ABB 2006/7 | State Profiles | South East region | Mississippi | Profile

Mississippi is on the move and we’re ready to help your business be more profitable than ever before. Mississippi offers a strong, supportive business climate, where the cost of doing business is low and many tools the resources are available to help your business compete in today’s economy. As the global marketplace becomes more and more integrated, Mississippi is positioning itself to be a true contender in the ever-expanding world economy.

Approximately 82 foreign companies, representing more than 21 countries, have more than 119 affiliates located in Mississippi. We are also very active in the global marketplace on the export side. Total exports for Mississippi in 2005 were just over $4bn, which was an $828m increase over total 2004 exports. Top export markets include Canada, Mexico, Belgium, Saudi Arabia and the UK. The most popular products and services included vehicles, chemicals, electrical machinery, machinery and wood pulp.

In 2005, Mississippi exports to Europe totalled $784m. European companies such as BAE Systems, Rolls-Royce, EADS, Faurecia, Zodiac Group, Siemens and ThyssenKrupp call Mississippi home. So what can Mississippi offer your business?

Pro-Business climate

Recent passage of the Gulf Opportunity Zone Act of 2005 has created yet another opportunity for businesses locating in the state to take advantage of all that Mississippi has to offer corporate clients. The GO Zone Act promotes investment by the private sector in the Gulf Coast rather than embarking on state- or publicly-funded building campaigns. The magnitude of the available incentives and the modified qualification requirements mean these benefits are available to a broader range of participants for a broader range of projects. It is critical to consult financial, investment and legal experts to understand the details of this legislation, and how it applies to individual tax entities.

With the creation of Momentum Mississippi, new economic development legislation is now in place to enhance the incentives available to businesses locating in the state. This legislation focuses on economic development incentive programmes – new programmes were created, existing programmes were modified and increased funding levels were obtained. Some of those economic incentive programmes provide income tax credits for job creation, investment, retraining of employees and for research and development activities. For example, the Mississippi Advantage Jobs Incentive Program provides quarterly incentive payments based on a percentage of withholding to qualifying companies for up to 10 years, which provides an important cash benefit to new firms locating in the state. Cities and counties can offer a property tax exemption for qualifying projects.

The Tort Reform Act of 2004 is another important element of the business climate in Mississippi. This act ensures fairness in the courtroom for Mississippi businesses, with provisions that address joinder and venue; innocent seller protection; and non-economic damages caps. Now, Mississippi is not only a smart choice for your business; it’s also a fair one. Mississippi businesses also receive important support from government leaders from the local, state and federal levels. The state’s congressional delegation holds leadership positions on a number of key committees, including the Armed Services Committee, the Appropriations Committee, the Energy and Commerce Committee, and the Homeland Security Committee.

Transportation

The ability to move raw materials in and finished product out to market is essential to success. Mississippi’s identified mega-sites offer both highway and rail access, in addition to access to key ports along the Gulf Coast and the state’s navigable rivers. Mississippi’s highway system ranks among the four best in the country and the best in the southern United States. Interstate 55, which runs north and south, provides access to major markets like Chicago, St. Louis, Memphis and New Orleans, while Interstates 10 and 20, running east and west, provide access to Atlanta, Birmingham, Dallas and Los Angeles.

Education

The state boasts a total of eight public universities, 13 private colleges and universities, and 15 community colleges. The University of Southern Mississippi, located in Hattiesburg, is a national leader in the area of polymer science, with one of the top programmes in the United States. The premier Polymer Research Institute also includes one of the most advanced rapid prototyping systems in the world. In addition, the University of Mississippi offers a pultrusion technology programme, and Mississippi State University has a wood products laboratory that provides training important to the plastics/polymer industry.

Workforce

Mississippi’s labour force of 1.3 million workers is very reliable, with a low 3% absenteeism rate and only a 5% turnover rate. This reliability and stability help ensure the success of any business located in the state. In addition, labour costs in Mississippi are among the lowest in the nation, which helps hold down the overall cost of doing business in the state.

Targeted industries

Mississippi recently completed an in-depth analysis of more than a dozen industry sectors, including: Aerospace/Aviation; Automotive Assembly; Automotive Suppliers; Contact Centres; Remote Data Centres; Defence/Homeland Security; Fabricated Housing/Housing Components; Food Processing; Metal Fabrication/Steel; Plastics/ Polymers/Chemicals; Shared Services Centres; Shipbuilding; Timber/Wood Products; and Warehousing/Distribution. Through this research, the state has studied every possible need and interest associated with these industries and is ready to demonstrate how Mississippi can provide a profitable location for any business. By compiling the 14 market profiles, the state has addressed the myriad concerns that your business will have when considering a location in Mississippi.

Quality of life

In addition to the many advantages for your day-today business operations, consider the quality of life waiting for your employees in Mississippi. The cost of living here is 10% lower than the national average. And Mississippi’s medical facilities, including one of the nation’s best medical schools, offer leading edge medical technology. And don’t forget about entertainment; Mississippi has over 300 annual festivals, more than 35 national and state parks, museums around every corner and over one million acres of hunting country and 5,000 acres of fishing waters.

Recent success story

The SeverCorr project was the largest industrial project announced in the US in 2005, with a projected investment of $850m for construction of a 1.2 million sq ft facility. But it will join Nucor Steel and almost 300 other steel and metal fabrication facilities that have already forged a great future in Mississippi and who employ almost 15,000 workers. Additionally, employees at the SeverCorr facility will have an average annual salary of $70,000, thanks in part to Mississippi’s skilled, dedicated and productive workforce. SeverCorr’s major investment in Mississippi demonstrates the state’s ability to meet corporate needs in a pro-business environment.

Mississippi has realigned our economic development incentives to encourage higher paying jobs in growing sectors of the economy; enacted what The Wall Street Journal called the most comprehensive tort reform law in the country; and overhauled our workforce training programmes. Combined with the federal tax incentives of the Gulf Opportunity Zone Act, there has never been a better time to invest in Mississippi.

For more information, contact:
Melissa Medley, CME
Director of Communications & Marketing
501 N. West Street
Jackson, MS 39201
Tel: 001 601 359 3155
Fax: 001 601 359 3596
E-mail: comms@mississippi.org
Website: www.mississippi.org

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