Three Not-So-Easy Pieces

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Economic Development in the World’s Third Largest Economy WINTER 2019 Three Not-So-Easy Pieces

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(800) 626-2930 • ThinkKentucky.com WINTER 2019 TABLE OF CONTENTS

FEATURES DEPARTMENTS Three Not-So-Easy Pieces Southbound 36 5QNXKPIVJGRW\\NGYJCVCTGVJGVJTGG 8 The editor’s column HCEVQTUJQNFKPIDCEMCIQQFGEQPQO[! Around the South FDI Clusters 10 Top stories from the last quarter 57 Small and medium-sized cities in the South relative to business and economic attracting foreign direct investment in a development DKIYC[ Snapshots from the Road 22 Photos of the people and places SB&D visited in the last quarter

Relocations & Expansions 26 #NNQHVJGUKIPKƂECPVPGYUVCTVU expansions and relocations announced in the South in the last quarter

SouthernAutoCorridor.com 0 33 0GYUHTQOVJG5QWVJoUCWVQKPFWUVT[ EQWTVGU[QH5QWVJGTP#WVQ%QTTKFQTEQO

Top Deals 72 6JGVGPNCTIGUVGORNQ[OGPV deals announced in the last quarter

6 SB&D

SOUTHBOUND $[/KEJCGN4CPFNG'&+614 Owner, Editor &

Publisher

Subsidies, incentives and Michael C. Randle legal immigration [email protected]

OKAY FELLOW JOURNALISTS, THIS IS FOR YOU: stop Not only can we not replace our current Managing Editor calling incentives “subsidies.” The one thing we need to do as workers, we can’t even come close to fill- an industry is to change the word from “subsidies” to “incen- ing the number of jobs that are available. Stacy C. Randle tives.” “Subsidies” are what GM and Chrysler received in 2009 I will give President Donald Trump cred- to keep their companies open and running. Without govern- [email protected] ment subsides, both of those car makers would have been it here. He knows that we cannot replace toast. They were meant to save the companies, not create any our current workforce as a result of the Project Managers jobs, at least on the front end. “Incentives” are paid to create lowest fertility rates in the nation’s histo- jobs. There is a big difference. ry. If you recall, in his state of the union Matthew E. Randle address, Trump said, “Legal immigrants In 2009, U.S. Department of Commerce Secretary Wilbur enrich our nation and strengthen our [email protected] Ross (he was not Secretary Ross then) and I were on CNBC society in countless ways. I want people during the auto bailout discussion. Ross said on the show that to come into our country in the largest Shelly Jo Jacobs the domestic auto industry was going down because of “sub- numbers ever, but they have to come in sidies paid by Southern states to foreign automakers.” I dis- [email protected] agreed with him, saying, “Mr. Ross, these are not subsidies. legally.” They are incentives in return for billions in investment and I am sure that statement angered the Art Director tens of thousands of high-paying jobs. What you want to do hardline immigrant activists that sup- with GM and Chrysler is a subsidy because the goal is to sim- port him. Regardless, Trump has Stacy C. Randle ply prevent them from closing for good.” charged his son-in-law Jared Kushner to It’s easy to calculate the return on incentives. Don’t bother cal- work on a proposal that would increase [email protected] culating tax generation or anything else other than wages. It the number of low- and high-skilled doesn’t matter the size of the employer. Just count how many workers admitted into the country an- Writers employees are working there and then multiply that by the av- nually. Today, the U.S. brings in about 1 erage salary per year. Then compare that figure to the incen- million legal immigrants a year. To re- Michael C. Randle tives that were granted. For example, the BMW plant in Greer, place our current workforce, that figure S.C.— just the plant — pays out wages of about $700 million a needs to be tripled. Beth Braswell year. So, let’s say the BMW plant has averaged a $300 million annual payroll in the 25 years of its existence. That’s almost $8 Just look at our labor situation right Lee Burlett billion in wages. . .so far. now. There are 7.5 million jobs available and about 150,000 takers on average per Trisha Ostrowski Trump team quietly plans increase in legal immigration month. In fact, in February, only 20,000 The biggest challenge this country is facing now, and for many Americans were hired to fill 7.5 million Matthew Randle years or decades to come, is that too few people are being born available jobs. Just imagine what our and too many people are aging out of the workforce. In oth- economy would be like if those millions Stacy Randle er words, we cannot replace those workers that are retiring. of jobs were filled in just two years? -

Southern Business & Development (ISSN 1067-8751) is a registered trademark TM. Founded in 1992 and published quar- ÌiÀÞ >ÀV ]Õi]-i«ÌiLiÀ>` iViLiÀLÞ ,*ÕLÃ }]V°Ƃvw>Ìi`7iLÃÌiÃVÕìÜÜÜ°,>ì,i«ÀÌ° Volume 26/Number 3 V]ÜÜÜ°- °V]ÜÜÜ°-ÕÌ iÀƂÕÌ ÀÀ`À°V°"vwVi>``ÀiÃÃ\nänÈ7iÃÌV iÃÌiÀ*>Vi] Ì}iÀÞ]ƂÎÈ££Ç° * i\ÎÎ{È£ÓÇäÎ°/ÃÕLÃVÀLiV>ÎÎ{È£ÓÇäÎ`ÕÀ}À>LÕÃiÃÃ ÕÀÃ°ƂÕ>ÃÕLÃVÀ«Ì\fÓx°-}i i`ÌìÛiÀÞLÞÌ Àii`>Þ>\f£ä°vÀ>ÌVÌ>i`- E >`ÌÃÜiLÃÌiÃÃ}>Ì iÀi`vÀÀi>Li Winter 2019 sources, however, the accuracy of this information is not guaranteed. All rights reserved. Permission must be granted by SB&D for reprint rights, in whole or in part. Copyright 1992-2019. Southern Business & Development TM 1997. Southern Auto Corridor and Southern Automotive Corridor TM 2003. 8 SB&D WINTER 2019

AROUND For real-time news on business, politics and economic development in the THE South, go to RandleReport.com. For all economic development projects SOUTHannounced in the South, go to SB-D.com. For more information on the automotive industry in the South, go to SouthernAutoCorridor.com.

Texas high-speed train named one of the most U.S. population growth hits 80-year low important infrastructure projects in the world Census data published in the winter quarter showed In the winter quarter, CG/LA named the proposed Texas high- that the U.S. population grew from 2017 to 2018 by speed train one of the top infrastructure projects in the world. CG/ just 0.62 percent. The growth is the lowest registered LA’s report selects projects with widespread and strategic impor- since 1937, or in the last 80 years. Nearly a fifth of all tance in 30 different countries. The new high-speed train project states lost population over the past two years. will link Houston to Dallas-Fort Worth when completed. Nearly 1°-°ÌÀ>ììwVÌ Ì>ÀiVÀ`Óä£n 50,000 Texans, sometimes called “super-commuters,” travel back According to a report published in March by the and forth between Houston and Dallas-Fort Worth more than once U.S. Commerce Department, the U.S. trade defi- a week. The new high-speed rail will utilize the N700 bullet train cit in goods hit a record high of $891.3 billion in available in Japan (shown here) to transport riders between the cit- 2018. The high deficits are a blow to President ies in 90 minutes.minutes. Trump’s trade policies that were supposed to lower the deficit. As imports jumped, some exports such as automobiles, soybeans and farm products “got hammered” according to The Wall Street Journal by retaliation tariffs from Europe and Asia. The trade gaps with China and Mexico also set records. >Õv>VÌÕÀ}>`ì`ÀiLÃÌ >>Þ year in the last 30 years The U.S. manufacturing sector posted net job gains of 284,000 in calendar year 2018. That is the largest increase since 1997. In December, the manufacturing sector added 32,000 jobs. Most of the gains were in durable goods, such as machinery, furniture, automotive and aerospace. The nation created a net gain of 207,000 manufacturing jobs in 2017.

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The Federal Energy Regulatory Commission has approved the Venture Global LNG export facility in Calcasieu Pass near Lake Charles, La. Shown here is an artist’s rendering of the facility.

>Õv>VÌÕÀ}LÃÕ« FERC approves ed metal for final assembly company has lost 25 percent vÀ£nÃÌÀ>} ÌÌ Ã VÃÌÀÕVÌv of a variety of products, of its customer base as pric- American factories are hir- iÝ«ÀÌv>VÌÞ including automotive and es for the company’s pipe ing again, more so than at -ÕÌ ÜiÃÌÕÃ>> aerospace. The industries have risen as a result of the any time since the mid- The Federal Energy Reg- are also suffering from the tariffs. According to govern- 1990s. After years of job ulatory Commission has retaliation of tariffs by Mex- ment data, nearly four out losses as a result of a lack of approved the Venture Glob- ico, European nations and of five exemption requests competitiveness and auto- al LNG export facility in China. filed by Texas companies have not been processed by mation, manufacturers in Calcasieu Pass near Lake "ÛiÀViLÞ the Commerce Department. the U.S. have hired a net gain Charles, La. Spokespersons paperwork, Texas steel When the steel tariffs were of employees for 18 consec- for the company said they «À`ÕVÌÃ>Õv>VÌÕÀiÀÃ approved in March 2018, utive months. Employment will begin construction on ÕÃÌ >}}>ÃÌ>ÀvvÃ Commerce expected about in the manufacturing sector the multi-billion-dollar fa- VÕÌ`ii«ÌÌ iÀ 4,500 exemption requests peaked at 19.6 million in cility immediately. The plant «ÀwÌÃ each year. Instead, Com- 1979. It is 12.8 million today. will be built on a 1,000-acre Texas oil and gas pipe firms merce has been inundated The sector hit its low of 11.5 site where the Calcasieu Ship are filling out government by the formal requests, re- million in 2010. Channel meets the Gulf of paperwork in attempts to Mexico. The facility will de- ceiving more than 66,000 / i-ÕÌ `>ÌiÃ get exemptions from 25 per- liver low cost liquefied natu- in the first year. One of the Milken Institute’s Best cent tariffs on foreign steel ral gas to customers around reasons Texas pipe com- *iÀvÀ} ÌiÃÀ>} imposed by President Don- the globe. panies have been losing so For the second consecutive ald Trump. One steel man- much business is that many year, Provo, Utah, with its U.S. industry groups ufacturer in Texas has filled of their customers are inter- large high-tech sector, job Ãi`>««i>Ì/ÀÕ«Ì out 500 exclusion requests national firms who can buy and wage growth, is the Best i`1°-°iÌ>ÃÌ>ÀvvÃ to the U.S. Department steel from other countries to Performing City in the U.S., Four dozen U.S.-based in- of Commerce since tariffs avoid the tariffs. according to the Milken In- dustry groups sent a letter of have been imposed, most of stitute. But Raleigh, N.C., appeal to the Trump admin- which have not been pro- ->ÀiiÀ}ÞÃ}LÃ came in second and Dallas istration in January asking cessed. Why 500 exclusion The solar energy industry third. Rounding out the top to put an end to the steep requests? To get around had a banner year in 2016, 10 are San Francisco, Fort U.S. tariffs on imported steel the tariffs, companies must where the share of employ- Collins, North Port-Sara- and aluminum. The appeal fill out exemptions for ev- ment in the electric power sota-Bradenton, Nashville, centered on the metal tariffs ery grade of steel they need sector rose to 43 percent. Orlando, Austin and Salt creating economic hardship from foreign suppliers. In Compared to the whole of Lake City. for those who use import- the meantime, the Texas the fossil fuel industry (at 22 £Ó SB&D WINTER 2019 Need a Place to Spread Your Wings?

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800.888.7926 thelinksc.com AROUND THE national students can work 12 >LÀÕÃV> SOUTH months in the U.S. on the Op- Congress to pass tional Practical Training pro- «À}À>ÃÌ«ÀÌiVÌ gram (OPT) and an addition- percent), solar jobs were the abama and Tennessee. The }À>ÌÃ al 24 months on STEM OPT if fastest growing in the entire solar farms will be located in A coalition of big labor they earn degrees in science, sector. Trump’s tariffs ended Hollywood, Ala., and Yum unions called on Congress to technology, engineering and that run. Since the U.S. put Yum, Tenn. The sites will pass expansions on programs math fields. Canada has far a 30 percent tariff on for- be among the largest ener- to protect immigrants with more options for foreign stu- eign-produced solar panels gy projects in the Tennessee temporary work permits. dents to work in that country. two years ago, the solar in- Valley region and the largest Led by the AFL-CIO, more The Trump administration’s dustry in the U.S. lost 10,000 ever to be built for Google. than 30 unions sent a letter DHS agenda has initiated re- jobs in 2017, followed by a to Congress asking for pro- Fewer international stricting or eliminating OPT tections for “Dreamers” (im- loss of 8,000 solar sector jobs students are enrolling at or STEM OPT beginning migrants who arrived in the in 2018. U.S. universities this year or next year. The country illegally as minors) Massive solar power Fewer international students regulation states, “ICE [Im- and beneficiaries of two hu- «ÀiVÌvÀ}i½Ã are enrolling at U.S. univer- migration and Customs En- manitarian immigration pro- `>Ì>ViÌiÀÃ ÀÌ iÀ sities. At the same time, the forcement] will propose this grams — temporary protect- č>L>>>`/iiÃÃii Trump administration is rule to improve protections ed status (TPS) and deferred Google is working with TVA planning a new regulation of U.S. workers who may be enforced departure (DED). to deploy 1.6 million solar that would make it tougher negatively impacted by em- “For the labor movement, panels to power two huge for those same students to at- ployment of non-immigrant these programs have been vi- Google data centers in Al- tend college. Currently, inter- students on F and M visas.” tal in ensuring that thousands

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DataIsPower.org AROUND THE The Air Force said in the winter it will rebuild Tyndall Air SOUTH Force Base near Panama City, Fla., to be the “air base of the future.” The base was destroyed by Hurricane Michael.

of working people have rights Hurricane Michael, Tyndall on the job and the freedom to Air Force base near Panama negotiate together for fair pay City, Fla., is somewhat opera- and working conditions,” said tional, with some unmanned AFL-CIO President Richard F-16 jets flying again. The Trumka. More than 300,000 Air Force said in the winter people have TPS protections it will rebuild Tyndall to be in the U.S., which allows the “air base of the future.” them to legally live and work. Officials said the rebuilt base In a period when labor is will be safe from storm surge incredibly tight, the Trump and winds up to 180 miles administration has cut back per hour. The expected cost TPS protections and has let of the rebuild is $3 billion. DED expire. 7>ÀÀi ÕvviÌÌ`ÃVÕÃÃiÃ ÀÌ ÜiÃÌÀ`>½Ã º`Ã>ÃÌiÀ»VÌÀLÕÌ} /Þ`>čÀÀVi >ÃiÌ to California exodus in LiÀiLÕÌ>ÃºčÀ >Ãiv ÌiÀÛiÜ the Future” During the winter quarter, After taking a direct hit from the billionaire Warren Buffet

£È SB&D WINTER 2019 TRANSLAND AROUND THESOUTH

ƂÌ{°Ç«iÀViÌ]Ì iÕi«ÞiÌÀ>Ìi in Mississippi is at an all-time low. With 11,500 employees, Ingalls Shipbuilding is the largest manufacturing employer in the state. warned companies look- 7>Ì> ÕÃiÀV` plummeted 84 percent since cord job growth, posting a ing to expand or relocate i>Àč>â½Ã+Ó November, when Amazon 2.2 percent gain for year- to states that suffer from ÀÌ iÀ6À}>¶ announced it had selected over-year. That percentage unfunded public pensions Forget it! what they are now branding outpaced the nation’s job while describing California’s According to Redfin, a na- as National Landing in Ar- growth rate of 1.8 percent lington County. The lack of in 2018. Economic projec- situation a “disaster.” Cal- tional real estate broker- listings near Amazon’s HQ2 tions for job growth in 2018 ifornia’s unfunded public age, there are exactly seven means that sellers are waiting were at 27,000; however, the pensions, Buffett said, will active listings in the third on the company to complete state saw a net increase of be paid by taxpayers in that week of March in zip code its project before selling at 44,300 jobs. Alabama total state in one way or another. 22202. There were 21 avail- much higher prices. employment also set a record He also said that investing able properties there a year in December with 2,072,600 Mississippi in a plant or business in an ago. This is the area that en- people employed in the state. unfunded pension state will compasses Arlington Ridge, Õi«ÞiÌÀi>V iÃ ultimately mean the busi- Crystal City, Pentagon City >ÌiÜ ÕÃÛi]Þ°]>À«ÀÌ ness, as well as its workers, and Aurora Hills, Va. It is According to the Mississippi >`«ÌÃiÜ>i will at some point be on the also the zip code where Am- Department of Employment Louisville’s Airport Authori- hook to pay for the public azon’s HQ2 is being built. Security, at 4.7 percent, the ty has changed the name of unemployment rate in Mis- its airport from the Louis- pensions. The 22202 housing inventory sissippi is at an all-time low. ville International Airport to In addition, the number of the Louisville Muhammad people with jobs has hit a Ali International Airport in historic high. The 4.7 percent honor of the late boxing leg- unemployment rate has now end. Ali is Louisville’s most been recorded for eight con- famous native son. secutive months. Over 1.16 /iÝ>Ã>Ì>Ã °£ million Mississippians are standing on U-Haul’s working, the second highest annual top 50 growth number ever recorded in the states state. Texas is still the No. 1 in-mi- č>L>>L}ÀÜÌ gration state. U-Haul gen- ÃiÌÃÀiVÀ` erated migration data from In 2018, Alabama saw re- over 2 million one-way truck

Louisville’s Airport Authority has changed the name of its airport from the Louisville International Airport to the Louisville Muhammad Ali International Airport in honor of the late boxing legend and one of Kentucky’s favorite sons. £n SB&D WINTERWWINTERT 2019200191

AROUND THESOUTH

Beautiful Aiken, S.C., continues to rank as one of the best small towns in the South. rental transactions in 2018 to 2023, Silicon Valley will lose percent compared to 2017 such as smartphones, tele- determine which states are its grip on the world’s tech- the second half of last year. visions, computer monitors considered “growth states,” nology innovation center, It should be noted that in and electric vehicles. Rare and then ranks them. Texas mostly as a result of the high the last decade, the Kentucky earth elements are found saw a 5 percent increase in costs of doing business there. distilling industry has added mostly in China. one way U-Haul truck rent- more than 10,000 new jobs, /iÝ>ÃiÝ«ÀÌÃv>{£ als arriving in the state over opened more than 40 new -«>Vi8ÜLÕ`ÌÃ «iÀViÌ]«ÀÌVÃÌÃ 2017. North Texas and the distilleries and increased ÃÌ«ÜiÀvÕÀViÌ Ã«iLiV>ÕÃivÌ>ÀvvÃ Austin area led the state in economic output by more Florida and Texas Businesses in Texas paid one-way truck traffic. than $3 billion. SpaceX founder Elon Musk $364 million in tariffs on im- said in March that the com- Dallas-Fort Worth, ported products in October čÀ}Ì ÕÌÞ]6>°] pany will build its Starship ÕÃÌ>``ÃÌ 2018, according to federal ÜÃº iÃÌ ÌÞ»>Ü>À` and Super Heavy rockets in VÃÌÀÕVÌLÃ data and Trade Partnership Arlington, Va., once again Boca Chica, Texas and Cape In calendar year 2018, Dal- Worldwide. Texas business- has been ranked as the “Best Kennedy, Fla. The 387-foot, las-Fort Worth added 22,000 es spent only $25 million in City to Live in America” by two-stage rocket will cost construction jobs, the most tariffs in April 2018. Mean- Niche. The website named about $5 billion to develop of any market in the coun- while, Texas exports subject Arlington best city for its and the first flight is expect- try. Houston came in second to retaliatory tariffs were outstanding public schools, ed in 2023. with 19,400 construction down 41 percent in October abundant night life, low jobs gained according to the 2018 compared to October crime rate and walkability. "À>`ÃiÌÌ}«>VivÀ Associated General Con- 2017. In addition, exports Niche also named Arlington LÃÀ`> tractors of America. Dallas subject to retaliatory tariffs as the top city in 2016. The From January 2018 to Jan- also led the entire nation for going through Port Houston county is where Amazon is uary 2019, greater Orlando employment growth in 2018, were down 47 percent in Oc- placing its HQ2 and hiring led all Florida markets with adding more than 116,000 tober 2018, while those not at least 25,000 workers in the a gain of 49,900 jobs. South jobs. subject to retaliation were up process. Florida came in second with 34 percent. 30,000 new jobs and Tampa / iÀÕÃ ÌčÕÃÌLÞ 1ÛiÀÃÌÞviÌÕVÞ Bay placed third with 19,300 -V6>iÞV«>iÃ čiÀV>Ü ÃiÞ ÀiÃi>ÀV iÀÃw`}iÜ jobs year-over-year. VÃÌ } }i>À exports take a dive ÕÃivÀV> In the last two quarters, Ap- American whiskey brands, A research team from the či]-° °]>i`Ì ple is investing $1 billion into including Kentucky bour- University of Kentucky has Ì«£ä>}>âi½ÃLiÃÌ new facilities and thousands bon exports, have dropped begun a pilot-scale process- Ã>ÌÜÃÌ i-ÕÌ of jobs in Austin. Google since President Trump ini- ing plant in Webster County, Southern Living magazine’s and Facebook are also taking tiated tariffs on foreign steel Ky., that will work on min- new annual ranking of best up tons of space in Austin’s and aluminum last year. The ing rare earth elements from small towns has been re- newest office towers. KPMG European Union, China, coal. The U.S. Department leased. Named best small recently conducted a survey Mexico and Canada retali- of Energy is also conducting town in the South last year, that showed that the Silicon ated with 25 percent tariffs research regarding the feasi- Aiken saw its ranking drop Valley may be in danger of on various American-made bility of extracting rare earth to No. 4. The winner of this losing its title as tech center products, including whiskey. elements from coal. Rare year’s “Best Small Town in the of the world. Sixty percent American whiskey exports earth elements are found in South” was Beaufort, N.C., of those tech executives that rose 28 percent during the the earth’s crust and are used followed by Beaufort, S.C., were surveyed said that by first half of 2018, then fell 8 in manufacturing products and St. Augustine, Fla. - Óä SB&D WINTER 2019

SNAPSHOTS FROM THE 1: Southern Business & Development hosted its sixth ROAD annual Southern Economic Development Roundtable event at WaterColor in January. The invitation-only discussion included 65 people from 13 Southern states. 2: John Bradley leading a group of energy execs. 3:$GEEC*CTFKPDTKGƂPI members on Hurricane Michael. 4: Victor Hoskins, Stephen Moret and Jason El Koubi during a Q&A about landing Amazon in Virginia. 5: Part of the S.C.- based group: Deepal Eliatamby, Hal Johnson, Chuck Whipple, George Kosinski, Jay Schwedler, Will Williams, Jim Newsome and Will Johnson. 6: Alabama- based Taylor Williams, Ellen McNair, Ed Castile and Randall George. 7: Chuck Whipple and

22 SB&D WINTER 2019 11

Bob Leak on a balcony overlooking the Gulf of Mexico. 8: SB&D owner Michael Randle, James McClain, Jason El Koubi, Allyson Rothrock, Shelly Jacobs and Mark Heath. 9: Gray Swoope, Chris Masingill, Michael Olivier, Jay Moon, Ted Abernathy and Don Pierson. 10: Will Williams. 11: Host Michael Randle. 12: Every year Kentucky attendees bring bourbon for the Friday bourbon break. This year it was Jody Lassiter’s turn. 13: SEDR 2019@WaterColor saw a packed house, including Taylor Williams, Marvin Moss, Jason El Koubi, Chris Masingill, Don Pierson, Jay Moon, Michael Olivier, Shelly Jacobs and Stacy Randle. 14: Bob Leak, Jr. at the t-shirt grab. 15: Michael Randle, Shelly “The Elf” Jacobs and Nancy Windham. 16: Tyler Engle, Will Johnson, Ellen McNair, Jay Schwedler and George Kosinski. 17: Matthew Randle, Victor Hoskins and Stephen Moret at Red Bar in Grayton Beach one week before it burned down. 18: Mac Holladay. 19: Jay and MaryAnn Moon. 20: David Hudgins, Dr. Glen Fenter and Mark Herbison. CONTINUED

WINTER 2019 SB&D 23 SNAPSHOTS 21: John Bradley, Mike Cobb and Taylor Williams. 22: Deepal Eliatamby, John Bradley and Gena Lentz. 23: Ted Abernathy, Jeff McKay and Chris Masingill. 24: Peggy McLean and Raul Peralta. 25: Hal Johnson and Jim Newsome. 26: Iain Vasey. 27: David Thornell. 28: Clif Chitwood, Chris Masingill, Sam Powers, Chuck Whipple, Bob Leak Jr., George Kosinski, Rhonda Clayton, Jay Schwedler, Will Williams and Gene Stinson.29: Michael Olivier. 30: Kyle Touchstone, Mike Cobb and Jody Lassiter.

24 SB&D WINTER 2019 31: Sam Powers. 32: Henry Florsheim. 33: Ellen McNair and Randall George. 34: Clark Gillespy and Stuart Heishman. 35: Bob Leak Jr., Mark Heath, Allyson Rothrock, James McClain and Mac Holladay. 36: The Energy panel, including John Bradley, Mike Cobb, Taylor Williams, Heidi Smith, Clark Gillespy, Stuart Heishman and David Hudgins. 37: Hal Johnson and Kyle Touchstone. 38: Shane Homan, Kyle Spurgeon, Gena Lentz, Henry Florsheim, Iain Vasey, Hal Johnson and Jim Newsome. 39: Scott and Yolanda McLain, David Hudgins and Rhonda Clayton. 40: Kathy and Jim Newsome. - RELOCATIONS EXPANSIONS & For real-time news on business, politics and economic development in the South, go to RandleReport.com. For all economic development projects announced in the South, go to SB-D.com. For information on automotive in the South, go to SouthernAutoCorridor.com. ALABAMA makes the A320 family air- riculture Foundation is pre- Sykes Enterprises to add craft in Mobile. The expan- pared to invest an estimated FBI may invest $1 billion more than 200 jobs in sion will create 400 new jobs. $100 million in a new Ala- in Huntsville Fort Smith bama Farm Center in Chilton Sen. Richard Shelby (R-AL), U.S. Steel restarting Tampa-based Sykes Enter- County that could create up to chair of the Senate Appropri- Alabama mill to take prises, a service provider for 400 jobs. Plans call for a com- many Fortune 500 compa- ations Committee, recently advantage of higher steel plex on 500 acres to include nies, is expanding its cus- announced that the FBI may prices a 5,000-seat air-conditioned tomer service center in Fort invest as much as $1 billion Pittsburgh-based U.S. Steel’s arena, a 150,000-square-foot Smith, Ark. The company as it increases its presence in plans to invest $215 million exhibition building, 400-stall will add 200 jobs. Huntsville. He also said that to install an advanced elec- horse barn, 400 RV hookups the continuing resolution tric arc furnace (EAF) at and a variety of other barns Southland Gaming & budget includes $385 million Fairfield Works is expected and arenas. Racing in West Memphis, for the FBI, which is part of to provide a boost to Ala- Ark., plans $250 million the transference of FBI em- bama’s steel-making industry New jobs coming to expansion ployees to Huntsville’s Red- in its historic home. U.S. Steel Winston County Southland Gaming & Rac- stone Arsenal. In November, had initiated construction of Winston Homebuilders, a ing in West Memphis will the agency said it plans to the EAF at its operations in manufactured home produc- undergo a $250 million ex- move 1,350 jobs to the facility. Fairfield in March 2015, but er, will be taking up residence pansion. The project will suspended construction in at the former Southern Ener- include a 96,000-square-foot Airbus breaks ground on December 2015 due to un- gy Homes facility in Double casino complex and a 20-sto- new line in Mobile favorable market conditions. Springs, which left the area ry high-rise hotel. Southland Jetliner manufacturer Air- The project’s revival means a few years ago. Winston began as a dog racing track bus broke ground on a new the addition of 150 jobs at the Homebuilders will be hiring in the 1950s. $300 million manufacturing Jefferson County facility. 150 workers in the deal. facility in Mobile in January. FLORIDA ARKANSAS The new assembly line will Alabama Farm Center Cape Canaveral has produce the A220-100 and could bring 400 jobs to CoorsTek expanding in captured a new tenant. A220-300 aircraft for U.S. Chilton County, Ala. Arkansas Los Angeles-based Relatively customers. Currently, Airbus The Alabama Farmers Ag- CoorsTek Inc., a manufactur- Space, a 3-D rocket manu- er of ceramic components, facturer and launch services is adding 50,000 square feet provider, has signed a lease to its facility in Benton, Ark. to build and operate its own It’s part of a $26 million ex- facilities at Launch Com- pansion that will increase plex at Cape Canaveral. The employment by 60 workers. company is the fourth with More than 200 people are orbital launch site capability housed at the plant now. at Cape Canaveral. . .SpaceX,

GE Aviation investing $50 million in Auburn, Ala. GE Aviation is expanding its additive manufacturing operation in Auburn. The project calls for a $50 million investment and 60 jobs.

26 SB&D WINTER 2019 6GZCUDCUGF(KTGƃ[VQNCWPEJOKNNKQPGZRCPUKQPCV %CRG%CPCXGTCN(NC / i i`>À*>À]/iÝ>ÃL>Ãi`ÀViÌV«>Þ]ÀiyÞƂiÀÃ«>Vi] will establish a new launch and manufacturing project in Cape >>ÛiÀ>]>°1`iÀÌ i`i>]ÀiyÞÜÛiÃÌfxÓ>` add 200 high-paying jobs there.

ULA and Blue Origin are the 1,000 new employees to sup- Clarke and Hall counties. Material Handling another three. port membership growth The company has located its nounced it was expanding Beacon Pharmaceutical that’s surpassed 1 million cli- North American headquar- its Lexington, Ky., headquar- relocates to Jupiter, Fla. ents. The company will hire ters in Duluth, creating 75 ters and reshoring one of its throughout the state, but Beacon Pharmaceutical, a fo- new jobs; is adding more forklift production lines (the about half of the positions cused early-stage life sciences than 100 new jobs at its man- “S-Series”) to Kentucky from are available in the Tampa firm, will build a state-of-the- ufacturing and R&D facility Asia. The $4.6 million expan- Bay area. art facility in Jupiter. The new in Athens, and more than 50 sion will create 40 new jobs. jobs at the company’s Gaines- 200,000-square-foot head- GEORGIA High-tech aerospace quarters will house 137 new ville manufacturing facility. Health IT company manufacturer to open jobs with a capital investment Chinese tech company establishing headquarters new Kentucky facility of approximately $80 million. moving HQ from New in Atlanta metro Meyer Tool, a supplier of Jersey to Alpharetta, Ga. Insurance giant BioIQ, a health IT company aerospace parts, is opening A China-based manufacturer Progressive to hire 1,500 that provides health testing a new $15.9 million facility of radio-frequency identifica- in Tampa and immunization programs near Erlanger, Ky. The com- tion and biometric technolo- Ohio-based company Pro- for health plans, is relocating pany is acquiring and reno- gy security products, ZKTeco, gressive is hiring 1,500 work- its headquarters from Cali- vating an 83,000-square-foot plans to relocate and expand ers in Tampa. The jobs will fornia to Cobb County, Ga. property that will house 100 its U.S. headquarters from be in customer service, sales The $5 million project will workers. New Jersey to Alpharetta. The and claims with an emphasis create 500 jobs. move is expected to create 40 Commercial furniture on workers who are bilingual Animal pharma investing jobs and bring more than maker expanding in in English and Spanish. $120 million in three $5 million in investment. Kentucky WellCare to hire 1,000 Georgia counties Headquartered in Indiana, KENTUCKY WellCare Health Plans of Boehringer Ingelheim Ani-i- OFS Brands Holding, a man- Florida, one of the Tampa mal Health USA will createe Kentucky company ufacturer of furniture for of- Bay area’s largest companies, 225 jobs and invest more than reshoring jobs from Asia fices, hospitals, hotels and anticipates hiring more than $120 million in Gwinnett, In the winter quarter, Clark schools, will invest $1 mil-

5JCYGZRCPFKPIRNCPV in Adairsville, Ga. Three years after opening a huge plant in Adairsville, Shaw Industries, the largest employer in Bartow County, is adding a 500,000-square- foot addition to the plant, which could double the employment numbers there to more than 600 over the next three years. WINTER 2019 SB&D 27 RELOCATIONS &EXPANSIONS 'ZZQP/QDKNVQKPXGUVOKNNKQPKP.QWKUKCPC ExxonMobil will add a $469 million polypropylene manufacturing unit to its Baton Rouge petrochemical complex. The project will create 65 new jobs and 600 construction jobs. lion in its existing operation LOUISIANA expected to increase to more company, which has operated in Grayson County, Ky., with than 2,000. in Baton Rouge since 1952, Lafayette lands helicopter plans to create 105 jobs. will invest $22 million and plant Louisiana lands $2.2 add 128 jobs in the project. Film manufacturer to In the winter quarter, Switzer- billion methanol complex expand in Kentucky, add land-based Kopter Group AG South Louisiana Methanol Energy services 30 jobs announced that it will assem- announced in January it will manufacturer adding jobs RKW North America plans ble its new SH09 helicopter in build a $2.2 billion methanol in Louisiana to expand its facility in Simp- Lafayette, La. The company, complex in St. James Parish. Bagwell Energy Services is son County and add 30 jobs. which will lease a building at The complex will be built on investing $2.5 million at its The German-owned man- the Lafayette Regional Air- a 1,500-acre site on the Mis- Port of Delcambre fabrication ufacturer of industrial film port, will invest $4.2 million sissippi River. facility in Iberia Parish, La. will invest $18 million in the and create 120 jobs with the Food manufacturer The company will create 150 project. project. Deliveries of the heli- adding capacity in new jobs. copters should begin in 2021. St. Tammany Parish Renewable energy project MISSISSIPPI to put some former coal Epic Piping announces Diversified Foods and Sea- miners to work in Eastern $40 million expansion sonings is investing $12 mil- Kohler Engines expanding Kentucky Epic Piping has announced lion to expand and upgrade in Mississippi Toyota, which has a large as- plans to invest up to $40 mil- its plant in Madisonville, La. Kohler Engines, a leading sembly plant in Georgetown, lion to expand its facilities in The project is the result of manufacturer of industrial Ky., is partnering to build a Baton Rouge, La. A demand moving a production line gasoline and diesel engines, 700-acre solar panel farm in for the company’s pipe spool from Nebraska to Louisiana. is expanding its manufactur- Pike County, Ky. It is one of products is being driven by The deal will create 44 jobs. ing operations in Hattiesburg, the largest renewable energy the number of large-scale Pipe manufacturer adding Miss. The company is making projects in the Appalachian projects underway in the pet- jobs in Baton Rouge a significant investment and region. The project will create rochemical sector along the Stupp Corp., a steel pipe man- is adding 250 jobs. Kohler is 200 construction jobs and 50 Gulf Coast. Epic’s employ- ufacturer, is upgrading its two consolidating a plant in Wis- permanent jobs. ee count, currently at 900, is plants in Baton Rouge. The consin to Hattiesburg.

%JCTNQVVGDCUGF0WEQTRNCPUVQ KPXGUVDKNNKQPKP-GPVWEM[ RNCPVETGCVKPILQDU Charlotte-based steel manufacturer Nucor Corp. will invest $1.3 billion in a new facility in Brandenburg, Ky. The mill will produce steel plates for manufacturers of barges, bridges, rail V>ÀÃ]ÀiwiÀÞÌ>Ã]Ã «Ã>`Ì iÀ products. The new facility will house 400 workers that will earn an average of $45 «iÀ ÕÀVÕ`}LiiwÌÃ°*VÌÕÀi` are (l to r) Nucor CEO John Ferriola and Kentucky Gov. Matt Bevin at the announcement.

28 SB&D WINTER 2019 (QWTJWPFTGFLQDUEQOKPIVQ/KUUKUUKRRKEQWPV[ Corelle Brands, a maker of housewares brands including Pyrex, Snapware and Corelle, announced in the winter quarter it is moving part of its manufacturing and distribution operations to Marshall County, Miss. The facilities will be located in the Chickasaw Trails Industrial Park near Byhalia. The $27 million project will create 400 jobs.

plant in Verona, Miss. The NORTH CAROLINA bedding manufacturer is in- Û>ÀÌÃÜi`wÀ vesting $1.9 million and add- chooses Durham over ing 65 jobs. Illinois or Ireland Pharmaceutical plant AveXis, a gene therapy com- adding jobs in Mississippi pany developing treatments A maker of antacids sold in for rare neurological diseases, Mississippi and Alabama will will invest $60 million to ex- expand its facility in Gulf- pand its manufacturing cen- port, Miss. Geri-Care Phar- ter in Durham County. The maceuticals, which supplies company plans to hire 200 Walmart, Walgreens and associates. that manufactures ground ABB expanding in CVS, will add 200 jobs in the / iÀÃ iÀ-ViÌwV engaging equipment for the Mississippi deal. investing $150 million mining industry. The $15 Swiss company ABB is add- Thermo Fisher Scientific million deal will create 150 MISSOURI ing 200,000 square feet to its is investing $150 million high skill jobs. manufacturing facilities in Purina to spend in its pharma business in Senatobia, Miss., to increase Homestretch expanding $115 million on Greenville, N.C. The expan- production of Tmax XT cir- in Mississippi Missouri expansion sion will add capacity for cuit breakers. The $36 mil- HomeStretch, an upholstered Nestlé Purina PetCare an- the company’s sterile liquid lion expansion will generate furniture manufacturer, will nounced the expansion of its products. 50 new jobs. The company is southeast Missouri factory invest $500,000 and create 71 North Carolina Global also filling the remaining 150 where Tidy Cats brand cat jobs in an expansion of its fa- Transpark growing again jobs of another expansion an- litter is made. The pet prod- cility in Nettleton, Miss. Jetstream Aviation is setting nounced in 2016. ucts company will spend Entergy adding jobs up a new paint facility at the $115 million on the project Illinois medical equipment in Mississippi nuclear Global Transpark in Kinston, and expects to add about 30 maker expanding in operations N.C., and will add 145 jobs. jobs. Mississippi The power company En- The $10.5 million public/ Baxter International is ex- tergy is adding jobs at its Manufacturer to open private partnership will break panding a Mississippi Delta nuclear power division new plant in Missouri ground this spring. plant, with plans to add 50 headquarters in Jackson, Central States Manufactur- Aetna’s expansion to to 100 new employees. The Miss., and also at its nu- ing is opening a new plant in create 300 new jobs company has begun con- clear power plant in Grand St. Peters, Mo. The $6 mil- Aetna, a subsidiary of CVS struction on the addition to Gulf, Miss. New Orleans- lion project will create 88 new Health since November, ex- the plant, which is one of the based Entergy is adding 250 jobs. pects to hire 300 new em- largest industrial employers jobs in Jackson and 70 at its Praxair expands Missouri ployees by the end of 2020 for in Cleveland, Miss. Baxter is nuclear plant in Grand Gulf. plant customer service and clini- investing $100 million. Bedding manufacturer Praxair will expand its air cal care jobs. The company Scotland-based company expanding in Northeast separation plant in Neosho, will spend $2.5 million on a expanding Mississippi Mississippi Mo. The expansion will dou- 16,000-square-foot expansion of its High Point facility foundry Specialty foam manufactur- ble capacity for the company’s to support the new jobs. The Weir Group is expanding er Elite Comfort Solutions liquid oxygen and nitrogen its Newton, Miss., foundry is increasing capacity at its customers. CONTINUED WINTER 2019 SB&D 29 RELOCATIONS &EXPANSIONS +EGGNGCXKPI%CNKHQTPKCHQT/KFFNG6GPPGUUGG/KFFNG6GPPGUUGG The iconic frozen beverage maker, The Icee Co., is relocating its corporateporate headquarters from California to La Vergne, Tenn., about 20 miles southeast of Nashville.shville. The company revealed it would invest $10.3 million to make the move, creating moremore than 200 jobs in ,ÕÌ iÀvÀ` ÕÌÞÛiÀÌ iiÝÌwÛiÞi>ÀÃ°ÀÌ iiÝÌwÛiÞi>ÀÃ°

>ViÀÀiÃi>ÀV wÀ puter numerical control) industry. The expansion is hiring 200 in North machining specialists who expectedd to create 105 newnew Carolina make aircraft parts for cli- permanentent jobs and 500 con- A clinical-stage biopharma- ents such as Spirit AeroSys- structionn jjobs.obs. tems, Boeing, Gulfstream, ceutical company plans to Ortec expandsxpands SoutSouthh Lockheed Martin and Tri- hire 200 workers as it locates Carolinaa plant umph Aerostructures. a commercial-scale immu- Ortec, a bbiomaterialiomaterial andand notherapies plant in Wake Tube manufacturer to polymer technolotechnologygy compa- County, N.C. Cellectis will locate plant, headquarters ny, will investinvest $20 millionmillion to develop gene-edited immu- in Oklahoma expand itst facilities f iliti by b 50,000 50 000 notherapies to fight cancer. Salem Tube, a subsidiary of square feet and increase its Furniture startup to bring Spain-based Tubacex Group, production capacity in Pend- The company will invest $2.1 200 jobs to Hickory, N.C. is establishing its headquar- leton, S.C. The company also million and create 85 jobs in Design Foundry, a new up- ters and manufacturing facili- invested $20 million and add- the project. holstered furniture compa- ty in Durant, Okla. The com- ed 60 jobs in 2016. pany makes stainless steel TENNESSEE ny, announced it will begin Sealed Air to spend and nickel alloy tubes. The manufacturing in a former $24 million to SmileDirectClub to add $40 million project will create furniture plant in Hickory. upgrade its facility in 2,000 jobs in Nashville 140 jobs. The project will create 200 Simpsonville, S.C. region jobs. ABB creating jobs in Sealed Air has entered into a Orthodontic services pro- OKLAHOMA Oklahoma joint venture with Japanese vider SmileDirectClub will In the winter quarter, ABB firm Kuraray to produce expand in the Nashville area Kimberly-Clark is investing announced it will consoli- plant-based food packaging. with 2,000 new jobs. The $120 million in Oklahoma date all of its North American Sealed Air will invest $24 company will invest $217 mill process gas chromatograph million to upgrade its Simp- million in the expansion. Irving, Texas-based Kim- analyzer manufacturing to its sonville facility and will use Silicon Valley recruiting berly-Clark Corp. is invest- facility in Bartlesville, Okla. Kuraray’s plant-based resin wÀÛiÃ+Ì ing $120 million in its Jenks, The project will add 90 jobs. and post-consumer plastic. Okla., mill that produces Nashville Cottonelle and Scott bath SOUTH CAROLINA Frontier Communications After a year of fast growth tissue. The company will add opens call center in Swiss company continues in Nashville, recruiting firm 270,000 square feet to begin Myrtle Beach to invest in South Carolina IQTalent Partners is doubling production on Kleenex fold- Frontier Communications, a Swiss Krono Group contin- the size of its footprint and ed tissue products. The proj- provider of broadband, vid- ues to invest in rural Barn- officially naming Music City ect will create 50 jobs. eo, photo and data services, well, S.C. The company is as its headquarters, which will open a new call center in MST Manufacturing adding 250,000 square feet means moving its central op- Myrtle Beach, S.C. The deal locating in Claremore to its existing manufacturing erations from Silicon Valley calls for 70 jobs. MST Manufacturing will facility there, which will allow to Nashville. The company invest at least $5 million to them to produce the board it InvestiNet to invest $2.1 grew its Nashville office from relocate its operations to currently purchases to man- million and create 85 Jobs 90 to 150 employees in 2018, Claremore. The company ufacture laminate flooring. in Greenville, S.C. and plans to hire additional will transform three build- Swiss Krono will source wood Accounts receivable firm In- workers this year, although ings totaling 52,000 square products locally, which will vestiNet is expanding its facil- the exact number has not feet to house 100 CNC (com- also bolster the local timber ities in downtown Greenville. been announced. 30 SB&D WINTER 2019 FreightWavesF bringing are developing an eight-story ployment rate, according to Hundreds of high-wage newn jobs to Chattanooga office building and 250-room the company’s application for bio-science jobs for San FreightWavesF expects to hotel across from the Gibsonn government incentives. Antonio Guitar Factory building. bringbr 300 jobs to Chatta- TEXAS GenCure, a new company noogan in the next two years BAE Systems redesigns that focuses on cell-based withw the launch of its truck- Kingsport, Tenn., facility Exxon, Qatar to expand therapies and regenerative ingin freight futures program. BAE Systems received a $74.7 LNG export in Texas medicine, is setting up its TheT new program will allow million U.S. Army contract to Exxon and Qatar Petroleum headquarters in a historic truckingtr and logistics compa- design, construct and com- announced recently that they building that used to house niesn to trade freight moving mission a new facility that will go ahead with a $10 bil- an ice and cold storage busi- costs,co helping alleviate some will improve production at lion project to export lique- ness on the East Side. The risk.ri its manufacturing complex in fied natural gas from a plant building on East Houston on the Texas Gulf Coast. The Street has been renamed Ve- LogisticsL company adding Kingsport. Construction of companies said construction locity Texas, and is part of a 5005 jobs in Chattanooga the new facility at the Holston at the Golden Pass plant in planned innovation district ArriveA Logistics is expanding Army Ammunition Plant will Sabine Pass, Texas, would that’s expected to create more itsit facilities in Chattanooga, play a vital part in the man- start before April, and the ex- than 600 good-paying tech Tenn.T The company will in- ufacturing process of several port operation is expected to jobs. vestve $3.6 million and add 500 products that support the begin running in 2024. The jobsjo in the deal. military, and is one of sever- $120 million al multi-year Army-driven project will create 9,000 jobs manufacturing plant FedEx Logistics modernization requirements during the five years of con- serves up 500 new jobs in announces headquarters for the installation. struction and more than 200 San Antonio move in Memphis permanent jobs once the fa- Cuisine Solutions is cook- FedEx Logistics will move its JNJ Express relocates cility is operational. ing up 500 jobs in San An- global headquarters to the to expanded campus in tonio with the opening of a former Gibson Guitar fac- Memphis Asurion adding 430 jobs $120 million plant that will tory building in downtown Transportation company JNJ in Houston make refrigerated food. Con- Memphis. The Memphis Express will invest $83.6 mil- Nashville-based tech care struction has begun on the company says it’s making a lion to expand its operations, company Asurion plans to 290,000-square-foot manu- $48 million investment, and creating 610 new jobs over the double its number of Hous- facturing plant, and is expect- will consolidate multiple lo- next five years. The company ton employees and is moving ed to open in mid-2020. cations, bringing almost 700 will establish a new corporate into a bigger office to house employees to the location headquarters and operations them. The company will cre- Cognizant expands to over the next several years. campus at a Southeast Mem- ate 430 new jobs by the end of Plano, Texas, with 500 As a result of the FedEx Lo- phis shopping center that has the year. jobs gistics announcement, a been vacant for more than a BNSF to invest $405 A New Jersey-based IT ser- New York developer and the decade. The area surrounding million in Texas vices firm that already has Orgel family of Memphis it has a 23.6 percent unem- Fort Worth-based BNSF Rail- a large operation in Irving way, which is part of Warren is adding more workers in Buffett’s Berkshire Hathaway, Plano. Plano’s economic de- will invest $405 million in velopment corporation has Texas this year to fund ex- agreed to provide a $273,000 pansion and take care of reg- grant to Cognizant, which ular maintenance. BNSF has must create up to 500 jobs in a new office to be constructed nearly 5,000 miles of track to near Legacy business park. maintain just in its home state of Texas. CONTINUED

(WLKƂNOVQGZRCPFDKQVGEJHCEKNKV[KP 0QTVJ%CTQNKPCoU4GUGCTEJ6TKCPING Õw ÃÞÌ ÌiV }iÃÃiÝ«>`}ÌÃ manufacturing operations in Research Triangle Park. The company is investing about $45 million and adding 100 jobs to add capacity at its single use cell culture manufacturing trains. WINTER 2019 SB&D 31 RELOCATIONS &EXPANSIONS

5VCPNG[$NCEM&GEMGTQRGPUFKUVTKDWVKQPJWDKP&GPVQP6GZCU&GGPVQP6GZCU A massive shipping hub for tool manufacturer Stanley Black & Deckereckeker is bringing jobs to Fort Worth. The new 1.2-million-square-foot regional distributionistribbution center will employ more thanhan 3300 workers.

Progressive to hire 1,000 Antonio. The project will cre- foundeded in VirVirginiarrginiaginia Beach.Be Beacach.a h manufacturer, will locate in Botetourt County’s shell in Austin ate 571 new jobs. Electric products Ohio-based insurance com- building in the Greenfield in- VIRGINIA manufacturer expands in pany Progressive is hiring Virginia dustrial park. The company 1,000 workers in Austin. The Call center hiring 600 in M.C. Dean, an electrical de- plans to invest a minimum of jobs will be in customer ser- Virginia sign manufacturer, is invest- $20.1 million and will create vice, sales and claims with an The Results Cos. is adding ing $25 million at its plant 50 new jobs. The facility will emphasis on hiring bilingual 600 jobs and leasing addition- in Caroline County, Va. The be Pratt’s second manufac- workers. al space at its call center oper- deal will create 100 new jobs. turing operation in Virginia. >V>ÃiÀÛViÃwÀ ation in Chesterfield County, European manufacturer WEST VIRGINIA expands in San Antonio Va. The company currently picks Virginia Accenture Federal Services employs about 500 workers. Global tech company to ERNI Electronics, a Eu- plans to expand its San An- The project represents an in- open in Charleston, W.Va. rope-based manufacturer of tonio operations and add 500 vestment of $1.5 million. Technology company Infor new jobs. The company plans electrical connectors, is plan- Hundreds of jobs coming ning to build a new office and will open its first West Vir- to invest $5 million as part of to Danville, Va. ginia office in Charleston the expansion plan. plant in Chesterfield County, A Virginia company plans Va. The company plans to in- and create 100 new technol- Credit union to create to bring a large, vacant Dan- vest $25 million and hire 105 ogy jobs. Infor develops busi- nearly 600 jobs in ville property back to life. workers. ness cloud software, special- San Antonio Norfolk-based PRA Group ized by specific industries. Its Cloverleaf Cold Storage Pentagon Federal Credit is investing $15.1 million and products are used in sectors investing $21 million in Union has announced it will bringing 500 jobs to Danville’s that range from aerospace to Virginia expansion open a new $48 million re- Airside Industrial Park. PRA manufacturing to profession- gional financial center in San Cloverleaf Cold Storage will is a debt recovery company al services. invest $21 million to add over 100,000 square feet to its fa- Buzz Foods adding jobs cility in Chesapeake, Va. The in Charleston, W.Va. expansion of the cold storage Charleston-based Buzz Foods warehousing and food logis- will expand its facilities by tics company will create 33 adding a livestock slaughter- new jobs. ing and processing facility. Packaging company The expansion will increase to invest $20 million in access for locally raised ag- Botetourt County, Va. riculture products. The new Pratt Industries, a recy- facility will create 30 full- cled paper and packaging time jobs. -

%NQTQZKUQRGPKPIECVNKVVGTRNCPVKP8KTIKPKC The Clorox Company, a Fortune 500 consumer packaged goods company, plans to establish a new manufacturing operation for its cat litter business in Frederick County, Va. The project will create 100 jobs.

32 SBB&D WINTERWINTER 20192019 SOUTHERNAUTO CORRIDOR-COM For real-time news on business, politics and economic development in the South, go to RandleReport.com. For all economic development projects announced in the South, go to SB-D.com. For more information on the automotive industry in the South, go to SouthernAutoCorridor.com.

Exports of U.S.-made German vehicles Moody’s cuts automotive industry from stable to negative FTQRUUKIPKƂECPVN[ Credit rating company Moody’s has cut its outlook for the automotive There are four German automotive plants in industry from stable to negative. Moody’s based its outlook on slowing the U.S., and they are all located in the South. economic growth, potential political issues such as tariffs, and a bet- Mercedes-Benz operates plants in Alabama and ter-than-expected end to 2018 in vehicle sales. Moody’s expects global South Carolina, BMW’s largest plant worldwide auto sales to grow by just 0.5 percent this year, down from its previous forecast of 1.2 percent growth. is in South Carolina, and Volkswagen operates a large plant in Tennessee. The German Toyota to invest $749 million and add hundreds of jobs in automakers count on exports to China and the South Europe. Last year, German automakers produced In the winter quarter, Japanese automaker Toyota said it will invest $749 750,000 vehicles in the Southern Auto Corridor, million in five Southern states and add 600 jobs. The company will in- of which 56 percent were exported to Europe crease engine capacity in Alabama, transaxle production in West Vir- and China. However, as a result of tariffs, exports ginia, add capacity at its assembly plant in Kentucky, and raise output of to China fell by 37 percent in 2018, dropping aluminum castings in Missouri and Tennessee. Toyota is also building a from 150,000 vehicles to 95,000. 4,000-employee plant with Mazda in Huntsville, Ala.

CONTINUED

WINTER 2019 SB&D 33 ALABAMA motive plant to announce GEORGIA KENTUCKY a facility in the state. Soon, Mercedes-Benz to assemble Mazda and Toyota will join Battery maker breaks Toyota will invest ultra-luxe Maybach SUV at Honda, Hyundai and Mer- ground on $1.7 billion $238 million in its Alabama plant cedes-Benz in making Ala- Georgia plant Georgetown plant Mercedes announced in the bama the only U.S. state to be SK Innovation, a South Ko- Toyota is expanding its Ken- winter quarter that it will ex- home to four foreign-owned rean maker of batteries tucky assembly plant and pand its plant in Vance, Ala., assembly plants. In addition, for electric vehicles, broke adding the production of to build a luxury SUV un- Alabama workers built al- ground on its $1.7 billion the Lexus 300h Hybrid and der the Maybach brand. At most 1.6 million engines in factory in Jackson County, the RAV4 Hybrid. Both ve- $200,000, the vehicle will be calendar year 2018. Toyota’s Ga., in March. The company hicles feature combined the most expensive passen- engine plant in Huntsville will initially provide batter- gasoline and electric engine ger car built in the U.S. The led the way with 630,000 ies for Volkswagen’s plant in power. The project calls for company is also in the early engines built. Hyundai’s Chattanooga. The deal will an investment of $238 mil- stages of a $1 billion upgrade plant in Montgomery pro- create 2,000 jobs. lion. The expansion will not to ready the facility to build duced 597,000 engines and add jobs to the 8,000-em- its first electric vehicles. Honda’s plant in Talladega Korean brake manufacturer ployee plant. to open new Georgia facility Expansion work nearly County produced 356,000 Sangsin Technology Ameri- Ford expanding Louisville completed at Montgomery engines. ca, a manufacturer of brakes Truck Plant Hyundai plant Korean auto supplier setting used by Hyundai and Kia, Ford will add capacity of the Work is well underway for up shop in Alabama is opening a new plant in Ford Expedition and Lin- Hyundai’s engine head ma- A Korean supplier to Hyun- McDonough, Ga. The $20 coln Navigator at its truck chining plant along with dai Motor Manufacturing million project will create plant in Louisville, Ky. Ford other improvements at of Alabama plans to open 200 jobs. will move 550 workers from Hyundai’s massive auto as- its first U.S. facility in Ala- its Louisville SUV plant to sembly plant in Montgom- bama’s Lee County. Yongsan Kia begins export of new the truck plant in the deal. ery. Hyundai is investing Automotive USA is invest- Georgia-built SUV $388 million on the expan- ing more than $5.5 million Georgia Port officials and LOUISIANA sion. The engine plant will in a manufacturing facili- executives with Kia Mo- Super ATV to locate in be able to support 700,000 ty in Opelika. The interior tors Manufacturing Geor- Louisiana engines per year for Sonata parts manufacturer will cre- gia (KMMG) celebrated in SuperATV will locate a man- and Santa Fe models that are ate 150 jobs in the deal. February the first exports of ufacturing and distribution built in Montgomery and at Israeli auto parts supplier the new eight-person SUV facility in Shreveport, La. the Kia plant in West Point, expanding in Auburn, Ala. called the Telluride. The The company manufactures Ga. The new facility will be Arkal Automotive has in- Telluride is a new model aftermarket parts for a va- operational in May. vested $2.5 million and is being built at Kia’s plant in riety of all-terrain vehicles. Alabama made almost 1.6 adding 25 jobs to expand its West Point, Ga. The SUVs The $4.35 million deal will million engines in 2018 Auburn facility. The com- are being shipped from create 75 jobs. Mazda and Toyota are pany supplies plastic parts the Port of Brunswick to NORTH CAROLINA building their joint plant in to Mercedes-Benz, BMW, ports around the Arabian Huntsville, the latest auto- Volkswagen and Audi. Peninsula. New North Carolina megasite

Toyota is investing $238 million in its Kentucky assembly plant and adding the production of the Lexus 300h Hybrid and the RAV4 Hybrid.

34 SB&D WINTER 2019 planned A former 3.5 million-square- foot tobacco factory in Concord, N.C., will be de- molished to make way for a 2,000-acre megasite. The Mercedes-Benz Vans has demolition of the sprawl- begun hiring for a third shift ing Phillip Morris operation at its South Carolina plant, will take the rest of the year. with a goal of adding 200 to When completed, the site bring its headcount to 1,300 will be called The Grounds workers by 2020 to build the at Concord. new Sprinter vans. SOUTH CAROLINA

Mercedes-Benz Vans hiring single user. A labor force of production. The first EVs for third shift TENNESSEE nearly 850,000 people, and are expected to roll out of the Mercedes-Benz Vans has be- more than 20 vocational and GM unveils new Cadillac SUV plant in 2022. About 1,000 gun hiring for a third shift, technical training facilities being built in Tennessee jobs are being generated in with a goal of adding 200 to General Motors, which re- are within an hour’s drive or the expansion. bring its headcount to 1,300 cently announced the closure less. workers by 2020 to build of five North American fac- Nokian to begin hiring at the new Sprinter vans. The Auto supplier to set up shop tories, unveiled the 2020 Ca- Tennessee tire plant German automaker invested in South Carolina dillac XTC, which will be as- Finnish tire maker Nokian, $500 million in 2015 to ex- Fuyao North America is in- sembled at its plant in Spring which is on target to com- pand its existing reassembly vesting $16 million in a fa- Hill, Tenn. GM invested $300 plete construction of its $360 site in Ladson to a full-scale cility in Fountain Inn, S.C. million in its Tennessee facili- million plant later this year in manufacturing operation. The company, which makes ty to create a line for the XTC, Dayton, Tenn., said it plans to and has invested more than hire up to 50 production em- Volvo begins exports of automotive glass, will hire 70 $2 billion in the plant since ployees during the first quar- model made in in the deal. 2010. The Spring Hill facility ter of 2019. South Carolina QM Group expanding in is GM’s largest, encompassing Arconic investing $110 Sweden-based and Chinese- Orangeburg County, S.C. 7.1 million square feet. million at its Tennessee owned Volvo has begun Quality Model (or QM) is facilities exports of its S60 model expanding its plastic injec- New report shows Volkswagen sedan made near Charles- Arconic is investing $100 tion molding operations in supports thousands of jobs in ton in Ridgeville, S.C. The million to expand its facility Orangeburg, where it makes Tennessee automaker expects to build A report by Ernst & Young in Alcoa, Tenn., in a project products for the automotive 50,000 S60s at its plant this showed that Volkswagen’s that will bring 70 new jobs industry among others. The year with plans to export plant in Chattanooga sup- to the area. Arconic plans to move will create 37 new jobs about half through the Port ports 16,400 jobs in Tennes- get out of the aluminum can and involves a $9.5 million of Charleston to 93 countries. see. The report also showed sheet business and ramp up investment. The South Carolina-made that $73.8 million in state and industrial and automotive vehicle will not be exported PPG invests $10 million in local taxes were generated by aluminum products. to China amid trade battles the VW plant and its suppli- Greenville, S.C. Auto supplier announces between the U.S. and China. ers in the state in 2017. PPG will invest $10 million $11.4 million Middle New megasite in the South is in a new 82,000-square-foot Volkswagen to assemble Tennessee investment ready for occupant facility and class A paint line electric vehicles at its Togo North America will in- The I-77 International Me- at its coatings services facility Tennessee plant vest $11.4 million to establish gasite is now ready for a in Greenville. The expansion German automaker Volkswa- a production facility in Rob- single occupant in Fairfield is designed to accommodate gen has chosen its Chattanoo- ertson County, where it plans County, S.C. The 1,500-acre increased demand for class ga plant for the company’s to create 58 jobs over the next site is about 20 miles north A coatings application and first electric vehicle facility five years. The Japan-based of Columbia, S.C., and 60 value-added services for the in North America. VW will company makes automo- miles south of Charlotte. automotive and large truck invest $800 million to retrofit tive parts ranging from hose The site is designed for a markets. the plant for electric vehicle clamps to various springs. -

WINTER 2019 SB&D 35 36 SB&D WINTER 2019 Three BY MICHAEL RANDLE Not-So-Easy Pieces Three monumental factors are holding back a good economy.

he winter quarter is the best of time of the year for any data hound journalist. Economic indicators and Topinions from the previous calendar year begin to show up at various media properties, think tanks, the two most important government bureaus that measure the economy and, of course, from the vast number of economists out there releasing their year- end assessments.

CONTINUED

WINTER 2019 SB&D 37 /KFYGUV 5QWVJ 2018 VTKNNKQP 2018 VTKNNKQP 2017 VTKNNKQP 2017 VTKNNKQP

Gross 4GIKQPCN 2TQFWEV

0QTVJGCUV West 2018 VTKNNKQP 2018 VTKNNKQP 2017 VTKNNKQP 2017 VTKNNKQP

Source: Bureau of Economic Analysis

The GDP growth in the U.S. economy ing up the four U.S. regions — South, The South is leading in 2018 was at 2.9 percent. With that West, Northeast and Midwest. growth rate of 2.9 percent, gross do- As you can see in the graphic above, the way among other mestic product in 2018 matched 2015 GDP in each U.S. region rose in 2018. regions in “gross and blew away 2016 (1.6 percent), two Furthermore, the 15-state American years that saw record inflows of foreign South is out-pacing the other regions, regional product,” or direct investment (FDI) into the Unit- leading them by a wider margin in gross ed States. In 2015, foreign companies product than just five years ago. Ac- GDP tallied in states poured $466 billion into the U.S., and cording to the International Monetary 2016 saw FDI of $457 billion, the two Fund, as of the end of 2018, the South’s making up the four best years in U.S. history. economy based on GDP is now more Forty-seven of the 50 states also saw than half the size of China’s and remains U.S. regions — South, their economies expand in calendar the third largest economy in the world. year 2018. In fact, the Bureau of Eco- The graphic on page 40 shows the four West, Northeast and nomic Analysis estimated that in 2018, U.S. regional economies and how they total U.S. GDP rose above $20 trillion compare to the economies of other Midwest. for the first time. The South is leading countries based on GDP in 2018. These the way, even pulling away from other are the 10 largest economies in the regions in what we call “gross regional world. The South is indeed pulling away product,” or GDP tallied in states mak- from the other U.S. regions. CONTINUED 38 SB&D WINTER 2019 OPPORTUNITY KNOCKS IN KENTUCKY WITH

Kentucky has 144 Opportunity Zones. That’s 12 dozen places where you can open or expand a business and realize significant tax benefits. Be one of the first to take advantage of these opportunities. Find out more at KYOZ.com (TCPEG United States $2.79 trillion $20.51 trillion

United Kingdom %JKPC $2.80 trillion $13.45 trillion

)TQUU&QOGUVKE 2TQFWEVD[ 75/KFYGUV 755QWVJ $3.80 trillion %QWPVT[CPF $6.82 trillion 754GIKQP 2018

)GTOCP[ $4.02 trillion U.S. West $5.19 trillion

750QTVJGCUV ,CRCP $4.71 trillion $5.07 trillion

Source: International Monetary Fund

Yes, the economy remains in decent no one left to fill a job. While the U.S. economy still has legs shape and the job market is the best in this 10-year recovery period with Today’s job market reminds me of a re- it has been in decades, sans February a growth rate of about 3 percent, 2018 mark made by Fred Harris, the former when only 20,000 jobs were created. should have seen a GDP growth rate of (now retired) SVP of Economic De- Still, as of March (196,000 jobs), the at least 4 percent, possibly higher. There U.S. has seen 102 consecutive months of velopment of the Nashville Chamber are three primary issues holding back job growth. Unemployment has reached of Commerce, in 1999, at the tail end economic growth in the U.S. and in its lowest level in 49 years. Workers are of the longest economic recovery on the South — demography, a significant scarce, meaning just about everyone record. Fred said, “Michael, I’ve never drop in foreign direct investment and who had trouble finding a job in previ- seen anything like it in the decades of trade wars. ous years is working, and that includes working at the chamber. We have peo- The first issue holding back the econo- low-skill and high-skill jobs. ple here in Nashville who are working my and keeping GDP growth at under 3 that don’t even want to work.” I am unsure whether the paltry 20,000 percent is that we seemingly have over 7 jobs created in February in the U.S. was If this economy remains a 10-year spec- million job openings every month and the result of the economy slowing or be- tacle, what’s keeping it from growing at no more than 300,000 people taking cause of demographics, in that there is 4 percent? those jobs per month. But in reality, the 40 SB&D WINTER 2019

average monthly job gains are right at are the greatest threat 180,000 per month over the last year, Low birth rates so no more than 2.2 million jobs were to our economy and our society at large. gained last year. Some economists based in other countries have predicted The February jobs report shocked just about everyone, including many econ- that if they cannot replace current workers, they are omists, with only 20,000 jobs gained in the U.S. But, given the long-term demo- living in a “dying nation.” graphics, those 20,000 jobs are not sur- prising. The Federal Reserve has stated for three years that the economy will continue to grow at 50,000 jobs created per month. Get used to those numbers WE CALL THEM and say goodbye to 300,000 jobs created in consecutive months. Sure, there might be an outlier when 300,000 jobs SMART SITES. are created, but that will be rare for years to come. YOU’LL CALL THEM A NO-BRAINER In today’s economy, we have over 7 million jobs that can’t be filled in any given year, and that has been the case for three WHAT ARE or four years now. This labor squeeze is Smart Sites? without question holding back growth in this country. Imagine the effect on the economy if those 7.5 million jobs SHOVEL-READY for development that are available now were filled in one year, instead of rolling over each year? ON-SITE municipal electric service If that materialized, the U.S. in that year would have at least a 4 percent, possibly 5 percent growth in its economy by my WATER & SEWER within 500 feet estimations. The question you might be asking now is, “Why can’t those 7.5 WITHIN 5 MILES of Interstate or Interstate-quality highway million jobs that seem to be eternally available be filled?” REVIEWED AND QUALIFIED by consultants and engineers Some will point out that, on paper, there are about 6 million unemployed people in the U.S., with about 7.5 mil- Smart Sites are a slam-dunk choice for companies that are ready lion jobs available. Let me tell you with to grow now. great confidence, those figures are way Faster construction, fewer uncertainties and less risk for companies beyond full employment, even more so and site selectors alike — that’s the genius of the Smart Sites than the late 1990s, the last time we experienced full employment. qualiﬁcation program. But that’s not all. Our many Smart Sites are located in some of the best places in America to live and do business. If you maintain the simple fact that there are 6 million available workers in To learn more about these properties and our growing list of other the U.S. to fill 7.5 million available jobs, Smart Sites, contact Brenda Daniels at 800.768.7697 ext. 6363 then you have a narrow view of the situ- or [email protected]. It’s a no-brainer. ation. An unemployed person is anyone age 16 to 64 that is not working, according to the feds. How many of those are students, disabled, family caretakers, retirees, mentally ill or drug addicted? It is estimated that about 5 million of those 6 million people have a reason

42 SB&D WINTER 2019 Puzzled over your next move not to work as a result of my calculations in the Carolinas? based on tons of data processed. So, essentially, the U.S. currently has about 1 million (or less) unemployed, hirable Our economic development people to fill those 7 million jobs. The reasons why we can’t fill the jobs lawyers can help you piece that are available are not complicated, yet, they are not well known. I have everything together. written about the factors ad nauseam for more than four years. But since we have new readers each issue, it’s probably best to repeat the demographic ingredients holding back economic advancement, not only in this presidential cycle, but in all cycles that go back to Clinton and yes, even Reagan. For one, we are in a baby bust. The U.S. population hasn’t grown above 1 percent since 2002. In short, this generation of people from about age 21 to 41 is just not having children at the same rates we have seen historically. In fact, last year the U.S. saw its lowest fertility rate since the Great Depression at 60 births per 1,000 women of child-bear- ing age of 15 to 44. For decades after World War II, the U.S. could count on an average of 200,000 people turning working age (16) each month. The current 17-year baby bust has brought that figure down to an average of 70,000 people turning working age each month in the last four years. That is expected to drop to 50,000 peo- Companies large and small meet their challenges ple turning working age per month by at the job site, at the deal table, in court and in 2028 according to the Census Bureau. the halls of government with Nexsen Pruet. This is a systemic problem. In fact, low birth rates are the greatest threat to our economy and our society at large. Some economists based in other countries have predicted that if they cannot replace current workers, they are living in a “dying nation.” The biggest challenge this country is facing now, and for many years or de- 1230 Main Street | Suite 700 | Columbia, SC 29201 cades to come, is that too few people (T) 803.771.8900 | (F) 803.253.8277 are being born and too many people 4141 Parklake Avenue | Suite 200 | Raleigh, NC 27612 are aging out of the workforce. In oth- (T) 919.755.1800 | (F) 919.653.0435 er words, we cannot replace those aging Tushar Chikhliker | SC Economic Development Team Leader Ernie Pearson | NC Economic Development Team Leader out the workforce. We’re not even close to being able to fill the number of jobs More than 190 lawyers in Charleston, Columbia, Greenville, Hilton Head and currently available. Myrtle Beach, South Carolina, and Charlotte, Greensboro and Raleigh, North Carolina. So, as a society, what does this mean? It nexsenpruet.com means we cannot pay for future benefits such as Social Security and social medical programs like Medicaid. Why? With fewer workers there are less taxes collected. Social benefits in this country are paid generationally. For example, taxes on my wages are currently paying for my parents’ benefits. If there are fewer workers, how are our benefits or our childrens’ benefits going to be paid? Before he retired from politics, Speaker Paul Ryan said this: “We have something like a 90 percent increase in the retirement population, but only a 19 percent increase in the working population in America. So what do we have to do? Be smarter, more efficient, more technology. . .still going to need more people.” Is the answer having more children? Japan, like many others countries, is getting creative when it comes There is an easier solution. to combating its population decline. Shown here, an older Japanese President Trump said in this year’s State of couple walks past an advertisement displaying a picture of a baby. the Union address that “legal immigrants enrich our nation and strengthen our society in countless ways. I want people to come into our country in the largest numbers ever, but

Skilled Workforce. Centrally Located. Advanced Manufacturing.

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44 SB&D WINTER 2019 they have to come in legally.” This state- immigrants from Central America have is going to be replaced is by increasing ment and Trump’s apparent pullback on crossed the border in much larger num- legal immigration by millions each year. immigration was a shock to immigra- bers than late last year. In fact, the num- Slow, if not negative, population growth tion hardliners in his base. Let’s hope bers are so large (about 75,000 a month) is happening all over the developed he and Congress act on those words, that authorities on the border are cur- world. It’s happening in Europe, Asia and because solving the full employment rently overwhelmed. and low fertility rate dilemma may be as Japan. Even China’s fertility rate is way During President Trump’s first two simple as increasing legal immigration. down. But, so far, only Japan with its in- years, apprehensions at the border av- tern program for Chinese workers is do- Yet, the facts are this: Legal and illegal eraged about 32,000 per month. During ing something about it. We certainly are immigration has fallen in the last de- President Obama’s two terms, the aver- not, yet. If you can’t replace your work- cade, mainly due to a decrease in the age number of apprehensions at the bor- force, there is only one thing to do — number of illegal immigrants coming to der per month was 34,000. The monthly accept slower economic growth. the U.S., and fewer visas being granted average under Bush was 81,000 appre- to those wanting to legally migrate over hensions per month. So, outside of the Now, illegal immigration is a political the last two years. The decrease in the last four months, there have been fewer matter. I realize that some are very hostile growth of the unauthorized immigrant immigrants seeking asylum in the Unit- to illegal immigrants because our presi- population can partly be attributed to ed States compared to the 2000s. dent is, even though almost all of us — the fact that more Mexican immigrants including President Trump — benefit So, the first factor holding back the are leaving the U.S. than coming in, ac- from their work and almost all of us have economy is simply a lack of labor. . .no, cording to the Pew Research Center in a paid an undocumented worker at one let’s simplify that to a lack of people, pe- report in November 2018. time or another. Here are a few examples riod. It’s no longer a skills gap. Everyone of how important illegal immigrants are However, since that report was re- who has skills has a job. Today there is a to the nation’s economy. leased, it should be noted that in the body gap, and in light of the low birth- last four months or so, undocumented rate, the only way the current workforce Number one, they perform jobs Amer-

WINTER 2019 SB&D 45 icans will not do, such as picking fruits and vegetables and other farm work. There isn’t a single farmer in America — most of which are getting hammered by tariffs issued by China — that has ever said, “We need less undocumented workers.” I realize that is political. But the argument that undocumented workers “steal” from America through social programs is laughable. Most of them pay taxes for social services they can never use, including Social Security, Medicare and Medicaid. Also, we have all heard about the skills gap crisis. It’s really not a crisis. Compa- nies love to say they can’t find “skilled labor.” For some, this is an excuse for hiring levels that do not meet the thresholds outlined in their incentive contracts. Why don’t these companies teach the skills their new workers need once they are hired? If you are trying to fill 7.5 million available jobs at a rate of 20,000 per month like that found in the 0QpUMKNNUICRETKUKUq February jobs report, you’re not dealing HQTVJGUGUVCVGU with a skills gap, you’re dealing with a TOP PHOTO: According to body gap. Mississippi Gov. Phil Bryant, And the final example: President Trump workforce is the No. 1 decision wants to build a wall on our Southern location driver for today’s border with Mexico. I have half-jok- industries, and the state has ingly said many times, “Yes, we need to made funding for workforce build a wall to keep our labor, legal or training a priority. Pictured is not, in this country.” I say this because East Mississippi Community President Trump is going to need illegal College’s new Communiversity, immigrants to build that wall. . .half of located in Lowndes County. the construction workers in Texas are CENTER PHOTO: Louisiana’s undocumented. FastStart program has been Tariffs and weak foreign direct recognized as one of the investment nation’s top state workforce The United States is home to the largest training programs. Launched amount of foreign direct investment in in 2008, it has trained the world. Yes, much more than China 26,000 workers for 175 and any country in Europe. Not only is companies. Here, the Software the U.S. the largest recipient of FDI in Engineering Apprentice Program is producing talent for the GE Digital the world, it is also the largest direct in- Technology Center in New Orleans and other tech employers there. vestor abroad. BOTTOM PHOTO: The Kentucky Federation for Advanced Manufacturing Many people believe that U.S.-based Education (KY FAME) is an apprenticeship-style educational program. multinational companies opening plants Another state program, the Kentucky Work Ready Community in offshore countries is a slap in the face ViÀÌwV>Ì«À}À>]Ã>i>ÃÕÀiv>VÕÌÞ½ÃÜÀvÀViµÕ>ÌÞ° Ài to American workers. Most economists than 70 percent of Kentucky’s counties are Work Ready or Work Ready in would aggressively argue that point (as Progress. One hundred percent of Kentucky’s counties have begun the do I), in that 74 percent of the accumu- process to become Work Ready. lated U.S. outward bound FDI last year 46 SB&D WINTER 2019 was spent in high-income developed countries, such as the U.K., Germany, Japan, etc., where manufacturers plan to SOME TAKE CREDIT. sell their goods, not low-income unde- veloped countries. WE TAKE INITIATIVE. The trend since the recession ended in 2009 for not only U.S.-owned manufacturers and service providers, but foreign-owned as well, is to make it and sell it in the country (or nearby) where your buyers are. Or “make it where you sell it,” a phrase used in a cover story SB&D ran in 2010 about reshoring. This economic model of “make it where you sell it” has transformed U.S. manufacturing as thousands of manufacturers have repatriated jobs and plants to this country because it is economically feasible to do so. Sure, there are plenty of plants offshore that make things for U.S. consumption. But the larger items, such as cars, tires, construction equipment and say, large pipe used in the oil and gas industry, are best made in the country where they are sold. It’s just economics, considering the cost of shipping and other factors. The reshoring event that began in 2010 remains a key and favorable component in the U.S. economy. Manufacturing jobs began their turnaround after the recession simply because the U.S. be- Butler Snow’s Economic Development team has represented a large came more competitive, specifically in and diverse group of manufacturing, energy, health care, warehousing, energy costs for manufacturing plant processing and distribution enterprises, including extensive involvement in loads. It should be noted that around many of the region’s mega-project announcements. 2010, the fracking frenzy began in ear- nest, putting the U.S. in an enviable Whether your company is exploring expansion or relocation, Butler Snow is position to offer energy costs no other able to provide a comprehensive scope of legal, consulting, and business country could offer. That advantage re- EHZMWSV]WIVZMGIWXSQSZI]SYVTVSNIGXJVSQWXEVXXSČRMWL mains today, and the export of our U.S.- mined energy has never been higher. 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Box 6010, Ridgeland, MS 39158-6010 I read several economic reports on the WINTER 2019 SB&D 47 subject, specifically a report done by the Boston Consulting Group in 2011 titled “Made in America Again: Why Manu- facturing Will Return to the U.S.” That may still be the most important economic development report (especially for the South) ever written. Because of its low cost of operating a business, combined with the fact the region was suddenly swimming in natural gas, the “Made in America, Again,” authors — specifically Hal Sirkin — predicted that in just a few years, manufacturing plants in the South would be cheaper to operate than those in China. That has happened. FDI is faltering in the U.S., and the political atmosphere and tariffs are the main reasons. While reshoring or repatriating manufacturing facilities back to the South is The South’s economy is built for FDI. The region boasts indeed a trend, foreign direct invest- more ports than any other region by a wide margin. ment in the U.S. has fallen on hard times Shown here is the Port of Corpus Christi. after setting investment records in 2015

48 SB&D WINTER 2019 and 2016, as mentioned in the introduc- FDI inflows into the United States (FDI- The South’s economy is built for FDI. The tion of this story. President Trump’s tar- US) dropped to $275 billion in calendar region boasts more ports than any other iffs (I write “President Trump’s tariffs” year 2017. That is down by 40 percent region by a wide margin. The South has because the taxes were born by exec- compared to 2016 and 2015. And FDI- the lowest union rate of any other U.S. re- utive order and not by a bill passed by US inflows in 2018, which are not avail- gion by a wide margin, and countries like Congress) have made investing in the able yet, look much worse than 2017. Japan, Germany, the United Kingdom, U.S. by foreign companies a risk. Why? In the second quarter of 2018, Belgium, South Korea, The Netherlands FDI in the U.S. was negative $8.2 billion, and Canada have made massive invest- President Trump envisioned the tariffs meaning a divestment, or foreign firms ments in the region and continue to do would, in part, attract foreign invest- selling off their U.S. subsidiaries. so, just at a lower pace. ment because if you build a product in the U.S. it is immune to the levies, which Q2 2018 is one of only six quarters since As a result of the tariffs, investment are essentially a tax on products that are 1982 that the U.S. has seen net divest- from China has essentially ceased at a imported here. But so far, the exact op- ment in FDIUS. The United Nations time when the Chinese were the fast- posite has happened when it comes to Conference on Trade Development est growing country in inflows into inflows of foreign companies investing reported at the end of 2018 that FDI- the United States just two years ago. in the U.S. In other words, what has hap- US fell by 40 percent for the first half The impact of the tariffs are real and in pened historically when the U.S. puts in of 2018 compared to 2017, which saw some cases, very worrisome. For exam- place protectionism policies is that less a 40 percent drop from 2016. This is a ple, Chinese foreign direct investment is sold, and what is sold costs more. Tar- massive issue for the economy consider- in the United States in 2016 was $46 bil- iffs work for some industry sectors, but ing the fact that the 15-state American lion. That figure dropped to $30 billion the vast majority get hammered. And South in some years captures over 55 in 2017. In 2018, after the tariffs were that is exactly what has happened in the percent of foreign direct investment in enacted by the U.S., then by the Chinese first year of Trump’s tariffs. this country. in retaliation, China’s investment in the

WINTER 2019 SB&D 49 U.S. dropped to just $4.8 billion, or 90 end to industrial subsidies. Good luck expanding the deficit. The Chinese percent less than two years earlier. with the subsidies, which are not sub- economy has been slowed significantly sidies at all, but incentives in exchange by the tariffs Trump has levied on Bei- Why is foreign direct investment so im- for hundreds of millions in investment jing. In fact, it has slowed to the point portant to the South and the U.S.? Since and hundreds of thousands of jobs. the manufacturing sector began adding that it has hurt our exports not only to A subsidy is a bailout (such as GM in jobs in 2010 and every year since at a China, but Europe as well. In December 2009), which creates zero jobs initially. rate not seen since the 1990s, two-thirds 2018, U.S. exports declined nearly 50 (Editor’s note: You writers who call in- of those new manufacturing jobs were percent compared to December 2017. centives “subsidies,” please refrain from created by foreign-owned companies. Now, it should be noted that exports in doing so and explain the difference be- Think about that. Since the recession 2018 surpassed 2017 by a small margin. tween the two.) ended, the U.S. has added more than Yet, after nearly a year since imposition 1 million manufacturing jobs and By the time this issue is mailed, Presi- of the tariffs, is the drop in December most of those jobs were created by for- dent Trump and his trade officials may exports the beginning of a trend? eign-owned manufacturers. Those for- have struck a trade deal with China. In Also contributing to the trade deficit eign companies pay wages, on average, the meantime, President Trump’s year- setting all-time records was Trump’s 24 percent higher than their domestic long trade war has helped widen the $1.5 trillion tax cut. The tax cuts are counterparts. trade deficit he has fought so hard to now being financed by increased gov- reduce. At the end of 2018, America’s Specifically, here is what President ernment borrowing. This has increased trade deficit in goods with other coun- Trump is trying to do with the tariffs U.S. debt to $21.5 trillion at the end of tries rose to its highest level in history. with China: The trade talks underway fiscal 2018. Many economists warned The U.S. imported a record amount of between the U.S. and China are centered President Trump that the tax cut would goods, which increased the deficit to on providing better access in China for both increase the national debt as well $891.3 billion. U.S.-based companies, enforcement of as increase the trade deficit. Remem- intellectual property protections and an Trump’s trade war with China is indeed ber, all countries generate trade deficits

50 SB&D WINTER 2019 Texas oil and gas pipe firms are filling out government paperwork in attempts to get exemptions from 25 percent tariffs on foreign steel imposed by President Donald Trump. One steel manufacturer in Texas has filled out 500 exclusion requests to the U.S. Department of Commerce since tariffs have been imposed, most of which have not been processed.

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& Martinsville-Henry County Economic Development Corporation | CommonwealthCrossing.comWINTER 2019 SB D 51 when they consume more goods than farmers, those who work with metals RITEDOSE they generate at home. The tax cuts and just about every industry imagin- gave some Americans extra cash. What able. The sizes of the companies that did they do with that extra cash? Many are hurt by these tariffs are meaning- EXPANDED of them bought more imported goods. less, because the damage is relative and widespread to all. Winners and losers in Trump’s HERE trade war The Cato story is written by Scott There are some winners in Trump’s Lincicome, who is a senior policy ad- trade wars, not many, but there are a few. viser at “Republicans Fighting Tariffs,” Steel mills have prospered dramatically, an international trade attorney, Cato In- not in job generation, but in profits. stitute adjunct scholar and adjunct pro- Companies like Charlotte-based Nu- fessor at Duke University Law School. It cor are setting revenue records. When profiles very accurately 202 companies Trump put tariffs on foreign-made steel harmed by these tariffs. and aluminum, domestic steel man- “Here Are 202 Companies Hurt by ufactures saw a strategic opening and Trump’s Tariffs” they pounced on it. For the most part, The introduction to the Cato story: they raised the price of steel. “The debate over tariffs has mostly But even with the tariffs in place, few emphasized their impact on economic jobs have been created at steel plants in growth and jobs, which overlooks spe- the U.S. Technology advances at those cific stories of suffering caused by Pres- plants have created massive job losses ident Donald Trump’s trade war. Below We invite other health science in the sector, much like that in other are more than 200 examples of the dam- companies to locate here, industry sectors. In 1980, there were age done by Trump’s tariffs, aggregated where innovation, workforce, over 500,000 workers at steel plants in with (by) Republicans Fighting Tariffs. and technology meet. the United States. Today, even after the The victims and their stories differ, but Trump tariffs on foreign-made metals, the catalyst is the same.” there are about 150,000 jobs at steel The Cato Institute’s report included plants, with a gain of about 4,000 jobs those bruised by both the U.S. tariffs on last year. CHARLOTTE, NC imports and retaliatory tariffs on U.S.

GREENVILLE, SC On the other hand, we have tens of exports. We have hand-picked 21 exam-

77 thousands of manufacturers who finish ples of the 202 that Cato profiled in its 26 metal products, such as HVAC, appli- study. Go to Cato’s report to read about FLORENCE, SC ance, auto parts manufacturers and au- the other 181 companies profiled. tomotive OEMs. The number of steel ATLANTA, GA 1. Fluor: “The oil and gas company gets 20 plants in this country is nothing com- COLUMBIA AIRPORT some components for its plants from pared to those manufacturers that use CHARLESTON, SC Chinese manufacturers. Its major meth- steel. These companies suddenly saw anol project in Louisiana could be de- their costs for steel and aluminum sky- layed or canceled due to increased costs rocket. Not only that, many of the U.S.- and uncertainty.” based steel suppliers cannot even come close to producing the specialty steels 2. Arrow Fasteners: “The staple man- that American manufacturers need ufacturer cannot pass along tariff-re- from foreign suppliers. So, many steel lated increases in input costs to cus- product manufacturers must still rely tomers because they would just turn to on foreign suppliers at a tax penalty of foreign competitors. ‘We’re stuck,’ says 25 percent. the owner.” After some research, I discovered a re- 3. General Motors: “The car maker, CONTACT port released in the fall of 2018 by the which cut its earnings forecast for the Cato Institute titled, “Here Are 202 year because of surging prices for steel Charlton L. “Chuck” Whipple, SCCED 803.691.3954 Companies Hurt by Trump’s Tariffs.” and aluminum caused by tariffs, is con- [email protected] This article is the best example I have sidering cutting U.S. jobs.” (GM later MIDLANDSTECH.EDU/enterprise seen of the effect of Trump’s tariffs on closed four plants in the U.S. and one 52 SB&D WINTER 2019 in Canada.) 4. Batesville Tool & Die: “The Indiana company may be forced to shift some production to a plant in Mexico in re- sponse to higher steel prices caused by tariffs.” 5. CaseLabs: “The California PC case maker has been forced into bankruptcy and liquidation because of Trump’s tariffs, which raised its costs by almost 80 percent.” 6. BMW: “The car maker says tariffs could lead to ‘negative effects on investment and employment in the United States.’ ” (Note: BMW’s only U.S. plant, and its largest plant in the world, is in Greer, S.C., where it employs over 8,000 workers.) 7. Boeing: “The aircraft maker’s stock price cratered (in the fall and then later Exports subject to retaliatory tariffs going through Port Houston were in the winter) because of worries that down 47 percent in October 2018, while those not subject to retaliation tariffs will cause China to shift pur- were up 34 percent.

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WINTER 2019 SB&D 53 nothing is going to happen to us farmers, but since this came out and tariffs took effect we’ve seen nothing but a dive in the markets.’ “ (NOTE: A Wall Street Journal story published in February included in part, “A wave of bankruptcies is sweeping the U.S. Farm Belt as trade disputes add pain to the low commodi- ty prices that have been grinding down American farmers for years.”) 17. Lucerne International: “The Mich- igan auto supply producer says tariffs threaten the life of the company, the livelihood of its employees, and an in- tricate auto supply chain that creates hundreds of thousands of U.S. jobs.” 18. Moog: “The musical instrument maker may cut jobs or move operations out of the country because tariffs will Volvo is raising prices to offset the costs of the trade war. The Sweden- make it too expensive to do business in based, Chinese-owned new Volvo plant that currently assembles the S60 the U.S.” sedan near Charleston, S.C., will not export its cars to China as a result of the tariffs. The $1.1 billion plant was built to export half its cars to China. 19. Anthony Rinald: “ ‘The margin of profit is low, real low,’ the Pennsylvania farmer says. ‘It’s borderline if we’re go- chases to Airbus.” (Note: Boeing oper- manufacturer cut its profit forecast ing to make it or not.’ ” ates two final assembly aircraft facil- ranges by $500 million, citing tariffs on 20. Toyota: “The car maker, which faces ities in the U.S. in Washington and its aluminum it imports from Canada.” nearly $100 million in tariff-related cost 787 Dreamliner plant that houses over 12. Little Bay Lobster Co.: “The New increases per year, may stop importing 10,000 employees in North Charleston, Hampshire company had a big market some vehicles into the U.S. because of S.C.) in China that has dried up because of proposed U.S. tariffs.” 8. Harley-Davidson: “The motorcycle retaliatory tariffs. It doesn’t know how 21. Volvo: “The car maker is raising manufacturer cut its profit margin fore- long it can pay its 75 employees, who prices to offset the costs of the trade cast for the year due to tariffs, which are aren’t working.” war.” (NOTE: Swedish-based, Chi- forcing it to move some production over- 13. Hyundai: “Tariffs will push up pro- nese-owned Volvo’s new plant that seas.” (Harley closed its Kansas City plant duction costs at the car maker’s Ala- currently assembles the S60 sedan near in 2018 and the property is up for sale.) bama plant by 10 percent a year.” Charleston, S.C., will not export its cars to China as a result of the tariffs. The 9. Infinity 8: “The California exporter’s 14. Kia: “Tariffs will harm the car mak- $1.1 billion plant was built to export shipments of cherries to China fell from er’s U.S. operations (its only U.S. plant is half its cars to China.) 10,000 cartons in 2017 to 240 in 2018 in West Point, Ga.) and jeopardize plans because of retaliatory tariffs. In 2017, it for additional U.S. investments.” In reading the responses from the own- shipped 76,410 cartons of Valencia or- ers or spokespersons for the companies 15. Caterpillar: “The tractor company anges to Shanghai. In 2018 it shipped cited, you can see a theme. No. 1: they faces $200 million in tariff-related costs 3,240. In 2017 it shipped 44,036 cartons are all struggling as a result of high- in the second half of 2018, forcing it to of plums to Shanghai. In 2018 it shipped er materials costs. No. 2: many of the raise prices.” 170.” companies are being shut out of China as a result of the retaliatory tariffs. No. 10. General Electric: “The U.S. con- 16. Ryan Mickelson: “ ‘The farm economy is not good right now at all,’ the 3: many will ditch domestic suppliers glomerate, which faces $400 million a Iowa farmer says, ‘and if something for foreign ones, whose products are year in tariff-induced costs, is consid- doesn’t change, there is going to be a lot still less expensive even though they are ering adjusting its supply chain to miti- of farmers going bankrupt. Something taxed. No. 4: some expect to relocate gate the effects.” has to change, and something’s got to their plants to other countries as a re- 11. Alcoa: “The aluminum-product change fast. Trump promised and said sult of the tariffs. No. 5: just about every 54 SB&D WINTER 2019 MOVIN’ ON THE TENN-TOM... IT’S THE ONLY WAY TO GO.

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Tennessee-Tombigbee Waterway Development Authority www.tenntom.org [email protected] 662.328.3286 nounced $750 in million investments in plants in Alabama, Tennessee, Missouri and other states in mid-February. He also said he could cancel those investments if Trump put tariffs on foreign cars and parts. Toyota and Mazda are also building a 4,000-employee plant in Huntsville, Ala. If Trump places tariffs on foreign automobiles and car parts, I believe the odds that Toyota and Mazda will finish the plant are 50-50. Few understand the depth of the auto industry in the South and in the U.S. It is by far the largest industry in the South (go to SouthernAutoCorridor.com) and has been for more than 25 years. In those 25 years, the Southern Auto Corridor has captured more than 85 percent of all new assembly plants announced in the U.S. CEO of Toyota North America Jim Lentz, who is now operating out of Toyota’s new North American headquarters in Plano, Texas (shown here), The country that has captured the rest of announced $750 million in investments for plants in Alabama, Tennessee, the new North American auto assembly Missouri and other states in mid-February. He also said he could cancel plants — and we are talking about a sig- those investments if Trump put tariffs on foreign cars and parts. nificant number of assembly plants— has one thing the U.S. doesn’t have. Mexico company that can survive these tariffs is and easy to win.” has free trade agreements with 45 coun- passing the increased costs to you, the tries. Our FTAs are reduced in number. The 21 examples we published in this consumer. No. 6: many of these busi- story of the 202 examples published by I will repeat what I always say about tar- nesses are having to reinvent their sup- the Cato Institute show one thing: the iffs, “Less is sold, and what is sold costs ply chains (many of which have been in vast majority of companies are losing, more.” In other words, nobody wins in a place for decades) not only to stay prof- not “winning,” in this trade war, and trade war. We all lose. We all sell less and itable, but to survive. And lastly, because what we sell costs our customers more. of U.S. tariffs on Chinese goods, many they come from all sectors. And don’t There are no winners. And the data is U.S. companies who make products for forget, Cato’s story was written late last telling us more each day that the U.S. and U.S. consumption in China are consid- year, so those companies are in worse China, in self-inflicted fashion, are tak- ering moving their plants to Cambodia shape now than they were then simply ing each other’s economies down. All the and other Asian countries just to bypass because they have had about five more while, the China versus U.S. trade war is Trump’s tariffs on China. months of exposure to the tariffs. slowing the entire global economy. These tariffs, both from the U.S., Chi- An escalation of additional tariffs, over So, what are the three factors holding na, Europe, Canada and elsewhere, are and beyond what is in place now, will back a good economy? (1) Increase le- robbing the former free trade world and rock the U.S. economy, and most like- gal immigration to help fill the seem- its economic base. The examples from ly throw it into recession. If President ingly endless 7.5 million jobs that are the Cato Institute report are from U.S. Trump, as he has threatened to do, im- available each year. (2) End the tariffs companies or foreign affiliates. What do poses tariffs on cars and car parts that to bring inflows of FDI to levels seen in you think Chinese companies are going are imported from Asia and Europe to 2015 and 2016. (3) End these destruc- through? It’s probably worse. the U.S., it won’t be pretty. tive tariffs (both U.S. tariffs and retalia- Conclusion Jim Lentz, CEO of Toyota North Amer- tory tariffs) and go back to the free trade President Trump (again, not Congress) ica, was quoted in a story published by system, ading more countries to our imposed steel and aluminum tariffs on many media properties in mid-Febru- original FTAs to get our small, medium March 1, 2018. Trump announced his ary, saying, “I think it makes it difficult. . . and large companies back on their feet. intention to impose a 25 percent tariff because it’s going to impact the overall See, without politics, the problems we on steel and a 10 percent tariff on alu- industry.” Lentz, who is now operating have with our economy are easy fixes. minum imports. In a tweet the next day, out of Toyota’s brand new North Amer- But factor in politics and these are three Trump asserted, “Trade wars are good, ican headquarters in Plano, Texas, an- not-so-easy pieces. - 56 SB&D WINTER 2019 here are many destinations in the South for foreign direct investment (FDI). Profiled here Tare the top small and medium-sized markets for FDIT in the 15-state Southern region. These markets were chosen based on the number of projects they have captured from foreign companies over the last 25 years.

ALABAMA /QPVIQOGT[#NC In 2002, South Korea-based Hyundai Motor Company selected Montgomery, Ala., as the location of its first North American production facility. Hyundai Motor Manufactur- FDI ing Alabama (HMMA) has invested more than $2.2 billion in its Montgomery facility. Montgomery’s International Fam- ily Support Program has assisted hundreds of families in a smooth transition to the city. Montgomery’s industrial base Clusters includes more than 60 companies with headquarters in Brazil, Small and Medium-Sized Cities China, France, Germany, Ireland, Japan, Saudi Arabia, Singa- in the South Attracting pore, Slovakia, South Korea, Spain, Taiwan and the U.K. Foreign Direct Investment in a Big Way Cullman, Ala. Cullman is home to seven international manufacturing companies representing Germany, Japan, Australia and Canada, accounting for 25 percent of manufacturing employment. SB&D’s recognition of Cullman as a hub for foreign direct investment (FDI) acknowledges the tremendous growth and success of the international companies there. REHAU located in Cullman from Germany in 1995, and has grown to become Cullman’s largest employer. Topre America, Alabama Cullman Yutaka Technologies, and Cullman Casting are Japa- nese companies that employ over 1,100. Canadian companies Concours Mold Alabama and J.E. Lortie came to Cullman to provide injection mold maintenance and produce industrial safety products. Australian company Reliance Worldwide Corp. produces valves and plumbing accessories including the innovative SharkBite Pex system. These companies provide a strong foundation for Cullman’s large manufacturing sector. Cullman’s pro-business leadership and dedication to ensuring Montgomery, Ala., shown above, is home to companies continue to succeed long after they locate in the more than 60 companies with headquarters community gives foreign companies the confidence to bring outside the U.S.

WINTER 2019 SB&D 57 business to Cullman. “The community is so open toward and supportive of industry. For a company originally from over- seas, I think that means something. We feel welcome here, and I have never experienced as much support as I have in Cull- man, Ala.,” said Albert von Pelser Berensberg, Plant Manager of REHAU Automotive. Other small and medium-size FDI clusters in Alabama include Tuscaloosa County, Opelika, Auburn, Walker County, Talla- dega County, Limestone County, Mobile, Chambers County, Huntsville and Morgan County. ARKANSAS /KUUKUUKRRK%QWPV[#TM In addition to being one of the largest steel producing counties in the United States, Mississippi County boasts an im- Cullman, Ala., is home to seven pressive amount of foreign direct investment. Nucor-Yamato Steel, DENSO, Kagome Foods, Atlas Tube, IPSCO, Tenaris international manufacturing companies and SMS are just some of the companies that have found representing Germany, Japan, Australia, Mississippi County a welcoming place to invest in the U.S. and Canada, accounting for 25 percent of manufacturing employment. Backed by one of the finest workforce training centers in the American South, Mississippi County Economic Develop- ment has proven itself a solid partner that understands business to foreign companies looking for a place to do business. Companies from Canada, Europe, Russia, South America,

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58 SB&D WINTER 2019 Japan and China have all found Missis- GEORGIA FDI has come recently with the open- sippi County a home away from home. ing of the Griffin-Spalding Develop- )TKHƂP5RCNFKPI%QWPV[)C ment Authority’s (GSDA) The Lakes at Other small and medium-size FDI clus- Griffin-Spalding County, Ga., has at- Green Valley — the only “eco” Park in ters in Arkansas include West Memphis, tracted FDI from international part- Georgia. Springdale, Paragould, Russellville, Jonesboro, El Dorado, Bentonville, Fay- ners from France, England, Italy, Ja- The 570-acre mixed use development etteville, Fort Smith and Rogers. pan, Germany and New Zealand, and opened in 2014 and added Otsuka is proud to have them operating within Chemical, Toppan USA, and then FLORIDA the community. The largest influx of Marukan Vinegar. Rinnai followed in 2CUEQ%QWPV[(NC Pasco County is located in North Tam- pa Bay, and is growing at a rapid pace, with many foreign-owned companies. Pasco County enjoys foreign direct investment from Switzerland, Germany, France and Japan. Swiss-owned METTLER TOLEDO recently invested over $30 million and built a 270,000-square-foot advanced manufacturing facility. The Pasco EDC serves as the primary contact for economic development in Pasco County and is a member of Global Tampa Bay, a three-county regional partnership with neighboring Hillsborough and Pinellas Counties to promote international trade and investment. Pasco EDC also offers a SMARTLandings program designed to help international ventures quickly establish a presence and develop knowledge domains and business relationships within Tampa Bay, Fla. 8QNWUKC%QWPV[(NC Global investment in the Greater Dayto- na Region of Florida has skyrocketed in recent years. Leading companies and site selectors have selected Volusia County, resulting in substantial capital investment and new job creation. Recent investments by these and other companies are capturing attention: B. Braun Medi- cal (Germany); Tech Fit Robotic Surgery (Venezuela); Sea Max Light Sport Air- craft (Brazil) and Kingspan Industrial Building Products (Ireland) Other small and medium-size FDI clusters in Florida include Winter Haven, Kissimmee, Vero Beach, Pensacola, Port St. Lucie, North Port, Okaloosa County, Bay County, St. Johns County, Sarasota and Santa Rosa County.

WINTER 2019 SB&D 59 2017, and opened in the interim in an existing facility. They publicly owned Interstate Centre has approximately 650 became, in April 2018, the first major tankless water heater acres remaining for development and is located in a Military company to manufacture in North America. Another com- Zone, and privately owned Belfast Commerce Park has ap- pany has purchased a site but hasn’t been announced yet. proximately 1,000 acres remaining and boasts a CSX Select With these developments, all of the investors in The Lakes at Site. Both parks have interstate frontage, are Georgia Ready Green Valley are Japanese. for Accelerated Development (GRAD) Certified and have available infrastructure. “Building relationships with our Japanese companies is very important to us. We want to be lifelong partners as they con- *GPT[%QWPV[)C tinue to grow in our community. With that said, we continue Just minutes from Atlanta and the Hartsfield-Jackson At- to work to keep our other international partners growing as lanta International Airport (the world’s busiest and most well,” said GSDA Executive Director David M. Luckie. “Of efficient airport), Henry County is a destination for glob- course, this would not be possible without the support and al commerce. Henry connects businesses to the world with confidence that existing investors have placed in us over the easy access to interstate highways, national train systems and years along with the great assistance from the Georgia De- global ports. Eighty percent of U.S. consumers are located partment of Economic Development.” within two flight hours or two days by highway. $T[CP%QWPV[)C The presence of companies from Austria, France, Switzer- Bryan County, Ga., has had considerable success attracting land, South Korea, Italy, Japan and Sweden demonstrate that FDI. Companies from Brazil, Israel, Germany and Can- Henry is a prime global location for business. Henry County ada have located in the community, and nearly 50 percent is proud to have companies like Luxottica, Alpla, Toppan In- teramerica, and more innovating and growing there. of people employed at local industries work at one of these companies. %CTVGTUXKNNG$CTVQY%QWPV[)C Located north of Atlanta on Interstate 75, Cartersville-Bar- Bryan County has plenty to offer foreign companies; the tow County is Georgia’s 2017 International Community and home to 35 international firms including Toyo Tire, Anheus- er-Busch/InBev, T.I. Automotive, Gerdau, Aquafil, voestal- sissippi Coun pine, Yanmar, Surya, Beauflor, and Constellium among Mis ty others. With access to important markets, extensive infrastructure, a low cost of doing business, an educated and loyal workforce, rich natural resources, prepared industrial sites and collaborative community leaders, Cartersville-Bartow has proven successful in capturing FDI. “The level of coop- eration from the State of Georgia and Bartow County over the years continues to exceed our expectations,” said Toyo Tire President Don Bunn in a recent press release. (QTU[VJ%QWPV[)C For a mid-sized community, Forsyth County has a tremendous amount of foreign direct investment with 75-plus inter- Arkansas national companies, including 20-plus headquarters. Ger- many is the most prominent country represented, but the county has recently attracted several companies from Chi- If you want to be a success in the steel business, na. Success is driven by their strategic proximity to Harts- we’ll get you there. field-Jackson International Airport, education system and executive-level quality of life. Forsyth has the No. 1 school system in Georgia with highest ACT and SAT scores, and it has the most educated workforce. As the most affluent county in the state, Forsyth has abundant executive housing, rec- Mississippi County reation on Lake Lanier and an award-winning park system. Economic Development 870-532-6084 Other small and medium-size FDI clusters in Georgia include Clif Chitwood West Point, LaGrange, Hall County, Macon-Bibb County, [email protected] Meriwether County, Carroll County, Dublin-Laurens County, www.misscoeda.com Liberty County, Savannah, Coweta County, Fayette County, Jackson County, Cherokee County and Houston County. 60 SB&D WINTER 2019 KENTUCKY Lake Charles Chemical Complex has MISSISSIPPI seven manufacturing units situated on 'NK\CDGVJVQYP-[ approximately 400 acres. The company’s %QNWODWU5VCTMXKNNG Elizabethtown, Ky., has enjoyed long- West Point, Miss. primary products are used in the clean- term growth in foreign direct investment The Golden Triangle region of Missis- ing and personal care markets to man- from Belgium, England, France, Germa- sippi has attracted foreign direct invest- ufacture ingredients for soaps, deter- ny, India, Japan, Luxembourg, Mexico ment for decades thanks to an aggres- gents, shampoos, cosmetics and more. and The Netherlands. Elizabethtown’s sive economic development agenda and prime central location, low energy pric- Sasol also manufactures specialty chem- a business friendly community. These es, community attributes and more have icals used in mild abrasives, thickeners investments have resulted in billions in landed new projects like India-based and pharmaceuticals, as well as in the capital injected into Clay, Lowndes and packaging giant Flex Films (2010) and enhanced oil recovery markets. Sasol is Oktibbeha Counties and created more The Netherland’s Eurotrol (2016), which constructing a world-scale petrochem- than 1,000 jobs. produces quality control products for in ical complex near the Lake Charles Long-time resident companies like Val- vitro diagnostics. In addition, foreign in- Chemical Complex. The project will met (Finland), Eka Chemical (Sweden) vestors’ success in Elizabethtown has led roughly triple the company’s chemical and Nammo Talley (Norway) initiated to multiple expansions. AGC Automo- production capacity in the U.S. and en- the FDI presence in Lowndes County, tive (Japan), for example, has tripled its able it to build on its strong positions in Miss., and it has grown since. footprint since coming to Elizabethtown robust and growing chemical markets. in the late 1980s, and the latest expansion In more recent years, the Golden Tri- at automotive supplier Metalsa (Mexico) Other small and medium-size FDI clus- angle has attracted Airbus Helicopters will create 250 new jobs. ters in Louisiana include Lafayette, (France), Stark Aerospace (Israel) and St. Tammany Parish, St. James Parish, Yokohama Tire (Japan). In order to Other small and medium-size FDI clusters St. Charles Parish, Shreveport and Iber- market to both foreign and domestic in Kentucky include Nelson County, Bowl- ville Parish. investment, the region has invested in ing Green, Clark County, Danville-Boyle County, Georgetown-Scott County, Chris- tian County, Bullitt County, Shelby Coun- ty, Simpson County, Marion County, Mer- cer County, Owensboro, Murray, Somerset and Richmond. LOUISIANA 4KPPCK 5QWVJYGUV.QWKUKCPC Over the last five years, the Lake 5QNF Charles, La., metro has seen the highest THE LAKES AT job growth in the nation at 28.3 percent, GREEN VALLEY INDUSTRIAL PARK according to the Bureau of Labor Statis- tics. Lake Charles has created a net gain of 24,482 jobs in those five years. The What do our foreign partners from 28.3 percent gain in jobs is almost four )UDQFH(QJODQG,WDO\-DSDQ*HUPDQ\DQG1HZ=HDODQG times the national rate of 7.2 percent FDOO*ULIÀQ6SDOGLQJ&RXQW\*HRUJLD" over the past five years. Foreign-owned Home. companies helped propel Lake Charles to the No. 1 market in job growth in the Spalding County and The Lakes at Green Valley Industrial Park country. are proud to be recognized by Southern Business & Development 0DJD]LQH7KH/DNHVDW*UHHQ9DOOH\LVWKHÀUVW(FRPL[HGXVH The French industrial gas company Air park in Georgia. Liquide has large operations in Lake A combination of both an educated workforce and dedicated local Charles, as does Switzerland-based leadership have made the difference in attracting new economic Lonza Group. LyondellBasell, based in JURZWKWR*ULIÀQ6SDOGLQJ&RXQW\7KH*ULIÀQ6SDOGLQJ&RXQW\ The Netherlands, also has major opera- 'HYHORSPHQW$XWKRULW\ZRUNVMRLQWO\ZLWKWKH&LW\RI *ULIÀQDQG tions in Southwest Louisiana. But South Spalding County to attract capital investment and jobs to the area. Africa-based Sasol is certainly one of www.gsda.net (DVW6RORPRQ6WUHHW32%R[*ULIÀQ*$ the largest foreign manufacturers in )D[ the Southwest Louisiana region. Sasol’s WINTER 2019 SB&D 61 a massive amount of infrastructure, in- million workforce development facility to relocate its business and employees cluding a regional airport, three ports, called The Communiversity to house, there. “We’re competing, and winning, and four industrial parks containing and grow, East Mississippi Community in a global economy,” said Joe Max Hig- three TVA-certified megasites. To- College’s workforce and career technical gins Jr., CEO of the Golden Triangle gether with development partners, the programs. Development LINK. “The Golden Tri- Golden Triangle contains more than angle and its assets are highly attractive 7,000 shovel-ready acres of communi- Four universities within 90 miles of the to this type of investment because of the ty-owned property. Most recently, the region add to the quality of life and in- successes of our current industrial land- community, with assistance from state ternational offerings that the Golden scape.” To learn more about the Golden and federal partners, constructed a $42 Triangle brings to a company looking Triangle, visit www.gtrlink.org. 6KUJQOKPIQ%QWPV[/KUU Located at the intersection of the Ten- nessee River and the Tennessee-Tom- bigbee Waterway, Tishomingo County, We Miss., has worked hard to land foreign direct investment from Canada, Ger- speak the many, Brazil and Luxembourg. FDI has language been attracted by aggressive local leadership with a long-term successful re- of manufacturing. cruitment record, an experienced manufacturing workforce, transportation options and competitive incentives. Creating over 2,300 manufacturing jobs and $380 million in private investment over the past ten years, Tishomingo Owens Corning, County is an attractive and profitable LNS Turbo, Clariant, location for future FDI. Lanxess, Dhollandia NA, Repi, 6WRGNQ.GG%QWPV[/KUU Tosaf USA, Mann + Hummel Tupelo-Lee County has become a mag- and CTL Packaging USA are net for foreign direct investment in the just a few of the international South. As a hub for business, healthcare, ƂTOUYJKEJJCXGNQECVGF retail and manufacturing in North- VJGKTCFXCPEGF east Mississippi, the county leaders are OCPWHCEVWTKPI proud of the unprecedented FDI success operations the community has experienced. Over here. the past 25 years, 15 international companies have invested over $1.7 billion in capital, creating 4,792 jobs in the region. Toyota, Philips, Grammer, Hunt- er Douglas, and Martinrea are some of these great companies. Since locating .GVoUDGIKPC there, all have reinvested capital and/ EQPXGTUCVKQP or additional jobs in Tupelo-Lee Coun- %QOGUGGWU ty, further proving the growth potential when you are in and confidence in this region’s strong the Charlotte workforce and community support. 4GIKQP These international companies have not only positively impacted the economic climate of the region by bringing in a part of their culture to this For more information about locating your industry in community, multi-cultural programs Gaston County, N.C., contact Donny Hicks at 704-825-4046. have been implemented in the Tupelo/ www.gaston.org Lee County schools. Banks and hotels 62 SB&D WINTER 2019

Dhollandia North America plans an investment of approximately $30 million and the creation of 200 LÃ>ÃÌ ÕÌÞ] ° °/ iwÀÃVÃÌÀÕVÌ} a 272,000-square-foot advanced manufacturing operation in Bessemer City, which includes its North ƂiÀV>VÀ«À>ÌivwVi°*À`ÕVÌÃÌLi«À`ÕVi` include passenger lifts, cantilever lifts, slider lifts and column lifts for the automotive industry.

have foreign liaisons, and ethnic grocery stores and restau- Most of the FDI projects are from Europe, with a few from rants now exist. This community has openly embraced the Asia. Canada, Turkey, Israel, Germany, Belgium, Spain, Italy, diverse array of cultures that foreign-owned companies have Mexico, Australia, Switzerland and Japan are the home coun- brought to the region, and looks forward to continuing this tries of these firms. These operations involve plastic, chemical success of foreign direct investment in the future. and metalworking firms that are usually family-owned operations. Of the 20 firms, about half have engineering and head- Other small and medium-size FDI clusters in Mississippi in- quarters operations in addition to the advanced production clude Canton, DeSoto County, Union County, Grenada, Vicks- located at their Gaston County facility. These international burg, Itawamba County, Rankin County and Hancock County. firms prove that Gaston County successfully competes for NORTH CAROLINA new and expanding global businesses. 9KPUVQP5CNGO(QTU[VJ%QWPV[0% Gaston County’s proximity to the Charlotte Douglas Interna- Touting a community with a strong legacy in manufacturing tional Airport (CDIA) and Interstate 85 are two major fac- and financial services, Winston-Salem, N.C., has been a pre- tors for FDI. The majority of the county’s business parks and mier location for foreign direct investment over the past few industrial sites are within five miles of Interstate 85 and not decades. The fact that these foreign companies have been able more than a 30-minute drive to the CDIA. to find labor time and time again, and that the labor force per- #UJGXKNNG0% forms to the standard that these companies are accustomed A number of international companies have invested in the is a major selling point for the Winston-Salem and Forsyth Asheville metro area in recent years, helping to grow the area’s County area. population to nearly 500,000 people, and grow the metro ar- Factors such as the lowest corporate income tax in the coun- ea’s GDP to over $20 billion. Auto parts manufacturers Reich try (3 percent) and low utility rates contribute to Winston-Sa- (Germany) and Linamar (Canada) employ over 1,000 people lem’s favorable tax climate and low cost of doing business. in Buncombe County, while med tech company Enplas (Ja- Combine these factors with a highly skilled workforce and pan) and industrial HVAC manufacturer, Haakon Industries property costs well below similar cities. . . it is no wonder that (Canada), add additional diversity to the area’s growing FDI FDI is constantly considering this area for new investment. presence. The Asheville area’s growing skilled labor force and Winston-Salem and Forsyth County currently have over 98 unparalleled quality of life amenities are just a sampling of foreign-owned companies operating within the county and what attracted these thriving companies to the area. employing over 5,500 people. Companies such as Siemens, /QTTKUXKNNG0% Atlas Copco, BekaertDeslee, Polyvlies, TE Connectivity, AON There are over 700 foreign-owned firms operating in the Re- Hewitt, Deutsche Bank and others call Forsyth County home. search Triangle region of North Carolina. In Wake County Several other foreign companies are currently considering the (the largest county in the Triangle), there is one community area as their choice for new foreign direct investment. leading the way for foreign direct investment success. Mor- risville, named one of the most linguistically diverse commu- )CUVQP%QWPV[0% nities in North Carolina, is a short distance from RDU Inter- Gaston County has emerged as a location of choice for ad- national airport and home to major foreign-owned firms like vanced manufacturing facilities. Foreign direct investment Chinese-owned Lenovo, whose North American headquar- has accounted for 20 of the 41 most recent economic develop- ters have called Morrisville home for decades, Indian-owned ment projects of the Gaston County EDC. This includes exist- Conduent and Japanese-owned Fujifilm, whose recent bio- ing industry expansions and new locations. Over $370 million pharmaceutical expansion will add 100 new jobs and $90 has been invested, along with the creation of over 1,000 new million of investment into the community. jobs that have consistently paid more than the county’s average annual wage for that year. Other small and medium-size FDI clusters in North Caroli- 64 SB&D WINTER 2019 na include Statesville, Wilson, Durham, ture success,” said Clarendon County filiated companies in the central South Cabarrus County, Lincoln County, Ca- Development Board Executive Direc- Carolina county of about 290,000 peo- tawba County, Cleveland County, Ala- tor George Kosinski. ple, according to county economic de- mance County, Cary, Huntersville, Pitt velopment director Mike Eades. That’s County, Craven County, High Point and .GZKPIVQP%QWPV[5% about 25 percent of the county’s private Wilmington. Foreign direct investment has long sector workforce. “The commitment been a powerful contributor to the OKLAHOMA that enterprises from around the world economic success story that is Lex- have made makes a strong statement $CTVNGUXKNNG1MNC ington County, S.C. More than 7,000 about Lexington County as a place to do Switzerland-based ABB came to Bar- people are employed by 35 foreign-af- global business,” Eades said. tlesville in 1999 to manufacture gas CONTINUED chromatographs and mass spectrome- ters for the energy sector. The Bartles- ville Development Authority assisted with a new facility in the city-owned Chapin Business & industrial park and with two subse- quent expansions. In October of 2018, ABB announced a consolidation of an- Technology Park at Brighton alytical manufacturing to Bartlesville, and an additional 90 employees. “Bar- tlesville, Okla., is an excellent location for ABB,” said ABB spokesperson Me- lissa London. “As a mid-size city within driving distance of larger metropolitan areas, Bartlesville is attractive to both individuals and families, which helps us recruit and retain quality talent.” Other small and medium-size FDI clusters in Oklahoma include Pryor, Nor- man, Miami, Muskogee, Stillwater, Ar- dmore, Shawnee, Lawton-Fort Sill and Ponca City. SOUTH CAROLINA %NCTGPFQP%QWPV[5% An innovative hub with an urban edge, this multi-use Park which Clarendon County, which is strategi- JIEXYVIWTVIQMIVSJ½GIWTEGIEPSRK[MXLPY\YVMSYWLSYWMRKERH½VWX cally located along Interstate 95, enjoys unparalleled access to this major north/ class shopping, allows entrepreneurs and residents the ability to work south transportation artery and the port and thrive in a spirit of collaboration. of Charleston. It’s no wonder many foreign-owned companies are having success there. With a 50,000-square-foot spec building and over 2,000 acres of certified industrial property, Clarendon ADVANCED FINANCIAL DATA INFORMATION MANUFACTURING County is sure to be the right fit. Com- panies such as Amgo Hydraulics (Chi- na), Swift Green Filters (Canada) and Alucoil (Spain) have collectively been operational for over 10 years. These companies have one thing in common: they have found a skilled workforce, a pro-business environment and the sense of feeling at home in Clarendon County. 0I\MRKXSR'SYRX]97%GSQ`803-785-6818 “We welcome FDI with open arms and look forward to many more years of fu- WINTER 2019 SB&D 65 The South Carolina Port’s Authority’s newest addition, Inland Port Dillon (IPD), is up and running and it offers all the same services that a typical port offers. IPD helps to better connect NESA domestically and internationally.

Those 35 firms include automotive supply, outdoor power 0GYDGTT[%QWPV[5% products distribution, fiber optics, financial services and food In 1996, Newberry County landed the Korean wire manufac- manufacturing among others. One of those firms is Michelin turer Kiswire, which supplies the American tire market, and Tire, which first invested in Lexington County in 1980 and Trucast, an auto supplier based out of the United Kingdom. has expanded seven times, now employing more than 2,500 Just a few years later in 2001, the world’s second largest heavy people. Diversity is exemplified by Flex, the Singapore-based equipment manufacturer selected Newberry County for a fa- firm whose contract manufacturing facility employs 350 to cility to produce earth moving equipment. 400 people providing “sketch to scale” design, engineering, manufacturing and supply chain logistics across multiple in- In 2016, the community landed its first BMW supplier, a small German family-owned company named MM Technics. And dustries for clients around the world. just a year later, it ended up as the last community standing “Lexington County has all of the key elements to help our orga- after a nationwide search by Samsung, which announced its nization gain a competitive advantage — from an excellent la- first North American appliance facility in a $350 million, 950- bor force to a superior transportation network to an exceptional job deal. quality of life,” says Flex General Manager Marty Wilson. “This “We speak the international language, the language of busi- helps set us apart in this ever-changing global marketplace.” ness,” said Rick Farmer, Director of Newberry County Eco- .CWTGPU%QWPV[5% nomic Development. “We are delighted to have such a large Laurens County is well-positioned for economic development foreign footprint.” in the Southeast. With over 58 percent of the U.S. popula- 0QTVJGCUVGTP5QWVJ%CTQNKPC tion, 42 automotive OEMs and 53 aerospace OEMs within a The State of South Carolina and the NESA region are not day’s drive, Upstate South Carolina is highly sought after in strangers to FDI. More than 1,200 international firms manage the Southeast. Laurens County houses prominent manufac- operations in the state, and that number continues to grow. turing industries and distribution centers representing eight Foreign-affiliated companies employ more than 131,900 countries: Germany, United Kingdom, Japan, Italy, Canada, South Carolinians, or 7 percent of the state’s private industry Turkey, Denmark and China. Over the last 25 years, Laurens employment. The NESA region is home to companies head- County has announced over $1.4 billion in foreign direct in- quartered all around the world including Schaeffler Group, vestment that resulted in 4,200-plus new jobs, through 57 dif- Honda, Nan Ya Plastics, Wellman Plastics Recycling, High- ferent projects. Laurens County also had the second highest land Industries, Takata, Metglas, Beneteau, DSM, ARAUCO growth rate in the nation for real GDP growth for all indus- and many, many more. tries between 2012 and 2015 — over 148 percent. “We are grateful and honored to have many international &QTEJGUVGT%QWPV[5% companies located here in our region,” NESA Executive Di- Saying that foreign direct investments significantly impact rector Jeff McKay said. “They are excellent corporate partners Dorchester County economic development would be an un- who provide citizens of our region with excellent jobs, bene- derstatement. From new capital investments to expansions, fits and opportunities for the future.” South Carolina consistently earns the highest percentage of FDI per capita of any state in the nation. Fast Facts: 22 The NESA region is in the perfect position logistically to assist Dorchester County manufacturers are foreign-owned, repre- international companies in getting their products in and out senting approximately 30 percent of the county’s manufactur- with the newest addition, Inland Port Dillon, which also gives ers; foreign-owned companies employ 53 percent of Dorches- the region direct CSX Class 1 rail access to the deepwater Port ter County’s manufacturing workforce; 60 percent of new of Charleston. Additionally, both are located at the intersection of two major interstates and have the second fastest growing prospect visits are by foreign-owned companies. Dorchester MSA in the country — Myrtle Beach — located in the region. County leaders attribute its FDI success to the state’s pro-business environment, active global recruitment strategy, which Other small and medium-size FDI clusters in South Caroli- includes extensive international travel for lead generation, and na include Berkeley County, Myrtle Beach, Anderson County, classic Southern hospitality. Spartanburg County, York County, Florence County, Kershaw 66 SB&D WINTER 2019 County, Richland County, Orangeburg County, Greenwood, TEXAS Richburg, Lancaster County, Oconee County, Cherokee County, Pickens County, Chester County and Fairfield County. %QTRWU%JTKUVK6GZCU Since 2010, Corpus Christi and the surrounding Coastal TENNESSEE Bend region has announced $50 billion in new investment. -PQZXKNNG1CM4KFIG6GPP With access to a deepwater port, a vast network of rail and More than 100 internationally-owned companies, ranging highway infrastructure, and a large pool of skilled workers, from Japanese automotive manufacturers to European health- the region has long been an oil and gas refining hub, with care firms, operate across an eight-county region in East Ten- longtime Port of Corpus Christi tenants CITGO Refining nessee known as Innovation Valley. and Chemicals, Flint Hills Resources, and Valero Energy Corporation as anchor tenants for decades. Increasing foreign direct investment is spurred by the region’s unparalleled research and technology institutions, pro-busi- With the Eagle Ford and Permian Shale boom supplying ness policy, infrastructure and low cost of living. feedstock via pipeline to the area, the Corpus Christi region has been ground zero for unprecedented growth. Most nota- “Through the Innovation Valley partnership we are able to ble in the FDI arena: Chinese pipe mill TPCO America, Aus- offer prospective companies access to a larger workforce pipe- trian iron briquette manufacturing facility voestalpine Tex- line, research and technology assets such as the University as, a consortium of foreign investors’ plastics facility Corpus of Tennessee and Oak Ridge National Laboratory, as well as Christi Polymers, and ExxonMobil and SABIC’s joint ven- support from regional resources like the Tennessee Valley Au- ture polymers plant are all in construction in the area. thority,” said Rhonda Rice Clayton, executive vice president of “Corpus Christi, with its beautiful waterfront lifestyle, is a the Knoxville Chamber and managing director of Innovation great place to live, and now these investments are offering Valley. “These assets, located across the region, are what dif- new and vibrant career opportunities to our community. We ferentiate us in the U.S. and abroad.” are truly experiencing a transformative manufacturing re- 0QTVJGCUV6GPPGUUGG German manufacturers have found success in Northeast Tennessee via a business-incubator-sponsored Internation- al Soft Landing Program. The program is a partnership between the East Tennessee State University (ETSU) Inno- vation Lab and the Northeast Tennessee Valley Regional In- dustrial Development Association (NETVRIDA). Located in Put Success in Johnson City, Tenn., the Soft Landing Program provides re- Your Corner sources that ensure companies a “soft landing” into the U.S. business world. The program is designed for small/medium Strategically located in the northeast sized firms who can benefit from a trial period evaluating corner of South Carolina, the NESA options for the U.S. market. Region puts your business in the ideal position to succeed. With Specific assistance is provided in the areas of domestic product competitively priced land and research, legal services, market entry and human resources, building options, advantageous infrastructure, unrivaled proximity among many others. In addition, NETVRIDA can offer a free to both inland and deep-water rent period to reduce a company’s initial operating expense. ports, and a cost-effective workforce, your business has The most recent success story from the Soft Landing Pro- endless possibility on its side. gram is Hebmüller Aerospace, headquartered in Kaarst, Germany. “Working with the Innovation Lab made our start in the USA very easy with help provided in every step setting up the office. We have benefited from advice from other Ger- man companies located in the area and Northeast Tennessee offers outstanding affordability as a business location,” said Axel Hebmüller, CEO. Other small and medium-size FDI clusters in Tennessee in- Explore the resources that await in the gem of the Southeast — visit NESAsc.org or call 843-661-4669. clude Jackson, Williamson County, Rutherford County, Wilson County, Maury County, Washington County, Chattanooga, Some of the companies that proudly call the NESA Region home Bradley County, Blount County, Dyersburg, Dickson County, Morristown, Sullivan County, Union County, Montgomery County, Anderson County, McMinn County and Rhea County. WINTER 2019 SB&D 67 naissance in the region,” said Iain Va- sey, President and CEO of the Corpus Christi Regional Economic Develop- ment Corporation. +TXKPI.CU%QNKPCU6GZCU Irving-Las Colinas is the third-leading city in Texas for foreign direct investment. A business-friendly city government, DFW International Air- port’s service to 62 international locations and being the ninth most diverse U.S. zip code drive FDI by over 150 foreign-owned companies located in this North Texas city. Named the Best Place for Jobs in 2017 and 2018 by Forbes as part of the Dallas-Pla- Hebmüller Aerospace is one of Northeast Tennessee’s most recent no-Irving MSA, Irving-Las Colinas’ success stories. The Kaarst, Germany Business Association named the FDI is representative of Belgium, managing directors of the Hebmüller Group, Axel Hebmüller, Guido Canada, Finland, France, Germany, Otterbein and Mario Theissen, as Businessmen of the Year 2018. Korea, Mexico, Switzerland, the UK and, with the largest number of companies (42), Japan. 4KEJCTFUQP6GZCU Home to 66 foreign-owned companies, it’s understandable that Richardson was named the “International Business A Soft Landing Capital of North Texas” by the Texas Legislature. Richardson is a three-time winner of “Top 10 in Small Cities for fDi Strategy,” and its Soft Landing pro- for gram was named “best of the best” by fDi Magazine for its FDI successes. Last International year, Japan-based J-Goodtech SME or- Business ganization chose Richardson to launch its new, nationwide Bizmatch program to match U.S. companies to Japanese small and medium-sized businesses. Additionally, Richardson works with The East Tennessee State University Innovation Lab is a high-tech business incubator that assists aspiring entrepreneurs in developing emerging technologies UT Dallas’ Center for Global Business from concept through commercialization. to support international small and me- The Innovation Lab and Northeast Tennessee Valley Regional Industrial dium enterprises establish offices in Association (NETVRIDA) partner with organizations that share a commitment to Richardson. the economic development of Northeast Tennessee and the successful integration of foreign companies into the economy. These partners provide resources that Other small and medium-size ensure foreign companies a “soft landing” into the U.S. business world. FDI clusters in Texas include New Interested? Contact Dr. Audrey Depelteau at (423) 439-8535. Braunfels, Longview, Seguin, San etsu.edu/ilab Marcos, Bryan, Sugar Land, Mission, McAllen, Paris, Allen, Plano, Grand Prairie, Denton, Midlothian, The Woodlands, Katy, Baytown, Conroe, Victoria and Temple.

CONTINUED

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Jackson, Mississippi | 601.713.0045 Punta Gorda, Florida | 941.347.7412 VIRGINIA 2WNCUMK%QWPV[8C Pulaski County is located at the center of the Eastern Sea- /CTVKPUXKNNG*GPT[%QWPV[8C board and only hours from major U.S. markets, and is po- Over the last 25 years, companies from Canada, Germany, sitioned strategically for both domestic and international Israel, Sweden, the United Kingdom and, most recently, Po- business operations. The county is already home to nine inland have made the decision to invest in Martinsville-Henry ternational companies that span four continents and boast County, Va. With a combined capital investment approaching direct employment of over 4,750 and growing. $200 million and the addition of almost 1,000 new jobs, the Martinsville-Henry County Economic Development Corpo- The advanced manufacturing cluster of diverse foreign in- ration has been extremely active in recruitment of foreign divestment makes Pulaski County “Southwestern Virginia’s rect investment to southern Virginia. Center for International Business.” The county distinctly hosts an International Port of Entry (POE #1412) and a For- The latest FDI announcement in Martinsville-Henry County eign Trade Zone (FTZ #238) housed within the New River was Press Glass, a Polish flat glass manufacturer that will in- Valley Regional Airport (Virginia’s seventh longest runway). vest $43.6 million to establish a 280,000-square-foot manufacturing operation and create 212 new jobs. Press Glass’s facility The county’s professional and experienced staff understands is under construction and represents the first to locate in the the acute challenges and boundless opportunities that come Commonwealth Crossing Business Centre, the county’s new- along with foreign direct investment, and have created a est 700-plus-acre advanced manufacturing industrial park. unique support structure that helps international compa- With its low cost of living, readily available building and site nies address such comprehensive issues as tax policies, im- options, and world-class training facilities, Martinsville-Hen- migration, local/state/federal incentives and programs and ry County offers plenty of amenities and opportunities for a import/export polices. Pulaski County is a welcoming com- diverse range of industries. Foreign companies are not only munity with a tradition of proudly celebrating diversity. In choosing to call Martinsville-Henry County home, but con- addition, the Economic Development Office enjoys access to tinue to invest and expand in the community, demonstrating a sundry community of expats that come from all over the the strength of market for FDI in Southern Virginia. world. They are ready and waiting to support and help new foreign nationals come to belong and call Pulaski County, Va., their home. CORPUS CHRISTI, TEXAS 4QCPQMG8C Foreign direct investment from 19 countries and 32 companies finds the Roanoke Region of Virginia the best place READY TO JOIN THE for business. From Australia to Switzerland, these businesses benefit from the right assets for international investment in the urban center of Western Virginia, where there’s a grow- COAST WITH THE ing international flavor in the transportation sector. “It was Roanoke’s excellent market access, higher education assets, low costs of doing business, and productive workforce that MOST? convinced us to establish our first North American production facility in this community,” said Pasquale Forte, presi- Strategically located, economically solid and surrounded dent and CEO of Italy’s Eldor Corporation. by Gulf waters, South Texas brings together more $QVGVQWTV%QWPV[8C opportunity than ever for businesses across the globe. Australia’s Pratt Industries, the world’s largest privately held, 100 percent recycled paper and packaging company, will make Botetourt County, Va., its newest home with a $20 See all that South Texas can offer your business million investment. Pratt adds to 11 international compa- at ccredc.com nies and an already strong packaging sector operating in this picturesque county in the Roanoke metro area. Strategically located along interstate I-81, Botetourt offers commercial air service, 350,000-plus skilled workers and strong infrastructure. Jeff Bieber of Pratt said, “This is a great area with pro-growth attitudes, a strong workforce and numerous opportunities.” .QWFQWP%QWPV[8C Loudoun County, one of America’s fastest growing com- 70 SB&D WINTER 2019 Over the last 25 years, companies from Canada, Germany, Israel, Sweden, the United Kingdom and, most recently, Poland have made the decision to invest in Martinsville- Henry County, Va. Shown here is Poland-based Press Glass. munities, is a key player in the global Mianta! economy. Located 30 minutes outside When we welcome of Washington D.C., the home of Dull- a foreign company es International Airport has attracted more than $1 billion in foreign invest- to Pulaski County, ment in the past decade. Tech compa- we always say, nies from Asia to Europe benefit from the largest concentration of data centers in the world and a highly skilled workforce. German pharmaceutical company Biogrund picked Loudoun “Cheers! ” for “its great support, lifestyle and perfect infrastructure.” Rehau executive Christian Fabian called Loudoun “an ideal location for our Americas head- in their native tongue. quarters and employees.” We look forward %WNRGRGT8C to toasting with you! Culpeper is a hub of commerce and culture nestled between Charlottesville and Washington. It is a relaxed and el- egant location for foreign direct investment. Culpeper is home to Continental Corporation, headquartered in Germa- ny; Euro Composites, headquartered in Luxembourg; SWIFT (Society for Worldwide Interbank Financial Tele- communication), headquartered in Belgium; and TE Connectivity (TEC), headquartered in Switzerland. These companies have prospered along with the community over the past several decades. SWIFT has been there over 10 years, Euro Composites over Pulaski County, VA 25 years, Continental over 40 years Economic Development and TEC recently purchased Rochester (540) 440-0200 Wire that has been in Culpeper over 70 pulaskicounty.org years. Other small and medium-size FDI clusters in Virginia include Danville, New- port News, Wythe County, Montgomery County and Chesapeake. - TOP DEALS The American South’s 10 largest new or expanded manufacturing and selected non-manufacturingnon-manuufaf cturrini g job announcements

#00170%'/'065/#&'+06*'9+06'437#46'4#00170%'/'065/#&'+06*'9+06'437#46'4 Developmentl Jobsb Investment* N/E/R** Location Description 1. SmileDirectClub 2,000 $217 E Nashville, Tenn. Orthodontic services 2. Progressive 1,500 N/A E Tampa, Fla. Insurance 3. WellCare 1,000 N/A E Tampa, Fla. Insurance 4. Progressive 1,000 N/A E Austin, Texas Insurance 5. FedEx 700 $48 E Memphis, Tenn. Logistics 6. JNJ Express 610 $83 R Memphis, Tenn. Headquarters 7. Pentagon Federal 600 $48 N San Antonio, Texas Financial services 8. The Results Co. 600 $2 E Chesterfield, Co., Va. Call center 9. GenCure 600 N/A N San Antonio, Texas Biotech 10. Cuisine Solutions 500 $120 N San Antonio, Texas Food BioIQ 500 $5 R Cobb County, Ga. Healthcare IT Accenture 500 $5 E San Antonio, Texas Financial services Arrive Logistics 500 $4 E Chattanooga, Tenn. Logistics Cognizant 500 N/A E Plano, Texas IT services

*Investment in millions **N=New, E=Expansion, R=Relocation Source: RandleReport.com

72 SB&D WINTER 2019

HINDS COMMUNITY COLLEGE – RAYMOND

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