November 13, 2005

By:  Scott Waller

Nissan's Arrival Sent Mississippi in New Direction

Often, the magnitude of an event isn't fully realized until years later.

Five years ago Mississippi experienced such an event.

Already it's changing the way the state is viewed worldwide —and the impact is far from complete.

On Nov. 9, 2000, it was announced that Nissan Motor Co. would build a manufacturing plant in Canton.

Since that time, economic development in the state has taken a new direction.

"It changed the economic landscape," said Sherry Vance, who was director of communications of the Mississippi Development Authority at the time. "It put Mississippi on the radar screen for many other projects.

"It told the world we were ready to compete."

The vision
Five years before the announcement, the state already was working to put itself in position to attract an auto manufacturer.

Alabama, Kentucky and Tennessee already had gotten into the game and Mississippi was tired of sitting on the sidelines.

Jay Moon, who was deputy director of MDA, knew if the state was going to be a serious player, it would need to be prepared to compete. He hired Buzz Canup as a consultant in 1995 to help prepare a gameplan.

Canup helped manufacturers select sites. He was able to provide advice on steps Mississippi needed to take to entice an automaker.

"We began to look at potential sites. There was legislation put in place that would allow us to provide incentives," Moon said. "We then called on every automotive and truck company out there to show them how serious we were. We didn't know who it would be, but we would be ready in advance."

Canup's first task was to provide training for economic developers. Next, everyone had to work together.

Vance, who now works with Angelou Economics in Austin, Texas, called Moon the catalyst for attracting Nissan, but said everyone involved was focused on landing the plant. "There were no egos," she said.

The effort expanded beyond the economic development agencies, said Canup, who also is now with Angelou.

He said then-Gov. Ronnie Musgrove, then-director of MDA J.C. Burns, the Legislature, the utility companies, private partnerships and the state's universities all had a common goal.

"There was a let's-make-it-happen attitude," Canup said. "It's a great story and only a few people know of the team effort.

"The whole state rallied around the project. It's one of the few times in the state's history everyone realized what could happen by working together."

Still Evolving
Landing the plant was simply the first step.

Nissan's goals were ambitious. Not only was it opening a plant, it wanted to produce four new models.

Then the company decided to expand before the plant even opened, adding a fifth model to the production lineup.

"Nothing like this had ever been done," Vance said. "It was fast track economic development and Mississippi stepped up to the plate."

Moon, who now heads the Mississippi Manufacturers Association, said Nissan has lived up to its obligations as well.

The plant began production of its first model, the Quest minivan, in May 2003.

Today there are 5,000 people working at the plant and more than 40 suppliers have located in various parts of the state.

Nissan hired Mississippi people and are working with the state's universities and community colleges to train those workers.

Moon said the company also has lived up to its commitment to be a good corporate citizen.

Now other automotive manufacturers are looking at the state as a possible site to locate a plant.

This summer, South Korean automaker Kia said a site near Meridian was its preferred choice.

Canup said he told state officials that within 24 months of landing Nissan the state would have another opportunity.

In addition to Kia, the state was on the short list of three other automakers.

"The magnitude is immense ... the automotive industry is so powerful," Canup said. "It put a stamp on the state."

Moon said the project shows what Mississippi is capable of doing.

"It was the best example of this state coming together to be successful," Moon said. "It shows when we all work together there is nothing we cannot accomplish."