< Previous8 M I S S I S S I P P I DE V E L OP M E N T G U I DE of Mississippi, didn’t just survive the global pandemic; it thrived. BancorpSouth Bank and Cadence Bancorporation merged to form one bank, Cooper Tire merged with Goodyear, and business kept booming in northern Mississippi. “Business in Lee County has been back full bore since Christmas,” says Rumbarger. “Our state is pretty wide open for business now. Google came to DeSoto County during the height of the pandemic. Amazon located two projects in Mississippi following the changing of the state flag; and Hotel Tupelo, a high-end suites hotel, opened in downtown Tupelo. Our pipeline has really filled up since January, and those projects are on a shorter time frame than before the pandemic.” The same could be said of the whole state. A review of the Conway Data Analytics projects database shows that Mississippi landed 48 corporate facility expansion deals in 2020. These ranged from a $300 million investment by Associated Wholesale Grocers in Hernando in DeSoto County to a million-dollar life sciences investment by Quantum Research International in Tupelo. Having the nation’s second- lowest cost of doing business is a huge draw for Mississippi, but so is a workforce of 1.267 million people that are highly trained and motivated. A right-to-work state, more than 22,000 workers received specialized training in Mississippi last year. Statewide, 136,534 people are employed in manufacturing jobs at 2,366 different companies. The largest segment of manufacturing workers are employed in the production of motor vehicles and parts. One of the biggest employers in the state in this sector is Toyota, and its plant in Tupelo is showing no signs of slowing down. “Toyota had just finished a model change and hired 200 people in the “International FDI went away for about a year, but it is back now. We are going to see a real explosion this summer and fall.” — David Rumbarger, President & CEO, Community Development Foundation, Tupelo, Mississippi New Fairpark Tower PHOTO BY ROB HAIRSTON, CDFMS.ORGM I S S I S S I P P I DE V E L OP M E N T G U I DE 9 prior two years,” Rumbarger says. “They make the Corolla at their plant in Tupelo. That is the planet’s best- selling car. Some 500,000 Corollas are built here each year. And they are constantly looking at the market for electric vehicles.” Coming out of the pandemic, Rumbarger says Mississippi is poised to boom even more through the remainder of 2021. “I am bullish on the year ahead right now,” he says. “We are conducting on-site visits now. We had been doing virtual visits until March, but people in various industries are now trying to get ahead of what the economy is going to do. There is still capacity in industry now. International FDI went away for about a year, but it is back now. We are going to see a real explosion this summer and fall.” Rumbarger says the appeal of Mississippi is readily apparent to manufacturers and logistics end- users. “In America, we are located right in the middle of Texas and Florida, two of the fastest growing markets in the country,” he says. “We are just 4 hours from Atlanta and 2 hours from Birmingham. Our interstates connect us directly to Tennessee, Arkansas, Louisiana, Texas, Alabama, Georgia and Florida. For business, this is the place to be.” Mississippi landed 48 corporate facility expansion projects in 2020. Source: Conway Data Analytics Tupelo street performers PHOTO BY ROB HAIRSTON, CDFMS.ORG10 M I S S I S S I P P I DE V E L OP M E NT G U I DE by S AVA N N A H K I NG G O V E R N O R I N T E R V I E W BOLDLY FOR BUSINESS MISSISSIPPI’S GOVERNOR SUCCESSFULLY NAVIGATES CHALLENGING FIRST YEAR AND BUILDS MOMENTUM FOR THE STATE’S FUTURE.M I S S I S S I P P I DE V E L OP M E N T G U I DE 11 Governor Tate Reeves was only months into his first year as Mississippi’s governor when the global COVID-19 pandemic threw a wrench into the gears of commerce. Even as the economy slowed and businesses hit pause on new investments, Reeves was undaunted, staying focused on his primary goal of creating a business climate that will create quality jobs for Mississippians. His bold approach seems to be paying off. Not only did the state create 5,000 new jobs in 2020, but momentum is continuing to build in Mississippi in 2021. In the following interview, Governor Reeves discusses his first year of serving in the state’s highest office, navigating the pandemic, strengthening the workforce and attracting new business. You were sworn in just months before the start of the pandemic, how would you say Mississippi fared compared to others across the country? Governor Tate Reeves: In terms of economic development and announcements, Mississippi did not slow down. Our team helped foster $1.63 billion in new investment in 2020, which was a 45% increase over the previous year. We created more than 5,000 new jobs! For small businesses, we helped them keep their doors open and encouraged Mississippians to support Main Street in a responsible way. While 2020 was a challenge, I’m proud of how our people navigated the year. What are some the biggest lessons you took from the last year? Reeves: Mississippians are resilient. We’ve experienced our share of natural disasters from Hurricane Katrina to tornadoes to flooding from the Mississippi River. This pandemic brought out the same strength in our people. Neighbors continued to check on neighbors. People made sure to stop by their locally owned shop or restaurant — if only at the takeout window — and support their community. If you locate your company here, you’re going to be part of a community, and I’m proud of that. How would you describe the state’s business climate today? Reeves: We’re open for business. Our team is even more aggressive than last year in terms of recruiting and bringing in projects. When you call our business recruitment team, you’re going to find responsive individuals on the other end of the phone who are eager to meet your needs and bring jobs here. Our advantages remain constant. We have reliable, affordable energy, a permitting system that can help you quickly go from site selection to groundbreaking and a responsive workforce training system. You’ve had a focus on education from the beginning. How are expanded programs like computer science helping to deepen the state’s talent pool? What else is on the horizon? Reeves: I’m proud of my record on education. We’ve seen tremendous gains in reading and math skills among our students compared to their peers in other states. That’s because of the hard work of our educators, parents and students along with reforms we implemented. If you raise the bar, Mississippi children will surpass expectations. We’ve seen strong performance and job placement from coding academies around the state and expanding computer science is simply another step in our efforts to strengthen our education system. We’re always evaluating new ideas to create a flexible, prepared workforce for the future. PHOTO: MISSISSIPPI DEVELOPMENT AUTHORITY12 M I S S I S S I P P I DE V E L OP M E N T G U I DE In August, you launched the ReSkill Mississippi Initiative to help the state’s displaced workforce. Within a month more than 2,000 Mississippians had already enrolled. Tell us how you’re using programs like this to help people get back to work? Reeves: Programs like ReSkill Mississippi are an example of how responsive we are to the needs of employers. A scalable, trained workforce is a priority because I know when a company opens its doors, it needs employees who are ready to go on Day One. We are constantly talking with employers and educators to make our workforce training programs the best in the nation. Mississippi is one of a growing number of states opting out of future unemployment funds from the federal government. What message do you want to send to businesses and workers in the state? Reeves: Mississippi is ready to get back to work. Whether you’re a restaurant or a large distribution center, you’ve got to meet the demands of your customers — those orders aren’t slowing down. I’ve heard from numerous employers across the state, and they’re all saying the same thing — they want more workers! I look forward to Mississippians returning to the workforce to keep our economy going strong. What’s the biggest misconception people have about your state and how do you intend to combat those misconceptions with potential newcomers to the state? Reeves: I think those outside the state are simply unaware of all Mississippi has to offer. We test rocket engines on the Gulf Coast. We’re home to several U.S. Department of Defense research programs, including a U.S. Army supercomputer in Vicksburg. It’s a message we’re working to spread. I’ll tell you, once people visit our state and experience our hospitality — especially our food — they fall in love. They want to return again and again. As a lifelong Mississippian, how would you say the state’s brand identity has changed since you took office? Reeves: Mississippi is a pro-business state, and that hasn’t changed. We are working to improve our tax structure because I believe you know how to invest your money better than government. We are always looking for ways to strengthen one of the best workforce training programs in the nation. We are a strong manufacturing state, and we have a good research foundation at our universities that companies can lean on. You’ve proposed phasing out the state’s income tax, tell us about your goals for the state’s tax policy. What do you aim to accomplish by making these changes? Reeves: I firmly believe each individual or CEO, not the government, knows best “When you look at Mississippi, we’re a state with low real estate and energy costs; we have the infrastructure to get your products to market; we have streamlined regulations and hardworking people. We offer an environment that will help companies meet the needs of their customers and provide opportunities for growth.” — Governor Tate ReevesM I S S I S S I P P I DE V E L OP M E N T G U I DE 13 how to invest and spend his or her money. To grow our economy, I believe a fl atter, simpler tax policy that lets you keep more of your money is the best way to grow our economy. That’s why I supported phasing out the franchise tax and income tax as lieutenant governor. It’s why I support eliminating the income tax as governor. What are you doing to foster foreign trade in the state? Reeves: Mississippi has had tremendous success attracting foreign investment. We’re proud to be the home of Nissan and Toyota. Yokohama Tire and Continental Tire have found success here. I want to build on that good work. I’ve met with representatives from our key international markets. We’re looking to open a European offi ce soon. We simply need to spread the message of the business-friendly climate we have in Mississippi. Why should any business executive seeking an expansion or relocation in North America consider Mississippi? Reeves: When you look at Mississippi, we’re a state with low real estate and energy costs, we have the infrastructure to get your products to market, we have streamlined regulations and hardworking people. We off er an environment that will help companies meet the needs of their customers and provide opportunities for growth. We have a proven track record in advanced manufacturing, energy, aerospace and automotive sectors. We want to be a partner that helps you succeed. MORE THAN 5,000 NEW JOBS CREATED IN 202014 M I S S I S S I P P I DE V E L OP M E N T G U I DE s the state’s lead economic and community development agency, the Mississippi Development Authority (MDA), found itself charting unfamiliar waters in 2020. In addition to a change in leadership, the organization was tasked with helping local business stay afloat during a global pandemic, all while continuing to recruit and retain businesses across the state. Thanks to the solid crew at MDA, the state managed to do all that and more. We recently spoke with John Rounsaville, who was appointed earlier this year by Governor Tate Reeves to serve as director of the Mississippi Development Authority. In May 2020, Rounsaville began his post on an interim basis. In our interview, Rounsaville shared perspective on the lessons learned over the last year, his goals for the organization and the state’s business ecosystem. As the new leader of MDA, what are some of your biggest priorities for the year ahead? John Rounsaville: Like all economic development organizations, our mission is recruiting new companies to Mississippi while also retaining and expanding our existing businesses. Through that mission, we share Governor Reeves’ top priority for the state — increasing household income. We are in consistent communication with executives all over the country — and the world — to show them what Mississippi has to offer, and we will continue to do that through better telling our story. We also want to reinforce community development through expansion of existing businesses. Small businesses are the backbone of our economy, and as they grow, so do their communities. Another priority is bringing more visitors to the state. Tourism is one of our top economic drivers. With our natural resources, casino resorts, beaches, culture and history, there is much to see and do in Mississippi, no matter what part of the state people visit. Of course, the pandemic brought challenges for every state across the country. How would you say Mississippi fared as it navigated the hurdles? MDA’S NEW LEADER SHARES HIS PERSPECTIVE ON THE STATE’S PRO-BUSINESS CLIMATE AFTER AN UNUSUAL YEAR. by S AVA N N A H K I NG A I N T E R V I E W W I T H M D A L E A D E R S H I PM I S S I S S I P P I DE V E L OP M E N T G U I DE 15 Rounsaville: Mississippi fared extremely well in spite of the pandemic and resulting challenges. In fact, we realized a nearly doubling of new capital investment over 2019. Uniquely, while there weren’t many large- scale projects to compete for, 80% of our wins in 2020 were comprised of existing business expansions. That speaks well for us in that our businesses have recognized great success in Mississippi and, therefore, continue to choose to expand and grow here. I think what really made a diff erence is our state’s pro-business attitude. Governor Tate Reeves, while taking the precautions necessary, kept Mississippi ‘open for business.’ That decision gave our workers and our businesses confi dence to push forward and avoid sitting on the sidelines. What were some of the biggest announcements of 2020 and 2021? Rounsaville: We had a number of big announcements in 2020 and so far in 2021. Expansions among our defense industry proved vibrant with Navistar Defense in Clay County adding 500 additional jobs and General Atomics in Lee County implementing an expansion that included 125 jobs and a $40 million investment. Along the Mississippi Gulf Coast, we saw a major investment from Calgon Carbon in Hancock County, with a $185 million investment, and Halter Marine in Jackson County invested $10 million in an expansion that created 100 new jobs. We’re known for our strategic logistics advantages in North Mississippi, and that kept our distribution sector strong. Associated Wholesale Grocers invested $300 million in an expansion in DeSoto County, and Material Bank made a $15 million investment that created 300 new jobs. Additionally, we saw great success in our forest products industry. Forestry is one of our state’s top agricultural industries, and we’re extremely attractive due to logistics and incredible level of feedstock. Four new sawmill projects announced in 2020 in Mississippi, and this sector has shown no signs of slowing down. Highlights for 2021 include Milwaukee Tool’s major 1,200 job expansion in multiple locations in Mississippi and another sawmill location for Biewer Lumber in Montgomery County with a new $130 million facility. Tell us about some of the things Mississippi is doing to attract more foreign investment? Rounsaville: Like our competitors, we’re extremely focused on international investment. We’re expanding our eff orts in Europe, specifi cally, and re-tooling our organization to better meet the needs of our international clients and investors. We’ve restructured our foreign direct investment and trade group and brought in a new experienced director. Ultimately, we need to do a better job of telling our story and making sure the world knows about Mississippi’s advantages and capabilities — quality of life, workforce, business climate, and transportation and logistics. Europe has been a great partner for us, and Continental Tire is just one example. The German-based tire production company has a 5 million-square-foot facility just west of Jackson, representing a $1.45 billion investment. The company has hired 500 employees and plans to hire 2,000 more by 2028. Mississippi’s strategic location makes it a competitive location for global companies. Our excellent transportation network includes six interstate highways and 14 federal highways; 76 airports, including two international airports; dozens of rail systems that serve 2,500 miles of track throughout the state; and 15 ports found along Mississippi’s three navigable waterways. The Mississippi River borders the state to the west, the Tennessee- Tombigbee Waterway borders the state to the east, and the Gulf of Mexico forms Mississippi’s border to the south. Mississippi boasts two deep-water ports along the Gulf of Mexico, allowing companies convenient, quick access to international markets.16 M I S S I S S I P P I DE V E L OP M E N T G U I DE S TAT I S T I C A L P R O F I L E Company City Sector Category Type Invest. $M Jobs Associated Wholesale Grocers, Inc. Hernando Transport & Logistics New Dist./Warehouse 300 79 Steel Dynamics, Inc. Columbus Metals Expansion Manufacturing 250 50 Calgon Carbon Corporation Pearlington Chemicals & Plastics Expansion Manufacturing 185 38 Timberland Inv’t Resources, LLC / Mission Forest Prod. Corinth Wood Products New Manufacturing 160 130 Kimberly-Clark Corporation Corinth Paper, Print & Packaging Expansion Manufacturing 140 33 Idaho Forest Group LLC Lumberton Wood Products New Manufacturing 120 135 Ardagh Packaging Holdings Limited Olive Branch Mach., Equip. & Const. Expansion Manufacturing 90 80 Future Foam, Inc. Baldwyn Chemicals & Plastics Expansion Manufacturing, DW 63 22 IG Design Group Americas, Inc. Byhalia Paper, Print & Packaging Expansion Dist./Warehouse 57.4 300 IG Design Group Americas, Inc. Byhalia Paper, Print & Packaging New Dist./Warehouse 49 35 Products Forest LLC Vicksburg Vicksburg Wood Products Expansion Manufacturing 40 60 United Parcel Service, Inc. Ridgeland Transport & Logistics New Dist./Warehouse 28.6 161 Rolls-Royce North America Holdings Inc. Pascagoula Mach., Equip. & Const. Expansion Manufacturing 22 Mississippi Steel Processing, LLC Columbus Metals Expansion Manufacturing 20 60 Wayne Farms LLC Laurel Food & Beverage Expansion Manufacturing 16.9 200 Material Bank Olive Branch Consumer Products New Dist./Warehouse 14.5 300 Toshiba America Business Solutions, Inc. Horn Lake Consumer Products New Dist./Warehouse 14 20 Ashley Furniture Industries, Inc. Verona Consumer Products Expansion Manufacturing, DW 13 30 Hankins Lumber Company, Inc. Grenada Wood Products New Manufacturing 12.5 43 Quadient, Inc. Byhalia Mach., Equip. & Const. New Dist./Warehouse 11 75 Type Projects Manufacturing 27 Distribution/Warehouse 15 Headquarters 4 Research & Development 4 Office 2 Data Center 1 Sector Projects Consumer Products 7 Machinery, Equip. & Const. 5 Transport & Logistics 5 Metals 5 Chemicals & Plastics 4 Wood Products 4 Paper, Printing & Packaging 4 Aerospace 3 Electronics 2 Business & Financial Services 2 Other 6 Miss in Numbers Top 20 Projects Projects by Type Projects by Sector 28% Dist./WH 50% Mfg. 15% 10% 10% 10% SOURCE: CONWAY ANALYTICSM I S S I S S I P P I DE V E L OP M E N T G U I DE 17 Miss in Numbers Snapshot Central Time Zone Tate Reeves (R) Governor 2,986,530 Population (2018) 1,267,500 Labor Force (2019) Jackson Capital Subtropical with long summers, short mild winters Climate 46,923 sq. miles Land Area 62 miles Coastline 4 Foreign Trade Zones $114.1 billion GDP (2018) $11.8 billion Exports (2019) Neighboring States Canada, Mexico, Panama, China, Japan Top Export Markets (2018) • Alabama • Arkansas • Louisiana • Tennessee SOURCE: MISSISSIPPI DEVELOPMENT AUTHORITYNext >