Biloxi-Gulfport, Mississippi, is making significant inroads in the international manufacturing arena, with small- to medium-sized United Kingdom manufacturers that are looking for U.S. locations, according to Brynn Joachim, marketing manager with the Harrison County Development Commission.

In the last year, Future Pipe Industries and Corus Bi-Steel each announced a new project in the steel and metal fabrication arena. Future Pipe Industries, a pipe manufacturer with operations in Europe, the Far East and the Mideast, announced its decision to locate in Gulfport in November 2002, and announced expansion plans in September 2003 — prior to groundbreaking. The new plant will triple in size to 140,000 square feet, over two phases, with a capital investment of $14 million and creation of 300 jobs. Corus Bi-Steel announced that it will locate in neighboring Pascagoula and invest $25 million in a new manufacturing facility, creating an additional 300 jobs. “The region’s labor force and location near major oil and gas producers and industrial clients were factors in their decisions,” Joachim explains.

The region’s manufacturing base still has deep roots in shipbuilding, metal fabrication and the chemical industry. However, growth continues in new areas like the plastic injection molding, polymer science and composites industries. Northrop Grumman is in the midst of a $64 million modernization program at its Gulfport facility and is recognized as a Center of Excellence in the composite industry. Oreck Manufacturing in nearby Long Beach continues to be a leader in the floor care industry, but recently was named a Tier II supplier for the new Nissan facility in Canton to produce interior plastic accessories and auto components, such as door handles.

The majority of industrial development has taken place in the area’s county-owned industrial parks. The Biloxi-Gulfport area is home to five industrial and commerce parks, with plans for a sixth on the way in Northern Harrison County. The area’s largest industrial park — the 1,700-acre Bernard Bayou Industrial District — is home to both heavy and light industrial users with interstate, rail and deep-water access. The region’s newest park, the 107-acre Biloxi Commerce Park, is growing as a medical and office park, and is being marketed to other users such as call centers, information processing, and research and development operations. A new technology incubator is also in development west of Gulfport to leverage applications in development at Stennis Space Center and other R&D operations.

To build on a strong existing industry base, the region is targeting the following clusters: medical (surgical/ medical instruments and supplies); plastics (bottles, pipes, injection molding products); transportation (all-terrain vehicles, small electronic vehicles, personal watercraft, equipment, motor vehicle parts); and services (back office operations, call centers, information processing, and research/development/testing operations).

While no comprehensive database exists to measure industrial vacancy rates, commercial vacancy rates are an indication of market activity. Overall commercial Gulf Coast vacancies were measured between 7 and 8 percent as of second quarter 2003. Class A vacancy rates were measured at 7 percent, while Class B buildings remained virtually at capacity with less than 1 percent available. Class C space offers numerous redevelopment opportunities with a 16 percent vacancy rate. Depending on location and condition, rental rates for available buildings range widely in the market — from $1 per square foot and up.

Two available industrial buildings of interest include the former Ameriserve building, a 133,251-square-foot chilled warehouse and food distribution facility, and the Three Rivers facility, a 36,150-square-foot former steel fabrication facility located in Foreign Trade Zone #92.

Import/export activity will continue to grow through the Mississippi State Port at Gulfport, which recently shipped its first goods to Cuba, and continues to trade heavily with Latin America and Russia. In addition, growth in the plastics and injection molding industry will continue to grow with the opportunity to supply materials to the new Nissan plant in Canton, Mississippi.

“The future of industrial development in the Biloxi-Gulfport area remains bright with prospecting activity in Europe and Latin America,” says Joachim. “The Gulf South region continues to be a cost-effective location for international companies seeking to locate in the United States, and the Biloxi-Gulfport area offers significant amenities such as a large, trained labor force; limited union activity; a deep water port; international airport; foreign trade zone; and extensive rail and highway systems.”

©2003 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.