The have-not states of the south finally catching up?


Bartram

Brand HBCUbian
In the last 10 years Alabama and now Mississippi have come out of nowhere to establish themselves as players in the south's growing auto assembly industry which was once the domain of states that got their $hit together in the 70s (GA, TN, NC, KY, TX).

Plant Expansion Common in the South

Mississippi looks poised to land another big fish on the heels of Alabama's latest acquisition while Alabama is a finalist along with Michigan for a Hyundai research facility that would employ 300 design engineers. MS seems to really be getting after it these days. :eek2: GA still showing that it can pull as "the empire state of the south" with a recent truck manufacturer picking Savanah. I'm suprised South Carolina hasn't done more after it's initial shocking the world when it landed BMW.

Looks like the beat will go on according to this article though and the South looks to be right in the thick of things. Just a matter of which states will be the major players. I see Mississippi as fertile ground and Arkansas. The other states are beginning to fill up, but could land additional plants.

"Of 100 auto plants expected to be built worldwide in the next 15 years, 40 likely would be built in the United States, with 20 of those in the Southeast, Rumbarger said. DaimlerChrysler, Ford and Volkswagen Audi are reported to be looking for sites now."

Auto plants

State backs auto plans for region
7/18/2003 10:35:29 PM
Daily Journal

BY GARY PERILLOUX
Daily Journal

PONTOTOC - A crucial $250,000 piece of the planning puzzle for Mississippi's next huge automotive manufacturer fell into place Friday.

Bill Renick, chief of staff for Gov. Ronnie Musgrove, committed the $250,000 for estimating costs of a 1,000-acre industrial site at the junction of Pontotoc, Lee and Union counties.

"People that are in the know have told me that with this information, you will be in the Top 10 sites in the nation," said Randy Kelley, executive director of the Three Rivers Planning and Development District. Three Rivers played host to a Friday meeting of leaders from the three counties. "I believe in the next five years you will get a big project."

Recently, Toyota and Hyundai passed on the site because of questions about its topography and access. Though no current prospect is locked up, a planning study of requirements to grade and prepare a site is considered essential to landing an automaker.

The planning process - aided early on by the Tennessee Valley Authority, Cook Coggin Engineers and the counties' boards of supervisors and mayors - should help industrial prospects visualize the area as a future automotive manufacturing hub.

Renick received the application for planning funds Thursday, met with Musgrove and Mississippi Development Authority chief Steve Hale and delivered the commitment in person to the three-county group Friday.

"This is a great idea you all have had and something I think is going to be very successful," Renick said. The money came from the Rural Economic Impact Authority created by the Legislature this year to take the red tape out of funding job-generating projects in the state. Hale's department can tap up to $10 million this year for such work.

The Nissan example

Nissan, which opened a $1.3 billion plant in Canton in May, has generated 30,000 direct and indirect jobs going to employees from 73 of Mississippi's 82 counties, Renick said.

"Don't be sick of Nissan," he said, addressing some criticisms around the state. "Nissan has told everybody that the state of Mississippi is a place you need to take a look at. It didn't used to be like that. ... Nissan being in Canton, Mississippi, is going to help us put something on this site you all are working on."

Supervisors in the three counties will need to match the $250,000 state contribution with only $10,000 each to produce a formal study by early next year, Kelley said.

The precise location of the site will remain under wraps in the development stage to facilitate the project, officials said. Supervisors next must ratify an agreement creating what will be called the PUL - or Pontotoc Union Lee - Alliance, which will embrace the slogan, "Pulling for jobs."

The Burlington Northern Santa Fe Railroad is examining ways to create rail access at the site, and consultant Location Advisory Services Inc. will represent the PUL Alliance in negotiations with automakers.

Tom Hill, a TVA engineer, said preliminary studies of the site show it can be rounded into form in much the same way Nissan's Canton site was and no floodplain issues exist.

"Definitely, you could put an automotive industry here," he said.

David Rumbarger, president of Lee County's Community Development Foundation, said he believes site preparation would cost less than the $95 million initial phase at Canton, where 400,000 vehicles a year will be produced.

Of 100 auto plants expected to be built worldwide in the next 15 years, 40 likely would be built in the United States, with 20 of those in the Southeast, Rumbarger said. DaimlerChrysler, Ford and Volkswagen Audi are reported to be looking for sites now.

Demand for data

Hyundai and Toyota wanted concrete data on the site's contours and costs that don't exist now, but the planning study will provide that information, Rumbarger said, with the strongest affirmation coming from a principal in Location Advisory Services.

"He said this is the kind of site that site selection consultants (for the automakers) would drool over if we can get the costs identified," Rumbarger said.

Ongoing efforts of the PUL Alliance will be determined by its board, which will consist of two supervisors from each county and the mayors of the largest cities in each county. Officers of the group will be selected at its first formal meeting, and costs will be shared equally by the counties.

While the state's incentive cost for Nissan was $69,000 per job, Madison County's incentive cost was only $3,800. Should a concrete automotive project emerge, the three counties would share the cost of bond issues at the local level to supplement major funding from the state and federal governments.

Appeared originally in the Northeast Mississippi Daily Journal, 7/19/2003 8:00:00 AM, section A , page 1
 
I'm with you, Miss. is making a lot of progress, while Alabama is falling behind (when these companies do come, if the people in the area aren't employable they bring in their own people; we give them so many tax breaks and so forth to come, that in the end it seems as if we are actually paying them). Alabama is one of if not the most business friendly states, but look at the condition of the state.:(
 

Originally posted by Attack Dog
I'm with you, Miss. is making a lot of progress, while Alabama is falling behind (when these companies do come, if the people in the area aren't employable they bring in their own people; we give them so many tax breaks and so forth to come, that in the end it seems as if we are actually paying them). Alabama is one of if not the most business friendly states, but look at the condition of the state.:(

This is a tough call. We can either remain a poor and destitute state that has no jobs other than the basic jobs to run a city/county/state which are also "controlled" but by the local "foreigners", or we can bring as many jobs in as possible with incentives that at least increases the jobs available. It's a tough call, but a one time investment for 10-20-30 years of payroll spending and payroll taxes in the region/state, not to mention home purchases etc, off-sets the incentives to get a corporation to locate there.

Take Lowndes county and Macon county for example. What else was those counties going to do to provide jobs for the people? These counties ain't got a pot to piss in or a window to throw it out of,,,, but now, due to incentives and Alabama/Siegelman aggressively going after auto industry and landing Hyundai in Montgomery, you got a tier 1 supplier in Shorter (Shorter where the dog track is,,, the dog track hanging on by an eyelash,, Shorter that is nothing but an interstate exit with no hopes of good jobs of any kind outside the track and the filling stations and truck stop at the interstate exit.) bringing 300 jobs and you got two tier 1 suppliers in Lowdnes county bring about 500 jobs(i forget the actual figures) to that destitute county. The management will likely be people picked by hyundai, true, but there will be other jobs for the masses. That's jobs they wouldn't have otherwise. That may be the difference in someone leaving the state, getting involved in crime or having a job.

Alabama is no Georgia or North Carolina or Florida (and now even Tennessee gets some run). People/companies are not yet flocking to Alabama of their own free will. The Alabama's, Mississippies, Louisianas, South Carolinas and Arkansas have to facilitate the process of bringing jobs and people to their states. At the same time, no state can rest on its lorals when it comes to attracking jobs and industry. California was a utopia, but thanks to over-regulation, even silicon valley is in a prolonged slump.
 
True, but we need to expedite the process. When we began our aggresive education plan, one of the major concerns was that we would "over educate" our population and force a migration to more properous areas outside of the state. This fear was one of the motivating forces behind pursuing new industry, but funds and proper management are needed to maintain the high education standards needed to bring in new industry. A well educated populous is always a good incentive for business, other than catfish plants and so forth.;)
 
Originally posted by Attack Dog
True, but we need to expedite the process. When we began our aggresive education plan, one of the major concerns was that we would "over educate" our population and force a migration to more properous areas outside of the state. This fear was one of the motivating forces behind pursuing new industry, but funds and proper management are needed to maintain the high education standards needed to bring in new industry. A well educated populous is always a good incentive for business, other than catfish plants and so forth.;)

This is where Birmingham comes in (or should), only if it was more like an Atlanta or at least a Nashville. A thriving metro area like a Nashville, Atlanta, RDU, DFW, etc would at least give the educated masses options to stay in Alabama if they wanted to. Look at all the Bamas that flocked to Atlanta for jobs, not to mention the native Georgians there. Birmingham, back in its steel mill hay-day, was the same to Alabama as Atlanta is to Georgia now, but heavy industry crashed, Birmingham didn't make the adjustments, "Bull" Connor tried to dig in and Birmingham crashed and burned, only to resently (in the 90s) start to turn things around.

On a well educated populous, that and industry is the classical chicken and egg; which comes first? Unless the masses take it upon themselves to become well educated despite the horrendous circumstances (in poverty-striken Alabama, etc), education won't come without an influx of jobs that provide tax revenue to improve schools and hopefully education. The thing is, if you go on the premise of simply educating the people and hoping industry will come on that alone while the other states are doing any and everything to lure industry to their state, you will get left even further behind.

Plus too,, industry coming to the state (like my company for example) provide many of the "blue collar" high school grads and GEDers the opportunity to go to college while working for free if they maintain a C average. Now incentives were given to lure my company to Alabama. I'd say folks at this plant going to college and getting a degree who otherwise would not have that opportunity on their own unless they were really determined and motivated, is priceless and well worth the incentives to get the company to locate in Alabama, not to mention all of the indirect benefits to the city of Troy from the company being involved in civic activities and supporting community activities financially. Those will be citizens who will be educated by the company given incentives to locate in the state. All they have to do is go to class, right there on sight, after work.

What do you think of the influx of Hispanics into the black belt counties? Is this a good thing? Bad thing?
 
Originally posted by Bartram

What do you think of the influx of Hispanics into the black belt counties? Is this a good thing? Bad thing?

I think they create another challenge for the masses of the blackbelt. The lack of focus on education leaves the majority of the population as cheap labor. From what I've seen, we have become too relaxed while Hispanics are on a mission: they work hard and together. We are forced to focus and plan or die.
 
Originally posted by Attack Dog
I think they create another challenge for the masses of the blackbelt. The lack of focus on education leaves the majority of the population as cheap labor. From what I've seen, we have become too relaxed while Hispanics are on a mission: they work hard and together. We are forced to focus and plan or die.

Interesting. Yes, many of the ones here do work hard and take the jobs that nobody else wants because it's better than what they came from. And yes, we are too "relaxed" as you would say (nice underhand softball lob there by the way.). I was tickled pink to roll through Union Springs and see a thriving corner of Hispanic stores in a once run-down part of town. I like the idea of having more of a cultural mix in Alabama.
 
Ditto!
I'll be glad when our people realize that education and hard work is the only way to live comfortable in America. I hope finally some U.S. companies start expanding and moving to all areas of Alabama. Areas south, east and west of Montgomery is depressing.
 
Our People

Originally posted by Smiley
Ditto!
I'll be glad when our people realize that education and hard work is the only way to live comfortable in America. I hope finally some U.S. companies start expanding and moving to all areas of Alabama. Areas south, east and west of Montgomery is depressing.

I think the biggest impediment to our people now days is OUR PEOPLE. It's up to us now not to be sitting around watching paint dry. I think it is our mis-guided/mis-placed priorities and lack of discipline that get the best of us now days.

That's because Montgomery sits in the heart of The Black Belt, a historically predominantly black, poor region (post the glory days of the plantation economy) of the deep south.
 
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