MBJ_Dec19_2014

INSIDE — Study looks at state’s ‘blue’ economy – Page 5 DOUBLE FOCUS

YEARS

Going Green

1979

www.msbusiness.com

{Section begins P 12}

» One of state’s smallest towns implementing a bright idea » After 8 months, Byram recycling program growing The List {P 15} » Largest LEED Organizations Economic Development

“

Manufacturing {P 4} » Boggs: Clock is for website, not for an announcement of new a plant Boggs in Columbus

2014

December 19, 2014 • Vol. 36, No. 51 • $1 • 24 pages

Our current projections for Mississippi’s real GDP is a ______% growth in 2015

”

State economist Dr. Darrin Webb fills in the blanks, and other economic minds reveal their Christmas wish list on Page 16

{Section begins P 16}

» State leaders optimistic of 2015 » Mary Martha Henson brings experience to MEDC leadership position The List {P 20} » Top 20 Economic Development Projects

35

ENERGY SECTOR

Shale oil: market correction or longterm direction?

By JACK WEATHERLY jack.weatherly@msbusiness.com

The golden age of hydraulic fracturing began about 10 years ago “as oil and gas producers began to explore the nation’s massive shale formations in earnest,” according to an essay on the American Society of Mechanical Engineers website.

Expansion of the technique in subterranean shale formations has pushed the United States toward oil and natural gas self-sufficiency in one

decade.

Because of this boom and oversupply, oil prices naturally have dropped. But since mid2014 they have fallen nearly 50 percent, thanks in part to Saudi Arabia’s strategy to hobble America’s production by keeping oil value low — cutting profit margins at oil companies, especially smaller ones. Softer global demand has also pushed prices downward.

West Texas intermediate crude — benchmark See

http://msbusiness.com/events/leadership-law-nomination-form/

SHALE, Page 2

2 I Mississippi Business Journal I December 19, 2014

SHALE

Continued from Page 1

oil for the United States — opened Tuesday at $54.03 a barrel, the lowest in five years. It closed at $105.79 on June 14.

Three or four years ago, exploration companies started drilling wells in the Tuscaloosa Marine Shale formation, which encompasses all or part of three counties in southwest Mississippi and eight parishes in southeast Louisiana.

Government officials have braced for the negative impact of the oil production on water supplies, as well as roads, which have already been severely damaged by heavy trucks. Worsening matters is the fact that the oil and natural gas severance tax was lowered by the Legislature to 1.3 percent from 6 percent effective July 1, 2013, thus reducing the payment to counties for roads maintenance.

Officials of Amite and Wilkinson counties are preparing a plan for a water district they say will enhance fracking operations while generating dollars for road and bridge maintenance. Treated sewage would be piped daily from McComb, Liberty, Gloster and other southwest Mississippi communities for drilling companies to use in breaking up shale.

Now there is talk in that the upside of the drilling boom

long-term guests.

“There is a lot of oil there, but it’s an early-stage development [with a] high-cost,” Halcon Resources Chairman and Chief Executive Floyd Wilson said in a Nov. 11 webcast the day after the Houston-based exploration company announced its third quarter financial report.

“We’ll not be devoting a significant portion of our resources to the [Tuscaloosa Marine Shale] in the near term,” Wilson said.

Encana Corp. of Calgary, Alberta, Canada in a Nov. 12 webcast suggested it might shift “to a more moderate pace of development” in the play.

Encana has not pulled out of the Tuscaloosa play, and Is “cash flush,” said Wiggins-based oil and gas consultant Charlotte Batson. Instead, is selling off its properties and out West, said Batson, who has a petroleum engineering degree

from Louisiana State University.

Meantime, Goodrich Petroleum Corp. of Houston — which realized 45 percent of its oil production from Tuscaloosa Marine in the third quarter — had big plans for the play in 2015, until the price started tanking.

Goodrich announced last week that it is encouraged by cost-saving strides in drilling there and projects a capital expenditure budget for 2015 of $150 million to $200 million, 95 percent of which is allocated solely for the Tuscaloosa play.

The company said in the news release that its hedging should have the effect of bringing its per-barrel price up to $81 to $83.

Government officials have braced for the negative impact of the oil production on water supplies, as well as roads, which have already been severely damaged by heavy trucks.

Worsening matters is the fact that the oil and natural gas severance tax was lowered by the Legislature to 1.3 percent from 6 percent effective July 1, 2013, thus reducing the payment to counties for roads maintenance.

See

TMS, Page 8

Tuscaloosa Marine Shale The Tuscaloosa Marine Shale formation takes in all or parts of three Mississippi counties and eight Louisiana parishes. Production wells have proven the “play” to be commercially viable, though current oil prices have discouraged companies from maintaining their level of work there.

Source: Amelia Resources

Average Daily Tuscaloosa Marine Shale Oil Production

may have to wait — at least for a while.

Put simply, the price is not right to go full bore in the Tuscaloosa Marine Shale.

Even so, and although the Tuscaloosa formation is an “emerging” play and not fully commercialized, it has already been lucrative for some mineral rights owners, said Bernel McGehee, a certified public accountant and co-owner of the tmshorizons.com website.

Royalties run from 18.7 percent to 20 percent of the money realized from the oil extracted. Some mineral rights owners have gotten several hundred thousands of dollars, he said.

Despite challenges in production and negative impact on roads, the oil industry has been a shot in the arm for some local businesses as well.

Renee Priest opened the Loblolly Lodge in Gloster (Amite County) on Dec. 1 after a 75-day renovation. Priest says the 15-room motel, formerly the Glostonian, had been closed for five years. It is currently 50 percent booked, she said. She plans to add modular buildings to accommodate

Barrels per day

(in Mississippi)

Source: Mississippi Oil & Gas Board

December 19, 2014

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Mississippi Business Journal

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3

GULF COAST

Ingalls to lease former SRHS clinic in Gautier for employee medical center

By TAMMY LEYTHAM mbj@msbusiness.com Ingalls Shipbuilding will locate its employee family healthcare center in a former Singing River Health System medical office on Old Spanish Trail in Gautier, officials announced Tuesday.

The facility, expected to open mid-year in 2015, will cater to 11,500 Ingalls employees and their dependents, said Edmond Hughes, vice president of human resources and administration for Ingalls Shipbuilding. “It’s about 10 minutes from Ingalls ‌ we’re very pleased with that location,â€? Hughes said of the site the company is leasing at 2105 Old Spanish Trail. “It’s all about making “We looked at a it easier for our number of different employees to take options, including care of themselves potentially building something here,â€? he and their families. It said. is all about investing Officials also looked in the wellbeing of at existing sites and our employees. We found the clinic available. They will do can’t succeed do some renovations without them.â€? to the facility, he said.

When it opens, the — Edmond Hughes Ingalls healthcare VP, human resources for center will offer Ingalls Shipbuilding. primary care, preventative services and more for $15 a visit, compared to $20 a visit if employees go outside the family health center, Hughes said.

Services will also include pharmacy, radiology and laboratory.

The center will be open six days a week, and will give employees more choices, along with shorter wait times, Hughes said. “Greater access is something we wanted to provide,� he said. “It’s all about making it easier for our employees to take care of themselves and their families. It is all about investing in the wellbeing of our employees. We can’t succeed without them.�

Ingalls announced this summer that the company was opening two family healthcare centers to expand options for its employees - for the shipyards in Pascagoula and Newport News, Va. The company awarded a contract to QuadMed to manage and operate its family health centers at both locations. QuadMed will hire the doctors and staff for the facility.

Services will be available to eligible employees and their dependents who are covered by the Anthem consumer-driven health plan or preferred-provider option plans. Following the Dec. 1 vote extending the collective bargaining agreement with Ingalls’ labor unions, all represented employees and their covered dependents will also have access to the new health center.

The health centers are part of a new move to offer employees more options for healthy living.

In addition to healthier food choices and physical activity support, Huntington Ingalls Industries, parent

company of Ingalls Shipbuilding, is offering employees access to Teladoc, a program that provides employees with access to board-certified physicians via telephone, mobile application or computer. HII is also offering a discounted rate for healthcare to salaried employees who attest that they do not use tobacco.

Courtesy of Ingalls Shipbuilding

An artist’s rendering shows the Ingalls Shipbuilding family healthcare center, which will be located at 2105 Old Spanish Trail in Gautier, officials announced Tuesday.

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4 I Mississippi Business Journal I December 19, 2014 TOURISM

Hyatt-Place is Columbus’ newest hotel option

By TED CARTER ted.carter@msbusiness.com

The Columbus and Lowndes County hospitality market is continuing a growth spurt with the opening of a Hyatt- Place Hotel that joins a new prototype Hampton Inn scheduled to open next month.

Those properties follow a Courtyard By Marriot and a Fairfield Inn that have opened in the last three years. Hyatt-Place Columbus is only the second Hyatt in Mississippi, joining the Hyatt Jackson on County Line Road.

The Hyatt-Place and the soon-to-open Hampton Inn will give Columbus about 1,500 hotel rooms catering to a mix of business and leisure travelers.

“We’re going to do extremely well,” said Tess Mason, director of sales for the 99-roon Hyatt-Place on its second day of business. “We have very high expectations.”

The hotel, 101 Hospital Drive Extended, is near Columbus Air Force Base, where a third of the nation’s Air Force pilots are trained, as well as Baptist Memorial Hospital-Golden Triangle and downtown Columbus.

Shailee Raj, the Hyatt-Place general manager, said the vibrancy of Columbus, its restaurants, markets and impressive arts and entertainment venues made it an easy choice to be the home of only the second Hyatt in Mississippi.

“No matter why guests are visiting the area, we are confident that Hyatt-Place Columbus will exceed guest expectations,” Raj said in a press release.

Nancy Carpenter, executive director of the Columbus-Lowdes Convention and Visitors Bureau, said in addition to friends and family visiting the Air Force Base and Mississippi University for Women, Columbus draws visitors to its three historic districts that include 650 properties on the National Register of Historic Places.

Also, the new hotel is within a 20-minute driver of Mississippi State University.

Columbus sits on the Tennessee-Tombigbee Waterway, a popular destination for boaters. The Golden Triangle city of 23,000 people has restored the old Mississippi Hwy. 82 bridge over the Ten-Tom, as a pedestrian walkway leading into downtown.

By TED CARTER ted.carter@msbusiness.com

Photo courtesy of Hyatt

Guest room at Hyatt-Place Columbus

With 130 restaurants, “People coming to Columbus to stay at the hotel have plenty of places to eat,” Carpenter said in an interview.

And downtown, she added, “Has become a wonderful entertainment venue.”

Hyatt-Place Columbus, which falls into Hyatt’s upscale service hotel category, will offer 99 “roomy” rooms that include the popular Hyatt Grand Bed and Cozy Corner Sectional Sofa. All rooms will feature a swiveling 42-inch HDTV. Other features include: » Free Wi-Fi throughout the property; » Complimentary a.m. Kitchen Skillet TM breakfast for guests, including breakfast sandwiches,fruits, hot and cold cereal, yogurt, breads, coffee and an assortment of juices; » 1,080 square feet of high-tech meeting/function space; » 24/7 Gallery Menu serving made-to-order entrees and appetizers around the clock; » A Coffee to Cocktails Bar offering specialty coffees and premium beers, as well as wines and cocktails.

MANUFACTURING

ALUMINUM COMPANY: 'CLOCK' IS FOR WEBSITE, NOT PLANT SITE

By JACK WEATHERLY jack.weatherly@msbusiness.com There is plenty of evidence that a $1.2 billion aluminum mill will be built at Columbus.

But when the American Specialty Alloys clock on Internet hits zero today at about 7 p.m. don't expect a big announcement.

It will be the launch of a website, but there will be no information on the location of 1.4 million-square-foot plant, said American Specialty founder Roger Boggs in an telephone interview this week, from Columbus.

"We never meant to bring on so much publicity about Friday. It's a celebration of our team and our employees, who worked so hard developing our project. The countdown clock is for the launch of our website."

'There's still a lot of due diligence work and process.

It's a very big project."

American Specialty issued a detail release on Nov. 17, saying that it will build a plant in the Southeast that is expected to begin operations in late 2016 and eventually employ between 650 and 850. About 2,000 construction workers will be employed.

Boggs said that the site will also celebrate customers,

ANALYSTS HAIL BANCORPSOUTH STOCK BUYBACK AS ‘HANDSOME’ REWARD FOR SHAREHOLDERS

though he did not specify whom.

The plant is expected produce 600 tons of flat-rolled "auto grade aluminum" per year.

One of its customers likely will be Ford Motor Co. The release referred to the reengineered version of its immensely popular Boggs F-150 pickup.

With an all-aluminum body, of course.

The 2015 F-150s were delayed till this month for the rollout of the new version.

From the get-go, there have been strong indications where the plant will be built. *The startup company has applied with the Mississippi Department of Environmental Quality for permission to prepare a site on the TennesseeTombigbee Waterway at Columbus. *Gov. Phil Bryant said in a remark to the Mississippi Business Journal that the plant is "a very exciting proposition," though the Mississippi Development

Authority had no comment. *The release had a 662 area code and Columbus prefix.

Columbus plays a major part in Boggs' resume.

He was director of technology and customer service for three years (2007-2010) at the Severstal steel plant at Columbus. The plant had been started as Severcorr, an 80/20 partnership between majority owner Severstal, a Russia-based corporation, and a group led

by John Correnti.

Correnti later sought to build a silicon plant at Columbus, but the project was aborted after a falling out with local officials over the Correnti group's failure to meet deadlines for putting $150,000 in an escrow account.

Correnti vowed he would build the $200 million plant in Mississippi, just not in Lowndes County.

Construction of Mississippi Silicon is under way but has been challenged in court BY WHOM? Correnti leads a group that is minority investor in the project.

Boggs, whose career begin in 1990, was director quality of the Thyssenkrupp Steel plant in Calvert, Ala. from December of 2010 and January of 2013.

The board of BancorpSouth’s Dec. 11 authorization of a buy-back program of up to 5.7 million shares of common stock pushed up the Tupelo banking company’s share price 0.5 percent by the middle of this week.

The move also won praise from analysts who see the buyback as an attractive reward to shareholders.

The repurchase authorization of up to 6 percent of outstanding shares extends to Nov. 30, 2016 and sets a par value of $2.50 per share. The authorization specifies the buybacks be under “favorable conditions.”

Shares opened at $21.36 Tuesday and closed at $21.78. BancorpSouth shares have a 52-week high of $26.24 (March 20)) and a low of $19.23 (Oct. 15).

Together with a quarterly cash dividend of 7.5 cents per share to be paid on Jan.2, 2015, the share repurchase authorization “reflects BancorpSouth’s commitment toward rewarding its shareholders handsomely,” said a Zacks Equity Research analysis. Zacks maintained a “hold” rating on BancorpSouth shares, however.

The $13.1 billion multi-state banking company’s third-quarter EPS of 32 cents missed Zacks Consensus Estimate by a penny. However, earnings came in 10.3 percent higher than the prior-year quarter.

In its third quarter analysis, Zacks said BancorpSouth’s improvement in its fee-based business will help it navigate through the current low interest rate environment, a stringent regulatory landscape and a weak mortgage market.

“Moreover, the company is well poised for both organic and inorganic growth, which will significantly drive earnings in the coming quarters,” Zacks said.

Dan Rolins, BancorpSouth chairman & CEO, said the stock repurchase program demonstrates “our continued confidence in our ability to generate long-term growth and profitability. This authorization reflects our commitment to strategically managing capital levels and delivering value to our shareholders.”

The shares may be purchased periodically in open market transactions at prevailing market prices, in privately negotiated transactions, or by other means in accordance with federal securities laws, BancorpSouth said.

December 19, 2014

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Mississippi Business Journal

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5

GULF COAST

Study looks at state’s ‘blue’ economy

By LISA MONTI mbj@msbusiness.com

A new study looking at Mississippi’s maritime industries spotlights the importance of shipbuilding, fishing, oceanography and marine technology as a dominant force in the state’s economy. The data show that in the three coastal counties, about 51,000 people - 35 percent of the entire workforce - are employed in so- called blue industries.

And it’s not just the Mississippi Gulf Coast that has a stake in the blue economy.

The Mississippi River and the TennesseeTombigbee Waterway also connect the state to the global maritime economy. And the state’s infrastructure includes 15 ports, including two deep draft ones in Gulfport and Pascagoula.

Their study, called Mississippi’s Blue Economy: An Analysis of Mississippi’s Maritime Industry, looked at employment and other data on shipbuilding and fishing, considered Mississippi’s traditional maritime industries, as well as industries such as construction that have maritime and non-maritime activities. It also included maritime technology or “blue tech� companies.

Ashley Edwards, Susan Veglia and Kevin Buckley compiled the study as part of the Masters of Economic Development Program at the University of Southern Mississippi. Edwards is executive director of the Hancock County Port and Harbor Commission and Veglia is the commission’s community development director. Buckley is a USM student. “In the process of compiling the data, we really gained a better understanding of where we need to go next,� Edwards said.

One recommendation calls for the coastal counties to target oil, gas and energy production industries and supporting services. Another said the state should create incentives to lure maritime industries and cooperate with neighboring states to bring synergy to the economic development activities.

The authors also said there is a need to study the state’s blue economy further and to help the regional marine industries science and technology “cluster� expand. “We have a high concentration, or cluster, of oceanographers, marine scientists and engineers working in maritime-related industries,� Edwards said. “We think the next step will be to capitalize on their maritime successes and seek ways to expand maritime opportunities here.�

One challenge the researchers discovered was the blue economy, unlike the manufacturing and agricultural economies, is not centralized or coordinated. “The lack of this infrastructure has prevented Mississippi’s Blue Economy from capitalizing on the opportunities inherent in cluster-based development,� the report said. “If Mississippi’s Blue Economy is to

reach its fullest potential, leaders throughout the public and private spectrum should begin to treat it as the critical mass it is, finding competitive success through coordination and interaction designed to increase productivity, spur synergistic innovation and encourage comprehensive business growth.�

Laurie Jugan, project coordinator for the

Mississippi Enterprise for Technology at Stennis Space Center, said the study confirms an expansive amount of marine science and technology work being done by organizations located along the Mississippi Coast. “Until now, there was no way to quantify the importance of this industry sector in our area,� she said. “With the USM study, we now have a place to start.�

The Small Business Administration awarded MSET a competitive $523,742 grant based on the study’s findings. “We’ll be able to focus support around the worldclass marine technology research taking place at the Stennis Space Center - which has the highest concentration of oceanographers in the world - and the nearby federal, state and university partners already working in the field,� Jugan said. “We will be able to better understand where the industry needs additional support to expand and begin growing our Blue Technology sector.�

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Website: www.msbusiness.com December 19, 2014 Volume 36, Number 51

ALAN TURNER Publisher alan.turner@msbusiness.com • 364-1021 ROSS REILY Editor ross.reily@msbusiness.com • 364-1018 FRANK BROWN Staff Writer/Special Projects frank.brown@msbusiness.com • 364-1022 TED CARTER Staff Writer ted.carter@msbusiness.com • 364-1017 JACK WEATHERLY Staff Writer jack.weatherly@msbusiness.com • 364-1015 BECKY GILLETTE Contributing Writer mbj@msbusiness.com • 364-1018 LYNN LOFTON Contributing Writer mbj@msbusiness.com • 364-1018 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018 TAMI JONES Advertising Director tami.jones@msbusiness.com • 364-1011

MBJPERSPECTIVE December 19, 2014 • www.msbusiness.com • Page 6

OTHER VIEWS

Capital construction, growth spur our universities

C

apital construction projects totaling several hundred million dollars on the campuses of the University of Mississippi and Mississippi State University created or will create hundreds of jobs with positive impact on the surrounding areas’ economy.

The federal government multiplier of 8.34 jobs per million dollars of investment would equal more than 3,300 cumulative jobs for the $400 million-plus in projects under way or recently completed on the two major campuses in Northeast Mississippi.

Economic impact of total construction either underway or completed during 2014 at Mississippi State is $443 million – including

Davis Wade Stadium, a new cafeteria facility, the Lee Hall restoration, the new classroom building/parking garage and several smaller projects, university spokesman Sid Salter said Monday. MSU Architect Tim Muzzi said that the state assigned economic impact at basically two times construction costs, Salter said.

UM Assistant Director for Public Relations Mitchell Diggs said planned and current construction totals $419 million on the Ole Miss Oxford campus.

Average construction wages, dependent on skills and jobs, range from $26,000 to $64,000 per year in Mississippi, the Indeed Employment Site data blog reported.

» THE OUTSIDE WORLD

» EDITOR’S NOTEBOOK

Reality has a place in promoting our numbers

MELISSA KILLINGSWORTH Sr. Account Executive

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No material in this publication may be reproduced in any form without the written consent. Editorial and advertising material contained in this publication is derived from sources considered to be reliable, but the publication cannot guarantee their accuracy. Nothing contained herein should be construed as a solicitation for the sale or purchase of any securities.

It is the policy of this newspaper to employ people on the basis of their qualifications and with assurance of equal opportunity and treatment regardless of race, color, creed, sex, age, sexual orientation, religion, national origin or handicap.

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Entire contents copyrighted © 2014 by Journal Inc. All rights reserved.

Both universities have enjoyed a substantial string of annual contribution successes, with a total of $224 million given to the two in the 2014 auditing report ...

As columnists Sid Salter and Charlie Mitchell both have commented, football is a growth industry in our state and has a positive impact, especially in the university towns.

Better facilities at all levels help grow enrollment, which is another major annual impact. Texas Tech University reported in a recent study that every 1,000 additional students generate another $126 million annually for the Lubbock economy.

— Northeast Mississippi Daily Journal

» HOW TO WRITE Letters to the editor are one of the most widely read features of the Mississippi Business Journal, and they give everyone a chance to voice their opinions about current affairs. We’re interested in what you think and we welcome Letters to the Editor for publication. Here are the guidelines: >> Letters should not exceed 300 words in length as a general rule. >> All letters must bear the writer’s address and telephone number. Street addresses and telephone numbers will not be published, but may be used for verification purposes. Letters may not appear without the author’s name. >> Form letters, thank you letters and letters to third parties generally are not acceptable. >> Letters must be typed or e-mailed. >> Letters must conform to good taste, not be libelous and not involve personal attacks on other persons.

>> All letters are subject to editing, and become the property of the Mississippi Business Journal. >> Letters can be sent to The Editor, The Mississippi Business Journal, 200 North Congress, Suite 400, Jackson, MS 39201, delivered to the newspaper during regular business hours or e-mailed to editor@msbusiness.com. They may also be faxed to Ross Reily at (601)-364-1007.

» CORRECTIONS The Mississippi Business Journal takes seriously its responsibility to provide accurate information, and will correct or clarify articles produced by the editorial department if we have made an error or published misleading information. The correction will be placed in the perspective section.

If you see inaccuracies in Mississippi Business Journal news stories, please report the mistake via email at editor@msbusiness.com.

eople keep telling me that I am bald. What’s the deal? Why can’t they accentuate the positives?

I have hair, just not all over my head.

That is kind of what I feel like Gov. Phil Bryant was saying when he was talking to business people in Southaven this week.

“Accentuate the positives while accepting reality and working to make things better,” is what Bryant said.

The Commercial Appeal reports Bryant used a luncheon speech last week in Southaven to boast about the state’s success in attracting jobs.

The Republican governor, who is seeking a second term in 2015, says Mississippi had a gross domestic product of $100 billion in 2012 and has been praised as a good place to practice medicine.

Despite that, Bryant says: “The narrative you hear is that we’re Ross Reily the fattest, we’re the slowest, we’ve got the worst education and the worst workforce.”

He says he disagrees with the negative assessments.

What is there to disagree about?

We are the fattest state in America.

We are ranked at or near the bottom in every education category.

Slow? I don’t know what he means by slow, but I do know Ole Miss and Mississippi State have some mighty fast wide receivers.

So, hey, there’s a positive.

It’s great to accentuate the positives of Mississippi.

I do it every day. But, at some point, change has got to occur, and there hasn’t been significant change in Mississippi on very many fronts, at least the ones that count the most — like healthcare and education.

When Bryant entered politics in Mississippi in See REILY, Page 7

PERSPECTIVE

December 19, 2014 I Mississippi Business Journal

» RICKY NOBILE

REILY

»INSIDE MISSISSIPPI

Who in the Hell are we?

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his is not the Ole Miss Hotty Toddy cheer, but instead a more serious question requiring a lot more than Flim Flam and Bim Bam. Although that, along with plenty of other spin, will be shared as a result of the Senate Intelligence Committee’s Report on the CIA’s “Enhanced Interrogation.”

Everyone should study the report for themselves. We should make it required reading for our junior high school students from now on. Gosh Almighty, who in the hell are we?

Throughout our nation’s history, we’ve done some bad and we’ve done some good. But this could be us at our absolute lowest. Anyone who calls themselves a patriot, a lover of freedom, or an enemy of big, bad government, should be crying for justice or at least some assurance the “enhanced interrogation” practices outlined in the report will never happen again.

Will there be justice? Doubtful. Who is there to prosecute?

Our entire government? Because that is who was involved: Presidents, Legislators, Judges, Bureaucrats, Republicans, Democrats, Operatives, Private Contractors and the foreign goons our tax dollars paid and trained to torture suspected terrorist and those that may or may not be related to suspected terrorists.

We, the people, are the State. All of us. We allowed, knowingly or out of gleeful ignorance, and supported the torture and abuse of people, too many of whom were innocent of any wrong doing against America.

Let that sink in for a moment. Our nation was hit by a malicious attack on 9-11 that killed thousands of innocent people.

And in our hunt for the “bad guys,” we have tortured and abused innocent people.

For those that believe this is simply the “collateral damage” necessary when hunting down “the bad guys,” find the report

and read it. It’s sadism on a State scale.

And it should frighten all of us.

Mississippi’s revered former Sen. David Dallas John Stennis commented during a closed Senate investigation of the CIA back in the 1970’s, that if a nation is going to have such an agency… “sometimes you are going to have to hold your nose and take what’s coming.” Even he would find the Senate’s CIA report more than rancid.

No need to list any of the heinous “enhanced” practices here or the fact that there were victims with no connection to 9-11 or other terrorists activities against the U.S. The CIA has admitted to destroying files on “enhanced interrogation.” It admitted spying on Senate Staffers – American citizens.

These acts do not protect our country. Instead they erode the very principles upon which our country was founded. If we, the people, do not uphold the most fundamental principles of rule of law and habeas corpus even outside our borders, then “who in the hell are we?”

John Stennis also said he tried to live his life as if every detail might one day be written up on the front page of the New York Times. Our government must conduct its duties in the same fashion, no matter how difficult it may become to protect us from a growing list of enemies. This doesn’t mean we do not need an Intelligence Agency, a military or law enforcement. Of course, we do. And sometimes we will have to hold our nose, but the stench cannot become systematic.

Our nation does not need torture chambers in Eastern Europe and throughout the world full of evil and shameful secrets. Not if we really are to be the land of liberty. Not if we See DALLAS, Page 9

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7

Continued from Page 6

1990 as a member of the House of Representatives, Mississippi was last in education and Mississippi was last in healthcare.

As we enter 2015 and the final year of Bryant’s first term as governor, Mississippi is last in education and last in healthcare.

Alright, let’s accentuate the positives — Mississippi had a gross domestic product of $100 billion in 2012 and has been praised as a good place to practice medicine.

Seriously, there are It’s great to accentuate tons of positives about the positives of MissisMississippi. I have lived here most of my sippi. I do it every day. life because of those positives. Music, cul- But, at some point, ture, people, food, the change has got to occur, outdoors and great places are many of the and there hasn’t been reasons I give to people outside of Missis- significant change in sippi as to why this is a Mississippi on very good place to live. many fronts, at least the That’s the truth.

Still and yet, the reones that count the ality is our children aren’t being educated most — like healthcare at an adequate level and education. and we are fat and dying before other people in other states.

How about this one? The incidence of chlamydia is higher in Mississippi than in any other state.

And another — while infant mortality has decreased by 30 percent from 13.0 to 9.1 deaths per 1,000 live births, it remains higher in Mississippi than in any other state.

Unfortunately, that is the narrative.

The governor wants us to accentuate the positives while working to make things better.

Hell, we’ve been doing that every day for the nearly 25 years you have been an elected official in Mississippi, Mr. Governor.

When is it going to get better?

I understand what you are saying, Mr. Governor.

Make change, don’t talk about it. I get it.

Mississippi was admitted to the union Dec. 10, 1817 and ever since then we have been battling poor education and poor healthcare.

So, please don’t lecture us about being patient and working hard to achieve our goals. Mississippi has waited long enough.

Contact Mississippi Business Journal editor Ross Reily at ross.reily@msbusiness.com or (601) 364-1018

» CORRECTION

16 Front Street Two articles published in the Dec, 5 issue on legal challenges to Mississippi Silicon should have stated that Globe Metallurgical created a limited liability company, 16 Front Street, to be the plaintiff in the suit. One of the articles carried the headline "MDEQ actions at center of trio of federal suits against Mississippi Silicon" and the other the headline "Consultants’ emails portray MDEQ as permit facilitator for silicon plant".

— MBJ Editorial Board

8 I Mississippi Business Journal I December 19, 2014 TRANSPORTATION

Jackson’s new airport CEO fulfills desire to taking on the top job » Fiscal challenges and quest for new airport revenues await veteran aviation exec Carl Newman

By TED CARTER ted.carter@msbusiness.com

A back injury that prevented Carl Newman from entering the Phoenix police academy four decades ago led Newman to pursue a career that has him slated to become CEO of the Jackson Municipal Airport Authority on Jan. 2.

Newman, 59, will take over running Jackson’s Medgar Wiley Evers International Airport and other Jackson Municipal Airport Authority operations after a two-year stint as general manager of Houston’s George H.W. Bush Intercontinental Airport. He went to Houston after 32 years with Phoenix’s Sky Harbor Airport, where he rose from an entry-level job to assistant aviation director.

Newman is the first new airport chief in 24 years, replacing longtime CEO Dirk Vanderleest, who retired at the end of September.

The selection came after a national search by ADK Consulting & Executive Search of Jacksonville, Fla,, which won a $30,000 contract from the Airport Authority in July. Doug Kuelpman, ADK founder and president, said he has had a long acquaintance with Newman and told

TMS

him of the Jackson job after encountering him at a recent aviation conference.

His interest was imme- Newman diate, Kuelpman said.

“He wanted to be the Number One. This was his opportunity,” Kuelpman said, explaining that while Newman oversaw the operation at Bush Intercontinental, he answered to a director responsible for Bush, Hobby International and Ellington airports, all in Houston.

Newman “has proven beyond a shadow of a doubt he is capable,” said the aviation recruiter, who provided the Jackson Municipal Airport Authority a list of recommended candidates from which Newman was selected.

In Jackson, Newman will oversee a staff of slightly more than 50 people. At Bush Intercontinental, he had responsibility for more than 500 workers and focused on the day-to-day operation of the airport.

He had broader responsibilities at Phoenix Sky Harbor, he said. “I was the Number Two guy and oversaw a tremendous amount” of activities.

He retired from the Phoenix Airport System after a career in which he started at

Continued from Page 2

Goodrich will start 2015 with two to three rigs, concentrating in Amite and Wilkinson counties, along with Tangipahoa Parish in Louisiana, said Daniel Jenkins, director of corporate planning and investor relations.

It has had a breakthrough in its drilling technology, saving the company $1.1 million each on two wells in 2014.

McGehee said the number of rigs in operation in the first quarter will be six or seven in the Mississippi play, compared with nine at the high point in 2014. However, he said the number could drop to two or three after the first quarter.

The Tuscaloosa play is the most technologically challenging shale formation in the United States because of its rock formations, which are “mushy” compared with the hard-rock formations, consultant Batson said.

Hydraulic fracturing got under way with the Barnett Shale, near Dallas, followed by the Bakken formation in North Dakota, the Marcellus in Pennsylvania, the Eagle Ford in south Texas the Haynesville near Shreveport and later the

a level that was “about as low as you can get in the organization,” Newman said.

Promotions came quickly, however.

“I was never off probation… I kept getting promoted,” he said. “I started in operations, then maintenance and ended up in management. I was promoted to director of facilities and services.”

Six months after promotion to deputy director of aviation operations, his bosses elevated him to assistant aviation director, a post at which he oversaw all the divisions within the airport system.

He held that post upon retiring from the Phoenix airport system and leaving for Houston Bush Intercontinental.

Newman started his working life with the Phoenix Police Department. “I was about to go through the police academy when I injured my back,” he said in an interview a day after the announcement of his selection.

He stayed in law enforcement a brief time longer as a police assistant before joining the city’s aviation department.

Jackson Airport Authority Chairwoman LaWanda Harris said in a press statement that Newman’s broad range of aviation experience will “be critical to the continued success” of Jackson’s commercial airport and its general aviation operation at Hawkins Field.

For one, the holder of a bachelor’s degree in public administration from the University of Arizona and a master’s degree in

Fayetteville Shale in Arkansas.

There is much “lateral heterogeneity,” or unpredictability, in the Tuscaloosa, she said. Also, the formation in Mississippi and Louisiana is much deeper than the others. Hydraulic fracturing is achieved horizontally after the initial vertical drilling.

Shale is then fractured at strategic points by injection of fluids mixed with sand and chemicals.

Some drilling material suppliers have been told to hold off for now, Batson said, though she declined to name them.

Calls for this article to several suppliers were not returned.

Still, while the Tuscaloosa oil comes at a premium, it sells at a premium, McGehee said. Called Louisiana light sweet crude, it sells for $2 to $10 more per barrel than other benchmark oils, such as west Texas light sweet crude.

Despite the recent downturn, the “rumors of the death of shale exploration are greatly exaggerated,” said David Dismukes, director of the LSU Center for Energy Studies.

Dismukes sees the price falloff as the equivalent of a stock market correction. He expects a first-quarter turnaround, with plans for extraction following suit at some point, though he would not venture a guess as to when that might be.

aeronautical science from Embry Riddle Aeronautical University will face challenges on the fiscal front. The Airport Authority lost around $800,000 a year in revenues with the June departure of Southwest Airlines from the airport.

Fitch Ratings Service downgraded the Airport Authority’s $39 million bond last spring, citing the pending loss of Southwest. The downgrade caused the Authority to delay projects to enhance the terminal, terminal security and build an off-site rental-car prep facility.

Vanderleest, the former CEO, said in an interview after the downgrade that the Authority would have to do significant belt tightening to improve its credit standing.

Kuelpman, the executive recruiter, said Medgar Evers International is unlikely to regain a significant new carrier and should concentrate on bringing economic development to land around the airport. Newman is ready for that endeavor, Kuelpman said, noting the new airport chief “had exposure to the economic development side of the house” with the Phoenix airport system.

“Doug is right,” Newman said of the recruiter’s belief that securing new revenue streams, especially through development of airport land, will be critical to his success in Jackson.

“Non-airline revenue is going to be the place we’re going to need to grow the revenue as part of an ongoing strategic planning process.”

He said he has a lot to get his arms around and will concentrate initially on “reaching out to the community.”

In the meantime, he is “pleased and happy” for an opportunity to manage an airport operation of his own.

“I have always been one to set my own course and destiny,” he said. “This is a culmination of a career desire.”

Dismukes said that low oil prices are also the result of the stronger U.S. dollar, in which oil is traded in international markets, a softer demand from countries, especially China, and a growing confidence in fracking as a method that can sustain its output.

Saudi Arabia, the largest oil producer in the world, has refused to cut its output, but it cannot indefinitely exert its influence over the Organization of Oil Exporting Countries and hobble the United States’ production, he said.

Mississippi State University likewise is taking the long view on the future of oil and gas exploration.

It announced earlier this month that it would resume its petroleum engineering program after a hiatus of 20 years. It was discontinued in 1995 due to budget trimming.

The decision to reestablish the program next fall was more because of hydrofracking in general than the Tuscaloosa play, said Jason Keith, interim dean of the Bagley College of Engineering.

Keith said the school worked with “world-renowned experts” to set up the curriculum.

December 19, 2014

PERCOLATIN’ WITH BILL

Lowest common denominators, politicians and Common core

I

wonder if “lowest common denominator” shows up in the Common Core State Standards?

Well, it probably shows up in the math standards since that’s how you add fractions. But it ought to be highlighted in the language standards too, since that’s the level of most political language today, particularly in Mississippi.

“Something of small intellectual content designed to appeal to a lowbrow audience” is the non-mathematical definition in the MerriamWebster dictionary, e.g.

Common Core State Standards are an Obama conspiracy to nationalize Bill Crawford education, its curriculum is full of objectionable (i.e. liberal) materials, and they invade privacy.

In Mississippi, top state Republican leaders were for the standards until they were against them. Lieutenant Governor Tate Reeves just abandoned his support and joined Governor Phil Bryant (who flipped earlier) in opposition to the standards in Mississippi.

State Senator Angela Hill is one of the Tea Party champions opposing the standards. One of her main complaints is that they were adopted by the State Board of Education, not the Mississippi Legislature. Her rampage against the standards can be seen on Facebook at “Stop Common Core – Mississippi.”

Yes, indeed, senator, it’s past time we turned our educational standards over to politicians. There’s no better way to keep Mississippi’s historic position as the nation’s lowest common denominator than to do that.

That should include the repeal of the amendment to Section 203 of the state constitution that we adopted in 1982 to create an independent State Board of Education.

“The reason we have the constitutional amendment in the first place is to keep the politicians from messing around in education according to the whim of the moment,” long-time State Senator Hob Bryan told the Associated Press. Poor Hob, he just doesn’t appreciate lowest common denominators.

The state board is made up of nine members, five appointed by the governor, including one teacher and one administrator, and two each appointed by the lieutenant governor and House speaker. This board hires the State Superintendent of Education.

“I am committed to continuing implementation of these standards,” said State Superintendent Carey Wright.

How could she and her board, a majority appointed by now Common Core foes Bryant and Reeves, not get on board the lowest common denominator bandwagon?

Well, maybe they read the Common Core web page posted by the Clinton Public School District, home of House Speaker Philip Gunn: “These standards are simply goals for what students should know and be able to do at each grade level….Decisions about how to teach the standards, such as curriculum, tools, materials and textbooks, continue to be made by local districts and school leaders who know their students best.”

The top-ranked district’s motto is “where excellence is the only option.”

Humpf, they probably only teach lowest common denominators in math classes.

» Bill Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.

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Mississippi Business Journal

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FROM THE GROUND UP BY PHIL HARDWICK

Characteristics of a good year-end fundraising letter

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nother December day; another solicitation letter.

The end of the calendar year is approaching, and that means that fundraising letters compete with catalogues and holiday cards for space in the mailbox. Some fundraising letters are compelling.

They make one want to immediately write a check, volunteer for community service or pledge some exceptional amount. And then there are those that get opened, quickly scanned and thrown in the trash. What we're talking about here is the year-end solicitation letter, not the general fundraising letter.

It is the letter that seeks to take advantage of the time of year when tax deduction just might be on the mind of the recipients.

Presented are some of the characteristics of exceptional fundraising letters as viewed by this writer. The last one on the list is based on some new research about the effectiveness of fundraising solicitation letters.

First, the envelope should look as if it was the only one sent. By that, it is meant that it is either hand addressed or appears to have the address typed on the envelope. Mailing labels are convenient and timesaving, but they scream mass mailing. Today I received six solicitation letters. Four had nonprofit postage paid stamps and two had regular stamps. None had address labels, so that was a good sign. All were from organizations that I had contributed to or signed up to receive mailings.

Three of the letters had addresses that were identical to your scribe's name on a credit card. Two were addressed to Mr. and Mrs. Hardwick and one was addressed to my wife and me by first names.

All of the envelopes got opened.

Next, a salutation that the recipient views as personal is desirable. When first names are used, they should be names that are usually the ones used by the recipient. In my case, when someone addresses me as Phillip or Mr. Hardwick I assume that the person sending the letter does not really know me. Occasionally, I receive a solicitation letter with my first and middle name after the “Dear.” Each of these is not really a negative item. It's just that it tells me that the person who signed the letter does not really know me. A nice variation of this theme is the case where the salutation reads, “Dear Mr.

DALLAS

Hardwick,” but is struck through and replaced in ink with my first name. That lets me know that the sender personally handled the letter. It also makes me want to respond.

Inside the envelope should be the solicitation letter and a smaller return envelope so that the recipient can simply write a check and put it back in the mailbox. The return envelope should of course be self-addressed. Double points if the return envelope is also stamped. Slick newsletters that contain a clip-out coupon should be avoided.

The letter should contain a personal story about someone that the organization serves. A variation would be a paragraph in italics that is a testimonial. There should also be a list of accomplishments during the past year so that the recipient knows that his or her contribution was well spent. Letters that contain only a response card and self-addressed envelope are inviting a toss to the waste basket.

The letter should also contain a response form for updating information, etc. and useful comments.

There should be a telephone number, a name and the website address. It should also be mentioned that the gift is tax deductible. After all, that is why these type of letters are being sent at this time of year.

Finally, there is some new research about what gets people to give to charities. Mentioning – no, even advertising – that a well-known person made a contribution will have a greater impact on the probability of the recipient of the letter making a gift. In an article in the December 15, 2014 Wall Street Journal by Anna Prior, entitled “How Charities Can Get More Out of Donors,” it was reported that “trumpeting the fact” that a big name donor also made a contribution can be surprisingly effective.

The article discussed an experiment by John List, principal investigator at the Science of Philanthropy Initiative at the University of Chicago, and Dean Karlan of Yale University. They teamed up with TechnoServe, a charity that focuses on poverty

Phil Hardwick

reduction and international development. They sent direct-mail fundraising requests to people who had not previously donated to the organization. A portion of the mailings named the Bill and Melinda Gates Foundation as a matching donor, while other mailings noted only that the charity had an anonymous matching donor. Naming the foundation as the source of matching funds increased the probability of an individual donating by about 22%—rising to 1.1% from 0.9%.

Not only that, the effect continued after the matching period, meaning people continued to contribute more if they remembered that the Gates Foundation had once donated. Experts say that one of the reasons to mention well-known donors is that people do not have time to do research or evaluate charities. Thus, when they see that a big name made a donation they assume that the charity has been checked out.

In a similar vein, when prospective donors see a local name that they are familiar with they are more likely to contribute. Judging from the abovementioned experiment it would be better to mention such a person as a contributor rather than having a letterhead listing an advisory board. One charity known to this writer even lists contributors by categories.

In this season of giving it is hoped that all worthy charities receive sufficient gifts to continue and expand their work.

Happy Holidays.

In this season of giving it is hoped that all worthy charities receive sufficient gifts to continue and expand their work.

Continued from Page 7

wish to promote the rule of law beyond our borders.

Former Vice President and architect of our War on Terror, Dick Cheney, says he would continue to support the use of torture and admitted he was not so much concerned about torturing innocent people in the process. Then he asked rhetorically how are we supposed to get information from terrorists?

Our nation’s great Machiavellian, Cheney is confident he knows the answer. He knows we are obsessed enough in this

» Phil Hardwick is a regular Mississippi Business Journal columnist and CEO of The Hardwick Company, LLC, which provides strategic planning facilitation and leadership training services. His email is phil@philhardwick. com and he’s on the web at www.philhardwick.com.

country with power and wealth and those who control it. He knows our nation no longer feels the collective responsibility to protect the poor and the weak. And as long as we get what we want, who really cares if we torture a few innocent people from some far away place?

So if one had to answer the question “Who in the hell are we?”

The answer is a nation without mercy and full of malice. Sadly, this might be the most enduring legacy of 9-11. » David Dallas is a political writer. He worked for former U.S. Sen. John Stennis and authored Barking Dawgs and A Gentleman from Mississippi.

NEWSMAKERS

10 I Mississippi Business Journal I December 19, 2014

MDOT’s Carr honored

Montgomery promoted

Charles Carr, a 35-year veteran of the Mississippi Department of Transportation (MDOT), is the 2014 recipient of the American Association of State Highway and Transportation Officials (AASHTO) President’s Transportation award for Intermodal Transportation.

During his time as director of Carr Public Transit with MDOT, Carr introduced transportation alternatives to a relatively rural Mississippi. Through his initiative, he established the ground work that led to the growth of public transportation options in areas of the state where services were non-existent or needed improvement.

Communities across the state including the Mississippi Delta, the Natchez area and the Mississippi Band of Choctaw Indians have all benefited from the new transit facilities constructed as a result of his efforts.

Carr received the “Dr. Aaron E. Hendry Achievement Award” for his commitment and support of improving community transportation; the AASHTO Multi-State Technical Assistance Program Special Recognition award for this leadership in the transit industry and he also plays a critical role in keeping AASHTO connected to the Community Transportation Association of America.

The AASHTO President’s Transportation Awards recognize individuals or teams, who have performed exemplary service that benefit transportation regionally or nationally. Recipients are selected by the president of AASHTO and the four regional associates of state highway and transportation officials.

Dr. Reed Mosher, director of the Information Technology Laboratory (ITL) at the U.S. Army Engineer Research and Development Center (ERDC) in Vicksburg, Mississippi, has announced the selection of Speler Montgomery as chief of the Scientific Software Branch.

Montgomery holds a bache- Montgomery lor’s degree in mathematics from Mississippi College, including a minor in computer science. She began her career with ERDC in 1993 as a contract student in the Geotechnical and Structures Laboratory (GSL). In 1997, she began working as a DynTel Corporation contractor in GSL until she was hired as a federal employee in 2001.

Montgomery has spent the last 14 years conducting research in the Survivability Engineering Branch of GSL, including algorithm development, scientific programming and software development focusing on weapons effects on structures and structural components. She also has extensive experience in developing survivability decision support tools that aid the military in critical operational support to enable and increase overall force protection. In this position, Speler has served as a work unit manager for several major Army research programs in the Military Engineering and the Environmental Quality and Installations business areas.

She is a 2010 graduate of the ERDC Leadership Development Program and a member of the Association for Computing Machinery, the Mathematical Association of America, and the In 2010, Montgomery was selected by the Vicksburg Post as a Top 20 under 40. The selection cited her leadership skills, helping her organization grow, being a role model and giving back to the community.

She is a lifetime member of the Junior Auxiliary of Vicksburg, where she has served as treasurer, first vice president and president.

The ERDC is the premier research and development facility for USACE, with more than 2,500 employees, $1.2 billion in facilities and an annual research program exceeding $1.1 billion. It conducts research in both military and civil works mission areas for the Department of Defense and the nation.

Bolin earns NFLPA status James H. (Jay) Bolin of Butler Snow has met the requirements to serve as a National Football League Players Association (NFLPA) Contract Advisor (NFL Agent). Bolin is a member of the firm’s Product Liability and General Litigation Practice Groups, and the Entertainment and Bolin Media Industry Team.

“There is a need to provide quality representation to professional athletes, amateur athletes, their parents, and coaches in the areas of contract negotiation and legal counsel,” said Bolin. “Becoming a NFL Agent

Courtesy of MSWTC

Awarding the Mississippi World Trade Center’s Barbara Travis Award to Regina Todd (right), Mississippi Development Authority Senior Associate Manager for International Trade, are, from left, Barbara Travis, previous MSWTC executive director; Tracy Diez, current MSWTC executive director; and Carly McKie, MSWTC marketing assistant.

MDA’s Todd wins Travis Award The Mississippi World Trade Center recently awarded Regina Todd, Senior Associate Manager for International Trade (Asia-Pacific Region) for the Mississippi Development Authority, the first Barbara Travis International Leadership & Culture Award and Young Global Professional Development Scholarship at its 2014 Annual Meeting on Nov. 20 at the Country Club of Jackson.

This award was established to honor and commemorate the dedication and service of retired MSWTC Executive Director Barbara Travis during her leadership at the Mississippi World Trade Center.

This award will be given annually.

The Barbara Travis Leadership & Culture Award and Young Global Professional Development Scholarship honors a member of the Young Global Professional Network who has demonstrated a commitment to leadership, cultural involvement, community service, and advocacy for the state of Mississippi.

The Young Global Professional Network is a young professionals group supported by the Mississippi World Trade Center. Regina Todd received this award for her longstanding personal and professional support of the Mississippi World Trade Center’s programs, services, educational and cultural activities and promotion of international trade and investment.

is one step in an effort to provide that service.”

The process for the NFLPA includes a background check, certain educational requirements, knowledge of the collective bargaining agreement and salary cap, and the ability to pass an exam. Bolin passed the exam earlier this year.

Bolin earned a bachelor’s and master’s degree in

accountancy, as well as a Juris Doctor from the University of Mississippi.

He is a member of the American Bar Association, the Defense Research Institute, the Mississippi Defense Lawyers Association, the Mississippi Bar, and the Capital Area Bar Association.

For announcements in Newsmakers; Contact: Frank Brown: (601) 364-1022 • frank.brown@msbusiness.com

Members Exchange gets service award Members Exchange Credit Union, headquartered in Ridgeland, has been honored with a community service leadership award. The credit union received first place in the state in the 2014 Dora Maxwell Social Responsibility Award competition. The award was sponsored by the Mississippi Credit Union Association (MSCUA) and Credit Union National Association (CUNA).

The Dora Maxwell Social Responsibility Recognition Award recognizes a credit union for its community involvement in an activity that helps other people or strengthens the structure of their community. Members Exchange Credit Union’s award entry showcased their scholarship program, which was implemented two years ago. Although the scholarship competition takes academic achievement into

consideration, the emphasis is placed on a student’s volunteer and community service, two elements that are also core to credit union’s philosophy and values.

Mitzi Tate, President/CEO of Members Exchange, stated “We believe by recognizing students for their efforts in giving back to the communities in which they live, we are instilling the fundamental principles of which credit unions were founded; people helping people.”

Members Exchange Credit Union, founded in 1954 with assets over $86 million and nearly 16,000 members, serves the people who live, work, worship, volunteer, or attend school in Hinds, Madison, Rankin, Copiah, or Simpson counties in Mississippi. Members Exchange currently has branches in Byram, Pearl and Ridgeland.

Courtesy of Members Exchange Credit Unionl

Charles Elliott Jr. (second from right) President/CEO of Mississippi Credit Union Association, presents the Dora Maxwell Social Responsibility Community Service Award to Mitzi Tate, president/CEO of Members Exchange. At left is Karen Root, senior vice president of Members Exchange. At right is David Broadaway, AVP Business Development of Members Exchange.

NEWSMAKERS

December 19, 2014

Honea, Hamill on YP panel Lynlee Honea and Dee Hamill of Innovate Mississippi have been named to the Mississippi World Trade Center Young Globals Network Committee.

The Young Globals Network is a professional group committed to fostering a strong and energetic young executive workforce in Mississippi.

Honea is the capital analyst at Innovate Mississippi and has been named chairman of marketing for the Young Globals Network committee.

Hamill is the entrepreneurial development intern at Innovate Mississippi and has been named chairman of young professional recruitment for the Young Globals Network committee.

Honea

Hamill Courtesy Army Corps of Engineers

Scott promoted to manager Dr. Andrea Scott has been selected as the development program manager at the U.S. Army Engineer Research and Development Center in Vicksburg. Dr. Peggy Callaway, director of ERDC’s Human Capital Office, announced. Scott was previously with the ERDC Environmental Laboratory in Vicks- Scott burg, serving as a research chemist.

Her new duties will encompass assessment, design and advancement of curriculum, materials, communications and coordination of employee development activities across ERDC. She will work in hand-in-hand with the ERDC training program coordinator on subjects specific to employee development to enhance ERDC employees’ capabilities and careers for the organization’s growth and success.

Scott’s previous experience includes a stint as a research associate at Jackson State University. She began her career as a research assistant at the Slovak Academy of Sciences, Bratislava, Slovak Republic.

Scott holds a master’s degree in mathematics and chemistry education and a doctorate in inorganic chemistry from Comenius University in Bratislava, Slovak Republic. She is an alumna of the ERDC Leadership Development Program and Emerging Leaders Group. She is a member of several professional organizations, including the American Chemical Society, the Mississippi Academy of Sciences and Sigma Xi. Scott lives in New Hebron with husband William.

Burton joins USM branch Jona Burton recently joined the University of Southern Mississippi as coordinator of student life in the University’s Division of Student Affairs on the Gulf Park campus in Long Beach.

Burton will oversee and assist student organizations, clubs and activities on campus to ensure all students have access to a

Burton

William Goran of the U.S, Army Engineering Research and Development Center in Vicksburg receives the 2014 USACE Climate Champion Award.

ERDC earns environmental award The U.S. Army Engineer Research and Development Center has been selected for recognition under the U.S. Army Corps of Engineers (USACE) Sustainability Awards Program for 2014 and the USACE Environmental Awards for 2013.

William Goran of the ERDC Construction Engineering Research Laboratory in Champaign, Illinois, is the 2014 Climate Champion. Goran was selected for his leadership in integrating climate change into the plans of multiple military and federal agencies, along with development and implementation of climate change adaptation and response plans, both short-term and long-term. During his career, Goran and his colleagues established an interagency forum, now in its eighth year, on climate change impacts and adaptations to these impacts, and created an ERDC team to support the Assistant Secretary of the Army for Installations, Energy and Environment to understand and characterize the risks to Army facilities and missions from changing climate. He also helped organize USACE contributions to the 2014 National Climate Assessment.

ERDC was also selected to receive the 2014 Green Innovation Award for the Engineering with Nature for Sustainable Solutions program. Dr. Todd Bridges accepted the award on behalf of the team, which included staff from ERDC, USACE headquarters, USACE Buffalo, Philadelphia and Mobile Districts, Decision Partners LLC and the American Association of Port Authorities.

Established in 2011, the USACE Sustainability Awards Program, under the Chief of Engineers Awards of Excellence Program, recognizes excellence in sustainability, design and construction.

In addition, ERDC was recognized with the 2013 Environmental Award in Natural Resources Management. Once again, the Engineering With Nature team was recognized, this time for Sustainable Infrastructure Development. Cynthia Banks accepted the award on behalf of the team.

The USACE Environmental Awards Program recognizes excellence in the management of environmental programs that increase environmental quality, enhance the mission and help make the Army sustainable.

range of opportunities that will serve to enhance and deepen their learning experience.

Burton will also serve as a liaison between the Hattiesburg and Gulf Park campuses with the purpose of developing and advancing the career services that are available to Southern Miss students and graduates.

Internships, volunteer opportunities, leadership experiences and career service initiatives are areas that Burton will assist in expanding for the Gulf Park campus community.

With more than nine years of experience in education, Burton’s career has focused on fostering personal and professional development in students.

Burton received her master’s degree in social work from Hunter College School of Social Work and her bachelor’s in social work from Long Island University, both located in New York. She is certified in peer mediation, conflict resolution and life space crisis inter-

vention.

Burton, who serves as a member of the United Way of South Mississippi’s Volunteer Center Advisory Council, says she is “committed to providing positive contributions that assist in student success.”

Troxclair to guide Kemper Mississippi Power today announced that Emile "Chip" Troxclair has been named vice president Mississippi Power’s Kemper development. Troxclair will be the executive responsible for leading the Kemper County energy facility project through the final stages of construction and startup, into ongoing commercial operations.

Troxclair brings more than 34 years of industry experience, primarily in gasification and power genera-

I

Mississippi Business Journal

I

11

tion, to Mississippi Power. He has held numerous leadership positions throughout his career, including serving as vice president for the gasification technology business for CB&I. Prior to CB&I, Troxclair held similar leadership roles with responsibility for licensing, engineering and Troxclair operations for gasification technology, which is used to convert coal or petroleum coke into a hydrogen rich, synthesis gas for power generation, substitute natural gas production and chemicals production.

Troxclair was also involved in the design, startup and operations of Dow Chemical's first commercial coal gasification facility, and later served as plant manager for Destec Energy's Wabash River IGCC power plant. In this role, he was responsible for all operational aspects of the design, commissioning, startup and commercial operations of the plant, and was later promoted to the position of vice president of gasification.

Troxclair holds a bachelor's in electrical engineering from Louisiana State University. He is a native of White Castle, La.

Taylor Farm Woman of Year Carla Taylor, a Prentiss County dairy farmer, has been named Mississippi Farm Bureau Federation Farm Woman of the Year. The announcement was made before state convention activities in December.

Carla, a longtime Farm Bureau volunteer leader, says she appreciates the many ways Farm Bureau supports our nation’s farmers, especially its efforts to carry the farmer’s story to the general public.

Carla serves as women’s chair for Prentiss County Farm Bureau and has also served on the Young Farmers & Ranchers State Committee and the MFBF Board of Directors.

She was selected from among farm women across the nation to participate in the American Farm Bureau Federation’s Women’s Communications Boot Camp in Washington, D.C. The Taylors have three sons, Lee, 7, Carl, 5, and Holden, 4. Along with her husband Bradley’s parents, they operate Taylor Jersey Farm near Booneville. The dairy has one full-time employee.

Taylor Jersey Farm milks 110 registered Jerseys and has 150 calves and heifers. The Taylors also farm pasture/hay and timber. Some of their land is in CRP and some is rented to a neighboring farmer for soybeans.

Carla was a regional YF&R Achievement Award winner in 2013. Her husband, Bradley, received the same award in 2003. The Taylors were recipients of the Young Jersey Breeder Award from the American Jersey Cattle Association in 2013. They market their milk through Dairy Farmers of America, where Bradley serves as a delegate as well as secretary for the Southeast Area Council The MFBF Farm Woman of the Year Award was established to recognize, encourage and reward the achievements of women farmers. The recipient personifies the highest level of professional excellence in agriculture. For more information about the award, contact MFBF Women’s Programs and Ag in the Classroom Coordinator Clara Bilbo at (601) 977-4245.

Or visit the Farm Bureau website at www.msfb.org.

For announcements in Newsmakers; Contact: Frank Brown: (601) 364-1022 • frank.brown@msbusiness.com

AN MBJ FOCUS: GOING GREEN

Let there be

» One of state’s smallest towns im

By LYNN LOFTON mbj@msbusiness.com

The outside of Walnut Grove United Methodist Church is fully illuminated after the LED street light conversion.

Courtesy of Mississippi Power

Walnut Grove in Leake County may be one of the state’s smallest towns, but it’s on the cutting edge of street lighting with the recent addition of LEDs (light emitting diodes) along its streets.

The town of 1,900 residents is at the northern tip of Mississippi Power’s service territory and can now stake a claim as the first town in the company’s 23-county service territory to convert all of its street lights to LEDs.

The project began in early August when 37 lights were upgraded. City officials wanted six additional LED streetlights installed along Main Street to increase visibility. The final 43 streetlights were upgraded at the end of August, and there is an open order to install an additional nine new LED lights, bringing the total to 95 LED streetlights in town.

“We were looking for a better lighting solution for the safety and security of our citizens,” Mayor Brian Gomillion said. “Beyond the safety factor, we receive the added bonus of more efficient

lighting Mississ go all L The were th were a lights. “ sissippi agreed, cient, p Miss Patrick

December 19, 2014 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

be LED Courtesy of City of Byram

Byram kicked off its voluntary recycling program in April with “grab bags” that included plastic bags, key chains, note pads, pens and a brochure..

After 8 months, Byram recycling program growing

By LISA MONTI mbj@msbusiness.com

wns implementing a bright idea

en 37 ix adMain treett, and l nine LED

lution Mayor actor, icient

lighting. We are excited to be leading the way in Mississippi as the first municipality in the state to go all LED street lighting.”

The mayor of two years says the town’s old lights were the yellow residential-type lights and there were a lot of dark spots that needed some type of lights. “I’m big on energy efficiency so when Mississippi Power asked if we’d consider LEDs, we agreed,” he said. “These new lights are energy efficient, plus they put out bright, crisp light.”

Mississippi Power Lighting Services Manager Patrick Leathers said: “We’ve converted street

lights to LEDs in a few of the towns in our service territory over the last two years, but this is the first time we have a town going completely LED. There are a lot of reasons why cities and towns are interested in LED lighting for their streets and we’re happy to provide this service to our customers.”

Mayor Gomillion, who has also switched his home to LEDs, has heard many positive comments about the new lights.

See

The City of Byram’s Ready, Set, Recycle! Program kicked off in April and has been well-received by residents, said Lareka Washington, the city’s grants coordinator. Officials already are looking at expanding hours for the volunteer recycling program.

The program is funded through a grant from the Mississippi Department of Environmental Quality.

Residents have been dropping off their paper, plastic and cardboard at the Public Works Department where a 30-foot bin is housed inside the gate. An attendant is on hand to assist with the disposal of the recycled material and answer any questions.

The current hours are Monday, Wednesday and Friday from 10 a.m. to 2 p.m. except on holidays and every other Saturday from 8 a.m. to noon.

“Feedback from citizens has not been without recommendations and advice, with the main concern being the hours of operation,” Washington said.

Washington said plans are under way for Phase II of the Ready, Set, Recycle! Program, which will include expanding hours at the first location and providing a second drop-off facility with evening hours that are more accommodating to the working public.

To introduce the program, the city provided “grab bags” with an informational brochure, about the program, marketing items and three blue recycle bags to get residents started with their recycling.

LED, Page 14 See

RECYCLE, Page 14

GOING GREEN

14 I Mississippi Business Journal I December 19, 2014

LED

Continued from Page 12

“The residents can’t believe it; it makes things look different,” he said. “I just don’t believe in waste. If we can produce a better product with less, then we should do it. People just feel better with these lights when they’re out at night.

We’re real proud of our LED lighting.”

The town opened a walking trail in October to encourage residents to be healthier, and the LEDs are great in that location. Things are looking up in other

ways too with new holiday lights in Walnut Grove and a large lighted tree in a three-sided park in the middle of town.

Walnut Grove sits on the Leake County-Scott County line and is home to a private prison that was built in 2000. Gomillion says the facility is an asset to the town.

Mayor Gomillion first spoke to local power company utility men Jack Windham and Johnny Barfield about converting to LED lights. Lighting Engineer and Services Analyst Johnny Cook put together a plan and answered

questions from city leaders. District Manager Tommy Jackson said the open communication and responsiveness to the customers’ needs were the keys to this project. “We have heard nothing but praise from Mayor Gomillion, city leaders and residents about the customer service provided on the conversion,” Jackson said. “We do an outstanding job of keeping the lights on for our customers, but when they have a special request, our commitment to customer service is what sets this company apart.”

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Courtesy of Mississippi Power

Lineman Bobby McDill installs LED lighting in Walnut Grove.

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RECYCLE

Continued from Page 13

Washington said the program “grew out of an effort to provide an option for those citizens of Byram and the surrounding area seeking an alternative to disposing of everyday waste.”

Once city officials learned about the opportunity to receive grant funds, the wheels were set in motion for Byram to start its first-ever recycle program.

“The first phase of the recycle program has surpassed expectations,” Washington said. “Since beginning in April, all 5,000 information packets have been disseminated across Byram and have helped in providing awareness and education to those interested in participating.

“One way I’ve been able to measure success is through the number of hauls requested for disposal of the material. It was anticipated the program would start slow and one haul per month would suffice.

Fast forward to today, where hauling is being requested once per week as opposed to once per month.”

The exact number of people recycling isn’t known but Washington said the recycle attendant has reported as many as 30 customers in one four-hour session, and the majority are repeat customers.

“It is estimated that we recycle around two tons of recyclable material per month, resulting in a combined total of 14-15 tons since beginning the program in April,” she said.

The city has contracted with Republic Services to haul the material on an asneeded basis, which has been once a week since the first month of the program. Material is hauled to an approved material recovery facility where it is processed for remanufacture.

So far the city has not profited from the program, but officials haven’t given up on the possibility.

“We will continue to place all energies and focus on educating those who are not familiar with the program and providing quality customer service to our regular customers. Future plans do include some type of monthly rebate that will be reinvestment in the city,” Washington said.

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AN MBJ FOCUS:

ECONOMIC DEVELOPMENT

State leaders optimistic of 2015

By BECKY GILLETTE mbj@msbusiness.com

State business and economic development leaders are optimistic that the sluggish economic recovery from the 2008 recession will kick into high gear in 2015.

At 7.6 percent, Mississippi had the second highest unemployment rate in the country in November. But that is a significant improvement from rates of more than 10 percent in 2011, and there are signs that employment will improve even more in the year ahead.

“Overall, across the nation. manufacturing has come back really strong,” said Jay C. Moon, president and CEO, Mississippi Manufacturers Association. “We are starting to see a lot of reinvestment, including capital equipment purchases. A lot of businesses are looking to re-shore, come back into U.S. from foreign countries. New business will look pretty good in 2015.”

Manufacturing labor costs are still higher in the U.S. than in China, parts of Latin

“After declining in 2014, we expect construction to pick up in 2015. Growth will also improve in retail trade, leisure and hospitality, professional services and health care services.”

Dr. Darrin Webb State economist

American and Eastern Europe. But the major decline in oil prices is a big equalizer.

Moon said since energy costs are a significant factor in manufacturing, lower energy costs are making all the difference in bringing manufacturing jobs back to the U.S. “It is better to manufacture in the U.S.,

in some cases, than in China,” Moon said.

“It is an amazing turnaround that has a very positive impact on our ability in the U.S. to attract business to the area, or bring it back.”

Moon said the cost of transporting goods from China has increased, and orders can be filled 8-10 weeks faster by U.S. manufacturers than those in China. Other positive factors he points to include improvements at the Port of Gulfport to take advantage of the larger container ships that will be coming through the new Panama Canal.

“We are really positioning ourselves well,” Moon said. “We are doing what we need to train the workforce. I think we have some excellent opportunities for 2015.”

The state had good news in November that Nissan Motor Co. is planning to produce 507,000 vehicles a year at its Canton plant by 2017, which would add about 1,000 employees to the current 6,300 workers at the complex. Auto manufacturing continues to add jobs elsewhere in the state, as well.

In Columbus, a hot spot for major large new job creating projects in Mississippi, Golden Triangle Development LINK CEO Joe Max Higgins, said they looking forward to an extremely busy year with just under $3 billion dollars in active prospects with an excess of 4,000 jobs with a range including aerospace, automotive, food logistics and the metals industries.

“In addition, the LINK will unveil its newest advanced manufacturing park, The Innovation District in Oktibbeha County,” Higgins said. “This park will complement the 1,500-acre industrial park in Clay County and the 7,000-acre park in Lowndes County.”

The Tupelo area also continues to see new developments. David Rumbarger, president and CEO of the Community Development Foundation, said 100 people have been hired at the new GRAMMER Inc. plant located at the Tupelo Lee Industrial Park South in Lee County. The company plans to ramp up employment to 350 by the end of the 2015 and eventually up to 650.

“With the projects we have in the pipeline and the staffing up of our newest plant, the GRAMMER Inc., making seating for John Deere, Caterpillar and other equipment companies and the consoles for various BMW and Mercedes vehicles, the prospects for 2015 are bright,” Rumbarger said.

The state’s economy slowed somewhat See

ECONOMY, Page 19

ECONOMIC DEVELOPER CHRISTMAS WISH LIST The MBJ asked: “What is on your economic development wish list from Santa this year?”

David Rumbarger, president and CEO of the Community Development Foundation, was hoping that to continue the recovery, the state would see progress on the Competitiveness Study on Workforce and a robust Governor/Mississippi Development Authority closing fund allocation for the 2015 Legislative session.

“We need the tools to continue to compete with our border states in the next year and years ahead,” he said.

Blake Wallace, executive director, Hinds County Economic Development District, also listed progress on the Workforce Competitiveness study as being on his wish list for 2015.

“Developers across state in conjunction with the Mississippi Development Authority are looking at the things we need to do as a state to be more competitive, no only in incentives, which we usually are, but at how our workforce is trained and how we deliver workforce benefits to clients,” Wallace said. “I’m looking forward to seeing what is coming out of that study and how we advance our state even more by taking advantages of whatever recommendations come out of that study.”

Wallace added that they always have more business on their wish list.

Lyn Arnold, president/CEO, Tunica County Chamber & Economic Development Foundation, said her Christmas wish is for project announcements.

“We are hopeful of more tourism projects and possibly additional manufacturing projects,” she said.

Chad Newell, president, Area Development Partnership, Hattiesburg: “It sure would be nice for Santa to bring a new mega-project for our 2,222 acre Eagle One Mega-Site (www.eagleonmegasite.com).”

Mitch Stennett, president of the Economic Development Authority of Jones County, said his wish is for continued low unemployment. Jones County most recently had an unemployment rate of only 5.5 percent and Stennett considers six percent nearly full employment. He is also hoping that oil prices don’t go so low that they stop pumping from oil wells in Jones County.

Bill Hessell, executive director, Harrison County Development Commission, said his wish list would be more job opportunities with higher wages.

— Becky Gillette

HAPPY HOLIDAYS

It’s that time of year. A time filled with peace, hope, laughter and joy. Regions is thankful to be a part of your community, and we send our best wishes to you and your loved ones during this holiday season. We look forward to serving you throughout the coming year.

1.800.regions | regions.com Š 2014 Regions Bank.

18 I Mississippi Business Journal I December 19, 2014

ECONOMIC DEVELOPMENT

PROFILE

Filling big shoes » Mary Martha Henson brings a variety of experiences to MEDC leadership position

By LYNN LOFTON mbj@msbusiness.com

Although she feels she has some big shoes to fill at the helm of the Mississippi Economic Development Council, Mary Martha Henson brings a wealth of knowledge and experience to the position she assumed less than two years ago. She serves as the executive director and chief operating officer of the statewide organization of economic development professionals.

“Carole (Hardwick, former MEDC executive director) left some big shoes to fill.

She laid the foundation that allows me to take it to the next level,” Henson said.

“We’re providing robust programs for members and have brought in site selectors and Fortune 500 CEOs from all over the U.S.” Henson’s background includes serving on the staff of former Rep. Chip Pickering for eight years in Washington, D.C., where she worked with public policy on health care issues. “It was a great training ground,” she

says of her time in the nation’s capital.

The daughter of John and Elsie Cooper Dixon, Henson grew up in West Point and graduated from Mississippi State University with a business degree. She spent 10 years working with the South- Henson west Mississippi Planning and Development District in Natchez.

There she mainly worked on the funding side of economic development and dealt with work force issues.

Henson says the state is on the right path in investing in work force development. “I want to see that continue; it’s so important to recruiting projects and retaining them,” she said. “I have the most passion for that because I know that’s what is driving our development on the corporate level. Additionally, we have a lot of great things going on – including cultural tourism – and must

keep things on a positive track.”

MEDC doesn’t recruit industries for the state but does work closely with the Mississippi Development Authority in that agency’s recruiting efforts. “MEDC is responsible for the professional development of economic developers across the state,” Henson said. “I always encourage people in the profession to keep up because the profession changes and we must stay up with trends to remain competitive. By making sure our members stay current that ultimately makes their communities more competitive.”

As part of setting the bar high for MEDC members, the organization brings in top-level CEOs for conferences. Henson is excited about the group’s winter conference planned for Feb.4-6 at the Hilton Hotel in Jackson. With the theme Corporate Landscapes: The C-Level View, the conference will feature Fortune 500 CEOs on their first visits to Mississippi. “We want to make sure they have positive experiences here,” she said. “We’ve spent a lot of time

making sure we’re not just having social events at these conferences. We usually have the summer conference on the Coast and have other sessions throughout the state to involve the whole state.”

The winter conference will include three sets of visitors: advanced automotive manufacturers not currently located in the state, corporate tax professionals with lots of expertise, and site consultants who work in international markets. “It’s a big event, and our winter conference sold out last year,” Henson said.

Henson, 38, loves to travel. She did some backpacking in Europe, studied in Italy and was a Rotary Fellow in Brazil. She and husband Brian Henson enjoy traveling together and were recently in Israel. “I enjoy learning about other places and cultures,” she said. “I feel fortunate to have lived and worked all over Mississippi, and I share positive things about the state when I travel. I feel blessed to have been exposed to so much and am thankful for all I’ve experienced.”

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Continued from Page 16

in the fourth quarter from the rapid pace of the second and third quarters. State Economist Dr. Darrin Webb said they expect this slower growth to prevail in early 2015, but then improve through the year.

“Our current projections for Mississippi’s real GDP is a 2.2 percent growth in 2015 compared to a 1.2 percent growth in 2014,” Webb said. “We think we will end 2014 with an employment growth rate of 0.9 percent. This is expected to improve to 1.5 percent in 2015. After declining in 2014, we expect construction to pick up in 2015.

Growth will also improve in retail trade, leisure and hospitality, professional services and health care services.”

Mitch Stennett, president of the Economic Development Authority of Jones County, said a rebound in the housing market was predicted earlier. “It is time for that to happen, hopefully by mid-year,” Stennett said. “That could very positively affect our area and industries, as well as the state. I have a lot of guarded optimism that the prognosticators are correct this time predicting the recovery of the housing market. It is the first-time home buyers who are holding us back. Fewer people have been able to buy their first home. When the firsttime home buyers jump in there, they often buy from someone who is ready to move up to another level. So it has a ripple effect.”

Jones County is one of the top oil producing counties in the state, so the low energy prices are a concern.

“Several of our counties in Mississippi do have a large oil industry,” Stennett said. “If prices stay down, that could adversely affect us.”

On the flip side, Stennett said he hopes consumers will spend some of their gas savings this time of year to help local retailers and the economy. Overall, he sees a better outlook for 2105 than for the past four or five years.

Greater Hattiesburg has a very diverse, vibrant economy and Chad Newell, president, Area Development Partnership, expect the region to continue to gain momentum in 2015.

“During the last four years, our economic development team has tracked 157 projects exceeding $1 billion in capital expenditures and 4,000 new jobs announced,” Newell said. “Green Bay Converting is the largest industrial project coming online during 2015. The company is investing $48 million in our community, which encompasses the construction of a 400,000 sq. ft. facility that will employ 300 over a five-year period.

“We’ll continue to focus on keeping our three economic pillars strong and those sectors include healthcare, education, and the military,” Newell said. “ We are also working closely with Southern Miss officials to proactively market Midtown Hattiesburg.

This is an area at the University’s doorstep that is slated to become a mixed-use development that could include retail, restaurants, a hotel, and a multi-family residential

component.”

Blake Wallace, executive director, Hinds County Economic Development District, was anticipating 2015 to be a continuation of slow, but steady, growth.

“The U.S. economy seems to continue to click along,” Wallace said. “I think that will result in increased activity, at least in the U.S.” On the Coast, Harrison County Development Commission Executive Director Bill Hessell said he believes that the economy will be positive in 2015. Request for information from companies has increased during the last

December 19, 2014

quarter and he expects it to continue throughout next year.

“We just announced the expansion of Gulf Ship and you will see more maritime growth due to our efforts in this sector,” Hessell said. “Maritime and aerospace should be good sectors this coming year. We have spent a lot of time pursuing these companies and the payoff, hopefully, will happen in 2015.”

Gulf Ship purchased the former Future Pipe industrial site and plans to add 100 workers to its 600-person workforce.

Tunica County has one of the highest un-

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employment rates in the state after the closing of one of the county’s largest casino resorts, Harrah’s. Most recently the unemployment rate was about 15.3 percent.

Lyn Arnold, president/CEO, Tunica County Chamber & Economic Development Foundation, sees the economy improving in 2015.

“We are beginning to see quite a bit of activity, and financial resources appear to be more available for projects,” Arnold said.

“Tunica County has a couple of projects that appear very promising for 2015. Activity has remained strong this year and the diversity of projects has been very interesting.”

20 I Mississippi Business Journal I December 19, 2014

TOP 20 ECONOMIC DEVELOPMENT PROJECTS Estimated capital investment

Entity

Type of project

Location

Product

Estimated new jobs

Mississippi Silicon

New

Burnsville

silicon metal

200

$200,000,000

McDermott Interational

New

Gulfport

pipelines

100

$125,000,000

Calbee

New

Senatobia

agribusiness products (gourmet snack foods)

254

$51,100,000

Green Bay Converting

New

Hattiesburg

sanitary towel and tissue products

300

$48,000,000

Borg Warner

Existing

Water Valley

powertrain components and systems

158

$43,000,000

Mars Foods

Existing

Greenville

agribusiness products (Uncle Ben's)

25

$31,000,000

GRAMMER Inc.

New

Shannon

automotive seating and interiors

650

$30,000,000

FNC

Existing

Oxford

mortgage technology

310

$20,000,000

Baptist Medical Center

Existing

Carthage

Williams-Sonoma

Existing

Olive Branch

Hardy Wilson Hospital

Existing

Hazelhurst

healthcare

40

$20,000,000

home products retailer

900

$17,000,000

healthcare

29

$16,000,000

River Region Health Center

Existing

Vicksburg

healthcare

28

$16,000,000

Tower International

Existing

Meridian

automotive metal components

83

$15,000,000

Caterpillar Inc.

Existing

Corinth

large engines

30

$14,800,000

GI Associates

Existing

Flowood

healthcare

8

$14,300,000

Kemira

Existing

Aberdeen

dry polymers

6

$13,900,000

ISA TanTec

New

Vicksburg

leather products

366

$10,100,000

Algix

New

Marion

bioplastic pellets

100

$8,500,000

Great River Industries

Existing

Natchez

fabricated steel plate

25

$4,000,000

General Atomics

Existing

Shannon

equipment for defense, nuclear, oil and energy storage industries

80

$3,500,000

Source: Mississippi Development Authority. List is top state-assisted economic development projects for 2014. For questions, contact Frank Brown at research@msbusiness.com

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December 19, 2014

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» MISSISSIPPI LEADERS by Martin Willoughby

Future leaders Herring building tomorrow by educating today

T

here is no magic formula for being a great leader. Each day brings new opportunities and unforeseen challenges. To excel as a leader takes wisdom. President Calvin Coolidge once said, “Knowledge comes, but wisdom lingers. It may not be difficult to store up in the mind a vast quantity of facts within a comparatively short time, but the ability to form judgments requires the severe discipline of hard work and the tempering heat of experience and maturity.” My interviewee this week, Gary J. Herring is one of those leaders who brings wisdom and experience to the important role of training tomorrow’s leaders. Since 1987, Herring has been Head of School at First Presbyterian Day School in Jackson.

A native of Brandon, Herring grew up in a family of educators. He earned an undergraduate degree in business from Ole Miss and went on to get a Masters of Business Administration from Auburn and Masters of Education in Curriculum and Supervision from Mississippi College. Herring shared, “I believe that my background in accounting, personal management, and finance prior to coming to education was essential in becoming an effective leader in education. Running a school requires the

Up Close With ... Gary J. Herring Title: Head of School, First Presbyterian Day School Favorite Books: I seek to read my Bible or a devotion book every morning. I highly recommend Steve Hutton’s book Pride Aside to all parents with children ages 12 – 25. Other recent books I have enjoyed are The Decline and Fall of IBM (Robert Cringley), The Warren Buffet Way (Robert Hagstrom), and Building a Better School; Essays on Exemplary Christian School Leadership.

Proudest Moment as a Leader: There is no prouder moment in life than to have my two daughters call me “daddy.”

Hobbies/Interests: Golf, hunting, spending time at my tree farm, and with my five grandchildren

same combination of principles as running a business (i.e. the management of people, money, and facilities for the accomplishment of set goals and strategic plans).”

Herring credits his predecessor Joe Treloar with helping to shape him as a leader. Herring said, “Treloar was a true southern, soft spoken, giant of a man. I spent a year under his tutelage. Every morning he would sit me down and explain how decisions were made and the reasons behind them.” Herring continued, “My father was a teacher and principal in Brandon. He was a godly example of

how one treats other people.” Herring has great perspective on the role of education in our society. He shared the old proverb that says “we educate our children not for today or tomorrow, but for seven generations in the future.” Herring explained, “No matter if we are public school administrators or Christian school leaders, we must realize that we educate for eternity.”

A man of faith, Herring begins each day seeking wisdom through study and prayer.

He said, “I try to follow the principles that I find in Proverbs. “The fear of the Lord is the

“No matter if we are public school administrators or Christian school leaders, we must realize that we educate for eternity.”

Gary Herring

beginning of wisdom.”

(Proverbs 9:10). Herring also relies on old fashioned “good sense.” He explained, “Sometimes I find that common sense is the best solution to difficult issues. There Martin Willoughby are times where rules and policies do not fit certain circumstances, and I must use my God-given common sense.” Herring also believes in not asking anyone to do anything that he is not willing to do himself. He said, “I don’t ask anyone to go where I am not willing to go ahead of them.” Herring also recommends hiring talented people and not micro-managing them. He said, “I believe in hiring very competent people and letting them do their jobs without interference.”

Herring believes in genuinely caring for those with whom he works. He shared, “Other people will accept your instruction or correction if they believe that you care about them. Parents will support an administrator’s decisions they don’t particularly like, if they know he or she loves their child. I believe the same is true for employees. You must care about them personally and demonstrate that.

When employees hurt, you must hurt with them.” There are thousands of children that have been positively impacted over the years by Herring’s leadership, vision, and wisdom. I am thankful for servant leaders around the state of Mississippi like Herring who are on the front line in developing tomorrow’s leaders.

Martin Willoughby is a business consultant and regular contributing columnist for the Mississippi Business Journal. He serves as Chief Operating Officer of Butler Snow Advisory Services, LLC and can be reached at martin.willoughby@ butlersnow.com.

Coming-of-age story unfolds along with the Great Depression

T » The Yonahlossee Riding Camp for Girls

By Anton DiSclafani Published by Penguin Group $16.00 paperback

his book will definitely be one of my favorites for this year. I like it for several reasons. First, it's an interesting story that's told well. There's a family tragedy and 15-year-old Thea Atwell is held responsible; so much so that her family sends her away to the Yonahlossee Riding Camp for Girls deep in the Blue Ridge Mountains of North Carolina. But it isn't just a summer camp; it's also a year-round boarding school for Southern girls from wealthy families. The time is 1930 and as the country is teetering on the Great Depression, the girls at Yonahlossee are shielded from its realities — at first.

The author subtly weaves in the details of what happened to Thea and her family, rather than starting at the beginning and reporting the facts sequentially. This method forces the reader to think and pay attention, staying alert for clues to figure it out. A less talented writer wouldn't have let the story unfold this way.

I also liked immersing myself in the lives of these girls and their families during a time of national upheaval. Reading about the rules and values of that era were not so entirely distant from my own girlhood in the slow changing Southern landscape. It brings back memories of all-girl summer camps. Any woman who attended these camps or all-girl schools will identify with the dynamics that immerse Thea at Yonahlossee as

she tries to come to grips with her role in her family's events of the past year. At Yonahlossee Thea's eyes are opened to the realities of a larger world that will change her sense of what's possible for herself, her family and her country.

Another great part of this book are the elements of the equestrienne prowess of Thea and some of the other girls. The love of horses and the discipline and competition of riding play a role in the school's rituals. The author, a creative writing teacher at Washington University, was raised in northern Florida where she rode horses and competed nationally. Amazingly, this is her first book.

“Engrossing, empathetic, and atmospheric, this debut will resonate with readers as the author eloquently portrays the inevitable missteps in coming of age. Highly recommended.” Library Journal starred review.

— Lynn Lofton, mbj@msbusiness.com

22 I Mississippi Business Journal I December 19, 2014 THE SPIN CYCLE website can be viewed at www.pncchristmaspriceindex.com.

Each year, educators across the country use the CPI to teach economic trends to middle and high school students. With that in mind, this year’s site includes interactive activities, annual results and PNC CPI trends in a Flash presentation, MP3 downloads and much more.

Educators who visit the site will also find Swans Treading Water lesson plans on the Christmas Price Index Much like the govfrom The Stock Market GameTM (SMG), ernment’s CPI, the a program of the Securities Industry and FiPNC CPI also measnancial Markets Association Foundation for ures a Core Index – Investor Education (www.sifma.org/educaup 1.4 percent this tion). The enhanced activities are specially year – that excludes designed to help students identify economic the Swans, which trends and to project their impact on this tend to be the most Todd Smith year’s Index, giving them the opportunity to volatile in the index. make predictions and check their success This year, however, against actual results. SMG is America’s prethe Swans remained steady at $7,000, which mier educational stock market simulation. is also the same price they cost in 1984, the Available in all 50 states for grades 4-12, the first year of the index.

SMG program teaches children core academic and investment skills.

Other Key Components Include: » Same As Before: Two Turtle Doves, Four Golden Mic | Ebola Doctors Take Time ‘s Calling Birds, Five Gold Rings, Seven Swansa-Swimming Eight Maids-A- ‘Person of the Year’ Honors, Grab Gold As the Ebola outbreak in West Africa Milking, Nine Ladies Dancing, 11 Pipers turned into an epidemic, brave men and Piping and 12 Drummers Drumming held women from all over the world put their steady at last year’s prices. lives at risk to treat victims in Liberia, » That’s Entertainment: True Loves can Guinea, Sierra Leone, Nigeria, Mali, Spain, splurge on entertainment this year. Of all the gifts in the entertainment category, only Germany, and the United States. As a result, the 10 Lords-a-Leaping saw any increase, Time magazine has given its annual Person of and by just a meager 2 percent. Nine Ladies the Year award to those fighting the epiDancing, 11 Pipers Piping and 12 Drummers demic. “For tireless acts of courage and Drumming stayed on par with their costs in mercy, for buying the world time to boost its defenses, for risking, for persisting, for sac2013. » Pear Tree: Housing and fresh fruit prices rificing and saving, the Ebola fighters are have been up recently, so the Pear Tree saw Time’s 2014 Person of the Year,” wrote Editor a two percent increase, driving the cost of Nancy Gibbs. Ebola is a war, and a warning. the Partridge in a Pear Tree up 3.8 percent The global health system is nowhere close to strong enough to keep us safe from infecfrom last year. » Maids-a-Milking: As the only unskilled la- tious disease, and “us” means everyone, not borers in the PNC CPI, the price for the just those in faraway places where this is one eight Maids-a-Milking is represented by the threat among many that claim lives every minimum wage. With the Federal mini- day. The rest of the world can sleep at night mum wage flat at $7.25 per hour, hiring the because a group of men and women are willmaids this year will not increase labor costs. ing to stand and fight. This group of people The PNC CPI’s sources include retailers, beat out the bare-chested braggadocio of the National Aviary in Pittsburgh and the Vladimir Putin, who continued to leave a Philadelphia-based PHILADANCO mark on the world stage with his slow-motion takeover of Ukraine – not nearly the and the Pennsylvania Ballet Company. golden accolades as these brave Ebola fighters!

Cyber Prices Up 8 percent: Each week, The Spin Cycle will bestow a The Cost of Convenience Golden Mic Award to the person, group or For those True Loves who prefer the con- company in the court of public opinion that venience of shopping online, PNC Wealth best exemplifies the tenets of solid PR, marManagement calculates the cost of “The keting and advertising – and those who Twelve Days of Christmas” gifts purchased don’t. Stay tuned – and step-up to the mic! on the Internet.

And remember … Amplify Your Brand!

This year, the trends identified in the traditional index are not repeated in the Inter- Todd Smith is president and chief communinet version. True Loves will pay a grand total cations officer of Deane, Smith & Partners, a fullof $42,959.07 to buy the items online, a sur- service branding, PR, marketing and advertising firm prising increase of 8 percent from last year, with offices in Jackson. The firm — based in Nashville, $15,285 more than buying “in person.”

Tenn. — is also affiliated with Mad Genius. Contact him at todd@deanesmithpartners.com, and follow him Special Present: Updated Website @spinsurgeon.

For a historical look at CPI, the updated

Annual Christmas Price Index details cost of ‘Twelve Days of Christmas’ ith energy costs tumbling and inflation remaining calm, the annual Christmas Price Index® experienced a mild 1 percent boost in the 31st annual tongue-in-cheek economic analysis, according to PNC Wealth Management, which conducts the annual Christmas survey. Based on the gifts in the holiday classic, “The Twelve Days of Christmas,” the price tag for the PNC CPI is $27,673.22 in 2014, just $280.05 more than last year – and the smallest increase since 2002 when the index fell 7.6 percent.

Launched in 1984 by a PNC predecessor bank in Philadelphia, the 2014 PNC CPI is 118 percent higher than when it all began, while inflation is up 127 percent over the same period.

But an even more intriguing fact emerged, according to Jim Dunigan, chief investment officer, PNC Wealth Management.

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“While there are exceptions in given years, what’s most interesting about the index’s history is that since the beginning, year-over-year increases have averaged 2.8 percent, which is exactly the same number as the U.S. inflation index,” he said.

The 31st annual survey results were revealed recently on an enhanced website (www.pncchristmaspriceindex.com) with the theme of bringing the classic carol to a new generation. ”The Great Carol Comeback” site features 12 innovative experiences that bring each gift in the song to life in a new and modern way.

Content includes a children’s book, an animated short film, a sing-a-long and several humorous musical videos that site visitors can share to help the carol’s “comeback.”

This year, the PNC CPI’s increase is close to the government’s Consumer Price Index,

which stands at 1.7 percent for the past 12 months through October. The government’s core index, removing volatile food and energy prices, is up 1.8 percent.

“The recurring theme seems to be that with energy prices and labor costs contained, the overall index increase has been modest despite a few large increases in individual items,” Dunigan said.

Eight out of the 12 items in the index remained the same price as last year, but the Six Geese-A-Laying went up a whopping 71.4 percent. The only other increase of significance was the Partridge in a Pear Tree, which increased 33.3 percent but is at a still reasonable $20.

As part of its annual tradition, PNC Wealth Management also tabulates the “True Cost of Christmas,” which is the total cost of items gifted by a True Love who repeats all of the song’s verses. Very thought-

The 2014 PNC CPI is 118 percent higher than when it all began, while inflation is up 127 percent over the same period. ful True Loves must fork over $116,273.08 for all 364 gifts, a much more reasonable increase of 1.4 percent compared with last year’s 6.9 percent.

SALES MOVES

December 19, 2014

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» JEFFREY GITOMER

’Tis the season to be jolly?

L

et’s see, there’s summer, fall, winter, spring, and uh, jolly. For the uninformed, the jolly season started around Thanksgiving and goes all the way until Christmas. Or what used to be called Christmas. Now it’s called the holiday season to make certain that no one is offended.

The jolly season or the holiday season is SUPPOSED to start the day AFTER Thanksgiving, but it now actually starts the day of Thanksgiving because people just can’t seem to wait to be jolly.

And it seems as though, regardless of our current “jolly” directives, there are always a few spoilers: people who just refuse to be jolly no matter what. People like politicians, governments fighting one another, sending their soldiers or their armies to kill one another, employees that are having to work longer hours during the “jolly-days” and then there are the people that don’t have enough money to buy stuff on the jolly-days.

What constitutes jolly?

Shopping? Traveling in super-crowded airports?

End of the year tax planning?

Goals to lose weight or get in shape?

It’s kind of a mixed jolly season when you think about it.

One that presents from Santa and a family dinner may not fulfill.

Whatever the circumstances in your world, the likelihood is that there is not enough “jolly.” Or the jolly is somewhat hypocritical. Or the jolly is somewhat contrived. Or the jolly is somewhat insincere. Regardless of the Jeffrey Gitomer jolly type, there remains a root of jolly season and process.

Jolly is the happiness that springs forth eternally, and creates a jolly attitude or a jolly mindset. Jolly is HERE (point to head) not here (jiggle belly).

So, here’s my jolly message: I think jolly should be all the time. Why wait for Thanksgiving? Why wait for the holidays? And when the season is over, are you going to go back to being pissed off, or are you going to try to maintain jolliness?

Do you think you could have a jolly year instead of just a jolly season? That kind of makes more sense doesn’t it?

Why is the month of December the “jolly month”? When does jolly actually start? Why isn’t May as jolly as December? Why isn’t this the YEAR to be jolly, or for that matter, the lifetime to be jolly?

I’m asking because I have dedicated my life to being jolly, and I challenge you to do the same.

Jolly is not just a gift, or a family dinner, or a holiday tree, or singing a few songs, or a season – jolly is an attitude – and it’s an attitude for all seasons.

Here are a few jolly things to consider as you look to “put” and “be” jolly in the new year: • Jolly about yourself.

• Jolly about your life.

• Jolly about your relationships.

• Pride in what you’re doing.

• Love of what you’re doing.

• Desire to be the BEST at what you’re doing.

• Knowing the purpose behind what you’re doing (your REAL WHY).

These elements will give you the freedom to find internal jolly – also known as internal happiness.

Here’s a short excerpt from The Little Gold Book of YES! Attitude. It substitutes the word HAPPY for the word JOLLY, but the meaning is the same. It explains the urgency of self-imposed happiness as it relates to your success. Please don’t just read or listen, please apply it.

The truth is, the fact is, the reality is, there’s no better time to be happy than right now.

If not now, when? After the economy gets better?

You may not be able to wait that long.

Your life will always be filled with challenges,

barriers, and disappointments. It’s best to admit this to yourself, and decide to be happy anyway.

Alfred Souza said, “For a long, long time it had seemed to me that I was about to begin real life.

But there was always some obstacle in the way, something to be gotten through first, some unfinished business, time still to be served, a debt to be paid. Then life would begin. At last it dawned on me that these obstacles were my life.”

There is no “way” to happiness.

Happiness is the way.

There is no “after” to happiness Happiness is now.

Here’s the answer: It’s inside your head FIRST and everyplace else second. Happiness is a treasure. Your (missed) opportunity is to treasure every moment that you have.

I wish you the jolliest of seasons and the best jolly happy healthy New Year possible.

Jeffrey Gitomer is the author of “The Sales Bible”, “Customer Satisfaction is Worthless” “Customer Loyalty is Priceless”, “The Little Red Book of Selling”, “The Little Red Book of Sales Answers”, “The Little Black Book of Connections”, “The Little Gold Book of YES! Attitude”, “The Little Green Book of Getting Your Way”, “The Little Platinum Book of ChaChing”, “The Little Teal Book of Trust”, “The Little Book of Leadership”, and “Social BOOM!” His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at salesman@gitomer.com.

BANKING AND FINANCE

Renasant beefs up in Georgia with $258M purchase of HeritageBank » Analysts say deal price is reasonable but does not seem to be a bargain

By TED CARTER ted.carter@msbusiness.com

Tupelo’s Renasant Bank continued its march through Georgia last week with a definitive agreement to acquire Albany’s $1.9 billion Heritage Financial Group Inc., parent of HeritageBank of the South, through a stock purchase.

Renasant, which a couple years ago began establishing a presence in North Georgia with acquisitions in Blairsville and suburban Atlanta, will gain entry to a number of localities elsewhere in Georgia. In addition to Albany, Renasant will get bank branches in the South Georgia cities of Statesboro and Savannah.

Based on the publicly held Renasant’s 20day average closing price of $29.14 per share

as of Dec. 9, the aggregate deal value is about $258 million, or $27 per share. Heritage stockholders are to receive 0.9266 shares of Renasant common stock for each share of Heritage common stock.

The transaction will give Renasant about $7.5 billion in total assets, $5.2 billion in gross loans and $6.1 billion in deposits with 171 banking, mortgage, insurance, wealth management and investment offices in Georgia, Mississippi, Alabama, Tennessee and Florida.

Analysts with Sterne Agee say they expect the acquisition will benefit Renasant EPS by 11 percent, even though the balance sheet will grow by 23 percent of the assets. “Given the lack of strategic fit, we would have preferred a much more financially attractive deal given Heritage’s concentration in mortgage

and the weaker demographic trends of its footprint,” Sterne Agee said in a flash note shortly after the acquisition announcement.

Pricing seems reasonable but not reflective of a bargain, the analyst report said.

The acquisition could move Renasant closer to becoming a seller, the analysts noted. Renasant “will have $7.6 billion of assets on a pro forma basis, which is much closer to the troublesome $10 billion asset mark. As a result, Renasant could become a target within a year or two,” the report predicted.

With the deal, Renasant will gain $1.2 billion in loans and $1.3 billion in deposits, and 48 banking, mortgage and investment offices in Alabama, Georgia and Florida, including Heritage’s pending previously announced branch acquisition from The

PrivateBank and Trust Company of a branch in Norcross, Ga. O. Leonard Dorminey, president and CEO of Heritage, will join Renasant as executive vice president and serve as the president of Renasant’s Georgia region. He has been with HeritageBank since 2001 and has served as president and CEO of Heritage since 2003. Dorminey began his career in banking as a lender more than 32 years ago.

The acquisition is expected to close in the third quarter of 2015 and is subject to Renasant and Heritage stockholder approval as well as regulatory approval.

Renasant in October reported the highest quarterly income increase in its 110-year history. Third quarter earnings went from $6.6 million in the third quarter of last year to $15.5 million in this year’s third quarter, the banking company said.

The multi-state Tupelo banking company attributed a similar earnings spike in the second quarter (from $8 million in Q2 2013 to $14.8 million in Q2 this year) to its takeover of Kosciusko’s First M&F Bank. The acquisition added $1.6 billion in assets and 42 banking and insurance locations throughout Renasant’s Mississippi, Alabama and Tennessee market.