Business representatives paint glowing picture for 2007|[11/16/06]
Published 12:00 am Thursday, November 16, 2006
The economic outlook for 2007 in Warren County is a rosy one, according to the seven-member panel who addressed the November member lunch for the Vicksburg-Warren County Chamber of Commerce on Wednesday.
Addressing Chamber members were Jim Pilgrim, executive director of the Warren County Economic Development Foundation; J.E. “Brother” Blackburn Jr., president of Blackburn Chrysler, Dodge, Jeep and Blackburn Nissan; Phillip Clendenin, chief executive officer of River Region Health Systems; Alainna O’Bannon, association executive of the Warren County Board of Realtors; Jerry Hall, a vice president with Trustmark National Bank; Margaret Gilmer, manager of Vicksburg Factory Outlets; and Don Arnold, manager of customer relations for Entergy in Vicksburg.
“The manufacturing sector is strong and expanding,” Pilgrim said, adding the situation in Warren County is actually bucking the trend nationally.
He said the most active sectors of the industrial market looking here are in the alternative fuel, modular or mobile homes and the distribution sectors. As evidence to the strength of those sectors he pointed to the recent groundbreaking for the Ergon ethanol fuel plant, a planned expansion at DTE Petcoke operation of the E.W. Haining Industrial Center and Harcross Chemical’s leasing of part of the old Vicksburg Chemical property for a distribution center for specialty fertilizers and other products.
Those expansions and construction projects, Pilgrim said, should bring more than 500 new jobs to the area for the next 18 months to two years.
“I’m biased,” Blackburn joked introducing his comments on the transportation industry. “For most people a car is their second largest investment.”
The auto industry will have some $104 million in sales for 2006 and contribute about 20 percent of the sales taxes collected in Warren County, he said. Also, he said, new car sales here are up about 10 percent from 2005.
“Our sales are up 47 percent,” he said.
The dealership moved from its old location on Washington Street to two new buildings on North Frontage Road this year.
Industrywide, car makers will face a challenge in 2007, Blackburn said, because they have more manufacturing capacity than they need.
“It will be a buyer’s market in 2007,” he said.
River Region is adding new technology, Clendenin said.
“We are getting a new, 64-slice” CT scanner, he said. “That means it does 64 (image slices) for every rotation.”
That technology gives doctors the capability of diagnosing many illnesses at earlier stages.
“That should be operating by Jan. 1,” he said.
Clendenin said River Region is working hard on keeping qualified nurses at River Region in spite of the national shortage. Part of that effort is what he described as “very competitive” salary and benefit packages. Another part is a program with Hinds Community College that allows employees to earn associate’s degrees in nursing and with Alcorn State University to earn bachelor’s degrees while still working.
The residential real estate market is also bucking the national trend, O’Bannon said. “In 2004 we sold 500 units and in 2005, we sold 600.”
She said the market should remain strong in this area even with a shortage of homes in the $130,000 to $200,000 range, but, she said, there are several new developments and expansions of older ones under way or in the works. Among those she mentioned are a new development on Old Highway 27 and the expansions at Cobblestone and Pear Orchard.
Although he said it is virtually impossible to predict what interest rates will do, Hall said, “The Federal Reserve rates will remain unchanged with a possible cut.”
The Vicksburg Factory Outlets is doing well, Gilmer said, especially in the shrinking market for outlet centers. Just a few years ago, she said, there were about 500 across the nation and now there are about 200.
She also said the number of manufacturers has shrunk, also.
She said November represents nearly 10 percent of the local center’s business for the year and December is nearly 13 percent.
There are two sources of good news in energy, Arnold said.
“How many of you heard this was supposed to be a very active year for hurricanes?” he said.
The National Hurricane Forecast Center predicted eight to 10 hurricanes in 2006 with three to four in the major category. There were fewer than 10 named hurricanes or tropical storms reported in the Atlantic this year.
That means, Arnold said, good news for energy consumers in lower fuel adjustment costs because there have been fewer disruptions in the flow of natural gas which accounts for about 60 percent of Entergy’s generating capacity in Mississippi. Since the company evaluates its fuel adjustments quarterly, that could mean it could be lowered in early 2007.
The second bit of good news is also related to hurricanes, specifically Katrina, Arnold said. The cost of restoring Entergy’s distribution system following the storm was $89.1 million in Mississippi.
“The (federal) government has given (Entergy) an $81.4 million community development block grant,” he said.
The remainder of the cost will be covered with a low cost loan from the State of Mississippi.