SouthPoint Mississippi Industrial Park impact
The Greater Grenada Partnership is on a roll.
Between Milwaukee Tool opening its largest facility in America in Grenada last fall, Hollingsworth Companies, the largest non-urban industrial real estate developer in the Southeastern U.S, breaking ground in April in the SouthPoint Mississippi Industrial Park, and Modine Manufacturing Company (NYSE: MOD) announcing the expansion of Grenada operations in mid-May, new investments from just those three companies topped $4 billion and came with the creation of an estimated 3,750 jobs.
“To win takes a lot of different things,” said Gov. Tate Reeves, of the city located midway between Jackson and Memphis, “but I’ll tell you this, there aren’t very many communities that are winning like this.”
Matthew Harrison, CEO, President, and Executive Director of the Greater Grenada Partnership, Greater Grenada Area Chamber of Commerce, and the Greater Grenada Foundation for Economic Development, bragged on staff and county leaders. “I can’t do what I do without them,” he said. “This is a team effort.”
But if truth be told, Grenada’s top economic developer, who recently was certified as an Economic Development Master Practitioner, has hit many home runs in his 20-year-plus career. All total so far, he’s been involved in collaborations that have attracted more than 12,000 jobs and more than $20 billion in capital investment.
When he joined the chamber in November 2017, Harrison’s focal point in business relationship management was to help bridge the gap between Grenada County and the manufacturing sector.
“My background in manufacturing has allowed me to effectively bridge the needs of potential clients with our local government leaders,” he explained. “This is a critical role, as government and manufacturing often operate differently, think differently, and serve different stakeholders. It’s essential to bring both sides together to find solutions that deliver optimal results while protecting the interests of all involved, especially the broader community.”
In Grenada County since January 2018, 15 industrial projects have been initiated, resulting in the creation of 5,638 new jobs and an infusion of $1.29 billion in new capital investments. Another 14 new projects are expected to be announced, creating another 2,500+ new jobs, bringing the total committed job creation to more than 8,100. These projects are estimated to generate more than $16 billion in annual economic impact.
What’s more: there’s only been one plant closure during the same period, and it was a consolidation that resulted in no loss of jobs, said Harrison.
“The average medium income in the county has steadily increased, from $34,000 to $47,000, with projections to meet or exceed the state average,” he said. “Average wages in the community have increased to $42,927, with average manufacturing wages increasing to $51,771.
“As a matter of fact, we don’t have an active project with wages less than $65,000 in average salaries. For example, the Modine announcement showcases 450 new jobs with salaries from $55,000 to $65,000+,” he said.
At least 35% of the workforce in Grenada County is employed in at least one area of the manufacturing industry. These latest and forthcoming announcements should increase to 45% over the next five years, said Harrison.
“Noteworthy is the Grenada railroad project,” said Harrison, “which fetched over $200 million in revenue, supports 11,000 regional jobs, and facilitates the movement of over $1 billion in goods and services.”
More than $46 million in grant funds have been raised to build the industrial park and industry base. A key point: with $1 billion GDP (Gross Domestic Product), the manufacturing sector has contributed 30.7% to the county’s GDP. “We’re targeted 45 to 50% of GDP,” he said.
The Advent of SouthPoint Mississippi Industrial Park
On April 29, as Hollingsworth executives broke ground on the $300 million, 1,200-acre SouthPoint Mississippi Industrial Park located adjacent to the Milwaukee Tool plant, construction workers were busy turning dirt on two spec facilities to be ready within a year.
When completed, the park will have more than 2 million square feet of industrial space in 14 strategically designed buildings, creating an estimated 2,500 jobs, with a $4 billion direct economic impact. “With a multiplier of four, the total impact could reach as high as $16 billion,” said Harrison.
“This industrial park will provide move-in-ready space for manufacturers and distributors seeking to scale their operations in a business-friendly environment,” said Joe Hollingsworth, CEO of The Hollingsworth Companies. “Mississippi’s strong workforce, competitive cost structure, and central location make it an ideal destination for industrial growth.”
Hollingsworth acquired 170 acres of the industrial park for $15,000 per acre but all 1,200 acres are under contract. The company plans to use Tax Increment Financing, which reallocates newly generated tax revenues as companies grow.
The company has clients lined up that cannot yet be announced, said Harrison.
“We have an agreement in place that 80% of the clients must be manufacturers, and 20% can be used for distribution or warehousing with approval,” he said.
The industrial park lies on the inside edge of the Mississippi Delta. Located on the western-central side of the community, near the Yalobusha River and just south of Grenada Lake, the acreage was used as a cotton field for generations before the recent industrial announcements.
“The SouthPoint Grenada Industrial Park represents a major milestone for our community in expansion opportunities, job creation, and economic vitality,” said Grenada County Board of Supervisor’s President Chad Bridges.
The Hollingsworth Companies has 125 tenants and 21 million square feet of industrial space across 18 states. The company specializes in developing and leasing Class-A industrial facilities and attracting high-value tenants. The Grenada project is Hollingsworth’s first one in Mississippi.
On the heels of the industrial park’s groundbreaking, Modine Manufacturing Company (NYSE: MOD), a global leader in thermal management technology, announced a $38 million upgrade at its 1 million square foot facility located on 51 South in Grenada to manufacture data center cool equipment.
Grenada’s victory streak began with Milwaukee Tool, its billboard for success along Interstate 55. Opened last fall, Milwaukee Tool’s largest manufacturing plant in America represents $60 million in investment, a 500,000-square-foot facility, and the creation of jobs for more than 800 people from eight surrounding counties.
Milwaukee Tool has manufacturing, distribution and assembly facilities in Greenwood, Jackson, Olive Branch and Clinton, having invested more than $209 million in expansion in Mississippi over the last seven years.