Summer 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.SmallTownSouth.com.
SB&D visits four Southern states in the summer quarter
In the summer 2011 quarter, SB&D visited economic development practitioners and politicos in Texas, Florida, Kentucky and North Carolina. In August, Matthew Randle, son of owner Mike Randle, represented SB&D by making his first trip to an SEDC conference in Asheville, N.C. Michael and Stacy Randle were invited by Kentucky Gov. Steve Beshear amd the Kentucky Cabinet for Economic Development to attend the Quaker State 400 Sprint Cup race at Kentucky Speedway in July. Pictured are Mandy Lambert, Director of Marketing and Communications for the Kentucky Cabinet for Economic Development (left) and SB&D's Stacy Randle at the race, which was won by Kyle Busch in his Toyota Camry. The Toyota Camry, featured on the cover of this edition, is built in Georgetown, Ky.
Raleigh named nation's No. 1 city
Businessweek.com named Raleigh "the best American city" in September. North Carolina's Capital City edged out Arlington, Va. and Scottsdale, Ariz. for the honor. Businessweek cited Raleigh's "wealth of culture, entertainment, good schools, low crime and plenty of green space." It also mentioned Research Triangle Park -- which isn't in Raleigh -- and three world-class universities; N.C. State, UNC Chapel Hill and Duke. Only N.C. State is located in Raleigh.
San Antonio tops Forbes metro job forecast
According to a study done by ManpowerGroup and published by Forbes, San Antonio is the metropolitan area in the U.S. with the most optimistic forecast for hiring in the fall quarter. Cape Coral-Fort Myers, Baltimore, Greensboro-High Point, St. Louis, Tulsa, Baton Rouge, Boise, El Paso, New Orleans and Austin-Round Rock were also near the top of the Forbes list of markets that will see more hiring than others this quarter.
Port of Savannah No. 2 for exports
Georgia's largest port is second only to the Port of Los Angeles in containerized exports in the U.S., according to Georgia Ports Authority Executive Director Curtis Foltz. Foltz made the claim in his annual "State of the Ports" address in September. During fiscal year 2011, Port of Savannah handled more than 6.8 million tons of containerized exports.
Kentucky leads states in corporate relocations
Kentucky now leads the nation's 50 states as a premier corporate relocation destination, according to a comprehensive annual national study conducted by Atlas Van Lines. With an "inbound" rate of 63 percent, Kentucky is second only to the District of Columbia in terms of companies transferring or relocating new employees to the state. Thousands of human resources executives participated in what is known as the "Atlas Van Lines Migration Patterns" study, which tracked nearly 75,000 moves in 2010.
Houston one of four U.S. metros to gain jobs in manufacturing sector
While the vast majority of U.S. metropolitan areas have seen manufacturing jobs dwindle in the past five years, Houston is among only four metro areas nationwide to see a gain in that job sector. According to an analysis of U.S. Bureau of Labor Statistics data, Houston gained 227,500 manufacturing jobs between June 2006 and June 2011.
Florida gets good news for a change
No Southern state was hammered more so than The Sunshine State in The Great Recession. Good news has been hard to find down there, but in September, Standard & Poor's improved Florida's AAA credit rating from negative to stable. The state has added more than 60,000 private sector jobs so far in 2011.
Southeast manufacturing perks up as nation slows down
The Southeast Purchasing Managers Index, which analyzes manufacturing activity in Alabama, Mississippi, Louisiana, Florida, Georgia and Tennessee, rose 4.1 points in August to 58.3, according to Georgia's Kennesaw State University. A score above 50 means the manufacturing sector is growing. In August, the national rate was 50.6.
Manufacturing back on top
It's been a couple of decades since industrial companies' relative valuation topped that of technology companies. But a chart published in Mother Jones in the summer showed that for the first time in two decades (and possibly the first time ever), the PE ratio of tech companies is lower than the PE ratio of industrial companies. The article further stated, "In other words, given a choice between a tech company with earnings of $1 billion and an industrial company with earnings of $1 billion, investors today would pay a higher price for the industrial company. Generally speaking, this means that investors think the industrial company has better long-term growth prospects than the tech company."
Hyundai Heavy receives 14,000 applications for Montgomery, Ala. plant
South Korea-based Hyundai Heavy Industries is hiring 500 workers for its plant in Montgomery, Ala. that will produce giant, one million pound transformers. As of September, the company had received over 14,000 applications for those 500 jobs. Hyundai currently claims about 40 percent of the North American transformer market and expects the new plant will give it 50 percent. Hyundai Heavy is investing $120 million in the project.
Arkansas Gov. Beebe sets Nov. 8 special election for highway bond vote
In the late summer, Gov. Mike Beebe signed a proclamation that sets a Nov. 8 special election for voters to consider a $575 million bond program for interstate improvements. Arkansas Highway Commission Chairman Madison Murphy said approval would generate about $1 billion in highway construction and spur about 27,500 jobs.
New Orleans named "America's Best City for Singles"
New Orleans topped Travel+Leisure magazine's list of "America's Best City for Singles" for the second consecutive year. The magazine cited "fascinating people, neighborhood cafes, music" and "cocktails" in the ranking.
West Virginia ranks third in job creation according to Gallup
Gallup's Job Creation Index that came out in the summer shows that West Virginia ranks third in the nation in job creation during the first half of 2011. North Dakota topped the chart, followed by Washington, D.C. Gallup reported that energy producing states such as Oklahoma and West Virginia in the South have ranked in the 10-best job generating state markets for the past three years.
Louisiana FastStart named nation's best state workforce training program for second consecutive year
In the summer quarter, Louisiana FastStart was named the nation's best state workforce training program for the second straight year by Business Facilities magazine. Georgia (2), North Carolina (3), Florida (5), Alabama (7) and South Carolina (8) made the publication's top 10 training programs.
N.C. could be home to 4,000 acre solar project
Two of the most controversial pieces of land in Guilford County, N.C. have emerged as possible candidates for an ambitious solar farm project. A team from National Solar Power recently toured the White Street Landfill and Guilford County Prison Farm. National Solar Power, a startup company from Melbourne, Fla., wants to build a 4,000-acre, $1.4 billion solar farm on one of the sites.
Parts in place to assemble first Boeing 787 in North Charleston, S.C.
Boeing's North Charleston, S.C. final assembly line has received its first locally fabricated Boeing 787 aft fuselage, completing the final shipments for the first aircraft to be built at the company's new final assembly line, the company confirmed in August.
Port Everglades gets OK on intermodal yard agreement
Broward County, Fla. commissioners unanimously approved an agreement with the Florida East Coast Railway to construct and operate a Port Everglades intermodal yard. The Intermodal Container Transfer Facility, on 42.5 acres of port land, will facilitate the transfer of cargo from Port Everglades to the FEC rail line via a connecting rail spur. The FEC is already working on an intermodal project involving the Port of Miami.
Everglades Inland Port back on front burner
In late July, the on-again, off-again endeavor that would bring a major intermodal center to the Glades region of Palm Beach County that would link to the Port of Palm Beach moved up to the front burner. The Port of Palm Beach and Florida Crystals Corp., the sugar company and a large land owner in the Glades, announced they have decided to collaborate on the project, which will be called the South Florida Intermodal Logistics Center. The project is slated to be built on 850 acres Florida Crystals owns off U.S. 27 in rural South Bay, Fla.
Ga. Gov. Nathan Deal: Obama will seek money for Savannah harbor deepening
In a speech to the Georgia Black Legislative Caucus in September, Ga. Gov. Nathan Deal predicted that President Obama will seek funds to deepen the Savannah harbor to accommodate huge cargo ships that will call on the East Coast once the Panama Canal's expansion is complete in 2014. In the speech, Deal said, "This (Savannah) is the only port in the United States where exports exceed imports." Port officials estimate that deepening the port will require $253 million from the state and $372 million from the federal government.
Mayors of Louisville and Lexington, Ky. creating "super region"
Economic development officials and politicos in Kentucky's two largest markets -- Louisville and Lexington -- are coordinating a regional economic development bond. Mayors' Jim Gray of Lexington and Greg Fischer of Louisville are working to develop a "super region" that will market itself initially as a cluster for the automotive industry. Ford operates large facilities in Louisville and Toyota's largest North American plant is located in Georgetown, Ky.
Virginia earns $311 million surplus
While the federal government wrestled with its debt, Virginia has quietly turned the corner with its finances, showing a surplus of $311 million for the 2010-2011 fiscal year. It is the second straight year that Virginia has experienced higher than expected revenues.
$200 million in upgrades planned for Charleston, S.C. airport
South Carolina's Charleston International Airport is getting $200 million in upgrades during the next four years. The improvements will include six new gates at expanded concourses with more shops, an expansion of the existing parking garage, and a larger baggage handling area. The tarmac around the terminal will also be expanded. In a separate project, the U.S. Air Force plans to rip up and then repave the airport's main 9,000-foot main landing strip that it shares with the international airport. Boeing's new 787 plant is also a user of the airport.
Private deep-water port complex in La. could have investors by fall
A privately funded deep-water transfer terminal planned for the mouth of the Mississippi River could have investors as soon as this fall quarter, according to Louisiana State Sen. A.G. Crowe. If built, the port, called the Louisiana International Gulf Transfer Terminal, could accommodate mega-vessels that will be able to navigate the Panama Canal by 2014. Ports on the Mississippi River such as the Port of New Orleans and Port of South Louisiana will be unable to accommodate such large vessels. The state of Louisiana is not expected to contribute financially to the proposed project.
La. exports see highest single-quarter result in history
Louisiana shipped $15 billion in goods in the first quarter of 2011, a 47.7 percent increase from the same quarter in 2010. The $15 billion was the highest value quarter on record in Louisiana.
Annexed farmland in Huntsville has master plan
In 2007 and 2008, Volkswagen took a long hard look at a farm off of Interstate 65 in Limestone Co., Ala. before choosing the Enterprise South industrial park in Chattanooga for its first U.S. assembly plant since 1988. During that site search, the city of Huntsville annexed 9,233 acres of the Limestone County land in order to help lure VW. But the site had no master plan or infrastructure in place to serve an automotive assembly plant. Now that there are reports that at least three foreign automakers are looking to build new assembly plants in the Southern Automotive Corridor -- Audi, Volvo and Hyundai/Kia -- the city of Huntsville has developed a detailed master plan for roads, schools, parks, neighborhoods and businesses that could be built around a large industrial user of the property.
Houston fastest growing market of the decade
Based on analyses of the 2000 and 2010 censuses by the Kinder Institute for Urban Research at Rice University, the greater Houston metropolitan area was the fastest growing U.S. market in those 10 years. From 2000 to 2010, Houston added 1,231,393 residents.
Kentucky launches new economic development plan
The Kentucky Cabinet for Economic Development has hired Boyette Strategic Advisors of Little Rock to develop a statewide economic development strategic plan. Called "Kentucky's Unbridled Future," the plan is expected to be released in October. It will identify Kentucky's emerging business sectors and make recommendations to position the Commonwealth for job generation based on assets for business that are available in the state.
Nine of the "Next Biggest Boom Towns in the U.S." are located in the South
Forbes recently came out with its ranking "The Next Biggest Boom Towns in the U.S." and nine of the top 10 were in the American South. Ranking first was Austin, followed by Raleigh, Nashville, San Antonio, Houston, D.C., Dallas, Charlotte, Phoenix and Orlando. If SB&D were to do the same ranking, our list would be different. This is how we would rank the next "boom towns." Austin, Houston, San Antonio, Baton Rouge, Dallas, Fort Worth, Raleigh, Charlotte, D.C. and New Orleans.
Virginia Senators introduce bill to drill off coast
In the summer, Virginia Sens. Jim Webb and Mark Warner, introduced a bill that would allow oil and natural gas drilling off the state's coast starting next year. The Virginia Outer Continental Shelf Energy Production Act of 2011 would increase the area open to exploration and production and direct half of any leasing revenues to be paid to Virginia to support a variety of projects, including land and water conservation efforts, development of clean energy resources, road infrastructure and other infrastructure improvements in the state.
Report shows Oklahoma's economy expanding at rapid pace
In an AP story published in the summer quarter, Oklahoma Treasurer Ken Miller announced that the state's economy continues to improve at an "accelerating pace," with gross tax receipts in June that were 15 percent higher than June of 2010. Tax receipts in June topped $1 billion and Miller said much of the increase can be attributed to Oklahoma's oil and gas industry.
Virginia wins CNBC's Best States for Business
Virginia again topped CNBC's annual "Best States for Business" ranking that was released this summer. Texas placed second, North Carolina third and Georgia fourth.
Virginia again named top state for business
Pollina Corporate Real Estate has named Virginia the top state for business in its annual rankings. It marks the third straight year that the Commonwealth has held the top spot in the Pollina rankings. Virginia won the 2011 rankings by the largest margin in the history of the study.
Tennessee announces Startup Tennessee
In the summer, Tennessee officials announced Startup Tennessee, a job-generating effort to help the state's entrepreneurs. Part of the initiative is to develop a Web site to connect entrepreneurs with investors, training programs and mentors. The program also uses business incubators to share best practices and assists startups with free resources that are available from large firms through their affiliation with the Startup America Partnership. The state also plans to develop a grant program of up to $10 million to fund business incubators in each of nine economic development zones in Tennessee. The program is the latest development in Gov. Bill Haslam's Jobs4TN economic development initiative.
Mississippi Port expansion to create "thousands of jobs"
The expansion of the Mississippi State Port of Gulfport will create thousands of jobs and Gov. Haley Barbour told reporters in the summer that "I honestly believe 25 years from now we'll look back -- I won't because I'll be dead and gone -- but you young people will look back and say this is the biggest economic development project in the history of Mississippi." The Port of Gulfport was heavily damaged by Hurricane Katrina in August of 2005. The port is now undergoing an expansion that will elevate the facility.
Oil industry is huge in Oklahoma
A recently released study by Oklahoma City University showed that the oil and gas industry is far and away Oklahoma's largest industry. Nearly 300,000 jobs are tied to the oil and gas industry in Oklahoma and the sector injected about $51 billion into the state's economy in 2009. According to the study, about one out of every seven jobs in Oklahoma is directly or indirectly tied to the oil and gas industry and according to Oklahoma's treasurer the oil industry paid more than $100 million in taxes to the state in August of this year.
South's manufacturing sector is on a big time roll
A new study released in July by On Numbers showed that durable-goods manufacturing was by far the fastest growing industry sector in the South in calendar year 2010. The study revealed that manufacturing added .59 percentage points to gross state products on average in each Southern state. Tennessee saw the largest increase in GSP of any Southern state with a gain of 3.52 percent. North Carolina and Kentucky followed Tennessee with gains of 3.42 and 3.24 points respectively. Retail trade was the second-fastest growing industry in the South, although it was a distant second adding on average .36 percentage points to each Southern state's GSP in 2010.
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