The U.S. South: Population Boom Ignites Facilities Explosion

If there?s one thing a company needs, it?s people. People to work, run and operate the business — and people who?ll buy its products and services.

That simple fact is one of the big reasons facilities are flocking to the U.S. South. Strong population growth across much of the region translates into an abundant work force — a key corporate concern in today?s era of low unemployment rates and rising skill requirements.

People want to work where they want to live, and lots of people want to live in Florida,? says Steve Mayberry, vice president of expansion and retention for Enterprise Florida, the state?s lead economic development agency. Florida?s high quality of life helps Sunshine State employers attract top talent. Indeed, people do want to live in Florida. U.S. Census Bureau figures show the Sunshine State?s population grew 11.3 percent between 1990 and 1996, far outstripping the national average of 6.7 percent. Georgia?s population increased even more (13.5 percent), and the region as a whole grew 9.7 percent.

That population boom is steering many facilities to the South, analysts say.

?The flow of people from north to south is driving business locations,? says Paul Kilgallon, Fort Lauderdale, Fla.-based senior vice president for CMD Realty Investors. ?As the work force moves, so do the facilities. In turn, that opens up opportunities to serve local population bases.?

Besides an ample labor force, the South offers site-seeking firms a plethora of bottom line-boosting advantages, including low operating costs and unionization levels, ready access to growing consumer markets and some of the nation?s best work-force training programs.

?Our clients are primarily interested in this region due to its good labor climate and labor rates, plus the solid tax climate,? says Mike Chambers, an industrial broker in commercial real estate leader Brannen/Goddard Co.?s Atlanta office. ?But overall development costs in the South, including land and construction costs, are also pretty advantageous. Development and impact fees are much lower than many other areas, and the time needed to get permits is much shorter.?

From northern Kentucky just below Cincinnati southward to the tip of Florida at Key West, the southern United States includes six states and covers approximately 290,532 sq. miles/752,500 sq. km. The region?s population is almost 38 million.

The South offers an outstanding diversity of globally competitive location options. Atlanta, for instance, is a top choice for headquarters facilities. Memphis, Tenn., is a leader in distribution. Cities like Jacksonville, Fla., and Tampa, Fla., have attracted a host of blue-chip firms? back-office operations, while nearby Orlando, Fla., is becoming a high-tech haven. And outstanding manufacturing and other locations are scattered across Alabama, Kentucky and the other four states.