We Power Business Contact
Share
Share on Twitter Share on Facebook Share on LinkedIn Share via Email

Automotive Manufacturing

Jump to a Key Industry

Arkansas, Louisiana and Mississippi are prime locations for the automotive industry, offering a business-friendly environment where auto manufacturers and their suppliers can operate successfully.

This area of the Southeast has the capacity to provide key resources for the auto industry: a skilled workforce, Right-to-Work laws, access to raw materials, transportation networks, proximity to markets, and affordable energy.

A testament to the business opportunity in this region is the successful 2014 launch of the new Nissan Murano, built in Canton, Mississippi. Meeting all the quality standards, this high-tech crossover vehicle rolled off the assembly line only a short distance from customers in major U.S. markets. The Canton plant is a global facility equipped to build a variety of car and truck models and is established as a hub for expanding exports of the Murano to more than 100 markets.

Download Case Study

Job Growth in the Automotive Cluster

Entergy Region on Track to Outpace U.S. by 9.3%

*Source: EMSI 2015.3

 

Commitment to Industrial Expansion in the Region:

Entergy’s $5 Million, 5-Year Workforce Readiness Initiative Launches in 2016


 

  • Entergy Workforce Training Grants for improving the quality of the existing talent pool through development or expansion of programs that produce trained, certified workers.
  • Entergy School-to-Career Readiness Grants for improving the talent pipeline by ensuring that students graduate from high school with the necessary skills to transition successfully to career or college/secondary training.

6

Class 1 Rail Lines

11

Major Interstate Highways

The Entergy Region is the Gateway to U.S. and Global Auto Markets

Mississippi

Change in Job Growth in the Automotive Manufacturing Cluster from 2014-2019

Mississippi on Track to Outpace U.S. by 14.8% by 2019

*Source: EMSI 2015.3

Workforce

  • Average wages in Entergy Mississippi territory are more than 30 percent lower than the U.S. and nearly 36 percent lower in the manufacturing industry.
  • Mississippi is a Right-to-Work state.
  • The Entergy Mississippi area’s workforce is nearly 600,000 strong, with 10 percent employed in manufacturing.
  • Nearly 8,000 workers are employed in automotive manufacturing in the Entergy Mississippi territory.
  • The Center for Advanced Vehicular Systems at Mississippi State University conducts research, engineering design and development and technology transfer.
  • Mississippi is home to automotive manufacturers Nissan and Toyota.
  • More than 150 transportation equipment manufacturing-related establishments are in Mississippi.

Raw Materials

  • Three steel plants are located in Mississippi and four additional plants are located near the state line.
  • Nearly 50 plastics and rubber manufacturers are located in Mississippi.

Transportation

  • Mississippi has 28 rail systems, including the following Class 1 carriers: Burlington Northern Railway, CSX Transportation, Canadian National Railway, Kansas City Southern Railroad and Norfolk Southern.
  • Bordering the state of Mississippi to the west, the Mississippi River begins in Minnesota and runs more than 2,000 miles south to the Gulf of Mexico.
  • Six ports are located within the Entergy Mississippi territory with access to the Mississippi River.
  • The Port of Memphis is located in adjacent Shelby County, Tennessee.
  • The Mississippi ports include the Port of Rosedale, Port of Greenville, Yazoo County Port, Port of Vicksburg, Port of Claiborne County and the Natchez-Adams County Port.
  • Mississippi’s highway system connects to essential regional markets including New Orleans, Memphis, Nashville and Atlanta with six interstates and 14 federal highways.
View Automotive Manufacturing Incentives in Mississippi

Louisiana

Business Climate

  • Louisiana is ranked as one of the best business climates:
    • #1 for incentive programs
    • #1 exporting state in the country
    • Best-performing state economic development agency
    • Lowest state/local tax burden in the U.S. for new manufacturing projects
    • Lowest business tax structure for capital-intensive manufacturing and labor-intensive manufacturing facilities (Tax Foundation/KPMG study)
  • Industrial utility rates are among the lowest in the South.
    • Second-lowest industrial electricity rates in the South (2012-2015 avg.)
    • Lowest industrial natural gas rates in the South (2012-2015 avg.)
  • Louisiana has been a right-to-work state for over 30 years –
    • with one of the 15 lowest unionization rates in the country,
    • a private workforce unionization rate of only 3.8%, and
    • no requirement for employees to join a union at their place of employment, even if the facility is unionized.

Workforce

  • LED FastStart® has ranked as the nation’s best state workforce training program for the past six consecutive years.
  • Comprehensive, customized recruitment, screening, training development and training delivery are offered through LED FastStart® – all at no cost.
  • LED FastStart® staff has delivered customized workforce solutions for a variety of automotive companies – GM, Honda, Ford, Kia, Suzuki, Yamaha, Pirelli, Toyo Tires, Kubota, Mahindra.
  • Skilled workers for the automotive sector are available from a statewide manufacturing workforce of 800,000.

Education

  • Public postsecondary institutions near the Franklin Farm site:
    • University of Louisiana at Monroe
    • Louisiana Tech University
    • Grambling State University
    • Seven campuses of the Louisiana Delta Community College System

Logistics Advantage

  • Louisiana’s robust logistics options provide convenient access to North American markets.
    • Six interstate highways form a well-positioned grid with access to water and rail connections from all six.
    • Louisiana’s extensive port system forms the gateway to 35 interior states through the Mississippi River system and to worldwide markets through the Gulf of Mexico.
    • Louisiana has six Class 1 railroads and 2,700 miles of track.
  • The state’s strategic low-cost location serves the Southern Auto Corridor and Mexico.
  • An extensive OEM and supplier network are accessible within the Southern Auto Corridor.
View Automotive Manufacturing Incentives in Louisiana

Arkansas

Workforce

  • Arkansas is a Right-to-Work state.
  • The statewide average hourly wage is less than $20.00 per hour.
  • The 1.3 million skilled and trained workforce is projected to increase 7% from 2013-2023.
  • Arkansas has the second highest percentage of manufacturing employment in the South.
  • Workers in welding and metal fabrication related occupations are expected to increase more than 9% by 2024 to 8,116 in the Entergy Arkansas area.
  • Engineers are projected to increase more than 5% over the next five years in Entergy Arkansas territory.

Access to Raw Materials and Markets

  • More than 100 metal fabrication establishments are located in Arkansas.
  • More than eighteen OEM Parts Suppliers and ten Aftermarket Automotive Parts Suppliers doing business in Arkansas.
  • Over 100 million customers are located within a 550-mile radius of Arkansas, which represents 40% of the total U.S. population.

Transportation

  • Three Class 1 railroads serve Arkansas, including Union Pacific, BNSF and Kansas City Southern
  • Five commercially navigable waterways, including the Arkansas River, Mississippi River, Ouachita River, Red River and White River, provide additional transportation options
  • Three major interstate highways traverse Arkansas, connecting to major population centers within a day’s drive

Cost of Doing Business

  • Amendment 82 authorizes bond financing for super projects that meet certain criteria. Approximately $185 million in bonding capacity is available. Funds can be used for site preparation, infrastructure and workforce training.
  • Incentives: property tax abatements through IRBs, foreign trade zones, sales/use exemptions, tax back sales/use tax refunds, fully funded Governor’s Quick Action Closing Fund
  • Arkansas has the fourth lowest cost of doing business int he nation according to a 2015 CNBC ranking.
View Automotive Manufacturing Incentives in Arkansas

Save Time and Resources

Talk to Entergy’s Business Development Team Early in Your Planning Process

More About Our Services

Electricity rates typically 20% lower than the national average

Download Detailed Rate Comparisons

Related Stories