Business Facilities - February 2009 - (Page 18)

“It’s all about eco-friendly, greenfriendly cars right now—hybrids, allelectric cars, some hydrogen cars— it’s all about energy efficient and safer cars,” says Bob McKenna, president and CEO, Motor & Equipment Manufacturers Association. So while the economic slide is heavily affecting the automotive industry, there still are areas with room for growth. “Hybrid power trains are more and more prevalent, and the key component to that is the battery, but also there’s a lot of other components that are being developed such as the parts that shift between the gas power and the electric source,” says Hill. “So manufacturing of hybrid components is a new growth area. And there’s a lot of room to make the combustion engine more fuel-efficient. I think V8s are going to go away and smaller engines will be made more powerful instead. I also think smaller cars like the Honda Fit and the use of lightweight materials like plastics and aluminum are growth areas. These materials reduce weight but still retain that real structural integrity so that they’re strong cars that don’t fold up in an accident.” Efficiency is what it’s all about, not only with cars themselves but also with any new facilities that are being built. “In terms of opportunities in the auto industry, even though many of the older facilities have been closed down, there are new plants being built that are more efficient and adaptable to the current ways of producing cars. Instead of making one big plant to build all the parts of one car, a plant can be built to build four or five different platforms of car,” says McKenna. Where those facilities are going to be built also is a volatile topic, because although GM chose to build its newest facility in Michigan, long considered to be the home of the auto industry, and Honda built its facility in Indiana, the majority of new automotive plant announcements in the past decade (especially those being built by foreign manufacturers) are in the Southern states. “There are a couple of plants on the drawing board. Where the car companies build their assembly plants is where our members, the manufacturers who supply all the products and parts for the vehicles, put their new plants, because 70% of [parts for] all new vehicles are supplied by outside companies to the car companies and then the car companies design them and assemble them,” says McKenna. “And most of those plants are being built in the South [in right-to-work states]. There’s one being built in the southwest corner of Georgia, and there’s one in Chattanooga and there’s a BMW plant in Spartanburg, South Carolina. Several plants have been put in Alabama, Kentucky and Tennessee. However, one of the most successful plants is north of Columbus, Ohio, it’s a big Honda facility, which is counter to that thinking. I wouldn’t want to say it’s just because of the unions, it’s probably due to a lot of things. But most of the foreign manufacturing plants are not unionized and they are looking for right to work states.” Tough times call for innovative solutions, so if you’re looking for the locations ready to do what it takes to lure your next automotive site to their community, then read on. Mississippi: Can-Do Attitude Delivers for Auto Industry The automotive industry has been hit hard and headlines continue to forecast tough economic times. In the current economic climate, companies must make strategically sound decisions to guarantee ongoing success. With a reputation for on-time/under-budget project management along with flexible, customizable incentives, Mississippi offers some major advantages for business investors. Add in a skilled workforce, educational capacity for industry and a location with access to the world’s major markets, and it becomes clear what Mississippi can offer businesses in the automotive sector and related industries. Mississippi is home to more than 90 automotive manufacturing, distribution and supplier companies. These include Nissan, PACCAR, Toyota, BMW, Mazda, Caterpillar, Delphi Research and development programs, like the Center for Advanced Vehicular Systems near the Nissan plant in Canton, MS, offer the latest high-tech research tools for the automotive industry. A-2 A S P E C I A L A D V E RT I S I N G S E C T I O N O F B U S I N E S S FA C I L I T I E S A N D WA R D ’ S A U T O W O R L D PHOTO CREDIT: COURTESY OF MISSISSIPPI DEVELOPMENT AUTHORITY

Table of Contents Feed for the Digital Edition of Business Facilities - February 2009

Business Facilities - February 2009 Contents First Word Snapshots Corporate Moves: Ohio Governor's Report Growth Magnets Industry Focus: Automotive International Report: Luxembourg Corporate Moves: Tennessee Cream of the Crop in North Carolina Advertiser Index Ask the Expert

Business Facilities - February 2009

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