< Previous48 NOVEMBER 2024 SITE SELECTION Less than two years since breaking ground on its sprawling, $. billion “Metaplant” west of Savannah, Georgia, South Korea’s Hyundai has begun to produce electric SUVs that are expected to arrive at U.S. dealerships by the end of the year. “According to Hyundai,” says GDEcD’s Wilson, “it’s the fastest they’ve ever built a plant anywhere in the world.” Manufacturers like Hyundai, says Boyd, are drawn to the South by prevalent “right to work” laws — which serve to limit union participation — and also by the region’s leadership in workforce development programs. “If you go back to the ’s, when the textile industry left, these states were decimated and hungry to create jobs,” says Wilson. “Those programs go back to an overall push from leadership in the southern states that said that we have to be more competitive in making companies succeed here.” Southern Accents David Rumbarger, president and CEO of the Community Development Foundation in Tupelo, Mississippi, believes certain aspects of Southern culture play especially well with foreign investors. In July, Switzerland’s Liebherr, one of the world’s largest manufacturers of construction equipment, announced plans for a $ million distribution and manufacturing operation in surrounding Lee County. “I have lived in the South for a long, long time,” Rumbarger tells Site Selection, “and Southern hospitality that extends not only from a site visit, but accommodating workforce needs, accommodating company needs and understanding how to client-service goes a long way toward making things happen.” And he’s serious when he talks about Elvis. “He’s my trump card,” Rumbarger says. “He was born here in Tupelo, and he is internationally known. He is a great introduction to any discussion about Americana and what America is like. He really allows us a platform to speak from.” Wilson says Southern hospitality isn’t some tired bromide, but “really is a thing” that works to his advantage. So are regional markers that resonate globally: ink Southern music, NASCAR and SEC football. Plus, Georgia boasts its own “Elvis” in e Masters Tournament — “the gold standard of all red-carpet tours,” says Boyd — which draws throngs of well- heeled international prospects to the state each spring. “ ere’s nothing like it in the world,” says Wilson. “Dating back to the ’s, we’ve been able to bring in companies from around the world and host them. It’s paid off ,” he says, “in billions and billions of dollars and tens of thousands of jobs.” By country of the foreign parent, four countries accounted for half of the total foreign direct investment in the United States position at the end of 2023. e Netherlands was the top investing country with a position of $717.5 billion, followed by Japan ($688.1 billion), Canada ($671.6 billion) and the United Kingdom ($630.1 billion).” — U.S. Bureau of Economic Analysis , July 2024 By country of the foreign parent, four countries SITE SELECTION NOVEMBER 2024 49 All Roads Start Somewhere E very Interstate highway was once a new Interstate highway. As the photograph on this page attests, new Interstate corridors have to start somewhere. Today’s supercommuters on busy routes like I-85 may laugh ruefully at the pristine surroundings of yesteryear. But those with vision see I-22 from Memphis to Birmingham or other new routes as emerging corridors ripe with development potential for industry and tourism. Out of 102 high priority corridors officially designated by Congress, I-22 is one of 35 designated as a future Interstate highway. Among others: • I-69 “from Sarnia, Ontario, Canada, through Port Huron, Michigan, southwesterly … through Indianapolis, Indiana, through Evansville, Indiana, Memphis, Tennessee, Mississippi, Arkansas, Shreveport / Bossier Louisiana, to Houston, Texas, and to the Lower Rio Grande Valley at the border between the United States and Mexico” • The Raleigh-Norfolk Corridor • The North-South Corridor (I-49) from Kansas City, Missouri, to Shreveport, Louisiana • The California Farm-to-Market Corridor, California State Route 99 from south of Bakersfield to Sacramento • The East-West Transamerica Corridor from Hampton Roads, Virginia, across sections of the I-73/74 corridor in West Virginia and the I-66 corridor in Kentucky • The Middle Georgia Corridor (I-14) beginning at the Alabama-Georgia border and following the Fall Line Freeway from Columbus, Georgia, to Augusta. A full listing with complete route breakdowns and maps can be found at the U.S. Department of Transportation Federal Highway Administration website at www.fhwa.dot.gov/planning/ national_highway_system/high_priority_corridors. A full exploration of these corridors’ potential can be found in future issues of Site Selection. by ADAM BRUNS adam.bruns@siteselection.com NEW INTERSTATE CORRIDORS This 1967 photo takes in the view along a 23-mile section of the Adirondack Northway (I-87) between Lake George and Potterville, New York, adjudged America’s Most Scenic New Highway of 1966 by Parade Magazine. Photo courtesy of the Federal Highway Administration50 NOVEMBER 2024 SITE SELECTION U.S. Foreign-Trade Zone Activity in Gulf States Leads to a Record- Breaking Year O ver 90 years after the Foreign Trade Zone Act of 1934 was first established and subsequently introduced the nation’s first FTZ in Staten Island, New York, in 1936, a robust network of activity continues to flourish. In August 2024, the 85th Annual Report of the Foreign-Trade Zones Board to Congress of the United States was released, showing that Texas, Louisiana, California, South Carolina and Tennessee remained firm in their respective top five ranks for overall FTZ economic impact since 2022. Fresh data from the report, including aspects such as value of merchandise received, value of exports and number of employees in the zone, helped guide Site Selection in cultivating its own top 20 U.S. FTZs. In 2023, FTZ No. 124 located at the Port of South Louisiana (PortSL) took the lead, followed by FTZ No. 28 in Spartanburg County, by ALEXIS ELMORE alexis.elmore@siteselection.com TOP FREE TRADE ZONES SITE SELECTION NOVEMBER 2024 51 South Carolina. Port Arthur’s FTZ 116 in Texas come in at No. 3, followed by fellow Texas FTZ No. 84 overseen by Port Houston. Tied at No. 5 are Puerto Rico’s FTZ No. 7 in Mayaguez and FTZ No. 122 at the Port of Corpus Christi. Three Texas FTZs in the top six provide ample evidence of which state leads the way in overall FTZ impact (chart). Notable findings from the annual report include: • There were 200 active FTZs during 2023, with a total of 374 active production operations. • More than 550,000 persons were employed within 1,300 active FTZ operations during the year. • Value of shipments into zones totaled nearly $949 billion (down $62 billion from more than $1 trillion the previous year). • About 68% of shipments received involved domestic merchandise. • “The levels of domestic status merchandise used by FTZ operations — 80% for production operations and 48% for warehouse/distribution operations — indicates that FTZ activity tends to involve domestic operations that include significant domestic inputs alongside foreign inputs.” • Warehouse/distribution operations received nearly $364 billion in merchandise while production operations received nearly $585 billion (62% of zone activity). • The largest industries accounting for zone production activity include the pharmaceutical, oil refining, automotive, electronics and machinery/equipment sectors. The Port of Houston Authority’s FTZ No. 84 is one of three Texas FTZs in this year’s top 10 and instrumental in the state’s No. 1 position in FTZ economic impact. Photo courtesy of Port Houston TOP 10 STATES BY FOREIGN-TRADE ZONE IMPACT RANK STATE 1 Texas 2 Louisiana 3 California 4 South Carolina 5 Tennessee 6 Florida 7 Indiana 8 North Carolina 9 Puerto Rico 10 Alabama54 NOVEMBER 2024 SITE SELECTION In comparison to data accounting for FTZ activity in 2022, South Carolina’s FTZ No. 38 in Spartanburg County jumped up six places. The zone was responsible for receiving than $25 billion in merchandise last year, due in large part to activity from BMW. The company led FTZ activity in both merchandise received and exports, reflecting $10 billion and between $750 million and $1 billion, respectively. As a whole, the majority of products by value coming into the zone are made up of 48% vehicles and 45% vehicle parts. The BMW Manufacturing Company looks to grow those product values as it submitted a notification of proposed production activity for its Spartanburg plant to the FTZ Board in May 2024. From the proposal, BMW seeks to add production authority in subzone 38A for foreign-status materials and components including glass adhesive, spring- operated actuators and head unit high navigational map controllers. A month later, the company began operations at its first North American press shop, located at the Spartanburg site, in preparation for the new BMW X3 launch. The investment is part of a larger $1 billion investment at its 30-year-old facility in the state, which will look to begin manufacturing six fully electric vehicles by 2030. XL Growth at Port SL To no surprise, No. 1 FTZ 124 in Gramercy at Port SL announced it experienced a 10-million-ton increase in 2023. It handled more than 248 million short tons, marking the second consecutive year of growth. The 2023 Tonnage Report showed notable increases, such as a 40% cargo increase 2024 TOP 20 U.S. FOREIGN-TRADE ZONES RANK PORT NAME LOCATION CITY 1 Louisiana FTZ 124, Gramercy Port Of South Louisiana 2 South Carolina FTZ 38, Spartanburg County South Carolina State Ports Authority 3 Texas FTZ 116, Port Arthur Foreign-Trade Zone Of Southeast Texas, Inc. 4 Texas FTZ 84, Houston Port Of Houston Authority T5 Puerto Rico FTZ 7, Mayaguez Puerto Rico Industrial Development Corporation T5 Texas FTZ 122, Corpus Christi Port Of Corpus Christi Authority T7 Alabama FTZ 98, Birmingham City Of Birmingham T7 Arizona FTZ 75, Phoenix City Of Phoenix 9 California FTZ 18, San Jose City Of San Jose T10 Kentucky FTZ 29, Louisville Louisville & Jefferson County Riverport Authority T10 North Carolina FTZ 93, Raleigh/Durham Central Pines Regional Council 12 California FTZ 202, Los Angeles Board Of Harbor Commissioners Of The City Of Los Angeles 13 Mississippi FTZ 92, Harrison County Mississippi Coast Foreign-Trade Zone, Inc. T14 Tennessee FTZ 78, Nashville Metropolitan Government Of Nashville And Davidson County T14 South Carolina FTZ 21, Dorchester County South Carolina State Ports Authority 16 Texas FTZ 115, Beaumont Foreign-Trade Zone Of Southeast Texas, Inc. 17 Indiana FTZ 177, Evansville Ports Of Indiana 18 California FTZ 50, Long Beach Board Of Harbor Commissioners Of The Port Of Long Beach 19 New Jersey FTZ 49, Newark/Elizabeth Port Authority Of NY And NJ T20 Louisiana FTZ 154, Baton Rouge Greater Baton Rouge Port Commission T20 Texas FTZ 199, Texas City Texas City Foreign-Trade Zone Corporation Source: USFTZ Board56 NOVEMBER 2024 SITE SELECTION in animal feed, a 75% increase for chemicals/fertilizers and a 463% increase in sugar/molasses. “Numbers tell the story, and the Port of South Louisiana is telling a tale of resurgence,” said PortSL CEO Paul Matthews. “Through relentless innovation and strategic leaps, we’re scripting a narrative of growth, and the recent tonnage numbers underscore our port’s global appeal and versatility. Our team is focused on strengthening our partnerships with global shippers and industry along the Mississippi River, demonstrating that the Port of South Louisiana is ‘A Better Way to Cargo.’ ” The zone accounted for more than $50 billion of merchandise received in 2023. While Port SL is still considered the nation’s top grain exporter, new international sustainable project investments landing at the port show room for industry diversification. With $46 million on hand, Ireland- based recycling tire company Life for Tyres (L4T) plans to establish its first U.S. processing facility on 10 acres of Port SL’s Globalplex Intermodal Terminal. The company will utilize old tires to create sustainable commodities such as advanced biofuel feedstock and recovered carbon black and scrap steel. L4T CEO Tilen Milicevic announced that Port SL was selected for the project due to a strong industrial ecosystem, availability of talent and supplies, connectivity, abundance of feedstock and proximity to clients. Louisiana FTZ 124 at the 54-mile-long, three-parish Port of South Louisiana (headquartered in Reserve) rose to No. 1 in Site Selection’s top FTZ rankings. Map courtesy of Port SLNext >