Mobile, Ala. aerospace cluster set for future growth as expansion plans take shape

Posted on by Michael Randle

MOBILE, Alabama — New investments by key players in the Mobile aerospace cluster are setting the stage for future growth at what has become a major production hub for the global aviation industry.

Airbus Americas is increasing its investment in the A220 final assembly line at its Alabama manufacturing facility by an additional $18.8 million, according to the Mobile Chamber. The company’s investment in jigs, tools and manufacturing machinery will provide a significant boost to its current operations in Mobile.

Airbus announced plans for A220 aircraft manufacturing in Mobile in October 2017, and it officially opened the A220 Final Assembly Line in May 2020. This past September, Airbus celebrated the 50th A220 built in Mobile.

Airbus plans to break ground on the A220 expansion in January 2024, according to the Chamber.

“Since Airbus announced its plans to make Alabama its U.S. industrial home, it has been in constant growth mode in Mobile,” said Greg Canfield, Secretary of the Alabama Department of Commerce.

“This continuous is made possible by the company’s skilled workforce in Alabama and our commitment to developing a pipeline of future aerospace workers,” he added.

Airbus is currently constructing a second A320 production line at its facility in the Mobile Aeroplex at Brookley complex, a major project that is creating 1,000 jobs and doubling the company’s industrial footprint in Alabama.

MAAS AVIATION GROWTH

In addition, MAAS Aviation this month announced plans to expand its operations in Mobile.

“Increasing our capacity is essential to meeting the growing demands of our customers and achieving our strategic ambitions,” MAAS Aviation Chief Operating Officer Geoff Myrick said.

“Mobile has proven to be an ideal location to grow our business and we are looking forward to expanding our footprint at Brookley Field,” he added.

The company, known for its expertise in aircraft painting, today operates three painting hangars at Brookley Field Mobile and is poised to receive an award to operate two additional paint shops starting in February 2024, according to the Mobile Chamber.

“MAAS Aviation’s expansion is not just a testament to their success but also a reflection of the thriving business environment in Mobile,” said Mobile Chamber President and CEO Bradley Byrne. “This growth further cements Mobile’s position as a hub for innovation and economic development.”

The proposed investment of $1.6 million will focus on capital improvements in jigs and tooling, integral to the expansion, the Chamber said.

“Mobile County Commission is pleased to support MAAS Aviation Brookley Inc.’s almost $2 million investment that will create up to 150 new full-time jobs within five years,” Mobile County Commission President Randall Dueitt said. “This strategic expansion will fuel economic growth at Brookley Field Mobile and be of benefit to Mobile County and the region.”

As a result of this expected growth, MAAS plans to increase its recurring spend in the local market on goods and services from between $5 million and $7 million in 2023 to more than $15 million by 2028, according to the Chamber.

EXPANDING TRAINING

At the same time, AIDT — a part of the Alabama Department of Commerce — is working to expand its Alabama Aviation Center at Brookley. The 36,500-square-foot training facility opened in 2014 to support Airbus’ workforce needs as it prepared to launch production in Mobile.

AIDT is currently working with Airbus to finalize the design of the expansion before putting out a bid for a general contractor. Once the contract has been signed, construction is expected to take between 12 and 18 months.

To facilitate Airbus’ hiring plans, Alabama workforce development and education organizations are collaborating on new recruitment and training initiatives to build out the jobs pipeline, said Ed Castile, director of AIDT and Deputy Secretary of the Alabama Department of Commerce.

“Airbus has been an extraordinary partner as we work together daily to help change people’s lives,” Castile said when Airbus announced plans to add the A320 assembly line in May 2022. Alabama Department of Commerce

Read More

Manufacturer to invest $40M for new plant in Johnston County

Posted on by Michael Randle

One of the hottest counties in North Carolina is about to receive tens of millions of dollars in the form of a major economic development investment.

Wisconsin-based Scot Industries Inc., a supplier of tubing products, is investing at least $40 million to build a manufacturing facility on 77 acres in the Town of Four Oaks in Johnston County near the convergence of I-95, U.S. 301 and U.S. 701, according to a press release. The move will create 21 jobs with an average salary of more than $60,000.

Chris Johnson, economic development director for Johnston County, said in a statement Tuesday that the investment is due to Johnston County’s workforce, highway infrastructure and business-focused leadership. Triangle Business Journal

Read More

Nashville office construction pipeline among fastest growing in the US despite record-high vacancy

Posted on by Michael Randle

Nashville’s office construction pipeline is one of the fastest growing in the country, although there are signs that construction starts are slimming.

According to CommercialEdge’s National Office Report, Nashville has nearly 3.15 million square feet of office space under construction or 5.4% of its current office inventory — a rate that’s higher than the national average of 1.5%.

Nashville also ranks high, second in the U.S. behind Austin, in the amount of office space in the planning phase.

Around 14% of Music City’s existing office inventory is currently being planned and could be hitting the market in the next few years, according to CommercialEdge.

Although developers are still keen on office space in Nashville, many companies are cutting back on space to adapt to hybrid working conditions and save on costs. Nashville Business Journal

Read More

Technology Lab to invest $1.8 million, create 71 jobs in Nashville

Posted on by Michael Randle

Nashville-based Technology Lab today announced plans to invest $1.8 million to expand its services in the Greater Nashville region.

The investment will create 71 new jobs in Davidson County at the company’s headquarters off Cleveland Avenue, according to a news release from the state Department of Economic and Community Development.

“Tennessee, specifically Nashville, continues to lead the Southeast in headquarters, finance and tech growth, making this area the ideal location to support Technology Lab’s expansion,” said the department’s Commissioner Stuart McWhorter in the release. Nashville Business Journal

Read More

South Carolina achieves second-highest industry recruitment in 2023

Posted on by Michael Randle

The South Carolina Department of Commerce (S.C. Commerce) today released its 2023 industry recruitment results which reflect sustained economic activity. From January to December 2023, the state announced total capital investment of $9.22 billion, the second largest amount in state history. That investment represents 81 projects and 14,120 announced jobs.

“Once again, South Carolina has proven that it is among the best places in the world to do business,” said Gov. Henry McMaster. “Over the past year, our state proactively prioritized trends and topics that are crucial to maintaining a vibrant and competitive economy. Recording the second-highest year for industry recruitment in state history not only confirms the sustained interest for doing business here, but also signals to the global business community that South Carolina is a trusted partner for successful businesses.”

The announced capital investment of $9.22 billion includes major investments in the state’s two leading industry sectors by total investment, Automotive, Electric Vehicles (EV) and EV Batteries with $4.3 billion investment, and Alternative Energy and Fuels with $1.56 billion investment. Notably, in 2023, there were three announcements with investments of $1 billion or more — the highest such year in state history:

Scout Motors

Albemarle Corporation

QTS Data Centers

The previous record, of two projects with an investment of $1 billion or more in a single year, was set in 2014 and tied again in 2022.

“After a record-breaking 2022, South Carolina has remained committed to ensuring its long-term economic competitiveness and growing reputation as an established destination for transformational industry,” said Secretary of Commerce Harry M. Lightsey III. “Back-to-back years of strong industry recruitment reinforces South Carolina’s commitment to the success of our existing and new businesses, alike.”

To access the complete recruitment report, click here. For more details on the state’s announced economic activity, visit S.C. Commerce’s newsroom.

Read More

Mississippi investing nearly $17 million in site development

Posted on by Michael Randle

Jackson, Miss. (Dec. 27, 2023) – Governor Tate Reeves today announced the state of Mississippi is investing nearly $17 million in site development grants to further develop industrial sites throughout the state. The proposed projects represent Governor Reeves’ continuing commitment to attracting more opportunities for business development. The funding for these projects is being made available through the Mississippi Development Authority.

“Last year we brought in a record amount of new economic development, and these grants will help to continue Mississippi’s momentum,” said Governor Reeves. “These long-term investments are designed to create ideal opportunities where companies will find shovel-ready sites on which to build, grow and expand. This is key to our strategy of bringing more higher-paying jobs to local communities.”

MDA is committing $16,859,893.19 in Site Development Grant – Select Sites funding. Created in 2021, the Select Sites program was designed to increase the number of highly competitive industrial sites available to meet the needs of prospective companies. Greenville, South Carolina-based Strategic Development Group was contracted by the state’s electric utilities to evaluate 32 of its top publicly owned industrial sites. Of these sites, the following are being invited to apply for Select Sites funding, based on current funding availability:

Select Sites

  • Business and Technology Park North – Grenada County – $4,356,576 for grading at the park’s 200-acre rail-served site
  • Pearl River County Industrial Park – Pearl River County – $1,350,000 to extend the turn lane into the industrial park
  • I-59 Supply Chain Park – Forrest/Jones County – $2,340,924.19 to construct a secondary access road into the park
  • Mississippi Gulf Coast Aerospace Center at Gulfport-Biloxi International Airport – Harrison County – $50,000 to complete the master plan for the 240-acre site
  • I-59 South Industrial Site – Jones County – $881,350 to extend an all-weather access road and clear and grub additional acreage
  • Marion County AirPlex/IndustryPlex – Marion County – $420,000 to complete a master plan at the 2,000-acre site
  • Chickasaw Trail Industrial Park (Curl and Stamps Sites) – Marshall County – $1,113,853 to extend water and sewer lines and complete wastewater system improvements
  • Eagle One Mega Site – Forrest/Lamar County – $360,000 to identify conceptual treatment and disposal technologies to increase wastewater capacity at the site
  • East Metro Center (EMC) Industrial Park (EMC Rail Site) – Rankin County – $709,410 to complete a master plan, conduct pre-engineering work to extend water and wastewater lines, update environmental due diligence, conduct an ALTA survey and install signage.
  • I-20/I-59 Industrial Park – Lauderdale County – $685,800 for access road improvements
  • Martintown North – Union County – $1,623,600 for construction of an on-site elevated water tower and an underground electrical line
  • NorthStar Industrial Park – Oktibbeha County – $2,518,380 to construct a 200,000-square-foot building pad
  • Port Bienville Site #1 – Hancock County – $450,000 for a wastewater capacity study and pre-engineering to increase wastewater capacity

“These sites represent opportunities to strengthen the foundation of Mississippi’s business infrastructure and demonstrate how attractive Mississippi continues to be for new and growing companies,” said MDA Executive Director Bill Cork. “The Site Development Grant Program is an important part of the growing portfolio of advantages that make Mississippi an ideal place for business.”

Mississippi Development Authority

Read More

Gov. Beshear: State of the Commonwealth is stronger than it has ever been

Posted on by Michael Randle

FRANKFORT, Ky. — Delivering his annual State of the Commonwealth Address Wednesday night less than a month after being sworn in for a second term, Gov. Andy Beshear said “thanks to the strength of our people and our red-hot economy, the state of our commonwealth is stronger than it has ever been.”

Throughout the address, Beshear detailed the state’s strength and resilience by sharing stories of several Good Samaritans, helpers and heroes who attended the address, which included economic development leaders, teachers, health care heroes and first responders. To capitalize on the work Kentuckians are doing to make their communities better, the Governor said everyone must continue to come together to move the state forward by renewing investments in economic development, communities affected by natural disasters, education, infrastructure, health care and public safety. Lane Report

Read More

The American South Is Booming. Why Is Mississippi Left Behind?

Posted on by Michael Randle

TUPELO, Miss.—This city of about 38,000 in the northeast part of Mississippi highlights the challenges facing the South’s least populous state. Tupelo offers a charming downtown, tourist attractions and a low cost of living. It has an active local economic-development and job-training effort and is close to large state universities.

Yet even this place, far better off than other parts of the state—and a steady draw for tourists as the birthplace of Elvis Presley—is struggling to attract and retain workers. The area has lost population in recent years.

Read more at The Wall Street Journal

Read More

Texas’ Unique Energy Industry Is Helping the State Become a Renewables Leader

Posted on by Michael Randle

Texas leads the nation in clean and renewable energy production, and it’s largely due to its geography, federal energy subsidies, deregulated energy market and state-run energy grid.

Texas is one the leading US energy producers — and renewables are a big reason why.

Traditionally considered to be “oil country,” Texas continues to have a heavy fossil fuel presence in the state. Though it may not seem like the likeliest candidate on the surface, the state is a pioneer of clean and renewable energy production. Texas generated roughly 15% of the country’s electricity from all-renewable sources in 2022, according to the Energy Information Association.

While it was wind power that helped blow Texas to the top of the clean energy production charts, increased solar capacity in recent decades has helped its standing. Through 2022, Texas was the second-largest producer of solar energy behind California, according to data from the Solar Energy Industries Association.

Yet, the political pushback happening in Texas could play an outsized role on the future of renewable energy production in the state. While the growth over the past couple of decades is and has been rather remarkable — creating a model that many other states may try to replicate — it has been largely in part due to a unique combination of forces.

Texas’ unique geography, some changes to federal energy subsidies, and a unique mix of deregulated energy and state-wide energy grid, are just a few of the driving forces behind Texas’ developed renewable energy production. But shifts in political influence could change things.

Read more at CNET

Read More

Blue-collar workers won big in 2023, defying bleak predictions

Posted on by Michael Randle

A year that started out with bleak prospects, including a widely predicted recession, shaped up to be a boon for the average American worker — and one of the most triumphant for organized labor in a generation.

More than 525,000 workers in the United States walked off the job in 2023, according to Bloomberg Law’s database of work stoppages, making it one of the three biggest strike years since 1990. Many of those strikes led to big concessions from employers, such as the landmark deal reached by the UAW in October.

Employers agreed to pay more for workers because of a historically tight labor market, meaning it proved more economical to boost wages and benefits than to try to find new workers or risk losing current ones.

The unemployment rate, a key indicator of the labor market’s health, has remained below 4 percent for two years as of November, a stretch last accomplished in the 1960s. And hourly wage growth began to outpace inflation this spring after years of falling behind, boosting workers’ standard of living, especially the lowest earners. Read more at The Washington Post

Read More