Toyota 02262017

10 YEARS IN NORTHEAST MISSISSIPPI

A supplement of the Northeast Mississippi Daily Journal DAILY JOURNAL

SUNDAY, FEBRUARY 26, 2017

|

1E

A DECADE IN THE MAKING Toyota, Northeast Mississippi mark 10-year partnership

BY DENNIS SEID

Two months earlier, the Japanese automaker had committed to building a n April 18, 2007, for- new assembly plant in mer Toyota Motor Blue Springs.

North America Press spoke at the President Jim Press groundbreaking ceremony called the relationship be- on that April day, beaming tween Toyota and Northwith excitement and anticeast Mississippi a ipation. “marriage.”

“This is truly a marriage

O

DAILY JOURNAL

– a marriage of cultures, a marriage of futures and a marriage of our characters,” he said.

Press said Toyota wanted to plant the seeds “that will propel this region, this union, to the future of global competition.”

Toyota’s arrival ushered in a new economic era to

the region, which had long been a manufacturing center.

The automotive industry had begun.

Nearly 1 million cars later, we take a look at the past, present and future of that relationship between Toyota and Northeast Mississippi.

3E

SHALL WE DANCE?

7E

TOYOTA LOOMS LARGE AT THE EPICENTER OF FURNITURE

8E

SUPPLIER MAKES BIG IMPACT ON SMALL COMMUNITY

THOMAS WELLS | BUY AT PHOTOS.DJOURNAL.COM

‘Toyota has been everything we hoped for.’

Randy Kelley executive director, Three Rivers Planning and Development

10E

TOYOTA MISSISSIPPI’S NEW PRESIDENT

2E

|

SUNDAY, FEBRUARY 26, 2017

10 YEARS IN NORTHEAST MISSISSIPPI

DAILY JOURNAL

Let’s go places: Region and Toyota have done that

I

t’s been 10 years – 3,652 days – since Toyota Motor Co. announced to the world that it was building an automotive assembly plant in Blue Springs.

My, how things have changed.

Toyota’s current slogan is, “Let’s go places,” and that’s certainly true for what Northeast Mississippi and the Japanese automaker have done during the past decade.

It’s not exactly fair to call it a rollercoaster, but let’s just say the ride has taken a few twists and turns along the way.

First, we have to take a snapshot of what the economy looked liked in 2007.

At the time Toyota made its announcement, the U.S. economy seemed to be in good shape at first glance. Auto sales in the U.S. reaches 16.6 million in 2006. The gross domestic product in the fourth quarter of 2006 was a healthy 3.5 percent; for the year, the economy had grown 3.4 percent, twotenths better than a year earlier.

The Federal Reserve held steady for the sixth consecutive time. The federal funds rate was at 5.25 percent. And no, that is not a typo.

The unemployment rate in Northeast Mississippi was a little over 7 percent. Gas was selling for about $2.25 a gallon. The Dow Jones Industrial Average was around 12,600.

But there were some troubling signs bubbling beneath the surface.

Housing starts in February of that year had hit a 10-year low. New building permits in January had fallen for the 11th time in 12 months.

Manufacturing in Northeast Mississippi, like much of the country, was taking hits.

The Alan White furniture company in Shannon announced its closure and layoff of 300 workers. Sara Lee said it was closing the iconic Bryan Foods plant in West Point, laying off the last of its 1,200 employees. Bauhaus said it was closing its Iuka furniture plant, putting 150 out of work.

By the end of the year, the country would enter a recession – later deemed the Great Recession, as it eventually became the deepest economic setback since the Great Depression 80 years earlier. But Northeast Mississippi entered the downturn later – which also meant it exited later.

Unemployment in the region for all of 2007 was 7.2 percent, but by 2008, it had would rise to 8.2 percent.

In the summer of 2008, Toyota announced it would build the Prius hybrid

instead of the Highlander SUV it has originally planned. By the end of the year, the automaker said it would delay the opening of the plant indefinitely until the economy improved.

For Northeast Mississippi, it took a while.

DENNIS From 2009 until 2011, SEID the unemployment rate was in double-digits for 34 of those 36 months.

The recession had officially ended June 29, but the economy overall in the U.S. was stagnant. According to the Department of Labor, about 8.7 million jobs were shed from February 2008 to February 2010, and GDP contracted by 5.1 percent. Steady job growth wasn’t experienced until late 2011.

But as mentioned earlier, Northeast Mississippi – and the rest of the state – lagged behind.

By 2010, there were worries that Toyota might not open its plant. A massive recall of Toyota vehicles in the early part of 2010 created more concern.But with more than $300 million already invested in the plant, it was too late to back out.

State and local officials were assured by Toyota, however, that the company was committed to the facility.

As it turned out, Toyota never missed a commitment – financial or otherwise – it had made to the state.

And in June of that year, the company said it was restarting operations. Within 16 months, Toyota Mississippi rolled out its first Corolla.

Now, more than 850,000 cars later, the plant seems to have hit its stride.

It made 500,000 cars at the fastest pace of any Toyota plant in history two years ago. And later this year, it will hit the 1 million mark.

Yes, Toyota and Northeast Mississippi have gone places. Who knows what the next decade or two will bring?

Look at what Toyota has done so far.

Some 2,000 jobs at the plant, with suppliers adding that many more. It’s donated more than $3 million to area nonprofit organizations. And let’s not forget the $50 million it pledged to the school systems in Pontotoc, Union and Lee counties ($35 million has been given so far).

To use some old Toyota slogans from the past, “Oh, what a feeling!” and “Who could ask for anything more?”

|

TOYOTA MISSISSIPPI

• 170,000 Corollas produced annually • 850,000+ cars since start of production • One millionth Corolla by the end of the year • $961 million total investments since 2011 • Over $3 million donated to area nonprofits |

|

• 25,000 volunteer hours donated to area nonprofits • $567,960 in-kind (vehicles for education/workforce development and industrial kitchen equipment) donations to area nonprofits

U.S. COROLLA SALES

|

THOMAS WELLS | BUY AT PHOTOS.DJOURNAL.COM

Toyota Mississippi rolls out a Corolla every 73 seconds.

U.S. SALES OF THE COROLLA DURING THE PAST 17 YEARS

2000 – 230,156 2001 – 245,023 2002 – 254,360 2003 – 325,477 2004 – 333,161 2005 – 341,290

2006 – 387,388 2007 – 371,390 2008 – 351,007 2009 – 296,874 2010 – 266,082 2011 – 240,259

2012 – 290,947 2013 – 302,180 2014 – 339,498 2015 – 363,332 2016 – 360,483

DAILY JOURNAL

10 YEARS IN NORTHEAST MISSISSIPPI

SUNDAY, FEBRUARY 26, 2017

|

3E

Shall we dance?

Toyota and Northeast Mississippi tango

BY DENNIS SEID DAILY JOURNAL

BLUE SPRINGS – The effort to land Toyota Motor Corp. in Northeast Mississippi was an immense undertaking, involving scores of officials from the Japanese automakers, area elected officials and economic development leaders.

It’s common practice to assign a project a name, and for Toyota, it was initially called “Project Tango.”

But some thought if word leaked about the project – after all, it was well-known at the time that the Wellspring Project site was designed to attract an automaker – “Tango” might be associated with “Toyota.”

And so “Tango” became “Galaxy.”

But it remained a dance in many ways, as area leaders worked tirelessly to market the site, located near the small Union County town of Blue Springs.

Getting the Tennessee Valley Authority to certify it as a megasite – only the third at the time – in January 2005 raised the profile of Wellspring.

In May of that year, a contingent representing the Pontotoc-Union-Lee Alliance, or PUL, attended the World Automotive Congress in Barcelona.

Armed with marketing materials, they wanted to catch the eye of an automaker looking to expand in North America.

And Toyota was their top target.

lation was that the company would look to expand in North America.

“Without Haley Barbour, we wouldn’t be here today,” Cuneo said. “If you ask me one key factor, it was him. He cannot only sell it, he can back it up.”

Cuneo canceled his first visit to the state, which had been scheduled for May 2006. He returned two months later, meeting with Barbour; Rumbarger; former Tupelo mayor and former TVA chairman Glenn McCullough Jr. (who is now MDA executive director); and then-CEO and Chairman of BancorpSouth Aubrey Patterson.

They pitched Wellspring to Cuneo and then took him to visit Cooper Tire in FILE PHOTO Tupelo.

Cuneo said he was conFormer U.S. Sen. Trent Lott, left, former Gov. Haley Barbour and Toyota executives, from left of center, Seiichi Sudo, Gary Convis and Ray Tanguay celebrate the an- vinced Wellspring was the site Toyota needed to look nouncement of Toyota’s development of the Wellspring Project. at closely.

“They confirmed what I “It was my top priority in facturers and employees to helped market the Wellspring site. saw that day and then ... find out more about the landing an economic deWhen Toyota started others came down and did area. velopment project when I scouting again for a new their due diligence,” But it wasn’t the first became governor,” said vehicle assembly plant, Cuneo said. “We all time Toyota had taken a Haley Barbour, who was Northeast Mississippi was thought this might be a look at Northeast Missiselected to his first term in good place for a plant. We sippi. Several years earlier, prepared.

2003. “It was clearly the really felt this community the company was looking most sought-after project to build a truck assembly in the United States.”

KEEPING IN TOUCH wanted it and needed it.”

Toyota also had replant; the facility went to “Early on Toyota knew Even though the first efSan Antonio. very clearly that Missisfort to land Toyota was un- viewed other Mississippi sites including Como, TuAnd at that time, Wellsippi was very interested successful, state officials nica and Meridian, but spring was only a concept. maintained contact with and committed to what Cuneo said the company “Toyota flew over the would then be the next the automaker. site, but they told us we Toyota assembly plant” Dennis Cuneo, a former turned its focus on Blue Springs in September just didn’t have enough in- Toyota senior vice presiBarbour took office in 2006.

2004 and within two years, formation at the time,” dent, was involved in the That same month, Barsaid David Rumbarger, Northeast Mississippi got search for a new site. bour spoke at a conference president and CEO of the Toyota to pay a visit to the Barbour contacted Tupelo-based Community Cuneo in spring 2004 soon in Tokyo. He met with Toyarea. ota officials there. It was Development Foundation, after he took office. At the In fact, starting in 2006, Toyota representatives vis- the economic developtime, Toyota had not made Barbour’s second visit to the Japan in as many years. ment agency for Tupelo ited the area 16 times. a decision to build a new They talked to area manu- and Lee County. CDF also plant, but industry specu- Before Hurricane Katrina

devastated the Gulf Coast in August 2005, Barbour had made a much-publicized trip through Asia, including South Korea and Japan.

By the time he returned to Japan a year later, Barbour had already had several discussions with Toyota’s site-selection team.

In early January 2007, speculation swirled that Wellspring was on the short list of candidates for Toyota, but the frontrunners were sites near Marion, Arkansas, and Chattanooga, Tennessee.

“Blue Springs – Wellspring – wasn’t even mentioned,” Barbour said. “But we knew we were being seriously considered. We just didn’t tell anybody.”

And it wasn’t until Sunday morning, Feb. 25, 2007, that Barbour got the news he was hoping for.

Toyota’s board had made it’s choice – Blue Springs – but they asked Barbour to keep the news a closely guarded secret.

Two days later, at the Tupelo High School Performing Arts Center, the official announcement was made.

“Toyota asked us to keep it confidential; they put deep value in you keeping your word,” Barbour said.

“We told them we would keep quiet, and we did that ... we did that during the entire process, and I think they appreciated that.”

The “Tango,” it seems, was a well-choreographed dance that turned out nicely, ushering in the automotive industry to Northeast Mississippi.

4E

|

10 YEARS IN NORTHEAST MISSISSIPPI

SUNDAY, FEBRUARY 26, 2017 |

DAILY JOURNAL

KEY DATES IN THE TOYOTA MISSISSIPPI HISTORY

|

cation process for hourly product workers; more than 41,000 people have applied. Production also begins.

• NOVEMBER: Toyota has “lineoff” ceremony to officially mark production of the first Mississippi-made Corolla.

2000

• AUGUST: State legislature passes Advantage Mississippi legislation that creates a vehicle for establishing regional alliances.

2001

• SEPTEMBER: Initial organizational meeting of Pontotoc, Union and Lee counties to form the PUL Alliance.

• NOVEMBER: PUL Alliance applies to Mississippi Development Authority for alliance approval.

2013

• APRIL: Officials power up the plant’s solar panel project, which provides 50 kilowatts of peak energy – enough to power seven homes. It’s the fourthlargest solar project in the state.

2002

2014

• MARCH: Initial site search and evaluations started by PUL, MDA and Tennessee Valley Authority.

THOMAS WELLS | DAILY JOURNAL

President Akio Toyoda and then-Gov. Haley Barbour show off the first Corolla built in Blue Springs.

The Wellspring Project megasite where Toyota Mississippi is located encompasses 1,700 acres.

2003

• MAY: Blue Springs identified, and preliminary site development engineering begins.

• SEPTEMBER: PUL Alliance formation approved by MDA. • October: MDA award PUL a $250,000 preliminary site development engineering grant for site.

2004

• MAY: The site is submitted into TVA’s megasite certification program.

• NOVEMBER: Land options with the site’s 21 land owners and 1,700 acres are secured.

• DECEMBER: Environmental and cultural studies completed and cleared.

2005

• JANUARY: The site, officially

named The Wellspring Project, becomes third TVA-certified megasite.

• MAY: The Wellspring Project is introduced to the automotive industry at the Automotive World Congress in Barcelona, Spain.

• JUNE: Wellspring is introduced to the Southern Economic Development Council Automotive Seminar in Birmingham.

2006

• JULY: Dennis Cuneo, Vice President of Toyota’s North American operations, visits the Wellspring site. He suggests to the company that it look at the site.

2007

• FEBRUARY 27: Toyota selects Wellspring as the site for its eighth North American assembly plant, which will build the Highlander crossover SUV • APRIL: Toyota breaks ground on Toyota Motor Manufacturing Mississippi, or TMMMS. • AUGUST: Toyota Boshoku announces it will be a supplier and build a plant near the Dorsey community in Itawamba County.

• SEPTEMBER: Toyota Auto Body

2008

From left, Chairman and CEO of Toyota Boshoku Corporation Nate Furuta, President of Itawamba County Board of Supervisors Dan Holley, President of Toyota Boshoku Corp. Shuhei Toyoda, thenGovernor Haley Barbour and his wife Marsha Barbour hold shovels of dirt symbolizing the groundbreaking for the Toyota supplier in Itawamba County.

says it will build a supplier plant in Baldwyn; the operation will be called Auto Parts Manufacturing Mississippi.

• DECEMBER: The first of 500 support columns is placed at TMMMS.

• MARCH: Vuteq announces it will be a supplier in New Albany.

• JULY: Toyota says TMMMS will build the Prius hybrid instead of the Highlander.

• DECEMBER: Toyota says plant construction will be finished, but the opening of the plant will be delayed indefinitely due to the global economic downturn.

2010

• JANUARY: Toyota says TMMMS will open when economic recovery “hits full stride.”

• MAY: TMMMS makes first of 10 $5 million pledges to the Toyota Wellspring Education Fund.

• JUNE: The automaker says it will resume work on Blue Springs plant, which will produce the Corolla sedan.

• JULY: APMM in Baldwyn announces its restart.

• AUGUST: Toyota begins application process for workers for TMMMS. • DECEMBER: Toyota Boshoku Mississippi restarts operations.

2011

• OCTOBER: TMMMS closes appli-

• APRIL: TMMMS begins exporting Corollas to 18 countries in Central America, South America and the Caribbean.

• NOVEMBER: Toyota Mississippi wins the McLean Award for Philanthropy by the CREATE Foundation.

2015

The 500,000th Toyota Corolla was built at the Blue Springs facility in 2015.

• FEBRUARY: TMMMS produces 500,000th vehicle, the fastest of any Toyota plant to reach that milestone.

2016

• JUNE: The Corolla is the highestranked compact car, according to the J.D. Power Initial Quality Study.

• OCTOBER: Toyota Mississippi marks fifth year of production; the plant has assembled more than 800,000 vehicles at this point.

10 YEARS IN NORTHEAST MISSISSIPPI

DAILY JOURNAL

SUNDAY, FEBRUARY 26, 2017

|

5E

Landing Toyota plant ‘changed the dynamic’

BY DENNIS SEID DAILY JOURNAL

In the late 1990s and early 2000s, the economy of Northeast Mississippi – long powered by manufacturing, especially furniture manufacturing – began to see disruptions.

Manufacturing made up about a third of the employment in the region, but increased global trade and competition began to squeeze the region’s manufacturers.

The furniture industry, which directly employed more than 30,000 people at the turn of the new millennium, was getting battered. By 2011, the number had fallen below 20,000.

Regional economic leaders knew then they had to diversify the economy from traditional lowskilled manufacturing to more advanced manufacturing. And they also looked at other industries to recruit to the area.

Central Mississippi has been successful in recruiting Nissan; why couldn’t Northeast Mississippi land an automaker as well, they asked themselves.

Critical to their effort was the State Legislature in 2000 passing Advantage Mississippi, which created a vehicle to establish regional alliances. The next year, leaders on Pontotoc, Union and Lee counties formed the PUL Alliance and applied to the Mississippi Development Authority to get approval. In 2003, Blue Spring was identified as the site where PUL wanted to attract an automaker. The MDA, in September of that year, gave its stamp of approval for the formation of the PUL Alliance, the first regional alliance recognized by the state.

Four years later, Toyota planted its flag in the hills of Northeast Mississippi. It took another four years – with a global recession slowing things down – for Toyota Mississippi to open in Blue Springs.

The automotive era had arrived in Northeast Mississippi.

But economic leaders say they never gave up – and will never give up – on the furniture industry,

|

|

Community Development Foundation, which help market the Wellspring site the Toyota Mississippi now occupies. “It’s been farranging, and not just employment and jobs, which has been phe$80 MILLION – Workforce training at nomenal. We can trace back back community colleges and on site more than 5,000 jobs, including $57.6 MILLION – Road and highway prime construction, suppliers, disupgrades tribution packaging and all that $50 MILLION – Site preparation $44.5 MILLION – Utilities (water supply goes with it. Toyota is part of the infrastructure, natural gas infrastruc- dynamic of north Mississippi. And ture and wastewater discharge infra- now we’re getting to see every auto supplier that comes through the structure) state now, whereas before, we $30.6 MILLION – Rail infrastructure, weren’t seeing anybody before. We contingency, fire service, airport imdon’t win every one, this is why it’s provements, marketing, temporary called a competition for jobs. But office/living we’re in the game a lot $30 MILLION – Workforce training for “Fortunately, as we’re between suppliers $1.2 MILLION – Fees and costs associ- Toyota in Huntsville, Nissan in Canton and Nashville and Merated with issuing bonds cedes in Vance, Alabama, we get a TOTAL: $323.9 million lot of other companies because of the automotive sector being a TAX BREAKS strength of our region. It was furni• 20-year exemption on state income ture or nothing before ... and furnitax ture is reviving, which is fantastic.”

• Franchise tax, but pays $25,000 per Recruiting new industry is a priyear for 30 years in lieu ority for economic development, • Sales and use tax • Rebate of up to 3.5 percent on some as much as retaining industry already in place. building materials Rumbarger said Toyota’s arrival • Rebate of up to 3.5 percent on emhas had a ripple effect. ployees’ income tax “I think they changed the trajectory of manufacturing in Northeast Mississippi. It was not going to be which still employs more than changed internally. A new player 20,000 people directly and about arrived, new competition came in the same number indirectly. for jobs, and everybody because of “The backbone has been furniture the economy had to reexamine their processes. and remains so,” “Our existing manufacturers, said Randy Kelley, executive director some of them got some Toyota work, but they had to step it up. of Three Rivers Anybody who wanted to be a supPlanning and Development in Pon- plier had to be certified and demonstrate their lean procetotoc, which Kelley dures, their efficiencies. We love administers the PUL Alliance. “We now have a little the jobs, we love the competition.

But in the longer term, Toyota’s armore flexibility in our economy rival will pay off; they changed the and in our workforce.” dynamic for the next 20-25 years.”

Toyota Mississippi employs 2,000 workers, and about a dozen suppliers – at least five of which NO SURPRISES are in Northeast Mississippi – emFrom day one, Toyota has met ploy another 2,000. every obligation, financial or oth“I don’t think any of us expected erwise, it agreed to in an 86-page the impact that Toyota has had,” memorandum of understanding said David Rumbarger, president signed 10 years ago. and CEO off the Tupelo-based Even when there was delay in

TOYOTA INCENTIVES

opening the plant, Toyota didn’t waiver from its commitments, no surprise to former Gov. Haley Barbour, who played a key role in recruitBarbour ing the automaker “They’ve met every obligation to the state and met and exceeded every obligation to the local governments,” Barbour said. “I don’t think you could ask for anything more. They pay significant tax payments to the counties, with some of that going to the schools. They’ve paid more than required for their in lieu payments for the bond-related costs.

Kelley confirmed Toyota as exceeded its bond payment requirements.

“The priority is paying off bonds,” he said. “The initial goal was for PUL and counties not to be out a dime, and Toyota came in and has exceeded bond requirements. Last year, they paid annual taxes of $4 million, $900,000 going to the schools. They had minimum payment of $3.4 million, but they’ve exceeded that every year.”

Gray Swoope, who was the chief operating officer for MDA from 2004 to 2007 and its executive director from 2007 to 2011, isn’t surprised at Toyota’s successful partnership with Northeast Mississippi, Swoope either.

“Its an age-old strategy that people have to incorporate the building of relationships in economic development, and that is what happened.

“I look back at the courtship of Toyota, which started early with the PUL Alliance putting together a site and reaching out to Toyota, and then Gov. Barbour coming to office, reaching out to Toyota’s New York office and then going to Japan in 2005 and being a sponsor of the World Expo. Toyota was a sponsor, and at the U.S. pavilion we had a ‘Mississippi Day,: Toyota recognized we were supporting

them. Those things built that relationship to a point so that when they had the project, we could have those candid conversations about their expectations for the site, as well as their hesitation with the site, which was the smallest labor shed of any OEM they had. So if we didn’t have that relationship on the front end, we couldn’t have had those conversations. You wouldn’t have that trust, that relationship... we had the ability to talk to anybody in the company and we were able to talk candidly. That had a huge impact on the project.”

If there has been one disappointment, it has been that more suppliers haven’t planted themselves in the region.

One reason is the current capacity of the plant, which is under 200,000 vehicles a year. That’s not enough to justify the construction of new suppliers facilities just yet.

“We didn’t get as many suppliers as we had hoped, but we have to recognize the supplier industry has changed a lot,” Barbour said.

They’re hauling them farther, and they’re also working with other automakers. But the partnership has been good for Northeast Mississippi, and it’s been great for Toyota, too, I think.”

It should be noted the current Toyota Mississippi plant is “phase one” on the site, which also happens to have a second-phase element ready to go at any time.

Said Rumbarger, “We will earn that phase two. We sell that workforce every day ... so, yes we do have the workforce available. We have a growing economy and have a great position between two universities. We have quality of life we take for granted. We do need more quality people, people who want to work. We found those people for phase one, and we can find them for phase two.”

And Barbour is just as eager as anyone to see that become a reality.

“I was one of the board members of Toyota recently, and I told him Mississippi wants more Toyota; we love Toyota and we want more of it,” he said with a chuckle.

N H f

6E

|

10 YEARS IN NORTHEAST MISSISSIPPI

SUNDAY, FEBRUARY 26, 2017

DAILY JOURNAL

Baldwyn’s economy finds footing again

BY DENNIS SEID

and technical education center at Baldwyn will have a great impact as well.

BALDWYN – Without Jason McKay, superinfail, Mayor Michael James tendent of Baldwyn gets a Christmas card from Schools, said the planned Japan every year. vo-tech center will proThe sender is Akitsugo vide opportunities for stuIshiguro, who was the first dents to succeed in president of Auto Parts college and the workforce.

Mississippi, the tier one “We are very excited supplier for Toyota Missisabout the community’s sippi in Blue Springs. support and their confi“He was the first presidence in our school disdent out there and got trict to continue to promoted and moved improve the quality of edback to Japan a few years ucation we provide for ago,” James said. “I guess our students and the fuwe made a good impresture of our community,” sion on him.”

McKay said.

The company has cerThe new building will tainly made a good iminclude four classrooms pression on this city of that will house vocational about 3,400 people. While it isn’t the biggest emTHOMAS WELLS | BUY AT PHOTOS.DJOURNAL.COM classes including furniture manufacturing and ployer, its reach can be felt Baldywn Mayor Michael James says the city was “blessed” to land a Toyota supmanufacturing technician in the community. plier, which helped diversify the economy. classes.

With roughly 570 workother officers, were found down in the late 90s and At 11,900 square feet, ers, the plant employs guilty of fraud. the vo-tech center will about about twice as early 2000s, but there’s Combined with the eco- been a complete renaisalso contain two workmany people as it had nomic downturn, the clo- sance since then,” he said. shops with extended ceilplanned. sure of several shops and a “We had a lot of individu- ings, one conference Not that James minds. restaurant tied to Davis hit als like like Clark Richey room, four offices, two “When somebody like the city hard. Baldwyn’s bathrooms, a lobby, a that comes to the commuand Earl Stone, a lot of sales tax revenue fell by nity, it’s a plus for everywork from the chamber of dock lift and expandable nearly $80,000 from 2007 entrances. body,” he said. “They’ve commerce ... and we’ve Michael James to 2011.

The district will be the been great to the people of gotten grants to redo our But businessman Earl our community. The tax facades,” Collins said. “As second in Mississippi to Baldwyn mayor Stone bought the seven offer furniture manufacmoney we get to our far as the economy, I’ve buildings that once beschool has helped us a lot, seen employees from Toy- turing. The manufacturing technician class will ers like APMM also had to longed to Davis in late but not only that, they’ve ota and the furniture 2011. Clark Richey, anbe exclusive to the Baldgo idle. also helped in other ways companies eating in our other businessman with wyn School District. The It wasn’t the only blow throughout the commurestaurants, which helps district partnered with the community would suf- deep roots in the commu- out a lot.” nity.” nity, bought 10 buildings fer, however.

The 500,000-squareAdded James, “It took a APMM, Southern Motion, over the years, and both The Stanford Financial foot, $200 million APMM lot of people to get down- and H.M. Richards indusplant occupies a corner of Group scandal, which was have helped renovate and town going again. Used to tries to develop the revitalize the city. classes, and the compathe Harry A. Martin North an elaborate $8.5 billion be, It was easy to find a nies have made several Lee Industrial Complex. It Ponzi scheme, wrapped place to park. Now, there equipment donations as up one of the city’s own supplies metal frame are times when you can’t A ‘RENAISSANCE’ native sons. The comparts, instruments panels find anywhere to park. It’s well.

Joe Collins, who has Furniture manufacturand bumpers to the Toyota pany’s chief financial offi- owned and operated a good problem to have, ing has long played a cer was James M. Davis, Mississippi plant in Blue and we’re thankful for Houston Discount Drugs large role In Baldwyn’s who also owned several Springs. that.” in Baldwyn since 1987, economy and continues buildings in downtown.

When Toyota anCollins said the recent has seen first-hand what to do so.

Federal authorities nounced a delay the openpassage of a $2 million he describes as the “renH.M. Richards, which raided Stanford’s office, ing of Toyota Mississippi bond issue to fund the aissance” of downtown. opened in 1997 at the inin December 2008, suppli- and Davis, along with construction of a career “It really started going DAILY JOURNAL

‘When somebody like that comes to the community, it’s a plus for everybody.’

dustrial park, now employs about 1,100 workers. Two years ago, it announced an $8 million expansion – the company’s ninth – that could add 500 jobs over five years. Pontotoc-based Southern Motion, which opened its first Baldwyn location in 2012, has grown from 60 workers to more than 300. It recently moved into the former Hancock Fabrics headquarters and warehouse, investing $20 million and promising up to 600 jobs.

Sleep products manufacturer Innocor added 108,000 square feet of space in 2013 and employs about 350.

Baldwyn is slowly but surely getting back on its feet, James said.

“Furniture was about all we had for many years,” James said. “And when the industry declined, it hurt us. Having somebody like APMM brought some diversity; we were blessed to get a Toyota supplier.”

AIA Countertops said last year it would add 60 jobs at its new Baldwyn location. Custom Engineered Wheels, whose Tupelo facility was destroyed in a fire last spring, is moving to Baldwyn and adding another 20 jobs on top of the 65 it retained from its Tupelo operations.

While the population has stayed about the same, James thinks the uptick in business and activity in the city will lead some people to consider living in the community.

“We’re a great retirement community, but we think we can also attract younger workers and the families with all that’s been happening,” he said.

DAILY JOURNAL

10 YEARS IN NORTHEAST MISSISSIPPI

SUNDAY, FEBRUARY 26, 2017

|

7E

At furniture epicenter, Toyota looms large

BY DENNIS SEID DAILY JOURNAL

NEW ALBANY – Less than 15 minutes away from the Toyota Mississippi automotive assembly plant in Blue Springs is a key supplier, Diversity Vuteq.

Inside, about 150 workers make injected molded parts and glass assembly for Toyota Mississippi.

Another 500 DV employees work inside the Toyota plant in Blue Springs providing internal logistics.

“Toyota has supplied a lot of jobs here,” said New Albany mayor Tim Kent.

“What it did to New Albany was it made people more aware of the area. I think other businesses started looking because they had heard Toyota was here. Everybody knows Toyota does their homework, and when other companies see that they’re here, they think, ‘I might need to go there.’”

Economically, this city of about 8,500 people is doing just fine. With unemployment at a little more than 4 percent, Union County has the lowest jobless rate in the region, and has one of the lowest rates in the state.

Downtown New Albany is vibrant, with vacant space a rarity. New shops and restaurants have opened across the city.

Toyota’s arrival a decade ago in nearby Blue Springs, plus the addition of a coveted Tier One supplier in Diversity Vuteq, has only helped the community grow, albeit at a manageable pace.

“That’s been key,” said Phil Nanney, executive director of the Union County Development As-

Downtown New Albany is abuzz with activity, and finding a vacant space is a rare find as new shops and restaurants have opened, complementing long-time merchants already anchored there. niques he modeled after Detroit automakers.

He opened the Stratford Furniture Co. in New Albany in September ADAM ROBISON | BUY AT PHOTOS.DJOURNAL.COM 1948. By 1969, the comNew Albany Mayor Tim Kent said the city has enjoyed slow and steady growth since pany had expanded nine times and had become Toyota arrived in the region. the largest upholstered furniture plant in the are starting to build more world at 625,000 square “Toyota has been a sociation. “We’ve had great community partner places, which includes steady growth that we’ve feet. It would eventually been able to manage well. and they’ve provided a lot more residential. It’s been double in size, and at is slow and steady growth You want to grow, but you of jobs,” Nanney said. peak employed about for us.”

“They’ve changed the don’t want to grow too 2,000 people. economy to some degree, fast.”

And nearly 60 years Kent was among scores and they’ve done a lot of after Futorian introduced FURNITURE CAPITAL of Northeast Mississippi- good things for the comToyota’s presence in the automotive industry munity like philanthropic region comes with a bit of techniques, the industry ans who visited Georgesupport... we’ve seen a lot irony. town, Kentucky 10 years itself came to the heart of of good things from ago to see what Toyota’s Nearly 70 years ago, the Northeast Mississippi’s them, things I really impact would be on a furniture industry with furniture industry in community. Georgetown never expected to see, re- Northeast Mississippi got Toyota. ally.” was the site of Toyota’s Mike Staten, a senior its start in New Albany.

Kent, who went on that first North American vice president with New Ukrainian immigrant trip to Georgetown, said plant, which opened in Albany based BNA Bank, Morris Futorian began that city’s growth the first producing furniture in 1986. said” I am thankful for all few years with Toyota Area leaders were told of our industries in Union New Albany in 1948, then that growth and de- brought “a little bit of County and how they moving his furniture opgrowth, about 3 to 5 pervelopment in Georgesupport our community. erations from Chicago. town took some 20 years, cent. That’s what we’ve It is wonderful that there Futorian is credited for and they should expect a seen here in New Albany. kick-starting the upholare so many job opportumarathon, not a foot race It’s a good problem to stered furniture manufac- nities for our citizens.” have in some ways bein economic developAs for Toyota, Staten turing industry in ment. Nanney and others cause according to all the Northeast Mississippi, said, “We’ve seen the posrealtors, there’s not a lot in Union County are fine itive impact they’ve had where he introduced of property left. Investors mass production techwith that. on other industries and

the pay scale, and it’s improved our quality of life.

They’ve certainly been philanthropic with the communities in our area and we certainly appreciate what they do and what they represent.”

The heart of furniture manufacturing still beats strong in New Albany and the region, and Toyota has complemented a workforce that, as Gov. Phil Bryant likes to say, “knows how to build things.”

Toyota came at the right time, helping to boost an economy that needed it. That it also pledged $50 million to schools in Pontotoc, Union and Lee counties and has given millions to area nonprofits has been an added – and much-appreciated – bonus.

“Their impact is more than building cars,” Nanney said. “They’ve had a distinct and direct impact on our communities.

Their attitude is not one of to take, but it’s to give.

We’re fortunate to have them here.”

8E

|

SUNDAY, FEBRUARY 26, 2017

10 YEARS IN NORTHEAST MISSISSIPPI

DAILY JOURNAL

Toyota supplier makes big impact on small community

BY DENNIS SEID

only occupant of the park, which has available lots ranging from 10 to 120 DORSEY – Tim Gilletine acres. But its proximity to I-22 and Port Itawamba is a supplier to a supplier. are key selling points.

But it’s not automotive As for the 400,000parts he’s providing. square-foot Toyota Rather, it’s something key to the successful operation Boshoku Mississippi plant, the company was the first of any venture – food. to announce 10 years ago Gillentine owns Dorsey that it would supply the Food Mart, just a short hop to the Toyota Boshoku Blue Springs plant. It now employs about 125 workMississippi plant.

Three times a day every ers. SAI employs another 95. day, Gillentine takes food Gillentine, who has to the facility, which supowned the store for 35 plies the Toyota Missisyears, said his store was sippi plant with interior doing well even before door panels and other inTBMS arrived. terior parts. Boshoku also But, he added, “They’ve provides component parts been good to us; it’s certo another supplier, Systems Automotive Interiors, tainly helped my busiwhich has space inside the ness.”

He’s had to add employTBMS plant. Gillentine ees to help handle the feeds about 150-200 peoextra catering work, for exple at a time, he said.

“I think tenderloin goes ample.

“I’ve got about 30 now, over really well,” he said. and I had to add on when “Some like it more than others, but it’s pretty pop- we started carrying food to them,” he said last Monular.” day morning. “I’ve got four Toyota Mississippi’s up there now serving. It’s plant in Blue Springs is been good to have them about 25 miles from here.”

Dorsey, an unincorpoAnother business rated community near nearby – Comer’s RestauFulton, which is about 6 rant – also has seen a little miles away.

Vaunita Martin, execu- extra business over the years. tive director of the “Some of the plant Itawamba County Develworkers will come for opment Council, said lunch, but they only have Toyota’s impact on the about 30 minutes, so a lot county has been signifiof them pick up,” said cant.

What stands out in par- Wanda Farris, who helps ticular is raising the bar to manage the restaurant.

“Some of the office workattract business and iners have more time. But dustry to Itawamba you have to realize Dorsey County, Martin said.

Food Mart is just down the “It’s because of Toyota road and they cater to that we were able to dethem, and they’re pretty velop the Fawn Grove Ingood cooks down there, dustrial Park in Dorsey,” too. But we still get a few she said. “We wouldn’t have had it without them.” people come here from Boshoku is currently the the plant.”

DAILY JOURNAL

ADAM ROBISON | BUY AT PHOTOS.DJOURNAL.COM

Above, the Toyota Boshoku plant in Dorsey. Left, Tim Gillentine, owner of Dorsey Food Mart, sorts through the packages of meat as he keeps products stocked at his store that is located just west of the Toyota Boshoku plant where he has seen an increase in business since the plant opened in 2011.

City of New Albany Officials pictured are: (Front Row) Frankie Roberts, Mayor Tim Kent, Johnny Anderson (Back Row) Scott Dunnam, Will Tucker, Jeff Olson, Kevin Dale White and Police Chief Chris Robertson.

For detailed information call 662-534-1010

10 YEARS IN NORTHEAST MISSISSIPPI

DAILY JOURNAL

Wellspring Education Fund Toyota’s $50 million gift

BY EMMA CRAWFORD KENT

readiness leapt into focus.

Mike Clayborne, president of the CREATE Foundation, said that focus TUPELO – Since the announcement began with plans to build the Wellof the Toyota Wellspring Education spring Center for Professional Futures, Fund in 2007, the endowment has a shared facility that would have been funded countless grants to serve the used to offer professional courses not public schools of Pontotoc, Union and available at individual schools in the Lee counties.

PUL Alliance.

Now, 10 years after the announceThe center would have been funded ment that Toyota would build its Blue by both the Wellspring fund and other Springs plant, and seven years after the sources.

Wellspring Fund provided its first However, the project didn’t gain grant, educators say the endowment enough outside funding to make the has been an important resource for center a reality. bringing innovation into their class“Our primary focus has been on carooms.

Funding from the $50 million enreer awareness and readiness, and of dowment is allocated by the CREATE course, we spent a good amount of Foundation with the help of an advitime and resources looking into buildsory committee reflective of the ining a standalone school for that purtended recipients and counties. pose,” Clayborne said. “We weren’t CREATE receives a $5 million check able to put that together, and so we each year from Toyota Mississippi for just made the transition into, ‘OK, the Wellspring fund, with $35 million where can we make an impact in careceived so far. reer readiness and awareness?’”

At the time the endowment was anCREATE recently announced the renounced, CREATE Foundation presicipients of $200,000 in grants to bring dent Mike Clayborne said Toyota’s priorities for spending the money were career education into elementary and middle school classrooms in Pontotoc, math and science education, early Union and Lee counties. childhood development and schoolThe grants will fund everything from to-career resources.

One of the largest projects funded by class robotics sets to virtual field trips the endowment is the Imagine the Pos- – anything that gets young students sibilities career expo. thinking about their futures.

CREATE, in partnership with area The list of Wellspring-funded projbusinesses and schools, began develects is a long one, but over the last oping the event more than a year-and- seven years the endowment has helped a-half before the first expo took place fund the implementation of technolin October 2015. ogy infrastructure in eight school disThe expo brings hundreds of profestricts, robotics teams and STEM-based sionals from across Northeast Mississummer camps, to name a few. sippi to the BancorpSouth Arena to Wellspring also helps cover the cost expose eighth-grade students to career of dual enrollment courses, the Work opportunities or “pathways” through Keys assessment and fees for earning hands-on activities. other technical certifications.

The event reached more than 3,000 Additionally, the fund provides supstudents in its first year (2015) and port directly to school districts in the more than 8,000 in 2016.

With the help of other sponsorships, form of grants and awards including CREATE was able to expand the event funding for professional development beyond the PUL Alliance. for teachers and recognizing teachers Toyota’s involvement in the expo has of the year. been two-fold.

“As Toyota intended, it’s an enhanceNot only is the event funded in large ment to kindergarten-through-12thpart by the Wellspring fund, but Toyota grade education, and we really feel Mississippi contributes state-of-thegood about the focus that we’ve develart equipment and a good deal of man oped in terms of the focus on career power to the expo to expose students readiness and awareness,” Clayborne to manufacturing careers. said.

While the Wellspring fund has In May, CREATE will receive its funded a variety of educational activities, most of the money has been dedi- eighth $5 million payment toward the endowment. cated to preparing kindergarten-through-twelfth-grade Emma.crawford@journalinc.com students for their future careers.

With the Wellspring fund, career Twitter: @emcrawfordkent DAILY JOURNAL

Toyota Mississippi puts state on global stage

T

en years ago, a global automotive leader made an announcement which would effectively change the economic landscape of Northeast Mississippi and the entire state – Toyota was planning to build an automotive assembly plant in Blue Springs. A decade later, Toyota Mississippi has found a quality workforce and a place where the company can achieve and exceed its goals.

In 2011, Toyota Mississippi began production of the Corolla, strengthening the state’s impressive automotive portfolio. Today, more than 850,000 vehicles have rolled off the assembly line in Blue Springs, a testament to the commitment of Toyota in Mississippi and the state’s superior workforce. The plant reached the 500,000 production milestone quicker than any other Toyota plant in the U.S. The plant continues to put Mississippi on the global stage, with the facility now exporting to 18 countries around the world.

This economic development success was made possible by the foresight of regional leaders in Pontotoc, Union and Lee counties. Years ago, they united to form the PUL Alliance with the strong understanding Mississippi could compete in the fiercely growing automotive sector. Leaders developed the three-county alliance and aggressively fought for the project. Conceived by David Rumbarger at the Community Development Foundation and Randy Kelley at Three Rivers Planning and Development District, the PUL Alliance created regional capacity that enabled Toyota to exceed its goals.

The PUL Alliance is a shining example of a regional partnership resulting in a higher quality of life for thousands of Mississippians. Toyota Mississippi and the numerous suppliers which

flocked to the state in support of the plant created hundreds of additional jobs.

The company is also a committed corporate citizen, consistently giving back to the people of Northeast Mississippi and the whole GLENN The Toyota WellMcCULLOUGH state. spring Education Endowment Fund, overseen by the CREATE Foundation, contributed millions to strengthen communities throughout the region and help prepare the students of today for the careers of tomorrow. Toyota is investing in the education of K-12 students, workforce training at the region’s community colleges and contributed significantly to the creation of the Center for Manufacturing Excellence at the University of Mississippi. Today, the CME provides a world-class education to students from around the country preparing to enter the manufacturing industry.

The state of Mississippi takes pride in a decade of positive history and strong partnerships with Toyota Mississippi. Vice President of Manufacturing Sean Suggs is committed to Toyota Mississippi and its employees, as well as new plantPresident Akitoshi Ichino, who recently took over the reins for Masafumi Hamaguchi.

The proven teamwork of Toyota Mississippi in concert with regional cooperative leadership has paved a path to a higher quality of life for North Mississippians as we move together forward.

GLENN MCCULLOUGH is executive director of the Mississippi Development Authority.

SUNDAY, FEBRUARY 26, 2017

|

9E

10E

|

10 YEARS IN NORTHEAST MISSISSIPPI

SUNDAY, FEBRUARY 26, 2017

DAILY JOURNAL

GETTING TO KNOW...

Akitoshi Ichino, Toyota Mississippi’s new president

BY DENNIS SEID DAILY JOURNAL

BLUE SPRINGS – The new year brought a new president to lead Toyota Mississippi.

Akitoshi Ichino began his new duties on Jan. 1 at the plant, his first assignment in the United States.

He fills the role left by Masafumi Hamaguchi, who had been president of Toyota Mississippi since 2010. He returned to Toyota Motor Corp. in Japan in December.

Traditionally, Toyota officials rotate shifts every few years between Japan and assignments across the world.

Ichiono is a veteran Toyota executive, and has spent the past few years at Toyota’s Takaoka plant in Toyota City, Japan.

Ichino is the third president of Toyota Mississippi.

Masao Fukuda was named president shortly after Toyota’s announcement in February 2007 that it would build the nearly 2-million-squarefoot facility in Blue Springs.

Ichino is no stranger to the Corolla sedan, which is built at Blue Springs.

He joined Toyota Motor Corp. at its Tsutsumi plant in 1988 in the body weld department, and he has more than 15 years of experience in manufacturing. His executive career began in 2003 after his promotion to general manager of Toyota Peugeot Citroen Automobile in the Czech Republic.

The Daily Journal inter-

Akitoshi Ichino became the third president of Toyota Mississippi in January. viewed Ichino recently in Blue Springs: Q: WHAT ARE YOUR FIRST IMPRESSIONS AND THOUGHTS OF MISSISSIPPI? HAVE YOU BEEN TO THE STATE BEFORE? A. My first visit to Mississippi was in 2011 to confirm start of production conditions at the Mississippi plant. I liked Mississippi at that time, and I am happy to return as Toyota Mississippi president. The kindness of people in Mississippi is apparent. People have been very friendly to me.

I like the beautiful nature of the Mississippi landscape.

Q. WHAT ARE YOUR INITIAL IMPRESSIONS OF TOYOTA MISSISSIPPI? A. I am impressed by the team members. They are very dedicated to building the highest quality and safest Corolla. I look forward to helping develop our team members further.

I have been here for one month, and I have already seen Toyota demonstrate its commit-

ment to the community and the state. I attended my first public event when we announced a $750,000 donation to the Civil Rights Museum. I was happy to meet the governor and many other elected officials. I have felt very welcomed by everyone I have met.

Q. COROLLA CELEBRATED ITS 50TH YEAR, AND YOU ARE FAMILIAR WITH THE VEHICLE. IN YOUR OPINION, WHAT MAKES THE CAR SO SPECIAL AND POPULAR? A. I joined Toyota 29 years ago. At that time, I

gle goal for Toyota Mississippi. My vision is we will continuously improve and implement kaizens to always ensure great quality vehicles for our customers.

EDITOR’S NOTE: Kaizen is Japanese for “improvement.” In business, kaizen refers to activities that continuously improve all functions and involve all employees from the CEO to the assembly line workers. By improving standardized programs and processes, kaizen aims to eliminate waste. Kaizen was first practiced in Japanese businesses after World War II, influenced in part by American business and quality-management teachers, and most notably as part of The Toyota Way. Q. WHEN YOU ARE NOT AT WORK, WHAT ARE SOME ACTIVITIES AND HOBBIES YOU ENJOY? A. I like to play golf and watch movies. I usually THOMAS WELLS | BUY AT PHOTOS.DJOURNAL.COM watch Japanese films, but “Star Wars” is my favorite American movie so far. I also enjoy cooking. When I was in college, I worked purchased my first car. It four years as a chef. You was a two-door Corolla may find this surprising, coupe. Also, I have but my specialty is worked on Corolla projects all over the world. As spaghetti.

Q. IS THERE ANYTHING YOU a production engineer, I WOULD LIKE THE PEOPLE OF have spent many years seeing the Corolla contin- NORTHEAST MISSISSIPPI TO uously improve. Seeing KNOW ABOUT YOU AND TOYCorolla celebrate 50 years OTA? has many meanings to A. Toyota grows with the me because of my history community. This is my with the vehicle’s develfirst experience to live in opment. the United States, specifiQ. WHAT ARE SOME OF cally Mississippi. While I YOUR GOALS AND EXPECTAam here, I hope to travel and experience the differTIONS FOR TOYOTA MISSISent cultures of this reSIPPI? gion.

A. I don’t have one sin-