversial among his power company peers, as he has long supported some form of a carbon cap and trade initiative. Instead of supporting the unsuccessful national carbon emissions "cap and trade" program, Leonard now is in favor of a per-ton fee on carbon emissions. The fee will be levied on all carbon emissions to provide a financial incentive to reduce emissions, with money from the fee to be used to reduce the national deficit and for support of research and development of carbon reduction technologies. In Leonard's speech he said "I can think of no time in history when the planet is in as much peril as it is today." He also said, "Every single ton that's put into the atmosphere is just going to have to pay its own way. People are going to argue that there are losers in that. Well, there have been winners for decades, because they've been putting it out there for free. We have to get started or we will end up doing a lot of triage, trying to decide between who lives and who dies, what species do we save, what cities do we save."

Mercedes begins expansion in Alabama

Construction got underway in December at the Mercedes-Benz plant in Vance, Ala., paving the way for production of the C-Class model. The latest expansion is a $289 million project, part of a $2 billion build-out of the plant that will take place over several phases. Mercedes currently employs 2,800 workers at the facility and once the $2 billion expansion is complete, that total will rise to 4,200.

Louisiana's Next Autoworks project officially dead

Two years ago V Vehicle announced it would build an inexpensive fuel-efficient car at the former Guide auto parts plant in Monroe, La. The new automotive assembly project called for 1,400 jobs if a loan from the Department of Energy came through. The application for that $320 million loan was denied by DOE in late November. The company, which changed its name from V Vehicle to Next Autoworks, cited the controversy over the Solyndra bankruptcy as the reason the application was turned down.

Manufacturing on a roll; Oklahoma leads pack

Manufacturing jobs increased by 1.9 percent between October 2010 and October 2011. That doesn't seem like much, but considering all other sectors grew by only 1.1 percent during that time it is a huge statement. Utah, Louisiana, South Carolina and Michigan all saw about five percent gains in their manufacturing employment rolls during the October year-to-year. Oklahoma saw an increase of 8.5 percent, the largest such increase in manufacturing job gains in the country from October 2010 to October 2011.

Manufacturing jobs rebound sharply in S.C.

South Carolina saw 15,000 more jobs from October 2010 to October 2011, dropping that state's unemployment rate to 10.5 percent. Manufacturing accounted for more than three-quarters of the job total, posting a 10,800 gain during the same period. In September and October of 2011, Bridgestone, Continental Tire and Nephron Pharmaceuticals announced plans to create a combined 3,250 jobs in the Palmetto State.

Recliner manufacturer has big plans in rural Mississippi

Southern Motion, an upholstered recliner manufacturer, announced in December it is moving into a vacant 192,500-square-foot building in Baldwyn, Miss., to produce a new line of recliners. Southern Motion also has operations in nearby Pontotoc where it employs 915 workers. The new $3 million project will generate 150 new jobs.

St. Louis Post-Dispatch courts Mercedes after embarrassing Alabama immigration law event

In November, the St. Louis Post-Dispatch courted Alabama's Mercedes-Benz plant after police in Tuscaloosa arrested Detlev Hager, a 46-year-old Mercedes executive traveling on business in the state. Hager didn't have proper identification on him or in his rental car so under Alabama's new immigration law he was arrested. The Post-Dispatch opinion piece read, "Hey, Mercedes, time to move to a more welcoming state" and "Carpetbaggers never have been treated very kindly in the South, though we would have thought exceptions would have been made for those with SUV factories in their carpetbags." The opinion piece also added, "We are the Show-Me State, not the 'Show me your papers" state. Charges were dropped after an associate delivered Hager's passport and German driver's license, the Tuscaloosa News reported. 

Sweeney, Randle weigh in on Alabama immigration law

In an article published on November 30 in the Mobile Press-Register, Mark Sweeney, senior partner at Greenville, S.C.-based McCallum Sweeney Consulting, weighed in on Alabama's tough new immigration law. "Alabama has worked so hard to reinvent itself as a destination for global manufacturing. It's really been a remarkable transformation. Unfortunately, this law really is counter to that effort. There's nothing good about it. I can't see any positives in terms of economic development," Sweeney said in the article. In November, an embarrassing development occurred in Alabama when a Mercedes executive was arrested as a result of the new law. Charges were eventually dropped after the German executive, who was visiting the automaker's assembly plant in Vance, Ala., delivered the proper paperwork to Alabama authorities. A week later, a Japanese man temporarily working at Honda's assembly plant in Lincoln, Ala. was stopped at a roadblock and arrested as a result of the new law. Mike Randle, publisher of SB&D, also was interviewed by an Alabama newspaper about the tough immigration law. "We get foreign visitors all the time. This is going to happen again, there's no question. If it does, I can't imagine what the impact will be," Randle said in an article publishing by The Birmingham News in November. 

Kia's effect on rural Alabama and Georgia

Two years ago Korean automaker Kia opened its first assembly plant in the U.S. in West Point, Ga. After two years we thought it would be a good idea to update the automaker's economic impact on Alabama and Georgia. The plant itself currently houses about 3,000 workers that build three models working three shifts a day. Two of the plants largest suppliers, Mando and Sewon America, have expanded several times. The two suppliers are part of a network of 60 in east Alabama and west Georgia that supply the plant. It is estimated that well over 10,000 jobs have been directly created, including assembly plant jobs and supplier jobs.

Japanese auto parts manufacturer to locate plant in Kentucky

Daicel Safety Tube Processing, a Japanese automotive components manufacturer, announced in the fall it will locate a new facility in Beaver Dam, Ky. The $8.8 million investment represents the third Daicel plant to locate in Beaver Dam. The company is creating 25 new jobs to be added to its current employment of 525 in the rural Kentucky market.

Forbes' best states for business

Virginia (2), North Carolina (4), and Texas (6) were the only Southern states to make the top 10 of Forbes magazine's best states for business report of 2011. Georgia and Oklahoma made it into the magazine's top 20.

Louisiana jumps 14 spots in Forbes' 'best states' ranking

Louisiana vaulted 14 positions in the latest Forbes ranking of "Best States for Business," capping a year in which the state climbed to its highest-ever business climate ranking by every leading publication that measures the economic progress of states. Until recently, Louisiana had ranked 49th or 50th in every year of the Forbes ranking. In the latest Forbes ranking, Louisiana ranked 30th among all U.S. states. 

More Californians migrating to Texas

California has sent more folks to Texas than any other state by a wide margin. In fact, according to Census figures, more than 360,000 people have relocated from California to Texas in the last five years. That number represents the largest state to state migration in the U.S., where only 11.6 percent of Americans moved in 2010 and 2011. The figure is the lowest percentage of people moving on record or since the Census Bureau began tracking migration patterns in 1946. 

Sam Dong opening second facility in rural Tennessee

Sam Dong, a South Korean company that manufactures magnet copper wiring products used in the production of transformers, motors and generators, announced in December it is locating a second manufacturing facility in Rogersville, Tenn. The $2.8 million project will create 85 new jobs.

Enviva to built $75 million wood pellet plant in rural Va.

After opening a wood pellet plant in rural North Carolina in November, Maryland-based Enviva announced a similar project in rural Courtland, Va. in December. The $75 million plant will produce wood pellets for export to Europe through a port terminal in Chesapeake, Va. The pellets are used for burning to produce energy and heat. The project will generate 64 new jobs.

Punker LLC to locate new plant in Hickory, N.C.

Punker LLC, a Germany-based manufacturer of fan wheels and blowers, announced in the fall it will locate a new manufacturing facility in Hickory, N.C. The $4.2 million project will transfer all existing U.S. business from Germany to Hickory. The deal will create 56 jobs.

Oklahoma wind farm powers Google's Oklahoma data center

The Minco II wind farm in Oklahoma’s Grady and Caddo counties is now operational and powering Google's data center at the MidAmerica Industrial Park in Pryor, Okla. Google struck a 20-year power purchase agreement with NextEra, the owner of the wind farm to help power the Internet giant's 130,000-square-foot data center in Pryor.

$200 million investment announced for Marshall County, W. Va.

Gaster Exploration announced plans in December to invest $200 million in West Virginia's Marcellus Shale field in 2012, with virtually all of the cash directed to Marshall County. The Houston-based company will drill for natural gas in the county.

Sasol announces study for $4.5 billion ethylene plant in Louisiana

In December, South African energy and chemicals company Sasol announced its intentions to explore building a $3.5 billion to $4.5 billion ethylene production site in Louisiana. The company will move forward with a feasibility study for building a world-scale ethylene cracker and derivatives complex. The study will focus on building the complex near Sasol's existing Lake Charles Chemical Complex in Westlake, La.

Sundrop Fuels announces $450 million refinery in Alexandria, La.

Sundrop Fuels announced in November it will build a $450 million biofuels refinery that will bring 150 jobs to Central Louisiana. The project, which will salvage wood waste from renewable forests in Central Louisiana and combine it with hydrogen from the region's natural gas supply, will produce 50 million gallons of fuel a year.

Gov. McDonnell announces jobs for Henry County, Va.

Virginia Gov. Bob McDonnell announced in November that Commonwealth Laminating & Coating, a manufacturer with an emphasis on solar-control window films and coatings, will invest $16.5 million to expand its operation in Henry County, Va. The company will create 40 new jobs. Virginia and Henry County successfully competed against China for the project.

Textile company creating 120 jobs in rural S.C.

A&K Textiles, a maker of safety clothing, announced plans in December to create 120 jobs in Barnwell County, S.C. by relocating operations from Alexandria, Egypt. The company will set up a new cut-and-sew operation in the former Hanesbrands building in the rural S.C. county.

Israeli auto parts supplier to set up plant in Auburn, Ala.

Arkal Plastic Products announced in November it will invest more than $7 million to set up a plant in Auburn, Ala. to produce plastic parts for the automotive industry. The Israeli company, which operates a plant in Canada that serves the Canadian and Michigan automotive cluster, will hire 25 workers initially for the new Auburn plant.

GKN Aerospace building S.C. plant

GKN Aerospace, a supplier of aerospace and aviation components, will establish a new manufacturing facility in Orangeburg Co., S.C. The $38 million investment is expected to generate more than 250 jobs over six years.

Toyota celebrates 25 years at Georgetown, Ky.

In November, Toyota and Kentucky officials celebrated the 25th year of production in Georgetown, Ky. The company began hiring workers at the plant in 1986. Today, the Japanese automaker employs about 6,600 workers at the facility, which assembles about 500,000 vehicles a year. The Georgetown plant produces the Camry, Camry Hybrid, Avalon and Venza and is one of 14 Toyota plants in North America. The company, which also opened its newest plant in Blue Springs, Miss. in the fall quarter, has invested about $5.4 billion at its Kentucky facility. Suppliers to Toyota's Georgetown plant employ about 9,600 workers.  For more information on the South's automotive industry, go to www.SouthernAutoCorridor.com.

GM bringing back assembly to Spring Hill, Tenn. plant; 1,900 jobs

General Motors announced in late November it will reopen its Spring Hill, Tenn. plant for assembly next year. In an unusual move, GM plans to use the facility as a flexible plant, one that would allow for "real time reaction to sales spikes in a given car or crossover.” To start though, GM will invest $61 million and rehire 700 workers to build the Chevrolet Equinox. That model, which GM has had difficulty in keeping up with demand, is currently being built in Canada. Later, GM will bring in a new midsize vehicle and invest $183 million and an additional 1,200 workers for that vehicle's debut in the 2015 model year. GM closed its Spring Hill facility for assembly in 2009, but kept its massive stamping operations going to build engines at the former Saturn assembly plant.

Toyota era begins in Mississippi

The first Mississippi-built Toyota Corolla model rolled off the line at the Japanese automaker's plant in Blue Springs on November 17, 2011. The $1.3 billion facility officially opened in November after several delays after it was announced in 2007. The plant can produce up to 150,000 Corollas a year. The current workforce at the plant stands at 1,500 that work a single shift Monday through Friday. Next year, Toyota will add a second shift, which should bring employment at the plant to 2,000. As of the end of the year, seven suppliers have announced facilities in Mississippi to serve the plant.

Toyota supplier opens in Mississippi

Systems Automotive Interiors has opened its facility that it shares with Toyota Boshoku Mississippi. The facility will assemble seats for Toyota Motor Manufacturing Mississippi. Boshoku is producing the interior door panels for the Corolla. At full production, SAI expects to produce 150,000 seats for the Blue Springs assembled vehicles in a just-in-time environment. Employment at the seat plant is set for 80. 

Maritime International moving production from China to Louisiana

Maritime International President David LeBlanc announced in the fall that the company is moving production of mooring systems and protective fenders for harbors from China to Broussard, La. The $8 million manufacturing project will create 90 new jobs.

Baldor Electric adding 41 jobs in rural N.C.

Baldor Electric is adding 41 workers and is investing $17.7 million at its facility in rural McDowell Co., N.C. The Arkansas-based company makes industrial electric motors and other industrial products and employs about 750 workers at three N.C. plants.

Rural Kentucky hospital adding 150 new jobs

Appalachian Regional Healthcare is generating 150 new jobs at its hospital in Hazard, Ky. ARH is adding a new 24-bed emergency room, a 16-bed cardiac critical care unit along with 34 private rooms to its regional hospital in rural eastern Kentucky. 

Kia celebrates second year of assembly in west Georgia

Korean automaker Kia celebrated its second year of production at its plant in West Point, Ga. in the fall quarter. The facility produces 300,000 vehicles a year and began production in November 2009. Currently, Kia's plant houses more than the 2,500 workers the company announced would be employed at the plant.

Virginia town wins "Best Place to Raise Kids"

Blacksburg, Va. was named the "Best Place to Raise Kids" in the U.S. by Bloomberg/BusinessWeek in the fall quarter. Blacksburg, home to Virginia Tech, is home to 41,383 residents.

Florida unemployment rate dropping fast

Florida's unemployment rate, which stood at 12 percent in December 2010, dropped to 10.3 percent in October. Florida saw an increase of 9,500 jobs in October, bringing the total net new jobs for the first 10 months of the year over the 100,000 mark.

Alabama ties Michigan, Minnesota for steepest drop in unemployment rate

In October, Alabama's unemployment rate fell from 9.8 percent to 9.3 percent. The half-point drop tied Michigan (11.1 to 10.6) and Minnesota (6.9 to 6.4) for the steepest drop in jobless rates among all U.S. states that month.

West Tennessee adds more jobs than any TVA region in 2011

Economic development in West Tennessee is surging as companies like Electrolux, Mitsubishi Electric, and auto parts suppliers Quaprotek and UGN begin hiring at new plants. Among TVA's regions, West Tennessee saw the most added jobs and the second highest in capital investment in the first 11 months of 2011.

Renewable energy plant set for rural Georgia

WGS Energy Group has agreed to purchase 275 acres in the Interstate 16 South Industrial Park in Twiggs Co., Ga. to build a renewable electric generation plant. The plant will be the first of its kind in the world, according to the company that is owned by an investment group with offices in Alabama and Minnesota. The project will create about 150 new jobs.

Bed Bath & Beyond to open center in Georgia; 900 new jobs

Retailer Bed Bath & Beyond announced in November it will open an e-commerce fulfillment center in Jackson Co., Ga. The $50 million project will create 900 new jobs.

U.S. manufacturers book most orders since 2008

In September, U.S. manufacturers booked $32.6 billion in new orders for machinery equipment, the largest total since July 2008. The data, released by the Census Bureau in the fall quarter, includes sales by Caterpillar, which in the summer saw its best quarter for sales in the company's history.

Green energy company placing facility in S.C.

Global Energy Franchise announced in the fall quarter it will locate a new manufacturing facility in Cherokee Co., S.C. The company will provide solar system solutions to residents and businesses in South Carolina and will manufacture and assemble photovoltaic panels. The deal will create 200 new jobs.

Smithfield Foods creating 330 new jobs in Lenoir County, N.C.

Smithfield Packing Co., a subsidiary of Smithfield Foods -- the world's largest pork processor -- is expanding its Kinston, N.C. facility. The company plans to add 330 workers and invest $85.5 million in the project.

Vestar hiring 100 in Newton Co., Ga.

Vestar Technologies announced in November it will open a headquarters and manufacturing facility in Covington, Ga. The project will create 100 new jobs. Vestar will produce specialty metals that are used in LED lighting and semiconductors.

Auto parts supplier adding 64 jobs in rural N.C.

Henniges Automotive, a manufacturer of automotive sealing parts, is expanding its plant in Reidsville, N.C. The company is investing $2.2 million and will hire 64 workers.

Stamping operation expanding in Kentucky

GR Spring & Stamping, an automotive parts supplier, is expanding in Richmond, Ky. The company is investing $1.7 million in the project and 25 new jobs are being created.

Honda hiring at its Alabama assembly plant

Japanese automaker Honda announced in November it is hiring 100 new workers at its plant in Lincoln, Ala. The added workers are part of the company's $84 million capacity upgrade at the plant.

Titan Tire purchases former Goodyear plant in Union City, Tenn.

For more than a year now it was hard to find bad news coming from the Southern Automotive Corridor (www.SouthernAutoCorridor.com). Really, the only negative was a big one when Goodyear closed its large plant it had operated in Union City, Tenn. since 1969 in July of this year. That closure, the only significant one of any kind in the Southern Auto Corridor in 2011, put 1,800 Tennesseans and Kentuckians out of work. But the bad news was followed by good news in November when Titan Tire announced it had purchased the former Goodyear tire plant. Titan manufactures tires for earth-moving equipment, farm implements and other off-road vehicles. 

MBM Foodservice bringing 108 jobs to Newnan, Ga.

Food service distributor MDB is opening a food distribution facility in Newnan, Ga. The Rocky Mount, N.C.-based company already operates a similar facility in LaGrange, Ga. The $12.6 million project will create 108 new jobs.

Jack Daniels to build whiskey barrel mill in north Alabama

Brown-Forman, the parent company of Lynchburg, Tenn.-based Jack Daniels, announced in the fall it will open a white oak mill in Stevenson, Ala. The material is used to make whiskey barrels. The project will create 30 new jobs.

Distillers in Kentucky like Jim Beam and Maker's Mark hail Korean pact

Kentucky bourbon makers toasted the Korean trade agreement in a sign of growth in the Asian market. Koreans spend $10 billion on alcohol, including $4 billion for whiskey. Kentucky is the largest producer of bourbon in the world.

Kongsberg Automotive expands in S.C.

In the fall quarter Kongsberg Automotive, a maker of automotive components, announced plans to expand its existing operation in Pickens County, S.C. The $7.3 million investment is expected to generate 300 new jobs.

Another BMW parts supplier expanding

Gestamp South Carolina announced in the fall it is investing $51 million to add space at its facility in Union Co., S.C. The project will generate 100 new jobs.

Anacomp deal brings 200 jobs to Somerset, Ky.

Anacomp, a document and business process management solutions company is locating a new service facility in Somerset, Ky. The new facility will bring 200 new jobs and an investment of $2.4 million to the community.

Target building distribution center in Denton, Tex.

Retailer Target announced in the fall it is building a distribution center in Denton, Tex. to supply stores in Texas and seven other states. The 360,000-square-foot center will house 140 workers.

Pflugerville, Tex. lands green data center

The first 100 percent renewable energy-powered data center in the U.S. is being built in Pflugerville, Tex. The $210 million deal will create 130 new jobs.

Auto supplier creating 150 jobs in Dunlap, Tenn.

In the fall quarter, Mann+Hummel USA announced plans to build an auto parts plant in Dunlap, Tenn. The German automotive supplier will make air intake manifolds and air cleaner systems. The $15 million deal will create 150 jobs.

Texas tops business climate honors

Site Selection magazine has named Texas as the state with the best business climate for 2012. Following The Lone Star State was Georgia, North Carolina, Virginia and South Carolina.

Sasco Safety creating jobs in rural S.C.

Sasco Safety, a maker of highway safety products, announced in the fall it will invest $1.9 million in a new facility in Barnwell County, S.C. The project will create 25 jobs.

European manufacturer setting up shop in Clarendon Co., S.C.

Alucoil America, a European manufacturer of metal composite materials, announced a new $5 million facility in Clarendon County, S.C. The deal will generate 18 new jobs.

Food processor creating 75 jobs in rural N.C.

Aseptia, a processor of fruits and vegetables, is locating a new facility in Montgomery County, N.C. The $10 million facility will create 75 new jobs.

GE Aviation breaks ground in Auburn, Ala.

GE Aviation broke ground in the fall quarter on a 300,000-square-foot plant in Auburn, Ala. that will produce super-alloy parts used in GE jet engines for the commercial and military aircraft markets. The $50 million facility will eventually house 400 workers.

next