"Industrial development trends in the Biloxi/Gulfport, Mississippi, area are characteristic of our geographic location on the Gulf of Mexico," says Michael Olivier, executive director of the Harrison County Development Commission in Gulfport. These trends include several chemical and marine metal fabricating companies locating in the area, most of which require multi-modal access offered by the area's ports and rail/highway combinations. "In addition, we have seen growth in the plastics industry and a clustering of suppliers around existing employers like DuPont and Oreck Manufacturing. The Mississippi Coast continues to have manufacturing employment higher than the U.S. average due to these assets."

Industrial activity on the Mississippi Coast is represented by the Wellman project, a manufacturer of PET resin and polyester fiber. Wellman currently employs over 250 people and has invested over $300 million in the region. DuPont recently completed a $20 million expansion at its titanium dioxide plant, bringing total employment to over 700 people and over 300 contract employees. Chevron has also completed a $50 million expansion.

The location of Cingular Wireless' 700-person call center sparked a $12 million renovation of a vacant Wal-Mart and offered new employment opportunities for service industry workers, military personnel, college students and retirees. The development of an aerospace technology park at Stennis Space Center continued with activity at Lockheed Martin's Advanced Propulsion, Thermal and Meteorology Center and Boeing's engine assembly facility. Other business sectors have also seen significant growth, especially the casino resort industry, which is celebrating its 10th anniversary on the Mississippi Coast. The 12 operating casino resorts represent over $3 billion in capital investment and employ over 16,000 people.

"The majority of industrial development and other business activity has taken place in the area's industrial parks," says Olivier. The Mississippi Coast has nine industrial parks, three ports, three airports and a Foreign Trade Zone. The Biloxi/Gulfport area is home to the area's largest industrial park -- the 1,700-acre Bernard Bayou Industrial District. This park includes both heavy and light industrial users. The area'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 facilities, and research and development operations.

"Rental rates for available buildings range widely in the market, from $1 per square foot and up, depending on location and condition," Olivier notes. "While no comprehensive database exists to measure industrial vacancy rates, commercial vacancy rates are an indication of market activity. Overall commercial Gulf Coast vacancies as of year-end 2001 measured between 8 and 9 percent. Class A vacancy rates 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."

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. Additionally, 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.

"Prospects for industrial development on the Mississippi Coast suggest that the Gulf Coast will maintain its leadership position in having a high percentage of its workforce engaged in manufacturing and distribution," Olivier notes. "Project potential from South America and Europe is high, as foreign national companies seeking to access the U.S. market see potential in a Gulf Coast location, with significant amenities that include a foreign trade zone, deepwater ports and international airport, complemented by interstate, U.S. highway and railway access. Mississippi Coast's diversified economy has domestic companies interested in the area as an expansion location. Gulf Coast manufacturing employment is projected to remain above the national average."

Michael J. Olivier, C.E.D., F.M., is executive director of the Harrison County Development Commission.


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