Construction is currently underway at Toyota?s Highlander vehicle assembly plant in Blue Springs, Miss. Production is expected to begin in 2010.

Although parts of the construction industry have leveled out, the industrial segment is not one of them. Never more apparent is this trend than in south-central United States. Possibly the most-notable industrial project underway in the region is the development of Toyota’s eighth vehicle assembly plant in North America.

The 2.4 million-square-foot facility is being constructed on a 1,700-acre site in Blue Springs, Miss. Toyota’s $1.3 billion project is being constructed by several south-central contractors including Harrell Contracting Group of Ridgeland, Miss., West Brothers Construction of Columbus, Miss., Yates Construction Co., of Philadelphia, Miss., and L&T Construction of Hernando, Miss. SSOE Inc., will provide the engineering and architectural services for the facility.

The new plant will turn out approximately 150,000 Toyota Highlander units per year and create 2,000 new jobs for the region. Production is expected to begin in 2010.

A strong manufacturing labor market in the region is one reason the south-central region is ideal for large manufacturing projects, says David Rumbarger, President/CEO of the Community Development Foundation. The foundation serves as the marketing arm of Mississippi’s first regional economic development alliance between Lee, United and Pontotoc counties.   

The site is uniquely located within access to what CDF refers to as “one of the highest concentrations of manufacturing employment in the South.” Within a 100-kilometer radius, the total work force is more than 276,500, with a manufacturing work force exceeding 77,000, most of which are non-union.

The alliance was formed in 2001 to actively locate a major automotive manufacturer in the northeast part of the state. The “megasite,” as Rumbarger calls it, was one of the last remaining parcels of land available for such a large-scale development. “There are not that many sites in the southeast left for this type of development,” he notes, “We felt like we had a very unique commodity.” In November of 2004, the alliance secured land options with the site’s 21 landowners, forming the 1,700-acre site. The land was purchased for a set price of $6,500 per acre.   

Industrial construction also serves as a catalyst for economic development because it attracts jobs and additional construction opportunities. As the plant nears completion, Rumbarger says additional housing will likely be needed to support a population influx. “It’s going to be an interesting dynamic,” he says. “We’re just beginning hiring for Toyota.”

Overall, Rumbarger says, northeast Mississippi’s residential market has remained strong. Housing starts in the tri-county area increased 24 percent in the last 12 months, and, because the region has not suffered from the foreclosure rates that other parts of the country have, he believes market will continue its upward trend.

“If you’re going to draw people into the region, you have to have the housing starts,” Rumbarger says. “We are talking with some syndicated real estate agencies about getting some starter-track homes in the area. I anticipate that we’ll continue to have a 20 to 25 percent increase in housing starts because of the potential increase in workers.”

ZOM’s Residential Mix
Multifamily development in other metropolitan areas in south-central United States is still stimulated by a strong population. Residential developer ZOM Inc. has two multifamily developments in the works in Houston and Austin, Texas. The Le Maison on Revere in Houston is a 423-unit development with a mix of flats and high-end lofts, featuring granite countertops, upgraded appliances and master suites. Construction of Le Maison is expected to begin in August 2008.

ZOM is also developing a similar multifamily concept in Austin called The Monarch. This 305-unit, 29-story high-rise tower will feature 9,000 square feet of street-level retail and luxury amenities. The Monarch is located near Austin’s central business district, the Texas State Capitol and the University of Texas.

Oklahoma Byways
As the industry grows and attracts a broader work force, infrastructure in the region will have to keep up. In January, the Oklahoma Department of Transportation announced that the Federal Highway Administration approved more than $980,000 in federal grant money – more than any other state in the region – for the state’s byways program, including 11 projects.

Funds will be spent on projects that will improve some 400 miles of Route 66; improve parts of Talimena Scenic Drive between Mena, Ark., and Talihina, Okla.; create a geological plaza and visitor center along the Wichita Mountains Scenic Byway.; and enhance the Cimarron Heritage Trail byway on US-64.

Energized Outlook
Energy development is also making strides in the south-central region. Syntroleum Corporation, Louisiana Governor Kathleen Babineaux Blanco and Dynamic Fuels LLC recently announced that Geismar, La., will be the site for Dynamic Fuels’ new $135 million plant in which it will produce renewable diesel and jet fuel. The facility will have a capacity of 5,000 barrels per day and is scheduled for completion in 2010.

Dynamic Fuels LLC is a joint venture between Syntroleum Corporation and Tyson Foods Inc. The venture was developed to construct and operate multiple renewable synthetic fuel facilities.

Dynamic Fuels selected Lion Copolymer’s Geismar plant as the site for its facility. The plant will have a capacity of 75 million gallons per year and will utilize Syntroleum’s Biofining technology and feedstock supplied by Tyson Foods Inc.

In a press release, Governor Blanco said, “I want to thank Dynamic Fuels for choosing Louisiana to create high-paying technical jobs and making the capital investment necessary to employ this new proprietary technology. This decision will allow even more Louisiana agricultural by-products to be converted into premium value-added products.”

According to the Louisiana Economic Development Council, the plant is expected to employ 45 people with a payroll of about $4 million.