SmallTownSouth - Business & Lifestyle Opportunities in the Rural American South
Click for FREE INFO on Business Opportunities in SmallTownSouth Click for FREE INFO on Lifestyle Opportunities in SmallTownSouth SmallTownSouth.com - Opportunities in the South's Rural and Urban Small Towns
Email This Page
Monday, May 22, 2017
   Login
 News Archives
  
 Features

The State of the Rural South's Economy

Selling your Rural Community's Assets

Small Town's with Unique Assets

Highly touted reshoring event hits speed bump, says A.T. Kearney. Really?

Chinese investment surfacing in the South? Yes, finally.

The performance of this Southern industry sector of late has earned an official name: the "Southern Aerospace Corridor."

A success story from the Mississippi River Delta

The 50-year economic development war in the U.S. is over; the South won.

The big dogs are about to eat: Soon, the automotive industry will light up the Southern Auto Corridor again 

Kentucky: The Spirit of the South

New Build-Ready Program Making More Sites Ready-To-Go

A Perfect Partnership

Next Gen KIH Program Taking Broadband to Every Corner of the State

Digital Version

Aerospace Industry Takes Off in the American South

Launching Pad for Growth and Innovation

In "Plane" View

"The Best Airplane Built in America"

Aerospace Industry State Overviews

Petrochemicals and the Southern Manufacturing Renaissance

Non-Petrochemicals and the Southern Manufacturing Renaissance

Ten Reasons Why Manufacturing is Booming in The South

The Most Southern Place on Earth

Ensuring a resilient Delta Region by training a skilled workforce

Driving toward success in Alabama's Black Belt

Arkansas's Big River Steel has found its home in the heart of America's Delta Region

Building a healthy economy and a healthy workforce in Illinois

Innovation and collaboration are building a Work Ready Kentucky

Louisiana's industry off to a fast start

Perfected in Mississippi

Certifying Southeast Missouri and beyond

Select Tennessee sites offer competitive edge

Reshoring and its potential effect on the Mississippi River Delta region

  
 Archive
  
 Features

The 50-year economic development war in the U.S. is over; the South won.

By Mike Randle

Mike Randle - Southern Business and DevelopmentThe title of this issue's Southbound column doubles as the title of a book I am currently writing; like I got all kinds of time for extra writing. I won't be writing the book from scratch, though. I have plenty of material to pull from over the past two decades of covering economic development in the world's fourth largest economy.

It is my first book, unless you count the one Joe Hollingsworth and Trisha Ostrowski wrote in 2003 titled “The Southern Advantage.” Joe and Trisha collaborated on that one, but they used much of the material I wrote from 1993 to 2003 for research. Joe was nice enough to include me as a co-author. As for Trisha, she still writes for SB&D and has a piece in this edition in the Tennessee section.

Yes, the U.S. economic development war is over. Some would disagree with that claim. But if you talk to economic developers in the South, particularly the state-level chiefs, there are few states left outside the region that the South competes with anymore for major projects. Today, the vast majority of job and investment recruitment ends with a few Southern states slugging it out with no states outside the region even in the running.

Sure, Kentucky battles with Indiana and Ohio, Virginia with Maryland, and Missouri with Kansas for projects. But those are border battles or more like incentive-laden skirmishes. For the most part, Southern states battle each other for most of the big projects in the U.S., especially large manufacturing deals. That being the case, that 50-plus-year economic development war is over. The South won.

My opinion that the South has won the economic development war in this country doesn't mean the South's economy is the best regional economy in the U.S. This region faces more challenges than any other region by far. We remain the poorest region in the country. But we are also ground zero for in-migration in the U.S., and because of that, the South creates about as many new jobs as the other three regions combined.

Rising population is one of the South's biggest challenges, and it has been that way for 40 of the 50 years this nation's economic development war has been fought. The South is where people migrate to find a job. What economic development challenge can there be when your population is stagnant for decades? I mean is there really a sense of urgency to create jobs in a state like Connecticut, which has had the same population since 2000? And then there is Michigan, which has lost population since 2000, the only state to do so.

In comparison, North Carolina has gained 1.7 million people and Georgia had added 1.8 million since 2000. Texas has gained 6 million residents and Florida more than 3 million since 2000.

Every Southern state has seen population gains since 2000 and 16.7 million more people are living in the region today than when the century began. You can’t have economic development without people, and the South is far and away the largest U.S. region.

I have used this statistic for two decades now. When I was born, the South, the Northeast and the Midwest all had about the same population. Today, the South's population is larger than the Northeast and Midwest's combined. Yes, the war is over. The South won.

While this nation's 50-year economic development war is over, another economic development war has formed and the battles are huge so far in its formative years. Southern states vying for job generating projects don't compete with the rest of the U.S. today because the South competes with Mexico for those projects.

I did an interview with Tennessee ECD Commissioner Bill Hagerty for this edition (see Tennessee section, page 49). I asked Bill if Tennessee sees competition from states outside the South like Indiana, Michigan or Ohio. His answer was “almost never.”

But Hagerty did say that competition coming from Mexico is fierce for his state. “The Mexican competition has been there since I got here. When I first got here, the competition was used as a stalking horse more than it is now. Today, Mexico is probably the strongest competitor we have other than another Southern state.”

And with reshored projects doubling each year, competition with Mexico is only going to get fiercer. Yes, the U.S. economic development war is over. The South won. Now, the region embarks on another economic development war. This one is with Mexico. The South needs to win that one, too.

  
 SB-D.com

Southern Business & Development

Corporate and Industrial Sites in the World’s Fourth-Largest Economy

Southern Business & Development

  
 Southern Auto Corridor

Southern Auto Corridor.com

Steering the Automotive Industry to the World's Fourth-Largest Economy

www.southernautocorridor.com

  
 Resources

2014 Annual Directory

  
 Bonus Issues
  
Southern Business & Development Southern Auto Corridor Small Town South Randle Report