California newspaper publishes op-ed:

“Why California should be more like Alabama — seriously”

In the winter quarter, Tom Manzo, president of Timely Industries and founder of the California Business and Industrial Alliance, penned an opinion piece that was published by the Orange County Register. Manzo cited the Toyota-Mazda plant that was announced in January that will be built in Huntsville, Ala. “California has a well-earned reputation of being business unfriendly, and according to one analysis has lost over 1,700 companies in the past decade” (to other states), Manzo wrote. “Fifteen states were competing for the Toyota-Mazda joint venture; California was not even on the bench”(for the project).

“Yes, our climate is great — but talented young professionals can find great culture and a great food scene in Birmingham just as well as Berkeley. They can also afford to live there,” Manzo continued. (The median home price in Alabama is $126,500. It is just under $500,000 in California).

Manzo finished his op-ed with this: “As the state legislature returns to Sacramento for a new session, my hope is that they’ll choose to be less like themselves — and more like Alabama. The future of our state’s small and mid-sized businesses depends on it.”

 

Fed sees economy beyond full employment

The Federal Reserve’s February monetary policy report to Congress showed that the U.S. economy is now beyond full employment. New Fed Chair Jerome Powell said, “Although there is no way to know with precision, the labor market appears to be near or a little beyond full employment at present.” The assumption of being “beyond full employment” was quickly dashed later in the month as the economy created 313,000 jobs.

Birmingham had the largest jobless rate decrease last year

The largest unemployment rate decrease among the 51 largest metro areas in the U.S. occurred in the Birmingham-Hoover, Ala., metro. Birmingham saw a 2.4 percent decrease in its jobless rate between December 2016 and December 2017.

Birmingham named No. 1 metro area for healthcare jobs

The Birmingham-Hoover, Ala., metro area was named the No. 1 market in the U.S. for healthcare jobs according to a study done by ABODO. According to the report, Birmingham has the highest concentration of healthcare jobs such as physicians, surgeons, lab technicians, dentists and physical therapists among the top 50 metros in the country.

Recent data shows influx of new residents in the South

U.S. Census data that came out in the winter quarter showed a huge influx of new residents in the South from other states outside the region. Between July 1, 2016 and July 1, 2017, the South added 1.24 million additional residents, well above the second fastest growth region in the West with a population increase of 765,672 people. The Midwest saw meager gains of only 201,183. The Northeast saw an increase of just 111,221 residents.

Top five inbound and outbound U.S. states

According to North American Moving Services, the top five outbound household states in 2017 were Illinois, Connecticut, New Jersey, California and Michigan. The study also ranked the top inbound states based on household moves, which were Arizona, Idaho, North Carolina, South Carolina and Tennessee. 

Half of all new U.S. jobs last year were created in just five states

According to the Bureau of Labor Statistics, California, Texas, Florida, New York and Georgia captured 51 percent of new job growth in the U.S. last year. The five states are home to about 36 percent of the U.S. population.

WSJ says Dallas is the best place for Amazon’s new headquarters

In January, The Wall Street Journal chose Dallas as the No. 1 place for Seattle-based Amazon’s second headquarters. “A large tech labor force, and middle-of-the-road ranks for nearly everything else, places Dallas at the top of our ranking,” the publication wrote. Amazon has narrowed its site search to 20 cities for the $5 billion, 50,000-job project.

Kentucky’s Bourbon Trail still a big hit

For the second consecutive year, more than 1 million people visited 23 distilleries that make up the Kentucky Bourbon Trail. In 2017, the tourism attraction saw 1.194 million visitors, a 12 percent increase over 2016.

Kentucky’s economy is killing it

In 2017, more than $9 billion was invested in Kentucky, the most ever. The Commonwealth also set a record for exports for the second consecutive year, topping the $30 billion mark for the first time. And FDI in the state is contributing as well — about 20 percent of announced projects in the state were foreign-owned, which accounted for 23 percent of the new jobs announced in 2017. 

Charlotte-based Electrolux puts major investment on hold due to tariffs

Swedish appliance manufacturer Electrolux announced it will put a $250 million investment in its plant in Springfield, Tenn., on hold as a result of President Trump’s tariffs on steel and aluminum. In January, Electrolux announced it was adding new equipment and 400,000 square feet of space to the plant to increase capacity.

South Carolina sets export record, again

For the eighth consecutive year, South Carolina set a record for exports in 2017. In February, it was announced that the Palmetto State exported a total of $32.2 billion worth of goods and services. The figure is almost a three percent increase from 2016.

Texas population passes 28 million

In 2017, Texas added almost 400,000 new residents, surpassing the 28 million mark. Texas is the second most populated state behind only California. Texas grew by 1.4 percent in 2017, the seventh fastest growing state in the U.S. At 2.2 percent, Idaho was the fastest growing state last year.

U.S. manufacturers are fired up

Unprecedented optimism from manufacturers in the U.S. has been the theme since 2010, when the word “reshoring” was apparently invented. But the latest Manufacturers’ Outlook Survey for the fourth quarter of 2017, done by the National Association of Manufacturers, rose to unprecedented heights. Of those taking the survey, 94.6 percent say they are positive about their own company’s outlook. It is the highest optimism level in the study’s 20-year history.

Dallas-Fort Worth leads U.S. in jobs and job growth

The Dallas-Fort Worth metro area had both the highest job growth rate and the most jobs added in calendar year 2017 among large U.S. metros. According to the Bureau of Labor Statistics, DFW added 100,400 jobs in 2017, and local non-farm employment rose by 2.8 percent. In terms of job growth rate, Phoenix, Boston, Atlanta and Miami followed Dallas-Fort Worth. Also, Dallas and Houston added the most manufacturing jobs in 2017 with a net gain of 8,800 for both markets.

Skilled and unskilled labor hard to find

According to a recent report from the RSM Middle Market Leadership Council’s fourth-quarter survey, 72 percent of companies are struggling to some or to a great extent to find skilled labor. We all know that. But here is the number to watch: 42 percent of companies are also finding it difficult to find unskilled labor. That number is surely to increase with a cut in immigration and an increase in deportations.

The healthcare industry just became the nation’s largest employer

In 2017, the healthcare sector became the largest industry employer in the nation, surpassing the previous No. 1, retail. In 2000, there were 7 million more workers in manufacturing than in health care. Today, there are almost 13 million manufacturing workers, and health care employs just over 16 million workers. The retail sector currently employs just under 16 million workers.

The South lands more top performing cities than any other U.S. region

The Milken Institute’s annual “Best Performing Cities 2017” came out in the winter quarter and Provo, Utah claimed the No. 1 spot. Making the top 10 in the South were Raleigh (2); Dallas-Plano-Irving (3); Northport-Sarasota-Bradenton (6); Orlando (7); Nashville (8) and Austin-Round Rock (9). San Francisco and Salt Lake City also made the top 10.

Atlanta airport world’s busiest for 20th consecutive year

For the 20th year, the Hartsfield-Jackson Atlanta International Airport was the world’s busiest in 2017. For the second consecutive year, Atlanta’s airport served over 100 million passengers, the only airport in the world to do so.

Orlando Airport begins construction of $2.1 billion terminal

As Orlando International Airport tries to keep up with passenger growth, its main focus this year is construction of a new terminal that will rank as one of the most costly public works projects ever in Central Florida. The $2.1 billion job, which has recently begun, will employ a peak force of 2,200 workers for a scheduled completion in three years.

Texas pumping record oil with fewer workers

Texas broke a record in oil production in 2017, but did it with 25 percent fewer employees than in the previous peak in 2014, according to the Texas Petro Index. As of the end of the year, oil jobs in Texas totaled about 222,600, accounting for 54 percent of the 413,400 oil jobs in the U.S.

U.S. to be net energy exporter by 2022

According to the Energy Information Administration, the U.S. will export more energy products than it imports by 2022, a full four years sooner than expected. The report claims that the export of U.S.-mined natural gas and oil remains robust, and that production from the nation’s shale fields will continue to grow.

U.S. could become the world’s largest oil producer this year

Rapid increases in U.S. oil production as a result of higher prices have the U.S. poised to surpass output totals of Russia and Saudi Arabia this year. According to the International Energy Agency, U.S. crude production could exceed 10 million barrels a day at some point in 2018.

Exxon Mobil announces $35 billion in U.S. investments 

The world’s largest publicly traded oil company plans to invest an additional $35 billion in the United States over the next five years. Darren Woods, chairman and CEO of Exxon, said the investment is partly due to recently passed corporate tax cuts. Exxon will be investing billions to increase oil production in the Permian Basin in West Texas and New Mexico, which comes on top of a massive build-out of operations along the Gulf Coast. New projects are expected to create thousands of jobs.

Film production returns to “Hollywood South”

After seeing a 90 percent drop in film production in Louisiana after lawmakers there revised its Motion Picture Tax Credit Program in 2015, films are again being shot in Louisiana, dubbed “Hollywood South.” Lawmakers again revised film tax credits in the summer of 2017 to once again attract the industry.

Memphis-based FedEx to invest $3.2 billion 

After Fred Smith recently hinted that FedEx would likely be “responsive to the tax bill,” the company has officially released its response. The Memphis-based FedEx said it will spend more than $3.2 billion on wage increases, bonuses, pension funding and capital investment. It will also invest $1.5 billion to significantly expand its hub in Indianapolis and modernize and enlarge its Memphis SuperHub. The Memphis facility has also just announced it will be hiring an additional 800 workers.

SmartAsset singles out Alabama micropolitan

SmartAsset, a financial technology company, rated the best places in the U.S. for manufacturers in the winter quarter. According to the study, the best place for manufacturing in the U.S. is the Talladega-Sylacauga Micropolitan Statistical Area. The area is home to about 93,000 people and the micropolitan area consists of Talladega and Coosa counties. Approximately 39 percent of the employees there work in manufacturing. Coming in second in the study was the Greenville-Anderson-Mauldin, S.C., metropolitan area.

Manufacturing unemployment at record low

While the overall unemployment rate continues to hover around 4 percent, the manufacturing sector has never seen its unemployment rate lower than the 2.6 percent it achieved in January. The rate ties the record low from December 2000.

Manufacturing hiring tops 1 million since 2010

With 31,000 new net hires in December, the manufacturing sector has now added over 1 million new jobs since the end of the recession in the summer of 2009. 

Georgia’s new cybersecurity campus will grow

The budding cybersecurity center on the outskirts of downtown Augusta is set to dramatically expand before the first phase is even completed. Gov. Nathan Deal recently broke ground on a $35 million addition to the cybersecurity campus, which is to be built a few steps from the $60 million centerpiece that is still under construction. Why build a second phase when the first one still hasn’t been completed? “Demand, demand, demand,” Deal said, adding that the state was flooded by requests from government agencies and private contractors for more space after he announced the first phase last year. The Augusta area is staking a major claim on the growing cybersecurity field. More than 40,000 Georgia residents now work in the field, including about 13,000 in the Augusta area.

Alabama exported a record amount of goods

Alabama exported $21.7 billion in goods in calendar year 2017, a six percent increase over the previous year. Alabama exports have grown by 21 percent since 2011.

Louisville ranked “coolest city” by Forbes

Forbes ran a story titled “The 10 Coolest U.S. Cities to Visit in 2018,” and the writer, Ann Abel, admitted that Austin, Nashville and New York should be on the list. Yet, Abel picked out cities that are not on everyone’s list. She polled high-end travel designers about their favorite domestic destinations other than the obvious. Louisville, Ky., topped the list for its Southern hospitality and its food and drink culture. Savannah, Richmond and San Antonio also made the top 10 of cities in the South. 

Little Rock leads 10 best cities for first-time homebuyers

LendingTree ranked the top 10 cities for first-time homebuyers and a handful of Southern cities made the list. Little Rock ranked No. 1, followed by Birmingham at No. 2. Winston-Salem checked in at No. 5.

Big win in Missouri 20 years ago comes to a close

One of the most sought-after projects in the South in the late 1990s is coming to a close. Wisconsin-based Harley-Davidson is closing its motorcycle assembly plant in Kansas City, Mo. The plant opened in 1998. Production is being shifted to the company’s York, Pa., plant. The closing affects about 800 workers in Kansas City.