Winter 2010 Small Town South News

Mass Layoff Events Slowing

In the fourth quarter of 2008, there were exactly 800 mass layoffs in the South. That number dropped to 425 in the fourth quarter of 2009. Mass layoff events are from establishments which have at least 50 initial claims for unemployment insurance filed against them during a five-week period.

Winter Quarter's Performance not so Hot

After a resurgent 2009 fourth quarter, total deals slowed in the South in the winter 2010 quarter (December 22-March 22). In the fall quarter, the top 10 projects in the South combined to create an announced total of 15,000 new jobs, the largest total since fall of 2004. But in the winter quarter, total jobs created by the 10-largest projects dropped to 6,743, the second-lowest total since the recession began in the fall of 2007.

Total Jobs Generated in the South by the 10-Largest Job Announcements

Quarter Winter 2010 Fall 2009 Summer 2009 Spring 2009 Winter 2009 Fall 2008 Summer 2008 Spring 2008 Winter 2008 Fall 2007

Total Jobs 6,743 15,250 7,574 9,850 7,700 5,331 13,213 9,111 7,750 9,198

Source: SB&D

Migration to the South Slows: Texas Big Winner, Florida Big Loser

The last state population figures published by the Census Bureau before the 2010 census count becomes available showed that migration flows to high-growth Southern states such as North Carolina, Florida and Georgia have slowed significantly since the recession began in late 2007. While two of those states continue to see growth in population, Florida, for the first time in decades, saw more people move out than move in over the last year. The Sunshine State joined Nevada and California, formerly three of the largest in-migration states in the U.S., as states that have lost population recently. Texas, on the other hand, saw nearly 500,000 new residents in 2009 alone, by far the largest growth total of any other Southern state. Other figures published recently by the Census Bureau showed that from 2000 to 2009 the South had a population growth rate of 13.1 while the Midwest's and Northeast's was 3.8 percent and 3.2 percent respectively. The West grew by 13.2 percent in the last decade. Finally, according to Atlas Van Lines' 2009 migration trends report, Washington, D.C. (Maryland, W. Va., and Northern Virginia) had the highest percentage of inbound population traffic and Connecticut and New Jersey were the two largest outbound states in 2009.

SB&D's Travels in the Winter Quarter Top Half-Million Mile Mark since 1992

In road travel alone, SB&D topped the half-million mile mark in the winter 2010 quarter with a visit to eastern North Carolina. SB&D visited the North Carolina Department of Commerce in Raleigh, Lillington-Harnett County, Fayetteville-Cumberland County, Jacksonville-Onslow County, New Bern-Craven County and economic developers in Kinston, N.C. among others.

Economic development in eastern and southeastern North Carolina is supported by a large military presence and the related aerospace industry as it is home to Fort Bragg, Camp Lejeune and the base at Cherry Point. SB&D’s publisher Mike Randle was a guest speaker at a meeting of the members of North Carolina's Southeast, the regional economic development organization based in Elizabethtown, N.C.

Also in the winter quarter, SB&D was invited by Louisiana Economic Development to attend the Sugar Bowl in the Governor's box at the Superdome. A great time was had by all and a better time bestowed New Orleans a few weeks later when the Saints won the Super Bowl. We would like to thank North Carolina's Southeast and all of the organizations in southeast and eastern North Carolina as well as Louisiana Economic Development for hosting SB&D in the winter quarter. 

Southern Towns Named Finalists for American Main Street Award

Columbus, Miss., Fairmont, W.Va., Fort Pierce, Fla. and Lee's Summit, Mo. are four of only 10 Main Street communities in the nation that have been selected as semifinalists for the 2010 Great American Main Street Award. Columbus is one of the original Main Street programs in Mississippi and leads the state in downtown upper-floor housing. Columbus and the other 10 semifinalist communities have helped create more than 1,100 new businesses and nearly 4,800 new jobs, rehabbed more than 950 buildings and decreased their vacancy rates by an average of 31 percent. A national jury composed of former award winners, community development professionals, representatives from government and others involved in historic preservation will evaluate the semifinalists and select five winners on May 4, 2010 during the National Main Streets Conference in Oklahoma City.

Louisiana Experiences Third Consecutive Year of Population In-Migration

The U.S. Census Bureau recently released population figures indicating that Louisiana experienced its third consecutive year of more people moving into the state than moving out. Prior to this three-year run, Louisiana had gone more than two decades without seeing a single year of net population in-migration. From July 2008 to July 2009, 18,100 more people moved into Louisiana than moved out. The Census count showed that the state's population increased by 40,600 from July 2008 to July 2009.

TVA Assists in $4.2 Billion in Investment, 26,000 New Jobs in 2009

According to the Tennessee Valley Authority (TVA), the nation's largest public power utility assisted in creating 26,000 jobs and $4.2 billion in capital investments in the Tennessee Valley in 2009. TVA provides power to large industries and 157 power distributors that serve approximately nine million customers in seven Southern states.

Broadband Awards for Southern States

In the winter quarter, Rural Telephone Service Co. and its wholly-owned subsidiary, Nex-Tech, was awarded more than $101 million in Recovery Act funding for broadband Internet infrastructure improvements in central and western Kansas. The funds will be used to enable the development of broadband services in a 4,600 square-mile region of Kansas that's 99.5 percent unserved or underserved. Also, a new fiber network is set for North Georgia and North Florida. A 260-mile high-speed, $41 million Internet network that is being funded primarily by the federal stimulus program will link Atlanta and North Georgia with North Carolina. The project, announced in December, will reach 42,000 households and almost 10,000 businesses and connect 245 schools, universities, hospitals and government facilities in the region. About 1,000 jobs will be created during the construction of the new network. Lastly, a 14-county region in rural North Florida has been awarded $30 million by the federal stimulus to enable and enhance real access to broadband and high-speed connectivity. 

Rural Georgia County Hit Hardest by Recession

Tiny Jenkins County, Ga. (8,500 population) saw its total compensation of wages and benefits drop by 23 percent in the last year, the largest drop of any county in the U.S. according to the U.S. Bureau of Economic Analysis. Jenkins County is located between Augusta and Savannah in southeast Georgia. The unemployment rate in Jenkins was 21.3 percent in January. The county has lost virtually all of its 1,700 manufacturing jobs, with the big blow coming when a window manufacturer closed recently, eliminating 600 jobs.

ALABAMA

Globe Specialty Metals Restarts Alabama Plant

In February, New York-based Globe Specialty Metals reopened its silicon metal and ferrosilicon alloys plant in Selma, Ala. The plant was idled during the recession. The plant can produce 27,000 tons of silicon metal and alloys annually. The reopening means 90 workers have been rehired by the company.

VW Supplier Fehrer Automotive Locating in Gadsden, Ala.

Kitzingen, Germany-based Fehrer Automotive announced in February it will locate in the former Advance Auto Parts building in Gadsden, Ala. to supply the new Volkswagen plant being built in Chattanooga with seat pads. The company will also supply the Mercedes-Benz plant in Tuscaloosa, Ala. with the same product. About 100 jobs are expected to be created in the deal. 

ARKANSAS

Auto Parts Supplier Expanding in Arkansas, Creating 250 New Jobs

Saint Jean Industries, an auto parts manufacturer and supplier, announced in January that it will expand its manufacturing plant in Heber Springs, Ark. creating about 250 new jobs with an investment of $14 million. The Heber Springs plant makes aluminum parts for the automotive industry. France-based Saint Jean said the expansion is a result of several significant orders placed with the company, specifically from ZF, a German supplier to Ford and GM.

FLORIDA

Gordon Food Service Creating 350 New Jobs in Plant City, Fla.

In the winter quarter, Gordon Food Service confirmed it bought the Albertson's distribution center in Plant City, Fla. to service its expansion throughout central Florida. The company expects to hire more than 350 people to work in the million-square-foot warehouse.

Bioenergy Plant to Open in Georgia

German utility RWE Innogy announced in the winter quarter that it is building a $150 million, 75-employee bioenergy plant in Waycross, Ga. The new plant will produce 750,000 tons of wood pellets from forest industry by products. The wood pellets would then be shipped to the Netherlands for burning in a Dutch power plant. To land the plant, Georgia will provide a $4,000-per-employee incentive over five years.

LG Hausys Investing $50M in Rural Georgia

Atlanta-based LG Hausys America is expanding its manufacturing facility in Adairsville, Ga. The company, which will invest $50 million, create 80 jobs and add 95,000 square feet of production space, manufactures surface countertops.

UK-Based Company Picks Rural Georgia

Firth Rixson Limited, a United Kingdom-based provider of forged metal products, announced in the winter it has chosen Midway, Ga. in Liberty County for a 200,000-square-foot, closed die forging operation that will house 200 workers. The facility will provide components for the aerospace industry.

LOUISIANA

Major Expansion Announced in Louisiana by Aeroframe

In February, Aeroframe Services announced it will dramatically expand its presence at Chennault International Airport in Lake Charles, La. Headquartered in Lake Charles, Aeroframe, which specializes in maintenance, repair and overhaul (MRO) of aircraft, will add at least 300 new, direct jobs this year with an average annual salary of $55,000, plus benefits. The expansion will bring Aeroframe's total Chennault employment to 550. The company's expansion is the result of a recent surge in aircraft maintenance work from both existing and new customers.

Zagis USA Commissions New Textile Mill in Southwest Louisiana

In the winter quarter, Zagis USA commissioned the company's new 128,000-square-foot cotton spinning mill in Lacassine, La. The ceremony marked the end of a construction project that began with a groundbreaking in July 2008. The new facility will utilize up to 15 to 20 percent of Louisiana's cotton crop to spin yarn. The $37.5 million plant is the first cotton spinning facility built in the U.S. in decades. Forty-nine people are currently employed at the Zagis facility.

MISSISSIPPI

Tunica, Miss. Lands $300 Million Pipe Plant

Wilh. Schulz GMBH announced in the winter quarter that it will locate a new $300 million seamless pipe plant in Tunica, Miss. The Krefeld, Germany-based company's Mississippi division will be known as Schulz Xtruded Products (SXP) and will produce stainless steel and alloy steel seamless and welded pipe products and components. The deal is expected to create 500 new jobs. For more information on rural economic development in the South, go to www.SmallTownSouth.com. 

General Atomics Expands in Mississippi

General Atomics' Electromagnetic Systems Division (GA-EMS), a manufacturer of advanced linear motors for Electromagnetic Aircraft Launching Systems, broke ground in the winter quarter on its Phase IV, 50,000-square-foot expansion at its facility in Shannon, Miss. The expansion, a $4.5 million capital investment, will accommodate the plant's role as the logistics supplier and depot-level support partner for the U.S. Navy's Gerald R. Ford aircraft carriers. The project will create at least 20 new jobs.

GE Aviation Expanding Operations in Batesville, Miss.

Batesville, Miss. continued a good run in the winter quarter with GE Aviation announcing it is expanding its operation there. The company's Batesville plant produces composite components for the GEnx jet engine, which will power Boeing's new 787 and 747-8 aircraft. The GEnx engine is the world's only jet engine with composite components. GE Aviation will add 350 new jobs at its facility in Batesville.

Manufacturer Expanding in Rural Mississippi

Abby Manufacturing, a fabricated structural metal manufacturer, announced the expansion of its operations into a county-owned building in Benton County, Miss. The deal will create 35 new jobs. Abby operates two other facilities in Mississippi and is a supplier to freight airline companies including FedEx. For more information on rural development in the South, go to www.SmallTownSouth.com.

Parker Hannifin Expands Mississippi Operations

Parker Hannifin, a leader in motion control technologies and systems, announced in February the expansion of the company's Batesville, Miss. operations. The expansion accommodates additional production of refrigerant control and containment components for automotive, heavy-duty truck and off-road air conditioning applications. The expansion will create 50 new jobs. 

NORTH CAROLINA

Defense Consultant Expanding in Fayetteville, N.C.

Booz Allen Hamilton, the large Virginia-based contractor to the Department of Defense, has elected to expand its presence in Fayetteville, N.C., home to Fort Bragg. The deal is expected to create 300 new jobs. "Our firm had the option of locating anywhere to support our work with FORSCOM and USARC," said William Butler, the Booz Allen executive who is heading up the relocation effort from Fort McPherson to Fayetteville. But in the end, Booz Allen decided to set up shop in the backyard of the U.S. Army Forces Command and Reserve Command at Fort Bragg.

OKLAHOMA

North Carolina Company Locating in Oklahoma

Flanders Corporation of Washington, N.C., has purchased the former Best Buy building located in the New Horizons Industrial Park in Ardmore, Okla. Flanders designs, manufactures and markets air filters that contain airborne contaminants. The deal is expected to create 250 new jobs.

SOUTH CAROLINA

Defense Venture Group Investing $50M in South Carolina

In February, Defense Venture Group announced it will locate its manufacturing, R&D and headquarters functions in Lancaster County, S.C. The $50 million deal is expected to create 220 new jobs. The defense contractor owns Indigen Armor, a manufacturer of armored vehicles, Armorline, which produces specialized transparent ceramic products for the aerospace, defense and commercial sectors, and Tactical Runflat Systems, a manufacturer of run-flat tire solutions for the military and other sectors.

Fisher Barton Expands in South Carolina

Fisher Barton, an OEM supplier of precision metal stampings and welded assemblies for the automotive industry and other sectors, announced it will expand its Laurens County, S.C. facility. The $2 million investment is expected to generate 15 new jobs.

MTU Diesel Investing $45 Million in Aiken, S.C.

MTU Detroit Diesel announced in the winter quarter it will establish a new manufacturing facility in Aiken County, S.C. MTU Detroit Diesel, a subsidiary of the Germany-based Tognum Group, anticipates that its project will require a $45 million investment and the creation of 250 new jobs. The company produces propulsion systems and energy systems based on diesel and gas engines, gas turbines and fuel cells for military, marine, rail, agriculture, heavy industrial and power generation applications.

TENNESSEE

Confluence Solar Developing $200 Million Plant in Clinton, Tenn.

In late January, Missouri-based Confluence Solar announced that it will build a 200,000-square-foot plant at the I-75 Industrial Park in Clinton, Tenn. The $200 million facility will produce mono-crystal silicon ingots for photovoltaic solar power generation. The ingots are used in solar panels to generate electricity. John DeLuca, a co-founder of Confluence Solar and a former employee at the U.S. Energy Department's Oak Ridge National Laboratory, said that Clinton's proximity to the lab and to the new stimulus-funded Solar Institute at the University of Tennessee was a factor in choosing the site in northeast Tennessee. The deal is expected to create 250 new jobs.

Newell Rubbermaid Opens Plant in Tennessee

Atlanta-based Newell Rubbermaid opened its newest U.S. plant in Coffee County, Tenn. in the winter quarter. The 67,500-square-foot, $12.5 million facility houses 50 workers and produces the ink that's contained inside pens and highlighters of Sharpies and other products.

SL America Awarded VW Contract

SL America Corp., located in Clinton, Tenn., has been awarded the contract to supply automatic shifter assemblies for Volkswagen Group of North America. The South Korean firm is expected to invest $35 million as a result of the new contract and hire 300 more workers that will be housed in a 100,000-square-foot addition to its current facility.

VIRGINIA

Wood Pellet Manufacturer Investing $18.7 Million in Rural Virginia

Wood Fuel Developers, a startup company, is investing $18.7 million to begin wood pellet manufacturing operations in Greensville County, Va. The company is a renewable fuels firm that specializes in developing and operating wood fuel and pellet production plants to serve residential, industrial and power generation markets. The deal will create 39 new jobs.

WEST VIRGINIA

$328 Million Biometrics Center Being Built in Clarksburg, W. Va.

A new $328 million Biometrics Technology Center is scheduled to be built in Clarksburg, W. Va. The project is a joint facility of the FBI and the U.S. Department of Defense. The 360,000-square-foot structure will nearly double the space capacity of the existing 2,500-employee FBI CJIS Division campus. Once completed, the expansion will enable the FBI to consolidate all of its biometrics operations.

Lockheed Martin Adds 20 Workers in West Virginia

Lockheed Martin Aeronautics announced in December it is adding 20 workers at its facility in Clarksburg, W.Va. The facility in Clarksburg produces subassemblies for C-130 aircraft.  

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