Spring 2011

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

Foreign Direct Investment Jobs in U.S. More "Resilient"

A study released in June by the U.S. Department of Commerce showed that the 2 million manufacturing jobs supported by foreign direct investment (FDI) were more resilient and were less affected by sector-wide losses than domestic manufacturing jobs. The study also found that workers at foreign owned plants in the U.S. make almost 30 percent more in wages than those who work at wholly-owned domestic plants.

Obama Administration Establishes White House Rural Council to Strengthen Rural Communities

The rural South took it on the chin in this last recession more than any other rural region of the U.S. After all, other than in the West, you can't find more rural land in the U.S. than in the South. The difference between the two, however, centers on the fact that tens of millions of folks live in the rural South. In June, President Obama established the White House Rural Council to help revive the nation's rural areas (go to www.SmallTownSouth.com for more information on economic development in the rural South). "Strong rural communities are key to a stronger America" Obama wrote in June on the White House's Web site. The Delta Regional Authority (DRA) based in Arkansas couldn't have agreed more to President Obama's statement. In an article published in June on the Arkansas News Bureau's Web site, DRA Co-Chairman Chris Masingill said, "I'm very excited about this opportunity for a renewed focus and really an opportunity to emphasize the work that folks like us at the Delta Regional Authority have been doing to try to improve the quality of life and the competitive nature of rural America."

ALABAMA

Novel Incentives Bill Passes in Alabama

A bill that allows companies that collect incentives for locating, investing and adding jobs in Alabama to sell unused tax credits to other companies that do the same passed in the last Legislative session. A company that invests $100 million, for example, in Alabama and creates 100 new jobs between this year and 2015, is eligible for up to $20 million in tax credits with the state. But many of those credits go unused because the companies run losses; therefore they have little or no tax liability. The new law will enable the company to make a one-time transfer of unused credits to another company creating jobs in the state.

Alabama Economic Development Efforts Being Retooled

Economic development on the state level is changing dramatically in Alabama. The Alabama Development Office (ADO), the chief state agency, Gov. Robert Bentley's office and the Economic Development Partnership of Alabama (EDPA), are moving to create a new organization called the Alabama Economic Development Alliance. The new organization will bring a new level of collaboration among ADO, EDPA, Alabama's university system and state-based utilities. 

Vector Aerospace bringing 100 Jobs to Small Town Alabama

Vector Aerospace is adding more jobs once again at its facilities at the South Alabama Regional Airport, which is located between Andalusia and Opp, Ala. The helicopter maintenance company will hire 100 more associates.

Alabama's Automotive Industry on a Roll … Again

Since the recovery began in earnest about a year ago, Alabama's automotive industry shifted into high gear. Last year Mercedes-Benz announced it would bring the C-Class to a new line at its plant in Vance, shifting about 1,000 jobs from Germany to Alabama. The Germans weren't pleased with the development. In the spring Hyundai announced a $173 million expansion of its engine plant in Montgomery, adding 200 more jobs and Honda is bringing its luxury line – Acura – to its Lincoln, Ala. plant and will invest $97 million in the process. For more information on the South's automotive industry, go to www.SouthernAutoCorridor.com.

Johnson Controls is First Alabama Mercedes Supplier to the C-Class

In the spring quarter, Johnson Controls announced that it will be the first parts supplier to Mercedes once the German automaker begins assembly of the C-Class sedan in 2013. The company's plant in Cottondale, Ala. produces a number of interior systems and components for both the M-Class and the R-Class that are currently being assembled at the Mercedes-Benz plant in Vance, Ala. The additional work will create 185 new jobs.

South Alabama Megasite on Track

Baldwin County, Ala. officials voted unanimously in the spring to apply for a $40 million bond issue to pay for a 3,000-acre industrial megasite as well as the prep work on the site. In an article written in the Mobile Press-Register, Robert Ingram, director of the Baldwin County Economic Development Alliance said that "Our megasite will be one of the few certified sites of its size available in the South, if not the country. That means it will be in competition for virtually every large project looking at the Deep South."

Spring Tornadoes in Alabama put 6,400 Out of Work

In May more than 6,400 storm-related unemployment claims were filed in the state of Alabama. The tornadoes of April 27 assisted in raising Alabama's unemployment rate three-tenths of a point to 9.6 percent in May.

VF Jeanswear to Reopen in Rural Alabama

VF Corp. Jeanswear's plant that was shuttered in April 2010 will reopen in rural Holly Pond, Ala. The company will transfer some operations from its Hackleburg facility, which was destroyed by a tornado in April. The plant in Holly Pond was one of that town's largest employers when it closed.

Canadian Pipemaker Expanding Unfinished Plant in Thomasville

Lakeside Steel, a Canadian company that manufactures pipe for the oil and gas industry, is expanding its project in Thomasville, Ala. while it is being built. The company will now hire 280 workers and invest $57.5 million in the project.

Michigan Steel Processor Sets Up Shop in Rural Alabama

Warren, Mich.-based SET Enterprises is building a steel processing service center in Jackson, Ala. At build-out, the company will process up to 360,000 tons of steel per year. The $12 million project will create 40 jobs. For more information on economic development in the rural South, go to www.SmallTownSouth.com.

FLORIDA

Florida Creates New Economic Development Agency

Earlier this year, Florida Gov. Rick Scott hired Gray Swoope, the former Executive Director of the Mississippi Development Authority, to try and revitalize the state's economic development efforts. In June, Scott signed a bill creating the Department of Economic Opportunity. The new agency will house the Agency for Workforce Innovation, the governor's Office of Tourism, Trade & Economic Development and parts of the Department of Community Affairs. The new agency will be directed by Swoope, the CEO of Enterprise Florida. Part of the bill that created the new agency enables Scott and Swoope to approve or deny requests for state incentive funds in 10 days. Previously, those decisions took up to 42 days. In addition, the bill lets Scott dole out incentives under $2 million without legislative approval or consultation.

GEORGIA

First Large Manufacturing Project in Years Opens in Dalton, Ga.

IVC US, a Belgian-based vinyl floor covering company, opened its new 520,000-square-foot plant in Dalton, Ga., known as the "flooring capital of the world." The new plant represents the first large manufacturing recruiting project in years for Dalton and Whitfield County, which is located in extreme northwest Georgia near Chattanooga, Tenn. The $75 million project will serve as the company's U.S. headquarters, production and distribution center. The plant, home of the longest vinyl flooring production line in the world, currently houses about 100 employees.

Kia Raising Production Levels at Georgia Plant

In June, Korean automaker Kia Motor Manufacturing Georgia announced it will build 360,000 vehicles at its West Point, Ga. plant starting in 2012, up from the previous goal of 300,000. The company has started expansion projects at the plant, including installing a second 5,400-ton press in the stamping shop. It is also adding new robots in the welding shop, increasing the size of its paint building and adding more equipment in the assembly area. The company has already hired about 1,000 more workers at the facility. This newest expansion, which includes steering production of its Optima sedan model, will cost the company about $100 million.

Triumph Aerostructures Expanding its Georgia Facility

Triumph Aerostructures-Vought Aircraft Division, announced in May it will invest $17 million at its plant in Milledgeville, Ga. The company is a supplier to Boeing and the plant produces composite parts for the 787 Dreamliner. The deal will create 250 new jobs.

Yamaha Adding Jobs at Georgia ATV Plant

The Yamaha Motor Manufacturing Corp. is relocating the bulk of its ATV manufacturing to its Newnan, Ga. plant, which already houses over 1,000 workers. The deal will add 200 new jobs. Yamaha is the world's largest maker of motorcycles, ATVs, snowmobiles and personal watercraft.

KENTUCKY

Parts Supplier Growing in Kentucky

UGN, a maker of acoustic carpet systems and other parts for domestic and Japanese automakers, announced in May it is expanding its operation in Somerset, Ky. The $5 million deal will create 50 new jobs.

Kentucky Gov. Beshear Announces Major Renovation at GM Plant in Bowling Green

In early May Kentucky Gov. Steve Beshear joined community leaders and officials of General Motors in Bowling Green to announce the Detroit automaker will refurbish its Bowling Green assembly plant, adding a new vehicle product program -- the next generation Chevy Corvette. The expansion will entail the creation of 250 new jobs and a capital investment of $131 million in the Commonwealth.

Distribution Center Going Up in SmallTownKentucky

Clark Associates announced in June it will locate a new distribution center in Madisonville, Ky., to serve the company's e-commerce business. The company is a leader in online distribution of foodservice equipment. The $3.3 million project will create 50 jobs.

Meggitt Aircraft Braking Systems Expands in Rural Kentucky

Meggitt Aircraft Braking Systems, a supplier of aircraft wheels and brakes, is expanding in Danville, Ky. The $7.3 million investment will create 63 new jobs.

Pella Expands in Small Town Kentucky

Window and door manufacturer Pella Corp. is expanding its Murray, Ky. facilities. The deal will create 75 new jobs. For more information on economic development in the rural South go to www.SmallTownSouth.com. 

Indian-owned Company to Locate First U.S. Plant in Elizabethtown, Ky.

UFLEX Ltd. announced in April it will build a flexible packaging manufacturing plant in Elizabethtown, Ky. The company, based in New Delhi, will invest $180 million in the project that is expected to create 250 new jobs.

Wausau Paper Investing $220M in Kentucky

In the spring quarter, Wausau Paper announced it will invest $220 million and add 76 new jobs at its plant in Harrodsburg, Ky. The plant has produced towel and tissue paper in rural Kentucky since 1990. Currently, 397 workers are housed at the plant.

LOUISIANA

Elevating Boats Expands in La.

In mid-June Elevating Boats announced it is expanding it manufacturing facility in Ponchatoula. The expansion will add a production line for a new gear system for the boat and oilfield industry. The deal will create 39 new jobs.

CARBO Ceramics Investing in Louisiana

CARBO Ceramics announced in the spring it will invest $17 million in an expansion of its Airport Industrial Park facility in New Iberia, La. The company, which manufactures proppant used in the oil industry, will create 40 new jobs.

MISSISSIPPI

Nation's Fastest Growing City is in Mississippi

In the spring quarter, Bloomberg Businessweek named Olive Branch, Miss. as America's fastest growing city. In 1990, there were 3,567 residents in Olive Branch, which is a suburb of Memphis, Tenn. According to the 2010 Census, the north Mississippi town is home to 33,484 residents, which represents a growth rate of 838 percent. For real-time news on business, politics and economic development in the South go to www.RandleReport.com.

KiOR Celebrates Groundbreaking of $500M Biofuel Facility in Columbus, Miss.

KiOR officially broke ground on its $500 million commercial biofuel production facility in Columbus in the spring quarter. The company will create its blendstocks from a variety of biomass feedstocks, including wood and agriculture waste. At full production, the project is expected to generate over 1,000 jobs. 

Mississippi Airport Runway Extended to 8,000 Feet

Columbus-Lowndes County, Miss. officials celebrated the completion of a $10.5 million, 1,500-foot extension of the Golden Triangle Regional Airport's runway in June. The extension will help with safety at the Columbus Air Force Base but it will also help attract aviation and aerospace companies to a new 2,500-acre industrial park that is being developed on the airport's property.

Toyota on Target for Mississippi Plant Opening

Toyota officials said in the spring quarter they are on target to open the Japanese automaker's latest assembly plant in Blue Springs, Miss. this fall despite the loss of production arising from the earthquake and tsunami in Japan. Some equipment that is being installed at the plant originates in Japan but there have been few interruptions in the delivery of that equipment. For more information on the South's automotive industry go to www.SouthernAutoCorridor.com.

Toyota Job Applications in Mississippi Near 40,000

Toyota is opening its assembly plant in Blue Springs, Miss. this fall after a two year delay. The Japanese automaker has received to date almost 40,000 applications for the 1,500 jobs the company will provide at the facility near Tupelo.

Nissan to Build New Infiniti Model in Tennessee; Moving Frontier, Xterra Models to Mississippi Plant

Nissan announced in the spring quarter it will assemble the Infiniti JX, a new crossover model with three rows of seating at its massive plant in Smyrna, Tenn. In a related development, Nissan will relocate production of the Nissan Frontier compact pickup and Xterra compact SUV to its plant in Canton, Miss., from the Tennessee plant. The JX will be the first Infiniti model to be produced at the 24 year old Tennessee plant that is located southeast of Nashville. Last year Nissan announced it will bring production of the popular Rogue compact crossover to the Smyrna facility and will also begin assembly of the Nissan Leaf all-electric car at the plant next year. Further activity at the Japanese automaker's Tennessee plant includes a $1 billion lithium-ion battery facility that is currently under construction.

NORTH CAROLINA

Packager Creating 124 Jobs in Rural N.C.

RockTenn announced in June it will add 124 jobs and invest $23 million in the next 18 months to expand its plant in Marion, N.C. The company is a manufacturer of corrugated and consumer packaging and recycling solutions.

Electronics Recycler Plans 200-Job Project in N.C.

Electronic Recyclers International announced in the spring it will hire 200 workers to recycle computers and other electronic equipment at the former Badin Works Alcoa plant in Stanley County, N.C. The company is investing $10 million in the project.

Pittsburgh Glass Deal means 260 New Jobs in Rural N.C.

N.C. Gov. Bev Perdue announced in April that Pittsburgh Glass Works, a provider of automotive glass products, will open a new facility in Elkin, N.C. The $85 million deal will create 260 new jobs.

Denver-based Desserts Company Picks N.C. for New Bakery

Steven Roberts Original Desserts, a Denver-based company, announced it will expand to Robeson County, N.C. The $4 million bakery project will create 342 new jobs.

OKLAHOMA

Citi Trends Opens Distribution Center in Roland, Okla.

Citi Trends, a retailer of urban fashion apparel, opened a 425,000-square-foot distribution center in Roland, Okla. in June. The $15 million investment will house more than 200 employees.

Webco Industries Breaks Ground in Oklahoma

Webco, a manufacturer of metal tubing, broke ground on a $55 million, 205,000-square foot plant in Sand Springs, Okla. in the spring quarter. Hiring plans were not announced.

Turbine Maker Siemens to Open Wind Service Center in Oklahoma

Wind turbine manufacturer Siemens announced plans to build its largest wind power distribution center in Woodward, Okla. in May. The company expects the project will create 40 new jobs.

SOUTH CAROLINA

South Carolina Recovering and Fast

In mid-June state economists in South Carolina reported that the Palmetto State is recovering from the recession faster than expected. One signal that the recovery is well ahead of the predicted pace in S.C. is the more than $100 million in tax collections the state took in at the end of the budget year, which was July 1. Total state revenues are up $336.7 million, or 6.9 percent over the same period last year. State economists predicted a 4.2 percent growth in state revenue for the 2010-2011 budget year.

Rural S.C. County Lands Project

ECAPS Corp., a manufacturer of "green" building materials, will locate its new operations in Marlboro County, S.C. The company plans to invest $3.4 million in the project that will create 150 new jobs.

Textile Trends Announces New Operation in S.C.

Textile Trends, a start-up operation that will produce finished linen products used in the hospitality industry, will establish a new cut-and-sew operation in the old Milliken building in rural Jonesville, S.C. The deal will create 100 new jobs.

Metal Working Firm Announces New Rural S.C. Facility

VCI-SC will establish new manufacturing operations in Pickens County, S.C. The $2 million investment is expected to create 50 new jobs. The company is a parts supplier to BMW.

Michelin Expanding in S.C.

Michelin officials announced in the spring that the tire maker will invest $200 million in its Lexington, S.C. facility. The company has already invested over $1 billion in the plant since it first began operating in 1981. The project will create 270 new jobs.

Interstate Container Investing $13M in S.C.

In the spring quarter, Interstate Container announced it will establish a new manufacturing facility in Lexington County, S.C. The "green" packaging manufacturer is investing $13 million in the deal that will create 60 new jobs.

Italian Company Investing in S.C.

Flame Spray SpA, a maker of thermal spray coatings, will establish a new production facility in Laurens County, S.C. The $9.2 million investment is expected to generate 50 new jobs.

TENNESSEE

Book Publisher Expanding in Tennessee

Minneapolis-based Jostens, a yearbook and scholastic products company, announced it is opening a new facility in Clarksville, Tenn. The company is closing an existing plant in Pennsylvania and adding 200 jobs at its Clarksville facility.

Wacker Officially Breaks Ground in Tennessee; $2.7 Billion in Solar Projects going up in Volunteer State

Germany-based Wacker officially broke ground on its $1.5 billion polysilicon plant outside Cleveland, Tenn. in April. Polysilicon is a key resource in the building of solar power panels for residential and commercial use. Hemlock Semiconductor, a competitor of Wacker's, is currently building a similar plant in Clarksville, Tenn. The two solar industry facilities represent $2.7 billion in capital investment and will ultimately create 1,100 jobs.

GM Investing $32 Million in Former Tennessee Saturn Plant

In June, GM announced it is investing an additional $32 million at its engine plant in Spring Hill, Tenn. The deal will retain or create 63 new jobs to ramp up production of engines for its Chevrolet Malibu model. GM closed the former Saturn plant to automotive assembly in November of 2009 when it rolled out the last Chevrolet Traverse crossover vehicle.

U.S. Farathane Expands Jackson, Tenn. Facility

Automotive supplier U.S. Farathane is investing $4 million at its plant in Jackson, Tenn. The deal will create 50 jobs.

Korean Auto Parts Supplier Expanding in East Tennessee

SL America, a Korean supplier, announced in June it is investing $14 million in its parts plant in Clinton, Tenn. The GM supplier is adding 175,000 square feet to its facility and 100 new jobs.

TEXAS

Duke Energy to Install World's Largest Battery in Texas

Charlotte-based Duke Energy Renewables is investing $44 million to install a 36-megawatt battery system at its Notrees Wind Project in Texas. It will be the largest power storage system for a wind farm once it is installed late next year. Duke was awarded a $22 million grant from the U.S. DOE to install the battery at the 153-megawatt Notrees wind farm. The North Carolina utility matched the grant to fund the project.

Caterpillar Expanding Excavator Plant in Victoria, Tex.

In June, Illinois-based Caterpillar kept its "Southern strategy" moving when it announced an increase in its investment in the hydraulic excavator plant that is now under construction in Victoria, Tex. The company will invest another $70 million on top of the previous commitment of $140 million. The additional investment will add 200,000 square feet to the 1,000,000-plus-square-foot plant. The facility will house about 600 employees.

Texas Senate Passes Economic Development Grant Bill

In May the Texas Senate passed a bill intended to increase transparency in the state's economic development grant program. House Bill 2457 will require closer examination of funds awarded to companies that invest and create jobs in the state. Incentives doled out by the Texas Enterprise Fund, a program within the Governor's office, will now be examined by the lieutenant governor and the speaker of the House.

VIRGINIA

High Performance Computing Center for Rural Virginia

Falls Church, Va.-based Noblis, Inc. and Seattle-based Cray will invest $2.5 million to establish the Center for Applied High Performance Computing in downtown Danville, Va. The companies are purchasing the First Cray XMT supercomputer used in the U.S. outside of a federal lab or university. The deal will create 15 jobs.

International Paper Investing $83M in Virginia Paper Plant

Memphis-based International Paper announced in the spring it will invest $83 million in a portion of its closed plant in Isle of Wight County, Va. and create 213 jobs for the production of fluff pulp that is used in diapers and other absorbent products. The plant closed in 2009 and at the time it housed 1,100 workers.

Genesis Products to Create 150 Jobs in Virginia

Genesis Products, a manufacturer of doors, cabinet parts and other products, announced in the spring quarter it will invest $2.5 million to expand the former Appomattox River Manufacturing Company operation in Charlotte County, Va. The deal will create 150 new jobs.

Phoenix Packaging Investing in Virginia

Virginia Gov. Bob McDonnell announced in April that a subsidiary of Grupo Phoenix is investing $17.5 million to expand its operations in Pulaski County, Va. Phoenix Packaging, which makes thermoformed plastic packaging, will create 100 new jobs in the project.

Rural Virginia Lands 500 New Jobs

Fairfax, Va.-based ICF International announced in April it will open an operations center in Henry County/Martinsville, Va. The professional services company will invest $15 million to build an 85,000-square-foot operations center in the Patriot Centre Industrial Park. The project, one of the largest job-generating deals in the Martinsville area, will create 500 new jobs.

WEST VIRGINIA

Australian Firm Building $29M Plant in W.Va.

Sydney-based Carbonxt announced plans in May that it will build a $29 million factory in Institute, W.Va. that will manufacture activated carbon used to lower mercury emissions at coal-fired power plants. The project will create 40 jobs.

$4 Billion Coal-to-Gasoline Plant Breaks Ground in W.Va.

In the spring quarter, TransGas Development Systems broke ground on a $4 billion coal-to-gasoline plant in Mingo County, W.Va. The New York-based company will convert 7,500 tons of coal a day into 756,000 gallons of premium gasoline. That is about a third of the amount of gasoline used in West Virginia each day. The project will create 300 new jobs.

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