Business Facilities - December 2007 - (Page 18)

COVER STORY 2007 Economic Development Deal of the Year Awards Mississippi Scores Toyota’s Eighth North American Manufacturing Facility Project Title: Toyota Motor Manufacturing Mississippi Entered By: Mississippi Development Authority Toyota’s Mississ ippi vehicle as sembly plant is under construction no w. o, y Barbour and Seiichi Sud Mississippi Governor Hale Motor Engineering and ident and COO of Toyota pres new plant the announcement of the Manufacturing, celebrate of the United States. a map by marking its location on A fter several months of arduous research, planning, and negotiations between Toyota and various government officials, Mississippi finally landed one of the largest industrial development projects for 2007—Toyota’s eighth North American manufacturing facility. The facility, which will produce the Highlander SUV, is being constructed on a 1,700-acre greenfield site in Blue Springs—a rural Northeast Mississippi village four miles from Tupelo. Toyota is investing a whopping $1.3 billion as a result of this new project, of which around $330 million will be invested in buildings, with the remaining $970 million to be used for equipment. On top of the sizable investment being made, the Blue Springs facility is projected to bring 2,000 direct jobs to the region when production begins in 2010. By its 26th year of operation, it is estimated that the Toyota project will have had an employment impact of nearly 10,000 direct, indirect, and induced jobs, with an annual total income of almost $640 million. Mississippi Governor Haley Barbour aggressively cultivated relationships with Japanese business leaders and courted investment opportunities from Japanese companies, helping to create a strong foundation for Mississippi to enter the competition DECEMBER 2007 for the Toyota project. Additionally, the state’s leadership at the legislative level was pivotal in gaining approval of incentive-related legislation necessary to help seal the deal. The state’s total investment in incentives for this project stands at around $136 million for public infrastructure and $80 million for training, on top of another $80 million for site preparation, among other things. “I was particularly impressed by the size of the project attracted, and Mississippi’s success in developing a comprehensive business support package in response to Toyota’s needs,” says Economic Development Deal of the Year Award judge Stuart MacKay, president, MMK Consulting. “In addition, so much of doing business with Japanese companies depends on establishing a trusting business relationship, and it is apparent that Mississippi has excelled in this regard.” In addition to the governor’s efforts, three Mississippi counties— Pontotoc, Union, and Lee—joined forces to form the PUL Alliance to help secure the Toyota project for the state. By forming this regional alliance, the region’s business professionals, community leaders, and local officials were able to work together seamlessly with state officials to be responsive to Toyota’s requests. “A great example of both leadership and teamwork,” notes Economic Development Deal of the Year judge Howard Silverman, president & CEO, The CAI Global Group, Inc. “As they say, the sum of the total is greater than its individual parts. This is clearly evident in the team of municipalities, counties, and state that worked together to close the deal. It also required leadership, which was provided by the governor. The individual ingredients formed the right formula for success.” PROJECT IMPACT ESTIMATES $7.5 million in economic output as a direct result of the project; $24.7 million indirectly; $17.2 million induced 2,000 direct jobs created; 5,178 indirect jobs; and 1,402 induced jobs $122 million in direct wages; $177 million in indirect wages; $28 million in induced wages Capital investment: $1.3 billion Impact area modeled: State of Mississippi, five-year time frame IMAGE PROVIDED BY COMMUNITY DEVELOPMENT FOUNDATION - TUPELO/LEE COUNTY; TOYOTA MOTOR MANUFACTURING MISSISSIPPI 18

Table of Contents Feed for the Digital Edition of Business Facilities - December 2007

Business Facilities - December 2007 Contents First Word Snapshots Metro Spotlight: Albuquerque, New Mexico Corporate Moves: North Carolina 2007 Ecomonic Development Deal of the Year Awards State of the Year Seeking Supply Chain Solutions Mississippi Means Business Corporate Moves: South Carolina Biomedical Momentum in Florida's High Tech Corridor Trends in Offshoring Metro Spotlight: Stillwater, OK Metro Spotlight: Atlanta, GA Advertiser Information 2007 Salary Survey

Business Facilities - December 2007

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