Spring 2010
Mass Layoff Events Drop Dramatically in the South
A sign that the South's economy has recovered from the Great Recession while other parts of the U.S. continue to struggle can be found on the Bureau of Labor Statistics Web site. In April of 2009 there were 2,663 mass layoff events in the U.S., the third-highest total in the recession, behind only May 2009 and March 2009. Of those, 696 were from companies that operated in the American South, or about 26 percent of all mass layoffs announced in the U.S. in April 2009. One year later, there were 1,856 mass layoffs in the U.S., of which only 369 were in the American South. So, in April of 2010, only 20 percent of all mass layoffs in the U.S. were in the South even though the region is home to 40 percent of the U.S. population.
Mass Layoffs in the South by State
|
State
AL
AR
FL
GA
KS
KY
LA
MD
MS
MO
NC
OK
SC
TN
TX
VA
WV
Total
|
April 2009
27
12
152
50
7
83
27
12
15
46
28
14
60
35
74
42
12
696
|
April 2010
17
8
118
31
5
40
32
6
5
28
13
5
19
18
73
15
4
369
|
Source: Bureau of Labor Statistics
Machinist File Complaint against Boeing over South Carolina Plant
In June the Machinists union in Washington State filed an unfair labor complaint against Boeing with the National Labor Relations Board, charging that the decision the aerospace giant made to place a 787 assembly plant in North Charleston, S.C. was in retaliation for a 2008 strike. The complaint notes that the National Labor Relations Act states that it is illegal to retaliate against union workers for engaging in lawful activities such as strikes. The Machinists union went on strike against Boeing for two months in the fall of 2008, its fourth strike in 10 years at Boeing's facilities in the Puget Sound. The complaint has been turned over to the National Labor Relation Board's Seattle office. On October 28, 2009, Boeing announced it had chosen a site at the Charleston International Airport over existing facilities in Washington State for a new $750 million, 4,000-employee 787 assembly plant.
Double Whammy for Louisiana's Oil Spill Job Losses
The oil disaster in the Gulf of Mexico has paralyzed Louisiana's seafood industry, affecting over 20,000 fishery jobs in the state. On top of that the suspension of work at 33 deepwater drilling operations in the Gulf of Mexico could affect up to 20,000 jobs in Louisiana if rig operators move their platforms to other waters outside the U.S. Of the 33 rigs that were ordered to temporarily shut down shortly after the spill occurred, 22 are located off the coast of Louisiana. Louisiana Economic Development Secretary Stephen Moret told the Times Picayune newspaper in New Orleans that up to 20,000 Louisiana jobs could be lost by a drilling moratorium. On June 22, New Orleans U.S. District Judge Martin Feldman granted a preliminary injunction, halting the deep water (below 500 feet) drilling moratorium imposed by President Obama after the spill.
CEOs Rate Texas as No. 1 for Business
Texas has been ranked the top state for job growth and business development for the sixth consecutive year by Chief Executive Magazine. The survey asked 651 CEOs to rank each state on three general categories: taxation and regulation, quality of workforce and living environment. Other states in the South that made the ranking's top 10 were North Carolina (2nd), Tennessee (3rd), Virginia (4th), Florida (6th), Georgia (7th) and South Carolina (10th).
Georgia Delegation Visits Cuba
Georgia Gov. Sonny Perdue led a 43-person Georgia delegation on a business mission to explore trade opportunities with Cuba. The group left Atlanta for Havana Sunday, June 6 and returned Tuesday June 8. The mission focused on opportunities in agriculture, medical and the telecommunications industries.
Texas Manufacturing Hits 3-Year High
A report published in June by the Federal Reserve Bank of Dallas showed that the Texas production index, which measures the state's manufacturing production, climbed to its highest level in three years in May. According to the Federal Reserve, Texas accounts for 9.5 percent of all manufacturing in the U.S., behind only California.
Washington Think Tank Ranks Metro Economies
Brookings recently published its MetroMonitor report revealing the 21 strongest-performing U.S. metro economies. In Brooking's top 10 were Augusta, Ga., Austin, Tex., Baton Rouge, La., Columbia, S.C., Dallas/Fort Worth and El Paso in the South. In the second 10 were Houston, Jackson, Miss., Little Rock, McAllen, Tex., Oklahoma City, San Antonio and Tulsa. Albany, N.Y. was No. 1.
Unemployment in the South a Full Point below U.S.
In May, the unemployment rate in the U.S. (pop. 309,472,354) dropped to 9.7 percent, with 15 million persons unemployed. Of those, about 5.3 million people were unemployed in May in the American South (pop. 118,654,723). The South's unemployment rate in May 2010 stood at 8.7 percent.
Unemployment Rate and Total Unemployed Persons in Southern States
|
AL
AR
FL
GA
KS
KY
LA
MD
MS
MO
NC
OK
SC
TN
TX
VA
WV
Avg.
|
*Rate
10.3
7.5
11.2
9.8
6.3
10.2
6.2
6.9
10.7
8.8
10.0
6.3
10.4
10.3
8.1
6.7
8.9
8.7
|
# of Unemployed
215,600
102,200
1,032,900
460,800
94,900
211,300
128,900
202,100
137,200
262,700
455,000
111,000
225,000
310,000
989,600
279,400
69,800
5,288,400
|
*May 2010 Source: Bureau of Labor Statistics
Austin and Raleigh make Forbes Ranking
Austin was ranked No. 2 on Forbes.com's "most innovative” cities ranking that was published in the spring and Raleigh was ranked No. 3. No other Southern markets made the magazine's top 10. Topping the most innovative cities ranking was San Jose, Calif., and San Francisco, Seattle, San Diego, Madison, Wis., Boston, Provo and Portland all made the top 10.
Tulsa is Nation's Best Housing Market
According to the Metropolitan Policy Program at Brookings, Tulsa, Okla. was the only market of the 100 largest U.S. metropolitan areas where home values did not decline between the fourth quarters of 2008 and 2009. The report showed that Las Vegas remains the worst housing market in the U.S., with a decline of 20.8 percent.
Very Strong April in the American South
Following an impressive number of job-generating deals in March, the number of companies announcing projects of 30 jobs or more jumped even more dramatically in April. Southern Business & Development counted 242 significant job generating projects (30 jobs or more) in April, compared to 133 in March, and only 81 in January and February combined. Automotive, general manufacturing and food processing led all industry sectors in the number of projects in the South in April.
Tennessee Rural Opportunity Fund Wins Award
The Tennessee Rural Opportunity Fund, a $10 million economic development fund providing loans to small businesses in rural Tennessee, has been awarded the 2010 National Community Reinvestment Award from the Federal Financial Institutions Examination Council. The award recognizes the work of financial institutions that are advancing innovative solutions to the challenges facing lower-income and distressed communities. The Tennessee fund is a public-private partnership between the state of Tennessee, 23 member banks of the Tennessee Bankers Association and Southeast Community Capital Corp. Launched in 2007, the Rural Opportunity Fund is expected to generate $25 million in loans and finance over 350 small, minority and women-owned businesses in small town Tennessee over 10 years. For more information on economic development in the rural South, go to www.SmallTownSouth.com.
Super Site Certified in Kentucky
Kentucky Gov. Steve Beshear announced in the spring quarter that the 1,551-acre industrial site in Glendale, Ky. has been certified as a CSX Megasite by McCallum Sweeney Consulting (MSC). The Glendale site joins a list of less than 15 industrial sites pre-certified for immediate development by MSC.
Eight of Ten-Lowest Cost of Living States in the South
Eight of the nation's ten-lowest cost of living states are locating in the South according to ACCRA's 4th quarter 2009 report. Oklahoma was the state with the lowest cost of living according to the report. Oklahoma was followed by Tennessee, Arkansas, Kentucky, Kansas, Nebraska, South Dakota, Texas, Missouri and Georgia.
Huntsville Named No. 1 Place to Live by RelocateAmerica
In the spring quarter, RelocateAmerica.com ranked Huntsville, Ala. as the top U.S. city to live in. Huntsville was followed by Washington, D.C., Austin, San Diego, San Antonio, Tulsa, Charlotte, Raleigh, Boulder and Minneapolis.
Maryland, West Virginia Personal Income Jumps are No. 1 in U.S.
According to the U.S. Bureau of Economic Analysis, Maryland's personal income rose from $272.5 billion in 2008 to $275.2 billion in 2009. The nearly $2.7 billion increase was the largest dollar increase in the country. Maryland was one of only six states to earn a personal income gain last year and four of those were in the South: Maryland, West Virginia, Virginia and Kentucky. West Virginia saw the largest gain in per capita personal income with 1.8 percent. Wyoming, Florida, New York, Connecticut, Michigan, Arizona and Nevada were states that saw the largest decrease in personal income.
Universities in the South Dominate BusinessWeek Ranking
In the spring quarter, BusinessWeek ranked universities in the U.S. based on which business programs give students their biggest return on their tuition dollar. They did it by comparing annual tuition costs with median starting salaries for graduates. The top four schools were in Florida, eight of the top 10 were in the South and 15 of the top 25. The top five business schools based on ROI according to BusinessWeek are the University of Central Florida (Orlando); University of Florida (Gainesville); Florida International (Miami); Florida State (Tallahassee); and North Carolina (Chapel Hill).
Atlanta Airport Still the Busiest
In calendar year 2009, Hartsfield-Jackson International Airport remained the nation's busiest airport according to data recently released by the U.S. Bureau of Transportation Statistics. Atlanta topped all U.S. markets with 41.7 million passengers boarding U.S. airlines in 2009. Atlanta was followed by Chicago O'Hare, Dallas/Fort Worth, Denver and Los Angeles.
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