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Document #43223 1 August 1995, Site Selection

Slicing through some of

the country’s hottest facili-

ty-location territory,

Interstate 85 has become a

veritable magnet for new

manufacturing, distribu-

tion and office operations.

In fact, the five states

along the I-85 corridor

Alabama, Georgia, North

Carolina, South Carolinaand Virginia landed

almost 5,000 new and

expanded facilities during

the past five years.

Question: What has four or more

lanes, is 652 miles (1,049 km.) long,

and cuts through the heart of some

of the most popular facility-location territo-

ry in the United States?

Answer: Interstate 85. Beginning in

Montgomery, Ala., the storied route tours

through northern Georgia, northwestern

South Carolina and the heart of North Car-

olina before ending just south of Richmond,

Va. (see accompanying map).

In terms of corporate facility location, I-85

is not the road less traveled. In fact, compa-

nies have been practically stampeding to the

I-85 corridor. Conway Data’s exclusive New

Plant database shows that the five states

along the corridor landed almost 5,000 new

and expanded manufacturing plants, offices,distribution centers and other facilities from

1990 to 1994 (see accompanying charts).

What’s the draw? I-85, like many inter-

state highways, is itself a location attraction.

But there’s much more to this successful

region than asphalt. Good business climates,

a positive labor environment, excellent air

transportation links, free customized worker

training and competitive financial incentives

are just a few of the strengths that have con-

vinced many U.S. and international compa-

nies that the I-85 corridor is the place to be.

“I-85 cuts through states that have some of the best business climates in the country,”

says Dennis Donovan, senior managing

director of The Wadley-Donovan Group, a

corporate-location and information-services

consulting firm based in Morristown, N.J.,

USA. “Those states have a long-standing

tradition of maintaining a good business cli-

mate.”

Not only have the I-85 corridor states

landed thousands of facilities in the past few

years, they’ve also won some of the most

hotly contested U.S. site competitions. Some

examples include BMW’s $625 million auto

plant, which located near Spartanburg, S.C.,

and United Parcel Service’s 1,000-employ-

ee headquarters facility, which located in

Atlanta (see accompanying chart of the larg-

est new and expanded facilities along the I-

85 corridor from 1990 to 1994).

In another significant trend, large num-

bers of international companies continue

to immigrate to sites along the I-85 corridor

(see the accompanying chart). For instance,

North Carolina (with 160 facilities) and

South Carolina (with 109 facilities) collec-tively snared 24 percent of all new and

expanded U.S. facility investments by glob-

al (e.g., non-U.S.) firms during the past five

years.

Here’s more on the business boom

blooming along the I-85 corridor.

I-85 Communities: ‘We’ve Got It!’“We’ve got what you’re looking for!”

claims a promotional booklet from the

Greensboro (N.C.) Area Chamber of

Commerce. Easy interstate access, a thriv-

ing business environment, affordablehousing and well-educated workers are

The I-85 Corridor:

America’s BoomingBusiness Beltby Tim Venable

© Conway Data, Inc. No part of this document may be reproduced without express writ ten permission from the publisher.

For More InformationIf you would like more information on

the states featured in this article, please

call GeoFax, Conway Data’s compre-

hensive fax-on-demand research service,

at 1-404-453-4200 (USA). Order reports

using the numbers below. (Some of these

reports require a small fee charged to

your credit card.)

For a free menu of all availablereports, request document #1234.

• Alabama: #19010.

• Auto Axis: #42588 and #43065.

• Georgia: #19110.

• North Carolina: #19340.

• South Carolina: #19410.

• Virginia: #19470.

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just a few of the location strengths tout-

ed.

Indeed, bustling communities along I-

85 like Greensboro, Atlanta, Charlotte,N.C., Spartanburg, S.C., and many others

simply have what site-seeking compa-

nies are looking for. Location is certain-

ly not least among those assets.

“Proximity to key industries and mar-

kets is a prime location concern for com-

panies,” says Dr. Yorgos Papatheodorou,

economist and industry analyst with

engineering and corporate-location con-

sulting firm Lockwood Greene. “Many

facilities today are placed in the eastern

part of the United States, simply because

two-thirds of the U.S. market is east of the Mississippi River. Increasingly, com-

panies are choosing the southeastern

region.”

Good vo-tech schools, sound infra-

structure, easy transportation access and

attractive financial incentive programs

are also strengths of the I-85 corridor.

And the region has a wide range of small-

to medium-sized communities that are

well-prepared for economic develop-

ment yet not far from big metro areas.

“It’s also relatively easy to relocate tal-

ent to that area,” Donovan says. “It’s gen-erally easier to relocate management

people there. One of the challenges,

though, is the tightening labor market in

parts of those states. Some communities

are really being pressed to provide qual-

ity labor at prevailing wage rates. One

thing that must be done is to concentrate

heavily on providing basic skills training

for the heretofore unemployed.”

Reasonable overall operating costs

also help the I-85 states stay competitive

in the hunt for corporate facility invest-

ments.

“Average hourly wages in the South-

east are significantly lower than in some

other regions of the country,” Papath-

eodorou says (see the accompanying

chart).

What’s more, prime industrial land

generally is cheaper along much of the I-

85 corridor than in many other parts of

the USA, and there’s still plenty of it left.

LARGEST IN INVESTMENT MILLIONS OF U.S. DOLLARS

1. BMW: Greer, S.C.; automobiles, new ......................................................................................6252. Glaxo: Research Triangle Park, N.C.; pharmaceuticals, expansion .........................................4503. Philip Morris: Cabarrus Cnty., N.C.; tobacco, expansion .......................................................4004. Fuji Photo Film: Greenwood, S.C.; color photographic paper, new .......................................2505. General Electric: Greenville, S.C.; gas turbines, expansion....................................................1505. Hitachi America Ltd.: Greenville, S.C.; television picture tubes, new...................................1507. Novo Nordisk Biochem: Franklinton, N.C.; enzymes, expansion...........................................1258. Hitachi Ltd.: Norcross, Ga.; television picture tubes, new.....................................................1049. BASF Corp.: Clemson, S.C.; nylon carpet fiber, expansion ....................................................1009. Duracell Corp.: Mebane, N.C.; rechargeable batteries, new...................................................1009. Fuji Photo Film: Greenwood, S.C.; videotapes, new ..............................................................1009. General Electric Plastics: Burkville, Ala.; engineered plastics, expansion...........................1009. Hoechst Celanese: Greer, S.C.; polyethylene terephthalate resin, expansion.........................1009. Timken Co.: Asheboro, N.C.; highly engineered bearings and alloy steel, new ....................100

15. Fieldcrest Cannon: Phenix City, Ala.; towels, new.................................................................. 9015. J.M. Huber Co.: Crystal Hill, Va.; oriented strand board, new ................................................ 9017. Fieldcrest Cannon: Columbus, Ga.; towels, expansion............................................................ 8818. Harris Microelectronics: Research Triangle, N.C.; electronics, expansion............................. 8018. Robert Bosch Corp.: Anderson, S.C.; automobile oxygen sensors, new................................. 8018. Sara Lee Corp.: Ware Shoals, S.C.; textiles, new..................................................................... 80

LARGEST IN EMPLOYMENT EMPLOYEES1. BMW: Greer, S.C.; automobiles, new ...................................................................................4,0002. First Union Corp.: Charlotte, N.C.; credit-card processing, new.........................................2,5003. AT&T: Atlanta, Ga.; telecommunications, new ....................................................................2,0004. Signet Bank: Richmond, Va.; bank operations center, new ..................................................1,800

5. Hewlett-Packard Co.: De Kalb Cnty., Ga.; computers, new................................................1,4006. General Motors Corp.: Doraville, Ga.; minivans, expansion..............................................1,2006. Glaxo: Research Triangle Park, N.C.; pharmaceuticals, expansion ......................................1,2008. Pepsico: Winston-Salem, N.C.; customer service center, new ..............................................1,0008. SAS Institute: Cary, N.C.; software, expansion....................................................................1,0008. United Parcel Service: Atlanta, Ga.; headquarters, new ......................................................1,000

11.USAir: Charlotte, N.C.; aircraft maintenance complex, new ....................................................95012.Motorola: Lawrenceville, Ga.; battery packs, new ...................................................................90013.Hayward Pool Products: Clemmons, N.C.; swimming pool products, new............................80013.Schlegel Corp.: Wentworth, N.C.; weather stripping, new .......................................................80014.Tolaram Polymers: Asheboro, N.C.; textiles, new...................................................................77515.AT&T: Conyers, Ga.; data center, expansion ............................................................................70015.Hitachi America Ltd.: Greenville, S.C.; television picture tubes, new....................................70015.T.J. Maxx: Charlotte, N.C.; clothing, new ................................................................................70018. Roadway Package System: Clayton Cnty., Ga.; package distribution, new ...........................675

19. Philip Morris: Cabarrus Cnty., N.C.; tobacco, expansion .......................................................66019. State Farm Mutual Auto Insurance: Duluth, Ga.; auto insurance processing, new................65019. Duracell Corp.: Mebane, N.C.; rechargeable batteries, new...................................................650

LARGEST IN FLOOR AREA THOUSANDS OF SQ. FT. (SQ. M.)1. Glaxo: Research Triangle Park, N.C.; pharmaceuticals, expansion............................1,500 (139)1. K Mart Corp.: Greensboro, N.C.; distribution, new................................................. 1,500 (139)3. Publix Supermarket: Lawrenceville, Ga.; distribution and dairy processing, new.. 1,200 (111)4. Wal-Mart Stores: Sutherland, Va.; distribution, new.................................................1,000 (93)5. Hayward Pool Products: Clemmons, N.C.; swimming pool products, new.................810 (75)6. Black & Decker: Fort Mill, S.C.; distribution of hand tools and appliances, new.........776 (72)7. Michelin Tire Corp.: Laurens, S.C.; tires, new..............................................................700 (65)7. Nestle S.A.: McDonough, Ga.; food products, new........................................................700 (65)9. Whirlpool Corp.: Morrow, Ga.; household appliances, new.........................................656 (61)

10. Liz Claiborne: Montgomery, Ala.; clothing, new ..........................................................650 (60)11. Dar/Ran Furniture Industries: Archdale, N.C.; furniture, new...................................620 (58)

12. Ford Motor Co.: Henry Cnty., Ga.; auto parts distribution, new...................................600 (56)12. Hewlett-Packard Co.: De Kalb Cnty., Ga.; computers, new.........................................600 (56)12. T.J. Maxx: Charlotte, N.C.; clothing, new......................................................................600 (56)15. SAS Institute: Cary, N.C.; software, expansion.............................................................580 (54)16. USAir: Charlotte, N.C.; aircraft maintenance, new ........................................................551 (51)17. Polo-Ralph Lauren Corp.: High Point, N.C.; clothing, new.........................................540 (50)19. Hitachi America Ltd.: Greenville, S.C.; television tubes, new .....................................522 (48)20. First Union Corp.: Charlotte, N.C.; credit card processing, new ..................................500 (46)20. Food Lion: Salisbury, N.C.; grocery distribution, new...................................................500 (46)20. Plantation Patterns: Wadley, Ala.; wrought-iron furniture, expansion.........................500 (46)20. Sara Lee Corp.: Ware Shoals, S.C.; textiles, new..........................................................500 (46)20. United Parcel Service: Atlanta, Ga.; package delivery, new .........................................500 (46)20. Wachovia Corp.: Winston-Salem, N.C.; banking headquarters, expansion ..................500 (46)

Top 20 Facilities Along the I-85 Corridor, 1990-94


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“There’s still room for expansion

along the I-85 corridor,” Papatheodorou

says. “It’s not congested yet. It hasn’t

reached anything like a limit on itsgrowth.”

Alabama: Lots of ActivityOn I-85’s Southern End

I-85 begins its journey northward from

Montgomery, Ala., the birthplace of the

U.S. civil rights movement and, increasing-

ly, the home of major corporate facilities.

In fact, Alabama landed 858 new and

expanded facilities during the past five

years. That earned Alabama the No. 6 rank-

ing among U.S. states.

Significantly, some of the biggest facili-ties locating in Alabama in the past few

years have chosen sites along I-85. Field-

crest Cannon, for instance, chose Phenix

City, Ala., for a new $90 million towel plant.

And clothing leader Liz Claiborne is build-

ing a $23 million, 400-employee clothing

distribution center in Montgomery. The

facility is adjacent to a 650,000-sq.-ft.

(60,385-sq.-m.) distribution center the com-

pany opened in 1993.

“We’ve found Montgomery to be excep-

tionally friendly to business,” says Kenneth

Ganz, Liz Claiborne’s senior vice president

for distribution. “Not only is it the best place

for us to do business, it also offers an out-

standing quality of life for our employees.”

Computer manufacturer Miltope Group

also recently chose Montgomery, moving

its headquarters and about 200 jobs there

from suburban New York City. Miltope

President and CEO David Lengel says the

company chose Montgomery because of

the city’s quality of life, its pro-business

environment and quality work force. Mil-

tope, which makes computers and related

equipment, expects the move to save about$4 million per year.

Georgia: Tops for NewCorporate Headquarters

As I-85 exits Alabama, it speeds ahead

into Georgia toward the route’s most fre-

quently chosen city for high-profile corpo-

rate headquarters relocations during the past

five years: Atlanta.

Overall, Atlanta bagged 398 new and

expanded facilities from 1990 to 1994, earn-

ing the No. 3 ranking among U.S. metro

areas. And Atlanta’s 129 new manufactur-ing plants earned it the No. 2 ranking nation-

ally.

“Most of the recent investment in Geor-

gia has been in light industries and services,”

Papatheodorou explains. “The most impor-

tant assets Georgia has are transportation

and other support services. Most interna-

tional companies locating in Georgia cite

Atlanta’s air links as one of the most impor-

tant reasons for coming there. You won’t

find much heavy manufacturing in Atlanta,

but there are lots of headquarters and region-

al headquarters operations. Those facilitiesneed good transportation connections to the

rest of the country and the world. UPS is a

good example.”

UPS’ relocation from Connecticut is just

one of several headquarters Atlanta has

managed to wrest from its competitors. Hol-

iday Inn, automaker Saab and the relief

group CARE also recently picked Atlanta

for headquarters operations.

Georgia’s capital city has enjoyed heady

success in landing corporate headquarters,

but other types of facilities also are finding

the area’s transportation and other location

attractions convincing. Some recent high-

profile examples include Ford Motor Co.’s

600,000-sq.-ft. (55,740-sq.-m.) auto parts

distribution center in Henry County; Road-

way Package Systems’ 675-employee

package distribution center in Clayton

County; and Publix Supermarket’s 1.2 mil-

lion-sq.-ft. (111,480-sq.-m.) grocery distri-

bution and dairy processing facility in

Lawrenceville.

While Atlanta is clearly the dominant

location in Georgia on I-85, other areas of

the state are crafting success stories of theirown. Georgia landed a total of 804 new and

expanded corporate facilities from 1990 to

1994.

South Carolina: The ChoiceFor Heavy Manufacturing

Heading northeast from Atlanta, I-85

crosses the South Carolina border and cuts

across the northwestern region (e.g., “up-

state,” in the local vernacular) of the Pal-

metto State. Led by the Greenville-Spartan-

burg-Anderson metro area, the I-85 corridor

of South Carolina has attracted hundreds of new and expanded corporate facilities in

recent years.

In fact, more than a third (232) of South

Carolina’s 667 new and expanded corpo-

rate facilities from ’90 to ’94 went to the

Greenville-Spartanburg-Anderson metro

area. And Greenville-Spartanburg-Ander-

EXECUTIVE SUMMARY Site-seeking companies have been

flocking to the I-85 corridor in recent

years. Conway Data’s exclusive NewPlant database shows that Alabama,

Georgia, North Carolina, South Carolina

and Virginia landed almost 5,000 new

and expanded manufacturing plants,

offices, distribution centers and other

facilities from 1990 to 1994.

Global firms apparently feel very

much at home along the I-85 corridor.

For example, North Carolina and South

Carolina together landed 269 new and

expanded facilities by global (e.g., non-

U.S.) firms from 1990 to 1994. That’s

almost 24 percent of all U.S. globalfacility investments during the five-year

period.

Good business climates, a positive

labor environment, excellent air trans-

portation links, free customized worker

training and competitive financial in-

centives are just a few of the strengths that

have convinced many companies to

place facilities along the I-85 corridor.

New Facilities and Expansions

I-85 Corridor States, 1990-94

1. North Carolina .......................1,891

2. Alabama....................................8583. Georgia.....................................804

4. Virginia......................................762

5. South Carolina..........................667

U.S. average (median): ..............226

Source: Conway Data’s New Plant

database.

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son’s 83 new factories during that five-year

period took the No. 8 ranking among U.S.

metro areas.

“South Carolina has attracted a lot of

manufacturing companies, with BMW the

most high-profile example,” Papatheodor-ou says. “In particular, there have been lots

of new companies in chemicals and fibers.

Why do they come to South Carolina?

Apart from lower labor costs, the state has

been giving targeted incentives that include

specialized training. One of the biggest rea-

sons BMW chose South Carolina is the

state’s free customized industrial training.”

So many German companies have put

down business roots in northwestern South

Carolina that one stretch of I-85 has been

dubbed “the Autobahn.” The roll of inter-

national corporate citizens there is long andimpressive: BASF, BMW, Fuji, Hoechst

Celanese, Michelin and others.

Spartanburg County, with less than 7 per-

cent of the state’s population, nonetheless

accounted for more than 11 percent of South

Carolina’s corporate capital investment and

jobs during the last 10 years. Its $522 mil-

lion in capital investment led the state in

1994.

“Obviously, we are extremely proud of

Spartanburg’s accomplishments,” says Paul

Foerster, 1994 Chairman of the Board of

Directors of the Spartanburg Area Chamber

of Commerce. “Our economic develop-

ment program has long been one to set the

standard in the state. We have been in the top

five counties in capital investment every

year for at least 10 years, and we have led the

state in job creation in seven of the past 10

years.”

Just a few miles away from Spartanburg,

Greenville, S.C., also continues to land its

share of new facilities.

“A lot of our success has to do with labor

force,” says Jerry Howard, vice president for

economic development with the GreenvilleChamber of Commerce. “In fact, the entire

area of upstate South Carolina has a skilled

labor force.

“There’s no question that the interstate

has had a major positive impact on what

we’ve been able to do in economic develop-

ment. Our geography is a big advantage.

We’re roughly halfway between Miami and

New York, two of the largest markets on the

east coast. I-85 gives us access to raw mate-

rials and markets and people. And we’re not

far from ports, which is very important to

international companies. The Port of Charleston is the largest container port on

the East Coast, and most of its business

comes from the upstate of South Carolina.”

North Carolina: ‘King of theRoad’

With apologies to the late singer/song-

writer Roger Miller, North Carolina seems

to be the real “King of the Road.” That’s

because the Tar Heel State alone landed 42

percent of the largest new and expanded

facilities along the I-85 corridor from 1990

to 1994.

What’s more, North Carolina recorded

some 1,891 new and expanded facilities

during that five-year period, earning it the

No. 2 ranking among U.S. states. Its 160

new and expanded global facilities from ’90

to ’94 were more than in any other state.

“I’d say there are two main factors that

are helping North Carolina land new com-

panies,” Papatheodorou says. “One of them

is the state’s financial strength. Charlotte, for

instance, has become one of the major bank-ing centers in the country. The other is its

research capabilities, centered around the

Research Triangle Park.”

Charlotte, in fact, landed 474 new and

expanded facilities from 1990 to 1994

more than any other U.S. metro area except

Dallas.

Terry Orell, vice president for economic

development with the Charlotte Chamber of

Commerce, says I-85 is an important cog in

the wheels that drive the city’s burgeoning

economy.

“I think access is definitely one of thekeys to our recent success,” he confirms.

“That access is a combination of air service,

telecommunications and highway sys-

tems. When national and international

companies recognize that nearly 70 percent

of the U.S. market is east of the Mississippi

River, they very often consider this area as a

potential location. Our road network of I-85

and its connection with I-77 provide very

easy transportation access to the Midwest,

the Mid-Atlantic and the Southeast. Our

two-hour reach by air covers that entire area,

and our 24-hour truck reach does too.“Charlotte is the 11th-largest distribution

center in the country. We’re also the third-

largest financial center in the whole country

and the largest in the South. There’s a very

strong pro-business atmosphere here, and

the quality and cost of living are considered

New Manufacturing PlantsI-85 Corridor States, 1990-94

1. North Carolina...........................631

2. Georgia......................................3173. South Carolina...........................2754. Virginia.......................................2275. Alabama....................................215

U.S. average (median): ................83

Source: Conway Data’s New Plant database.

New/Expanded Global FacilitiesI-85 Corridor States, 1990-94

1. North Carolina............................1602. South Carolina ...........................1093. Georgia ........................................594. Virginia .........................................485. Alabama.......................................32

U.S. average (median): .................10

Note: Global facilities are those ownedby non-U.S. firms.

Source: Conway Data’s New Plant database.

Hourly Manufacturing WagesI-85 Corridor States, 1993

1. North Carolina.........................$9.801. South Carolina...........................9.80

3. Georgia....................................10.084. Alabama..................................10.365. Virginia ....................................10.85

U.S. average (median): ............11.73

Note: Figures shown are state averagesfor manufacturing production workers.

Source: U.S. Bureau of Labor Statis- tics, Employment and Earnings, May 1994.

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outstanding.”

Just north of the Charlotte area is Rowan

County, tapped recently for new facilities by

corporate giants such as Freightliner Corp.,Hitachi Metals, Hoechst Celanese and

Reynolds Metals. Plans to expand the

Rowan County section of I-85 to eight lanes

will further boost the county’s location

appeal.

Providing room for companies to grow is

also a priority in Rowan County. A new

500-acre (203-hectare) industrial park is

being developed along I-85.

“The park will be designed to appeal to

manufacturing and distribution firms seek-

ing a more competitive location,” says

Harry C. Whalen, executive director of theSalisbury-Rowan Economic Development

Commission.

Farther north and east along I-85’s path

through North Carolina, the 12-county

Piedmont Triad region (including Greens-

boro, Winston-Salem and High Point) con-

tinues to attract lots of corporate interest. In

fact, new and expanding businesses invest-

ed about $633 million there in 1994. United

Parcel Service’s new 750-employee,

98,400-sq.-ft. (9,141-sq.-m.) customer ser-

vice communications center in High Point

is among the larger facilities recently mak-ing headlines in the region.

Greensboro is a thriving business com-

munity. But it has little traffic congestion,

thanks to the city’s long history of carefully

planning infrastructure needs.

“Local leaders have not been afraid to

move on projected road requirements,” for-

mer Greensboro mayor Jim Melvin says.

“We’ve anticipated transportation and high-

way needs and seen to it that Greensboro

has one of the best thoroughfare systems of

any major city in the country.”

That foresight in laying infrastructure is

now paying big dividends. New and

expanding businesses invested some $768

million in their Greensboro facilities from

1990 to 1994, creating more than 10,500

jobs.

Virginia: Motorola ChoosesI-85’s Northern Reaches

Leaving North Carolina, most of I-85 is

now in the rear-view mirror. But it cuts a 63-

mile (101-km.) swath through southern Vir-

ginia before ending just south of Richmond,

the state capital.Richmond is yet another example of a

bustling city along the I-85 corridor. Greg

Wingfield, president and CEO of the

Greater Richmond Partnership, confirms

that interstate access has been a boon to his

community.

“I think our location along I-85 is one of

our most important locational strengths,”

he says. “We’ve got a great geographic

location equidistant from Miami and

Boston. But if we didn’t have I-85, I-95

and I-64, we couldn’t take proper advan-

tage of it.”It’s abundantly clear that companies

have taken full advantage of the location

attractions in Richmond afforded by those

interstate routes. In fact, the Richmond

metro area landed more than 700 new fac-

tories and offices during the past 10 years.

Those facilities represent a capital invest-

ment of more than $2 billion.

As significant as those accomplish-

ments are, even greater things are in store.

That’s because a site in suburban Rich-

mond recently was chosen by elec-

tronics giant Motorola for a $3 billionsemiconductor manufacturing operation

that might eventually employ 5,000 (see

“Global Overview” elsewhere in this

issue for more details).

“The Motorola project is a whole new

platform for us to build on,” Wingfield

says. “That’s one of the things we’ll be

touting as we promote our location on I-

85.” SS

43223(3)

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